body,date,page,text,path
CityCouncil,2008-10-21,1,"MINUTES OF THE REGULAR CITY COUNCIL MEETING
TUESDAY- - -OCTOBER 21, 2008 - -7:30 P.M.
Mayor Johnson convened the Regular Meeting at 8:54 p.m.
ROLL CALL - Present : Councilmembers deHaan, Gilmore, Matarrese,
Tam, and Mayor Johnson - 5.
Absent :
None.
AGENDA CHANGES
None.
PROCLAMATIONS, SPECIAL ORDERS OF THE DAY AND ANNOUNCEMENTS
(08-440 ) Proclamation declaring October 2008 as Breast Cancer
Awareness Month.
Mayor Johnson read and presented the proclamation to Susan Bunker.
Ms. Bunker thanked Council for the proclamation.
(08-441) Proclamation recognizing the benefits of public power and
honoring Alameda Power and Telecom for its contributions to the
community.
Mayor Johnson read and presented the proclamation to the Alameda
Power and Telecom General Manager.
The Alameda Power and Telecom General Manager thanked Council for
the proclamation.
CONSENT CALENDAR
Councilmember deHaan moved approval of the Consent Calendar.
Councilmember Matarrese seconded the motion, which carried by
unanimous voice vote - 5. [Items so enacted or adopted are
indicated by an asterisk preceding the paragraph number. . ]
(*08-442) - Minutes of the Special City Council Meeting held on
October 1, 2008; Special City Council Meeting held on October 2,
2008; Special and Regular City Council Meetings held on October 7,
2008. Approved.
(
*08 - 443) Ratified bills in the amount of $2,722,309.26.
Regular Meeting
1
Alameda City Council
October 21, 2008",CityCouncil/2008-10-21.pdf
CityCouncil,2008-10-21,2,"(*08-444)
Recommendation to accept the Annual Report for the
Managed Investment Portfolio for Fiscal Year 2007-2008. Accepted.
(*08-445) Recommendation to adopt Plans and Specifications and
authorize Call for Bids for Signal Coordination on Eighth Street,
Otis Drive, and Park Street/San Jose Avenue, No. P.W. 01-08-03.
Accepted.
(*08-446) Resolution No. 14277, ""Authorizing the City Manager to
Execute the Grant Contract Between the State of California
Department of Boating and Waterways and the Alameda Police
Department. Adopted.
(*08-447) Resolution No. 14278, ""Approving an Agreement with
Ameresco Butte County LLC for the Purchase of Power from Landfill
Gas Generation for a 20-Year Term. Adopted.
(*08-448) Resolution No. 14279, ""Recommending Opposition to
Proposition 7."" Adopted.
CITY MANAGER COMMUNICATIONS
(08-449) Discuss the principles and framework for the potential
cuts to balance the City's Fiscal Year 2009-1 budget.
The City Manager gave a Power Point presentation.
Mayor Johnson opened the public portion of the meeting.
Tony Santare, Mastick Senior Center Advisory Board (submitted
comments) ; Ewart A. Wetheral, Mastick Senior Center (submitted
comments) ; Barry Christensen, Mastick Senior Center; Jim Thomas,
Mastick Senior Center; Virginia Fierro, Mastick Senior Center;
Arlene Talbot, Alameda; Patricia Meier, Alameda: Olga Crowe,
Alameda; Domenick Weaver, Alameda Firefighters (submitted study) ;
Albert J. Hahane, Residents for Cardinal Point; Ken Gutletsen,
Alameda; Robbie Dileo, Alameda Museum; Chuck Millar, Alameda
Museum.
There being no further speakers, Mayor Johnson closed the public
portion of the meeting.
Councilmember Matarrese stated decisions will not be made on
potential cuts tonight that he would like Council to give
direction on policy standards to provide measurement and flattening
and restructure the organization, which have been addressed at
prior budget hearings; cuts should be made farthest away from the
Regular Meeting
2
Alameda City Council
October 21, 2008",CityCouncil/2008-10-21.pdf
CityCouncil,2008-10-21,3,"point of service delivery; the City has a structural problem that
needs to be fixed; consolidating departments should be reviewed.
Councilmember deHaan stated more impacts can be anticipated due to
the current financial crisis; concurred with Councilmember
Matarrese; stated funding was strong from 1995 to 2000; that he
would like to compare current staffing with levels ten years agoi
he is appalled that Mastick Senior Center closure is being
considered as a potential cut.
Councilmember Matarrese stated the City Manager and Department
Heads are responsible for determining how to deliver service; that
he wants to outline what services need to be protected; public
safety staffing needs to be maintained at a level to ensure
adequate response time; that he is pleased that the Police Chief is
urging Council not to consider a Special Duty Unit reduction which
would result in the loss of a parolee, a probationer, sex
registrant monitoring, special operations capabilities, and
surveillance and investigative functions the City is kept safe
because of parolee surveillance, speed limit enforcement, and
property crime investigation; the City has three missions 1)
keeping the City safe; 2) protecting individual citizens; and 3)
protecting infrastructure; the City cannot eliminate sidewalk and
tree pruning maintenance.
Mayor Johnson stated the Fire and Police Departments
Sustainability Reports should have included economic analysis and
been a financial planning tool for the next five or ten years;
reports should include the retirement medical cost issue.
