City Council Meeting - January 25, 2011

The meeting began with Mayor Herb Weiner inquiring about public comments on an item related to the Sausalito Yard Harbor, but clarified it was not for closed session ▶ 📄. The city clerk, Debbie, conducted a roll call for council members Pfeiffer, Vice Mayor Kelly, Council Member Ford, and Mayor Weiner, all of whom were present ▶ 📄. Following this, the council adjourned to a closed session ▶ 📄.

The meeting was called to order by Herb Weiner at 7:00 PM. The City Clerk, Debbie, conducted roll call for councilmembers: Pfeiffer (present), Leon (present), Vice Mayor Kelly (present), Ford (present), and Mayor Weiner (present). ▶ 📄 The mayor noted a closed session discussion earlier regarding the Sausalito Yard Harbor bulkhead item (D1). ▶ 📄 Public comment was invited on the closed session, but no comments were made.

The meeting opened with Herb Weiner leading the pledge of allegiance, but no specific presentation, discussion, or public comments regarding closed session items were recorded in the provided transcript segment.

The Pledge of Allegiance was recited by Herb Weiner and Mary Wagner, with some interruptions and corrections. Herb Weiner led the pledge, and Mary Wagner joined in. The recitation included the phrase 'under God, indivisible, with liberty and justice for all.' After the pledge, Herb Weiner thanked participants and moved to approve the agenda ▶ 📄.

The item was introduced with a motion for approval by Jonathan Leone at ▶ 📄, seconded by Herb Weiner. Herb Weiner then called for a vote, and the agenda was approved without further discussion.

The item was introduced by Herb Weiner, who asked if there were any communications or comments from the public or councilmembers. No one responded, indicating no communications were presented. The item was quickly concluded to move on to the next agenda item. ▶ 📄

Herb Weiner initiated a ceremony for approval of the minutes, followed by Linda Pfeifer's second. The council voted unanimously in favor with no opposition noted ▶ 📄.

The consent calendar originally had items, but Council Member Pfeiffer pulled item 4A for separate discussion ▶ 📄. The remaining item was clarified by City Manager Jonathon Goldman not to be an award of contract for the 1B sewer priority project, but a status update due to pending funding from the State Revolving Fund ▶ 📄. Council Member Leone inquired about bid validity, and Goldman explained bids are good for 120 days and expressed optimism for securing funding within that period ▶ 📄. No action was taken on the sewer project item.

Administrative Services Director Charlie Francis introduced the item, explaining the purpose was to study the CalPERS 2009 actuarial report and understand pension funding, with no action requested. Actuary John Bartel presented highlights: CalPERS had a -24% investment return in 2009 (actuarially a 32% loss vs. assumed 7.75%), followed by +13.3% in 2010, but recovery will take many years. Losses will lead to higher contribution rates, mitigated short-term by CalPERS rate smoothing but increasing long-term. CalPERS is considering lowering the investment return assumption to 7.5%, which would raise rates. Contribution rates as a percentage of pay are projected to rise: miscellaneous from 15.6% to 19-24% by 2016-17; police from 38.5% to 46-53%; fire from 31.5% to 39-46%, depending on investment returns. ▶ 📄 Councilmember Carolyn Ford asked when the bulk of expenses would hit Sausalito; Bartel indicated it's uncertain, depending on future returns, but rates will increase significantly. ▶ 📄 Councilmember Linda Pfeifer expressed concern about smoothing potentially delaying costs and asked for Sausalito-specific dollar figures for assets, unfunded liability, and funded ratio. Bartel explained that as part of a pool, CalPERS does not disclose individual agency data, but estimates could be made. ▶ 📄 Bartel discussed second-tier benefits, noting savings are minimal and long-term (20-30 years) because they only affect new employees' normal costs, not the existing unfunded liability. He advised that second tiers should be based on benefit fairness, not financial savings. ▶ 📄 Side fund payoffs could save money if the city uses reserves, but require upfront cash. ▶ 📄 CalPERS Senior Actuary Barbara Ware presented Sausalito's plan history and rate trends. She confirmed Sausalito has final year compensation for calculations. ▶ 📄 She outlined options to lower costs: second-tier benefits, cost-sharing, lump-sum side fund payments, or plan termination (which would require paying off liabilities plus a 7% contingency). ▶ 📄 Councilmember Jonathan Leone clarified that plan termination would apply to all employees in a plan, not just new hires. ▶ 📄 Council discussion included questions about defined contribution plans (currently not allowed as a standalone option), the lowest benefit formula (2% at 60, or 1.5% at 65 with Social Security), and the need for legislative changes. ▶ 📄 Charlie Francis stated the city's two-year budget accounts for known rate increases, and long-term strategies (fire consolidation, restructuring) are being pursued to address future costs. ▶ 📄 Councilmembers emphasized the need for continued attention, community outreach, and exploring all options within legal constraints.

