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CITY OF ALAMEDA • CALIFORNIA
IF YOU WISH TO ADDRESS THE COUNCIL:
1. Please file a speaker's slip with the Deputy City
Clerk and upon recognition by the Mayor, approach
the podium and state your name; speakers are
limited to three ~3} minutes per item.
2. Lengthy testimony should be submitted in writing
and only a summary of pertinent points presented
verbally.
3. Applause and demonstration are prohibited during
Council meetings.
AGENDA - - -~ - - - - ADJOURNED REGULAR MEETING OF THE CITY COUNCIL
THURSDAY - - - - - - NOVEMER 6, 200$ - - - - 7:30 P.M.
[Note: Regular Council Meeting convenes at 7:30 pm, City Hall,
Co~~~ll C~aera, corner of Santa Clara Ave and Oak Std
The Order of Business for City Council Meeting is as follows:
1. Roll Call
2. Agenda Changes
3. Proclamations, Special Orders of the Day and Announcements
4. Consent Calendar
5. City Manager Communications
6. Agenda Items
7. Oral Communications, Non-Agenda Public Comment}
8. Council Referrals
9. Communications Communications from Council}
10. Adjournment
Public Participation
Anyone wishing to address the Council on agenda items or business
introduced by Councilmembers may speak for a maximum of 3 minutes
per agenda item when the subject is before Council. Please file a
speaker's slip with the Deputy City Clerk if you wish to address
the City Council
PLEDGE OF ALLEGIANCE
1. ROLL CALL -City Council
2. AGENDA CHANGES
3. PROCLAMATIONS, SPECIAL ORDERS OF THE DAY AND ANNOUNCEMENTS
4. CONSENT CALENDAR
Consent Calendar items are considered routine and will be
enacted, approved or adopted by ane motion unless a request
for removal for discussion or explanation is received from the
Council or a member of the public
4-A. Minutes of the Special and Regular City Council Meetings held
on October 21, 2008. City Clerk}
4-B. Bills for ratification. Finance}
4-C. Recommendation to award Contract in the Amount of $140,603,
including contingencies, to NorCal Pipeline Inspection for
Citywide Sewer Mains and Laterals Video Inspection, Phase 2,
No. P. W.07-08-19. Public Works}
4-D. Adoption of Resolution Approving the Final Map and Accepting
Associated Dedications and Easements for Tract 7723 Grand
Marina}. Public Works}
4-E. Adoption of Resolution ordering Vacation of a Portion of an
Existing 10' Wide Power Easement, Series No.79-196972,
Recorded October 2, 1979, O.R., Alameda County Recorder within
Parcel 2 of Parcel Map 2542 Filed Map Book 102, Pages 51 and
52, Recordation of Quitclaim, and Acceptance of Fifteen New
Power Easements within Parcel 2 of Parcel Map 2542 Alameda
Towne Centre } . ~ Public Works }
5. CITY MANAGER COMMUNICATIONS Communications from City Manager?
6. REGULAR AGENDA ITEMS
6-A. Adoption of Resolution Appointing Douglas Biggs as a Member of
the Social Services Human Relations Board.
6-B. Recommendation to select an Interim Operator to provide
management, operations and maintenance for the Chuck Corica
Golf Complex. Golf}
6-C. Recommendation to receive a Report on proposed PERS Golden
Handshake Retirement under California Government Code Section
20903. Human Resources}
7. ORAL COMMUNICATIONS, NON-AGENDA
Public Comment}
Any person may address the Council in regard to any matter
over which the Council has jurisdiction or of which it may
take cognizance, that is not on the agenda
8. COUNCIL REFERRALS
4
Matters placed on the agenda by a Councilmember may be acted
upon or scheduled as a future agenda item
8-A. Discussion of referring the Public Safety Memorandums of
Understanding to the Fiscal Sustainability Committee for
review and consideration. Mayor Johnson}
9. COUNCIL COMMUNICATIONS
Communications from Council}
Councilmembers can address any matter, including reporting on
any Conferences or meetings attended
9-A. Consideration of Mayor's nomination for appointment to the
Historical Advisory Board Architect Seat}.
10. ADJOURNMENT - City Council
~~*
• Materials related to an item on the agenda are available for
public inspection in the City Clerk's Office, City Hall, Room
380, during normal business hours
• Sign language interpreters will be available on request. Please
contact the City Clerk at 747-4800 or TDD number 522-7538 at
least 72 hours prior to the Meeting to request an interpreter
• Equipment for the hearing impaired is available for public use.
For assistance, please contact the City Clerk at 747-4800 or TDD
number 522--7538 either prior to, or at, the Council Meeting
• Accessible seating for persons with disabilities, including
those using wheelchairs, is available
• Minutes of the meeting available in enlarged print
• Audio Tapes of the meeting are available upon request
• Please contact the City Clerk at 747-4800 or TDD number 522-7538
at least 48 hours prior to the meeting to request agenda
materials in an alternative format, or any other reasonable
accommodation that may be necessary to participate in and enjoy
the benefits of the meeting
UNAPPROVED
MINUTES OF THE SPECIAL CITY COUNCIL MEETING
TUESDAY - ~- - OCTOBER 21, 2008 - - - 6:00 p.m.
Mayor Johnson convened the Special Meeting at 6:05 p.m.
ROLL CALL -- Present: Councilmembers deHaan, Gilmore, Matarrese,
Tam, and Mayor Johnson - 5.
Absent: None.
The Special Meeting was adjourned to Closed Session to consider:
08- Conference with Labor Negotiators; Agency Negotiators:
Craig Jory and Human Resources Director; Employee organizations:
All Bargaining Units.
X08- }Conference with Legal Counsel - Anticipated Litigation;
Initiation of litigation pursuant to subdivision ~c} of Section
54956.9; Number of cases: One.
Following the Closed Session, the Special Meeting was reconvened
and Mayor Johnson announced that regarding Labor, Council received
a briefing from Labor Negotiators regarding status; no action was
taken; regarding Legal, Legal Counsel briefed Council on potential
litigation; Council provided direction to Legal Counsel.
Adjournment
There being no further business, Mayor Johnson adjourned the
Special Meeting at 7:25 p.m.
Respectfully submitted,
Lara Weisiger
City Clerk
The agenda for this meeting was posted in accordance with the Brown
Act.
Special Meeting
Alameda City Council
October 21,, 2008
UNAPPROVED
MINUTES OF THE REGULAR CITY COUNCIL MEETING
TUESDAY - - - - - - OCTOBER 21, 2008 - - - - 7:30 P.M.
Mayor Johnson convened the Regular Meeting at 5:54 p.m.
ROLL CALL - Present: Councilmembers deHaan, Gilmore, Matarrese,
Tam, and Mayor Johnson - 5.
Absent: None.
AGENDA CHANGES
None.
PROCLAMATIONS, SPECIAL ORDERS OF THE DAY AND ANNOUNCEMENTS
X08- } Proclamation declaring October 2008 as Breast Cancer
Awareness Month.
Mayor Johnson read and presented the proclamation to Susan Bunker.
Ms. Bunker thanked Council for the proclamation.
X08- } Proclamation recognizing the benefits of public power and
honoring Alameda Power and Telecom for its contributions to the
community.
Mayor Johnson read and presented the proclamation to the Alameda
Power and Telecom General Manager,
The Alameda Power and Telecom General Manager thanked Council for
the proclamation.
CONSENT CALENDAR
Councilmember deHaan moved approval of the Consent Calendar.
Councilmember Matarrese seconded the motion, which carried by
unanimous voice vote - 5. [Items so enacted or adopted are
indicated by an asterisk preceding the paragraph number.]
~*O8- } Minutes of the Special City Council Meeting held on
October 1, 2008; Special City Council Meeting held on October 2,
2008; Special and Regular City Council Meetings held on October 7,
2008. Approved.
~*08- } Ratified bills in the amount of $2,722,309.26.
