pages: CityCouncil/2011-12-20.pdf, 3
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CityCouncil | 2011-12-20 | 3 | longer an Enterprise Fund. Mayor Gilmore inquired whether the Enterprise Fund would still pay into Internal Service Funds, but not cost allocation, to which the Assistant City Manager responded cost allocation is internal service and would cease administratively. Mayor Gilmore stated services would still be provided; the City should continue to charge the Golf Enterprise Fund for overhead costs until a decision is made about outsourcing to an operator or until a cost allocation study is done to see if costs need to be allocated differently. The City Manager stated the issue could be handled administratively after the internal study has been completed. Councilmember Johnson stated that she does not think Council's intent has been to cease cost allocation; other departments would have to subsidize the Golf Course if the Golf Course did not pay cost allocation. The City Manager stated staff would come back to Council after the study is completed. Mayor Gilmore stated that she has a problem with treating one Enterprise Fund differently from others. The City Manager stated the Golf Course has not always been an Enterprise Fund; staff anticipates handling services in different ways, such as the Animal Shelter; by character, the Golf Course is a recreation facility; treating the Golf Course differently from other sports does not make a lot of sense from a policy standpoint; AMP and the Sewer Fund have lots of reasons to be separate Enterprise Funds; the idea of the PILOT is to capture the amount that the land could have generated in property taxes; the same logic applies to every piece of City land. Councilmember Tam stated that she disagrees with the City Manager; historically, the golf complex had been a part of the Recreation and Parks Department and then became an enterprise fund; the Golf Course should absorb costs like any other department. The City Manager stated function should be the issue, not form. Councilmember Tam stated that she chooses not to exempt the Golf Enterprise Fund from the PILOT. The City Manager stated the issue is whether it is more important to be consistent in terminology versus form; the Golf Course is underwater from an asset perspective; shutting down the Golf Course is not an option. Councilmember deHaan inquired when the PILOT was established, to which the Special Meeting Alameda City Council 3 December 20, 2011 | CityCouncil/2011-12-20.pdf |