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HomeMy WebLinkAbout07-10-2012 c1 minutes june 12 and june 19 2012MEETING DATE : July 10, 201 2 ITEM :C l MINUTE S SPECIAL AND REGULAR MEETING OF THE CITY COUNCI L CITY OF SAN LUIS OBISP O TUESDAY, JUNE 12, 201 2 5 :30 P .M . SPECIAL MEETIN G 7 :00 P .M . REGULA R COUNCIL CHAMBER, 990 PALM STREE T SAN LUIS OBISPO, CALIFORNI A ROLL CALL : Council Member s Present :Council Members John Ashbaugh, Andrew Carter and Kathy Smith, Vic e Mayor Dan Carpenter, and Mayor Jan Mar x City Staff Present :Katie Lichtig, City Manager, Christine Dietrick, City Attorney, Michae l Codron, Assistant City Manager, and Sheryl) Schroeder, Interim City Clerk, were present at Roll Call . Other staff members presented report s or responded to questions as indicated in the minutes . --------------------------------------------------------------------------------------------------------------- CLOSED SESSIO N City Attorney Dietrick announced the following Closed Session topics ; CONFERENCE WITH LEGAL COUNSEL — Anticipated Litigatio n Pursuant to Government Code § 54956 .9 (c ) One (1) potential case, CBS Outdoor Incorporate d CONFERENCE WITH LEGAL COUNSEL — Anticipated Litigatio n Pursuant to Government Code § 54956 .9 (b)(1 ) One (1) potential case, a title dispute over APNs 053-152-007 and 053-152-008 ,Calle Joaquin open space parcel s PUBLIC COMMENT ON CLOSED SESSION ITEM : Mayor Marx called for public comments . None were heard and the Council adjourned t o the Closed Session . All Council Members returned from Closed Session at 7 :00 p .m . ROLL CALL : Council Member s Present :Council Members John Ashbaugh, Andrew Carter and Kathy Smith, Vic e Mayor Dan Carpenter, and Mayor Jan Marx City Council Meeting Minutes Page 2 June 12, 201 2 City Staff Present :Katie Lichtig, City Manager, Christine Dietrick, City Attorney, Michae l Codron, Assistant City Manager, and Sheryll Schroeder, Interim Cit y Clerk, were present at Roll Call . Other staff members presented report s or responded to questions as indicated in the minutes . = PLEDGE OF ALLEGIANC E The Pledge was provided by Council Member Ashbaugh . CLOSED SESSION REPOR T City Attorney Dietrick announced that there were no reportable actions from either Close d Session items . --------------------------------------------------------------------------------------------------------------- PRESENTATION S Vice Mayor Carpenter presented Crissa Hewitt, representing Guy Rathbun, Public Radi o Broadcaster, a Proclamation . Mr . Rathbun arrived and thanked the City for th e recogniation . APPOINTMEN T Al .APPOINTMENT TO THE HOUSING AUTHORITY BOAR D ACTION :Motion by Council Members Ashbaugh/Smith to appoint Patricia Souza a s the senior tenant representative to the Housing Authority Board for a term to begin o n June 12, 2012, and expire on March 31, 2013 . ----------------------------------------------------------------------------------------------------------------- PUBLIC COMMENT (Items not on the agenda ) Gary Fowler, San Luis Obispo, spoke regarding an item from last meeting pertaining t o a requirement for fire inspections, which he said was not mandatory . He requested th e City Attorney clarify the issue, which Council agreed to staff responding . Jim Griffin, spoke regarding homelessness and possible solutions . C1-2 City Council Meeting Minutes Page 3 June 12, 201 2 Don Hedrick, San Luis Obispo, spoke about investment of city funds an d homelessness . Trina Blanchette, San Luis Obispo, read a newspaper article on homelessness an d police enforcement . Derek Johnson replied to the speaker noting that CAPSLO had a neighborhood polic y regarding loitering near Prado Day Center . He said the rule was that if clients violate d rules, they could not participate in plan for a limited amount of time . Will Powers, San Luis Obispo, spoke about the lack of transparency in the city government and the membership of the Land Use and Circulation Task Force .---------------------------------------------------------------------------------------------------------------- CONSENT AGEND A ACTION :Council Members Carter/Ashbaugh to approve Consent Calendar Items C l and C2 . Roll Call vote :5-0 . Motion Carried . CI .LAGUNA LIFT STATION REPLACEMENT PROJECT — SPECIFICATION NO . 91116 . ACTION :1) Approve plans and specifications for the Laguna Lift Station Replacemen t Project, Specification No . 91116 . 2) Authorize staff to advertise for bids . 