Regular Meeting 1
Alameda City Council
October 21, 2008
~*08- } Recommendation to accept the Annual Report for the
Managed Investment Portfolio for Fiscal Year 2007-2008. Accepted.
~*08- } Recommendation to adopt Plans and Specifications and
authorize Call for Bids for Signal Coordination on Eighth Street,
Otis Drive, and Park Street/San Jose Avenue, No. P.W. 01-08-03.
Accepted.
~*08- } Resolution No. 14277, "Authorizing the City Manager to
Execute the Grant Contract
Department of Boating and
Department." Adopted.
Between the State of California
Waterways and the Alameda Police
~*08- } Resolution No. 14278, "Approving an Agreement with
Ameresco Butte County LLC for the Purchase of Power from Landfill
Gas Generation for a 20-Year Term." Adopted.
~ *08--
} Resolution No. 14279,
rropositlon ~~,„ Aaoptea.
CITY MANAGER COMMUNICATIONS
"Recommending Opposition to
X08- } Discuss the principles and framework far the potential
cuts to balance the City's Fiscal Year 2009-10 budget.
The City Manager gave a Power Point presentation.
Mayor Johnson opened the public portion of the meeting.
Tony Santare, Mastick Senior Center Advisory Board submitted
comments}; Ewart A, Wetheral, Mastick Senior Center submitted
comments}; Barry Christensen, Mastick Senior Center; Jim Thomas,
Mastick Senior Center; Virginia Fierro, Mastick Senior Center;
Arlene Talbot, Alameda; Patricia Meier, Alameda; alga Crowe,
Alameda; Domenick Weaver, Alameda Firefighters submitted study};
Albert J, Hahane, Residents for Cardinal Point; Ken Gutletsen,
Alameda; Robbie Dileo, Alameda Museum; Chuck Millar, Alameda
Museum.
There being no further speakers, Mayor Johnson closed the public
portion of the meeting.
Councilmember Matarrese stated decisions will not be made on
potential cuts tonight; that he would like Council to give
direction on policy standards to provide measurement and flattening
and restructure the organization, which have been addressed at
prior budget hearings; cuts should be made farthest away from the
Regular Meeting
Alameda City Council
October 21,, 2008
point of service delivery; the City has a structural problem that
needs to be fixed; consolidating departments should be reviewed.
Councilmember deHaan stated more impacts can be anticipated due to
the current financial crisis; concurred with Councilmember
Matarrese; stated funding was strong from 1995 to 2000; that he
would like to compare current staffing with levels ten years ago;
he is appalled that Mastick Senior Center closure is being
considered as a potential cut.
Councilmember Matarrese stated the City Manager and Department
Heads are responsible for determining how to deliver service; that
he wants to outline what services need to be protected; public
safety staffing needs to be maintained at a level to ensure
adequate response time; that he is pleased that the Police Chief is
urging Council not to consider a Special Duty Unit reduction which
would result in the loss of a parolee, a probationer, sex
registrant monitoring, special operations capabilities, and
surveillance and investigative functions; the City is kept safe
because of parolee surveillance, speed limit enforcement, and
property crime investigation; the City has three missions: 1}
keeping the City safe; Z} protecting individual citizens; and 3}
protecting infrastructure; the City cannot eliminate sidewalk and
tree pruning maintenance.
Mayor Johnson stated the Fire and Police Departments'
Sustainability Reports should have included economic analysis and
been a financial planning tool for the next five or ten years;
reports should include the retirement medical cost issue.
Councilmember Gilmore stated follow up should be given to the
possibility of contracting out certain Finance Department
functions, such as payroll, parking citations, business licenses,
etc., as well as combining Risk Management and Human Resources into
one administrative department; consolidating Boards and Commissions
should be reviewed because City time is used to staff the Boards
and Commissions; contracting out engineering services should be
reviewed; that she is not sure about contracting aut Fire services
to the County; that she does not see how public safety services
will not be touched given the fact public safety accounts for 660
of the General Fund.
Councilmember Matarrese stated that he would like the City Manager
to explore the possibility of contracting in; Alameda Unified
School District could contract with the City for field maintenance
and payroll services; part-time versus full-time employment should
be reviewed for professional services.
Regular Meeting 3
Alameda City Council
October 21, 2008
Mayor Johnson stated issues should be reviewed with more of an open
mind; Council has been clear on minimizing public service cuts as
much as possible; many cities utilize retirees to supplement public
safety forces; the Fire Dispatch Center was contracted out years
ago; the Police Chief provided a brief analysis on the matter, but
numbers were not provided.
The City Manager stated that the issue was noted as something to
consider in the future because more analysis is needed.
Mayor Johnson stated the issue should be reviewed if there is a
possibility to save money and provide the same service; every issue
should have an associated dollar amount.
The City Manager stated that staff is working to ensure that costs
are identified in future studies; structural changes can be
reviewed; the amount needed to balance the [2009-2010] budget is
substantial.
Mayor Johnson stated Council needs to know the exact amount of
money that would be saved by eliminating positions, including
retirement benefit costs.
Vice Mayor Tam stated the City does so much with so little; the
City's public utility is doing very well; fifty percent of the
Assistant City Manager's time is charged to Alameda Point; Mastick
Senior Center is a model for the region; the Police and Fire
Departments are incredible; it is important to see whether
structural changes would have an impact on the General Fund; that
she is not sure whether all Public Works' programs are charged to
the General Fund; questioned whether funding is received for tree
trimming and sidewalk repair; stated clear assessments need to be
made regarding contracting out public safety services to Alameda
County; the City is not facing easy choices.
Councilmember Gilmore stated Council is discussing 2009-2014 budget
cuts now; economic advisers do nat see the financial situation
getting better for a few years; she does not want the City to
become another Vallejo.
Councilmember Matarrese stated people do not want to put a price
tag on public safety services or the Mastick Senior Center, but the
services cost money; the City's core missions and need to be
reviewed.
Councilmember deHaan stated the City's financial situation
developed over several years; corrections need to be made now to
avoid further impacts.
Regular Meeting 4
Alameda City Council
October 21, 2408
Mayor Johnson stated the City cut $4 million [from the budget] this
year; millions of dollars were cut the year before; structural
reform i s needed .
The City Manager stated expenditures and revenues will continue to
be monitored; the community will be impacted.
Mayor Johnson stated Council voted to place Measure P on the ballot
to increase revenue; people need to be given a choice between
increasing revenue or making cuts; a public safety parcel tax
polled very poorly.
Councilmember Matarrese stated some departments may need to be
consolidated; the City cannot support the current structure;
sharing services with the School District should be reviewed; the
City cannot afford not to develop the North of Lincoln Avenue and
Alameda Landing projects.
The City Manager stated the Revenue Enhancement Team looked at a
variety of revenue raising opportunities; discussions involved
using Marina fees to help support public safety services in the
area.
Mayor Johnson stated Council needs more information on Marina fees.
Councilmember Gilmore stated tonight's report is very clear and
helpful; requested that the report be posted more predominately on
the City's website.
Councilmember Matarrese stated an analysis will be needed following
the outcome of Measure P; quarterly reports will be provided in
November; mid-year reports will be provided in February; the budget
will be reviewed in May.
Councilmember deHaan stated most municipalities are going through
the same exercise and are making drastic cuts.
Mayor Johnson stated Measure P would lessen cuts, but cuts would
still need to be made.
REGULAR AGENDA ITEMS
X08- } Recommendation to receive the Fiscal Sustainability
Committee report on other Post Employment Benefits.
The Interim Finance Director gave a presentation.
Regular Meeting 5
Alameda City Council
October 21, 2008
Mayor Johnson inquired what happens when a retiree reaches an age
to qualify for Medicare, to which the City Manager responded that
information will be provided.
Mayor Johnson inquired whether a significant number of increased
participates need to be assumed.
The Interim Finance Director responded actuarial assumptions are
based on certain revenue and cost growth estimates; stated
actuarial assumptions need to be updated every twenty-four months.
