Title
Minutes of the Joint City Council and SACIC Meeting Held on December 6, 2022. (City Clerk)
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UNAPPROVED
MINUTES OF THE SPECIAL JOINT MEETING OF THE CITY COUNCIL AND
SUCCESSOR AGENCY TO THE
COMMUNITY IMPROVEMENT COMMISSION (SACIC)
TUESDAY- -DECEMBER 6, 2022- -6:45 P.M.
Mayor/Chair Ezzy Ashcraft convened the meeting at 7:18 p.m. Councilmember/Commissioner Herrera Spencer led the Pledge of Allegiance.
ROLL CALL - Present: Councilmembers/Commissioners Daysog, Herrera Spencer, Knox White, Vella and Mayor/Chair Ezzy Ashcraft - 5. [Note: The meeting was held via Zoom.]
Absent: None.
CONSENT CALENDAR
Councilmember/Commissioner Knox White moved approval of the Consent Calendar.
Expressed concern about the investment report and minutes: Tod Hickman.
Councilmember/Commissioner Herrera Spencer requested the Investment Report [paragraph no. 22- CC/22- SACIC] be withdrawn from the Consent Calendar for discussion.
Mayor Ezzy Ashcraft suggest the motion be held until after Council addresses the Investment Report.
(*22- SACIC) Minutes of the Joint City Council and SACIC Meeting Held on October 18, 2022. Approved.
[Note: The Consent Calendar vote was taken under the Investment Report.]
(22- CC/22- SACIC) Recommendation to Accept the Investment Transactions Report for the Period Ending September 30, 2022.
The City Treasurer gave a brief presentation.
Councilmember/Commissioner Herrera Spencer stated the report is quarterly; noted there are very low interest rates; stated the City is lucky to have the City Treasurer to present and explain the matter; next quarter transactions will likely show more of the same trends; inquired the anticipated results for the annual report.
The City Treasurer responded the annual report will cover through June 30, 2023; stated the results will depend on what occurs from now until then; he has not seen interest rate increases this sharp in 30 years; the immediate impacts are dramatic, however, long-term effects will put the City in a good spot to earn interest going forward; he expects negative numbers similar to last year, but interest rates will be up and the City will still be positive over the life of the portfolio; the City’s portfolio performance has been above average; the trades will benefit the City over time; the report solely shows transaction reports; the annual investment report is much more robust; if Council desires, he will attend the meeting to address the annual report and provide more detail.
Councilmember/Commissioner Herrera Spencer requested clarification of the acronym PFM.
The City Treasurer responded it is Public Finance Management (PFM); stated the City has two portfolios managers; one PFM is one of the largest investment funds for municipalities and other State organizations; the other is Chandler Asset Management (CAM) that provides a similar profile with a good reputation; CAM has been helpful managing the City portfolio and supporting the production of reports while streamlining operations.
Councilmember/Commissioner Herrera Spencer inquired whether the annual report will include a copy of the Council investment policy.
The City Treasurer responded the annual investment report is timed with the approval of the investment policy; stated the report will include the investment policy; the timeline delay is due in part to functionality and the Sunshine Ordinance requirements.
Mayor/Chair Ezzy Ashcraft stated when Councilmembers have a question of interest to the full Council, the information is shared with Council prior to the City Council meeting and oftentimes can be shared with the public in order to save time.
Councilmember/Commissioner Herrera Spencer seconded the motion approving the Consent Calendar, which carried by the following roll call vote: Councilmembers/Commissioners Daysog: Aye; Knox White: Aye; Spencer: Aye; Vella: Aye; and Mayor/Chair Ezzy Ashcraft: Aye. Ayes: 5.
AGENDA ITEM
(22- SACIC) Resolution No. 22-16, “Declaring That the Property Located at 2350 Fifth Street is Exempt Surplus Land Pursuant to Government Code Section 54221(f)(1)(D).” Adopted;
(22- A SACIC) Resolution No. 22-17, “Authorizing the Conveyance of the Property Located at 2350 Fifth Street to the City of Alameda in Accordance with the Terms of a Purchase and Sale Agreement Between the Successor Agency to the Community Improvement Commission of the City of Alameda and the City Reflecting a Purchase Price of $430,000;” and Authorizing the City Manager, or Designee, as Executive Director of the Successor Agency, to Execute the Purchase and Sale Agreement and Take Other Actions Necessary to Complete the Conveyance of the Property.” Adopted; and
(22- CC) Introduction of Ordinance Authorizing Acceptance of the Property Located at 2350 Fifth Street from the Successor Agency to the Community Improvement Commission of City of Alameda in Accordance with the Terms of a Purchase and Sale Agreement Between the City and the Successor Agency to the Community Improvement Commission of City of Alameda; and Authorizing the City Manager, or Designee, to Execute a Purchase and Sale Agreement Reflecting a Purchase Price of $430,000 with the Successor Agency to the Community Improvement Commission of City of Alameda, Execute and Record Necessary Affordable Housing Covenant for Approximately 55 Years, and Take Such Other Actions Necessary to Complete the Conveyance of the Property. Introduced.
The Community Development Director gave a brief presentation.
Councilmember/Commissioner Herrera Spencer inquired whether the City could choose to comply with the Surplus Lands Act (SLA).
The Community Development Director responded compliance is elective; stated the matter fits squarely within the exemption; the City could offer the space as surplus land of Council so chooses.
Councilmember/Commissioner Herrera Spencer inquired whether the SLA requires land to initially be offered to affordable housing providers; stated staff believes utilizing the exemption is appropriate since the use will be for a homeless housing project, which is consistent with the SLA goal; inquired what money the City will use for the $430,000.
The Economic Development Manager responded the funds are from the General Fund.
Mayor/Chair Ezzy Ashcraft stated the discussion only reflects the purchase of the land.