3) Authorize the City Manager to award the contract if the lowest responsible bid is within th e Engineer's Estimate of $525,30 0 C2 .CANCEL JULY 3, 2012 . COUNCIL MEETING, ADD NOVEMBER 7, 2012 TO . THE MEETING SCHEDULE AND REINSTATE DECEMBER 18, 201 2 MEETING . ACTION:Cancel the Regular City Council Meeting of Tuesday, July 3, 2012, call a special meeting for November 7, 2012 and reinstate the regular meeting of Decembe r 18, 2012 . ----------------------------------------------------------------------------------------------------------------- PUBLIC HEARING S PHI .APPEAL OF TREE COMMITTEE DECISION TO APPROVE A TRE E REMOVAL APPLICATION AT 1082 SAN ADRIANO . Director of Public Works Walter and City Arborist Combs presented the staff report and responded to Council comments . Various Council Members asked questions and commented on the item, noting the y had gone to the location to look at the situation . Mayor Marx open public hearing . City Council Meeting Minutes Page 4 June 12, 2012 PUBLIC COMMENTS Julie Merrill, San Luis Obispo, appellant, said the tree was planted in 1972, adding tha t type of tree lived to about 108 years of age and that many of the neighbors wished t o preserve the tree . Kenneth Maier, owner of the property, said the root system was exposed, the sprinkle r system had been ruined, and it was creating a hardship . Tom Robinson, San Luis Obispo, said he felt it was a healthy tree, expected to live man y more years . He explained that the property was a rental and never landscaped, the root s had cracked the driveway and street but could be cut at the driveway line . Sally Campbell, San Luis Obispo, noted that all the other trees planted at the same tim e have died due to disease, there were only two left . She expressed that 40 year old trees could not be replaced . Lacey McCrigler, San Luis Obispo, said the tree was a part of the neighborhood an d Santa Barbara had the same type of trees which they pruned the roots . Connor Hall, San Luis Obispo, said he grew up in neighborhood and had fond memories of the area . Jeff Specht said most of houses in neighborhood had the same tree planted when it was built but most of the neighbors took them out . He pointed out the damage that the tre e had caused to street and he felt it was dangerous . Lori Hackett said she grew up in the house and hated to see it removed but it wa s beginning to create a cost on her parents and she said she was concerned about th e liability and hazard . Jane Pomeroy encouraged the City to keep the tree . Will Powers, San Luis Obispo, expressed concern over the number of trees the Tre e Committee was approving for removal . He said he wished to see the tree kept an d maintained . Hearing no further testimony, Mayor Marx closed the public hearing . Council Member Ashbaugh said he usually deferred to property owners wishes but i n this case, he must support removal of tree . Council Member Carter noted it was a difficult balance to make the decision but h e would have to support removal of the tree . C1-4 City Council Meeting Minutes Page 5 June 12, 201 2 Council Member Carpenter empathized with the neighborhood and said he felt th e damage was irreversible and would support staff recommendation . Council Member Smith expressed that it was a difficult decision, that the communit y cared about trees . Mayor Marx said it was a difficult case and she would support appeal . ACTION :Motion by Council Members Carter/Carpenter to : adopt Resolution No . 1036 7 (2012 Series) denying the appeal of the Tree Committee's decision to allow the remova l of a pine tree at 1082 San Adriano . Roll Call vote : 3-2 . Council Member Ashbaugh an d Mayor Mark opposed . Motion Carried . PH2.RENEWAL OF AGREEMENT WITH CAL POLY REGARDING WATER AN D SEWER RATE SETTING .