2009-04-07 Packet~--- -_.,
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SPECIAL MEETING OF THE CITY COUNCIL
TUESDAY - - -- APRIL 7, 2009 - - -- 7;00 P.M.
Time: Tuesday, April 7, 2009 7:00 p,m.
Place: Cit Council Chambers Conference Room, City Hall, corner
of Santa Clara Avenue and Oak Street.
Agenda
1. Roll Call - City Council
2. Public Comment on Agenda Items Only
Anyone wishing to address the Council on agenda items only,
may speak for a maximum of 3 minutes per item
3. Adjournment to Closed Session to consider:
3-A, WORKERS' COMPENSATION CLAIM X54956.957
4,
5.
Corey Merrick
Agency claimed against; City of Alameda
Announcement of Action Taken in Closed Session, if any
Adjournment - City Council
+~
everly o n, Mayor
Housing
Authority of the City of Alameda
701 Atlantic Avenue - Alameda, California 94501-21 G 1 -TEL: (510) 747-4300 -FAX: {510) 522-7$48 - TDD: X510} 522-84G7
IF YGU v1JISH TD ADDRESS THE BGARD:
~. Please file a speaker's slip with the Executive Director, and
upon recognition by the Chair, approach the rostrum and
state your name; speakers are limited to 3 minutes per item.
2. Lengthy testimony should be submitted in writing and only a
summary of pertinent points presented verbally.
3. Applause and demonstrations are prohibited during Board of
Commissioners meetings.
AGENDA
DATE & TIME
LGCATIGN
REGULAR MEETING GF THE BGARD OF CGMMISSIGNERS
Tuesday, April 1, 2949, 7:25 PM
City Hall, Council Chambers, Room 390, 2263 Santa Cfara Ave., Alameda, CA
Vvelcome to the Board of Commissioners of the Housing Authority of the City of Alameda
meeting. Regular Board of Commissioners meetings are held on the first Tuesday of each
quarter in the Council Chambers at City Hall.
Public Partici ation
Anyone wishing to address the Board on agenda items or business introduced by
Commissioners may speak for a maximum of three minutes per agenda item when the
subject is before the Board. Please file a speaker's slip with the Housing Authority Executive
Director if you wish to address the Board of Commissioners.
PLEDGE 4F ALLEGIANCE
1, RILL CALL -Board of Commissioners
2. CGNSENT CALENDAR
^ Consent Calendar items are considered routine and will be approved or accepted
by one motion unless a request for removal for discussion or explanation is
received from the Board of Commissioners or a member of the public.
~-A. Approve Housing Authority FY 2008-2009 Budget Amendment No 2. The Housing
Commission and Acting Chief Executive Officer recommend the Board of
Commissioners:
Regular Meeting of the Board of Commissioners
April 1, 2009
Page 2
1. Adopt a resolution to authorize receipt of the American Recovery and
Reinvestment Act Capital Fund Grant No. CA39S06250109 in the amount of
$269,111;
2. Approve a Housing Authority Esperanza budget revision to include income of
$269,717 and an estimated $210,000 in Capital Fund grants, and to add a Capital
Improvement Project ~CIP} to replace roofs at the complex with grant money
received and, if anygrantfunds remain, use thosefunds forgeneral operations;
3. Apprave a transfer of Housing Authority-awned operating reserves of up to
$31,691 to Esperanza, if needed, to complete the roofing project;
4. Approve a Housing Authority General Fund budget revision to add income of
$6,425 from the insurance claim payment, and to add a Capital expenditure of
$25,000 to replace the inspector's vehicle, using up to $18,575 in reserves for the
balance of the cost; and
5. Adopt a resolution to amend the Housing Authority's budget as described.
2-B. Adapt Housing Authority Budget Amendment No. 3 for Fiscal Year 2009-2010. The
Housing Commission and Acting Chief Executive Officer recommend the Board of
Commissioners by resolution adopt the proposed revised budget, including the
Extraordinary Maintenance and Capital Improvements Projects line items, for fiscal
year 2009-2010.
2-C. Awarding Contract for the installation of a 21 stall parking lot at Independence Plaza.
The Housing Commission and Acting Chief Executive Gfficer recommend the Board of
Commissioners:
1. Award a contract to Bay Construction Company for an amount not to exceed
$213,500, including contingencies, to install a 21 stall parking lot at Independence
Plaza, and to re-paint the remaining metal fences.
2. Authorize the Executive Director to execute the contract with Bay Construction
Company.
