Title
Minutes of the Special City Council Meeting Held on April 16, 2015; the Special and Regular City Council Meetings Held on April 21, 2015; the Special City Council Meetings Held on April 28 and 29, 2015. (City Clerk)
Body
UNAPPROVED
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 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 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 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 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.
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 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.
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UNAPPROVED
MINUTES OF THE SPECIAL CITY COUNCIL MEETING
TUESDAY- -APRIL 21, 2015- -6:00 P.M.
Mayor Spencer convened the meeting at 6:01 p.m.
Roll Call - Present: Councilmembers Daysog, Ezzy Ashcraft, Matarrese, Oddie and Mayor Spencer - 5.
Absent: None.
Public Comment
Ken Peterson, Alameda, discussed Mammoth Lakes; urged contracts with employees be carefully constructed, which was not the case with the Del Monte.
The meeting was adjourned to Closed Session to consider:
(15-249) Conference with Labor Negotiators (54957.6); City Negotiator: John Russo; Employee Organizations: Public Safety Unions (International Association of Fire Fighters (IAFF), Alameda Fire Chiefs Association (AFCA). Alameda Police Officers Association (APOA) and Alameda Police Managers Association (APMA)); Issue Under Negotiation: Post Employment Benefits
Following the Closed Session the meeting was reconvened and Mayor Spencer announced that direction was given to staff.
Adjournment
There being no further business, Mayor Spencer adjourned the meeting at 7:02 p.m.
Respectfully submitted,
Lara Weisiger, City Clerk
The agenda for this meeting was posted in accordance with the Sunshine Ordinance.
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UNAPPROVED
MINUTES OF THE REGULAR CITY COUNCIL MEETING
TUESDAY- APRIL 21, 2015- -7:00 P.M.
Mayor Spencer convened the meeting at 7:09 p.m. Lincoln Middle School students led the Pledge of Allegiance.
ROLL CALL - Present: Councilmembers Daysog, Ezzy Ashcraft, Matarrese, Oddie and Mayor Spencer - 5.
Absent: None.
AGENDA CHANGES
(15-250) Mayor Spencer announced that the resiliency report [paragraph no. 15-272] withdrawn from the agenda.
PROCLAMATIONS, SPECIAL ORDERS OF THE DAY AND ANNOUNCEMENTS
(15-251) Proclamation Declaring April 19 through 25, 2015 as Arbor Week in Alameda.
Mayor Spencer read and presented the Proclamation to Jesse Barajas, Public Works Maintenance Superintendent.
(15-252) Proclamation Declaring April 25, 2015 as Earth Day in Alameda.
Mayor Spencer read and presented the Proclamation to Wood and Lincoln School students.
(15-253) Proclamation Declaring the Month of May as Asian Pacific Heritage Month.
Mayor Spencer read and presented the Proclamation it to Dennis and Virginia Chang.
ORAL COMMUNICATIONS, NON-AGENDA
(15-254) Ken Peterson, Alameda, expressed his appreciation for the City Manager's service; stated public policy decisions need to be addressed.
(15-255) Jim Strehlow, Alameda, expressed his opposition to the City spending $400,000 for a consultant to develop a transportation plan; suggested hiring City staff instead.
Councilmember Daysog noted that he accepts responsibility for the plan moving forward.
(15-256) Former Councilmember Lil Arnerich, Alameda, expressed his thanks for the City Manager and Assistant City Manager.
(15-257) Robin Gilbert, Alameda, urged the Council to not take action on the public safety contracts, including receiving input from a pension expert.
CONSENT CALENDAR
Mayor Spencer announced that the BKF contract [paragraph no. 15-262] and the Police boat purchase [paragraph no. 15- 263] were removed from the Consent Calendar for discussion.
Councilmember Ezzy Ashcraft moved approval of the remainder of the Consent Calendar.
Councilmember Oddie seconded the motion, which carried by unanimous voice vote - 5. [Items so enacted or adopted are indicated by an asterisk preceding the paragraph number.]
(*15-258) Minutes of the Special Meetings Held on March 10, 2015, and the Special and Regular Meetings Held on March 17, 2015. Approved.
(*15-259) Ratified bills in the amount of $4,059,442.98.
(*15-260) Recommendation to Accept the Quarterly Report on Litigation and Liability Claims Settlements Paid During the Period October to December 2014. Accepted.
(*15-261) Recommendation to Authorize the City Manager to Enter into a Purchase Agreement in an Amount Not to Exceed $32,133 for the Replacement of One Park Maintenance Mower and to Amend Equipment Replacement Fund Expense Budget by $12,238. Accepted.
(15-262) Recommendation to Award a Contract in the Amount of $205,503, Including Contingency, to BKF Engineers for the Design of the Cross Alameda Trail, Webster Street to Sherman Street through Jean Sweeney Open Space Park.
Councilmember Daysog stated the trail is an important project; that he looks forward to the design; key things include a clear scope of work and expectations which can apply to a variety of projects and workable traffic solutions.
Councilmember Ezzy Ashcraft stated the BKF contract is funded by a federal grant and a local match that comes from the Measure B Transportation Sales Tax and the Open Space Fund.
Councilmember Daysog moved approval of the staff recommendation.
Vice Mayor Matarrese seconded the motion, which carried by unanimous voice vote - 5.
(15-263) Summary Title: Authorize the Acquisition of One Police Boat and Trailer for $202,832.33 Recommendation to: (1) Approve an Agreement with Lake Assault Boats, LLC for the Acquisition of One Marine Patrol Boat and Trailer for $185,235 Plus the City's Payment of Applicable Sales Tax for a Total Aggregate Amount Not to Exceed $202,832.33;
(2) Amend Police Grants Funds Revenue Budget to Account for the California Division of Boating and Waterways (DBW) Grant in the Amount of $80,000; and
(3) Amend Police Grants Expenditures Budget in the Amount of $202,832.33 for Both the DBW and Citizens Option for Public Safety (COPS) Grants. Accepted.
Expressed support for the City having a Police boat; stated the old boat is irreparably damaged and the new boat is grant funded; grant funds are also available for abating vessels: Kurt Braun, Alameda.
Expressed support for the patrol boat, which is critical; stated there will be no impact to the general fund; the boat is all weather: Brock de Lappe, Alameda.
Urged approval: Robb Ratto, Park Street Business Association.
Councilmember Oddie moved approval of the staff recommendation to authorize the acquisition of one Police boat and trailer for $202,832.33.
Vice Mayor Matarrese seconded the motion.
Under discussion, Councilmember Ezzy Ashcraft stated the new boat is being custom built for Alameda and is estimated to last 15 years; thanked the Police Chief for finding grant funds for the boat.
Mayor Spencer thanked the Police Chief for addressing Council questions in advance of the meeting.
On the call for the question, the motion carried by the following voice vote - 5.
REGULAR AGENDA ITEMS
(15-264) Resolution No. 15017, "Commending John A. Russo for His Service to the City of Alameda as City Manager." Adopted.
Mayor Spencer read the resolution.
Councilmember Ezzy Ashcraft moved adoption of the resolution.
Councilmember Daysog seconded the motion.
Under discussion, Councilmember Ezzy Ashcraft stated the City Manager has had big accomplishments in Alameda, including the conveyance of the Naval Air Station and his work with labor groups; the City of Riverside is fortunate to have him.
Thanked the City Manager and Assistant City Manager for their service: Gray Harris, Democratic Club.
Stated the City Manager has assembled a fine team; outlined accomplishments: Helen Sause, Alameda Home Team.
Stated the City Manager has propelled the City: Diane Lichtenstein, Alameda.
