pages: CityCouncil/2022-03-15.pdf, 14
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CityCouncil | 2022-03-15 | 14 | modifications; the City has to do something to get a handle on the pension and OPEB costs; noted Hayward is also addressing the issue. Councilmember Daysog expressed concern about the OPEB formula; stated $37 million has been allocated to buy down pension and OPEB obligations; the City has $356 million in unfunded OPEB and CalPERS pension liabilities, of which $277 million is a CalPERS liability; clearly, the City needs to find a way to buy down the unfunded liability, but what is in place is not the right formula; the people of Alameda need to be involved when $37 million is spent; an additional $9 million is being spent; in the audit for the past two fiscal years, spending came in approximately $13 million under for both years; underspending ends up increasing the reserve; he will not support the staff recommendation because the issue needs to be fixed; he is not saying nothing should be spent on the unfunded liabilities, but $37 million is way out there and the residents need to be involved; if the formula is reasonable, he thinks residents would support it. The City Manager stated that his recommendation is to set aside the funding until the Council reviews the policy at the budget workshop at which time Council could decrease the amount. Councilmember Knox White stated adoption of the Vision Zero Action Plan included direction to put $2 million towards new safety projects; inquired whether the amount is included in the budget. The Assistant City Manager responded the $2 million set aside is not currently budgeted, but it can be in place for the budget workshop; stated the mid-year budget is technical fixes and the mid-cycle budget is the opportunity to address policies and priorities. Councilmember Knox White stated in December, the Council wanted fast and decisive action; expressed concern about the money not being used until July and waiting until May to talk about it; stated that he expects a funded program based on the Council direction to be presented at the budget workshops. Mayor Ezzy Ashcraft stated the Council priority setting prior to the budget workshops is another opportunity for Council to prioritize staff work. The City Manager stated the matter can be addressed in the mid-cycle; he met with the Public Works and Planning, Building and Transportation Directors about the matter; both want to expedite projects in the pipeline and already have funding; the issue is getting the funding spent, which they want to do; he will get an update and follow up. Councilmember Knox White expressed concern about Council giving direction and decisions being made that the money cannot be spent after Council made a commitment to the community; a plan is needed at the upcoming workshops. The City Manager stated the items are already included in the mid-cycle budget. Councilmember Daysog stated that he is voting no with the utmost respect to City staff who did great work. On the call for the question, the motion carried by the following vote: Councilmembers Daysog: No; Herrera Spencer: No; Knox White: Aye; Vella: Aye; and Mayor Ezzy Ashcraft: Aye. Ayes: 3. Regular Meeting Alameda City Council March 15, 2022 12 | CityCouncil/2022-03-15.pdf |