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funding and to direct staff to do calculations for GASB45 for 2008 even though it was not required by law. Judy Symcox said CaIPERS has a current unfunded liability of $26 billion and felt the City would be better off on its own, did not feel the item was not noticed well and was last discussed late in the evening, voiced concerns of transparency, referred to overtime costs, retiree medical and contribution into PERS and felt the cost annually per employee would be over $198,000. Kay Ayala opposed to the excessive medical and retirement benefits compared to the private sector, quoted Professor Alexander Tyler and felt it behooves elected officials to turn back what was changed in 2000 as the City could not fiscally sustain the benefits given to the unions. Karen Martens disagreed that the City could not afford to pay increased benefits, agreed benefits were expensive, thanked the Council for standing behind the matter, felt there was sufficient time for people to have obtained information at the first reading and was concerned that the Livermore/Pleasanton Fire Department employees might get the idea that the public does not think they are worth the amount of money put forth. Councilmember McGovern noted all issues being discussed had been negotiated, felt the City was looking at its long-term liability to determine how to ensure people are paid over time, felt there was collaboration in bringing the liability more into line for the City but did not feel it was one-sided. Mayor Hosterman said the COLA was 4.5%, felt firefighters risk their lives everyday, wanted firefighters well-trained, well-paid, and for them to be able to continue to do their jobs. Councilmember McGovern concurred with Mr. Brozosky's comments and the idea of putting the ARC at a level to keep up with whatever the City owes but questioned how this could be done. City Manager Fialho said this could be reflected in the motion and staff would include the statement in the June 2008 Comprehensive Annual Financial Report which is submitted to the Council at the end of the fiscal year. He said in the next two-year operating budget, with the exception of Fire, staff has put aside the ARC. On the LPFD side, this was not done because of need to work with Livermore to determine the amount. Councilmember Thorne agreed that private sector employee benefits were very different, but felt the City had put more things into place that made the MOU structured more like a private sector program. Councilmember Sullivan questioned when details of the trust would be reviewed. City Manager Fialho said the details in terms of the establishment of the trust will not occur until 2009 but the mechanics of how the City accounts for its liability and puts aside the annual contribution will be reflected in the 2008 report. Councilmember Sullivan said this was a collective bargaining agreement between the employees and employer, which he felt was democracy in the workplace and a right to be maintained. He felt what the City did with the firefighters was a good process and it should be celebrated. Regarding transparency issues, he said there is a JPA committee comprised of two representatives of each Council. The concepts and framework of the negotiations and strategies are agreed to by that JPA committee in advance, for which two public meetings have been City Council Minutes 6 September 4, 2007