Thanked the City Manager and Assistant City Manager for their service and for bringing dignity and respect to City Hall: Jeff DelBono, Firefighters Association.
Thanked the City Manager; stated he has been one of the best City Manager's in the City: Karen Bey, Alameda.
Councilmember Oddie stated it is not often a city is blessed with such a talented City Manager; Alameda got Michael Jordan and Scottie Pippin; that he will miss the City Manager and Assistant City Manager.
Councilmember Daysog stated the City Manager stands out as one of the best in Alameda and has taken Alameda in the right direction, internally and externally; the City Manager and Assistant City Manager made Alameda much richer.
Vice Mayor Matarrese stated that he hopes people understand how difficult the City Manager job is; wished the City Manager and the Assistant City Manager the best in Riverside.
The Assistant City Manager announced a farewell party for the City Manager and Assistant City Manager; stated the City Manager brought transparency and accountability to City Hall; the Assistant City Manager provided staff the perspective of the average citizen; wished then both the best of luck.
Mayor Spencer stated she had the privilege of working with the City Manager while she was on the School Board; the City Manager is professional and she respects his work; wished the City Manager and the Assistant City Manager the best.
On the call for the question, the motion carried by unanimous voice vote - 5.
(15-265) Resolution No. 15018, "Commending Alexander Nguyen for His Service to the City of Alameda as Assistant City Manager." Adopted.
Mayor Spencer read the resolution.
Councilmember Oddie moved adoption of the resolution.
Councilmember Ezzy Ashcraft seconded the motion.
Thanked the Assistant City Manager and the City Manager: Robb Ratto, PSBA.
Councilmember Oddie stated that he has a special appreciation for the Assistant City Manager as the City Manager's right hand man, as he does the same in his day job; that he will miss the Assistant City Manager and wished him good luck.
Councilmember Ezzy Ashcraft wished the Assistant City Manager the best of luck.
Councilmember Daysog stated that he appreciates the Assistant City Manager's service to Alameda.
Vice Mayor Matarrese thanked the Assistant City Manager for giving him access to City Manager's office and wished him much success.
Mayor Spencer stated people may not realize what a team the City Manager and the Assistant City Manager are; the Assistant City Manager was the go-to person for staff and community members; wished him the best.
On the call for the question, the motion carried by unanimous voice vote - 5.
(15-266) Introduction of Ordinance Amending the Alameda Municipal Code by Adding Chapter VI, Article XIII, Section 6-56 to Impose Requirements Relating to the Retention of Grocery Workers in Certain Circumstances Involving the Transfer of Ownership of Large Grocery Establishments. Introduced.
The Community Development Director gave a brief presentation.
Urged adoption of the ordinance: Jeff DelBono, Alameda Firefighters.
Urged adoption of the ordinance; stated employer changes are tough on employees, which is addressed by the ordinance; discussed WalMart's effort to locate in urban areas; suggested reducing the trigger to 10,000 square foot: Mike Henneberry, Alameda resident and Local 5.
Stated the ordinance is a real estate encumbrance; no ordinance has been passed in the last 8 years; the ordinance can create issues on the sale of grocery stores: Tim James, Alameda Grocers Association.
Expressed support for the grocery workers and the ordinance: Gray Harris, Alameda.
Expressed support for retaining the work force: William Smith, Alameda.
Councilmember Ezzy Ashcraft stated there is a public health and safety issue at stake; ensuring people retain their jobs is important; that she supports the measure as currently drafted by the City Attorney's office.
Vice Mayor Matarrese stated protection is necessary for economic development and for the people who service those stores.
Councilmember Daysog stated the ordinance is one way to help working families in an era of change in the grocery industry; Alameda grocery stores are a part of the community; Alameda's ordinance should remain aligned with the Los Angeles model.
Mayor Spencer stated the ordinance brings balance, allows current workers a job for 90 days, and a great benefit to the community; that she supports the ordinance.
Councilmember Oddie stated ownership transfer is disruptive to employers; Alameda's large stores are anchors to the neighborhoods; workers play a vital part in the community; preserving a sense of security is worthwhile for the employees.
Councilmember Ezzy Ashcraft moved introduction of the ordinance amending the Alameda Municipal Code by adding Chapter VI, Article XIII, Section 6-56 to impose requirements relating to the retention of grocery workers in certain circumstances involving the transfer of ownership of large grocery establishments.
Councilmember Oddie seconded the motion, which carried by unanimous voice vote - 5.
(15-267) Summary Title: Complete Actions to Expand Municipal Services and Territory for Financing District at Alameda Landing and Levy of Corresponding Special Tax - Community Facilities District (CFD) No. 13-2 (Alameda Landing Municipal Services District)
Resolution No. 15019, "Calling Special Election Regarding Alteration of the Municipal Services to be Financed by Community Facilities District No. 13-2 (Alameda Landing Municipal Services District); Conducting Special Election." Adopted;
(15-267 A) Resolution No. 15020, "Declaring Results of Special Election in Community Facilities District No. 13-2 (Alameda Landing Municipal Services District), Determining that the Alteration of Municipal Services to be Financed by the District are Lawfully Authorized, and Directing Recording of an Amendment to Notice of Special Tax Lien." Adopted;
(15-267 B) Resolution No. 15021, "Annexation of Territory to the City of Alameda Community Facilities District No. 13-2 (Alameda Landing Municipal Services District), Authorizing the Levy of a Special Tax Therein and Submitting Levy of Special Tax to Qualified Electors; Conducting Special Election." Adopted; and
(15-267 C) Resolution No. 15022, "Declaring Results of Special Annexation Election, Determining the Validity of Prior Proceedings, and Directing Recording of Amendment to Notice of Special Tax Lien - Alameda Landing Municipal Services District." Adopted.
The Community Development Director gave a brief presentation.
In response to Vice Mayor Matarrese's inquiry, the Community Development Director stated there are two separate CFDs which assess tax on the property owners: CFD 13-2 relates to the funding of municipal services and cost to maintain the backbone infrastructure; the second relates to the authority to issue bonded indebtedness to reimburse Catellus for public improvements.
Vice Mayor Matarrese inquired whether the tax assessment requires an election, to which the Community Development Director responded in the affirmative; stated both CFDs require an election; proceedings this evening involve the property owners.
In response to Councilmember Daysog's inquiry regarding moving the USS Hornet, the Community Development Director stated all proposed work is predicated on the need to stabilize the existing wharf and park improvements, and is not tied to the relocation of the USS Hornet.
Mayor Spencer opened the Public Hearing for alteration of the District.
There being no speakers, Mayor Spencer closed the Public Hearing.
In response to Vice Mayor Matarrese request for a summary of the residential component, the Community Development Director stated Alameda Landing Phase 2 is currently zoned as mixed-use planned development (MXPD) and is approximately 40 acres, of which 10 acres have a multi-family overlay; in addition to the MXPD zoning, Catellus is working on master planning for Phase 2; a land use proposal is not completed at this time; Catellus will be working with staff on the entitlement process.
Vice Mayor Matarrese inquired how many units are on the 10 acres, to which the Community Development Director responded 300 units.
Mayor Spencer inquired whether zoning would be impacted, to which the Community Development Director responded in the negative.
In response to Vice Mayor Matarrese's inquiry, the Community Development Director stated land inventory is carried over in the 2007-2015 Housing Element as part of the multi-family overlay approved in 2012.
Councilmember Ezzy Ashcraft moved adoption of the resolution calling special election regarding alteration of the municipal services to be financed by Community Facilities District No. 13-2 (Alameda Landing Municipal Services District).