Associate Planner Heidi Burns provided a status update on the proposed Veterans Administration (VA) project for the machine shop building at 25 Liberty Shipway. Staff has taken several actions following the City Council's direction from November 23rd, including sending letters to federal agencies (Advisory Council on Historic Preservation, California State Office of Historic Preservation, National Trust for Historic Preservation, VA Federal Preservation Officer) to urge the VA to follow the Section 106 process under the National Historic Preservation Act ▶ 📄. Responses were received from the National Trust and the Advisory Council, indicating support. The Historic Landmarks Board is initiating a nomination of the machine shop for the local register ▶ 📄. Staff solicited proposals for historic studies (historic context statement, Marinship inventory, historic resource evaluation) and received five proposals, with a recommendation to come soon ▶ 📄. A meeting with representatives from Lynn Woolsey's office occurred on January 19th to discuss city concerns ▶ 📄. Staff submitted an application for the National Trust's 'America's 11 Most Endangered Buildings' list, with results in May ▶ 📄. A meeting with VA representatives is scheduled for February 23rd ▶ 📄. Councilmember Kelly emphasized the need to contact legislators (Mark Leno, Jared Huffman, Dianne Feinstein) and include the site in Bay Area historic naval networks ▶ 📄. Councilmember Leone expressed concern about the VA removing roof material and exposing the building to storms, suggesting letters to hold them accountable ▶ 📄. Mayor Weiner and Councilmember Kelly clarified the city's position is not to stop the project but to ensure proper historic evaluation and appropriate design ▶ 📄.

City Attorney Mary Wagner presented amendments to the 1976 settlement agreement and 1992 lease with Sausalito Yacht Harbor, extending both to 2061 while maintaining current payment structures (5% under settlement, 25% under lease). Key changes include: removal of cross-default provisions between agreements ▶ 📄, adjustments to minimum monthly rent calculations to exclude bulkhead replacement/dredging periods from vacancy allowances ▶ 📄, and establishment of a rent credit mechanism for Sausalito Yacht Harbor's $2.5M share of the $4.2M bulkhead replacement project ▶ 📄. The city will contribute $1M upfront, with the remainder financed over 25 years via rent credits subject to a 5% annual escalator ▶ 📄. Council discussion focused on risks of decoupling agreements, long-term maintenance obligations, and bid evaluation processes. Councilmember Kelly expressed concerns about unresolved ownership issues and long-term financial implications ▶ 📄, while Councilmember Leone acknowledged the agreement makes the best of a difficult situation and praised Sausalito Yacht Harbor's financial contribution ▶ 📄.

Director of Public Works Jonathon Goldman presented the item, recommending acceptance of the parking access and revenue control systems installed by APARC Systems in City Parking Lots 1-4 as complete, release of retention (~$48,000), and authorization of a one-year communications fee purchase order ($58,152). He noted the 255-page staff report and addressed prior questions, confirming the contract consists of bid documents, the bid, council resolution, and purchase orders. ▶ 📄 He stated APARC committed to substantial completion within 120 days and final completion within 160 days from notice to proceed, but the acceptance cycle extended due to testing. ▶ 📄 Councilmember Pfeifer expressed concern that resident and commuter cards, key decision factors, were not part of the base bid and remain unimplemented. ▶ 📄 City Manager Adam Politzer explained the delay allowed for system enhancements, like tracking actual parking time and expanding resident access to all four lots, improving on the old system. ▶ 📄 Councilmember Leone noted no financial damages occurred as parking revenue remained stable, making liquidated damages moot. ▶ 📄 Councilmember Ford requested a project plan with milestones for Phase 2. ▶ 📄 Leone emphasized the detailed specifications were met, with resident cards to be addressed separately.

