Title
Adoption of Resolution Determining that the Public Interest and Necessity Demand the Acquisition and Construction of Municipal Improvement Projects and their Financing Through the Issuance of General Obligation Bonds; [Requires four affirmative votes] and
Introduction of Uncodified Ordinance Ordering the Submission of a Measure Incurring Bonded Indebtedness to the Qualified Voters of the City of Alameda at the General Municipal Election to Be Held on November 3, 2026, for the Purpose of Financing the Cost of the Acquisition and Construction of Certain Municipal Improvement Projects. [Requires four affirmative votes]
(City Manager 10021030)
Body
To: Honorable Mayor and Members of the City Council
From: Gerry Beaudin, City Manager
EXECUTIVE SUMMARY
The City of Alameda (City) faces significant and growing infrastructure funding gap. Aging public facilities, deferred maintenance, and increasing climate-related and natural disaster risks collectively exceed available funding resources by over $800 million. As a low-lying island community, Alameda faces unique challenges associated with flooding, sea level rise, groundwater rise, earthquakes, and severe storms that threaten residents, businesses, and critical public infrastructure. Despite careful stewardship of existing resources, available funding is insufficient to address the scale of the City’s infrastructure and resilience needs.
Recognizing these challenges, the City’s adopted Strategic Plan includes exploring a general obligation (GO) bond or other revenue measure to fund replacement of existing facilities and the financing of new infrastructure needs. Based on identified needs, community engagement, and public polling, staff recommends placing a $300 million GO bond (also referred to as an infrastructure bond) on the November 3, 2026 ballot to allow Alameda voters to decide whether to authorize this investment. If approved by the voters, the bond would be repaid through a dedicated ad valorem property tax levied on taxable property in the City and would not be paid from other City funds.
Under existing law, passage of a GO bond requires two-thirds of those voting on the measure to vote in favor.
To place the measure before voters, the City Council must adopt a Resolution declaring that public interest and necessity demand the issuance of the GO bond to finance authorized improvements and introduce an Ordinance submitting a GO Bond measure to voters. If City Council approves these items, staff will return with the Ordinance adoption and 75-word ballot measure label for City Council’s consideration at its meeting on July 21, 2026.
BACKGROUND
For many years, the City has faced growing infrastructure needs that exceed available funding resources. These needs include aging public facilities, deteriorating streets and transportation infrastructure, stormwater and shoreline improvements, and investments necessary to prepare Alameda for the impacts of climate change and other natural disasters.
In 2018, City Council considered various revenue measure options to address a variety of local funding needs and ultimately placed a sales tax measure before voters, which was approved by 61.5% of voters.
In 2020, City Council was preparing to consider an additional revenue measure to address infrastructure and a variety of community needs, but those discussions were postponed due to the COVID-19 pandemic and resulting economic uncertainty.
In 2024, staff identified over $800 million in deferred maintenance and unfunded infrastructure needs throughout the City. City Council considered placing a $150 million GO bond on the November 2024 ballot. The measure did not receive sufficient votes by City Council to be placed on the ballot and City Council directed staff to complete additional work to refine the project needs and come back at a future date.
Today, Alameda faces infrastructure challenges in three primary areas: sea level rise and flood protection, public safety facilities, and street pavement condition and roadway safety.
Sea Level Rise and Flood Protection
Alameda faces increasing risks from sea level rise, groundwater rise, and more frequent and severe flooding associated with climate change. As a low-lying island community, Alameda is particularly vulnerable to both coastal and inland flooding hazards with portions of the City’s shoreline already experience flooding during major storms and extreme high tide events. Recent winter storms have further highlighted these vulnerabilities, resulting in flooded roadways, shoreline damage, and emergency declarations. These impacts underscore the growing frequency and severity of extreme weather events and the compounding effects of storm surge, high tides, intense rainfall, rising groundwater, and sea level rise on Alameda’s infrastructure, shoreline, and community resilience.
To address these growing risks, the City is advancing a series of shoreline adaptation projects across Alameda, including projects at Bay Farm Island, the Oakland-Alameda Estuary near the Posey-Wester Tubes South Shore Beach, and at Alameda Point. These projects are designed to address current flooding and prepare for future sea level and groundwater rise through a combination of shoreline protection, nature-based solutions, stormwater improvements, and infrastructure upgrades. The City is also developing a comprehensive Shoreline Adaptation Plan to identify adaptation strategies, prioritize investments, and guide implementation over time.
