Oversight Board for the Redevelopment Successor Agency

HEALDSBURG CITY COUNCIL/REDEVELOPMENT AGENCY REGULAR MEETING MINUTES January 17, 2012 Healdsburg City Hall Council Chambers 401 Grove Street, Healdsburg Present: Councilmembers: Babb, Chambers, Wood, and Mayor Plass Absent: Councilmembers: Jones CALL TO ORDER Mayor/Chairperson Plass called to order the regular, concurrent meeting of the City Council and Redevelopment Agency Board at 6:01:16 PM . APPROVAL OF AGENDA Mayor/Chairperson Plass stated it was his intention to move agenda item 8D, Joe Nation’s report, to after Old Business depending on Mr. Nation’s arrival. Councilmember/Board Member Chambers, seconded by Councilmember/Board Member Wood, moved to approve the January 17, 2012 City Council/RDA meeting agenda as submitted. The motion carried on a voice vote City Councilmember/Board Member Jones noted as absent. (Ayes 4, Noes 0, Absent – Jones) APPROVAL OF MINUTES Councilmember/Board Member Wood, seconded by Councilmember/Board Member Babb, moved to approve the January 3, 2012 regular meeting minutes as submitted. The motion carried on a voice vote with Councilmember/Board Member Jones noted as absent. (Ayes 4, Noes 0, Absent – Jones) ANNOUNCEMENTS/PRESENTATION Mayor Plass announced that on Saturday, January 14, 2012, he presented a proclamation to Dr. David Anderson recognizing him on the occasion of his retirement after 39 years of family practice. COUNCIL REPORTS Councilmember Babb reported that he attended the Villa Subcommittee meeting and the issues being considered are the budget and marketing strategies. Mayor Plass reported that on Saturday, January 14th he attended Dr. Anderson’s retirement party; and on January 13, 2012 the state of the County breakfast and the Sonoma County Mayors and Councilmembers Legislative Committee meeting in Rohnert Park. City Council/RDA Meeting Minutes January 17, 2012 Page 2 PUBLIC COMMENTS ON NON-AGENDA ITEMS Mr. Mike Fairchild, Chiquita Road, addressed Council regarding the Library Advisory Board’s desire to honor Millie Howie with something at the Healdsburg Library and expressed concern that due to the lack of a formal lease between the City and the Library they will not be able to acquire the necessary permits. Mr. Fairchild asked Council to assist them in securing the necessary permits to honor Millie. Mayor Plass asked Assistant City Manager Mickaelian to meet with Mr. Fairchild to resolve the matter. City Manager Pettus informed Council progress is being made on the lease. Councilmember Chambers asked that staff provide an update on the status of the lease at the next meeting. CONSENT CALENDAR On a motion by Councilmember Wood, seconded by Councilmember Babb, approved the Consent Calendar as follows: A. CHECK DISBURSEMENT REPORT By motion, approved the check disbursement report for checks issued by the City of Healdsburg during the month of December 2011. (Ayes 4, Noes 0, Absent – Jones) B. RDA - CHECK DISBURSEMENT REPORT By motion, as the Redevelopment Agency, approved the RDA’s check disbursement report for checks issued during the month of December 2011. (Ayes 4, Noes 0, Absent – Jones) C. RESOLUTION NO. 5-2012 – REED GROUP Adopted Resolution No. 5-2012 entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HEALDSBURG APPROVING A THIRD AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH THE REED GROUP, INC. INCREASING THE NOT TO EXCEED AMOUNT, EXTENDING THE TERM AND COMPLETION DATE, INCREASING BUDGET APPROPRIATIONS AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE THIRD AMENDMENT ON BEHALF OF THE CITY.” (Ayes 4, Noes 0, Absent – Jones) City Council/RDA Meeting Minutes January 17, 2012 Page 3 D. RESOLUTION NO. 6-2012 Adopted Resolution No. 6-2012 entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HEALDSBURG ACCEPTING AS COMPLETE THE HEALDSBURG AVENUE IN-ROADWAY LIGHTS PROJECT, CIP NO. PWT-111 (PW PROJECT #2011-03) AND AUTHORIZING THE FILING OF A NOTICE OF COMPLETION.” (Ayes 4, Noes 0, Absent – Jones) E. PLANNING COMMISSION ACTIONS Noted receipt of the Planning Commission actions taken at its January 10, 2012 meeting. (Ayes 4, Noes 0, Absent – Jones) F. UTILITY EASEMENT DEDICATION – G3 ENTERPRISES Adopted Resolution No. 7-2012 entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HEALDSBURG TO ACCEPT THE DEDICATION OF EASEMENT FOR PUBLIC UTILITIES FROM G3 ENTERPRISES AT THE PROPERTY COMMONLY KNOWN AS 845 HEALDSBURG AVENUE, APN’S 002-033-026 AND 002-033-017 (PORTIONS).” (Ayes 4, Noes 0, Absent – Jones) G. SOROPTIMIST INTERNATIONAL OF HEALDSBURG By motion, approved Soroptimist International of Healdsburg’s request to allow consumption of alcohol in Plaza Park during the Annual Beer in the Plaza Festival on September 8, 2012 and to fence the perimeter of the Plaza using City approved barricades and signage. (Ayes 4, Noes 0, Absent – Jones) H. EVENTS WITH SOLE’S By motion, approved Events with Sole’s requests, as follows: (1) consumption of alcohol in the City Hall parking lot off of Grove Street; (2) a rolling road closure on Grove Street between North Street and Dry Creek Road 101 underpass on