Councilmember Daysog seconded the motion, which carried by unanimous voice vote - 5.
Mayor Spencer asked the City Clerk to open the ballots and announce the results.
The City Clerk opened the ballot an announced 47 votes were cast in favor with zero opposed.
Mayor Spencer stated all votes being in favor, the Council may proceed with final actions.
Vice Mayor Matarrese moved adoption of the resolution declaring results of special election in Community Facilities District No. 13-2 (Alameda Landing Municipal Services District), determining that the alteration of municipal services to be financed by the District are lawfully authorized, and directing recording of an amendment to Notice of Special Tax Lien.
Councilmember Ezzy Ashcraft seconded the motion, which carried by unanimous voice vote - 5.
Mayor Spencer opened the Public Hearing for annexation of the District.
There being no speakers, Mayor Spencer closed the Public Hearing.
Councilmember Ezzy Ashcraft moved adoption of the resolution of annexation of territory to the City of Alameda Community Facilities District No. 13-2 (Alameda Landing Municipal Services District), authorizing the levy of a special tax therein and submitting levy of special tax to qualified electors.
Vice Mayor Matarrese seconded the motion, which carried by unanimous voice vote - 5.
Mayor Spencer asked the City Clerk to open the ballots and announce the results.
The City Clerk opened the ballot an announced 50 votes were cast in favor with zero opposed.
Mayor Spencer stated all votes being in favor, the Council may proceed with final actions.
Councilmember Daysog moved adoption of the resolution declaring results of special annexation election, determining the validity of prior proceedings, and directing recording of amendment to Notice of Special Tax Lien - Alameda Landing Municipal Services District.
Councilmember Oddie seconded the motion, which carried by unanimous voice vote - 5.
(15-268) Summary Title: Complete Actions to Expand Public Improvements and Territory for Financing District at Alameda Landing and Levy of Corresponding Special Tax - Community Facilities District (CFD) No. 13-1 (Alameda Landing Public Improvements)
Resolution No. 15023, "Calling Special Election Regarding Alteration of the Facilities to be Financed by and the Rate and Method of Apportionment of Special Taxes for, and an Increase in the Bonded Indebtedness Limit of, Community Facilities District No. 13-1 (Alameda Landing Public Improvements); Conducting Special Election." Adopted;
(15-268 A) Resolution No. 15024, "Declaring Results of Special Election in Community Facilities District No. 13-1 (Alameda Landing Public Improvements), Determining that Alteration of the Facilities to be Financed By and the Rate and Method of Apportionment of Special Taxes for, and the Increase in the Bonded Indebtedness Limit of, the District are Lawfully Authorized, Approving and Authorizing the Execution of a Supplement No. 1 to Acquisition Agreement, and Directing Recording of an Amendment to Notice of Special Tax Lien." Adopted;
(15-268 B) Introduction of Ordinance Amending and Restating Ordinance Levying Special Taxes within the City of Alameda Community Facilities District No. 13-1 (Alameda Landing Public Improvements). Introduced;
(15-268 C) Resolution No. 15025, "Annexation of Territory to the City of Alameda Community Facilities District No. 13-1 (Alameda Landing Public Improvements), Authorizing the Levy of a Special Tax Therein and Submitting Levy of Special Tax to Qualified Electors; Conducting Special Election." Adopted; and
(15-268 D) Resolution No. 15026, "Declaring Results of Special Annexation Election, Determining Validity of Prior Proceedings, and Directing Recording of Amendment to Notice of Special Tax Lien - Alameda Landing Public Improvements." Adopted.
The Community Development Director gave a brief presentation.
Mayor Spencer opened the Public Hearing for alteration of the District.
There being no speakers, Mayor Spencer closed the Public Hearing.
Councilmember Ezzy Ashcraft moved adoption of the resolution regarding alteration of the facilities to be financed by and the rate and method of apportionment of special taxes for, and an increase in the bonded indebtedness limit of, Community Facilities District No. 13-1 (Alameda Landing Public Improvements).
Councilmember Daysog seconded the motion, which carried by unanimous voice vote - 5.
Mayor Spencer asked the City Clerk to open the ballots and announce the results.
The City Clerk opened the ballot an announced 22 votes were cast in favor with zero opposed.
Mayor Spencer stated all votes being in favor, the Council may proceed with final actions.
Councilmember Oddie moved adoption of the resolution declaring results of special election in Community Facilities District No. 13-1 (Alameda Landing Public Improvements), determining that alteration of the facilities to be financed by and the rate and method of apportionment of special taxes for, and the increase in the bonded indebtedness limit of, the District are lawfully authorized, approving and authorizing the execution of a Supplement No. 1 to Acquisition Agreement, and directing recording of an amendment to Notice of Special Tax Lien.
Vice Mayor Matarrese seconded the motion, which carried by unanimous voice vote - 5.
Councilmember Ezzy Ashcraft moved introduction of the ordinance amending and restating Ordinance levying special taxes within the City of Alameda Community Facilities District No. 13-1 (Alameda Landing Public Improvements).
Vice Mayor Matarrese seconded the motion, which carried by unanimous voice vote - 5.
Mayor Spencer opened the Public Hearing for annexation of the District.
There being no speakers, Mayor Spencer closed the Public Hearing.
Vice Mayor Matarrese moved adoption of the resolution of annexation of territory to the City of Alameda Community Facilities District No. 13-1 (Alameda Landing Public Improvements), authorizing the levy of a special tax therein and submitting levy of special tax to qualified electors.
Councilmember Ezzy Ashcraft seconded the motion, which carried by unanimous voice vote - 5.
Mayor Spencer asked the City Clerk to open the ballots and announce the results.
The City Clerk opened the ballot an announced 50 votes were cast in favor with zero opposed.
Mayor Spencer stated all votes being in favor, the Council may proceed with final actions.
Councilmember Daysog moved adoption of the resolution declaring results of special annexation election, determining validity of prior proceedings, and directing recording of amendment to Notice of Special Tax Lien - Alameda Landing Public Improvements.
Councilmember Oddie seconded the motion, which carried by unanimous voice vote - 5.
(15-269) Status Report on Site A Development at Alameda Point, including Presentation of Updated Development Plan, Approach to Transportation, Disposition and Development Agreement (DDA).
The Chief Operating Officer - Alameda Point made brief comments.
David Israel, Bar Architects, gave a Power Point presentation.
Councilmember Ezzy Ashcraft stated that she took the walking tour of Site A which was a nice opportunity to get the pedestrian scale.
Councilmember Daysog stated that he took part in the same tour; there were a lot of questions regarding Building 67; the aerial renderings are helpful and provide a visual sense of the new buildings; he likes the aerials which showed the proximity of Building 13 to the space dedicated to water use.
Mr. Israel stated the tour had lots of excitement and energy; the plan could be considered in a much more detailed way.
Phil Olmstead, Nelson Nygaard, gave a Power Point presentation.
Councilmember Oddie inquired what are the financial obligations going forward when Site A is completed, and who would be responsible for those costs.
Mr. Olmstead responded APP is still figuring out all the details; stated the costs of the service is largely dependent on the amount and frequency of services; APP is trying to design a cost effective program which fits in the developer's financial constraints; the funding strategy will be diverse.
Joe Ernst, APP, stated APP is more than happy to share information on costs and sources of revenues which are a combination of assessments, parking revenues, and grants.
Councilmember Daysog stated that he likes that the free shuttle would run every 15 minutes; the ease and availability of the free shuttle may change the demand to run every 10 minutes; the service is important and a good deal point when hashing out the terms of the agreement.
