MINUTES OF A REGULAR MEETING OF THE CYPRESS CITY COUNCIL HELD MARCH 12, 2012

A regular meeting of the Cypress City Council was called to order at 5:00 p.m. by Mayor Bailey in the Executive Board Room, 5275 Orange Avenue, Cypress, California.

Members present:
Mayor Doug Bailey
Mayor Pro Tem Prakash Narain
Council Member Phil Luebben
Council Member Leroy Mills
Council Member Todd Seymore

Staff present:
City Manager John Bahorski
City Attorney William Wynder
Assistant City Manager/Director of Finance and Administrative Services Richard Storey
Director of Community Development Ted Commerdinger
Police Lieutenant Rodney Cox
Public Works Director Doug Dancs
Recreation and Community Services Director June Liu
Assistant Director of Finance & Administrative Services Matt Burton
Assistant City Engineer Kamran Dadbeh
Public Works Superintendent Bobby Blackburn
Recreation Superintendent Dena Diggins
Human Resources Manager Cathy Thompson
Recreation Supervisor Shelly Myers
Administrative Services Manager Andrew Tse
City Clerk Denise Basham

ORAL COMMUNICATIONS:

None.

WORKSHOP SESSION:

The City Manager informed that the City Council would be having a workshop regarding the Public Agency Retirement Services (PARS) Supplemental Retirement Plan (SRP).  He indicated that this plan would be more flexible than the Public Employees’ Retirement System (PERS) and that it would assist with accelerating attrition in an effort to rightsizing the City due to the recent abolishment of the Redevelopment Agency and the economic recovery. 

Mitch Barker, Executive Vice President, PARS, provided a brief overview of PARS indicating that it was established in 1983 and that there are 600+ member agencies.  He stated that clients include cities, special districts, and school districts. 

Mr. Barker stated that eligible employees must be at least 50 years old with at least five years of service and that savings are achieved by replacing the senior employee with a lower paid employee or non-replacement of the employee.  He commented that the desire is for the retirements to reduce the need for layoffs. 

Mr. Barker reviewed the process and steps for the supplemental retirement plan which includes a fiscal analysis and a timeline.  He indicated that the City Council should offer the plan contingent upon meeting fiscal and operational objectives, and that there would be a 45-day evaluation period. 

Council Member Luebben asked for clarification on the age and service year requirements, and asked if there are guidelines based on employees’ classification and level of responsibilities. 

Mr. Barker reiterated that employees must be at least 50 years old with at least five years of service and stated that the guidelines could be based on the employees’ classification or bargaining group, not as an individual. 

Mr. Barker indicated that there would be a review and post fiscal analysis with recommendations to the City.  He stated that the City would have the ability to cancel the process should the results not meet the City’s fiscal and operational objectives. 

Mayor Bailey asked about the cost to the City. 

Mr. Barker indicated that there is no cost to a pre-analysis, however, the cost to the City would be $5,000 if the City goes through with the process but cancels before implementation. 

Council Member Luebben reiterated that individual employees could not be targeted and that special attention should be given as not to discriminate against any employee.

Dennis Yu, Senior Vice President, PARS, stated that every effort would be made to not discriminate against any employee and that it is advised that the City exclude vital classifications in the initial process. 

Mayor Pro Tem Narain asked about the type of experience that was achieved with other organizations. 

Mr. Barker responded that the take rate is on average 25% based on variable factors and that the PERS formula provides a great influence. 

Mayor Pro Tem Narain inquired as to the possibility of PARS going bankrupt. 

Mr. Barker responded that PARS is a trust administrator for the program and that another company could be hired should PARS cease to exist.  He informed that PARS is a protected asset and that the City controls the investment. 

Mr. Yu reviewed the PARS analysis methodology which would include retirement health care cost, retirement incentive cost, current natural attrition, and future loss in natural attrition. 

Mr. Yu indicated that the benefit level is 7% of the employee’s final pay and that there would be a variety of payout options to choose from.  He stated that there is a lump sum option and that 80%-90% of participants choose Option 5 which is a fixed term. 

Mr. Barker stated that once the 45-day review period has ended, plan quotes would be provided to the City for consideration on whether or not to proceed with offering the program.  He indicated that all of the options are annuitizeable.  