Adapting to climate change represents a significant portion of Alameda’s unmet infrastructure needs. While the City has successfully secured state and federal grants to support resilience planning and project development, many grant programs require local matching funds. This creates an ongoing need for City resources to leverage outside funding opportunities. Some funding sources, such as FEMA's Building Resilient Infrastructure and Communities (BRIC) program, have been canceled or reduced by the current administration. Alameda does not currently have a revenue source to fund adaptation projects. Alameda’s strategy continues to be to pursue state and federal grants where possible to fund the hundreds of millions of dollars needed to implement these critical projects over time. Creating a sustainable source of funds to provide the local match to these grants will help Alameda unlock significant additional grant revenue for Alameda to address critical needs that may not be prioritized by other grant programs.
Public Safety Facilities
The City also faces substantial capital investment needs associated with its public safety facilities. As a separate item on this City Council agenda, City Council will consider approval of an Alameda City Facilities Plan. As noted in the plan, Fire stations 1, 2 and 4 require seismic upgrades and modernization to meet current operational, health, and safety standards. These facilities were constructed before modern firefighter decontamination and cancer-prevention standards were established, and do not adequately support current emergency response operations.
Fire Station 2, located on Pacific Avenue, is 105 years old and requires significant investment to extend its useful life for several more decades. By comparison, expected useful life of a fire station is generally 50 to 75 years. In addition, the 2024 Community Risk Assessment and Standards of Coverage (CRA/SOC) analysis identified the need for a new Fire Station 5 on the West End of Alameda to meet emergency response performance standards, including those established by NFPA 1710. Currently, when Station 2 resources are committed outside their primary service area, coverage gaps are created within District 2. These gaps require resources from District 3 to respond to calls for service, creating a cascading impact on emergency response coverage throughout the community. This system-wide strain leads to longer response times Citywide, reduced resource availability, and decreased operational resiliency.
In addition to well-maintained Fire stations, effective emergency response depends on a reliable and operational vehicle fleet. The City’s Fleet Maintenance Facility, which serves as the maintenance and repair center for the City’s fleet of public safety, public works, and other municipal vehicles, was constructed in 1969 and has exceeded its useful life. The building is no longer adequately sized to accommodate the City’s larger and increasingly complex fleet, including fire trucks, police vehicles and other emergency response vehicles. Its outdated design, limited workspace, and constrained location reduce operational efficiency and can contribute to longer vehicle maintenance times and increased downtime for emergency response vehicles. To better support public safety, relocation of the Fleet Maintenance Facility is recommended, potentially as part of a shared Civic facility that could accommodate other municipal uses.
Similarly, the Alameda Police Department headquarters faces operational and facility limitations that affect efficiency and long-term service delivery. Investment in these facilities is necessary to ensure reliable emergency response capabilities and support the City's public safety mission.
While the City continues to pursue state and federal funding opportunities where available, many public facility projects either do not qualify for grant funding or require substantial local matching funds. Sustainable local funding will be necessary to leverage external funding opportunities, replace or modernize critical facilities, improve public safety and service delivery, and ensure that essential City operations can continue to meet the needs of Alameda residents for decades to come.
Street Pavement Condition and Roadway Safety
Alameda's roads also require significant ongoing investment. Although the City receives transportation revenues through Measure B/BB, Gas Tax, and Vehicle Registration Fees, these sources are not keeping pace with the growing demands of the City’s aging infrastructure. Additional local investment is necessary to pave more roads, fill more potholes, repair more sidewalks to comply with the Americans with Disabilities Act (ADA), and improve the safety of Alameda’s roads.
DISCUSSION
The recommendation before the City Council is the culmination of several years of infrastructure planning, community engagement, emergency response analysis and Strategic Plan implementation.
On November 21, 2023, City Council adopted its three-year Strategic Plan, which includes direction to explore potential revenue measures to address deferred maintenance, improve fiscal resilience, and fund critical infrastructure investments. Specifically, Strategic Plan Actions GOV15 and GOV15b direct staff to evaluate revenue options, including a general obligation bond, to address the City's growing infrastructure needs.
Consistent with this direction, staff presented a series of four workshops to update the City Council and community on the City’s infrastructure and facility needs. Staff also conducted broad community outreach through Citywide mailers, a community engagement survey, social media posts, email bulletins, community conversations, presentations and direct outreach to community groups.
The community survey generated responses from more than 1,700 Alamedans - over 600 residents returned the survey by mail and over 1,000 participated online - sharing their priorities for public safety and community infrastructure, streets and roads, and protecting our shorelines. Nearly 700 residents also left written comments to provide additional feedback. Respondents identified a clear set of community priorities, with over 89% rating the following issues as a high or medium priority for the City: addressing sea-level rise, maintaining stormwater infrastructure, supporting public safety, and repairing potholes.
