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07-24-17 MINUTES OF A REGULAR MEETING OF THE CITY COUNCIL �F THE CITY QF ROLLING HII,LS, CALIFORNIA MONDAY,JULY 24, 2017 CALL TO ORDER A regular meeting of the City Council of the City of Ralling HiIls was called to order by Mayor Pro Tem Wilson at 7:00 p.m. in the City Council Chamber a� City Hall, 2 Portuguese Bend Road, Ralling Hilfs, California. ROLL CALL Councilmembers Present: Dieringer,Mirsch, Wilson and Mayar Black*, �rrivedat8:O5p.m. Councilmembers Absent: Councilmember Pieper(excused). Others Present: Ra.yanond R. Cruz, City Manager. Michael Jenkins, City Attomey. Terry Shea, Finance Director. Heidi Luce, City Clerk. Marcia Gold, 9 Flying Mane Raad. Clint Patterson, 22 Georgeff Road. 7i11 Smith, 10 Georgeff Road. Carla Routt, 1 Sou�hfield Drfve. Michelle Mottola, 7 Flying Mane Road. " Janet Leach, 5 Wideloap Road. Dennis Yu, PARS. OPEN AGENDA-PUBLIC COMMENT WELCOME None. CONSENT CALENDAR Matters which rnay be acted upon by the City Council in a single rnotian. Any Cou�cilmember may request removal of any item from the Consent Calendar causing it to be cansidered under Council Actions. A. Minutes -Regular Meeting of Ju�y 10,2017. RECOA�VI�NDATION: Approve as presented. B. Payment of Bills. RECONIlVI�NDATION: Apprave as presented. C. Financial Statement for the Month of June 2017. RECOA�V�NDATION: Approve as presented. D. Republic Services Recycling Tonnage Report for June 2017. RECONIlI�NDATION: Receive and fle. E. Approval of an agreement with Animal Pest Management Services, Inc. for up to $14,000 to provide coyote control services. RECOMMENDATION: Approve as presented. Mayor Pro Tem Wilson noted a typographical error on page three of the rninutes --in the last sentence o#' the first paragraph the word substantive is rnisspelled. Councilmember Mirsch moved that the City Council approve the items on the consent calendar as prese:nted with one correction to the minutes. Councilmember Dieringer seconded the motion,which carried withaut objection. C�NIlVIISSION ITEMS Nane. -1- PUBLIC HEARiNGS None. OLD BUSINESS None. Recognizing�hat there were several members of the community present with interest in the peafowl mai#er scheduled la#er on the agenda, Mayor Pro Tem Wilson stated that �the matter will be taken out of order. Hearing no objection,he so ordered. MATTERS FR�M STAFF DISCUSSION AND POSSIBLE DIRECTION TO REDUCE PEAFOWL POPULATION IN THE CITY OF ROLLING HILLS. Mayor Pro Tem Wilson introduced the item and asked for staff's comments. City Manager Cruz presented the staff report stating that this matter was agendized for discussion a�the request of the City Counci� after receiving an e-mail from resic�ents Bob and Maxcia Gold of Flying Mane Road expressing cancern regarding the increased peafowl population in their axea of the City and requesting that the City da something to reduce the peafowl population. He stated that severai other correspondence expressing similar cancern have been received recently and those carrespondence are included with the staff report. City Manager Cruz stated that the City has not historically done anything to con�ol peafow�, but vvhen staff receives complaints, residents are informed that they can contract with a licensed trapper to humanely trap the peafowl for relocatian. He fi�rther reviewed the peafowl managernent programs used by the Cities af Palos Verdes Estates, Rancho Palos Verdes and Rolling Hill Estates as well as the costs associated with thosE progra�ns. Discussion ensued concerning the other cites' programs and the associated costs. Mayor Pro Tem Wilson commented that his understanding is that the areas where there are excessive peafowl is the result of the peafow� being fed in that area. He inq�xired as to the legality of feeding wildlife. In response, City Attorney�enkins commented that he is not aware af a State law prohibiting the feeding of ALL wildlife, but it would be something that is within the City's police powers to control the feeding of wildlife. Further discussion ensued concerning the vendors used by the other cities for their peafowl trapping programs and the costs associated with those programs. In response to Co�cilinember Mirsch's inquiry, City Manager Cruz stated the Gold's have reported that they see up to 40 peafowl in the area near Flying Mane Road; and the City is receiving more complaints regaxding peafowl recently. Mayor Pro Tem Wilson called for public comment. The following residents addressed the City Council expressing concern regarding the excessive number of peafowl in the community, especially in the areas near Flying Mane Road, Crest Road East and Wideloap Road; and encouraging the City to do something to reduce the population: Marcia Gald, 9 Fly�ing Mane Road; Clint Patterson, 22 Geargeff Road; JiII Smith, 10 Georgeff Road; Carla Routt, 1 Southfieid Drive; Michelle Mottola, 7 Flying Mane Road; and Janet Leach, 5 Wideiaop Road. Foliowing public comment and discussian, Cauncilmember Dieringer moved that the City Council direct staff to provide further information regarding the following items: existing City ar State reg�lations prohibiting the feeding of peafowI or other wildlife; examples of regulations prohibiting �he feeding af peafowl or other wildlife frorn other cities; cost proposals/information from other organizations that provide peafowl trapping/relocation services including the trapper used by the City of Rancho Palos Verdes and services provided by Las Angeles County Department af Animal Care and Control. Councilmember Mirscl� seconded the motion which carried without objection. Consideration of this matter was continued to the August 14, 2017 meeting of the City Counci�. Minutes City Council Meeting 07-24-17 -2- x�w BusnvEss DISCUSSION AND CONSIDERATiON