Mr. Yu reviewed eligibility requirement guidelines that include an allowance to exclude designated employees such as the City Manager.  He commented that the employee must resign and retire from PERS and PARS concurrently. 

Mayor Pro Tem Narain asked the City Attorney for clarification on employee resignation and retirement. 

The City Attorney responded that both a resignation and retirement would be necessary.

Mr. Yu provided a summary of the proposed plan design with a projection that there would be nine retirements from the Miscellaneous CEA & MEA employee groups and three retirements from the Miscellaneous Executive & Mid-Management employee group. 

Mr. Yu reviewed the proposed summary of savings to the City assuming 12 retirements and commented that the best case scenario would be zero replacement of positions with a projected savings of approximately $4.3 million. 

The City Manager stated that potential savings would include new hires paying for 3% of PERS costs. 

Mr. Barker stated that the realistic goal should be 50% employee replacement. 

Mr. Yu provided a summary for varying retirement scenarios for management and non-management employees. 

Mr. Barker reviewed a proposed timeline indicating that it would be approximately four months from the inception to the conclusion of the program.  He stated that individual benefit packets would be sent to eligible employees, and that PARS would hold an orientation meeting and provide individual counseling.  He indicated that the City would have the opportunity to decide on approval or recession of the plan based on enrollment. 

Council Member Seymore clarified that the best case scenario is Option 5 with a 3% rate of return over five years at which time it would be fully funded. 

Mr. Yu stated that there would be an annuity option. 

Mr. Barker commented that most organizations annuitize and not self-fund. 

It was the consensus of the City Council to move forward with this program at the March 26, 2012 City Council meeting. 

Council Member Seymore asked the City Manager about projections on classification replacements. 

The City Manager responded that it is the desire of the City to backfill as few positions as possible in order to maximize the savings to the City.

Council Member Luebben asked if the City would be subject to another $5,000 fee should this program be offered again in the future. 

Mr. Barker responded that the terms of the plan could be modified. 

CLOSED SESSION:

The City Attorney reported that the City Council would be meeting in Closed Session regarding Conference with Legal Counsel – Existing Litigation, pursuant to Government Code Section 54956.9(a), Cypress School District v. City of Cypress, Case Number 30-2011-00522871, Orange County Superior Court. 

The City Attorney reported that the City Council would be meeting in Closed Session regarding Conference with Real Property Negotiators, pursuant to Government Code Section 54956.8), Real Property Identified by APN Number 242-332-01, Located at 4545 Myra Avenue, Negotiating Party: City Manager and Director of Community Development, Under Negotiation: Price and Terms of Payment. 

At 6:05 p.m., the Mayor recessed the meeting.

7:00 P.M. SESSION:

The 7:00 p.m. session of the City Council meeting was called to order at 7:00 p.m. by Mayor Bailey.

Members present:
Mayor Doug Bailey
Mayor Pro Tem Prakash Narain
Council Member Phil Luebben
Council Member Leroy Mills
Council Member Todd Seymore

Staff present:
City Manager John Bahorski
City Attorney William Wynder
Assistant City Attorney Lindsay Tabaian
Assistant City Manager/Director of Finance and Administrative Services Richard Storey
Director of Community Development Ted Commerdinger
Police Lieutenant Rodney Cox
Public Works Director Doug Dancs
Recreation and Community Services Director June Liu
Assistant Director of Finance & Administrative Services Matt Burton
Assistant City Engineer Kamran Dadbeh
Administrative Services Manager Andrew Tse
City Clerk Denise Basham

PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was led by Camp Fire USA.

INVOCATION:  The invocation was given by City Attorney Wynder.

REPORT OF WORKSHOP AGENDA/CLOSED SESSION:

The Mayor asked for the report of the Workshop Session items discussed earlier in the evening. 

The City Manager stated that the City Council held a workshop regarding the PARS Supplemental Retirement Program and that background materials are available in the City Clerk’s Office.

The Mayor asked for the report of the Closed Session Agenda items discussed earlier in the evening.

The City Attorney reported that the City Council met in Closed Session regarding Conference with Legal Counsel – Existing Litigation, pursuant to Government Code Section 54956.9(a), Cypress School District v. City of Cypress, Case Number 30-2011-00522871, Orange County Superior Court.  He stated that a privileged and confidential briefing was provided and a litigation strategy was discussed.