October 14, 2012 from 6:30 AM to 7:45 AM; and (3) closure of Grove Street between North Street and South Foss Creek Circle from 6:30 AM to 2:00 PM for the fifth annual Healdsburg Marathon. (Ayes 4, Noes 0, Absent – Jones) I. HEALDSBURG WILD STEELHEAD FESTIVAL By motion, approved Trout Unlimited’s request to allow consumption of alcohol in Plaza Park at the fifth annual Healdsburg Wild Steelhead Festival on February 11, 2012 and the closure of Plaza Street between Healdsburg Avenue and Center Street on February 11, 2012 from 6:00 am to 6:00 pm. (Ayes 4, Noes 0, Absent – Jones) City Council/RDA Meeting Minutes January 17, 2012 Page 4 The motion to approve the Consent Calendar as submitted carried on a roll call vote with Councilmember Jones noted as absent. (Ayes 4, Noes 0, Absent – Jones) PUBLIC HEARINGS None. DISCUSSION – CONTENT OF CITIZEN OPINION POLL 6:12:19 PM City Manager Pettus recalled a consultant was hired to develop a ballot feasibility measure poll and a question has come up as to whether the poll is being set up in a way that would enable Council to get the information it needs to make a decision on the matter. Thus far items identified include polling on an increase in TOT, a reallocation of TOT, a general sales tax increase with a spending plan, a special tax that will be funded by a sales tax increase; and a property tax assessment for the maintenance of Memorial Bridge. Ms. Pettus inquired whether proceeding with a poll that has many diverse questions will provide the necessary information for Council to decide what particular revenue measure it would like to place on the ballot. Council discussion ensued regarding: (1) whether it was desirable to narrow the focus of the poll and clarify what Council wants to accomplish; (2) whether the TOT question should be left off the poll because it will not generate enough revenue; and (3) the desire to simplify the poll but include the parcel tax question for the maintenance of the bridge. Following the discussion, it was Council’s consensus to narrow the focus of the survey to make it clearer and easier to understand, include the ½ cent sale tax question (special v. general) and a parcel tax for the Memorial Bridge maintenance. In response to City Manager Pettus’ inquiry, it was Council’s consensus to delegate to the Subcommittee members final approval of the actual poll. LOCAL HAZARD MITIGATION PLAN Fire Chief Adams reviewed the proposed resolution adopting the 2010 Association of Bay Area Governments (ABAG) report entitled “Taming Natural Disasters”, Local Hazard Mitigation Plan (LHMP) and the Healdsburg Annex as the LHMP for the City of Healdsburg. Chief Adams added the Local Hazard Mitigation Plan describes the disasters likely to affect the City, and outlines the coordinated responses that will be undertaken should they occur. The document compiles and summarizes the City’s internal training, emergency response plans and operations with respect to natural disasters that could threaten City assets or public use of the City’s facilities. City Council/RDA Meeting Minutes January 17, 2012 Page 5 Chief Adams noted that although the City’s adoption of ABAG’s Plan is voluntary, the City must have, or be a part of, an LHMP in order to be eligible for mitigation funding from the Federal Emergency Management Agency (FEMA) in the event of a disaster. On a motion by Councilmember Babb, seconded by Councilmember Chambers, adopted Resolution No. 8-2012 entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HEALDSBURG ADOPTING THE 2010 ASSOCIATION OF BAY AREA GOVERNMENTS REPORT ENTITLED “TAMING NATURAL DISASTERS”, LOCAL HAZARD MITIGATION PLAN AND THE HEALDSBURG ANNEX AS THE LOCAL HAZARD MITIGATION PLAN FOR THE CITY OF HEALDSBURG.” The motion carried on a roll call vote with Councilmember Jones noted as absent. (Ayes 4, Noes 0, Absent – Jones) APPOINTMENT OF BUDGET SUBCOMMITTEE 6:25:27 PM City Manager Pettus stated staff has been discussing the best way to proceed with this year’s budget preparation and one option is the possibility of having two Councilmembers work with staff to identify core services and make initial recommendations for the budget. Council discussion ensued regarding the desire for the entire Council to re-evaluate the core services established last year and identify guidelines as to the level of service. Following discussion regarding the need to evaluate the core services on an annual basis, it was Council’s consensus to direct staff to schedule a work session with the entire Council. PARKS AND RECREATION COMMISSION VACANCIES 6:34:11 PM Assistant City Manager Mickaelian reported that the terms of Commissioners Jay Tripathi and Kathy Birdsong expired January 1, 2012 and both Commissioners are seeking re-appointment. Staff advertised the vacancies in the Healdsburg Tribune and on the homepage of the City’s website since December 2011 and no new applications were received. Mr. Mickaelian recommended that Council form a Subcommittee and direct staff to schedule interviews for the incumbents to fill the two vacancies on the Commission. Council could opt to: re-appoint the two Commissioners without conducting interviews; or extend the deadline and direct staff to re-advertise the vacancies and seek interested persons using other modes of recruitment. On a motion by Councilmember Chambers, seconded by Councilmember Babb, reappointed Commissioners Birdsong and Tripathi for an additional three year term to end January 1, 2014. The motion carried on a voice vote with Councilmember Jones noted as absent. (Ayes 4, Noes 0, Absent – Jones) Due to the late arrival of Mr. Joe Nation, Council opted to adjourn into close session until his arrival. City Council/RDA Meeting Minutes January 17, 2012 Page 6 CLOSED SESSION The City Council/RDA Board adjourned to the conference room at 6:39:06 PM to meet in closed session to discuss the following: A. As the City Council, pursuant to Government Code Section 54957.6 - Conference with Labor Negotiator Agency Negotiator: City Manager Pettus Employee Organizations: HPOA B. Conduct Public Employee Performance Evaluation, pursuant to Government Code Section 54957 - Title: City Manager The City Council recessed the Closed Session and reconvened to the regular meeting at 6:54:09 PM. JOE NATION’S PRESENTATION ON PENSION REFORM 6:59:32 PM Mr. Joe Nation recalled the research project was sponsored by California Forward and the Irvine Foundation with a focus on public pension financial problems and solutions at the State and local levels. The findings of the statewide report indicate that: 1. The accounting rules, the assumptions, and the methods used matter greatly • The discount rates are most important • Ex post vs. ex ante assumptions – Private sector earns return and then modifies benefits; and the contributions rates are based on market experience, while the public sectors award the benefits then expects to earn enough to pay for them. • Long term amortization periods cushion current hit, but increases the chances of sustained higher costs. 2. CalPERS earning assumptions are too optimistic • CalPERS boasts 1990-2011 annual rate of approximately 8%, however, a 20th century portfolio of equities, fixed income instruments earned only approximately 6% to 6.5% • The 50th percentile of earnings is just over 7% based on the past 30 years • Overstating returns results could cause problems very quickly 3. The CalPERS unfunded liability as of December 2011 is approximately $108.6 billion 4. The cost of state pensions have more than tripled from 2000 to 2012 and the cost will mostly likely continue to increase 5. Alternative discount rate scenarios show sharp increases in CalPERS retirement spending if projected rate of return is not realized City Council/RDA Meeting Minutes January 17, 2012 Page 7 6. Governor Brown’s “Twelve-Point Pension Reform Plan” will have a positive impact but will not be enough Mr. Nation discussed Healdsburg’s status in CalPERS risk pools, the pool funded status, the employer rate for the upcoming year, and the estimated unfunded liability as of June 2011 of approximately $25.7 million. Mr. Nation noted that lower discount rates will increase Healdsburg’s (employer) contribution rates and that in order to fix the problem, the entities should: 1. Acknowledge the severity of the problem 2. Involve the community and the stakeholders 3. Recognize that minor fixes, such as new tiers for new hires, won’t work 4. Recognize that employees and employers will have to contribute much more Mr. Nation made the following recommendations: 1. Consider refinancing the side fund to save costs 2. Consider a non-binding resolution requesting an estimate of CalPERS termination costs 3. Advocate for political solutions, such as supporting Governor Brown’s 12 point plan and advocating for administrative flexibility 4. Decrease compensation costs through collective bargaining, require employees to pay a larger share of the contributions and establish a second tier for new employees Councilmembers expressed concern regarding the increasing pension costs, the possibility that PERS will run out of money, and the need for everyone involved to come together to address the unfunded liability. Council thanked Mr. Nation for taking time out of his busy schedule to come to Healdsburg to present the findings of the research project. CITY MANAGER REPORTS None. CLOSED SESSION The City Council/RDA Board reconvened to the Closed Session at 7:56:29 PM to discuss the following: City Council/RDA Meeting Minutes January 17, 2012 Page 8 A. As the City Council, pursuant to Government Code Section 54957.6 - Conference with Labor Negotiator Agency Negotiator: City Manager Pettus Employee Organizations: HPOA B. Conduct Public Employee Performance Evaluation, pursuant to Government Code Section 54957 - Title: City Manager No action was taken during or following the closed session only direction was given to staff. ADJOURNMENT There being no other Council/RDA business to discuss, the meeting was adjourned at 8:32 P.M. APPROVED: ATTEST: __________________________________ ___________________________________ Gary W Plass, Mayor/Chairperson Maria Curiel, City Clerk/Agency Secretary