Mayor Johnson stated that projecting the number of retirees in the
next ten years is important.
The Interim Finance Director stated that employee census growth is
addressed [in actuarials].
Mayor Johnson requested clarification on national health care in
ten years.
' The Interim Finance Director stated Bartel Associates' theory is
that national health care costs would be the base line; the amount
would be subtracted from the City's liability.
Mayor Johnson stated that she does not agree with said assumption;
assumptions need to have a rational basis; reducing the health care
rate of inflation to 4.2o is irresponsible.
Councilmember Matarrese stated the assumption should not be made.
The Interim Finance Director continued the presentation.
Kevin Kennedy, Fiscal Sustainability Chair and City Treasusrer,
gave a brief presentation.
***
~08~-428} Vice Mayor Tam moved approval of continuing the meeting
past midnight.
Councilmember deHaan seconded the motion, which carried by
unanimous voice vote - 5.
*~~
Vice Mayor Tam stated that the $6 million cash payment assumes a
4.5% and 7.75 fixed rate of return.
Mr. Kennedy stated the higher rate of return is being used; the
money set aside to deal with the liability can be invested like a
pension fund investment; the City's General Fund can only have
Regular Meeting
Alameda City Council
October 21, 208
highly rated securities with very limited maturity; the Public
Employee Retirement System ~PERS7 has a program that cities can use
to set up irrevocable trusts to fund oPEB benefits.
Vice Mayor Tam inquired whether the City would need to contribute
more i f the return i s not 7.7 5 0.
Mr. Kennedy responded figures should not deviate very much unless
staff levels significantly change or there is an unusual employee
turnover.
Mayor Johnson inquired what is the Fiscal Sustainability
Committee's recommendation, to which Mr. Kennedy responded a
straight thirty-year amortized schedule.
Councilmember Matarrese inquired whether outstanding loans from
Alameda Power and Telecom SAP&T} and Alameda Reuse and
Redevelopment Authority ~ARRA} are returning approximately 60
interest each.
The Development Services Manager responded ARR.A is paying interest
only to the General Fund; stated the principle would not retire;
AP&T is not paying anything on its obligation,
Couricilmember Matarrese inquired whether lease revenues are pumped
into the General Fund as an interest only payment.
The Development Services Manager responded a payment of $130,000 is
made, which is 6a in interest.
Councilmember Matarrese stated the interest comes from lease
payments; lease revenue is to go into infrastructure and
maintenance at the former Base, but is going into the General Fund.
Mayor Johnson stated Council needs to decide whether revenue should
come to the General Fund or go into crumbling infrastructure that
the City does not own.
Vice Mayor Tam inquired whether redevelopment funds would be
protected from State raiding if revenues were put into the General
Fund.
The Development Services Director responded lease revenue funding
does not have anything to do with tax increment received from the
State; stated the law states that a city's General Fund can make
the payment; ARRA is scheduled to make principle payments this
fiscal year,
Regular Meeting 7
Alameda City Council
October 21, 208
Councilmember Matarrese stated the question is whether principle
payments should be made; decisions need to be made on the best
place for cash flow.
Mr. Kenney stated the City is trying to work another $2.5 million
into a budget that is already strained to ensure that obligations
are met; the City may get to a point where the retiree budget will
engulf the entire budget for current services.
Mayor Johnson questioned how the City will provide needed levels of
public safety when payments are required for retiree health
benefits.
Mr. Kennedy stated that a lot of
the current economy is exposing
hidden by a strong economy.
cities are looking at the issue;
a lot of weaknesses that were
Vice Mayor Tam inquired whether the Committee's recommendation is
Alternative B, which requires raising an additional $2.3 million on
top of $1.2 million; stated Alternative B would increase the
shortfall of approximately $4 million next year to $6.3 million;
questioned whether the Committee is suggesting that the City not
tap into the fund balance for said amount.
Mr. Kenney responded in the affirmative; stated the General Fund
balance could be spent down to zero if significant changes are not
made to free up revenue going forward; stated the City has a $75
million liability; staff presented a variety of payment options;
there is a lot to be said for pre-funding as much as possible.
Mayor Johnson inquired how many retirees are assumed on Attachment
B and what are the premiums.
Mr. Kennedy responded the current population was considered and
assumptions were made regarding turnover and change in
demographics.
Councilmember Matarrese stated no one is supporting the pay-as-you-
go approach; the question is how much the City will pay over and
beyond the annual premium; the money needs to be squeezed out of an
already tight budget; that he appreciates the work of the Fiscal
Sustainability Committee; he prefers a fixed figure even if
adjustment would be needed; the obligation is real and contracted;
that he likes the idea of taking the from an ARRA loan to help fund
the obligation.
Mayor Johnson concurred with Councilmember Matarrese; stated a
fixed number has to be set; funding was not provided for the 1079
Regulax Meeting
Alameda City Council
October 21, 2oas
and 1082 Plans; Council is dealing with the consequences.
Mayor Johnson opened the public portion of the hearing.
Michael D'orazi, IAFF 689, stated the Police and Fire Associations
did not get off to a good start when the City was approached for
transferring the 1082 Plan to PERS; the ball was set in motion
through a meeting with Former Mayor Chuck Corica; acturarial
assumptions were obtained from PERS which showed that the City
would save 130 on employer costs for pensions and there would be
$3 million left over after the conclusion of transfer of funds;
public retiree healthcare benefit discussions were limited because
everyone felt that life expectancy for public safety employees was
shorter; discussions continued for adding spouses to the benefit;
the 13o could have been used to help pre-fund pension costs; pre-
funding is an important option to consider; urged Council to be
cautious; stated only two people are left in the 1082 Plan; the
1079 Plan unfunded liability will decrease substantially over the
next few years .
There being no further speakers, Mayor Johnson closed the public
portion of the hearing.
The Interim Finance Director noted that the City would have more
than an additional $700,000 shortfall if repayment of the ARRA
obligation was included in the current budget and 2009-2010 budget.
Councilmember Gilmore thanked the Interim Finance Director and
Fiscal Sustainability Committee for the report; stated that she
knew there was an oPEB liability, but she did not know what target
the City needed to shoot for to start paying for the obligation.
Mr. Kennedy stated that the Fiscal Sustainability Committee would
not provide a final report in January.
Councilmemer Matarrese thanked the Fiscal Sustainability Committee
for input and the Interim Finance Director for a clear
presentation; stated that no one anticipated the rise in healthcare
costs; the 1079 and 1082 Plans are in sunset and provide an
opportunity for some ramping up; that he would like staff to come
back with a hybrid approach which would include pre-funding ramp up
and Alternative E.
In response to Mayor Johnson's comments regarding mandatory
payment, Mr. Kennedy stated one way to make payment mandatory could
be pre-funding with a bond; if a $50 million pension bond were
issued, a 5o interest rate would equal $2.5 million in interest
payments; earning 6o-8o would result in additional revenue; the
Regular Meeting 9
Alameda City Council
October 21, 2008
interest payment would be non-negotiable.
Councilmember deHaan stated that Peralta Community College District
had an approximate 20 delta between what was borrowed on a bond and
what was earned.
Mayor Johnson stated that a number needs to be set and consequences
need to be known; requiring non-discretionary payments could be
established through an ordinance or could be part of the Charter.
Mr. Kenney stated that he would have an issue with issuing a bond
on the entire obligation; a number of cities have partially pre-
funded the obligation.
The Interim Finance Director stated pension obligation bonds are
taxable; borrowing $75.4 million of taxable municipal debt at
today's rate would result in a $3.2 million payment; the bond would
be a serial bond and would never stop.
Mr. Kenney stated bond counsel could provide more information on
the matter.
The Interim Finance Director stated that paying the $75.4 million
over thirty years would result in paying three times the amount; a
bond would be good for pre-funding the obligation and controlling
the difference of the delta every year.
Mr. Kenney stated the pay-as--you-go approach is irresponsible;
commended Council for facing the issue; stated more information is
needed on how a pension bond would work.
