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CityCouncil,2013-07-02,1,"MINUTES OF THE REGULAR CITY COUNCIL MEETING
TUESDAY--JULY 2, - P.M.
Mayor Gilmore convened the meeting at 7:06 p.m. Vice Mayor Ezzy Ashcraft led the
Pledge of Allegiance.
ROLL CALL -
Present:
Councilmembers Chen, Daysog, Ezzy Ashcraft, Tam
and Mayor Gilmore - 5.
Absent:
None.
AGENDA CHANGES
None.
PROCLAMATIONS, SPECIAL ORDERS OF THE DAY & ANNOUNCEMENTS
(13-322) Presentation of Certificates of Service to Avonnet Peeler, Civil Service Board;
Paulina Kirola, Commission on Disability Issues; Robert McKean and Bruce Reeves,
Economic Development Commission; Bill Schmitz and Jane Sullwold, Golf Commission;
Mathew Hoffman, Historical Advisory Board; John McCahan, Public Utilities Board;
Cynthia Wasko, Social Service Human Relations Board; and Emani Pollard and Angus
Storm, Youth Advisory Commission.
Mayor Gilmore presented Certificates to Ms. Peeler, Ms. Kirola, Mr. Schmitz, Ms.
Sullwold, Mr. McCahan, and Ms. Wasko.
(13-323) Presentation of Certificate of Recognition to Staff Sergeant Jason Ramsey.
Not heard.
(13-324) Proclamation Declaring July 1, 2013 as Alameda Meals on Wheels Day.
Mayor Gilmore read and presented the proclamation to Rosemary Reilly and Mark
Sorenson, Alameda Meals on Wheels.
Ms. Reilly and Mr. Sorenson made brief comments; invited everyone to attend a
fundraiser on July 21st
(13-325) Proclamation Declaring July 2, 2013 as Dr. Jannett Jackson Day.
Mayor Gilmore read and presented the proclamation to Dr. Jackson.
Expressed support of honoring Dr. Jackson: Toni Cook, College of Alameda.
Dr. Jackson made brief comments.
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CityCouncil,2013-07-02,2,"ORAL COMMUNICATIONS, NON-AGENDA
None.
CONSENT CALENDAR
Mayor Gilmore announced that the letter commenting on the Draft Plan Bay Area
[paragraph no. 13-328 was removed from the Consent Calendar for discussion.
Councilmember Tam moved approval of the remainder of the Consent Calendar.
Vice Mayor Ezzy Ashcraft seconded the motion, which carried by unanimous voice vote
- 5. [Items so enacted or adopted are indicated by an asterisk preceding the paragraph
number.]
(*13-326) Minutes of the Special and Regular City Council Meetings Held on May 28,
2013 and June 4, 2013. Approved.
(*13-327) Ratified bills in the amount of $1,447,057.20.
(13-328) Recommendation to Authorize the Mayor to Send a Letter Commenting on the
Draft Plan Bay Area.
Outlined her concerns with the Bay Area Plan: Carol Gottstein, Alameda.
Mayor Gilmore inquired if the letter could include comment that the funds allocated to
the hot lanes are counter to the goals of the One Bay Area Plan.
The City Planner responded in the affirmative; stated the whole regional planning
process is to reduce greenhouse submissions and focus development in the inter Bay
Area cities to address climate change issues.
Mayor Gilmore stated that she understands assets deteriorate over time; the freeway
link in the outer Bay Area is not being maintained; further stated the pedestrian
accidents increasing seems counter intuitive.
The City Planner stated the analysis indicates the incidents of collisions with bicycles,
cars, pedestrians will increase in the inner Bay Area by the factor of the increased
number of people walking and biking.
Councilmember Tam stated hot lanes do not recover costs and use a sizable chunk of
transportation dollars; the letter should underscore that alternative modes of
transportation should not just be prioritized, but the funding should be proportionally
allocated; a BART extension to Warm Springs or the Tri-valley is worth more than a hot
lane.
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CityCouncil,2013-07-02,3,"Vice Mayor Ezzy Ashcraft stated the freeways are overtaxed and a lot more emphasis
has to be put into alternative means of transportation; she concurs with her colleagues
about the hot lanes.
The City Planner stated that staff would be happy to amend the letter.
Councilmember Tam moved approval of the staff recommendation [with amendment to
the letter].