In addition to staff-led outreach, the City worked with Fairbank, Maslin, Maullin, Metz & Associates (FM3), a highly experienced opinion polling consulting firm the City has worked with for more than 16 years, to conduct statistically valid polling of likely voters on the need for infrastructure funding and their priorities for a proposed infrastructure bond measure. The results of the polling will be presented at the July 7, 2026 City Council meeting.
If City Council decides to place a bond measure on the ballot, the ballot question is expected to be substantially similar to the following language:
SAFER Alameda Act - Preparing Alameda for Sea-Level Rise, Accidents, Flooding, Earthquakes, Resilience.
To prepare for emergencies, earthquakes and sea-level rise; prevent flooded Tubes; repair potholes; keep streets safe and accessible; maintain response to fires, accidents, and medical emergencies; prevent Bay pollution; and protect shorelines; shall the City of Alameda measure issuing $300,000,000 in bonds, levying $49/ $100,000 of assessed value, generating approximately $19,000,000 annually while bonds are outstanding, requiring oversight, public disclosures, and local control, be adopted?
Based on the City’s growing infrastructure needs, the adopted Strategic Plan and Climate Action and Resilience Plan (CARP), community outreach and recent polling, staff recommends placing a GO bond of $300 million on the November 3, 2026 ballot. GO Bonds, if approved by the voters, would be repaid from a dedicated ad valorem property tax levied on taxable property in the City and would not be paid for by any other City funds. Bond proceeds would be restricted to authorized capital improvements and could not be used for City operations or other purposes.
As noted in the proposed Ordinance, if the measure is supported by voters, monies raised will go to the following capital improvement projects falling into the following categories:
• Preventing Flooding and Combating Sea-Level Rise
Examples include the following capital improvement projects
o Levees, sea walls, flood walls, ecosystem restoration and nature-based solutions to mitigate shoreline flooding from sea level rise
o Stormwater detention basins to expand stormwater storage capacity
o Replacement of storm drain pipes and culverts, and drainage improvements to reduce surface flooding
o Storm pump station upgrades
• Preparing for Earthquakes and Emergencies
Examples include the following capital improvement projects
o Fire Stations 1, 2 and 4 earthquake retrofits and other safety-related improvements
o Structural improvements to the Alameda Police Department and improvements to optimize the use of existing, including construction of an evidence storage room
• Maintaining Rapid Response to Fires, Accidents, and Medical Emergencies
Examples include the following capital improvement projects
o Construct new Fire Station 5 on the West End of Alameda, including the relocation and consolidation of Fire Admin, Fire Prevention, Emergency Medical Services at the new site
o Relocate and build Fleet Services Maintenance Facility, possibly as part of shared Civic Facility including other municipal operations, and charging infrastructure for the fleet
• Repairing Potholes and Keeping Streets Safe and Accessible
Examples include the following capital improvement projects
o Paving streets and repairing potholes
o Sidewalk and park ADA improvements
o Traffic signal upgrades to improve traffic flow and limit congestion
o Street safety improvements to reduce crashes and improve traffic at intersections
• Keeping Pollution Out of the Bay
Examples include the following capital improvement projects
o Storm system upgrades that may include trash capture, pollution control, green infrastructure and other related improvements
Placing a GO bond measure on the ballot requires the City Council to take the following legislative actions:
• Adoption of Resolution of Necessity - indicating the public interest and necessity demand issuance of the GO bond to finance the authorized improvements. [July 7, 2026 City Council Meeting]
• Introduction and Adoption of Ordinance Submitting GO Bond Measure to Voters - identifying the objects and purposes of the bonds, the estimated cost of the improvements to be financed, accountability requirements applicable to the bonds, and related matters. [July 7, 2026 City Council Meeting; July 21, 2026 City Council Meeting for approval]
• Adoption of Resolution Placing Measure on Ballot - approving the 75-word ballot measure label and other particulars concerning the conduct of the election, which will be considered when the Ordinance returns for adoption. [July 21, 2026 City Council Meeting, if previous actions adopted at July 7 Meeting]
Both the Resolution of Necessity and the Ordinance must be approved by City Council by four affirmative votes. If City Council votes to place the GO Bond measure on the ballot, City voters will have the ability to vote on the measure in November.
Under existing law, passage of a GO bond requires two-thirds of those voting on the measure to vote in favor. If City voters approve the GO bond measure by the requisite percentage, the City could tackle a significant amount of unfunded infrastructure needs. Bonds are likely to be issued in multiple phases and many of the improvements that could be funded by bond proceeds would last for many decades. Bond proceeds are restricted to capital projects, so there is no possibility that bond proceeds could fund operations, or for that matter any other purposes.