Mayor Johnson stated information is needed on paying the obligation
over thirty years, the 1079 and 1082 Plans, and using [1079 and
1082 Plan] decreases to pay for the current [oPEB] plan.
Councilmember Matarrese stated consensus is: not to select the pay-
as-you-go approach; to shoot for the $4.4 million; to review the
pension bond alternative; and to see how $2.8 million from the 1079
and 1082 Plans figure into payment; further stated a resolution or
ordinance could be considered as a vehicle for locking in the
payment commitment.
Councilmember Gilmore stated that she wants information on General
Fund repercussions.
Vice Mayor Tam requested clarification on the $3 million that was
to go into the OPEB [when the 1079 and 1082 Plans ended]and where
the 13p savings went that the City incurred as a result of the
Regular Meeting 1 Q
Alameda City Council
October 21, 2008
conversion from the 1079 and 1082 Plans; stated that she wants to
avoid repeating past mistakes.
Mayor Johnson stated actuarial numbers need to be reviewed in order
to ensure that payments are adequate.
Councilmember Matarrese stated dramatically increased healthcare
costs and participant fluctuation need to be considered.
Councilmember deHaan stated today has to be the worst of all times
to pay but might be the best in terms of securing a band.
Mr. Kennedy stated markets have been frozen; IBM borrowed money at
250 basis points over Treasury, which is ridiculous.
The Interim Finance Director stated that the last quarter
statistics indicated that the Municipal Bond market was 250 less
than demand; timing is the issue; updated actuarial assumptions are
needed; real numbers are needed.
Councilmember Matarrese stated accurate information is needed, but
he does not want the matter pushed aside.
X08- } Report on the impact of the Chuck Corica Golf Complex Fee
Increases.
The Interim Golf Manager gave a brief presentation.
Councilmember deHaan stated rounds have increased, but cart rentals
have decreased.
The Interim Golf Manager stated golfers are making careful spending
decisions.
Mayor Johnson stated one month's data is not enough to track
impacts.
Jim Strehlow, Alameda, stated fewer people will play golf because
of the current economic conditions; Council should not rely on
short-term impacts.
Jane Sullwold, Alameda Golf Commission, stated September 2005 only
had four weekends and did not include Labor Day weekend, which was
included in September 2007 statistics; revenue increased by
approximately $24,000; the first month was a very positive
experience under the new rate structure; the Interim Finance
Director has been extremely helpful in providing information to the
Golf Commission.
Regular Meeting 1 1
Alameda City Council
October 21, 2008
In response to Councilmember deHaan's inquiry regarding figures,
Ms. Sullwold stated the Par 3 Course continues to increase in play
and decrease in revenue.
Mayor Johnson inquired whether increased rates would decrease play.
Ms. Sullwold responded higher rates decreased play in the past;
stated the Par 3 Course if price sensitive.
SOS- ~ Recommendation to authorize the City Manager to negotiate
a Master Siting Agreement with AT&T to upgrade their distribution
system in order to provide Lightspeed Services in Alameda and to
execute all necessary documents to implement the project.
The Public Works Coordinator gave a brief presentation.
Mayor Johnson inquired whether every site would require a permit.
The Public Works Coordinator responded in the affirmative; stated
notification would be provided to property owners within 300 feet
of a site.
Mayor Johnson inquired whether Council has the ability to say no to
the Agreement.
The Public Works Coordinator responded in the negative; stated the
City would have the right to control the way equipment would be
installed within the public right-of-way.
Mayor Johnson inquired whether the franchising roll has been taken
over by the State, to which the Public Works Coordinator responded
in the affirmative.
Councilmember Matarrese stated the staff report indicates that the
City would receive a 5o franchise fee; inquired how much the 5~ is
in dollars.
The Public Works Coordinator responded 5a of gross revenue for
video services; stated the actual dollar amount would depend on
sales.
Councilmember Matarrese inquired whether the 50 [franchise fee] is
in the budget.
The Public Works Coordinator responded in the negative; stated
constructing the system would take approximately eighteen months.
Regular Meeting 1 2
Alameda City Council
Dctober 21, 20Q8
Mayor Johnson inquired why the City cannot charge franchise fees on
satellite dishes.
The Public works Coordinator stated franchise fees are for
occupation of right-of -ways .
Councilmember deHaan inquired whether all cabinets would be on
public property, to which the Public Works Coordinator responded
all cabinets would be within the public right-of-way.
Councilmember deHaan inquired whether any cabinets would be placed
on private property at any point.
The Public works Coordinator responded there are no plans to place
the cabinets on private property.
Councilmember deHaan inquired whether locations would be new.
The Public Works Coordinator responded in the affirmative; stated
AT&T estimates that seventy-seven boxes will be installed; the
quantity depends depend on cable length; the new cabinets would be
within 150 feet of the existing Serving Area Interface ~SAI~
cabinets.
Councilmember deHaan inquired whether electrical underground boxes
were placed on public or private right--of-ways, to which the Public
works Coordinator responded public right-of-way.
Mayor Johnson stated placing some of the cabinets on private
property would be beneficial; placing cabinets in landscape areas
would be better.
Councilmember deHaan inquired whether AT&T would be willing to
subsidize staff's efforts.
The Public works Coordinator responded AT&T would be pay for
permits.
Councilmember deHaan inquired whether permit fees would be
adequate, to which the Public Works Coordinator responded in the
affirmative.
Vice Mayor Tam stated the Agreement has a lot of protections for
the City.
Councilmember Gilmore moved approval of the staff recommendation.
Vice Mayor Tam seconded the motion, which carried by unanimous
Regular Meeting 1 3
Alameda City Council
October 21, 2QQ8
voice vote - 5.
X08- }Resolution No. 14280, "Approving the Amended and Restated
Northern California Power Agency Power Pooling Agreement." Adopted.
The Utility Planning Supervisor provided a brief presentation.
The City Manager stated that the Agreement was unanimously approved
at the Public Utilities Board meeting last night.
Mayor Johnson inquired whether all Northern California Power Agency
members are changing the Agreement, to which the Utility Planning
Supervisor responded in the affirmative.
Councilmember Matarrese inquired whether the Agreement would have
any affect on the source of power generated.
The Utility Planning Supervisor responded there should be no
impact; stated the City has been operating under revised procedures
for a number of years.
Vice Mayor Tam moved adoption of the resolution.
Councilmember Matarrese seconded the motion, which carried by
unanimous voice vote - 5.
ORAL COMMUNICATIONS, NON-AGENDA
Public Comment}
t08- } Griff Neal, Alameda, submitted handout; stated
undergrounding costs were estimated to cost homeowners between
$1,500 and $2,000; that his estimate is $10,000; electric services
can be reimbursed but cable and phone service costs are divided by
the number of services; hook up costs are not reimbursed if a house
requires a non-standard service hook up.
Mayor Johnson requested that information be provided to Council on
how charges work and the reimbursement process.
Councilmember Matarrese requested that the matter be agendized so
that Council can take action.
Mr. Neal suggested selling AP&T to balance the budget.
COUNCIL REFERRALS
None.
COUNCIL COMMUNICATIONS
Regular Meeting 1 4
Alameda City Council
October 21, 2008
X08- } Consideration of Mayor's nomination for appointment to
the Social Services Human Relations Board. [110-20]
Mayor Johnson nominated Douglas Biggs.
X08- } Councilmemer deHaan stated that gas prices are down;
ferry fees were raised; inquired whether the increase should be
revisited.
The City Manager responded that she would check with the Public
Works Department.
Mayor Johnson stated that fees could possibly be reduced.
~08M } Councilmember Matarrese stated that he attended the AC
Transit Interagency Liaison Committee Meeting; he requested that
Council receive a report on the meeting because discussions
included casual carpooling and line 63; the line 63 route changes
only saved two minutes.
Mayor Johnson inquired what were the thoughts on casual carpooling.