Councilmember Gilmore stated follow up should be given to the
possibility of contracting out certain Finance Department
functions, such as payroll, parking citations, business licenses,
etc., as well as combining Risk Management and Human Resources into
one administrative department; consolidating Boards and Commissions
should be reviewed because City time is used to staff the Boards
and Commissions; contracting out engineering services should be
reviewed; that she is not sure about contracting out Fire services
to the County; that she does not see how public safety services
will not be touched given the fact public safety accounts for 66%
of the General Fund.
Councilmember Matarrese stated that he would like the City Manager
to explore the possibility of contracting in; Alameda Unified
School District could contract with the City for field maintenance
and payroll services part-time versus full-time employment should
be reviewed for professional services.
Regular Meeting
3
Alameda City Council
October 21, 2008",CityCouncil/2008-10-21.pdf
CityCouncil,2008-10-21,4,"Mayor Johnson stated issues should be reviewed with more of an open
mind; Council has been clear on minimizing public service cuts as
much as possible; many cities utilize retirees to supplement public
safety forces the Fire Dispatch Center was contracted out years
agoi the Police Chief provided a brief analysis on the matter, but
numbers were not provided.
The City Manager stated that the issue was noted as something to
consider in the future because more analysis is needed.
Mayor Johnson stated the issue should be reviewed if there is a
possibility to save money and provide the same service; every issue
should have an associated dollar amount.
The City Manager stated that staff is working to ensure that costs
are identified in future studies; structural changes can be
reviewed; the amount needed to balance the [2009-2010] budget is
substantial.
Mayor Johnson stated Council needs to know the exact amount of
money that would be saved by eliminating positions, including
retirement benefit costs.
Vice Mayor Tam stated the City does so much with so little; the
City's public utility is doing very well; fifty percent of the
Assistant City Manager's time is charged to Alameda Point Mastick
Senior Center is a model for the region; the Police and Fire
Departments are incredible; it is important to see whether
structural changes would have an impact on the General Fund; that
she is not sure whether all Public Works' programs are charged to
the General Fund; questioned whether funding is received for tree
trimming and sidewalk repair; stated clear assessments need to be
made regarding contracting out public safety services to Alameda
County; the City is not facing easy choices.
Councilmember Gilmore stated Council is discussing 2009-2010 budget
cuts now; economic advisers do not see the financial situation
getting better for a few years; she does not want the City to
become another Vallejo.
Councilmember Matarrese stated people do not want to put a price
tag on public safety services or the Mastick Senior Center, but the
services cost money; the City's core missions and need to be
reviewed.
Councilmember deHaan stated the City's financial situation
developed over several years; corrections need to be made now to
avoid further impacts.
Regular Meeting
4
Alameda City Council
October 21, 2008",CityCouncil/2008-10-21.pdf
CityCouncil,2008-10-21,5,"Mayor Johnson stated the City cut $4 million [ from the budget ] this
year; millions of dollars were cut the year before; structural
reform is needed.
The City Manager stated expenditures and revenues will continue to
be monitored; the community will be impacted.
Mayor Johnson stated Council voted to place Measure P on the ballot
to increase revenue; people need to be given a choice between
increasing revenue or making cuts; a public safety parcel tax
polled very poorly.
Councilmember Matarrese stated some departments night need to be
consolidated; the City cannot support the current structure;
sharing services with the School District should be reviewed; the
City cannot afford not to develop the North of Lincoln Avenue and
Alameda Landing projects.
The City Manager stated the Revenue Enhancement Team looked at a
variety of revenue raising opportunities; discussions involved
using Marina fees to help support public safety services in the
area.
Mayor
Johnson stated Council needs more information on Marina fees.
Councilmember Gilmore stated tonight's report is very clear and
helpful; requested that the report be posted more predominately on
the City's website.
Councilmember Matarrese stated an analysis would be needed
following the outcome of Measure P; quarterly reports will be
provided in November mid-year reports will be provided in
February the budget will be reviewed in May.
Councilmember deHaan stated most municipalities are going through
the same exercise and are making drastic cuts.
Mayor Johnson stated Measure P would lessen cuts, but cuts would
still need to be made.
REGULAR AGENDA ITEMS
(08-450) Recommendation to receive the Fiscal Sustainability
Committee report on Other Post Employment Benefits.
The Interim Finance Director gave a presentation.
Regular Meeting
5
Alameda City Council
October 21, 2008",CityCouncil/2008-10-21.pdf
CityCouncil,2008-10-21,6,"Mayor Johnson inquired what happens when a retiree reaches an age
to qualify for Medicare, to which the City Manager responded that
information would be provided.
Mayor Johnson inquired whether a significant number of increased
participates need to be assumed.
The Interim Finance Director responded actuarial assumptions are
based on certain revenue and cost growth estimates; stated
actuarial assumptions need to be updated every twenty-four months.
Mayor Johnson stated that projecting the number of retirees in the
next ten years is important.
The Interim Finance Director stated that employee census growth is
addressed [in actuarials].
Mayor Johnson requested clarification on national health care in
ten years.
The Interim Finance Director stated Bartel Associates' theory is
that national health care costs would be the base line; the amount
would be subtracted from the City's liability.