The City Attorney reported that the City Council met in Closed Session regarding Conference with Real Property Negotiators, pursuant to Government Code Section 54956.8), Real Property Identified by APN Number 242-332-01, Located at 4545 Myra Avenue, Negotiating Party: City Manager and Director of Community Development, Under Negotiation: Price and Terms of Payment.  He stated that a privileged and confidential briefing was provided on the steps that are part of the negotiating process and that no reportable action was taken or solicited.

No other action was taken in Closed Session, nor was any solicited.

ORAL COMMUNICATIONS:        LIMITED TO ONE-HALF HOUR.  (THREE MINUTES PER SPEAKER, SPEAKING ONCE.)

Mayor Bailey asked anyone who wished to speak on any topic not included on the meeting Agenda to come forward.

Mariellen Yarc, Cypress Chamber of Commerce, spoke regarding upcoming activities and events.  She thanked Council Members Mills and Seymore and staff for their attendance at the Woman’s Club of Cypress’ Tea.

The following spoke regarding Agenda Item No. 3:

Frank Lindsay
Elise Lindsay
Jeffrey McBride, Laguna Beach
Janice Bellucci, Los Angeles

The City Attorney stated that correspondence has been received from apartment owners and hotel/motel owners associations, and that the issues are worth having some further dialogue.  He stated that the City Attorney’s office is requesting that staff defer Agenda Item No. 3 while further discussions are held.

PUBLIC HEARINGS:    7:00 P.M. (PUBLIC COMMENTS RESTRICTED TO TEN MINUTES PER SPEAKER, UNLESS EXTENDED BY THE CITY COUNCIL).

No items.

CONSENT CALENDAR:

All matters listed on the Agenda under “Consent Calendar” are to be considered by the City Council to be routine and will be enacted by one motion approving the recommendations listed on the Agenda.

The City Attorney requested Agenda Item No. 3 be pulled from the Consent Calendar.

It was moved by Council Member Mills and seconded by Mayor Pro Tem Narain, to approve Consent Calendar Items No. 1, 2, and 4 through 10.

The motion was unanimously carried by the following roll call vote:

AYES:        5    COUNCIL MEMBERS:   Luebben, Mills, Seymore, Narain and Bailey
NOES:        0    COUNCIL MEMBERS:   None
ABSENT:    0    COUNCIL MEMBERS:   None

Item No. 1:   APPROVAL OF CITY COUNCIL MINUTES OF THE MEETING OF FEBRUARY 27, 2012.

Recommendation:   That the City Council approve the Minutes of the Meeting of February 27, 2012, as submitted.

Item No. 2:   MOTION TO INTRODUCE AND/OR ADOPT ALL ORDINANCES AND RESOLUTIONS PRESENTED FOR CONSIDERATION BY TITLE ONLY AND TO WAIVE FURTHER READING.

Item No. 4:   DESIGN REVIEW COMMITTEE PERMIT NO. 2012-01, A REQUEST TO CONSTRUCT A PRE-FABRICATED METAL OFFICE BUILDING LOCATED AT 5300 CYPRESS STREET IN THE PC PLANNED COMMUNITY ZONE.

Recommendation:   That the City Council adopt the Resolution by title only, approving Design Review Committee Permit No. 2012-01, subject to the conditions in Exhibit “A” of the Resolution.

RESOLUTION NO. 6293

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS,
APPROVING DESIGN REVIEW COMMITTEE PERMIT NO. 2012-01
- WITH CONDITIONS.

Item No. 5:   ACCEPTANCE OF SEWER REHABILITATION ON WATSON STREET, DE LONG STREET, AND CRESCENT AVENUE, PUBLIC WORKS PROJECT NO. 2009-13.

Recommendation:   That the City Council: 1) Accept Sewer Rehabilitation on Watson Street, DeLong Street, and Crescent Avenue, Public Works Project No. 2009-13, as being satisfactorily completed in conformance with the project specifications, in the final amount of $380,417.30; and 2) Authorize the City Clerk to release the Labor and Materials Bond and Faithful Performance Bond upon expiration of the required lien period, if no claims or objections have been filed, upon concurrence of the Director of Public Works.

Item No. 6:   AUTHORIZE AN INCREASE IN ESTIMATED REVENUES AND APPROPRIATION OF FUNDS DUE TO RECEIPT OF GRANTS FROM THE ORANGE COUNTY TRANSPORTATION AUTHORITY.