Councilmember Matarrese responded points of discussion included:
1} casual carpooling is bad for the bus system; 2} the City should
place a sign for a designated casual carpooling zone; and 3} casual
carpooling should be moved to a ride share location; stated the
matter is a question of policy.
Councilmember deHaan stated concerns involved sheriff's issuing
tickets.
Councilmember Matarrese stated tickets are issued if someone pulls
up to a red zone that is a bus stop.
X08- } Vice Mayor Tam stated that she attended the League of
California Cities East Bay Division meeting last Thursday; PG&E
made a presentation; PG&E is trying to reduce its carbon footprint;
Berkeley, Albany, and Emeryville are trying to create a municipal
public power entity; studies show that rates would be 10o higher
because of PG&E's broad base; that she has been elected to the
Executive Board which requires reviewing legislation on local
control for the Light Brown Apple Moth issue.
Mayor Johnson inquired what is PG&E's renewable portion of their
portfolio.
The AP&T General Manager responded 11a; stated AP&T is number one
Regular Meeting 1 5
Alameda City Council
October 21, 2Da8
in the State.
ADJOURNMENT
X48- 7 Mayor Johnson announced that the November 4, 2008 Regular
City Council Meeting will be adjourned to November 6, 2448 due to
the November 4, 2008 General Municipal Election.
There being no further business, Mayor Johnson adjourned the
Regular Meeting at 1:45 a.m.
Respectfully submitted,
Lara weisiger
City Clerk
The agenda for this meeting was posted in accordance with the Brown
Act.
Regular Meeting 1
Alameda City Council
Cctaber 2l, 2008
C[TY OF ALAMEDA
Memorandum
To: Honorable Mayor and ~ ~ ;
Members of the City Council ~ ~
.,
From: Ann Marie Gallant
Interim Chief Financial Officer
Date: October 30, 2008
Re: List of Warrants for Ratification
This is to certify that the claims listed on the attached check register and sh own below have been
approved by the proper officials and, in my opinion, represent fair and just charges against the City in
accordance with their respective amounts as indicated thereon.
Check Numbers Amount
2~ 4482 - 2~ 4882 $5,209,fi77.58
E FT fi05 $40, D57.32
EFT fi06 $736,658.00
EFT fiD7 $58,597.2fi
EFT 608 $184,85.54
EFT 609 $52,543.57
Void Checks:
2 ~ 4560
2 ~ 43D4
($2,637.80)
($10.00)
G RAN D TOTAL $fi,279,17 ~ .57
Respectfully submitted,
Chief Financial ficer
BILLS #4-B
Council Warrants 1 X104108 ~ X1412008
CITY of ALAMEDA
Memorandum
To: Honorable Mayor and
Members of the City Council
From: Debra Kurita
City Manager
Date: November 6, 2008
Re: Award a Contract in the Amount of $140,603, Including Contingencies, to
NorCal Pipeline Inspection, for Citywide Sewer Mains and Laterals Video
Ins ection Phase 2 No. P. w.07-08-19
BAC KG RD U N D
Gn August 19, 2008, the City Council adopted plans and specifications, and authorized
a call for bids for citywide sewer mains and laterals video inspection, phase 2, No. P.`II1.
07-08-19. The project will video inspect and clean approximately 40,000 linear feet of
sewer mains and laterals. An add alternate option is included for the disposal of
contaminated material, if necessary.
The City of Alameda, as a Sanitary Sewer Collection System Agency, is required to
prepare and update a Sewer Collection System Management Plan ~SSMP} pursuant to
Section 13267 of the California water Code. The information obtained from the video
inspection is essential to the preparation of the City's SSMP.
DISCUSSION
To solicit the maximum number of bids and most competitive price, specifications were
provided to 1l separate building exchanges throughout the Bay Area. A notice of bid
was also published in the Atamea~a Journal. Three contractors submitted bids, and the
bids were opened on September 16, 2008. The list of qualified bidders, from lowest to
highest total project costs, is:
Bidder Location Bid Amount
NorCal Pipelines Inspection Yuba Cit , CA $117,169
JF Pacific Liners, Inc. Vacaville, CA $193,450
D'Arc & Harty San Francisco, CA $221,190
Staff contacted several references provided by the low bidder and received positive
feedback about the quality and timeliness of their work. Staff proposes to award a
contract to NorCal Pipeline Inspection, for a total amount of $140,603, including a 20%
contingency. A copy of the contract is on file in the City Clerk's office.
City Council
Agenda Item #4-C
~ ~-o6-os
Honorable Mayor and November 6, 2008
Members of the City Council Page 2 of 2
BUDGET CGNSIDERATIGNIFINANCIALlMPACT
The project is budgeted in the Capital Improvement Program Project No. 90-61}, with
monies allocated from the Sewer Enterprise Funds.
MUNICIPAL C4DElP4LICY DOCUMENT CROSS REFERENCE
This action does not affect the Alameda Municipal Code.
ENVIRGNMENTAL REVIEW
!n accordance with the California Environmental Act ~CEQA}, this project is
Categorically Exempt under CEQA Guidelines Section 15306, Information Collection.
RECGMMENDATION
Award a contract in the amount of $140,603, including contingencies, to NorCal Pipeline
Inspection, for citywide sewer mains and laterals video inspection, phase 2, No. P. VIJ.
01-08-19.
Respec ully submitted,
Matthew T. Naclerio
Public Works Director
~r.
By: Paul Soo, Jr.
Junior Enginee
MTN:PSJ:gc
CITY OF ALAMEDA
Memorandum
To: Honorable Mayor and
Members of the City Council
From: Debra Kurita
City Manager
Date: November 6, coos
Re: Adopt a Resolution Approving the Final Map and Accepting Assaciated
Dedications and Easements for Tract 1123 Grand Marina
BACKGROUND
On January 16, ZOOl, the City Council adopted Resolution No. 14063 approving
Tentative Map 1123, which created 40 residential parcels known as Grand Marina. The
property is located at the northwest corner of Grand Street and Fortmann Way.
DISCUSSIGN
The Final Map has been reviewed and determined tv be technically correct and in
substantial conformance with the City's approved Tentative Map and Conditions of
Approval. The tract will consist of 4o detached residential units, ten of which will be
affordable housing. The tract also includes two private mini-parks.
The Final Map includes easements for emergency vehicle access, public utilities,
private access, private storm drains and sanitary sewers, and surface drainage runoff.
All infrastructure within the development, including streets, alleys, sanitary sewer, storm
drains, and landscaping will be maintained by the property owners. In addition, an
operation and maintenance agreement for the storm drainage improvements will be
required prior to the issuance of a Certificate of Gccupancy. A financial security
guaranteeing the construction of the public improvements, and the associated labor and
materials, has been established. The Final Map is on file in the City Clerk's Office.
BUDGET CONSIDERAT14N1FINANCIAL IMPACT
Approval of the Final Map and resolution does not affect the General Fund.
MUNICIPAL CGDEIP~LICY DOCUMENT CROSS REFERENCE
This project is consistent with the Municipal Code.
City Council
Report Re:
Agenda item #4-Q
~ ~ -os-o$
Honorable Mayor and
Members of the City Council
ENVIRONMENTAL REVIEW
November 6, 208
Page 2 of 2
The approval of the Final Map is ministerial and thus in accordance with the California
Environmental Quality Act ~CEQA}, this project is Categorically Exempt under CEQA
Guidelines.
RECOMMENDATION
Adopt a resolution approving the Final Map and accepting associated dedications and
easements for Tract 1728 Grand Marina}.
Respectfully submitted,
Matthew T. Naclerio
Public Works Director
~~~~~~ C~~?a~~
By: Robert Claire ~qc-
Associate Civil Engineer
MTN:RC:gc
CITY OF ALAMEDA RESOLUTION NO.
APPROVING THE FINAL MAP AND ACCEPTING
ASSOCIATED DEDICATIONS AND EASEMENTS FOR
TRACT 7723 (GRAND MARINA)
E
L
0
0
~.