Mayor Johnson stated that she does not agree with said assumption;
assumptions need to have a rational basis; reducing the health care
rate of inflation to 4.2% is irresponsible.
Councilmember Matarrese stated the assumption should not be made.
The Interim Finance Director continued the presentation.
Kevin Kennedy, Fiscal Sustainability Chair and City Treasurer, gave
a brief presentation.
***
(08-451) - Vice Mayor Tam moved approval of continuing the meeting
past midnight.
Councilmember deHaan seconded the motion, which carried by
unanimous voice vote - 5.
***
Vice Mayor Tam stated that the $6 million cash payment assumes a
4.5% and 7.75% fixed rate of return.
Mr. Kennedy stated the higher rate of return is being used; the
money set aside to deal with the liability can be invested like a
pension fund investment the City's General Fund can only have
Regular Meeting
6
Alameda City Council
October 21, 2008",CityCouncil/2008-10-21.pdf
CityCouncil,2008-10-21,7,"highly rated securities with very limited maturity; the Public
Employee Retirement System (PERS) has a program that cities can use
to set up irrevocable trusts to fund OPEB benefits.
Vice Mayor Tam inquired whether the City would need to contribute
more if the return is not 7.75%.
Mr. Kennedy responded figures should not deviate very much unless
staff levels significantly change or there is an unusual employee
turnover.
Mayor Johnson inquired what is the Fiscal Sustainability
Committee's recommendation, to which Mr. Kennedy responded a
straight thirty-year amortized schedule.
Councilmember Matarrese inquired whether outstanding loans from
Alameda Power and Telecom (AP&T) and Alameda Reuse and
Redevelopment Authority (ARRA) are returning approximately 6%
interest each.
The Development Services Manager responded ARRA is paying interest
only to the General Fund; stated the principle would not retire;
AP&T is not paying anything on its obligation.
Councilmember Matarrese inquired whether lease revenues are pumped
into the General Fund as an interest only payment.
The Development Services Manager responded a payment of $130,000 is
made, which is 6% in interest.
Councilmember Matarrese stated the interest comes from lease
payments lease revenue is to go into infrastructure and
maintenance at the former Base, but is going into the General Fund.
Mayor Johnson stated Council needs to decide whether revenue should
come to the General Fund or go into crumbling infrastructure that
the City does not own.
Vice Mayor Tam inquired whether redevelopment funds would be
protected from State raiding if revenues were put into the General
Fund.
The Development Services Director responded lease revenue funding
does not have anything to do with tax increment received from the
State; stated the law states that a city's General Fund can make
the payment; ARRA is scheduled to make principle payments this
fiscal year.
Regular Meeting
7
Alameda City Council
October 21, 2008",CityCouncil/2008-10-21.pdf
CityCouncil,2008-10-21,8,"Councilmember Matarrese stated the question is whether principle
payments should be made; decisions need to be made on the best
place for cash flow.
Mr. Kenney stated the City is trying to work another $2.5 million
into a budget that is already strained to ensure that obligations
are met the City may get to a point where the retiree budget will
engulf the entire budget for current services.
Mayor Johnson questioned how the City would provide needed levels
of public safety when payments are required for retiree health
benefits.
Mr. Kennedy stated that a lot of cities are looking at the issue;
the current economy is exposing a lot of weaknesses that were
hidden by a strong economy.
Vice Mayor Tam inquired whether the Committee's recommendatior is
Alternative B, which requires raising an additional $2.3 million on
top of $1.2 million; stated Alternative B would increase the
shortfall of approximately $4 million next year to $6.3 million;
questioned whether the Committee is suggesting that the City not
tap into the fund balance for said amount.
Mr. Kenney responded in the affirmative; stated the General Fund
balance could be spent down to zero if significant changes are not
made to free up revenue going forward; stated the City has a $75
million liability; staff presented a variety of payment options;
there is a lot to be said for pre-funding as much as possible.
Mayor Johnson inquired how many retirees are assumed on Attachment
B and what are the premiums.
Mr. Kennedy responded the current population was considered and
assumptions were made regarding turnover and change in
demographics.
Councilmember Matarrese stated no one is supporting the pay-as-you-
go approach; the question is how much the City will pay over and
beyond the annual premium; the money needs to be squeezed out of an
already tight budget that he appreciates the work of the Fiscal
Sustainability Committee; he prefers a fixed figure even if
adjustment would be needed; the obligation is real and contracted;
that he likes the idea of taking the from an ARRA loan to help fund
the obligation.
Mayor Johnson concurred with Councilmember Matarrese; stated a
fixed number has to be set; funding was not provided for the 1079
Regular Meeting
8
Alameda City Council
October 21, 2008",CityCouncil/2008-10-21.pdf
CityCouncil,2008-10-21,9,"and 1082 Plans; Council is dealing with the consequences.
Mayor Johnson opened the public portion of the hearing.
Michael D'Orazi, IAFF 689, stated the Police and Fire Associations
did not get off to a good start when the City was approached for
transferring the 1082 Plan to PERS; the ball was set in motion
through a meeting with Former Mayor Chuck Corica; actuarial
assumptions were obtained from PERS which showed that the City
would save 13% on employer costs for pensions and there would be
$3 million left over after the conclusion of transfer of funds;
public retiree healthcare benefit discussions were limited because
everyone felt that life expectancy for public safety employees was
shorter discussions continued for adding spouses to the benefit;
the 13% could have been used to help pre-fund pension costs; pre-
funding is an important option to consider urged Council to be
cautious; stated only two people are left in the 1082 Plan; the
1079 Plan unfunded liability will decrease substantially over the
next few years.
