10/10/2011 insurance requirements. City Manager Dahlerbruch stated that notice of the public hearing was sent to
the current permit holders and one phone call was received from a permittee who suggested that the City
consider a process similar to neighboring cities where the general contractor is required to put up a bond
for the project that would not be released until the hanling contractor proves the diversion requirements
have been met. Following staff's presentation, Mayor Lay opened the public hearing and called for
public testimony. Hearing none, he closed the public hearing. Following brief discussion,
Councilmember Heinsheimer moved that the City Council introduce Ordinance No. 325 for first reading
and waive full reading of the Ordinance. Mayor Pro Tem Black seconded the motion which carried
without objection. Second reading and adoption was scheduled for the next regular meeting of the City
Council.
OLD BUSINESS
None.
NEW BUSINESS
RESOLUTION NO. 1115 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ROLLING HILLS, CALIFORNIA, ADOPTING THE 2011 CITYWIDE ENGINEERING AND
TRAFFIC SURVEY FOR STREETS SPECIFIED THEREIN.
Mayor Lay introduced Resolution No. 1115 adopting the 2011 Citywide Engineering and Traffic Survey
and stated that it is recommended for adoption with no changes to the speed limits. Mayor Pro Tem
Black moved that the City Council adopt Resolution No. 1115. Councilmember Heinsheimer seconded
the motion which carried without objection.
CONSIDERATION OF BID REJECTION FOR CITY HALL CAMPUS PARKING LOT
SLURRY SEAL IN THE CITY OF ROLLING HILLS.
Mayor Lay stated that before the City Council for consideration is rejection of the bid for the City Hall
campus parking lot slurry seal project. Councilmember Heinsheimer moved that the City Council reject
the one and only bid received for the City Hall Campus Parking Lot Slurry Seal project. Mayor Pro
Tem Black seconded the motion which carried without objection. Staff was directed to proceed with
rebidding the project.
MATTERS FROM MEMBERS OF THE CITY COUNCIL
Mayor Lay reported that the Los Angeles County Board of Supervisors voted 4-1 to modify the district
lines slightly per the proposed plan supported by Supervisor Knabe.
Mayor Lay also commented on the proposed County Ordinance for a Water Quality Parcel Fee that was
provided to the City Council in the weekly packet. He stated that the cities of Rancho Palos Verdes and
Palos Verdes Estates are sending comments on the proposed ordinance and asked if there was any
interest in submitting comments on behalf of Rolling Hills. No interest was indicated.
MATTERS FROM STAFF
None.
MATTERS FROM THE CITY ATTORNEY
CLOSED SESSION
The City Council finds, based on advice from legal counsel, that discussion in open session will
prejudice the position of the local agency in the litigation.
No closed session was held.
ADJOURNMENT
Hearing no further business before the City Council, Mayor Lay adjourned the meeting at 8:03 p.m in
memory of long time residents Mrs. Mary Chase, Dr. John Eugene, and Mrs. Louise Zimmerman. The
next Regular meeting of the City Council is scheduled to be held on Monday, October 24, 2011
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be innin at 7:30 .m. in the City Council Chambers at City Hall, 2 Portuguese Bend Road, Rollin 'I
g g P g
Hills, California. ��
Respectfully submitted,
Heidi Luce
Deputy City Clerk
Approved,
.,
�, �� -
B. Allen ay
Mayor
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MINUTES OF
A REGULAR MEETING
OF THE
CITY COUNCIL OF THE
CITY OF ROLLING HILLS, CALIFO1tNIA
MONDAY, OCTOBER 10, 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.
RECOMNIENDATION: Approve as presented.
C. Financial Statement for the Month of September, 2011.
RECONIlV�NDATION: Approve as presented.
D. Allied Recycling Tonnage Report for August and September, 2011.
RECOMI��NDATION: Receive and file.
E. Appropriation of $5,000 from the Community Facilities Fund toward the new Palos
Verdes Peninsula High School swimming pool.
RECONIlVIENDATION: 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 ELECTROIVIC WASTE AND
CONSTRUCTION AND DEMOLITION WASTE AND INSURANCE
REQUIItEMENTS FOR SOLID WASTE HAULERS. Second reading and adoption.
RECOIVIlV�NDATION: 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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COMIVIISSION ITEMS
None.
PUBLIC HEARINGS
None.
OLD BUSINESS
None.