WHEREAS, on October 23 2006, by Resolution No. PB-06-44 the Planning
A Board of the City of Alameda ~"City"}approved the Development Plan and Desi n
~. 9
Q Review for the Grand Marina Village ~PDQ5-20051DRD5-0126}; and
WHEREAS, on Gctober 23 2006, by Resolution No. PB-06-43, the Planning
Board of the City recommended approval of Tentative Map Tract 7723; and
WHEREAS, pursuant to Resolution No. 14063, the City Council approved
Tentative Map Tract 7123 for forty residential lots on January 16, 2007; and
WHEREAS, Final Map 7723 is ministerial and is thus exempt under the
California Environmental Quality Act ~CEQA}; and
WHEREAS, said Final Map delineates thereon for dedication to the public
easements for utilities, streets and emergency vehicle access; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Alameda that the Final Map of Tract 7723 be, and hereby is, approved.
BE IT FURTHER RESGLVED that said easements offered for dedication to
the public have been accepted on behalf of the public for use in conformity with
the terms of the offers of dedication.
BE IT FURTHER RESGLVED that the agreement far construction and
completion of the public improvements in said tract pursuant to the Agreement
and all its terms and conditions be, and hereby are, approved and the City
Manager and the City Clerk are authorized and directed to execute and attest to,
respectively, said Agreement on behalf of the City of Alameda; and
BE IT FURTHER RESOLVED that the Security guaranteeing full and
faithful performance of said public improvements, labor, and materials are
hereby approved as sufficient in amount.
*****~
Resolution #4-D CC
11.06.08
I, the undersigned, hereby certify that the foregoing Resolution was duly
and regularly adopted and passed by the Council of the City of Alameda in a
regular meeting assembled on the 6th day of November, Zoos, by the following
vote to wit:
AYES:
NOES:
ABSENT:
ABSENTI4NS:
IN ~NITNESS, vVHERE~F, I have hereunto set my hand and affixed the
official seal of said City this lt~ day of November, 2008.
Laravveisiger, City Clerk
City of Alameda
CITY ~F ALAMEDA
Memorandum
To: Honorable Mayor and
Members of the City Council
From: Debra Kurita
City Manager
Date: November 6, 2008
Re: Adopt a Resolution Ordering Vacation of a Portion of an Existing 10' Wide
Power Easement, Series No.79-196972, Recorded October 2, 1919, C.R.,
Alameda County Recorder Within Parcel 2 of Parcel Map 2542 filed Map
Book 102, Pages 51 and 52, Recordation of Quitclaim, and Acceptance of
Fifteen New Power Easements Within Parcel 2 of Parcel Map 2542
{Alameda Towne Centrel
BACKGROUND
Cn October 2, 1919, aten-foot power easement for electrical distribution lines was
granted to the City of Alameda by Harsch Investment Realty, LLC Harsch}. Recent
tenant and parking improvements have been constructed in Alameda Towne Centre,
resulting in the removal of existing and the installation of new Alameda Power &
Telecom SAP&T} electrical distribution lines. Harsch has provided fifteen new
easements, designated as Parcel 1 through 15, as requested by AP&T for the newly
constructed distribution lines. Since the existing easements apply to electrical
distribution lines that have been removed, Harsch requests the abandonment of a
portion of the existing easement.
DISCUSSION
ERIC Engineering of San Jose prepared the easement plats and descriptions for
Harsch. AP&T and Public Works staff reviewed and approved the proposed easement
modifications. All AP&T distribution lines within the proposed easements have been
installed. The electrical distribution lines within the easements to be abandoned were
removed during construction of the improvements. A legal description and plat of the
subject easements are on fife in the City Clerk's office.
BUDGET CCNSIDERATICNIFINANCIAL IMPACT
There is no financial impact to the City as a result of vacating the subject easement or
accepting the new easements. All costs associated with the installation of the AP&T
distribution lines were paid by the developer.
City Council
Report Re:
Agenda Item #4-E
11.46-48
Honorable Mayor and November 6, 2008
Members of the City Council Page 2 of 2
MUNICIPAL C4DEIP~LICY DOCUMENT CRASS REFERENCE
This action does not affect the Alameda Municipal Code.
RECCMMENDATI4N
Adopt a resolution ordering vacation of a portion of an existing 10' wide power
easement, Series No.79-196972, recorded actober 2, 1979, a.R., Alameda County
Recorder within parcel 2 of Parcel Map 2542 filed Map Book 102, Pages 51 and 52,
recordation of quitclaim, and acceptance of fifteen new power easements within parcel
2 of Parcel Map 2542 Alameda Towne Centre}.
RespectF II submitted,
Ma hew T. Naclerio,
Public Works Director
~~~
~-~
By: Ed Sommerauer ~,,~,
Associate Civil En ineer
MTN;ES:gc
CITY OF ALAMEDA RESOLUTION NO,
.~
ORDERING VACATION OF A PORTION OF AN EXISTING 10' WIDE POWER
EASEMENT, SERIES N0.79-196972, RECORDED OCTOBER 2, 1979, O.R.,
ALAMEDA COUNTY RECORDER WITHIN PARCEL 2 OF PARCEL MAP 2542
FILED MAP BOOK 102, PAGES 51 AND 52; RECORDATION OF QUITCLAIM,
AND ACCEPTANCE OF FIFTEEN NEW POWER EASEMENTS WITHIN
PARCEL 2 OF PARCEL MAP 2542 ~TOWNE CENTRE}
WHEREAS, on October 2, 1979, a 10' Power Easement, described as
Parcel B of that certain Grant of Easement made to the City of Alameda and
was filed in the Office of the County of Alameda Recorder as Instrument No. 79-
196972; and
vvHEREAS, a portion of the existing Power Easement is no longer
necessary for electrical distribution infrastructure and can be vacated.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City
of Alameda that a portion of a power easement for electrical distribution lines be
vacated pursuant to the provisions of Division 9, Part 3, Chapter 4, Article 8333
~c} of the Streets and Highways Code. Legal descriptions and plats of the
subject easement vacation is on file in the City Clerk's office.
BE IT FURTHER RESOLVED that the City Clerk shall cause certified
copies of this resolution, attested under seal, to be recorded in the County
Recorder's Office and from and after the date of this resolution is recorded, said
portion of said easement as recorded on September 17, 1919, no longer shall
constitute an easement.
******
Resolution #4-E CC
I, the undersigned, hereby certify that the foregoing Resolution was duly
and regularly adopted and passed by the Council of the City of Alameda in a
regular meeting assembled on the 6th day of November, 2008, by the following
vote to wit:
AYES:
NOES:
ABSENT:
ABSENTI~NS:
IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the
official seal of said City this lth day of November, 2D08.
Lara Weisiger, City Clerk
City of Alameda
CITYgFALAMEDA RESgLUTigN Nq.
APPgiNTING DgUGLAS BIGGS AS A MEMBER qF THE
SgCIAL SERVICE HUMAN RELATIgNS BgARD
E
0
c~
z3
L
0
a
BE 1T RESgLVED by the Council of the City of Alameda that pursuant to
the provisions of Article X of the Charter of the City of Alameda, and upon
nomination by the Mayor, DgUGLAS BIGGS is herebyappointedtotheofficeof
member of the Social Service Human Relations Board of the City of Alameda for
the term commencing November6, 2008, and expiring on June 30, 2D~2, and to
serve until his successor is appointed and qualified.
*~***
I, the undersigned, hereby certify that the foregoing Resolution was duty
and regularly adopted and passed by the Council of the City of Alameda in
adjourned regular meeting assembled on the 6th day of November, 2008, by the
following vote to wit:
AYES:
NgES:
ABSENT:
ABSTENTIgNS:
IN vvITNESS,11vHEREgF, Ihave hereunto set my hand and affixed the official
seal of said City this lt" day of November, 2008.
