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Fire 8. Waived full reading and adopted Resolution No. 12-504 approving the City of Pleasanton 2010 Local Hazard Mitigation Plan Annex MOTION: It was m/s by Thorne/McGovern to approve Consent Calendar as recommended. Motion carried by the following vote: Ayes: Councilmembers Cook-Kallio, McGovern, Sullivan, Thorne, Mayor Hosterman Noes: None Absent: None MEETING OPEN TO THE PUBLIC 9. Public Comment Fred Norman reported that 37 American military men and women have died in Afghanistan this year alone and remarked on the general apathy of the Pleasanton public in taking a stand against the wars. PUBLIC HEARINGS AND OTHER MATTERS 10. Accept the Comprehensive Annual Financial Report (CAFR) and other related audits for the year ending June 30, 2011 and approve year-end audit adjustments Director of Finance Emily Wagner stated that for the 2010/11 FY, as in all other years, the City has received an unqualified, or clean, opinion on the financial statements from its auditors, Vavrinek, Trine, Day & Company. In addition, all requirements have been met to achieve the highest standard in government accounting and financial reporting for the 14th consecutive year; the Certificate of Achievement for Excellence in Financial Reporting issued by the Government Finance Officers Association of the United States and Canada. Ms. Wagner reviewed the three primary sections of the CAFR. The Independent Auditor's Report, the only portion not prepared by City staff, resulted in an unqualified opinion meaning the auditor did not take any material exception to the reports as presented. Additional sections include the basic financial statements, with notes, and statistics. Total assets exceeded liabilities with unrestricted net assets totaling $166 million and outstanding debt $27.6 million. The auditors discussed a proposed change in governmental accounting and reporting that is currently under review. Current standards allow unfunded pension liabilities and other post-retirement benefits (OPEB) to be disclosed in the notes to the financial statement. The pending changes would actually require the City to record this liability on its accounting records and could be effective as early as 2013. Councilmember McGovern noted and Ms. Wagner confirmed that this is the City's first year working with the firm of Vavrinek, Trine, Day & Company. She felt that while certain information seemed more in depth, it was more difficult for her and likely the public, to pinpoint the specific markers she was looking for. She also confirmed with Ms. Wagner that the unfunded liability related to pension and OPEB has increased $12 million over the prior year and asked staff to discuss efforts to reduce the overall liability. Ms. Wagner stated that in keeping with the Council's new goal to reduce the unfunded liability by at least 10% over the next five years, several significant measures have been taken. Since June 30, 2011, the City has implemented and funded a PERS Stabilization Fund to the tune of $1 million, paid off the Police Side Fund in the amount of $7.8 million, continued to negotiate with labor groups in order to reduce the City's contribution to the EPMC, and implemented a two tiered system for retiree medical benefits and pensions. These combined efforts are working towards the overall goal, but will not be reflected in these reports until the 2011-12 fiscal year. City Council Minutes Page 2 of 5 February 21, 2012