There being no further speakers, Mayor Johnson closed the public
portion of the hearing.
The Interim Finance Director noted that the City would have more
than an additional $700,000 shortfall if the ARRA obligation
repayment was not included in the current budget and 2009-2010
budget.
Councilmember Gilmore thanked the Interim Finance Director and
Fiscal Sustainability Committee for the report; stated that she
knew there was an OPEB liability, but she did not know what target
the City needed to shoot for to start paying for the obligation.
Mr. Kennedy stated that the Fiscal Sustainability Committee would
not provide a final report in January.
Councilmember Matarrese thanked the Fiscal Sustainability Committee
for input and the Interim Finance Director for a clear
presentation; stated that no one anticipated the rise in healthcare
costs; the 1079 and 1082 Plans are in sunset and provide an
opportunity for some ramping up; that he would like staff to come
back with a hybrid approach which would include pre-funding ramp up
and Alternative E.
In response to Mayor Johnson's comments regarding mandatory
payment, Mr. Kennedy stated one way to make payment mandatory could
be pre-funding with a bond; if a $50 million pension bond were
issued, a 5% interest rate would equal $2.5 million in interest
Regular Meeting
9
Alameda City Council
October 21, 2008",CityCouncil/2008-10-21.pdf
CityCouncil,2008-10-21,10,"payments ; earning 6%-8% would result in additional revenue i the
interest payment would be non-negotiable.
Councilmember deHaan stated that Peralta Community College District
had an approximate 2% delta between what was borrowed on a bond and
what was earned.
Mayor Johnson stated that a number needs to be set and consequences
need to be known; requiring non-discretionary payments could be
established through an ordinance or could be part of the Charter.
Mr. Kenney stated that he would have an issue with issuing a bond
on the entire obligation; a number of cities have partially pre-
funded the obligation.
The Interim Finance Director stated pension obligation bonds are
taxable; borrowing $75.4 million of taxable municipal debt at
today's rate would result in a $3.2 million payment; the bond would
be a serial bond and would never stop.
Mr. Kenney stated bond counsel could provide more information on
the matter.
The Interim Finance Director stated that paying the $75.4 million
over thirty years would result in paying three times the amount; a
bond would be good for pre-funding the obligation and controlling
the difference of the delta every year.
Mr. Kenney stated the pay-as-you-go approach is irresponsible;
commended Council for facing the issue; stated more information is
needed on how a pension bond would work.
Mayor Johnson stated information is needed on paying the obligation
over thirty years, the 1079 and 1082 Plans, and using [1079 and
1082 Plan] decreases to pay for the current [OPEB] plan.
Councilmember Matarrese stated consensus is not to select the pay-
as-you-go approach; to shoot for the $4.4 million; to review the
pension bond alternative; and to see how $2.8 million from the 1079
and 1082 Plans figure into payment further stated a resolution or
ordinance could be considered as a vehicle for locking in the
payment commitment.
Councilmember Gilmore stated that she wants information on General
Fund repercussions.
Vice Mayor Tam requested clarification on the $3 million that was
to go into the OPEB [when the 1079 and 1082 Plans ended] and where
Regular Meeting
10
Alameda City Council
October 21, 2008",CityCouncil/2008-10-21.pdf
CityCouncil,2008-10-21,11,"the 13% savings went that the City incurred as a result of the
conversion from the 1079 and 1082 Plans; stated that she wants to
avoid repeating past mistakes.
Mayor Johnson stated actuarial numbers need to be reviewed in order
to ensure that payments are adequate.
Councilmember Matarrese stated dramatically increased healthcare
costs and participant fluctuation need to be considered.
Councilmember deHaan stated today has to be the worst of all times
to pay but might be the best in terms of securing a bond.
Mr. Kennedy stated markets have been frozen; IBM borrowed money at
250 basis points over Treasury, which is ridiculous.
The Interim Finance Director stated that the last quarter
statistics indicated that the Municipal Bond market was 25% less
than demand timing is the issue; updated actuarial assumptions are
needed; real numbers are needed.
Councilmember Matarrese stated accurate information is needed, but
he does not want the matter pushed aside.
(08-452) Report on the impact of the Chuck Corica Golf Complex Fee
Increases.
The Interim Golf Manager gave a brief presentation.
Councilmember deHaan stated rounds have increased, but cart rentals
have decreased.
The Interim Golf Manager stated golfers are making careful spending
decisions.
Mayor Johnson stated one month's data is not enough to track
impacts.
Jim Strehlow, Alameda, stated fewer people will play golf because
of the current economic conditions; Council should not rely on
short-term impacts.
Jane Sullwold, Alameda Golf Commission, stated September 2008 only
had four weekends and did not include Labor Day weekend, which was
included in September 2007 statistics; revenue increased by
approximately $24,000; the first month was a very positive
experience under the new rate structure; the Interim Finance
Director has been extremely helpful in providing information to the
Regular Meeting
11
Alameda City Council
October 21, 2008",CityCouncil/2008-10-21.pdf
CityCouncil,2008-10-21,12,"Golf Commission.
