HomeMy WebLinkAboutResolution 2006-142 N.C.S. 08/07/2006 Resolution No. 2006-142 N.C.S.
of the City of Petaluma, California
APPROVING RESPONSE LETTER TO
2005-2006 SONOlVIA COUNTY GRAND JURY'S FINAL REPORT
WHEREAS, under California law, the civil Grand Jury is an independent institution that
oversees all aspects of the legislative and administrative departments that make up county, city
and special district governments, and has the power to investigate them to ensure they are
serving the public and individual citizens; and,
WHEREAS, the Grand Jury conducts investigations, culminating in a final report to the
community each fiscal year; and,
WHEREAS, the 2005-2006 Sonoma County Grand Jury issued its final report on June
27, 2006; and,
WHEREAS, one of their investigations titled "The Impact of Yesterday's Promises"
requires responses from the City of Petaluma.
NOW, THEREFORE, BE IT RESOLVED that the City Council approves the response
letter to the Grand Jury and authorizes the Mayor, City Manager, and Administrative Services
Director to sign said letter on behalf of the City.
Under the power and authority conferred upon this Council by the Charter of said City.
a
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the ~ro ec~as to
Council of the City of Petaluma at a Regular meeting on the 7`~ day of August, ~ fo n:
2006, by the following vote:
City At y
AYES: Harris, Healy, Vice Mayor Nau, O'Brien, Torliatt
NOES: None
ABSENT: Mayor Glass
ABSTAIN: None
ATTEST: ~f
City Clerk Vice ~~ayor
Resolution No. 2006-142 N.C.S. Page 1
ATTACHMENT A
August 8, 2006
The Honorable Robert S. Boyd
Presiding Judge, Superior Court State of California
3035 Cleveland Avenue, Suite 200
Santa Rosa, CA 95403
RE: Grand Jury Final Report -Responses and Recommendations
Dear Judge Boyd:
The City of Petaluma is pleased to provide responses to recommendations for the Grand Jury
Report, "The Impact of Yesterday's Promises," formatted in accordance with Penal Code
section 933.05.
The Impact of Yesterday's Promises
R-1 The grand jury recommends that Supervisors, Council members and financial officers
should verify that health or other lifetime benefit promises are secured properly and in
compliance with reserve funding standards.
Petaluma's Response: Agree, with explanation.
The recommendation will be implemented by December 31, 2006.
R-2 The grand jury recommends that the Board of Supervisors and/or City Councils enlist
actuarial expertise to audit this asset/obligation disclosure.
Petaluma's Response: Agree, with explanation.
The recommendation will be implemented by December 31, 2006.
R-3 The grand jury recommends that the advice of an expert should be solicited to consider
the fairest most equitable way to offer health care benefits to public employees. This
should be disclosed.
Petaluma's Response: Agree, with explanation.
The recommendation will be implemented by December 31, 2006.
R-4 The grand jury recommends to build a secure structure for maintenance of employee
benefits should not be deferred.
Petaluma's Response: This recommendation has been implemented.
The City of Petaluma has already implemented the recommendation of tracking retiree
benefits through its accounting and financial recordkeeping system.
R-5 The grand jury recommends full disclosure of each entities total benefit obligations along
with information describing provisions to secure them. We are requesting this information
between the end of each entities current fiscal year and December 3 1, 2006:
Resolution No. 2006-142 N.C.S. Page 2
Number of employees eligible for pension premiums.
® Number of retired employees receiving pension benefits.
® Financial obligation.
® What reserves are in place to insure these pension obligations.
® Obligation for health care coverage.
• Reserve amount in place.
® Amount required by federal authorities to secure these health care benefits.
Petaluma's Response: This recommendation has been implemented.
The City of Petaluma has already implemented the recommendation. Bulleted
information below is information already gathered in City's financial system:
329 employees are eligible for pension premiums.
• There are 88 employees and 7 council members who receive benefits.
• Current retired healthcare financial obligation is approximately $69,000 annually.
• Due to the small annual obligation, the City has chosen to pay this benefit as part of
the budget process with no reserve account. Maximum retiree benefit is $100 per
month, which requires 20 plus years of experience.
• No reserve fund required. City of Petaluma has no deferred liability.
o No reserve amount required.
• No reserve amount required.
Thank you for the opportunity to respond to the Grand Jury's report. If you have additional
questions, please let us know.
Sincerely,
David A. Glass Michael A. Bierman Steven Carmichael
Mayor of Petaluma, City Manager Administrative Services
on behalf of the Director
Petaluma City Council
cc: Sonoma County Board of Supervisors
Sonoma County Clerk
Petaluma City Clerk
Petaluma City Council
Sonoma County Cities
Resolution No. 2006-142 N.C.S. Page 3