The proposed GO Bond measure requires transparency and accountability over and above the City’s existing budget requirements. The proposed Ordinance includes a City Council appointed oversight committee for the Bonds, which shall have responsibility for reviewing and reporting on the expenditure of the Bond proceeds. In addition, all proceeds of the Bonds will be deposited and maintained in a separate City fund. The Finance Director will file an annual report with City Council on the Bond proceeds collected and expended.
Any action taken by the City Council this evening to advance this measure to the November ballot is not a vote to support or oppose the measure. While City Council has the right to take a formal position on this measure if it chooses, tonight’s action is simply whether to advance the measure forward so that Alameda voters have the opportunity to consider it and decide in November. When the resolution placing the measure on the ballot is considered at the next meeting, the City Council can also decide about submitting arguments and rebuttal concerning the measure.
If the ballot measure is approved by Alameda’s voters, property owners can expect an average levy of $49 per $100,000 of assessed value per year while Bonds are outstanding. Given multiple series of 30-year bonds are contemplated, the levy is likely to exceed 30 years. If approved, the City will be able to address significant infrastructure needs before these costs increase further. Individual property owners may also benefit from savings from fewer automobile repairs, as Californians pay an estimated $800 per year in unexpected vehicle repairs required by damage from potholes and poorly maintained streets and roads. Shoreline protection improvements can also help remove neighborhoods from the FEMA floodplain, saving residents on flood insurance premiums and the cost of flood related damage to homes and businesses. Additionally, the fire department's ability to maintain a high Insurance Services Office (ISO) rating by meeting industry-standard response times can have a positive impact on fire insurance rates for residents
The City’s infrastructure needs will not diminish over time, and the cost of addressing them is expected to continue increasing. Construction costs, labor expenses, and material prices have risen significantly in recent years, resulting in higher project costs and reduced purchasing power for available funding. Delaying critical infrastructure investments may require the City to spend substantially more in the future to address the same needs, while allowing facilities and infrastructure to deteriorate further. Advancing these projects now would help preserve public assets, reduce the risk of more costly repairs or failures, and provide greater long-term value for taxpayers.
ALTERNATIVES
• Adopt the proposed Resolution of Necessity and introduce the Ordinance ordering the submission of a $300 million GO bond measure to the qualified voters of the City of Alameda at the General Municipal Election to be held on November 3, 2026.
• Provide alternative direction to staff regarding options for addressing the City’s infrastructure funding needs.
• Take no action.
FINANCIAL IMPACT
Since the City will have an election in November 2026, there is an additional cost of approximately $40,000 to place one measure on the ballot. If two measures are placed on the ballot, it would cost approximately $20,000 more for each additional measure up to four measures. The total cost of consolidating the election could potentially double if over five measures are placed on the ballot. Funds are available in the General Fund, City Clerk’s Department (10022022).
The fiscal impact of this GO Bond, if approved by the voters, will provide the City the funding to accomplish numerous necessary and important infrastructure improvements that the City would otherwise be unable to accomplish. The bonds are intended only to fund capital projects that would not otherwise be addressed due to a shortage of funds and are not intended to be used to maintain spending levels previously supported by other revenue sources, including the General Fund.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code and is included in the 2023-2026 Strategic Plan under GOV15, explore potential revenue measures that increase fiscal resilience and implement the City Council’s strategic priorities, and GOV15b, explore a general obligation bond or other revenue measure to fund deferred maintenance and new infrastructure needs.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required. For purposes of CEQA, a project does not include the creation of government funding mechanisms or other government fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant impact on the environment.
CLIMATE IMPACT
The ability of the City to meet the challenge of reducing its greenhouse gas emissions, protect the shoreline from natural disasters such as flooding, rising sea and ground water levels, erosion, and earthquakes, and respond to more frequent and intense storms will require significant new funding sources. This action is the first step in exploring a revenue measure that could significantly help support the City’s efforts to address climate change.
RECOMMENDATION
Adopt a resolution determining that the public interest and necessity demand the acquisition and construction of municipal improvement projects and their financing through the issuance of General Obligation Bonds; and introduce an uncodified ordinance ordering the submission of a measure incurring bonded indebtedness to the qualified voters of the City of Alameda at the General Municipal Election to be held on November 3, 2026, for the purpose of financing the cost of the acquisition and construction of certain municipal improvement projects.
Respectfully submitted,
Erin Smith, Public Works Director
Nicholas Luby, Fire Chief
Danielle Mieler, Sustainability and Resilience Manager
Financial Impact section reviewed,
Ross McCarthy, Finance Director
Exhibit:
1. Community Outreach Materials