2-D. Award Contract to Replace Roofing at the Esperanza Housing Complex. The Acting
Chief Executive officer recommends the Board of Commissioners:
1. Award a contract to Ridout Roofing Company to re-roof 22 residential
structures and two connected community buildings, for an amount not to
exceed $301,697 including contingencies.
2. Authorize the Executive Director to execute the contract with Ridout Roofing,
3. AGENDA
None.
Regular Meeting of the Board of Commissioners
April 7, 2009 Pa e 3
g
4. ORAL COMMUNICATIONS Non-A enda Public Comment
5. COMMISSIONER COMMUNICATIONS Communications from the Commissioners
6. ADJOURNMENT
*~~
Note:
Materials related to an item on this agenda submitted to the Board of Commissioners
after distribution of the agenda packet are available for public inspection in the Housin
g
Authority of the City of Alameda, 701 Atlantic Avenue, Alameda, CA 94501 during
normal business hours.
Sign language interpreters will be available on request. Please contact Carol vlleaver,
Secretary, at 747-4325 voice or 522-8467 TDD at least 72 hours before the meeting to
request an interpreter.
Accessible seating for persons with disabilities including those using wheelchairs is
}
available.
Minutes of the meeting are available in large print.
Audiotapes of the meeting are available on request.
Please contact Carol vl~eaver at 747-4325 voice of 522-8467 TDD at least 72 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.
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SPECIAL MEETING OF THE COMMUNITY IMPROVEMENT COMMISSION CIC}
TUESDAY - - - APRIL 7, 2009 - - - 7;27 P.M,
Location; Cit Council Chambers, City Hall, corner of Santa Clara
Avenue and oak Street.
Public Participation
Anyone wishing to address the Commission on agenda items or
business introduced by the Commission may speak for a maximum of 3
minutes per agenda item when the subject is before the Commission.
Please file a speaker's slip with the Deputy City Clerk if you
wish to speak.
1. ROLL CALL - CIC
2, MINUTES
2-A. Minutes of the Special Joint City Council and CIC Meeting held
an March 17, 2009. City Clerk}
3. AGENDA ITEMS
None.
4. ADJOURNMENT - CIC
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Be rly Jo s
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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 X37 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 - - - - - - - - - - - REGULAR MEETING OF THE CITY COUNCIL
TUESDAY -- - - - - - APRIL 7, 2049 - - - - 7;30 P.M.
Note: Regular Council Meeting convenes at ?:3Q pm, City Hall,
~~~~~~~ C~aaor~~r~, corner of Santa Clara Ave and yak St]
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
1D. 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
SPECIAL MEETING OF THE CITY COUNCIL 7:QQ P.M.
CITY COUNCIL CHAMBERS CONFERENCE ROOM
Separate Agenda Closed Session?
SPECIAL MEETING OF THE HOUSING AUTHORITY BOARD 7:25 P.M.
OF COMMISSIONERS, CITY COUNCIL CHAMBERS
Separate Agenda
SPECIAL MEETING OF THE COMMUNITY IMPRO~IEMENT 7:27 P.M.
COMMISSION, CITY COUNCIL CHAMBERS
Separate Agenda
1. ROLL CALL - City Council
2. AGENDA CHANGES
3. PROCLAMATIONS, SPECIAL ORDERS OF THE DAY AND ANNOUNCEMENTS
3-A. Proclamation declaring the week of April 20 through 25, 2009
as Earth Week. Public Works}
4. CONSENT CALENDAR
Consent Calendar items are considered routine and will be
enacted, approved or adopted by one 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 City Council Meeting, the Special Joint
City Council and CIC Meeting and the Regular City Council
Meeting held on March 17, 2009; and the Special City Council
Meeting held on March 24, 2009. City Clerk}
4-B. Bills for ratification. Finance}
4-C. Recommendation to accept the work of Chrisp Company for Annual
Striping, Phase 6, No. P.W. 10-07-31. Public Works}
4-D. Adoption of Resolution Authorizing the Issuance of City of
Alameda Taxable Retirement Funding Bonds; Authorizing the
Execution and Delivery of an Indenture and a Trust Agreement;
and Authorizing Commencement of a Validation Action Relating
Thereto and Approving Other Matters Relating Thereto.
Finance}
4-E. Adoption of Resolution Authorizing the Acting City Manager to
Submit an Application for Measure B Paratransit Funding for
Fiscal Year 2009-2010 and to Execute All Necessary Documents
to Implement the Project. Public Works}
4-F. Adoption of Resolution Authorizing the Acting City Manager to
Submit a Request to the Metropolitan Transportation Commission
for the Allocation of Fiscal Year 2009/2010 Transportation
Development Act, Article 3 Funding, in the Amount of $8,000
to Fund the Local Match for the Safe Routes to School
Bicycle/Pedestrian Improvement Projects and Authorize the
Acting City Manager to Execute All Necessary Documents.