Recommendation:   That the City Council: 1) Authorize an increase in Estimated Revenues by $27,398 in Account No. 234-99999.3525 (Other Grants) for the receipt of Arterial Capacity Enhancement (ACE) funds from the Orange County Transportation Authority (OCTA); and 2) Authorize the appropriation of ACE funds received from OCTA in the amount of $27,398 to Account No. 234-80100-8013.4186, for design services of the Cerritos Avenue Widening; and 3) Authorize an increase in Estimated Revenues by $99,167 in Account No. 261-99999.3525 (Other Grants) for the receipt of Environmental Cleanup Program (ECP) funds from OCTA; and 4) Authorize the appropriation of ECP funds received from OCTA in the amount of $99,167 to Account No. 261-80300-8032.4186, for City-wide installation of automatic retractable screens (ARS).

Item No. 7:   AWARD OF CONSTRUCTION CONTRACT AND APPROVAL OF TASK ORDER FOR CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES FOR THE TRAFFIC SIGNAL INSTALLATION AT THE INERSECTION OF LINCOLN AVENUE AND SUMNER PLACE, PUBLIC WORKS PROJECT NO. 2011-10.

Recommendation:   That the City Council: 1) Award a construction contract for Traffic Signal Installation at the Intersection of Lincoln Avenue and Sumner Place, Public Works Project No. 2011-10, to the lowest responsible bidder, Macadee Electrical Construction, Inc., Chino, California, in the amount of $99,960; and authorize a contingency of $14,994 (15% of Bid Amount); and direct the Director of Public Works/City Engineer to issue any necessary change orders to complete additional work within budgetary authority; and 2) Approve a Task Order for Construction Management and Inspection Services, in the amount of $16,689 within the agreement for On-Call Construction Management/Inspection/Engineering Services, for the Traffic Signal Installation at the Intersection of Lincoln Avenue and Sumner Place, Public Works Project No. 2011-10, to Jacobs Field Services North America, Inc. (Jacobs); authorize a contingency of $2,503 (15% of contract amount) to be used for unforeseen work; and direct the Director of Public Works/City Engineer to act as Contract Officer.

Item No. 8:   ACCEPTANCE OF THE AUDIT LETTER TO THE CITY COUNCIL FOR THE FISCAL YEAR ENDED JUNE 30, 2011.

Recommendation:   That the City Council receive and file the Auditor’s Letter to City Council.

Item No. 9:   ACCEPTANCE OF THE SINGLE AUDIT REPORT OF THE CITY OF CYPRESS FOR THE FISCAL YEAR ENDED JUNE 30, 2011.

Recommendation:   That the City Council receive and file the Single Audit Report of the City of Cypress for the Fiscal Year Ended June 30, 2011.

Item No. 10:  APPROVAL OF COMMERCIAL WARRANT LIST AND WIRE TRANSFERS FOR FISCAL YEAR 2011-12 FOR WARRANTS NO. 21135 THROUGH 21279.

Recommendation:   That the City Council approve the attached warrant register and wire transfers for Fiscal Year 2011-12.

Regarding Item No. 3:  SECOND READING OF AN ORDINANCE ADDING A NEW CHAPTER 17-74 TO THE CYPRESS MUNICIPAL CODE, THE SAME TO BE ENTITLED “REGISTERED SEX OFFENDER RESTRICTIONS,” the City Attorney stated that there is value in looking at the provisions from the apartment owners and hotel/motel owners perspective which may result in revisions.  He stated that there would be value in continuing the item in light of the Chief of Police not being present tonight. 

Mayor Bailey asked if the Code could be revised if this item is approved tonight. 

The City Attorney responded in the affirmative. 

Mayor Bailey stated his concerns should the item not be passed. 

The Assistant City Attorney stated that homeowners would be allowed to remain where they are and that renters and motel/hotel tenants would be allowed to fulfill the remainder of the lease.  She indicated that hotel/motel allowance would be enforced through an amortization period over a series of months. 

Mayor Pro Tem Narain asked if the Ordinance was based on the County Ordinance.

The City Manager responded in the affirmative and stated that the City’s Ordinance is based on an Ordinance from the District Attorney’s Office. 