In response to Councilmember deHaan's inquiry regarding figures,
Ms. Sullwold stated the Par 3 Course continues to increase in play
and decrease in revenue.
Mayor Johnson inquired whether increased rates would decrease play.
Ms. Sullwold responded higher rates decreased play in the past;
stated the Par 3 Course if price sensitive.
(08-453 ) Recommendation to authorize the City Manager to negotiate
a Master Siting Agreement with AT&T to upgrade their distribution
system in order to provide Lightspeed Services in Alameda and to
execute all necessary documents to implement the project.
The Public Works Coordinator gave a brief presentation.
Mayor Johnson inquired whether every site would require a permit.
The Public Works Coordinator responded in the affirmative; stated
notification would be provided to property owners within 300 feet
of a site.
Mayor Johnson inquired whether Council has the ability to say no to
the Agreement.
The Public Works Coordinator responded in the negative; stated the
City would have the right to control the way equipment would be
installed within the public right-of-way
Mayor Johnson inquired whether the franchising roll has been taken
over by the State, to which the Public Works Coordinator responded
in the affirmative.
Councilmember Matarrese stated the staff report indicates that the
City would receive a 5% franchise fee; inquired how much the 5% is
in dollars.
The Public Works Coordinator responded 5% of gross revenue for
video services; stated the actual dollar amount would depend on
sales.
Councilmember Matarrese inquired whether the 5% [franchise fee ] is
in the budget.
The Public Works Coordinator responded in the negative; stated
constructing the system would take approximately eighteen months.
Regular Meeting
12
Alameda City Council
October 21, 2008",CityCouncil/2008-10-21.pdf
CityCouncil,2008-10-21,13,"Mayor Johnson inquired why the City cannot charge franchise fees on
satellite dishes.
The Public Works Coordinator stated franchise fees are for
occupation of right-of-ways.
Councilmember deHaan inquired whether all cabinets would be on
public property, to which the Public Works Coordinator responded
all cabinets would be within the public right-of-way.
Councilmember deHaan inquired whether any cabinets would be placed
on private property at any point.
The Public Works Coordinator responded there are no plans to place
the cabinets on private property.
Councilmember deHaan inquired whether locations would be new.
The Public Works Coordinator responded in the affirmative; stated
AT&T estimates that seventy-sever boxes will be installed; the
quantity depends depend on cable length; the new cabinets would be
within 150 feet of the existing Serving Area Interface (SAI)
cabinets.
Councilmember deHaan inquired whether electrical underground boxes
were placed on public or private right-of-ways, to which the Public
Works Coordinator responded public right-of-way.
Mayor Johnson stated placing some of the cabinets on private
property would be beneficial. placing cabinets in landscape areas
would be better.
Councilmember deHaan inquired whether AT&T would be willing to
subsidize staff's efforts.
The Public Works Coordinator responded AT&T would be pay for
permits.
Councilmember deHaan inquired whether permit fees would be
adequate, to which the Public Works Coordinator responded in the
affirmative.
Vice Mayor Tam stated the Agreement has a lot of protections for
the City.
Councilmember Gilmore moved approval of the staff recommendation
Regular Meeting
13
Alameda City Council
October 21, 2008",CityCouncil/2008-10-21.pdf
CityCouncil,2008-10-21,14,"Vice Mayor Tam seconded the motion, which carried by unanimous
voice vote - 5.
(08-454) Resolution No. 14280, ""Approving the Amended and Restated
Northern California Power Agency Power Pooling Agreement. "" Adopted.
The Utility Planning Supervisor provided a brief presentation.
The City Manager stated that the Agreement was unanimously approved
at the Public Utilities Board meeting last night.
Mayor Johnson inquired whether all Northern California Power Agency
members are changing the Agreement, to which the Utility Planning
Supervisor responded in the affirmative.
Councilmember Matarrese inquired whether the Agreement would have
any affect on the source of power generated.
The Utility Planning Supervisor responded there should be no
impact stated the City has been operating under revised procedures
for a number of years.
Vice Mayor Tam moved adoption of the resolution.
Councilmember Matarrese seconded the motion, which carried by
unanimous voice vote - 5.
ORAL COMMUNICATIONS, NON-AGENDA
08 3-455 - ) Griff Neal, Alameda, submitted handout; stated
undergrounding costs were estimated to cost homeowners between
$1,500 and $2,000 that his estimate is $10,000; electric services
can be reimbursed but cable and phone service costs are divided by
the number of services; hook up costs are not reimbursed if a house
requires a non-standard service hook up.
Mayor Johnson requested that information be provided to Council on
how charges work and the reimbursement process.
Councilmember Matarrese requested that the matter be placed on an
agenda so that Council can take action.
Mr. Neal suggested selling AP&T to balance the budget.
COUNCIL REFERRALS
None.
Regular Meeting
14
Alameda City Council
October 21, 2008",CityCouncil/2008-10-21.pdf
CityCouncil,2008-10-21,15,"COUNCIL COMMUNICATIONS
(08-456) - Consideration of Mayor's nomination for appointment to the
Social Services Human Relations Board.
Mayor Johnson nominated Douglas Biggs.