Mr. Olmstead stated the service provider would have provisions in the contract.
Councilmember Ezzy Ashcraft inquired about the possibility of having a light rail system connecting Alameda Point to the rest of the Island.
Mr. Olmstead responded light rail is a matter of scale, is expensive and would have to be evaluated with a series of trade-offs; AC Transit has plans for bus rapid transit (BRT) service which is a cost effective solution to improving transit on the Island; Alameda is a long way from light rail service but is good to keep it in mind for City's overall approach to transportation.
Mr. Olmstead continued the presentation.
In response to Councilmember Ezzy Ashcraft inquiry regarding public parking structures, the Chief Operating Officer - Alameda Point stated the Transportation Demand Management (TDM) plan and zoning code was structured such that investment into shared parking structures would not be made until the demand for parking would create revenue; the Transportation Management Association (TMA) would work with the City to make recommendations to determine when the best time would be to raise rates in the shared parking structures; the parking piece is important to the overall achievement of the goals.
Mr. Olmstead continued the presentation.
Mayor Spencer inquired whether the affordable units would have bundled parking, to which Mr. Olmstead responded in the affirmative.
In response to Mayor Spencer's inquiry, Mr. Olmstead stated the affordable units include apartments and condos, not townhomes.
Councilmember Oddie inquired whether other below-market units have the same parking charge, to which Mr. Olmstead responded the charge would be based on the unit.
Mayor Spencer inquired about the number of spaces per unit, to which Mr. Olmstead responded the final numbers are being worked out.
In response to Mayor Spencer's inquiry, Mr. Ernst stated parcel 11 has 220 units with 220 parking spaces.
Mr. Olmstead continued the presentation.
Vice Mayor Matarrese inquired whether TMA employees or City employees would do the annual monitoring, to which Mr. Olmstead responded the matter is to be determined.
In response to Vice Mayor Matarrese's inquiry, Mr. Olmstead stated the annual monitoring would be funded as part of the overall TDM program via assessments of the units and parking revenue.
Vice Mayor Matarrese inquired whether General Fund money would pay for the program, to which the Chief Operating Officer - Alameda Point responded in the negative; stated there are detailed budgets that estimate parking revenue and costs; the budgets compare special tax revenue or fee revenue from the development versus what the costs will be over time; at no point will the General Fund be used for the program.
In response to Vice Mayor Matarrese's inquiry, the Chief Operating Officer - Alameda Point stated staff is working with experts funded by a $150,000 Metropolitan Transportation Commission (MTC) grant, along with Fehr and Peers, to set up the TMA; ultimately transition to an independent organization with a staff of experts funded through the TMA.
Councilmember Oddie inquired whether the TDM would be in place on day one, to which Mr. Olmstead responded in the affirmative; stated a large portion of the TDM would be in place on day one.
Joe Ernst gave a Power Point presentation.
Pam White, Madison Marquette, continued the presentation.
Expressed support for the development plan: Leslie Cameron, Bay Ship and Yacht.
Discussed the need for rental and affordable housing; stated renters are looking to Council to facilitate this type of development and promote affordable housing: Catherine Pauling, Alameda.
Stated the project is a good foundation for future development at Alameda Point and brings affordable housing and jobs to Alameda; that she appreciates APP listening to concerns: Kari Thompson, Alameda.
Read a petition signed by business leaders in support of the plans for Site A: Christopher Seiwald, Alameda resident and business owner.
Discussed high tech and green tech business coming to Alameda; urged the Council to look at all the project benefits: Michael McDonough, Chamber of Commerce.
State the project fulfills the plans and hopes of Alamedans and will be an economic development tool: Helen Sause, Alameda.
Discussed the importance of housing; stated this is the moment for affordable housing: Laura Thomas, Renewed Hope Housing Advocates.
Expressed his support for the Site A Development Plan; urged moving forward: Ron Silberstein, Alameda.
***
(15-270) Mayor Spencer announced a motion is needed to consider the remaining agenda items: the Resolution adding regular Council meetings [paragraph no. 15-273] and the Council Referral [paragraph no. 15-274].
Councilmember Daysog moved approval [of considering the remaining items].
Councilmember Ezzy Ashcraft seconded the motion, which FAILED by the following voice vote: Ayes: Councilmembers Daysog, Ezzy Ashcraft and Matarrese - 3. Noes: Councilmembers Oddie and Mayor Spencer - 2.
***
Councilmember Ezzy Ashcraft stated Nike has a very impressive TDM plan for employees in Oregon which was done in 1996 in response to a commute trip reduction mandate; Site A would be the first major comprehensive TDM in Alameda; flexibility in the TDM is needed; that she likes the examples of residential transportation strategies.
Councilmember Daysog stated the project is built for the millennial-minded; designing Site A had incredible progression; many years ago the typical suburban product had an emphasis on single family homes and demolition rather than re-use; design became more progressive as staff began a next step toward a more sustainable Alameda Point; emphasis is on re-use; the APP plan is more in line with needs of workers and residents struggling with housing issues.
Councilmember Oddie stated the developer is very amenable to listening to the concerns of the public and now is the time to bring concerns forward; community engagement is important; it is great to see collaboration of staff and the developer; that he hopes to see progress at the next meeting on four key issues: the economics of the business deal and TDM, wage and equality, housing issue, and a Project Labor Agreement (PLA) update; that he is excited the plan has innovation, green hubs, and protections for legacy businesses.
Vice Mayor Matarrese stated a major concern is the burden of residential units and zoning, and job creation; he concurs with Councilmember Oddie regarding a PLA; that he would like to continue the energy which started with WETA in growing; workforce housing is needed; that he would like 100% instead of 25% affordable housing.
Mayor Spencer concurred with Vice Mayor Matarrese about workforce housing; she is concerned about high rents; stated being up front with rent costs is important; per State law, apartments built after 1995 cannot be rent controlled; her priority is to meet the needs of current Alameda residents and employees.
In response to Mayor Spencer's inquiry, Mr. Ernst stated market rate rents would support new infrastructure; 25% below-market rate housing will be provided, which is two-thirds more than elsewhere in Alameda or the Bay Area.
In response to Mayor Spencer's inquiry, Mr. Ernst stated 65 feet is the maximum building height.
In response to Mayor Spencer's inquiry, Mr. Ernst stated some of the 72 moderate rate housing units would be included in parcels 9 and 11; there will be flexibility dependent on rents and purchases; 104 condo units in parcel 3 will be for sale; condo maps are included in the apartments in the event the market shifts, the apartments can be converted into condos.
Mayor Spencer stated workforce housing is important and requested a breakdown of the housing units, how many would be considered moderate, and the number of apartments versus condos.
In response to Mayor Spencer's inquiry, Mr. Ernst stated the 182 units in parcel 9 are all apartments which will include some of the moderate-rate housing.
Mayor Spencer inquired whether the housing units in parcels 9 and 11 would be one floor units, to which Mr. Ernst responded in the affirmative.
In response to Mayor Spencer's inquiry, Mr. Ernst stated the parcel 8 low and very-low housing would be a blend of senior and family units.
The Chief Operations Officer - Alameda Point stated the City has a settlement agreement with Renewed Hope; staff is working with Renewed Hope to propose half senior, half family units; flexibility is needed to be consistent with the agreement.
***
(15-271) Mayor Spencer announced a motion is needed to continue the meeting past 11:00 p.m.
Vice Mayor Matarrese moved approval [of continuing the meeting].
Councilmember Daysog seconded the motion, which carried by unanimous voice vote - 5.