Public Works}
4-G. Final Passage of Ordinance Amending the Alameda Municipal Code
by Adding Section 24-10 Cost Recovery for Recurring Calls for
Service to Respond to and/or Abate Properties Due to Specified
Conditions or Owner Neglect} to Chapter XXIV Public Health}.
Fire}
5. CITY MANAGER COMMUNICATIONS Communications from City Manager}
6. REGULAR AGENDA ITEMS
6-A. Public Hearing to consider Adoption of Resolution Establishing
Integrated Waste Collection Ceiling Rates and Services for
Rate Period S July 2009 to June 2010};
• Introduction of Ordinance Approving and Authorizing the
City Manager to Negotiate and Execute a Second Amendment to
Modify and Extend the Franchise Agreement with Alameda
County Industries, Inc.; and
• Introduction of Ordinance Amending the Alameda Municipal by
Amending Various Sections of Chapter XXI Solid Waste and
Recycling} to Clarify the Definition of Customer and
Customer Responsibilities and Allocate $1,052,059 from the
City Waste Management Program Fund Fund 274.1} Public
Works }
6-B. Discussion of alternative uses for the Mif Albright Golf
Course and presentation by Kemper Sports Management. Golf}
6-C. Update on federal funding for City projects. City Manager}
7. ORAL COMMUNICATIONS, NON-AGENDA
Public Comment}
Any person may address the Council in regard to any matter
aver which the Council has jurisdiction or of which it may
take cognizance, that is not on the agenda
S. COUNCIL REFERRALS
Matters placed on the agenda by a Councilmember may be acted
upon or scheduled as a future agenda item
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
Civil Service Board and Economic Development Commission.
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 747-4840 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
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701 AtlanficAvenue -Alameda, California X4501-21fi1-Tel: ~51~} 747-4300 -Fax: X510}522.7848 - TDb: X510} 522-8457
To: Honorable Chair and
Members of the Board of Commissioners
From: David Brandt
Acting Chief Executive Gfficer
Date: April 7, 2009
Re: Approve Housing Authority FY 2008-2009 Budget Amendment No. 2
BACKGRGUND
On February 25, 2009, the U.S. Department of Housing and Urban Development (HUD)
notified the Housing Authority that it had been awarded a $269,717 Capital Fund grant
pursuant to the American Recovery and Reinvestment Act of 2009 (ARRA). There also
is a possibility that the Housing Authority also may receive another Capital Fund formula
grant before the end of the fiscal year.
Cn February 4, 2009, a Housing Authority vehicle was involved in an accident in which
it was declared a total loss. The Housing Authority is self-insured along with many other
housing authorities in the Housing Authorities Risk Retention Pool ~HARRP}.
The Housing Commission considered the proposed budget revision at its meeting of
March 23, 2009. The Commission recommends approval of the budget amendment as
proposed.
DISCUSSION
The Capital Fund process has been revised to accommodate the expedited nature of
funding under the ARRA. The Housing Authority had to submit documentation to
accept the grant by March 9, 2009; this was done. The remaining papen~vork, including
a budget for the use of the funds and a resolution by the Housing Authority's governing
board authorizing receipt of the ARRA grant funds, must be submitted no later than
Friday, April 1 D, 2009. A resolution is required to accept the ARRA Capital Fund grant.
This budget revision proposes using the Capital Funds, which may only be used at
Esperanza, to replace roofs on alf buildings at the site. Because of the compressed
time for acting on these funds, staff has gone out to bid and obtained a bid of $274,270
for all the residential and community room buildings. A 10 percent contingency or an
additional $27,427 will require a budget for this project of $301,697.
HABOC
.~
"~ ltem #2-ACC
4-07-09
Honorable Chair and April 1, 2009
Members of the Board of Commissioners Page 2 of 3
The Housing Authority most likely will receive its regular formula Capital Fund grant
before the end of the fiscal year and that would provide the balance of funding
necessary to complete the roofing project. The amount is anticipated to be $210,OOD,
which is about what the Housing Authority has received annually in recent years. The
remaining funds will be used to support general operations at this site. These funds
may be used only if obligated prior to finalizing the disposition process. Should these
funds not be received in time from HUD, then staff recommends transferring Housing
Authority-Gwned operating reserves of $31,980 to Esperanza to complete this roofing
project, which is the difference between the ARRA Capital Fund grant x$269,111} and
the bid amount plus contingency x$301,691}.