(MATTINGLY/HORTON) - 15 MINUTE S Utilities Director Mattingly and Water Division Manager Horton presented the staff repor t and responded to Council comments . Mayor Marx opened the public hearing . Hearing no comments, Mayor Marx closed the public hearing . ACTION :Motion by Council Members Ashbaugh/Smith to approve and authorize th e Mayor to execute the updated agreement with California Polytechnic State Universit y regarding water and sewer rate setting . Roll Call vote : 5-0 . Motion Carried . PH3.FY 2012-13 WATER FUND REVIEW . Utilities Director Mattingly, Water Division Manager Horton, and Interim Senio r Administrative Analyst Head presented the staff report and responded to Counci l comments . Mayor Marx opened the public hearing . Hearing no testimony, Mayor Marx closed th e public hearing . Council Member Carter asked why the sewer fund balance was so high . Utilities Director Mattingly responded that the fund had a 20% reserve policy like th e general fund, adding that staff would be reviewing whether or not that was appropriat e for sewer and water funds . She said it probably should be more and it would b e assessed . Council Member Carter asked how the telemetry system saved the City money an d Water Division Manager Horton answered that it increased efficiency and allowed fo r real time control of the pumping system and tank monitoring . City Council Meeting Minutes Page 6 June 12, 201 2 Council Member Carter, regarding the contract with CalPoly, said the decreased o f about $300,000 was a significant decrease, which concerned him . He referred to a n analysis he had prepared and asked why the rates had not gone down when they wer e forecast to be reduced in certain years . At this point in the meeting, 9 :15 P .M ., Council took a break and at 9 :25 P .M ., al l Council returned to open session . Council Member Smith said she voted no on a water fund increase when the two yea r budget was approved, she was not pleased with a 9% increase and she would be votin g no on that item . Council Member Ashbaugh moved to approve PH3, items 1 through 3 . Motion died fo r lack of a second . ACTION :Motion by Council Members Ashbaugh/Carter to : 1) Review and accept th e FY 2012-13 annual Water Fund financial review . Roll Call vote : 3-2 . Council Members Carpenter and Smith opposed . Motion Carried . ACTION :Motion by Council Members Ashbaugh/Carter to : 2) Conceptually approve the 2012-13 Water Fund budget, with final action on June 19, 2012 with the adoption o f the 2011-13 Financial Plan Supplement and 3) Authorize the addition of the Utilitie s Business Manager position . Roll Call vote : 5-0 . Motion Carried . ACTION :Motion by Council Member Carter/Ashbaugh to 4) Adopt Resolution No : 10368 (2012 Series) revising water fixture and meter charges based on current materia l costs . Roll Call vote : 5-0 . Motion Carried . ----------------------------------------------------------------------------------------------------------------- BUSINESS ITEM S B1 .FY 2012-13 SEWER FUND REVIEW . Utilities Director Mattingly, Wastewater Division Manager Hix presented the staff repor t and responded to Council comments . PUBLIC COMMENTS ON BUSINESS ITEM B1 : None . Council Member Carter asked the game plan for the Water Reclamation Facility Energ y Efficient Project and Manager Hix answered on a large capital improvement project staff would normally bring a request to Council, but they did not feel they had enoug h information for that to occur without a capital improvement request, it was not shown i n the fund . The resolution before Council would be appropriate to get preliminary loa n information for the project and return to Council in November . City Council Meeting Minutes Page 7 June 12, 201 2 Council Member Ashbaugh suggested in the third whereas clause, the wor d assessment should be changed to analysis, "Investment Grade Analysis". Council Member Ashbaugh moved approval of Item B1 . Motion died for lack of a second . Council Member Carter noted that 15 to 17 years was a long payback time . Council Member Smith said she would vote no on rate increases . ACTION :Motion by Council Members Carter/Ashbaugh to : 1) Review and accept th e FY 2012-13 annual Sewer Fund financial review . Roll Call vote : 3-2, Council Member s Carpenter and Smith opposed . Motion Carried . ACTION :Motion by Council Member Carter/Ashbaugh to : 2) Conceptually approve the 2012-13 Sewer Fund budget, with final action on June 19, 2012 with the adoption of th e 2011-13 Financial Plan Supplement ; 3) Authorize the addition of a Utilities Busines s Manager position ; 4) Approve the amended Capital Improvement Plan ; and 5) Adopt Resolution No : 10369 (2012 Series) Water Reclamation Facility (WRF) Energ y Efficiency Project communicating the Council's preliminary support for initial loan an d grant application processing . Roll Call vote : 5-0 . Motion Carried . B2 .TRANSIT ENTERPRISE FUND REVIEW 2012 . Director of Public Works Walter, Deputy Director of Public Works Bochum an d Administrative Analysis Mudgett presented the staff report and responded to Counci l comments . Council Member Ashbaugh said he was looking for ways to get the fare box ratio bac k into line . He asked if there was a possibility that the Federal Transit Authority would no t approve the short range allocation plan . Finance Director Bourbeau noted the short range transit cost allocation plan must b e approved by the FTA and Council . He said an outside consultant wasused to complete the new cost allocation plan as a result of concerns the FTA had on theprevious plan . He said he did not anticipate any problems with approval of the plan itself, the concer n was the reduction of the ratio of fare box revenue . Mayor Marx asked if the RTA used the same formula that was applied to the City's system . She said there was a county-wide report on fare box ratios and the City wa s recorded as meeting the fare box ratio . Deputy Director of Public Works Bochum responded that this was more recen t information than the SLOCLOG study that was conducted about 3 months ago . PUBLIC COMMENTS ON BUSINESS ITEM B2 : None . City Council Meeting Minutes Page 8 June 12, 201 2 Council Member Carter said it was clear from the staff's report that the City had slippe d below the fare box ratios and at some point Council would have to look at fare increase s or service reductions . ACTION :Motion by Council Members Smith/Carter to : 1) Review and accept the 2011 - 12 Transit Enterprise Fund analysis . 2) Conceptually approve the 2012-13 FY Transi t Enterprise Fund budget, with final action on June 19, 2012 . Roll Call vote : 5-0 . Motio n Carried . B3 .PARKING FUND REVIEW 2012 . Director of Public Works Walter and Parking Services Manager Horch presented th e staff report and responded to council comments . Council Member Carter rational between a 1/3 rotating and one full time employee . Director Walter responded since staff was not sure of the duration of the vacancy an d staff felt with augmentation of resource help they could continue the rotation . Council Member Smith asked the original prediction of payoff for the credit card meters . Parking Services Manager Horch answered it was 7 months . City Manager Lichtig added that she did not want the impression that the program wa s paid off in 3 months, the net increase associated with the additional revenue from th e credit card parking meters had not caused the City to have paid off the meters at thi s point in time . While there had been a significant reduction in the payback period, the y were not yet paid off, she clarified . Council Member Smith, referencing Page B3-9, asked which dispatch center upgrad e was being referred to . Manager Horch answered that was the parking funds portion o f the police dispatch center . Council Member Ashbaugh asked about the design and EIR process for th e Palm/Nipomo structure . Manager Horch replied that the City was just beginning the EI R process, which was being delayed temporarily because staff did not think they neede d the structure right away and also because Council had redirected some of his time . PUBLIC COMMENTS ON BUSINESS ITEM B3 : None . ACTION :Motion by Council Members Carpenter/Smith to : 1) Review and discuss th e 2012 annual Parking Fund Review. 2) Conceptually approve the Parking Enterprise Fun d budget of 2012-13, with final action on June 19, 2012 with the adoption of the 2011-1 3 Financial Plan Supplement . Roll Call vote : 5-0 . Motion Carried . ----------------------------------------------------------------------------------------------------------------- City Council Meeting Minutes Page 9 June 12, 2012 COUNCIL LIAISON REPORTS AND COMMUNICATION S Council Member Ashbaugh had a prepared report. Council Member Carter said he met with the performing arts center facility committee thi s date and he attended the neighborhood wellness meeting last week . Mayor Marx reported she attended the CalPoly service awards May 16 ; on the 17t h attended SCLC ; on the 23rd the Air Pollution Control District meeting ; on the 24th th e Vets Stand Down and Job Fair ; and the 31st, volunteer service awards at Laguna Middl e School . The Mayor's meeting was June 1st, performaing arts ribbing cutting,June 6th SLOCLOG, downtown center tree lighting ceremony, 7th Whale Rock Commission . There being no further business to come before the City Council, Mayor Marx adjourne d the meeting at 10 :55 p .m . Sheryll Schroeder, MM C Interim City Cler k APPROVED BY COUNCIL : MINUTE S REGULAR MEETING OF THE CITY COUNCI L CITY OF