pages: CityCouncil/2021-10-19.pdf, 23
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CityCouncil | 2021-10-19 | 23 | there is still the risk of whether or not now is the correct time to invest, regardless of the source of money; Council must decide whether now is the right time to invest; outlined various risk assessments; stated the most difficult part of POBs is that municipalities are not necessarily designed to take on the inherent equity risks; when all bonds changed over from fixed income investments to equities and fixed income, everyone was looking for gain to be received; equities are a rollercoaster ride; risk free options do not come with the gain of equities; the pension component adds to the equity risks and occurs with CalPERS every day; the liability will be something to live with; the risk is difficult to address; however, Council can follow systematic methods; the market timing is the primary risk to deal with. Mayor Ezzy Ashcraft stated while considering the matter, Council must simultaneously be looking at ways to keep the City's pension obligations from increasing unreasonably; discussed hiring contractors versus full-time benefitted employees and using Code Compliance Officers for inspections instead of Firefighters; stated that she looks to the City Manager to help manage pension obligations; Council cannot keep digging out of a hole with one shovel while filling with another; when staff are added, the City has to pay a long-term obligation long after the current Council. Councilmember Daysog stated Council and residents need to understand the magnitude of the decision; Council is considering issuing a POB for roughly $298 million to cover unfunded liabilities; when the interest is added, the actual amount comes out to roughly $420 million; he understands the net present value based on the discount rate; Council is considering the possibility of $420 million; he is focusing on four areas of the matter. (21-663) Mayor Ezzy Ashcraft stated a motion is needed to consider new items after 11:00 p.m. Councilmember Daysog moved approval of hearing the first two referrals. Councilmember Herrera Spencer seconded the motion, which failed by the following roll call vote: Councilmembers Daysog: Aye; Herrera Spencer: Aye; Knox White: No; Vella: No; and Mayor Ezzy Ashcraft: No. Ayes: 2. Noes: 3. Councilmember Knox White inquired whether Council Communications will still be able to be heard. The City Clerk responded in the affirmative; stated Council must consider hearing new, regular, agenda items after 11:00 p.m., not the agenda sections of Oral, Council and City Manager Communications. Mayor Ezzy Ashcraft inquired whether Council would still hear Oral and Council Communications, to which the City Clerk responded in the affirmative. Councilmember Knox White stated the remaining regular agenda item being discussed does not need a motion to continue. The City Clerk stated the remaining Consent Calendar item related to the Cultivate agreement is outstanding due to being moved to the end of the Regular Agenda. Regular Meeting Alameda City Council October 19, 2021 22 | CityCouncil/2021-10-19.pdf |