body,date,page,text,path
CityCouncil,2015-04-16,1,"MINUTES OF THE SPECIAL CITY COUNCIL MEETING
TUESDAY- -APRIL 16, 2015- -6:00 P.M.
Mayor Spencer convened the meeting at 6:03 p.m. and led the Pledge of Allegiance.
ROLL CALL -
Present:
Councilmembers Daysog, Ezzy Ashcraft, Matarrese,
Oddie and Mayor Spencer - 5.
Absent:
None.
ORAL COMMUNICATIONS. NON-AGENDA
(15-240) Kevin Kennedy, City Treasurer, submitted a spreadsheet; provided feedback
on the public safety Memorandums of Understanding (MOUs); stated something needs
to be done; the question is whether these MOUs are what the City needs to do; the City
has spent time and money on the matter and needs to be thinking long term; expressed
concern over the Balanced Revenue Index (BRI) including the property transfer tax,
which is one time revenue, and the trust running out of funds and the burden falling on
younger workers.
Kevin Kearney, City Auditor, stated the mechanism of running Other Post Employment
Benefits (OPEB) through payroll results in the employees having higher wages; urged
not running the funding through the payroll, which would require retirement payment.
The City Treasurer stated putting 2% into the trust cost the City 3% because the PERS
contribution will be 50% of salary; suggested putting 3% straight into the trust;
expressed concern over the City's legal position; stated the courts are still determining
how cities handle vested benefits; questioned whether the mechanism has legal
ramifications; suggested hiring a pension lawyer; stated that he would proceed with the
recommendations in the Pension Task Force report; reviewed the four
recommendations.
(15-241) Denise Lai, Alameda, stated that she requested payroll information from the
City; she could not compare the data; asked the Council to direct staff to standardize
the data; stated Fire Fighter overtime doubled in 2013 and 2014; expressed concern
over Fire Department overtime and the number of Fire Captains; urged Council to stall
or vote no on the MOUs; urged Fire management be investigated.
(15-242) Kurt Peterson, Alameda, urged the Council to take its time and make intelligent
wise decisions on the MOUs; expressed concern over profit sharing with Police and
Fire, which is one way.
(15-243) Janet Gibson, Alameda Architectural Preservation Society (AAPS), read a
letter submitted by AAPS requesting funds for two projects.
(15-244) Robin Gilbert, Alameda, concurred with the City Treasurer's recommendation
Special Meeting
Alameda City Council
1
April 16, 2015",CityCouncil/2015-04-16.pdf
CityCouncil,2015-04-16,2,"to hire a pension lawyer; suggested allowing more time to review the MOUs.
(15-245) Jane Sullwold, Alameda, expressed concern over rushing through the public
safety MOUs on April 29th; stated the contract may cut off other OPEB options, create
vesting and eliminate options available from court decisions; stated there should be
actuarial and legal analysis; urged providing more time.
AGENDA ITEM
(15-246) Receive a Summary of Proposed Budget for Fiscal Years 2015-16 and 2016-
17.
In response to Vice Mayor Matarrese's request, the Assistant City Manager outlined the
budget schedule.
The Assistant City Manager and Finance Director gave a Power Point presentation and
responded to questions.
Regarding the General Fund FY 2014-15 review, Mayor Spencer requested amounts be
provided in writing.
Vice Mayor Matarrese stated the workers compensation fund has a deficit; the City does
not have surplus funds if there are deficits.
The Assistant City Manager stated there are outstanding claims.
Vice Matarrese requested that the policy question regarding whether workers
compensation should be fully funded or if the risk is acceptable return to Council.
Regarding projected revenue, Councilmember Daysog requested the assumptions and
changes over time be outlined; stated the changes are particularly important on the
expense side; questioned whether a department increasing expenditures from 30% to
37% might mean another department is not getting its fair share.
The Assistant City Manager stated the matter could be reviewed.
Councilmember Ezzy Ashcraft stated the Council should consider updating the Utility
Users Tax (UUT).
The Assistant City Manager noted amendment would require a vote.
***
Councilmember Oddie left the dais 7:45 p.m. and returned at 7:46 p.m.