NEW BUSINESS
CONSIDERATION OF CALIFORNIA EMPLOYER'S RETIREE 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 hust 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 CaIPERS 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 l, 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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irrevocable trust at 100%, the Fund Balance Policy will need to be updated to reflec�that the funds will
be placed in an irrevocable trust through Ca1PERS California Employer's Retiree Benefit Trust
(CERBT). Councilmember Heinsheimer reminded the City Council that this decision affects only a
small percentage of the City's money and that this,is a very solid, reasonable, prudent thing to do.
Mayor Pro Tem Black stated that he is not in favor of funding the trust at 100% all at once and he would
be more in favor of putting it in over time. In response to Concilmember Pernell's inquiry as to the
options for funding the trust over time, Finance Director Walker stated that the option is to make four
installments of$88,750 in November, January, March and June.
Following brief discussion, Councilmember Pernell moved that the City Council approve the agreement
for the City's participation in the Ca1PERS California Employeer's Retiree Benefit Trust (CERBT) as
presented with funding immediately at 100% of the City's actuarial estimate based on Investment
Strategy 1 and authorize the Mayor to sign the agreement and delegation of authority form.
Councilmember Heinsheimer seconded the motion, which carried with Mayor Pro Tem Black in
opposition. The City Council further directed staff to hold the balance of the funds in the Trust &
Agency fund for future use should the CERBT become underfunded and update the Fund Balance
Policy.
OPEN AGENDA-APPROXIMATELY 8:00 P.M. -PUBLIC COlVIlVIENT WELCOME
None.
MATTERS FROM MEMBERS OF THE CITY COUNCIL
Councilmember Pernell stated that he and City Manager Dahlerbruch will be attending the CJPIA Risk
Management Conference at the end of the week.
Mayor Lay stated that he is unable to attend the Educator of the Year event and asked if any other
member of the City Council are interested in attending. Mayor Pro Tem Black stated that he would like
to attend and will check his calendar and confirm with staff whether or not he is able to.
MATTERS FROM STAFF
QUARTERLY SCHEDULE OF INVESTMENTS REPORT FOR THE QUARTER ENDING
SEPTEMBER 30, 2011.
Finance Director Walker presented the Quarterly Schedule of Investments report for the quarter ending
September 30, 2011. He stated that compared to the last quarter of the previous fiscal year, the
investments are flat but compared to the same quarter in the previous fiscal year, investment income is
up $3,000. No action was taken.
DISUCSSION REGARDING THE USE OF BULLETIN BOARDS FOR PUBLIC NOTICING.
City Manager Dahlerbruch stated that the report proposes the concept of using bulletin boards in the
City rather than advertising public hearings and legal notices in the newspaper. He stated that as a staff
recommendation, it would seem more Rolling Hills centric as well as cost less over time to use bulleting
boards. He stated that there are cons to the use of bulletin boards as well as pros to staying with the
newspaper. He stated that staff is not asking for approval, but seeking direction as to the City Council's
interest in pursuing this concept. He stated that if the concept is supported, a modification to the Zoning
Code would be necessary which would require public hearings before the Planning Commission.
Deputy City Clerk Luce reviewed the cost associated with publishing the public notices and purchasing
bulleting boards stating that overall there would be a cost saving with bulletin boards. She further review
options for possible locations for placement of the bulletin boards.
Discussion ensued concerning the staff time required to service the bulleting boards, maintenance cost
and the option of posting notices on the City's web site alternative. City Attorney Jenkins stated that
posting notices on the City's web site would not meet the legal obligation. Following discussion, the
City Council concurred to continue with publishing the City's notices. No action was taken. Staff was
directed to pursue putting some sort of notice in the newsletter regarding notices published in the
newspaper.
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1VIATTERS FROM THE CITY ATTORNEY
CLOSED SESSION
The City Council finds, based on advice from legal counsel, that discussion in open session will
prejudice the position of the local agency in the litigation.
No closed session was held.
ADJOURNMENT
Hearing no further business before the City Council, Mayor Lay adjourned the meeting at 8:17 p.m. in
memory of long time resident, Jack Davidson — the epitome of "Mr. Rolling Hills" — who's view,
efforts, energy and enthusiasm helped shape the community. The next regular meeting of the City
Council is scheduled to be held on Monday, November 14, 2011 beginning at 7:30 p.m. in the City
Council Chambers at City Hall, 2 Portuguese Bend Road, Rolling Hills, California.
Respectfully submitted,
Heidi Luce
Deputy City Clerk
Approved,
B. Allen Lay
Mayor
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