10/24/2011 MINUTES OF �
A REGULAR MEETING
OF THE
' CITY COUNCIL OF THE
CITY OF ROLLING HII..LS, CALIFORNIA
MONDAY, OCTOBER 24, 2011
CALL TO ORDER
A regular meeting of the City Council of the City of Rolling Hills was called to order by Mayor Lay at
7:30 p.m. in the City Council Chambers at City Hall, 2 Portuguese Bend Road, Rolling Hills, California.
ROLL CALL
Councilmembers Present: Heinsheimer, Hill, Pernell, Mayor Pro Tem Black and Mayor Lay.
Councilmembers Absent: None.
Others Present: Anton Dahlerbruch, City Manager.
Michael Jenkins, City Attorney.
Heidi Luce, Deputy City Clerk.
Commander Ronene Anda, Los Angeles County Sheriff s Dept.
Sam Pena, Municipal Cities Liaison,Allied Waste.
Mary DiMatteo, Co-Chair,Peninsula Pool Capital Campaign.
CONSENT CALENDAR
Matters which may be acted upon by the City Council in a single motion. Any Councilmember
may request removal of any item from the Consent Calendar causing it to be considered under
Council Actions.
A. Minutes -Regular Meeting of October 10, 2011.
RECOMI��NDATION: Approve as presented.
B. Payment of Bills.
RECOMII�NDATION: Approve as presented.
C. Financial Statement for the Month of September, 2011.
RECOMI��NDATION: Approve as presented.
D. Allied Recycling Tonnage Report for August and September, 2011.
RECOMIV�NDATION: Receive and file.
E. Appropriation of $5,000 from the Community Facilities Fund toward the new Palos
Verdes Peninsula High School swimming pool.
RECOMI��NDATION: Approve as presented.
F. ORDINANCE NO. 325 - AN ORDINANCE OF THE CITY OF ROLLING HILLS
AMENDING CHAPTER 8.08 OF THE ROLLING HILLS MUNICIPAL CODE
RELATING TO THE COLLECTION OF ELECTRO1vIC WASTE AND
CONSTRUCTION AND DEMOLITION WASTE AND INSURANCE
REQUIlZEMENTS FOR SOLID WASTE HAULERS. Second reading and adoption.
RECONIlVIENDATION: Waive reading in full and adopt as presented.
City Manager Dahlerbruch stated that Check #22006 in the amount of$10,920.25 payable to Willdan
Associates was removed at Willdan's request due to a billing error.
Councilmember Heinsheimer moved that the City Council approve the items on the consent calendar.
Mayor Pro Tem Black seconded the motion, which carried without objection.
PRESENTATIONS
Recognition of Commander Ronene Anda, Los Angeles County Sheriff s Department
On behalf of the Rolling Hills City Council, Mayor Lay presented a Certificate of Commendation to
Commander Anda in recognition of her promotion and in appreciation of the service she provided to the
City during her tenure as Captain of the Lomita Station. Commander Anda thanked the City Council for
their support while she was Captain of the Lomita Station. �
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City Council Meeting
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COMMISSION ITEMS
None.
PUBLIC HEARINGS
None.
OLD BUSINESS
None.
NEW BUSINESS
CONSIDERATION OF CALIFORNIA EMPLOYER'S RETIlZEE BENEFIT TRUST
PROGRAM ("CERBT")AGREEMENT AND ELECTION OF CITY OF ROLLING HILLS TO
PREFUND OTHER POST EMPLOYMENT BENEFITS THROUGH CALPERS,
CERTIFICATION OF OPEB FUNDING POLICY & GASB 43/45 REPORTING
COMPLIANCE, AND DELEGATION OF AUTHORITY TO REQUEST DISBURSEMENTS.
Mayor Lay introduced the item and asked City Manager Dahlerbruch to present the staff report. City
Manager Dahlerbruch stated that before the City Council is a policy decision whether or not to eliminate
the City's unfunded liability for retiree health benefits, also known as OBEB, from the City's balance
sheet. He stated that if the City Council is interested in doing so, it would need to establish and fund an
irrevocable trust to cover the liability. He stated that based on previous direction from the
FinanceBudget Committee with concurrence of the City Council presented tonight for consideration is
an agreement with Ca1PERS for participation in the California Employer's Retiree Benefit Trust
(CERBT)program and a recommendation from staff to fund the program at 100% of the Actuarial's 30-
year cost estimate in the amount of$354,733. He stated that the actuarial estimate is based on using
Ca1PERS Investment Strategy 1, which is the most aggressive of their strategies and direction from the
City Council to use that strategy recognizing that over the long-term, investing in a higher percentage of
equities as compared to the City's current investment in Treasury Bills and CD's would be most
productive for the City's money. He commented that this investment strategy would only be used for
this situation and that all other reserves would remain in Treasury Bills and CD's. He stated that should
the City Council wish to fund the trust based on a different strategy, the amount needed to fund the trust
at 100% would increase. He then reviewed a summary of the options that are before the City Council
for consideration.
Finance Director Walker stated that the 2011 actuarial was done as a full actuarial compared to the 2009
actuarial that was done using the alternative method which is not a full, true actuarial. He stated that the
difference between the two is that the full actuarial takes a more specific look at the City's individual
employees. He stated that the full actuarial came in at $36,000 less than what was put in the Trust &
Agency Fund when it was funded based on the 2009 actuarial. Mayor Pro Tem Black asked what age
was used for life expectancy. Finance Director Walker stated that he would check with the company
that did the actuarial.
Discussion ensued about what to do with the excess $36,000 in funds. Finance Director stated that it
would be staffls recommendation to leave the excess funds in the Trust & Agency Fund until December
2012 and as the City Council reviews the budget for 2012/13, it can be considered whether to leave the
funds in the Trust & Agency or use the funds to cover retiree health costs or to supplement funding in
the CERBT should it fall below 100%.
Discussion ensued concerning the investment strategy proposed with Mayor Pro Tem Black
commenting that the Ca1PERS fund has lost money since inception in 2007. In response, Finance
Director Walker stated that the investment strategy is based on a long-term investment over a 30-year
horizon. Mayor Lay stated that equities see more fluctuation but historically perform better in the long
term. Further discussion ensued concerning the various investment strategies.
In response to Councilmember Pernell's inquiry as to who manages the fund, Finance Director Walker
stated that it is managed by Ca1PERS. Further discussion ensued concerning whether to fund the trust at
100% all at once or over time. Finance Director Walker commented that if it is determined to fund the
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City Council Meeting
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