Vice Mayor Ezzy Ashcraft seconded the motion, which carried by unanimous voice vote
- 5.
(*13-329) Resolution No. 14835, ""Approving an Amendment to the Agreement with the
California State Coastal Conservancy for Funding to Implement Spartina Eradication
and Mitigation Measures and Authorize the City Manager to Execute All Required
Documents."" Adopted.
(*13-330) Resolution No. 14836, ""Ordering the Summary Vacation of a Public Street
Right-of-Way for a Portion of the Former Tinker Avenue Adjacent to Mariner Square
Loop."" Adopted.
(*13-331) Resolution No. 14837, ""Approving the Housing Authority's Conflict of Interest
Code."" Adopted.
(*13-332) Ordinance No. 3075, ""Amending Municipal Code Section 5-7.1 - Penalty for
Nonpayment of Annual, Quarterly or Semi-Annual Business License."" Finally Passed.
REGULAR AGENDA ITEMS
(13-333) Resolution No. 14838, ""Commending Retired Alameda Police Department
Chief Michael C. Noonan for His Contributions to the City of Alameda."" Adopted.
Mayor Gilmore read the resolution.
Councilmember Tam moved adoption of the resolution.
Vice Mayor Ezzy Ashcraft seconded the motion, which carried by unanimous voice vote
- 5.
Thanked Mr. Noonan for taking action to allow them to keep their pet pig: Cassandra,
Zack, Charlotte and Bosco Thompson, Alameda.
The Fire Chief made brief comments and thanked Mr. Noonan.
Mayor Gilmore presented the resolution to Mr. Noonan.
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CityCouncil,2013-07-02,4,"(13-334) Introduction of Ordinance Approving a Lease and Authorizing the City
Manager to Execute Documents Necessary to Implement the Terms of a License
Agreement with Antiques By the Bay, Inc., for Five Years in the Northwest Territories
Located at 2900 Navy Way at Alameda Point. Introduced.
The Economic Development Division Manager gave a brief presentation.
Councilmember Chen stated Antiques by the Bay is truly a destination spot, a regional
draw for Alameda; his relatives who live in Canada come to Alameda once a month just
to attend the antiques faire.
Councilmember Tam inquired whether the City receives sales tax from the Antiques
Fair, to which the Economic Development Division Manager responded staff is working
on trying to capture as much as possible; the sales tax is based on where each vendor
booth is registered.
Councilmember Daysog stated the faire is fabulous for Alameda and draws people
throughout the Bay Area and beyond.
The Economic Development Division Manager noted approximately 13,140 booklets are
distributed detailing the faire; staff is considering advertising in the booklet in order to
provide economic information to 13,140 people.
Councilmember Daysog moved introduction of the ordinance.
Councilmember Chen seconded the motion, which carried by unanimous voice vote - 5.
(13-335) Public Hearing to Consider Introduction of Ordinance Amending Section 30-2
of the Alameda Municipal Code to Allow Cottage Food Operations as Required by
Assembly Bill 1616 and Allow All Home Occupations to Include Up to One Employee
and Delete Reference to Excessive Pedestrian Traffic. Introduced.
The Supervising Planner gave a brief presentation.
Vice Mayor Ezzy Ashcraft moved introduction of the ordinance.
Councilmember Tam seconded the motion.
Under discussion, Councilmember Tam extended her appreciation to staff for getting
ahead of the issue and ensuring the City has guidelines in place to give clarity to those
making added income by working from home.
On the call for the question, the motion carried by unanimous voice vote - 5.
(13-336) Adoption of Resolution_Establishing Integrated Waste Collection Ceiling Rates
and Service Fees for Alameda County Industries, Inc. for Rate Period 12 (July 2013 to
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CityCouncil,2013-07-02,5,"June 2014). Not adopted.
Rick Simonson, HF&H, gave a Power Point presentation.
Councilmember Daysog noted a discrepancy in a table included in the presentation and
inquired if the discrepancy translates into a rate adjustment, to which Mr. Simonson
responded in the affirmative.
Councilmember Daysog inquired if the annual cost of $891,200 for the C&G vehicles
shown in the detail of Table 4 is depreciation, to which Mr. Simonson responded in the
affirmative.
Councilmember Daysog inquired if the rate calculation for this year was based upon last
year; stated the cost element should not be $891,000, it should be the increment
between the amount included last year and $891,000.