OF AUTHQRIZING PARTICIPATIQN IN PUBLIC AGENCY RETIREMENT SERVICES (PARS) POST-EMPLOYMENT BENEFITS TRUST PROGRAM TO BE ADMINI,STERED BY PARS AND U.S. BANK; APPOINTING THE CITY MANAGER AS THE CITY'S PLAN ADMINISTRA.TOR; AND AUTHORIZING TI� CITY MANAGER TO EXECUTE THE DOCUMENTS TO IlVIPLEMENT THE PROGRAM. AND CONSIDERATION OF RESOLUTI4N NO. 1214 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS, CALIFORNIA APPR�VING THE ADOPTION OF THE PUBLIC AGENCIES POST-EMPLOYMENT BENEFITS TRUST ADMINISTERED BY PUBLIC AGENCY RETIREMENT SERVICES {PARS}. Mayor Pro Tem Wilson intrpduced the item and asked for staffs comments. Finance DirEctor Shea stated that during the budget adoption process it was discussed that staff should research and come up with a hust mechanism to pre-fund $185,000 of the City's $370,000 unfunded pension liability recagnizing the fact that funds were budgeted for that purpose. He presented the staff report stating that staff identified an IYternal Revenue Code (IRC) Section 115 Trus� as a good mechanism for that purpose. He stated that contributions held in the trust are designated as iz�revocable, meaning they must be used to fund the City's retirement obligations and as such, the funds are tax-exempt. He further stated that out af the four firms researched, that offer an ]RC Section 115 Trust, staff recommends Public Agency Retirement Services (PARS) �or administration of the trust given their experience, history, competitive fee structure at 0.6°/a; and the �act that they are one af only two firms to have received a favarable Prtvate Letter Ruling (PLR) from the IRS for�heir Pension Rate Stabilization Program. Dennis Yu, Senior Vice President, PARS addressed the City Council to fixrther explain the PARS Pension Rate Stabilization Program and provide additional background on the organization. He sta.ted that far the total fee of O.fi%, there are three companies involved in administration of the program: {1) PARS who sets up the program and provxdes administration and compliatice s�rvices; {2) US Bank, the trustee that physically holds the assets; and (3) High Mark Capital Management(a wholly owned subsidiary af Union --- Bank) #he investment manager tasked to invest the funds based on the risk tolerance 1eve1 established by the City. Mayox Black arrived and took a seat at the dais, but Mayor Pra Tem continued to preside over the meeting. Discussion ensued cancerning the five investment stra�egy options available based on the City's risk tolerance, which range from conseivative to capita,l appreciation; and the S-year and 10-year returns earned with each of those options. Discussion ensued conceming the oversight for the investment program and the assurance the City has that its investments are protected. Further discussion ensued concerning risk tolerance and vaxious investrnent strategy options. Mr. Yu further commer�ted that in addition to selecting the investment strategy based on risk tolerance, the City can a�so choose to use either an active or passive investment management approach. Following discussion, Mayor Black suggested using the moderate investment strategy with th� passive investment manageme�.t appxoach utilizing index-based securities. The City Council concurred. Following further discussion, Councilmember Mirsch moved that the City Council adopt Resolution No. ]214 approving the adoption of the Public Agencies Post-Employment Benefits Trust administered by �, Public Agency Retirement Services (PARS} and direct staff to emplay the moderate investmer�t strategy utilizing index-based securi�ies. Mayor Black seconded the motion, which carried withou�objection. CONSIDERATION �F IENTERING INTO AN AGREEMENT WITH MULTI-BANK SECURITIES, INC. AND A CUSTODIAL ACCOUNT WITH PERSHING LLC. Mayor Pro Tem Wilson introduced the item and asked for sta.ffs comments. Finance Director Shea stated that in canformance with the City's inveshnent policy, staff began researching potenrial broker-dea�ers for purchasing investrnents like negotiable certificates of deposits and US Treasury Bonds in arder to provide another vehicle for purchasing those investments to increase the City's rate of return. He sta.ted that the Minutes City Council Meeting 07-24-17 -3- znvestments wi�1 all be under$250,000 and for a term less than two years per the City's investment palicy. He further reviewed the process for purchasing the CD's and stated that s�aff will continue to research and identify additional broker-deaiers but at tt�is time is recommending entering into an agreement with Multi- Bank Securities, inc and a custodial accaunt with Pershing, LLC. Following brief discussion, Councilmember Mirsch mo�ed that the City Council direct staff to execute the documents necessary to enter into an agreement with Multi-Bank Securities, Inc and a custodial account with Pershing LLC for investment services. CounciFmember Wilson seconded the motion, which carried without objection. MATTERS FROM THE CITY COUNCIL AND MEETING ATTENDANCE REPORTS Recognizing that this wil� be City Clerk Luce's las# City Council meeting, the City Council thanked her far her service to the City. MATTERS FROM STAFF D�SCUSSION AND POSSIBLE DIRECTION TO REDUCE PEAFOWL POPULATION IN THE CITY OF ROLLING HILLS. Taken out of order—see above. CLOSED SESSION None. ADJOURNMENT Heaxing na further business before the City Council, Mayor Pro Tem Wilson adjourned the meeting at 8:52 p.m. The next regular meeting of the City Cauncil is scheduled to be held on Monday, August �.4, 2017 beginning at 7:OQ �.m. in the City Council Charnber at City Hall, 2 Portuguese Bend Road, Rolling Hills, California. Prepared by: Heidi Luce, City Clerk Respectfully submitted, Yve all Interim City Clerk Approved, �� James Black, .D. Mayor Minutes City Council Meeting 07-24-17 -4-