(08-457 ) Councilmember deHaan stated that gas prices are down ;
ferry fees were raised; inquired whether the increase should be
revisited.
The City Manager responded that she would check with the Public
Works Department.
Mayor Johnson stated that fees could possibly be reduced.
(08-458 - ) Councilmember Matarrese stated that he attended the AC
Transit Interagency Liaison Committee Meeting; he requested that
Council receive a report on the meeting because discussions
included casual carpooling and line 63; the line 63 route changes
only saved two minutes.
Mayor Johnson inquired what were the thoughts on casual carpooling.
Councilmember Matarrese responded points of discussion included:
1) casual carpooling is bad for the bus system; 2) the City should
place a sign for a designated casual carpooling zone; and 3) casual
carpooling should be moved to a ride share location; stated the
matter is a question of policy.
Councilmember deHaan stated concerns involved sheriff's issuing
tickets.
Councilmember Matarrese stated tickets are issued if someone pulls
up to a red zone that is a bus stop.
(08-459) Vice Mayor Tam stated that she attended the League of
California Cities East Bay Division meeting last Thursday PG&E
made a presentation; PG&E is trying to reduce its carbon footprint ;
Berkeley, Albany, and Emeryville are trying to create a municipal
public power entity; studies show that rates would be 10% higher
because of PG&E's broad base; that she has been elected to the
Executive Board which requires reviewing legislation on local
control for the Light Brown Apple Moth issue.
Mayor Johnson inquired what is PG&E's renewable portion of their
portfolio.
Regular Meeting
15
Alameda City Council
October 21, 2008",CityCouncil/2008-10-21.pdf
CityCouncil,2008-10-21,16,"The AP&T General Manager responded 11%; stated AP&T is number one
in the State.
ADJOURNMENT
Mayor Johnson announced that the November 4, 2008 Regular City
Council Meeting will be adjourned to November 6, 2008 due to the
November 4, 2008 General Municipal Election. There being no
further business, Mayor Johnson adjourned the Regular Meeting at
1 :45 a.m.
Respectfully submitted,
Lara Weisiger
City Clerk
The agenda for this meeting was posted in accordance with the Brown
Act.
Regular Meeting
16
Alameda City Council
October 21, 2008",CityCouncil/2008-10-21.pdf
CityCouncil,2008-10-21,17,"MINUTES OF THE SPECIAL CITY COUNCIL MEETING
TUESDAY- - -OCTOBER 21, 2008 - -6:00 p.m.
Mayor Johnson convened the Special Meeting at 6:05 p.m.
ROLL CALL - Present : Councilmembers
deHaan,
Gilmore,
Matarrese, Tam, and Mayor Johnson - 5.
Absent :
None.
The Special Meeting was adjourned to Closed Session to consider :
(08-436) Conference with Labor Negotiators; Agency Negotiators
:
Craig Jory and Human Resources Director Employee Organizations:
All Bargaining Units.
(08-437) Conference with Legal Counsel - Anticipated Litigation;
Initiation of litigation pursuant to subdivision (c) of Section
54956.9; Number of cases: One.
Following the Closed Session, the Special Meeting was reconvened
and Mayor Johnson announced that regarding Labor, Council received
a briefing from Labor Negotiators regarding status no action was
taken; regarding Legal, Legal Counsel briefed Council on potential
litigation; Council provided direction to Legal Counsel.
Adjournment
There being no further business, Mayor Johnson adjourned the
Special Meeting at 7:25 p.m.
Respectfully submitted,
Lara Weisiger
City Clerk
The agenda for this meeting was posted in accordance with the Brown
Act.
Special Meeting
Alameda City Council
October 21, 2008",CityCouncil/2008-10-21.pdf
CityCouncil,2008-10-21,18,"MINUTES OF THE SPECIAL JOINT CITY COUNCIL,
ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY (ARRA, AND
COMMUNITY IMPROVEMENT COMMISSION (CIC) MEETING
TUESDAY- -OCTOBER 21, 2008- - -7:25 P.M.
Mayor/Chair Johnson convened the Special Meeting at 7:36 p.m.
Councilmember/Board Member/Commissioner Gilmore led the Pledge of
Allegiance.
ROLL CALL -
Present : Councilmembers / Board Members
/
Commissioners deHaan, Gilmore, Matarrese,
Tam, and Mayor/Chair Johnson - 5.
Absent :
None.
CONSENT CALENDAR
Vice Mayor Tam moved approval of the Consent Calendar.
Councilmember Matarrese seconded the motion, which carried by
unanimous voice vote - 5. [Items so enacted or adopted are
indicated by an asterisk preceding the paragraph number. .
]
(*08-438CC/ARRA) Recommendation to authorize execution of a Payment
Plan for Sales Tax Guarantee between the City of Alameda and
Auctions by the Bay, Inc. Accepted.
AGENDA ITEM
(08-439CC/ARRA/08-54CIC) Recommendation to accept the Year End
Financial Report for the period ending June 30, 2008.
The Interim Finance Director gave a presentation.
Mayor/Chair Johnson stated the equipment replacement fund is $2.5
million, which is too much; there should be a discussion on what
the equipment replacement is for and why there is so much money in
the fund.