Mr. Simonson responded in previous years, vehicles were leased and appeared on
another line item for six months; depreciation was added, plus the lease expense, to
reach $900,000 in depreciation; $400,000 represents six months of the C&G vehicles;
another $400,000 represents six months of previous vehicles.
Councilmember Tam inquired whether the amounts are entirely depreciation costs.
Mr. Simonson responded the vehicles were leased in prior years, now, vehicles are
purchased and being depreciated, which is why there is a discrepancy between
$400,000 and $800,000; depreciation is not being double counted; continued the
presentation.
Councilmember Daysog inquired if other vehicles will be replaced, to which Mr.
Simonson responded in the affirmative.
Councilmember Daysog inquired whether depreciation would have already been
captured in the 2007 or 2008 rate increase for a vehicle leased in the year 2006, to
which Mr. Simonson responded in the affirmative.
Councilmember Daysog inquired if the City now has 100% C&G vehicles, to which Mr.
Simonson responded in the affirmative.
In response to Councilmember Daysog's inquiry, Mr. Simonson stated costs are annual,
not incremental; the annual revenue requirement for rate year 12 is $17.2 million; some
service vehicles are not alternative fuel vehicles; annual depreciation, including $17.2
million, it is not additive.
Councilmember Daysog stated a lot of information needs to be clarified; 20,000
residents are getting a big rate increase.
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CityCouncil,2013-07-02,6,"Mr. Simonson responded the presentation includes slides explaining the matter.
Ken Kenny, Alameda County Industries (ACI), outlined the equipment costs; stated the
numbers are the same and were just reflected as two different line items; $400,000
each last year demonstrates the transition; as now, one line item has 12 full months of
depreciation.
The Public Works Director stated the amount it is not additive and accounts for all costs
for the upcoming rate period; before last year, the accounting was $400,000 for lease of
vehicles plus $400,000 for amortization; this year there is no leasing; the accounting for
vehicles is just the amortization; accounting reflects the various categories that make up
the expenses ACI anticipates incurring in the coming rate period.
Councilmember Daysog stated greater discussion would help.
Mr. Simonson continued the presentation.
Councilmember Chen inquired whether rates are being increased to cover $1.5 million
due to the loss revenue and labor, gas and fuel costs, to which Mr. Simonson
responded in the affirmative
Councilmember Chen inquired whether the 10% increase is being requested to offset
the $1.5 million shortfall.
Mr. Simonson responded in the affirmative; stated the original increase requested from
ACI to bridge the gap between the costs and the current revenues was 12.3%, which is
now down to 10%.
Councilmember Chen inquired whether $17.2 million in revenue would make the 10%
increase not necessary; to which Mr. Simonson responded in the affirmative.
Councilmember Chen inquired whether 6% is the base for all rates, to which Mr.
Simonson responded in the affirmative.
Councilmember Chen inquired if the remaining 4% is broken down into 1% in 20 gallon,
2.5% in the multiplex and so forth, to which Mr. Simonson responded in the affirmative.
Councilmember Chen inquired if the 10% increase would balance the shortfall, to which
Mr. Simonson responded in affirmative.
Councilmember Chen stated the 20 gallon single family receptacle increases from
$23.80 to $27.73 which represents a 17% increase; inquired why the percentage is
greater than 10% and where the extra revenue is going.
Mr. Simonson responded at least 8,240 customers are going up just 6%; the increase
averages to 10% in different rate categories and customer types are being affected
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CityCouncil,2013-07-02,7,"differently.
Councilmember Chen stated some customers will see a rate increase of more than
10%, perhaps 20%, or even 30%.
Mr. Simonson responded the 10% increase is for single family residents; 20 gallon rates
will increase 16.5%; all others will increase 6%.
Councilmember Chen inquired if the 7% above the 10% is going into a reserve.
Mr. Simonson responded the amount is not additional; the increases generate exactly
what ACI needs: $17.2 million; the rates will accomplish the $17.2 million based on the
current subscription levels.
In response to Councilmember Chen's inquiry, Mr. Simonson stated the City is still
susceptible to revenue shortfalls; costs do not change because items disposed of still
go into one of the three containers, just not the one residents are charged for; in an
effort to make the revenues more reliable, strides to get the 20 and 32 gallon rates
closer to the true service cost and move towards no revenue shortfalls.
