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more fiscally stable and responsible long-term model. He also requested that the process be made interactive for the public and transparent. He said CaIPERS numbers look good, but they are woefully behind in terms of the returns it needs to achieve. Kay Ayala thanked the Council for accepting public input prior to conducting negotiations. Pension costs for many municipalities continue to increase and they threaten the delivery of basic public services. She asked the City to settle on a contract that does not add to the unfunded liability if possible, and thinks the State needs to redesign a system that will contribute to the safeguarding of public pensions. The repeal of SB 400 and AB 616 is necessary and she hoped the Council will contact legislators. She asked that the City go back to the 2% at 55 for safety employees, asked the City not to spend money it does not have, and consider the following: employees pay their full 9%, initiate a 2-tier program for new hires, cap medical, freeze raises, raise co-pays in medical thus lowering the City's cost, endorse the pension reform action plan, implement the annual 5-year benchmark, and set a short contract term due to the economy situation. If the Council cannot stop this cycle, she asked that it be taken to the taxpayers in the next election in the form of an Initiative. Rocky Lucia, Pleasanton POA, said he thinks context is important for negotiations, and while he completely understands the discussion, the City has a duty to keep the City on solid financial ground. There is a qualitative analysis he will bring to the table because police officers provide the City with one of the safest communities in the area. He works for Oakland and Vallejo POA and the City of Pleasanton Police have done a great job of providing quality services. They will try to find the balance of the City's interests and the POA's interests. He wants the City to be able to retain and recruit the best candidates possible and when the Council hears from its negotiators and in considering Mr. Bartel's analysis, to think about the qualitative aspects of what these police officers do for the City and its citizens because actuarial services do not deal with people. Karen De Baca Martens said she has not heard anyone talk about the "why". She said the public is not here because the City is bankrupt or unsafe, and she asked why there are retirement boosts to safety and patrol at 50 and 55. She said the City has been careful and has been fiscally sound. There is a plan to address the deficit but she does not agree with 79% of the budget being personnel. The problem is that the City's business is people and the City is managing a good bottom line. She appreciates the City looking at the unfunded liability and has provided actuarial services, but hopes the Council is not posturing for a drawn out lengthy contract problem where it says the public is on their side. Mayor Hosterman closed the public hearing. Mayor Hosterman made a motion to adopt the League of California Cities pension reform paper which is a good framework and provides the opportunity to join in with other cities. She also suggested adding the three benchmarks that staff has included in the staff report to eliminate negative amortization, reducing the City's overall pension by at least 10%, and reduce personnel costs as a percentage of the total operating budget to 70%. She questioned whether it had to be agendized for September 6t". Mr. Fialho said the Council can adopt it tonight, move it to the 6'h or do nothing. Vice Mayor Cook-Kallio said she understands the League of California Cities represents many cities and understands its intent. She understands it is policy and it sets goals and benchmarks, but she wants to be assured that the Council has flexibility when going into negotiations that it includes the numbers, existing validation of the job of the police department, and that there is balance. Mr. Fialho said what is missing in this discussion and has been for a period of time is some kind of framework that says this is our strategic vision. What he likes about the League's pension paper is that it does represent the common interests of the State and it does inherent, in the way it is written, provide some flexibility. There are some things the Council may disagree with which needs to be vetted through the State legislative process, and the City can still take a position on whether or not it supports a Constitutional Amendment, for example. The Council is essentially satisfying its objective for having a direction, knowing that this direction may change based on new information, whether it is economic, fiscal, or policy related at the State level. Councilmember Thorne said once the negotiation process starts, he does not feel comfortable making public comments on these issues. Anytime they get into a discussion about labor agreements or negotiations, it turns out into a discussion about pension reform and he thinks everyone understands that City Council Minutes Page 11 of 18 August 16, 2011