The Interim Finance Director stated the revenue is generated by
depreciation, which departments have as an expense how quickly the
funds are used depends on budget decisions made each year the
depreciation rate is based upon the schedule adopted as part of the
audit and is pretty much the IRS's depreciation schedule.
Mayor/Chair Johnson inquired whether the number represents real
Special Joint Meeting
Alameda City Council, Alameda Reuse and
1
Redevelopment Authority, and Community
Improvement Commission
October 21, 2008",CityCouncil/2008-10-21.pdf
CityCouncil,2008-10-21,19,"dollars, to which the Interim Finance Director responded in the
affirmative.
Mayor/Chair Johnson stated the amount is too high.
Councilmember/Board Member/Commissioner deHaan inquired how much
was added last year, to which the Interim Finance Director
responded $400,000
Mayor/Chair Johnson stated the amount in the fund increased last
year when 4% to 5% cuts were made in department budgets; the matter
should be reviewed.
The Interim Finance Director stated staff would provide Council
with information on what auditors would expect.
Councilmember/Board Member/Commissioner Gilmore inquired whether
the $1 million sales tax overpayment would come from the General
Fund.
The Interim Finance Director responded in the affirmative; stated
the amount would not be included in the last Fiscal Year; provided
background information on the State Board of Equalization's claim
that the City was overpaid $1. 1 million in sales tax.
Mayor/Chair Johnson inquired about the ambulance service bill from
the County.
The City Manager responded the City returned the bill to the County
because the City does not have a Contract.
Mayor/Chair Johnson inquired the amount, to which the City Manager
responded over $1 million.
Mayor/Chai Johnson inquired what the bill is for.
The City Manager responded the bill is for the County providing
regulation for ambulance services; stated the City pays the amount
from the General Fund because the City does not assess residents
for the service; the City has been negotiating with the County
since 2005.
Mayor/Chair Johnson stated the City Fire Department provided back
up to American Medical Response (AMR) approximately 600 times; the
number of times AMR backed up the City is much, much less; the City
should send the County a bill for the disproportionate amount of
Special Joint Meeting
Alameda City Council, Alameda Reuse and
2
Redevelopment Authority, and Community
Improvement Commission
October 21, 2008",CityCouncil/2008-10-21.pdf
CityCouncil,2008-10-21,20,"mutual aid; the City should not provide backup for AMR, a private
company; taxpayers should not support AMR; the County should
receive a $1 million bill for the service.
The City Manager stated staff would follow up; the City made
changes to avoid the situation in the future.
Mayor/Chair Johnson stated the bill should be sent for past mutual
aid.
Councilmember/Board Member/Commissioner Matarrese inquired whether
the $1 million sales tax overpayment and $1 million bill from the
County are outstanding, to which the City Manager responded in the
affirmative.
Councilmember/Board Member/Commissioner Matarrese inquired the
likelihood of the City prevailing on the outstanding County bill.
The City Attorney responded the City is in good shape; stated the
amount relates to an expired Contract that the City has been trying
to negotiate; the county refunded the City when the Contract has
expired in the past.
Councilmember/Board Member/Commissioner inquired how outstanding
amounts are captured on the balance sheet.
The Interim Finance Director responded the amount is captured as a
liability at the time the process is concluded and the amount is
real.
Councilmember/Board Member/Commissioner deHaan requested a
breakdown of the $6 million in IOUs [owed to the General Fund].
The Interim Finance Director stated the three large amounts are
$2.2 million from Alameda Reuse and Redevelopment Authority (ARRA) ,
$2.4 million from Alameda Power and Telecom (AP&T), and $1.2
million from Alameda Point.
In response to Councilmember/Board Member/Commissioner deHaan's
inquiry regarding repayment of the $6 million loaned out from the
General Fund, the Interim Finance Director stated the principle is
not being retired; ARRA is paying interest only, which is booked as
$130,000 in General Fund revenue.
Councilmember/Boaro Member/Commissioner deHaan inquired whether
there is a funding mechanism for repayment.
Special Joint Meeting
Alameda City Council, Alameda Reuse and
3
Redevelopment Authority, and Community
Improvement Commission
October 21, 2008",CityCouncil/2008-10-21.pdf
CityCouncil,2008-10-21,21,"The Interim Finance Director responded the matter would be visited
in more detail in the future; stated some housekeeping paperwork
needs to be done to make it [loans] more formal; continued the
presentation.
Mayor/Chair Johnson requested the outstanding bonds debt balance.
The Interim Finance Director stated staff would provide the debt
service schedule, including a description of why the City went to
the market and what was financed.
Mayor/Chain Johnson stated the City needs to maintain what has been
built and cannot let assets deteriorate before they have been paid
off.
The Interim Finance Director stated one of the things that
government does not do very well is anticipate maintenance costs
and roll [maintenance] costs into operations; some cities adopt
policies.
Mayor/Chair Johnson stated the City should do so [adopt a policy].
The Interim Finance Director continued the presentation.
Councilmember/Board Member/Commissioner Matarrese stated $38
million in the sewer fund is the asset, not cash; inquired whether
$38 million is the amount it would cost to put in the sewer system.
The Interim Finance Director responded in the negative; stated GASB
34 requires that a value be placed on infrastructure; stated the
replacement cost would be a lot more than $38 million.
Councilmember/Board Member/Commissioner Matarrese stated the amount
should be grounded to reality requested the matter be reviewed;
stated the value should be understood.
