City Council — 2021-03-09

Pension and OPEB Presentation

• Staff reported pension costs remain flat due to principal pay-downs over the next 15 years.
• The OPEB unfunded liability stands at approximately $2.81 million with a 17.5% funded status.
• Council accepted staff recommendations to retain the current moderately aggressive investment strategy.
• Staff cautioned against debt restructuring due to significant investment return risks.

Drone Regulation Discussion

• Members proposed investigating commercial drone delivery regulations to protect privacy and local businesses.
• Concerns regarding federal preemption and carbon footprint benefits were raised during discussion.
• Council agreed to investigate further with staff to draft an ordinance and analysis for May.
• The City Attorney noted that federal or state laws could preempt local ordinances on this matter.

Future Agenda Items

• Topics including Tiny Home ordinances and ADU standards were scheduled for future review.
• An Earth-Friendly Pest Management Plan discussion is planned for April in honor of Earth Day.
• The agenda procedure was amended to move Public Comment immediately after presentations.
• A presentation on forming a social justice and finance equity committee is scheduled.

• The following is a summary of the Ojai City Council meeting proceedings based on the provided transcript:

1. Pension and OPEB (Other Post-Employment Benefits) Presentation

• Financial Status: Staff presented an analysis showing the city is "holding its own" financially. Pension costs are relatively flat compared to other agencies due to significant principal pay-downs expected over the next 15 years.
• OPEB Liability: The unfunded liability stands at approximately $2.81 million with a funded status of 17.5%. The annual cost to service this is about $374,000 (recommended to be increased closer to $400,000). Recent reductions in liability were attributed to a decrease in active employees and positive healthcare trend experience.
• Investment Strategy: Staff recommended retaining OPEB Investment Strategy 1 (moderately aggressive, ~60/40 equity/fixed split). Council members questioned if a more conservative fixed-income strategy was safer. Staff advised that due to current low interest rates and an 18-year investment horizon, moving to fixed income would likely increase liability and costs.
• Debt Restructuring: Council Member Haney asked about taking out a low-interest loan to pay off the pension debt. Staff cautioned that while borrowing at 3-4% might save money compared to the assumed 7.55% return, it carries significant risk if investment returns underperform.
• Decision: The Council received the report with no formal vote required to stay in the current strategy, acknowledging staff's recommendation.

2. Drone Regulation Discussion

• Proposal: Council Members Blatz and Francina proposed investigating a regulation on commercial drone deliveries (specifically targeting Amazon) to protect local businesses, privacy, wildlife, and traffic safety.
• Counterpoints: Council Member Haney questioned the necessity, noting potential carbon footprint reductions and a lack of concrete data on drones currently entering Ojai. He expressed concern over federal preemption.
• Staff Input: The City Attorney noted that federal (FAA) or state laws could preempt local ordinances.
• Decision: The Council agreed to investigate further. Staff will bring a draft ordinance and an analysis of pros/cons to the agenda in May (or June if other items take priority).

3. Council and Staff Reports

• Council Member Blatz: Discussed representing Ojai on the Ventura Regional Sanitation District regarding the public landfill versus the private monopoly. Also highlighted concerns regarding the In-stream Flow Analysis for local fisheries.
• Council Member Haney: Praised environmental efforts and noted Gold Coast Gold transit is transitioning to natural gas and future electric/hydrogen fleets.
• Mayor Sticks: Shared updates on Women's History Month, Social Justice listening sessions, and a local art exhibit.
• City Manager James: Provided updates on the General Plan Visioning Workshop, the Stewart Canyon restoration, obstacles with the Ojai Valley Organics facility (permitting issues), and a map of the City Campus projects (Pickleball, gardens, police station).
• Committee Clarification: Confusion arose regarding who leads the Campus Committee (Council members vs. City Manager). This was added to the future agenda for clarification.

4. Future Agenda Items

• Earth-Friendly Pest Management Plan: To be discussed in April in honor of Earth Day.
• Tiny Home Ordinance: A request to revisit the pilot program and draft a term sheet based on new state guidelines and Santa Paula's experience.
• ADU Standards: A request to review Los Angeles' pre-approved ADU standard plan program to potentially expedite housing development in Ojai.
• Equity Committee: A presentation on forming a committee focused on social justice, housing, and finance.
• Agenda Procedure: Public Comment will now occur immediately after presentations/commission reports, removing the fixed "time certain" previously in place.

5. Adjournment

• The meeting concluded after the agenda items were set and procedural changes were approved.