***
Mayor Spencer inquired whether access for the mobility impaired is being considered in the design of the tri-level townhomes.
In response to Councilmember Ezzy Ashcraft's inquiry, Mr. Ernst stated provisions for universal design are included in the development plan and conditions of approval.
Mayor Spencer inquired the distance between the existing ferry and new ferry, to which the Chief Operations Officer - Alameda Point responded approximately 1.5 miles.
In response to Mayor Spencer's inquiry, Mr. Ernst stated the ferry is proposed to go in seaplane lagoon.
Mayor Spencer stated that she would like to see where the new proposed ferry will be and how it will impact the seaplane lagoon.
Mr. Ernst stated the new ferry is purposely located at the foot of Pacific Avenue to avoid the conflicts with recreational uses closer to the main plaza of the seaplane lagoon.
Mayor Spencer requested diagrams showing use should be accurately depicted.
Mayor Spencer requested evaluation of reduced transit passes being available to all interested Alameda residents.
In response to Mayor Spencer's inquiry regarding the drought conditions, Mr. Ernst stated East Bay Municipal Utilities District's (EBMUD) applications have become stricter and require specific water demand information; the project will be the lowest water-using project in Alameda when it is complete.
Councilmember Ezzy Ashcraft stated a staff report regarding the drought is upcoming.
Mayor Spencer stated an overall concern is the rent prices and the availability of workforce housing.
Councilmember Daysog stated there are other strategies to make market rate housing affordable to a broader segment; sometimes the price is not the roadblock and the amount required for down payment is an issue; Federal Housing Administration (FHA) and first time home buyer programs could be considered.
Councilmember Ezzy Ashcraft stated the League of California Cities has asked support of Assembly Bill 1335 which imposes fees on real estate transactions to help construct affordable housing, first time buyer programs, and other great benefits.
Mr. Ernst concurred with Councilmember Ezzy Ashcraft; stated funding for affordable housing is one tool that is being designed to replace redevelopment.
(15-272) Recommendation to Accept the Report on Ensuring a Resilient Alameda: The Strategy for Planning, Implementing, and Sustaining Resilience and Consider Adding One Civilian Position Assigned to the City Manager's Office to Coordinate Disaster Emergency Services in the Upcoming Budget. Not heard.
(15-273) Adoption of Resolution Adding Additional 2015 Regular City Council Meeting Dates. Not heard.
CITY MANAGER COMMUNICATIONS
None.
ORAL COMMUNICATIONS, NON-AGENDA
None.
COUNCIL REFERRALS
(15-274) Recommendation that City Council Establish a Procedure for Appointments to Regional Boards and Commissions, and Guidelines for How Appointees Reflect City Policy and City Council Directives. Not heard.
COUNCIL COMMUNICATIONS
None.
ADJOURNMENT
There being no further business, Mayor Spencer adjourned the meeting at 11:11 p.m.
Respectfully submitted,
Lara Weisiger, City Clerk
The agenda for this meeting was posted in accordance with the Sunshine Ordinance.
****************************************************************************************************
UNAPPROVED
MINUTES OF THE SPECIAL CITY COUNCIL MEETING
TUESDAY- -APRIL 28, 2015- -6:30 P.M.
Mayor Spencer convened the meeting at 6:32 p.m.
Roll Call - Present: Councilmembers Daysog, Ezzy Ashcraft, Matarrese, Oddie and Mayor Spencer - 5.
Absent: None.
Public Comment
Kurt Peterson, Alameda, asked the Council not to rush to quick decisions with contracts; stated the City Treasurer and City Auditor indicated waiting two to three months would not make a difference; the City Treasurer should be involved.
Therese Hall, Alameda, stated that she is concerned about moving quickly; the contracts should not be part of the budget; the debt should be negotiated with Police and Fire; the rest of Alameda should have an opportunity to vet the contracts; questioned if there are legal ramifications.
Margaret Hall, Alameda, stated her greatest concern is how fast the contracts are moving; the word is not out in the community; people are interested; everyone should have a voice.
Robin Gilbert, Alameda, stated the public has not been privy to the information; just because the proposal has been put forth does not mean it is the right proposal; the contracts should be reviewed by attorneys who are specialists in pension; the City has time to involve the citizens; inquired when the matter would be voted upon as an agenda item.
The Council and staff responded the meeting would start at 5:00 p.m. tomorrow night, but the contracts would not be considered until 6:00 p.m.
The meeting was adjourned to Closed Session to consider:
(15-275) Conference with Labor Negotiators (54957.6); City Negotiator: John Russo; Employee Organizations: Public Safety Unions (International Association of Fire Fighters (IAFF), Alameda Fire Chiefs Association (AFCA). Alameda Police Officers Association (APOA) and Alameda Police Managers Association (APMA)); Issue Under Negotiation: Post Employment Benefits
Following the Closed Session, the meeting was reconvened and Mayor Spencer announced that legal advice was given to Council and no direction was given by Council.
Adjournment
There being no further business, Mayor Spencer adjourned the meeting at 8:30 p.m.
Respectfully submitted,
Lara Weisiger, City Clerk
The agenda for this meeting was posted in accordance with the Sunshine Ordinance.
****************************************************************************************************
UNAPPROVED
MINUTES OF THE SPECIAL CITY COUNCIL MEETING
TUESDAY- -APRIL 29, 2015- -7:00 P.M.
Mayor Spencer convened the meeting at 5:00 p.m. and led the Pledge of Allegiance.
ROLL CALL - Present: Councilmembers Daysog, Ezzy Ashcraft, Matarrese, Oddie and Mayor Spencer - 5.
Absent: None.
REGULAR AGENDA ITEMS
(15-276) Presentations from Avery and Associates and Bob Murray and Associates to Discuss Their Qualifications and Process for the Recruitment of a City Manager for the City of Alameda.
Discussed recruitment and compensation; suggested considering the Assistant City Manager Liz Warmerdam: Ken Peterson, Alameda.
ORAL COMMUNICATIONS, NON-AGENDA
(15-277) Kurt Peterson, Alameda, discussed transparency and suggested going above the requirements of the Sunshine Ordinance.
REGULAR AGENDA ITEMS (continued)
Presentations from Avery and Associates and Bob Murray and Associates to Discuss Their Qualifications and Process for the Recruitment of a City Manager for the City of Alameda.
Paul Kimura, Avery and Associations, gave a brief presentation and responded to Council questions.
Bob Murray, Bob Murray and Associates, gave a brief presentation and responded to Council questions.
***
Mayor Spencer called a recess at 5:57 p.m. and reconvened at 6:11 p.m.
***
(15-278) Resolution No. 15027, "Approving a Memorandum of Understanding (MOU) between the Alameda Police Officers Association (APOA) and the City of Alameda for the Period Beginning November 1, 2015 through December 18, 2021." Adopted.
Mayor Spencer noted the four MOUs [paragraph nos. 15-281 through 15-283] would be addressed together.
The City Manager gave a Power Point presentation.
In response to Mayor Spencer's inquiry, the City Manager stated the trust would be exhausted in 2034.
Mayor Spencer inquired what would happen after the trust is exhausted, to which the City Manager responded it would be the same as what is done today; stated the City's resources would be used to make the payments.
Councilmember Daysog stated pay go would start again in 2035; the proposal would be a pushing out and would buy time; inquired whether the unstated piece is that the City would have to have the same number of employees.
The City Manager responded in the affirmative; stated the figures are premised on the current work force; the figures would change if the workforce is expanded; that he would not suggest expanding staff.