SAN LUIS OBISP O TUESDAY, JUNE 19, 2012 - 7 :00 P .M . COUNCIL CHAMBER, 990 PALM STREE T SAN LUIS OBISPO, CALIFORNI A ROLL CALL : Council Member s Present :Council Members John Ashbaugh, Andrew Carter and Kathy Smith, Vic e Mayor Dan Carpenter, and Mayor Jan Marx City Staff Present :Katie Lichtig, City Manager, Christine Dietrick, City Attorney, Michae l Codron, Assistant City Manager, and Sheryll Schroeder, Interim Cit y Clerk, were present at Roll Call . Other staff members presented report s or responded to questions as indicated in the minutes . --------------------------------------------------------------------------------------------------------------- PLEDGE OF ALLEGIANCE, The Pledge was provided by Council Member Carpenter . ----------------------------- --------------------------------------------------------------------------------- PUBLIC COMMENT (Items not on the agenda). Don Green, San Luis Obispo, spoke on the management of the Laguna Lak e Workshop, presented written comments and concerns from the workshop . Gary Fowler, San Luis Obispo, spoke on Prop 29, noting that in speaking with th e legislature, if Prop 29 had passed it would have been in effect for 15 years, and at an y time cigarette sale revenue decreased, the state could backfill the state's general fund . Tom Duryea, complained he was told he could not bring recyclables on buses and h e had no other transportation . Director Jay Walter responded they would check the policy and respond . Steve Bararsch, San Luis Obispo, said he was concerned about the level of policin g regarding the good neighbor brochure entitled "Are You A Good Neighbor". ---------------------------------------------------------------------------------------------------------------- C1-10 City Council Meeting Minutes Page 2 June 19, 2012 CONSENT AGENDA (consent calendar items ) Council Member Carpenter mention a correction to the June 5, 2012 Council Minutes , Page 5, Item CI, remove the word "potential". Council Member Ashbaugh mentione d his correction, Item C6, Council Member Carpenter voted no, not Council Membe r Carter . Carol Florence, speaking on C4, Immediate Past President of Big Brothers & Sister s Association, invited Council and staff to a June 24th celebration . City Attorney Dietrick added staff would evaluate the value of the tickets under the City's adopted ticket policy . Anna Aven, Item C4, Assistance League of San Luis Obispo County, thanked the Cit y for the grant . Hilda Zacaras, Item C4, Santa Maria, Alliance for Pharmaceutical, thanked Council fo r supporting the grant . Sylvia Grayham, Item C4, thanked the City for their support . Steve Bararsch, requested Items C6 and C8 be pulled and discussed . Regarding Ite m C6, did not think it should be adopted before Item PH4, the annual budget . Regardin g Item C8, he said he felt the hazard mitigation grant program could have budge t implications and said it should be adopted after the budget . ---end of public comments--- Council Member Ashbaugh requested Item C6 be pulled for discussion . ACTION :Council Members Carter/Ashbaugh moved to approve Consent Calenda r Items Cl through C10, minus C6 .Roll Call vote : 5-0 . Motion Carried . Finance and IT Director Bourbeau, regarding Item C6, explained the purpose of th e appropriations limit and that it did not have to coincide with the budget adoption . ACTION :Council Members Carter/Ashbaugh moved to approve Consent Calenda r Item C6 .Roll Call vote : 5-0 . Motion Carried . CONSENT AGEND A Cl .MINUTES OF TUESDAY, JUNE 5TH, 2012 . RECOMMENDATION : Waive oral reading and approve as amended . C2 .CONTRACT WITH THE SAN LUIS OBISPO SWIM CLUB, INC . FOR USE O F THE SAN LUIS OBISPO SWIM CENTER . City Council Meeting Minutes Page 3 June 19, 201 2 RECOMMENDATION : As recommended by the Parks and Recreation Commissio n (PRC), authorize the Mayor to execute a five-year contract with the San Luis Obisp o Swim Club (Seahawks) for the use of the San Luis Obispo Swim Center . C3.FROOM RANCH TRAIL NAMING "NEIL HAVLIK WAY". RECOMMENDATION : As recommended by the Parks and Recreation Commissio n (PRC), approve naming a trail at Froom Ranch Open Space in honor of Dr . Neil Havli k in recognition of his contributions to the City of San Luis Obispo during his tenure a s Natural Resources Manager . C4.2012-13 HUMAN RELATIONS COMMISSION (HRC) GRANTS-IN-AID (GIA ) FUNDING RECOMMENDATIONS . RECOMMENDATION : As recommended by the HRC, approve the 2012-13 GI