The Interim Finance Director stated a GASB 34 report could be
provided on the sewer and ferry systems.
Mayor/Chair Johnson stated the City is trying to catch up on
deferred maintenance for streets and sidewalks; the City needs to
have a plan and funding mechanism in place to deal with assets so
that they do not crumble awayi the Council needs to know the
expected maintenance needs in the near and long term for all
assets, such as the sewers.
Special Joint Meeting
Alameda City Council, Alameda Reuse and
4
Redevelopment Authority, and Community
Improvement Commission
October 21, 2008",CityCouncil/2008-10-21.pdf
CityCouncil,2008-10-21,22,"Councilmember/Board Member/Commissioner Matarrese stated a real
number is needed, not a number driven by an accounting standard.
Councilmember/Board Member/Commissioner deHaan inquired whether the
$300,000 in the Golf due from ARRA fund would be repaid, to which
the Interim Finance Director responded staff would look into the
matter.
Councilmember/Board Member/Commissioner Matarrese inquired the
amount in the ARRA fund balance.
The Interim Finance Director responded in the aggregate, fund
balance is $10.3 million.
The City Manager stated staff would get back to Council because
there are differences between the amount and the cash flow.
Councilmember/Board Member/Commissioner Matarrese inquired whether
the [ARRA] fund owes money to the General Fund and Golf, to which
the Interim Finance Director responded staff would look into the
matter.
The Assistant City Manager stated some of the commitments are
pretty poorly documented.
Mayor/Chair Johnson stated the City needs to do a better job [of
documenting commitments].
The Interim Finance Director stated the [ARRA] funds might not be
available due to obligations in a Disposition and Development
Agreement or something else; the numbers would be broken down more
clearly; continued the presentation.
Mayor/Chair Johnson requested an explanation of the Workers'
Compensation fund.
The Interim Finance Director stated the fund has been set up to
include the potential liability similar to Other Post Employment
Benefits (OPEB) .
The City Attorney stated both federal law and the City's
participation in a workers' compensation risk pool require that the
City show the actuarial loss reserve; the number is very high and
represents the worst case scenario; the City has to have the funds,
rather than just show the number on paper; the funds are held in
Special Joint Meeting
Alameda City Council, Alameda Reuse and
5
Redevelopment Authority, and Community
Improvement Commission
October 21, 2008",CityCouncil/2008-10-21.pdf
CityCouncil,2008-10-21,23,"the General Fund; as claims come in during the year, money is
backfilled into the workers' compensation budget.
Mayor/Chair Johnson requested that the reporting be made clearer.
The Interim Finance Director stated the amount is on the balance
sheet, not the profit and loss statement. the amount does not have
to be liquid and can be in an asset.
Councilmember/Board Member/Commissioner Matarrese stated the City
is federally required to have $5 million [for workers'
compensation] ; inquired whether the $5 million is part of the $10
million that is cash in the [General Fund] fund balance.
The Interim Finance Director responded in the negative; stated the
number is recorded as a liability; however, the money is not
earmarked exclusively for workers' compensation.
The City Attorney concurred that the amount does not need to be
earmarked; stated there must be at least that much money in the
General Fund.
The Interim Finance Director stated if Council wanted to fund it,
the cash would be moved someplace.
Mayor/Chair Johnson stated the fund balance is $16 million, $10
million of which is cash; $5 million of the $10 million [in cash)
has to remain liquid [for workers' compensation].
The Interim Finance Director stated the federal requirement is that
the City has to have the capacity to pay.
The City Attorney concurred that the City has to demonstrate the
capacity to pay; stated the way the City does so is by keeping the
money in the General Fund.
The Interim Finance Director concluded the presentation.
Mayor/Chair Johnson requested that the amount budgeted for the next
fiscal year be included in another column in future reports; stated
some funds have significant balances and might need to be reviewed;
further requested that the police overtime Contract overtime be
reviewed to ensure that the amount charged fully funds all costs.
The Interim Finance Director stated contract overtime would be
handled differently; there would be an object code to show expenses
Special Joint Meeting
Alameda City Council, Alameda Reuse and
6
Redevelopment Authority, and Community
Improvement Commission
October 21, 2008",CityCouncil/2008-10-21.pdf
CityCouncil,2008-10-21,24,"along with a revenue source by detail.
Mayor/Chair Johnson stated the amount charged needs to include the
amount of time a Captain spends overseeing contract overtime.
In response to Mayor Johnson's inquiry regarding the Meyers House,
the City Manager stated the amount was removed from the Recreation
budget and was not funded.
Councilmember/Board Member/Commissioner Matarrese moved approval of
the staff recommendation.
Vice Mayor/Board Member/Commission Tam seconded the motion, which
carried by unanimous voice vote - 5.
ADJOURNMENT
There being no further business, Mayor/Chair Johnson adjourned the
Special Meeting at 8:54 p.m.
Respectfully submitted,
Lara Weisiger, City Clerk
Secretary, Community Improvement
Commission
The agenda for this meeting was posted in accordance with the Brown
Act.
Special Joint Meeting
Alameda City Council, Alameda Reuse and
7
Redevelopment Authority, and Community
Improvement Commission
October 21, 2008",CityCouncil/2008-10-21.pdf