Lara vlleisiger, City Clerk
City of Alameda
Resolution #6-A
1 ~ -06.08
CITY OF ALAMEDA
Memorandum
To: Honorable Mayor and
Members of the City Council
From: Debra Kurita
City Manager
Date: November 6, 2008
Re: Select an Interim Gperator to Provide Management, Gperations, and
Maintenance for the Chuck Corica Golf Com lex.
BACKGROUND
In early 2007, the City retained the services of the National Golf Foundation NGF} in
order to conduct a comprehensive operational review of the Chuck Corica Golf
Complex. The purpose of the review was to ensure the protection, preservation, and
enhancement of this important community asset as an economically viable municipal
operation, The operational review was presented in January 2008, and the City Council
adopted motions to:
~I. Allocate funding to complete a master planning process for the facility with
assistance of NGF.
2. Direct staff to work with NGF to investigate the cost-savings and revenue
enhancing options recommended by the Golf Commission.
3. Request that staff explore options for identifying cost savings for FY 2007-08.
4. Direct staff to work with NGF to develop a Request for Proposal ~RFP} to explore
all options for future operation of the Golf Complex.
During its meeting on July 1, 2008, the City Council approved the issuance of an RFP
seeking an interim operator for the facility. The interim operator would assume
responsibility for management, operations, and maintenance of the facility for
approximately one year, during which time other longer-term sustainable operational
options would be explored. A contract for management and operations of the Golf
Complex would result in the elimination of ~6 full-time maintenance positions within the
Alameda City Employee Association ~ACEA} bargaining unit, five administrative and
managerial positions within the Management and Confidential Employee Association
~MCEA} bargaining unit, and a number of unrepresented part-time positions.
City Council
Agenda Item #6~B
~ ~ -os-os
Honorable Mayor and November 6, 2008
Members of the City Council Page 2 of 5
DISCUSSION
RFP for Operation of Chuck Corica Golf Complex
In mid-July, an RFP was prepared and distributed to approximately 65 firms that
specialize in providing golf management services; seven of those firms responded to
the RFP. The Assistant City Manager, Interim Finance Director, Recreation and Park
Director, and two members of the Golf Commission evaluated and ranked the
proposals, reaching consensus on the four firms to advance to the next phase of the
selection process: Bellows Golf Management, Empire Golf, Kemper Sports, and Mike
Robason Golf.
On September 11, 2008, a selection panel comprised of the Deputy City Manager and
representatives from the cities of San Leandro and Walnut Creek interviewed the four
firms. The representative from San Leandro was a key participant when that city
converted to private management a few years ago, and the representative from Walnut
Creek is currently going through a similar process.
The interview process consisted of a presentation by each candidate detailing their
proposal, followed by a set of standardized questions from the panel. The firms were
then assigned a score and ranked based upon their responses. The panel focused on
the following areas to produce their final rankings:
• Experience and past performance of the firm in completing projects of a similar
type and scope.
• Knowledge of principles and concepts required to provide services requested in
the proposal.
• Ability to provide services in a timely manner.
• Ability to provide quality services in a cost effective, customer service-oriented
manner.
• Overall quality of presentation and responses to questions,
The order in which the firms were ranked, along with the anticipated savings and
management fees for each firm, are detailed below.
Com an Cost Savings Mana ement Fee Net savin s
1. Ke m pe r Spo its $618, 004 $120, o00 $558, 000
2. Bellows Golf $583,925 $ 96,000 $487,925
3. Empire Golf $763,868 $141,500 $622,318
4. Mike Robason Golf $991,963 $ O included in base bid} $991,963
Kemper Sports was the top selection by a substantial margin nine points based on
their extensive experience in providing municipal golf management services. Kemper
began providing these services in 1981 and has agreements with 26 municipal agencies
Honorable Mayor and November 6, 2008
Members of the City Council Page 3 of 5
across the country. They have recently been involved in converting courses from
municipal to private operation in St. Louis, New Grleans, and Cincinnati. In addition,
Kemper currently manages ten facilities in California, including three in the Bay Area.
The panel agreed that none of the three other companies could provide the resources
that Kemper Sports could because of its size as a national company and its experience
in the local market. In addition, Kemper has a regional manager in walnut Creek who
would supervise the general manager and coordinate all corporate resources and
suppork for the Golf Complex, including operations, marketing, budgets, accounting,
human resources, and maintenance. Kemper Sports could also provide the Galf
Complex with additional savings because of its national buying power. The other three
companies that the panel considered are smaller, and two of them are located outside
the Bay Area, one in Arizona and one in the Sacramento region.
ACEA Proposal for "Hybrid" Management Contract
Subsequent to the City Council direction to prepare an RFP for the operations of the
Golf Complex, staff met with representatives of both MCEA and ACEA to discuss the
impacts of the potential City Council action on the Golf Complex employees. In
response to this consultation, ACEA proposed that the City consider a hybrid structure
whereby the City would immediately contract for the management of the Golf Complex
with a private contractor, but would retain the ultimate responsibility for the operations
and maintenance of the facility. Should the City Council accept the ACEA proposal, an
amendment to the current Memorandum of Understanding ~MGU} between the City and
the bargaining unit would be required. The language of the M4U amendment would
need to negotiated and subsequently approved by the ACEA membership as well as the
City Council. The general parameters of the ACEA proposal, which is attached, are:
1. The maintenance staff, who are ACEA members, would be retained and continue
to be paid by the City pursuant to the existing M~U.
Z. The maintenance staff would be subject to the direction and control of the private
operator, subject to the due process requirements set forth in the MGU between
the City and ACEA.
3. The private contractor would be permitted to fill vacancies in the maintenance
staff with non-ACEA members, and ACEA members would work cooperatively
with non-ACEA members.
4. ACEA would work with the private operator to effectuate efficiencies in
operations, which might include flexible scheduling, hours of work, and seasonal
"rainy day" lay-offs.
5. The City would offer "Golden Handshake" retirement incentives to members of
the Galf Complex and Park and Recreation maintenance employment
classifications. If one or more employees in Golf Maintenance accept the Golden
Handshake, then non-ACEA members could replace the retired employees}.
The City could also transfer an employee in Golf Maintenance into any vacant
Parks Maintenance position to create a vacancy in the Golf Maintenance staff.
Honorable Mayor and November 6, 2008
Members of the City Council Page 4 of 5
The proposal by ACEA acknowledges that the "hybrid" management structure is a
temporary one and depends on the Golf Complex reserve fund remaining solvent. The
City and ACEA would meet and confer to negotiate the cessation of the arrangement if
and when that becomes appropriate based on the Golf Complex reserve fund level.
ACEA has indicated that they believe it would be appropriate to establish a separate
employment classification for Golf Maintenance Worker distinct from that of Parks
Maintenance Worker. As a result, ACEA has petitioned the Civil Service Board for a
finding that the classifications are in fact separate and distinct. That decision by the
Civil Service Board is expected in mid-November. Although staff recommended that the
MCU amendment settle the issue, ACEA prefers to have the matter resolved by the
Civil Service Board and has not included it in their offer to amend their MoU.
Staff contacted all four of the finalist bidders to discuss whether the ACEA proposal
would be acceptable to them and to determine haw that might affect the economics of
the proposals. Three of the four finalists, Kemper Sports, Bellows Golf, and Mike
Robason Golf, responded that the "hybrid" management approach was acceptable and
submitted supplements to their proposals to clarify their financial terms. Empire Golf did
not respond.
Kemper Sports clarified that a contract for all services except full-time maintenance staff
would cost $161,578. The City's current estimate of the cost of these services under
the self-operation scenario is $193,944, so the Kemper proposal would save the Golf
Complex $32,416. Mike Robason Golf indicated that the hybrid scenario would cost
$602,360, for a savings of $191,584 over the self-operations scenario. Bellows Golf
responded that it would charge $9,000 per month for aone-year contract for
management services only. This would result in a $108,000 increase in costs over the
self-operation scenario. However, if the maintenance costs were eliminated from their
original proposal, Bellows Golf indicated that the savings from aself-operation scenario
would be approximately $78,000. In addition, Bellows Golf submitted an unsolicited
proposal for aone-year concession agreement that would be similar to a lease. This
alternative proposal is not consistent with City Council's prior direction to obtain
proposals only for interim operations and not for any risk transfer arrangement.