A allocations in the amount of $126,600 and authorize the City Manager to execut e agreements with each grant recipient . C5.2012-13 COMMUNITY PROMOTION GRANTS IN AID FUNDING . RECOMMENDATION : As recommended by the Promotional Coordinating Committe e (PCC) 1) Approve $86,385 from the 2012-13 Community Promotions budget for Grants - in-Aid funding to 21 non-profit organizations ; and 2) Authorize the City Manager t o execute the grant agreements with the applicants . C6.APPROPRIATIONS LIMIT FOR 2012-13 . RECOMMENDATION : Adopt Resolution No :10370 (2012 Series) establishing th e City's appropriations limit for 2012-13 . ACTION :Council Members Carter/Ashbaugh moved to approve Consent Calenda r Item C6 .Roll Call vote : 5-0 . Motion Carried . C7.RECOMMENDATION TO ADD THE PROPERTY LOCATED 1026 MIL L STREET TO THE CONTRIBUTING LIST OF HISTORIC RESOURCES . RECOMMENDATION : As recommended by the Cultural Heritage Committee (CHC), Adopt Resolution No :10371 (2012 Series) adding the property located at 1026 Mil l Street to the Contributing List of Historic Resources . C8.RESOLUTION DESIGNATING CITY MANAGER AS AUTHORIZED AGEN T FOR HAZARD MITIGATION GRANT PROGRAM . C1-12 City Council Meeting Minutes Page 4 June 19, 201 2 RECOMMENDATION : Adopt Resolution No :10372 (2012 Series) designating the City Manager as authorized agent for Hazard Mitigation Grant Program . C9.ADOPTION OF ORDINANCE NO . 1580, AMENDING CHAPTER 2 .04 OF TH E SAN LUIS OBISPO MUNICIPAL CODE ; COUNCIL MEETING DATE CHANGE . RECOMMENDATION : Adopt Ordinance No .1580 (2012 Series), amending Chapte r 2 .04 of the San Luis Obispo Municipal Code to restore regular Council meeting dates t o the first and third Tuesday of the month and meeting time to 6 :00 P .M . C10.ADOPTION OF ORDINANCE NO . 1581 AMENDING MUNICIPAL COD E CHAPTER 6 .20 — ANIMAL CONTROL REGULATIONS . RECOMMENDATION : Adopt Ordinance No :1581 (2012 Series) adding Sectio n 6 .20 .070 (Menacing and Aggressive Animals) to Chapter 6 .20 the San Luis Obisp o Municipal Code prohibiting menacing and aggressive animals in the City . ----------------------------------------------------------------------------------------------------------------- BUSINESS ITEMS AND PUBLIC HEARING S BI .ALCOHOL OUTLET STRATEGIES ENHANCED ZONING REGULATION S TO IMPROVE PUBLIC SAFETY ; CITY FILE #: RITA 101-11 . Community Development Director Johnson and Deputy Director Davidson presente d the staff report and responded to Council comments . At this point Council Member Carpenter recused himself and left the dais . H e commented that the media reported that he recused himself at the previous meetin g because he owned a business in the area and that was not the case . He sai d `he owne d commercial property in the area that had no less than twelve alcohol outlets within 50 0 feet of it . Public Comments on Business Item BI : Steve Tolley, Arrow Grande and Safe Night Light Association, said he supported th e proposed changes . David Brodie, San Luis Obispo, said no matter how many rules and regulations ar e passed, it was the number of outlets that was the issue . ---end of public comments--- C1-1 3 City Council Meeting Minutes Page 5 June 19, 201 2 ACTION : Motion by Council Members Smith/Ashbaugh to :Introduce by title onl y Ordinance No .1578(2012 Series) amending Title 17 of the Municipal Code regardin g alcohol outlet regulations .Roll Call vote : 4-0 . Council Member Carpenter recused . Motion carried . PH2 .RESOLUTION OF INTENTION AND AN ORDINANCE AUTHORIZING A N AMENDMENT TO THE CONTRACT BETWEEN THE CITY OF SAN LUI S OBISPO AND THE BOARD OF ADMINISTRATION OF THE CALIFORNI A PUBLIC EMPLOYEES' RETIREMENT SYSTEM TO PROVIDE SECTION 2047 5 (DIFFERENT LEVEL OF BENEFITS), SECTION 21363 .1 (3% A 55 FUL L FORMULA) AND SECTION 20037 (THREE-YEAR FINAL COMPENSATION ) FOR LOCAL FIRE SAFETY MEMBERS . Human Resources Director Irons and Human Resources Manager Zocher presente d the staff report and responded to Council comments . Mayor Marx opened the public hearing . Steve Bararch, San Luis Obispo, asked the dollar amount to buy the City's way out o f PERS and what was the unfunded liability in both tiers . Heaing no further testimony, Mayor Marx closed the public hearing . Council Member Carter said that with respect to the City's unfunded liability, it wa s reported every year in the audit and the public safety pool fund liability was als o reported . He added that CaIPERS would begin to report actuals for the