HomeMy WebLinkAbout02/26/2013 - City Council Adjourned Meeting - City Council Special Meeting - City Council Study SessionMINUTES OF THE ADJOURNED MEETING/SPECIAL STUDY SESSION OF THE
COSTA MESA CITY COUNCIL AGENCY
February 26, 2013
CALL TO ORDER
The meeting was called to order by the Mayor at 6:00 p.m. in the Council Chambers at
Costa Mesa City Hall, 77 Fair Drive, Costa Mesa, California.
ROLL CALL
Present: Mayor Righeimer, Mayor Pro Tem Mensinger, Council Member Genis, and
Council Member Leece
Absent: Council Member Monahan
Officials Present: Chief Executive Officer Thomas R. Hatch, City Attorney Thomas
Duarte, Assistant CEO Rick Francis, Finance and I.T. Director Bobby Young, and City
Clerk Brenda Green.
PUBLIC COMMENTS (00:00:46)
Jeff Arthur, Costa Mesa, presented an article from the Wall Street Journal regarding
pensions. (00:00:55)
Perry Valantine, Costa Mesa, spoke about the pension report, and expressed concern
that a PERS representative was not at the meeting. (00:02:08)
REVIEW OF UNFUNDED PUBLIC PENSION AND RETIREE HEALTH CARE
LIABILITIES BY JOE NATION. (00:04:34)
Council Member Leece requested concerns be addressed regarding the absence of
Kerry Worgan, CalPERS actuary, from the meeting. (00:04:39)
CEO Hatch noted Mr. Worgan's presentation to the Association of California Cities is on
the City's website; indicated that Mr. Worgan was unable to attend; and provided
background information on Professor Joe Nation. (00:05:54)
Introduction by Finance and I.T. Director Bobby Young. (00:11:14)
Presentation by Professor Joe Nation, Stanford Institute for Economic Policy Research.
(00:25:28)
Discussion ensued regarding the pension model for the City of San Jose; counties and
cities working together; reducing service levels and prepayment to CalPERS; funded
ratios and market value; comparing private sector to public sector pension systems;
Adjourned Meeting/Special Study Session — February 26, 2013 - Page 1
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retiree medical benefits; parcel tax; life expectancy; survivorship rights; and
sustainability of the pension system. (01:39:11)
City Council recessed for a break at 8:30 p.m.
City Council reconvened the meeting at 8:40 p.m.
PRESENTATION ON FISCAL EFFECT OF 2.5%@55 PERS ENHANCEMENT
(02:28:31)
Staff report by Finance and I.T. Director Bobby Young. (02:28:36)
Discussion ensued regarding net impact of the change in the unfunded liability; inflated
pension; retirement incentives; past negotiations; a second tier retirement plan; and the
retirement process. (02:37:44)
COUNCIL MEMBERS' REPORTS, COMMENTS, AND SUGGESTIONS - NONE
The Mayor adjourned the meeting at 8:58 p.m.
Stephen M. Mensinger, Mayor
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Brenda Green,
�r Clerk
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