Councilmember Daysog stated $47 million is not an actual dollar savings; inquired whether the amount the City would not be paying in pay go would be a reduction in expense.
The City Manager responded the City is obligated to provide the benefit; stated if the City does not act, a payment still has to be made; the payment would be smaller under the trust; that he considers a reduction in expenditure a savings.
Vice Mayor Matarrese requested the City Attorney statement be read into the record and requested an explanation of running the contributions outside of payroll.
The City Attorney read the statement.
The Assistant City Manager stated running the contributions outside of payroll is not what the City bargained for and she is not sure how it would be done; that she is not sure how a raise could not be run through payroll and it might not be legal; the answer is the City would not be able to run the contributions outside of payroll.
In response to Mayor Spencer's inquiry about the budget percentages for the Recreation and Parks Department and public safety over the years, the Assistant City Manager stated the Recreation and Parks Department budget would be presented on May 12th and the information would be provided then.
The City Manager stated over the years, cities have started charging fees for services in some departments, such as Development Services and Public Works; public safety remains under and takes the loin share of the General Fund for cities in California.
Councilmember Ezzy Ashcraft stated cities are going to have to look to the State for some assistance that cities alone cannot solve; noted the City's State Assembly representative is present and hearing the comments.
Councilmember Daysog stated the Council will discuss the possibility of raising the Utility Users Tax (UUT); inquired whether the increase would count toward the Balanced Revenue Index (BRI).
The City Manager responded in the affirmative; stated if the Council proceeds with the UUT, the Council could authorize the City Manager to engage in a discussion with labor about the matter.
Stated the matter needs to be dealt with; that he does not believe the City can fund its way out of $91 million; the liability needs to be negotiated; that he disagrees with proceeding with the proposal; the BRI should not include the property transfer tax; suggested putting the money directly into a trust in lieu of raises; questioned the legality and discussed the confidential memorandum: Kevin Kennedy, City Treasurer.
The City Attorney provided clarification.
The City Treasurer inquired whether the legal opinion has only been shared with the Council, City Manager and staff, to which the City Attorney responded in the affirmative.
The City Manager clarified that the City Treasurer does not normally receive confidential legal memorandums.
The City Treasurer stated that he is offering financial guidance on the largest issue facing the City.
Suggested the City Attorney have expert outside counsel review whether the funds can be put into the trust fund without being run through payroll; urged spending funds on the legal matter; stated a decision should not be made tonight; discussed the transfer tax; suggested that he and the City Treasurer be engaged during the negotiation process; inquired whether only the City Manager conducted the negotiations: Kevin Kearney, City Auditor.
The City Manager responded that he conducted the negotiations, which is his role under the Charter; stated that he was instructed to engage in the issue by unanimous vote of the City Council; the Assistant City Manager and Finance Director participated in the meetings with him; a tentative agreement was reached with labor on a Friday; he provided the information to the City Auditor and Treasurer Monday morning when he met with him, which was as soon as possible.
Urged the Council to approve the contracts; outlined the first steps taken to begin to address the issue when he was on the City Council; discussed his role in resolving the State pension for teachers; stated the contracts are a step in the right direction: Assemblymember Rob Bonta.
Read Supervisor Chan's statement urging Council to approve the MOUs: Steven Jones, representing Supervisor Wilma Chan.
Vice Mayor Matarrese requested staff to clarify whether the $91 million liability is being reduced by $47 million; stated his understanding is that the liability remains the same but the $47 million is a savings against payments, which total much more; that he does not want the public to be confused.
The City Manager responded there is an impact on the $91 million, but it is minimal.
The Assistant City Manager stated the amount is about $5 million; further stated PERS does not contribute to the OPEB liability.
Stated the Council should be pleased to be considering this matter; outlined how public safety contributes to the City's economy; urged approval of the MOUs and continuing the discussion to reach a complete solution: Former Assemblymember Sandre Swanson, Alameda.
Commended the work of the Fiscal Sustainable Committee; stated that she applauds the effort; urged approval: Former Supervisor Alice Lai-Bitker, Alameda.
Stated that he is concerned about the rush to judgment; questions have been raised; urged Council to listen to the City Treasurer; stated the matter should be postponed; the MOUs do not have to do with the budget: Kurt Peterson, Alameda.
Stated that he supports the contracts; a tentative agreement has been reached, which has been ratified by the employees; the movement to delay the matter is wrong; outlined his experience with unions; requested the City Council keep its word: Marty Fraetes, Alameda.
Stated the members of the association have agreed to the contract which is a first step in the right direction: Alan Kuboyama, Alameda Police Officers Association.
Stated contracts should be approved when both sides have negotiated in good faith; urged a yes vote: Honora Murphy, Alameda.
Provided examples of pay increases being given to teachers and school districts not going bankrupt; stated tax dollars should be spent for services; the employees have stepped up and given concessions to reach a collaborative solution; urged Council to vote yes: Gray Harris and Patty Osbourne, Alameda.
Mayor Spencer requested clarification on the fund balance amount, to which the Assistant City Manager responded $31 million, which is 38%.
Urged approval of the MOUs; stated the deal was negotiated in good faith; the Fire Fighters are partners; negotiations have been done the right way; urged acting tonight: Jeff Del Bono, International Association of Fire Fighters.
Provided examples Fire and Police responses to his family's emergencies; urged approval of the contracts, which is an opportunity for Alameda to become a role model in the area: Zac Goldstein, Alameda.
Stated Police and Fire Department efforts make the City safe; urged approval of the contracts: Zhaldee Sadie, Alameda.
Stated the City's negotiators have reached a ground breaking agreement; urged approval: Andy Slivka, Alameda resident and Carpenters Union.
Urged approval of the contracts; stated the contracts are the first step to control the unfunded liability: Mike Williams, Alameda.
Expressed support for public safety; applauded the efforts of the City and union to work out a compromise; stated an agreement has been made and should be honored; urged approval of the MOUs: Doug Bloch, Alameda.
Expressed her support for Alameda's public safety employees; stated the deal is amazing; the liability will not be solved tomorrow; gradual steps need to be taken to solve the problem: Lauren Zimmerman Cook, Alameda.
Commended public safety's respectful responses to calls; stated the employees are partners and are giving back; urged approval of the MOUs: Kathy Moehring, Alameda.
Acknowledged Police and Fire employees' efforts to build trust and a spirit of collaboration, which has allowed negotiating a solution; urged approval of the MOUs tonight: Bruce Knopf, Alameda.
Submitted his comments outlining budget concerns and comparing other cities Fire Department expenses; urged not adopting the contracts; stated time is needed to study the problem and find a solution: Paul Foreman, Alameda.
Stated as a financial advisor he addresses employee benefits; discussed cities declaring bankruptcy; urged approval, which is a first step: Michael McDonough, Alameda Chamber of Commerce.
Questioned why additional time cannot be given: Ken Peterson, Alameda.
Stated the contracts are the most strategic and sound he has seen and are worthy of approval: Bill Delaney, Alameda.
Stated the Police and Fire budgets are higher than others and are unsustainable; questioned whether the MOUs need to be approved tonight: Brian Schumacher, Alameda.
The Assistant City Manager stated public safety represents 35% of the entire City budget, which is $160 million.
Mayor Spencer stated a slide showed 78%.
The Assistant City Manager stated said amount is the percentage of the General Fund.
Thanked the City Attorney for addressing the legal issue; suggested more notice be provided; urged holding off on the decision: Robin Gilbert, Alameda.
Stated the MOUs are a step and are not the total solution; approving the contact will make the employees the first to start helping fund OPEB; urged approval: Kari Thompson, Alameda.