The item involves four key amendments to the City Manager's employment agreement: 1) Extending the cooling-off period after a council election from 60 to 90 days before the manager can be dismissed without cause (requires a four-fifths vote during that period). 2) Increasing severance to one year's salary if dismissed without cause, which was validated by an external recruiting firm (Bob Murray and Associates) as standard for California city managers. 3) A salary increase of $842 per month to bring the City Manager to the median salary for Marin County city managers, aligning with the city's goal of median compensation to attract and retain talent. 4) A one-time payment of $4,870 (2.5% of prior salary) as a previously unfulfilled performance incentive from the first year of employment. Council discussion highlighted that the City Manager was initially hired at a lower salary due to limited experience, with a promise to adjust compensation if he performed well ▶ 📄. Several councilmembers praised the City Manager's performance and leadership, noting his role in stabilizing city operations. Concerns were raised about equity, as other city employees have had wage freezes ▶ 📄, but it was clarified that the city's labor issues are primarily related to pension obligations, not salaries, and that equity adjustments for other staff will be addressed in future union negotiations ▶ 📄.

City Manager Adam Politzer reported on attending the League of California Cities new mayors and council member academy in Sacramento with Mayor Weiner, highlighting networking and shared challenges like infrastructure and hiring ▶ 📄. He announced upcoming City Manager's Conference in Monterey and the MCC dinner in Mill Valley. Strategic planning session dates were proposed for either Monday, March 25th, or Friday, March 28th, to align with budget preparations ▶ 📄. Politzer addressed PG&E concerns, stating staff awaits Assemblyman Huffman's health and safety report before bringing the item to Council, aiming for a comprehensive review ▶ 📄. In response to Councilmember Ford's question, he provided an update on hiring the new police chief, confirming she passed background checks and will start on February 22nd, with a community meet-and-greet planned at the Bay Model upon his return from Australia ▶ 📄. Mayor Weiner commented on the Sacramento trip's insight into California's small communities ▶ 📄 and made board appointments, including changes to the Housing Element Ad Hoc Committee with Stan Bear as chairperson, emphasizing a preference for non-council chairs ▶ 📄.

The Mayor, Herb Weiner, discusses appointments to various boards and committees. He mentions appointments to MTC (Metropolitan Transportation Commission) and MTA (Metropolitan Transportation Authority), indicating Carolyn Ford for MTC and Mike Kelly for MTA or related roles ▶ 📄. He notes that Jonathan Leon will serve as an alternate on one of these and also mentions appointments to parks and recreation, including himself (Mayor Winey, likely a misspeak for Weiner) and Jonathan Leon ▶ 📄. The discussion is brief and informal, with no detailed debate or opposition from councilmembers.

Councilmember Linda Pfeifer raised concerns about the scope of the economic study being conducted by the Business Advisory Committee (BAC) regarding the Marinship area. She stated that her understanding from the October 6th minutes was that the study would stay within current zoning designations, but she now perceives a 'big U-turn' as the study may not be confined to that ▶ 📄. Vice Mayor Mike Kelly clarified that the BAC, as a group, can bring up various topics, but the consultant, Robert Eiler, was told that reviewing zoning changes is not the tool for his study; he is looking at economic and work mix, not specifics ▶ 📄. Mayor Herb Weiner noted the study is a joint effort with the Chamber of Commerce and suggested getting clarification from the consultant, agreeing to bring the item back for clarity ▶ 📄. Councilmember Jonathan Leone added that the study is focusing on mix, not specifics ▶ 📄. Mayor Weiner also mentioned he will start asking for committee reports at the next meeting and thanked the Sausalito Police Department for assisting in finding a lost elderly woman ▶ 📄.

Councilmembers discuss a recent fire incident, praising the police department's response and coordination ▶ 📄. Herb Weiner notes that multiple fire departments responded, which he initially calls 'ridiculous' but acknowledges is necessary for safety in hill areas due to wind risks ▶ 📄. Linda Pfeifer defends the multi-department response, stating there's no excuse for not bringing sufficient resources and suggesting it be addressed with Jim ▶ 📄. The consensus is that an overwhelming response is better than being underprepared, with Herb concluding 'better to be safe than sorry' ▶ 📄.

The meeting concluded with brief administrative clarifications regarding committee assignments. Mayor Weiner noted he is attending various committee meetings to get a feel for them and indicated that assignments are not permanent and may change throughout the year ▶ 📄. Councilmember Ford sought clarification on committee names, specifically regarding Parks and Recreation and Telecommunications committees ▶ 📄. Councilmember Kelly suggested emailing the director and coordinating with Councilmember Ford to bring her up to speed on Telecommunications ▶ 📄.