pool funds . H e said the major changes were that fire personnel had agreed to pay their portion o f PERS, which was a 9% savings to the City . The rate for the new second tier would g o down by 4 .7%. Council Member Ashbaugh asked staff to clarify the difference between the size of th e unfunded liability and the cost the City would incur if they tried to lose it . Human Resources Director Irons said her understanding was that if the City tried to exi t PERS, the City would need to fund the unfunded liability but there was also the issue o f whether the City would have to provide an equal benefit . Council Member Smith said she would not support the recommendation based primaril y on Measure A and B . She added that she was pleased that there was a second tier bu t was not satisfied with the pension formula, she would have liked to seen a 2% at 5 0 instead of the 3% at 55 . Council Member Carpenter explained that he did not support the original MOA, addin g that he felt and continued to feel long term reform ; a large part would have to be in th e second tier . He agreed with the three year averaging, he said he could not support th e second tier, 3% at 55 . C1-14 City Council Meeting Minutes Page 6 June 19, 201 2 Mayor Marx said she would support the recommendation, that the second tier with th e fire fighters had been negotiated in good faith . Council Member Carter added that with respect to the differences in formulas, what th e City did get was 4 years of no cost of living increase with fire in exchange for 3% at 5 5 instead of 2% at 50 . He added that the 2% at 50 was an escalating formula so th e difference was really between 2 .7% at 55 that's what the 2% at 50 escalates to, versu s 3% at 55 . ACTION : Motion by Council Members Carter/Ashbaugh to :1) Adopt Resolution No : 10373 (2012 Series) of intention approving an amendment to the contract betwee n the Board of Administration of the California Public Employees' Retirement Syste m (CaIPERS) and the City Council of the City of San Luis Obispo ; and 2) Introduce by titl e only Ordinance No .1582(2012 Series) the first reading of an Ordinance authorizing a n amendment to the contract between the City Council of the City of San Luis Obispo an d the Board of Administration of the California Public Employees' Retirement System, an d authorize staff to bring back the Ordinance for adoption on July 17, 2012 . 3) Adop t Resolution No :10374 (2012 Series) ceasing to pay and report the value of th e employer paid member contribution (EPMC) to the California Public Employee s Retirement System (CaIPERS) for members of the International Association o f Firefighters, Local 3523 hired under the second tier formula .Roll Call vote : 3-2 . Council Members Carpenter and Smith opposed . Motion Carried . B3 .MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF SAN LUI S OBISPO AND THE SAN LUIS OBISPO CITY EMPLOYEES' ASSOCIATIO N FOR THE PERIOD OF JANUARY 1, 2012 THROUGH DECEMBER 31, 2014 . Human Resources Director Irons and Human Resources Manager Zocher presente d the staff report and responded to Council comments . Public Comments on Business Item B 3 Matt Korkonen, San Luis Obispo, said he felt the benefis far exceeded those that wer e being offered to general public employees . He asked what the unfunded pension liabilit y was on the various contracts . He said his analysis was that the defined benefit plans as a whole, were unsustainable . He felt the public should not be bearing the cost of th e various assumtions . He also suggested that a market study be made with variou s entities . Steve Barasch said he felt the City did not have room for error, pension costs would g o higher and it would be helpful for public to know what additional funds were set aside t o pay PERS related costs over the next couple of years . ---end of public comments--- C1-15 City Council Meeting Minutes Page 7 June 19, 201 2 Council Member Carter explained that the agreement with SLOCEA, the employee s would be paying their 8% share of PERS, which was an 8% savings to the City . There would be a second tier which would also show decreases . SLOCEA would be goin g another 3 years without a cost of living increase and paying their share of CaIPERS , which would be a cut in their take home pay . Council Member Carpenter noted SLOCEA employees have agreed to go from a 2 .7 % at 55 for current employees to a second tier at 2% at 60 . He commended th e employees for being