***
On the General Fund transfers in, Councilmember Daysog requested staff to review
Special Meeting
Alameda City Council
2
April 16, 2015",CityCouncil/2015-04-16.pdf
CityCouncil,2015-04-16,3,"where Bayport Municipal Services District funds are going.
Mayor Spencer inquired whether information on staff vacancies could be presented by
each department, to which the Assistant City Manager responded in the affirmative.
Regarding the General Fund expenditures by department, Vice Mayor Matarrese
requested staff to provide an explanation of the difference in the increase between the
Police and Fire budgets at a future meeting.
Mayor Spencer stated that she would like to see a historical perspective from 5, 10 and
15 years ago of the percentage for each department to show if the percentages have
stayed the same or if some departments have grown and others are shrinking over time;
that she would like to see the percentage for Recreation and Parks.
The Assistant City Manager stated staff would attempt to do so; noted Recreation and
Parks was taken out of the General Fund to better account for programs, so it will be
difficult.
Mayor Spencer noted she is also interested in the percentage for Police and Fire.
Councilmember Daysog requested that the General Fund proposed expenditures by
department FY 2015-16 pie chart be reviewed; stated that he is having a hard time
reconciling the numbers; the ratios are different in staff report Exhibit 1.
Regarding the PERS rates, Councilmember Oddie requested staff to provide a
comparison to other cities.
Vice Mayor Matarrese requested a chart showing the difference between the pay as you
go and the amount if the MOUs are approved.
Regarding the three new positions, Vice Mayor Matarrese stated that he would like to
see alternatives; that he will not vote for a budget which increases positions, which
includes a PERS burden; the private sector uses contract organizations for Information
Technology (IT); he would like alternatives which do not involve hiring someone.
The Assistant City Manager stated that she is not sure a comprehensive analysis can
be finished by budget completion.
Councilmember Daysog stated staff would have to make a strong case for the positions;
provided an example of combining positions; stated planning to address the future
deficits should start now.
Councilmember Ezzy Ashcraft stated that she would favor creative solutions instead of
hiring someone.
Mayor Spencer stated employees at City Hall are working hard; a solution is needed to
Special Meeting
Alameda City Council
3
April 16, 2015",CityCouncil/2015-04-16.pdf
CityCouncil,2015-04-16,4,"reduce the pressure on the employees at City Hall.
Councilmember Oddie concurred with the Mayor.
Regarding the Staffing for Adequate Fire Emergency Response (SAFER) grant, Vice
Mayor Matarrese requested staff to review having vesting begin when the person
becomes a full time employee, rather than a temporary employee under the grant.
The Administrative Services Director responded that she is not sure if it is possible, but
staff could review the matter.
Councilmember Daysog discussed buying down the unfunded OPEB liability.
Councilmember Ezzy Ashcraft stated department cuts should be at the bottom of any
cost savings measures considered.
Councilmember Oddie stated that he would like projection calculations to be done on
the various options to close the gap.
Councilmember Daysog discussed the UUT being done on a targeted basis and the
percentage of the General Fund budget that is allocated to each department.
Mayor Spencer stated that she would like historic information on whether all
departments have had the same percentage cuts or if the amounts have differed over
time.
Regarding maritime demands, Councilmember Ezzy Ashcraft stated legislation is
pending in Sacramento which would tighten regulations, but does not include funding;
requested that the City's lobbyist look into funding.
The Assistant City Manager concluded the presentation.
The City Treasurer made brief comments on one time revenues and salaries.
Councilmember Ezzy Ashcraft encouraged the City Treasurer and staff to work
collectively.
The City Treasurer inquired whether setting staffing levels to the existing filled positions
could work.
The Assistant City Manager responded there could be savings, however, departments
which have more difficulty recruiting staff would be penalized.
Mayor Spencer requested a chart of the unfilled positions.
Urged a new façade grant program be funded; stated the City should find matching
Special Meeting
Alameda City Council
4
April 16, 2015",CityCouncil/2015-04-16.pdf
CityCouncil,2015-04-16,5,"funds for increased maintenance on Park and Webster Streets; expressed his
appreciation for the Police and Fire Departments: Robb Ratto, Park Street Business
Association.
The City Auditor encouraged the Council to be conservative.