BUDGET CGNSIDERATIGNIFINANCIAL IMPACT
The FY 2008-09 adopted budget for the Chuck Corica Golf Complex projects operating
revenues of $4,382,719, and operating expenses of $5,024,585. of this total
expenditure, $2.2 million is budgeted for staff costs, and the balance for materials,
supplies, contract services, and interfund transfers. Estimated expenditures will exceed
revenues by approximately $700,000. This projected shortfall will occur despite the
implementation of a number of cost reduction strategies, including the elimination of the
Golf Services Manager position and the continued vacancy of the General Manager
Honorable Mayor and November 6, 2008
Members of the City Council Page 5 of 5
position. Revenue projections have also been reduced as a result of the continued
downtrend in the golf market and the soft local economy.
The budgeted revenue and expenditure projections reflect staff's best possible
estimates. A number of factors could influence the final results, including increased
competition from neighboring courses, the continued decline in the number of rounds,
and the condition of the national, state, and local economies.
All of the proposals received indicated that the Golf Complex would recognize
significant savings, ranging from $487,98 to $997,963, by contracting out the
maintenance and operations of the facility. These cost savings can then be applied to
reduce the estimated budget shortfall of $100,000 in the current fiscal year.
Depending on the company selected, the ACEA proposal would result in savings
ranging from $3,416 to $191,584, assuming that no Golf Maintenance Workers were to
leave during the term of the contract. Under all of the RFP responses, savings would
increase as existing Golf Maintenance Workers left City service and were replaced by
an employee of the private contractor.
RECCMMENDATI4N
Select an Interim Qperator to provide management, operations, and maintenance of the
Chuck Corica Golf Complex and authorize the City Manager to enter into an agreement
with Kemper Sports.
Respectfully submitted,
Dale Lillard, Director
Alameda Recreation, Parks & Golf Operations
CITY aF ALAMEDA
Memorandum
To: Honorable Mayor and
Members of the City Council
From: Debra Kurita
City Manager
Date: November 6, 2008
Re: Receive a Report on the Proposed the PERS Golden Handshake Retirement
Under California Government Code Section 20903
BACKGRGUND
The PERS "Golden Handshake" program, as established under California Government
Code Section 20903, allows a City, as a part of a budget reduction process, to offer a
retirement incentive of two years extra service credit to employees in designated positions.
The parameters of the program require that the employees must be eligible to retire, have
at least five years of service with PERS, and must retire within the period of time identified
by the City Council. Additionally, the program requires the City to provide public notice of
the potential costs and savings generated from implementing this program at least two
weeks prior to the adoption of a resolution.that it intends to offer this retirement option.
DISCUSSIQN
In July 2008, the City issued a Request for Proposal ~RFP} for an interim operator for the
Chuck Corica Golf Complex Golf Complex}. The interim operator would assume
responsibility far management, operations, and maintenance of the facility. It is anticipated
that a contract for an interim operator will be awarded prior to the end of calendar year
2008.
If a contract with an interim operator for the management, operations, and maintenance of
the Golf Complex is awarded, this action will eliminate 21 positions at the Golf Complex.
Labor contract provisions dictate that some Golf Complex employees will have "bumping
rights" to positions in the Parks Division of the Recreation and Park Department; thus, the
elimination of the Golf positions will also affect employees in the Parks Division. Fifteen
Golf Complex and Parks Division employees are eligible for retirement in 2008. By offering
the PERS "Golden Handshake" program to these 15 eligible employees, the City expects
fewer employees to ultimately be laid off due to the transfer of management, operations,
and maintenance of the Golf Complex to an interim operator.
The following positions would be affected by the interim operator agreement and have been
identified for consideration for the Golden Handshake program. The number of positions
within each classification is shown in parentheses:
City Council
Agenda Item #6~C
1106.08
Honorable Mayor and
Members of the City Council
Department
Golf Complex
Golf Complex
Golf Complex
Golf Complex
Golf Complex
Recreation & Parks
Recreation & Parks
~'la~~ifinatinn
November 6, 2008
Page 2 of 3
Assistant Golf Professional (1)
Equipment Operator (2)
Golf & Park Maintenance Teamleader (2)
Golf and Park Maintenance Worker (2)
Golf Course Maintenance Superintendent (1)
Golf and Park Maintenance Worker (5)
Park Maintenance Leadperson (2)
BUDGET CONSIDERATIONIFINANCIAL IMPACT
Per California Government Code Section 20903, the Maximum Estimated PERS Cost
MEPC} for the Golden Handshake program will be included in the City's employer
contribution rate, calculated every 24 months by PERS and transmitted to the City in its
Annual Valuation Report. A Golden Handshake incentive approved in Fiscal Year o8-09
would be included in the City's employer contribution rate for miscellaneous employees in
Fiscal Year 2011-12 and thereafter.
Only the actuarial costs for those employees who retire under these provisions will be
included in the MEPC re-calculation. Subsequent annual budget savings per fiscal year
are calculated based on applicable incumbent salary information and assumes the
.
positions are eliminated.
It is estimated that the PERS cost and annual savings to the Golf Course Fund and
General Fund will be as follows, if all eligible employees accept the Golden Handshake.
The number of positions within each classification is shown in parentheses:
Maximum Subse uent
Estimated PERS
Department
Golf Course Fund
Golf Complex
Golf Complex
Golf Complex
Golf Complex
Golf Complex
Classification
Assistant Golf Professional(1)
Equipment Operator (2)
Golf & Park Maint. TeamLdr (2)
Golf & Park Maint. Worker (2)
Golf Course Maint. Supt. (1)
Golf Course Fund Subtotal
Cost (MEPC)"`
$29,687.84
$64,819.25
$78,583.23
$53,259.65
$51,201.80
$277,551.77
.. q ,.,
Annual„Budget,
Savin s
$53,014.00
$118, 934.40
$ ~ 52, 588.80
$113, 318.40
108 940.00
$546,195,60
Honorable Mayor and
Members of the City Council
Maximum
Estimated PERS
Department
Genera! Fund
Classification Cost (MEPC)
November 6, 2008
Page 3 of 3
Subsequent
Annual Budget
Savin s
Recreation & Parks Golf & Park Maint. Worker (5) $138,985.02 $277,630.08
Recreation & Parks Park Maint. Leadperson (2) $66,176.17 $128,210.16
General Fund Subtotal $205,161.18 $405.840.24
Grand Total $482,712.95 $952,635.84
* Maximum Estimated PERS Cost (MEPC) will be included in the City's employer
contribution rate and amortized over 20 years.
RECGMMENDATlGN
Receive this report identifying the costs of the proposed PERS Golden Handshake program
and direct staff to prepare a resolution approving a Golden Handshake retirement period to
be considered at the December 2, 2D08 meeting.
RespectFull submitte, ,
Karen Willis
Human Resources Director
COUNCIL REFERRAL FORM
Name of Councilmember requesting referral: Ma or Johnson
Date of submission to City Clerk must be submitted before 5:00 p.m. on the
Monday before the Council meeting requested}; October 2l, 2008
Council Meeting date: November 6 2008
Brief description of the subject to be printed on the agenda, sufficient to inform
the City Council and public of the nature of the referral:
Discussion of referrin Public Safet Memorandums of Understandin
to the Fiscal Sustainabilit Committee for review and consideration.
Re: Agenda Item #8•A
11.06.OS
CURRENT APPLICATIONS
HISTORICAL ADVISORY BOARD
ONE VACANCY
(REGISTERED ARCHITECT SEAT, FULL TERM EXPIRING JUNE 30, 2012)
Dennis M. Owens
Re: Agenda Item #9•A
11.Ofi-08