a part of the solution, that they were sufficient cuts at that pa y level . Council Member Smith thanked the employees for their leadership and said sh e supported a compensation study . Council Member Ashbaugh commended staff and SLOCEA members . He said with thi s agreement, the City was now at 83% of the goal of savings in employee compensation . He said the new agreement also clarified how health insurance increases were to b e handled . Mayor Marx said the SLOCEA employees were the people who provided services to th e residents and she thanked them for their commitment . ACTION : Motion by Council Members Ashbaugh/Carter to :1) Adopt Resolution No : 10375 (2012 Series) adopting and ratifying the Memorandum of Agreement with a three-year term between the City of San Luis Obispo and the San Luis Obispo Cit y Employees' Association (SLOCEA); and 2) Adopt Resolution No :10376 (201 2 Series) ceasing to pay and report the value of the employer paid member contributio n (EPMC) to the California Public Employees Retirement System (CaIPERS) for SLOCE A members .Roll Call vote : 5-0 . Motion Carried . PH4 .ADOPTION OF 2012-13 BUDGET . City Manager Lichtig, Assistant City Manager Codron and Director of Finance & Information Technology Bourbeau presented the staff report and responded to Counci l comments . Council Member Ashbaugh asked how the City was planning to use the park hote l funds . Finance and IT Director Bourbeau responded it helped fund the housing progra m manager . Council Member Carter noted the hiring of a full time tourism manager, which would b e paid out of the TIBID, had a minor impact on the general fund . C1-16 City Council Meeting Minutes Page 8 June 19, 201 2 Assistant City Manager Codron explained the funding, which was an impact of abou t $20,000 to general fund . Mayor Marx opened the public hearing . Hearing no testimony, Mayor Marx closed the public hearing . Council Member Carter said he supported the move for creation of an IT replacemen t fund, and the TBID paying for tourism manager position . He added that he appreciate d the 5 year forecast and would like to see more detail in forecast . Council Member Carpenter said he thought the sales tax and TOT tax was moving i n right direction . He mentioned he was concerned with the shortfall in the capita l improvement projects fund and addressed some of the assumptions in the 5 yea r forecast . He wished to see more contingency plans in place . Council Member Ashbaugh explained that property taxes were still flat but seeing sligh t increases . He felt the City needed to lock in greater funding in the capital improvemen t program and needed to look at additional grant sources . Council Member Smith said she supported the city clerk reorganization plan, voiced he r concerned with the capital improvement plan, noting that infrastructure wears out an d she encouraged staff to continue to look at ways to reduce the cost of personnel . Mayor Marx felt the City was on a path to sustainability . She also expressed he r concern for an IT replacement fund . She said she was pleased to see the additiona l staffing where it was needed . All Council Members thanked the various staff members responsible for the work on th e budget presented to Council this date . ACTION : Motion by Council Members Ashbaugh/Carter to :Adopt Resolution No : 10377 (2012 Series) approving the 2011-13 Financial Plan Supplement and 2012-1 3 Budget .Roll Call vote : 5-0 . Motion Carried . ----------------------------------------------------------------------------------------------------------------- COUNCIL LIAISON REPORTS AND COMMUNICATION S Council Member Carter said he attended the Zone 9 Flood Control District meeting an d the League Employee Relations Committee meeting on Friday . Council Member Smith submitted her list of meetings attended . Council Member Ashbaugh reported several Council Members attended the Publi c Officials night on Thursday . C1-17 City Council Meeting Minutes Page 9 June 19, 201 2 Mayor Marx mentioned current openings on the Human Relations Commission advisor y body and an opening on the Mass Transportation Committee . ----------------------------------------------------------------------------------------------------------------- ADJOURNMEN T There being no further business to come before the City Council, Mayor Marx adjourne d the meeting at 9 :50 p .m . Sheryll Schroeder, MM C Interim City Cler k APPROVED BY COUNCIL : C1-18