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explained the City has been satisfied with the provisions of the current:labor contract but it requires a wage adjustment to account for the cost of living. She advised representatives of the City and PCEA have been discussing this proposed successor agreement. Director Gill reported the proposal is for a three-year contract, matching the current agreement. She advised wages will,be adjusted by 4.25% in April 2022, 3% in April 2023, and 3% in;April 2024. She noted:the staff recommendation is to obtain public and City Council input on the tentative agreement's key elements and potentially bring the agreement to City Council at the next meeting for approval. Mayor Brown opened the public hearing. Lisa Harlow, of the American Federation of State, County, and Municipal Employees (AFSCME) Local 955, reported the union has had a great relationship,with the City, marked by very few issues of recruitment and retention due to the City's competitive wage and benefit package. She reported the members ratified the tentative agreement and expressed hopes the City Council will also vote to ratify the agreement. She expressed appreciation,to the City Council for being a great employer. Jon,Engelbrektson, President of the AFSCME.Local 955, thanked the•City for negotiating in good faith to come to this tentative agreement. He; advised it is a victory-for both sides without extended negotiations and encouraged the City Council to approve the contract. Mayor Brown.closed the public hearing. Mayor Brown clarified this item is to hear the presentation and take public input, but not to vote on the agreement. . Director Gill confirmed the voting will be scheduled at the.November 2 City Council meeting. Councilmember Narum noted this is-.an appropriate item to be heard following the satisfaction survey which spoke well of the,City's staff. She advised she looks forward to voting in favor of it in two weeks. Councilmember Testa agreed with Councilmember Narum that it is an appropriate item to follow up on the survey. She advised it is a nice reflection to have such a good relationship with the union and to be able to put together a contract everyone feels good about. Councilmember Balch expressed appreciation for those who do the City's work, particularly during the pandemic. He,thanked the unionfor bargaining in good faith and noted he looks forward to supporting the agreement in two weeks. Councilmember Arkin expressed support for the agreement and thanked the.staff.for their hard work, dedication, and flexibility during the pandemic. She thanked the negotiating team for its work. Mayor Brown noted employees did many things during the pandemic beyond their regular jobs. She stated it is a fair contract for the residents, City, and employees. She thanked the union representatives for calling into the meeting. Mayor Brown recessed the meeting.at 8:57 p:m. The meetingresumed at 9:03 p.m. 13. Housing Element Update — Review and provide direction on the draft Preliminary Report for the 2023-2031 (6th. Cycle) Housing Element Update and housing-related policy items to be brought forward for future analysis and discussion Community Development Director Ellen Clark reported the Preliminary Report includes a data-heavy analysis of the City's housing needs along with constraints to local housing production. Staff is also City Council Minutes Page 7 of 14 _ October 19,2021