*
Councilmember Daysog left the dais at 8:39 p.m. and returned at 8:40 p.m.
*
Mayor Gilmore inquired if the revenue estimates are based solely on rate changes and
anticipate no change in customer behavior.
Mr. Simonson responded migration is built in based on where revenues are going;
customers can downsize and there would not be a significant shortfall; many
commercial customers already have 20 and 32 gallons; 95% of residential customers
have already shifted to the smallest can.
Mayor Gilmore inquired how the target was missed so badly this year.
Mr. Simonson responded last year, a 9.2 or 9.6% increase was necessary but only an
overall increase of 5% was requested and authorized; there was already a built-in gap
coming into this year; the increase was kept at 5% because of the economy and not
wanting to severely impact the residents and businesses annual bases; the rates are
bring brought current to provide 100% of the revenue requirement.
Councilmember Chen stated since 40% of customers have single family homes;
recycling is encouraged; $120 savings can be pocketed if residents recycle; a 17%
increase sends the wrong message.
Mayor Gilmore stated the rate increases are not specific to garbage collection;
increases are happening in a lot of the industries, including water and electricity.
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CityCouncil,2013-07-02,8,"Vice Mayor Ezzy Ashcraft questioned if the City is trying to encourage people to use
less garbage then should not the price of a 64 gallon container be twice the price of a
32 gallon container; stated there seems to be a discount for having more garbage;
inquired if 64 gallon customers could help subsidize other rates.
In response to Councilmember Chen's comments about a 10% increase across the
board, the Public Works Director stated a 10% increase across the board would get ACI
the revenue projected; stated a 20 gallon may cost $40 to service, however the rate is
remaining lower to encourage recycling.
The City Manager recommended continuing the item to the next Council meeting on
July 23rd to offer the consultants time to provide the additional information the Council is
requesting.
Councilmember Daysog concurred with the City Manager; stated additional information
would be helpful, particularly with regard to how depreciation is characterized and how
depreciation affects the need for rate increases.
Mr. Simonson responded he would be happy to provide Council with additional
information.
Urged that the rates support the service received; expressed support for the rate
increase: Jessica Robinson, Miss Alameda Says Compost and Community Action for a
Sustainable Alameda.
(13-337) Resolution No. 14839, ""Supporting Assembly Bill 1324."" Adopted.
The Assistant City Manager gave a brief presentation.
Councilmember Chen moved adoption of the resolution.
Councilmember Daysog seconded the motion, which carried by unanimous voice vote -
5.
CITY MANAGER COMMUNICATIONS
(13-338) The City Manager provided a handout outlining upcoming Municipal Code
amendments; announced upcoming community meetings addressing: 1) AC Transit
route changes; 2) Fire Station 3; and 3) Housing Authority assistance for candidates
seeking jobs; showed a new Alameda Visitor's Guide; and announced Other Post-
Employment Benefits would be addressed at the next Regular Council meeting on July
23rd
ORAL COMMUNICATIONS, NON-AGENDA
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CityCouncil,2013-07-02,9,"None.
COUNCIL REFERRALS
None.
COUNCIL COMMUNICATIONS
(13-339) Consideration of Mayor's Nominations for Appointment to the Golf
Commission, Historical Advisory Board and Youth Advisory Commission.
Mayor Gilmore nominated Shawn Shelby for appointment to the Golf Commission; and
Amy Fann, Alanei Jackson, Amelia Khoo and Shariff Youngblood for appointment to the
Youth Advisory Commission.
(13-340) Vice Mayor Ezzy Ashcraft stated on June 27th, Councilmember Lena Tam and
she attended the League of California Cities East Bay Division business meeting at El
Cerrito City Hall.
Councilmember Tam stated the City of Alameda and the City of Hayward noticed
shopping malls are encouraging food trucks and finding the trucks complement their
business, bring in foot traffic, and help raise revenues.
(13-341) Councilmember Daysog stated on June 27th and 29th, he addressed the public,
a top issue was concern about crime at the Bayport residential development.
(13-342) Mayor Gilmore encouraged everyone to attend the 4th of July Parade.
ADJOURNMENT
There being no further business, Mayor Gilmore adjourned the meeting at 9:25 p.m.
Respectfully submitted,
Lara Weisiger
City Clerk
The agenda for this meeting was posted in accordance with the Sunshine Ordinance.
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