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noted that the Grand Jury's report did not focus on the Town's level of pension but on <br /> other institutions with an enhanced level plan. He recommended that the Town consider <br /> paying social security in addition to the pension. <br /> CLOSED PUBLIC COMMENT <br /> MOTION SECONDED AND CARRIED: Moved by Mordo, seconded by Larsen and <br /> passed unanimously to eliminate the step formula for merit pay increases and to replace <br /> the process with a salary range for each position. <br /> Council discussed the formation of the Council subcommittee that would be tasked with <br /> reviewing staff compensation and the inclusion of a consultant to advise the committee. <br /> City Manager Cahill suggested that the Council consider the option of providing <br /> management with a goal and afford him the opportunity to meet that benchmark. He felt <br /> it was important for management(City Manager)to be included in the review process. <br /> OPENED PUBLIC COMMENT <br /> Karen Lemes, resident, provided Council with a report that focused on the current <br /> economy in Silicon Valley and its effect on lower and middle class incomes. She noted <br /> that the Town had a very small staff(21 employees) and encouraged the Council to treat <br /> them well because it would benefit the wealthy people who reside in Los Altos Hills. <br /> CLOSED PUBLIC COMMENT <br /> MOTION SECONDED AND CARRIED: Moved by Mordo, seconded by Larsen and <br /> passed unanimously to form a Council subcommittee consisting of Mordo, Larsen, and <br /> the City Manager to review employee compensation and benefits. <br /> Council consensus was to engage consultants on an as needed basis to address specific <br /> questions. The subcommittee would return to Council with their recommendations. <br /> MOTION SECONDED AND CARRIED: Moved by Kerr, seconded by Mordo and <br /> passed unanimously to authorize management to establish a Pension Contingency <br /> Reserve of$700,000 over 10 years utilizing the $70,000 annual pension expense savings. <br /> Councilmember Warshawsky noted that the Town's employee costs and"fiscal house" <br /> were a complete anomaly to the rest of the state and were in excellent condition. <br /> NEW BUSINESS <br /> 16. Consideration of Ordinance Amending Title II, Chapter 6 of the Los Altos Hills <br /> Municipal Code deleting the Appendix and amending Sections 2-6.03 and 2-6.10 <br /> and approving a Resolution updating Los Altos Hills "Designated Officials and <br /> Employees with Disclosure Obligations" (Staff: K. Jost) <br /> City Clerk Karen Jost introduced the item to Council. She provided an overview of her <br /> staff report. The Political Reform Act requires every local government agency to review <br /> 7 Approved City Council Regular Meeting Minutes <br /> October 21,2010 <br />