Stated the effort has been collaborative; Council is being asked to follow through with a good faith effort; the first contract was the first step and this is the next step; Council can give direction to the new City Manager to open negotiations: John Knox White, Alameda.
Stated the OPEB issue has been around for a long time; the employees are working with the City to solve it; Council directed staff to bargain in good faith; not approving the agreements would be regressive bargaining: Malia Vella, Alameda.
Stated the newspaper article title: "Trust proposed to reduce liability" explains everything; urged unanimous approval: Don Sherratt, Alameda.
Stated interest based negotiations began in 1998 to work together to reach a common goal; the MOUs are a step being taken to minimize the pain down the road; urged approval: Dom Weaver, Alameda.
Stated the details need to be reviewed; the budget is a little off; compared salaries: Ken Gutleben, Alameda.
The Assistant City Manager noted the Public Works Department budget is larger than either of the public safety budgets.
Mayor Spencer requested information on salaries, to which the Assistant City Manager responded that she does not have the information.
The City Attorney clarified the Charter roles of the City Auditor and Treasurer.
Urged delay to allow City Auditor and Treasurer review; stated the matter can return in a month: Bruce Carnes, Alameda.
Stated the contracts are a product of collective bargaining; that he was on the Fiscal Sustainability Committee which urged prefunding the OPEB liability; the Council should proceed with the contracts: Mike Henneberry, Alameda and United Food and Commercial Workers Local 5.
Stated Alameda is going in the right direction, which the MOUs continue; the terms of the MOUs are fair; discussed Police and Fire programs and calls: Doug Biggs, Alameda Point Collaborative.
Stated the question is whether the City can afford the contract; that she is not saying to vote against the contact, rather Council should wait to allow the issues to be vetted; outlined financial details; expressed concern over the drought impacting the economy; questioned where the City will get funding; questioned the legal opinion: Jane Sullwold, Alameda.
The City Manager explained the funding; stated the arbitration he was addressing was the City's attempt to unilaterally impact retiree benefits, which failed.
Stated the Council started in 2012, but the step was not a correction; discussed the City's telecommunication business; stated paying off $91 million from a loan or bond today would cost $5 million a year for the next 30 years; the City is still paying $1.9 million annually for a contract from the 1970s: Former Councilmember Doug deHaan, Alameda.
Stated the City Treasurer and City Auditor have raised questions which should be addressed; suggested anyone paid over $200,000 take a pay cut: Irene Dieter, Alameda.
Stated an agreement should not be made until Alamedans understand the budget; that she would like a better understanding before going forward; urged following the advice of the City Auditor and Treasurer: Theresa Hall, Alameda.
Stated the cart is being put before the horse; the City is entering into contracts before the budget: Margaret Hall, Alameda.
Discussed community stabilization; stated the issue is Statewide; urged approval of the MOUs and making progress one step at a time: Jon Spangler, Alameda.
Expressed support for the City Auditor and City Treasurer; stated that she would favor a lower return estimate; health insurance costs increase every year; no one will have health insurance canceled if a decision is not made tonight: Carol Gottstein, Alameda.
***
Mayor Spencer called a recess at 9:38 p.m. and reconvened the meeting at 9:47 p.m.
***
Councilmember Ezzy Ashcraft requested an explanation of pay go, to which the Assistant City Manager responded pay go has nothing to do with salaries; stated it is the amount the City pays on an annual basis for retirees.
Councilmember Daysog stated pay go does not help buy down the unfunded liability; the unfunded liability is the difference between the pay go amount and what the City really should be paying for the liability.
Mayor Spencer stated there were two votes by the City Council in closed session; the first unanimous vote was to continue with negotiations; at a subsequent meeting, there was another vote on a tentative agreement; Councilmembers Ezzy Ashcraft, Matarrese and Oddie voted to proceed, Councilmember Daysog abstained and she voted no.
Vice Mayor Matarrese stated the second vote was Council direction to negotiate on the terms.
The City Manager concurred with what was said; stated the unanimous voice was to begin formal negotiations; the 3-1-1 vote was on the general terms.
Mayor Spencer stated Council saw the actual red line proposal for the first time when it was made public.
The Assistant City Manager stated the term sheet outlined everything included in the red line.
The City Manager noted 15 day notice is 5 times longer than what is required under State law.
Councilmember Ezzy Ashcraft stated getting complete unanimity is difficult; the question is what course of action is best for the City; there is not a magic solution; public safety understands this is the beginning of the road; questioned whether the debt should be allowed to continue to grow when the City has a solution now; stated people have argued the MOUs could have gone further; public safety came to the table even though the current MOUs do not expire for two years; waiting for the contracts to expire would be rolling the dice and the City would lose the agreed upon contributions; more changes will be explored going forward; creating a hostile environment would be a loss; that she would like a task force, similar to the fiscal sustainability and OPEB, convened; letting the opportunity pass would be a shame; that she supports going forward with the MOUs.
Councilmember Daysog stated the topic is very important; that he does not see anything magical about making a decision tonight; the City could hold off for four weeks to vet issues raised by the City Auditor and Treasurer; that he would like time to look at a suggestion he has; he did not support the matter in the closed session because he wanted more information; that he has been seeking a comprehensive plan on the unfunded liability; spectacular detailed information has been provided, including the 30 year projection, which compares OPEB pay go and the trust fund; the trust fund would work starting in 2019, but would go to $0 by 2034; the idea he has relates to the 1079 retirement account, on which the City currently spends almost $2 million annually; the trust fund is undercapitalized and needs an additional source of revenue; the 1079 fund should be reviewed as a supplement; figures staff provided on the salary increases have calmed him down; the trust fund needs to be comprehensive, improved more and supplemented.
Vice Mayor Matarrese inquired whether staff could comment on the scenario proposed to take funds from the 1079 plan as premiums go down.
The Assistant City Manager stated the amount is not going down very much.
In response to Councilmember Ezzy Ashcraft's request, the Assistant City Manager explained the 1079 plan; stated the annual change could be researched.
Vice Mayor Matarrese stated the line item could be extended at the same amount and any difference could go into the trust; inquired whether doing so would be separate or precluded from the action tonight.
The City Manager responded the issue is separate; stated the 1079 plan is funded by the General Fund; as the figure goes down, the money becomes available and Council could decide to use it to fund the City's $250,000 annual contribution or additional pre-funding; labor could be re-engaged about the City adding the funding and ask what they are willing to give.
Councilmember Ezzy Ashcraft inquired whether the matter should be discussed as part of the budget.
The City Manager responded the amount is not a big ticket item and is not going down enough to have an impact; stated as the amount decreases, it should not be used on additional programs, but should be used to address long term obligations.
Councilmember Daysog the amount was $4 million in 2003 and is down to $1.8 million now; the amount should be locked in and the difference should be used.
The City Manager noted the Council might want to use the funds for PERS smoothing.
Councilmember Daysog stated figuring it out takes time.
In response to Councilmember Oddie's inquiry, the City Manager stated nothing needs to be negotiated as long as the City is meeting its obligations to the retirees; that he is suggesting labor should be engaged if Council wants to use the funds to supplement the OPEB trust.
Councilmember Daysog stated that he does not want the idea used to open bargaining again and ask for something else; everything is set in place; that his concern is the proposal is not comprehensive enough.