Vice Mayor Matarrese stated the City has homework that needs to be done before
going out for a tax; that he concurs with Councilmember Daysog regarding the UUT;
stated the City has to look strategically to fund the services most venerable to cuts,
such as the Library and Recreation; he was clear about alternatives to increasing the
head count; the OPEB discussion should address the value of buying time and answer
the questions about the legal ramifications.
Mayor Spencer inquired whether the Council supports the direction being given; stated
that she supports it.
Vice Mayor Matarrese requested an explanation of the difference between running the
contributions through payroll versus other options under the agreement on the table,
and the impact of the raises; stated the City Treasurer's submittal has not been
reviewed by staff and should be done by the budget session on May 12th; guidance
should be offered on April 29th
The City Attorney stated the legal analysis is underway; inquired whether Council would
like the information to be available for the public, to which Vice Mayor Matarrese
responded in the affirmative.
The City Attorney stated that she would probably provide the Council with a confidential
memorandum as well.
Mayor Spencer inquired whether the Council agrees.
Councilmember Oddie inquired whether the matter would be addressed in a closed
session.
The City Attorney responded a closed session could be scheduled.
Councilmember Oddie stated the information should be presented in closed session
and Council could decide whether or not to waive privilege.
In response to Councilmember Ezzy Ashcraft's inquiry, the City Clerk stated the open
session starts at 5:00 p.m. on April 29th to hear from recruitment firms.
Mayor Spencer requested a closed session be held on a date prior to April 29th.
The date was discussed.
Special Meeting
Alameda City Council
5
April 16, 2015",CityCouncil/2015-04-16.pdf
CityCouncil,2015-04-16,6,"Mayor Spencer stated that she would like an earlier date so the information can be
disseminated to the public.
Councilmember Oddie stated that he would like to focus on the good news; discussed
prior Council actions, OPEB, and not cutting public safety; stated that he would like the
measures to close the gap evaluated; taxes are probably last on his list.
Councilmember Ezzy Ashcraft concurred with Councilmember Oddie; stated although
she opposes new positions, she sees the need to improve infrastructure, such as
Information Technology (IT); inquired whether said information would be included in the
presentation, to which the Assistant City Manager responded in the affirmative.
Councilmember Ezzy Ashcraft discussed public safety.
Councilmember Daysog stated Alameda has a structural deficit; stated the reserve is
from one time revues and efforts to hold costs down; revenues, such as sales tax, have
not changed much; discussed how the downside could occur just as easily; stated the
City needs to be very careful; that he would like to see an emphasis on parks and
libraries; discussed systematically underfunding departments and OPEB; stated
scenarios need to be modeled.
Mayor Spencer inquired whether an actuarial evaluation was suggested, to which the
Assistant City Manager responded in the negative; stated the City already has the
actuarial evaluation.
Mayor Spencer inquired whether the AAPS request would be brought back as part of
the budget, to which the Assistant City Manager responded the funding is not included
in the budget; staff could review the request.
Mayor Spencer stated that she would like to review the matter.
Vice Mayor Matarrese stated staff should show where funds would be taken from.
CITY MANAGER COMMUNICATIONS
None.
COUNCIL COMMUNICATIONS
(15-247) Councilmember Ezzy Ashcraft stated that she was on a panel put together by
the League of Women Voters, Association of Realtors and Alameda Home Team, which
addressed new development in Alameda and included a bus tour.
Mayor Spencer noted that she was on the bus tour.
(15-248) Councilmember Daysog stated that he attended the League of California Cities
Special Meeting
Alameda City Council
6
April 16, 2015",CityCouncil/2015-04-16.pdf
CityCouncil,2015-04-16,7,"meeting last week, which he tweeted; he also attended an Airport Noise Forum meeting,
which addressed corporate jets flying in for the Super Bowl in Santa Clara.
ADJOURNMENT
There being no further business, Mayor Spencer adjourned the meeting at 9:55 p.m.
Respectfully submitted,
Lara Weisiger
City Clerk
The agenda for this meeting was posted in accordance with the Sunshine Ordinance.
Special Meeting
Alameda City Council
7
April 16, 2015",CityCouncil/2015-04-16.pdf