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CCMIN081611
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CCMIN081611
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CITY CLERK
CITY CLERK - TYPE
MINUTES
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8/16/2011
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CCMIN081611
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more fiscally stable and responsible long-term model. He also requested that the process be made <br /> interactive for the public and transparent. He said CaIPERS numbers look good, but they are woefully <br /> behind in terms of the returns it needs to achieve. <br /> Kay Ayala thanked the Council for accepting public input prior to conducting negotiations. Pension costs <br /> for many municipalities continue to increase and they threaten the delivery of basic public services. She <br /> asked the City to settle on a contract that does not add to the unfunded liability if possible, and thinks the <br /> State needs to redesign a system that will contribute to the safeguarding of public pensions. The repeal of <br /> SB 400 and AB 616 is necessary and she hoped the Council will contact legislators. She asked that the <br /> City go back to the 2% at 55 for safety employees, asked the City not to spend money it does not have, <br /> and consider the following: employees pay their full 9%, initiate a 2-tier program for new hires, cap <br /> medical, freeze raises, raise co-pays in medical thus lowering the City's cost, endorse the pension reform <br /> action plan, implement the annual 5-year benchmark, and set a short contract term due to the economy <br /> situation. If the Council cannot stop this cycle, she asked that it be taken to the taxpayers in the next <br /> election in the form of an Initiative. <br /> Rocky Lucia, Pleasanton POA, said he thinks context is important for negotiations, and while he <br /> completely understands the discussion, the City has a duty to keep the City on solid financial ground. <br /> There is a qualitative analysis he will bring to the table because police officers provide the City with one of <br /> the safest communities in the area. He works for Oakland and Vallejo POA and the City of Pleasanton <br /> Police have done a great job of providing quality services. They will try to find the balance of the City's <br /> interests and the POA's interests. He wants the City to be able to retain and recruit the best candidates <br /> possible and when the Council hears from its negotiators and in considering Mr. Bartel's analysis, to think <br /> about the qualitative aspects of what these police officers do for the City and its citizens because actuarial <br /> services do not deal with people. <br /> Karen De Baca Martens said she has not heard anyone talk about the "why". She said the public is not <br /> here because the City is bankrupt or unsafe, and she asked why there are retirement boosts to safety and <br /> patrol at 50 and 55. She said the City has been careful and has been fiscally sound. There is a plan to <br /> address the deficit but she does not agree with 79% of the budget being personnel. The problem is that <br /> the City's business is people and the City is managing a good bottom line. She appreciates the City <br /> looking at the unfunded liability and has provided actuarial services, but hopes the Council is not <br /> posturing for a drawn out lengthy contract problem where it says the public is on their side. <br /> Mayor Hosterman closed the public hearing. <br /> Mayor Hosterman made a motion to adopt the League of California Cities pension reform paper which is <br /> a good framework and provides the opportunity to join in with other cities. She also suggested adding the <br /> three benchmarks that staff has included in the staff report to eliminate negative amortization, reducing <br /> the City's overall pension by at least 10%, and reduce personnel costs as a percentage of the total <br /> operating budget to 70%. She questioned whether it had to be agendized for September 6'". Mr. Fialho <br /> said the Council can adopt it tonight, move it to the 61h or do nothing. <br /> Vice Mayor Cook-Kallio said she understands the League of California Cities represents many cities and <br /> understands its intent. She understands it is policy and it sets goals and benchmarks, but she wants to be <br /> assured that the Council has flexibility when going into negotiations that it includes the numbers, existing <br /> validation of the job of the police department, and that there is balance. <br /> Mr. Fialho said what is missing in this discussion and has been for a period of time is some kind of <br /> framework that says this is our strategic vision. What he likes about the League's pension paper is that it <br /> does represent the common interests of the State and it does inherent, in the way it is written, provide <br /> some flexibility. There are some things the Council may disagree with which needs to be vetted through <br /> the State legislative process, and the City can still take a position on whether or not it supports a <br /> Constitutional Amendment, for example. The Council is essentially satisfying its objective for having a <br /> direction, knowing that this direction may change based on new information, whether it is economic, <br /> fiscal, or policy related at the State level. <br /> Councilmember Thome said once the negotiation process starts, he does not feel comfortable making <br /> public comments on these issues. Anytime they get into a discussion about labor agreements or <br /> negotiations, it turns out into a discussion about pension reform and he thinks everyone understands that <br /> City Council Minutes Page 11 of 18 August 16,2011 <br />
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