Councilmember Oddie stated on the campaign trail, there was a mandate to fix the OPEB problem; the issue is important; staff was given direction to negotiate a partial solution by a unanimous vote; staff returned with a term sheet which was approved by a 3-1-1 vote; the public safety employees ratified the tentative agreement, which is before Council for a vote; doing anything but approving the agreement is bad faith, regressive bargaining and sets a bad tone; provided an analogy of building a house; outlined past actions, employee contributions, the current proposal, and BART contract negotiations; stated the employee contributions have to be collectively bargained and cannot be imposed; that he is afraid not voting tonight would deteriorate the hard work to build a collaborative relationship; the City obtained an actuarial and legal analysis; the Council will continue to make progress and should form a labor management committee to continue talking and working on ways to solve the problem; discussed employees or the City contributing more to the trust and the buyout alternative; stated the contract needs to be passed first to set up the trust and the framework; discussed where the City would be in 2017 without the contract extension.
***
(15-279) Mayor Spencer stated a vote is needed to consider the budget presentations [paragraph no. 15-284]
Councilmember Oddie moved approval of proceeding with the remaining item.
The City Attorney clarified the four MOUs have already been called.
Vice Mayor Matarrese stated that he would support not proceeding with the budget presentations; inquired how to proceed administratively with not hearing the item.
Mayor Spencer stated four votes are needed to hear the item.
Councilmember Ezzy Ashcraft stated hearing the presentations so late would not be giving the departments their due; the City Clerk has been trying to figure out dates.
The City Clerk stated in order to continue the meeting to next Wednesday, May 6th, the matter would have to be continued to the specific date because there is not time to meet the 7 day notice requirement.
The dates were discussed.
Councilmember Oddie moved approval of continuing the budget presentations to May 7th.
Councilmember Ezzy Ashcraft seconded the motion, which carried by the following voice vote: Ayes: Councilmembers Daysog, Ezzy Ashcraft and Oddie - 3. Noes: Vice Mayor Matarrese and Mayor Spencer - 2.
Councilmember Oddie moved approval of reconsidering the motion and continuing the matter to May 6th.
Mayor Spencer seconded the motion, which carried by the following voice vote: Ayes: Councilmembers Daysog, Matarrese, Oddie and Mayor Spencer - 4. Noes: Councilmember Ezzy Ashcraft - 1.
(15-280) Councilmember Oddie moved approval of continuing the meeting past 11:00 p.m.
Councilmember Ezzy Ashcraft seconded the motion, which carried by unanimous voice vote - 5. [Note: The meeting did not go past 11:00 p.m.]
***
Councilmember Oddie expressed concern over what would happen if the economy tanks; stated the window of opportunity is now; read a South Lake Tahoe City Manager quote from a Western City article.
Vice Mayor Matarrese stated that he agrees with the terms, otherwise, he would not have voted to have the City Manager take the terms to the bargaining table; the proposal does not solve the problem or reduce the liability more than $5 million; the most important part of the deal is getting a 4% contribution from the employees; the concession is valuable; his biggest concern is not everyone understands the mechanism, which helps correct a structural budget defect; the liability currently exists with no mechanism to pay for it; a union representative left the door open to continue discussions, which should be included in the motion as Council direction; discussed concerns about additional time and comparison to other cities; stated the offer will expire; the City has to deal with PERS smoothing; discussed a 2007 Bartel report; stated having a permanent working group should be a required condition.
Mayor Spencer stated that she does not believe it is appropriate to enter into a long term agreement going through 2022 prior to the budget process; the budget has a structural problem; expenditures are greater than revenue; the loss increases after the proposed contracts; the community should have an opportunity to help figure out how to solve the problem long term; with or without the contracts, the five year forecast goes down to an 18% reserve; the problem is serious and has to be addressed.
Councilmember Oddie moved adoption of the resolution approving the MOU between APOA and the City of Alameda for the period beginning November 1, 2015 through December 18, 2021.
Councilmember Daysog requested an amendment to the motion; stated the City Manager's yeomen effort falls short; the trust fund is woefully undercapitalized; that he would support the motion with language transitioning the 1079 balance as a supplement.
Councilmember Oddie stated that he would not accept the amendment; but he would accept an amendment to direct staff to create a standing committee as recommended by the Vice Mayor.
Vice Mayor Matarrese stated the committee would be a standing labor management committee.
Councilmember Oddie stated the committee would be established to investigate other possible solutions.
The Assistant City Manager stated the 1079 suggestion is one of the solutions which could be investigated.
Councilmember Ezzy Ashcraft stated that she does not see the harm in considering the matter; everything should be on the table.
Councilmember Oddie stated the committee should review the matter.
Councilmember Ezzy Ashcraft stated that she would support the amendment.
Vice Mayor Matarrese seconded the motion with the amendment [to establish a standing labor management committee], which carried by the following voice vote: Ayes: Councilmembers Ezzy Ashcraft, Matarrese and Oddie - 3. Noes: Councilmember Daysog and Mayor Spencer - 2.
(15-281) Resolution No. 15028, "Approving a Memorandum of Understanding between the Alameda Police Managers Association (APMA) and the City of Alameda for the Period Beginning November 1, 2015 through December 18, 2021." Adopted.
See paragraph no. 15-278 for the discussion.
Councilmember Oddie moved adoption of the resolution approving the MOU between the APMA and the City for the period beginning November 1, 2015 through December 18, 2021 with giving direction to staff to form the standing labor management committee to consider other alternatives to reduce the OPEB liability.
Councilmember Ezzy Ashcraft seconded the motion, which carried by the following voice vote: Ayes: Councilmembers Ezzy Ashcraft, Matarrese and Oddie - 3. Noes: Councilmember Daysog and Mayor Spencer - 2.
(15-282) Resolution No. 15029, "Approving a Memorandum of Understanding Between the International Association of Firefighters (IAFF) and the City of Alameda for the Period of November 1, 2015 Through December 18, 2021." Adopted.
See paragraph no. 15-278 for the discussion.
Councilmember Ezzy Ashcraft moved adoption of the resolution approving the MOUs between the IAFF and the City for the period of November 1, 2015 through December 18, 2021 with the same amendment previously offered: to direct staff to convene a standing labor movement committee.
Councilmember Oddie seconded the motion, which carried by the following voice vote: Ayes: Councilmembers Ezzy Ashcraft, Matarrese and Oddie - 3. Noes: Councilmember Daysog and Mayor Spencer - 2.
(15-283) Resolution No. 15030, "Approving a Memorandum of Understanding between the Alameda Fire Chiefs Association (AFCA) and the City of Alameda for the period of November 1, 2015 through December 18, 2021." Adopted.
See paragraph no. 15-278 for the discussion.
Councilmember Ezzy Ashcraft moved adoption of the resolution approving a MOU between the AFCA and City for the period of November 1, 2015 through December 18, 2021 with amendment to include direction to staff to convene a standing labor management committee to continue searching for solutions to the OPEB liability.
Vice Mayor Matarrese seconded the motion, which carried by the following voice vote: Ayes: Councilmembers Ezzy Ashcraft, Matarrese and Oddie - 3. Noes: Councilmember Daysog and Mayor Spencer - 2.
(15-284) Presentations by General Fund Departments on Proposed Budget for Fiscal Years 2015-16 and 2016-17.
Continued to May 6, 2015.
CITY MANAGER COMMUNICATIONS
(15-285) The City Manager thanked Alameda for the opportunity.
COUNCIL COMMUNICATIONS
(15-286) Councilmember Oddie announced that he will be holding a town hall meeting to discuss police and public works issues on Bay Farm Island.
ADJOURNMENT
There being no further business, Mayor Spencer adjourned the meeting at 10:55 p.m.
Respectfully submitted,
Lara Weisiger, City Clerk
The agenda for this meeting was posted in accordance with the Sunshine Ordinance.