The Assistant City Attorney indicated that there are State laws that prohibit apartment lessors and hotel/motel owners to ask somewhere whether or not they are a registrant. 

Mayor Bailey asked for clarification on whether or not a registered sex offender has to report to the Police Department.

The Assistant City Attorney responded in the affirmative.  She indicated that she would like to include an option for apartment lessors and hotel/motel owners to not be subject to the ordinance. 

It was moved by Council Member Luebben and seconded by Mayor Bailey, that the City Council adopt the Ordinance by title only, adding a new Chapter 17-74 to the Cypress Municipal Code, the same to be entitled “Registered Sex Offender Restrictions.”

The motion was unanimously carried by the following roll call vote:

AYES:        5    COUNCIL MEMBERS:   Luebben, Mills, Seymore, Narain and Bailey
NOES:        0    COUNCIL MEMBERS:   None
ABSENT:    0    COUNCIL MEMBERS:   None

ORDINANCE NO. 1132

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CYPRESS, CALIFORNIA, ENACTING CHAPTER 17-74 OF THE CYPRESS
MUNICIPAL CODE, THE SAME TO BE TITLED “REGISTERED
SEX OFFENDER RESTRICTIONS” ORDINANCE.

END OF CONSENT CALENDAR

NEW BUSINESS:

No items.

RECREATION & PARK DISTRICT MATTERS:  The Cypress City Council, Acting as the Ex Officio Governing Board of Directors.

No items.

SUCCESSOR AGENCY TO THE CYPRESS REDEVELOPMENT AGENCY MATTERSThe Cypress City Council, Acting as the Successor Agency to the Cypress Redevelopment Agency.

No items. 

ORAL COMMUNICATIONS:  For Matters Not on the Agenda.

Robert Skiles spoke regarding the PARS workshop held earlier.

ITEMS FROM CITY COUNCIL MEMBERS:

Mayor Bailey requested reports from the Council Members on their respective committee assignments.

Council Member Luebben:

Attended Cypress Recreation and Park District youth basketball league games at Lexington Junior High School.  Attended a SCAG Audit Committee meeting.

Mayor Pro Tem Narain:

Attended the ribbon cutting and grand opening for Creston Electronics.

Council Member Seymore:

Attended the Cypress Chamber of Commerce Student Mentoring breakfast.  Attended  the ACC-OC monthly meeting.  Attended the inaugural opening day ceremony for the Cypress youth baseball league.  Attended the Woman’s Club of Cypress’ tea.

Council Member Mills:

Participated in a SCAG audit review.  Attended a SCAG Joint Policy and Regional Council meeting.  Attended an ACC-OC Legislative Committee meeting.  Met with Alex Kim and Paul Simonds regarding Southern California Gas Company smart meters. Attended the Cypress Chamber of Commerce Student Mentoring breakfast.  Attended the 25th Annual Law Enforcement and Prosecutor Recognition luncheon.  Attended an OCCOG EMC meeting.  Attended the Woman’s Club of Cypress’ tea.  Attended an O.C. Transportation Authority meeting.  Spoke regarding the Senior Citizens Commission recognizing Howard’s Coffee Shop for donating Thanksgiving dinners to homebound seniors.  Stated that a national disaster exercise will be held at the Joint Forces Training Base this week.

Mayor Bailey:

Taped an interview with Time Warner Cable regarding the City.  Attended a Public Utilities Commission public hearing on the proposed water rate increases by Golden State Water Company.  Attended the inaugural opening day ceremony for the Cypress youth baseball league.  Stated that the Rotary Club of Cypress will be holding its annual spaghetti dinner fundraiser on March 24, 2012 at the Cypress Senior Citizens Center.

Council Member Luebben commented on Golden State Water Company’s use of regionalization and how it is applied in regard to the City of Cypress to offset rates in other cities such as Barstow and Victorville.

ITEMS FROM CITY MANAGER: 

No items.

ADJOURNMENT: Mayor Bailey adjourned the meeting at 7:58 p.m. to Monday, March 26, 2012, beginning at 5:30 p.m. in the Executive Board Room.

_______________________________
MAYOR OF THE CITY OF CYPRESS

ATTEST:

___________________________________
CITY CLERK OF THE CITY OF CYPRESS

City of Cypress Department of Administration ~ 5275 Orange Avenue ~ Cypress, CA 90630 ~ 714-229-6780