Councilmember/Commissioner Herrera Spencer inquired what would happen to the land in 55 years; stated the affordable housing requirement will no longer be available in 55 years.
The Community Development Director responded the City will own the land and the encumbrance will be gone.
Councilmember/Commissioner Herrera Spencer inquired whether the City can use the space for any type of housing, to which the Community Development Director responded in the affirmative; stated the City can provide the space for any type of use.
Councilmember/Commissioner Herrera Spencer inquired whether staff knows the previous listing sale price.
The Community Development Director responded that she does not recall the amount; stated the second transaction amount had been close to one million dollars at roughly $980,000; noted the transaction fell apart due to the bids for utility costs not being workable; the cost to add utilities is greater than anticipated at the time.
Councilmember/Commissioner Herrera Spencer inquired whether the City offered the property for sale at less than the one million dollars; stated the report indicates the value is set to $430,000.
The Community Development Director responded in the affirmative; stated the value is derived from the valuation being discounted for the cost to add useable utilities.
Councilmember/Commissioner Herrera Spencer inquired whether the City ever listed the parcel for the reduced price.
The Community Development Director responded in the negative; stated that the potential buyers included the analysis as part of their due diligence.
Councilmember/Commissioner Herrera Spencer inquired whether there is a reason the City never offered the site for the reduced price to the public at large.
The Community Development Director responded in the negative; stated the parcel has been found as a viable use and has focused on the proposed transaction.
The Economic Development Manager stated the original amount offered had been in the range of $270,000 but had not been viable.
Expressed concern and suggested other uses for the funds: Tod Hickman.
Mayor/Chair Ezzy Ashcraft expressed support for the matter moving forward; stated the site is important for transitional housing for those who are about to be or are formerly homeless; the transitional housing will help people find permanent housing.
Councilmember/Commissioner Knox White moved approval of the staff recommendation [including adoption of the resolutions and introduction of the ordinances].
Vice Mayor/Commissioner Vella seconded the motion.
Under discussion, Councilmember Herrera Spencer stated that she understands the housing will prioritize City residents; inquired whether all initial residents will be Alameda residents.
The Community Development Director responded the City is able to prioritize Alameda residents and initially fill the facility with 100% Alameda residents with permission from the County.
Councilmember/Commissioner Herrera Spencer inquired whether the participants have already been selected, to which the Community Development Director responded in the negative.
Councilmember/Commissioner Herrera Spencer inquired how staff will know that all participants are Alameda residents.
The Community Development Director responded stipulation will be the goal; stated staff has the opportunity and quantity to perform the requirement; if staff is unable to house 100% Alameda residents, a broader net would be cast with the help of the County.
Councilmember/Commissioner Herrera Spencer stated staff does not currently know whether the housing population will in fact be 100% Alameda City residents.
The Community Development Director stated that she will not know until people are identified, however, she plans on the program housing 100% Alameda residents.
Councilmember/Commissioner Herrera Spencer stated that she does not believe staff will know the program will house 100% Alameda residents; it is important that everyone is clear committing to house Alameda residents as the priority; she disagrees that the program population is currently known; requested clarification on whether other General Fund monies have been allocated to the project and whether program funding does not all come from ARPA funds; inquired whether General Fund money will other than the $430,000 will be allocated to the program.
The Economic Development Manager responded $1 million in General Fund dollars have been approved for the program; stated $430,000 is to be spent on acquisition; the balance will go towards contingency.
Councilmember/Commissioner Herrera Spencer inquired whether the City is responsible for running the program for 25 years, to which the Economic Development Manager responded 20 years.
Councilmember/Commissioner Herrera Spencer further inquired what occurs with the program if no available funding or other funding sources are available and whether the City will utilize General Fund money to keep the program going.
The Community Development Director responded the City has five years identified for funding the service; stated staff intends to apply for grants; funding is not currently secured for the program.
Councilmember/Commissioner Herrera Spencer inquired the anticipated annual cost for the program, to which the Community Development Director responded $2 million.
Councilmember/Commissioner Herrera Spencer stated the City will be responsible for the remaining 15 years; there is exposure to the City for an additional $30 million from the General Fund.
Mayor/Chair Ezzy Ashcraft inquired the identification process for potential residents of Dignity Village; stated that there are enough unsheltered individuals in Alameda to fill the program’s first round; Dignity Village residents will be aided to find housing, which will not necessarily be within Alameda due to the lack of permanent housing stock; housing is available within Alameda County; expressed support for doing anything possible to help move people from transitional to permanent housing; discussed the City working collaboratively with other cities to house a number of formerly unsheltered and unhoused individuals; stated it is great to house Dignity Village with 100% Alameda residents.
The Community Development Director responded the process will be multi-pronged with a team consisting of all the City’s social service providers and staff members; stated the providers will work to identify good candidates for the transitional housing; staff has placed some individuals in the emergency supportive housing; they are receiving social services while becoming housing-ready; the individuals will also be good candidates for the transitional housing of Dignity Village; staff will look to local experts for recommendations; Village of Love will be utilized due to their contact with the local unhoused population.
Councilmember/Commissioner Daysog noted that he posted responses to his questions asked prior to the meeting on Facebook.
On the call for the question, the motion carried by the following roll call vote: Councilmembers/Commissioners Daysog: Aye; Knox White: Aye; Spencer: No; Vella: Aye; and Mayor/Chair Ezzy Ashcraft: Aye. Ayes: 4. Noes: 1.
ADJOURNMENT
There being no further business, Mayor/Chair Ezzy Ashcraft adjourned the meeting at 8:00 p.m.
Respectfully submitted,
Lara Weisiger, City Clerk and Secretary, SACIC
The agenda for this meeting was posted in accordance with the Sunshine Ordinance.