The vehicle, a 2002 Toyota Echo involved in the February 4 accident, was declared a
total loss. This vehicle is used by the member of staff who conducts Housing Quality
Inspections of Section S units. HARRP will reimburse the Housing Authority for the loss
of the Echo.
As a capital item, the budget needs to be amended to cover the full cost of the vehicle.
Staff recommends replacing the Echo, which was a reliable fuel~efficient vehicle, with
one that should be equally reliable and even more fuel efficient, a Toyota Prius. The
cost for a new Prius, including sales tax, is anticipated to be $25,000.
Budget revisions are completed by resolution. Copies of the resolution to receive the
Capital Fund grant and to amend the budget are attached.
BUDGET CGNSIDERATIGNIFINANCIAL IMPACT
The ARRA Capital Fund grant will be used in its entirety to replace roofs and gutters at
Esperanza. If the regular formula-based Capital Fund grant is received, the Housing
Authority will use some of these funds for the roofing project. The balance of the funds
will be used for operations, thus reducing the projected deficit for Esperanza this year.
HARRP has assessed the value of the Echo at $6,925. With a $500 deductible, the
Housing Authority will receive a check for $6,425. An additional $15,5?5 is likely to be
needed to acquire a Prius. The Housing Authority's General Fund has adequate
reserves to cover this amount.
RECaMMENDATIaN
The Housing Commission and Acting Chief Executive Officer recommend the Board of
Commissioners:
1. Adopt a resolution to authorize receipt of the American Recovery and Reinvestment
Act Capital Fund Grant No. CA39SD6250109 in the amount of $269,711;
2. Approve a Housing Authority Esperanza budget revision to include income of
$269,?1l and an estimated $210,000 in Capital Fund grants, and to add a Capital
Honorable Chair and
Members of the Board of Commissioners
April 7, 2009
Page 3 of 3
Improvement Project ~CIP} to replace roofs at the complex with grant money
received and, if any grant funds remain, use those funds for general operations;
3. Approve a transfer of Housing Authority-awned operating reserves of up to $31,691
to Esperanza, if needed, to complete the roofing project;
4. Approve a Housing Authority General Fund budget revision to add income of $6,425
from the insurance claim payment, and to add a Capital expenditure of $25,000 to
replace the inspector's vehicle, using up to $18,515 in reserves far the balance of
the cost; and
5. Adopt a resolution to amend the Housing Authority's budget as described.
Respectfully submi
r
Michael T. Pucci
Executive Director
By:
r~~~n
Eileen Duffy
Operations Manager
MTP:ED
Attachments:
1. Proposed Resolution to Accept Receipt of Capital Fund Grant No. CA39SQ6250109
2. Proposed Resolution to Amend the FY 208-09 Housing Authority Budget
HGUSING AUTHORITY ~F THE CITY GF ALAMEDA
12esoCution _7Vo.
RECEIVING CAPITAL FUND GRANT
WHEREAS, the U. S. Department of Housing and Urban Development (HUD)
notified the Housing Authority that it was awarded a Capital Fund formula grant
pursuant to the American Recovery and Reinvestment Act of 2009 (ARRA); and
WHEREAS, the Housing Authority has determined that Esperanza is in need of
$5, ~ million in repairs and irnprovernents over the next ~ 0 years; and
WHEREAS, the Capital Fund grant of $269,77 will enable some needed repairs
at Esperanza to be made; and
VIIHEREAS, HUD requires submission of a resolution of the Housing Authority's
governing board to receive the Capital Fund grant;
NDW THEREFORE, BE IT RESOLVED, the Board of Commissioners of the
Housing Authority of the City of Alameda is hereby authorized to receive the ARRA
Capital Fund formula grant, number CA395D6250 ~ D9, in the amount of $269,7 7 to
make capital improvements at the Esperanza public housing complex.
ATTEST:
Michael T. Pucci
Executive Directorl5ecretary
Adopted
Date
Beverly Johnson, Chair
Board of Commissioners
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Attachment t . to Agenda rtem #2-ACC
4-07-09 HABOC
oar Resolution U.S. Department of Housing OMB No. 2577-0026
Approving Qperating Budget and Urban Development ~exp,1013112g09}
Office of Public and Indian Housing -
Reai Estate Assessment Center ~PIH-REAC}
Public reporting burden for this collection of information is estimated to average i0 minutes per response, including the time far reviewing instructions, searching existing data
sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. This agency may not collect this information, and you are not required
to
complete this form, unless it displays a currently valid OMB control number.
This information is required by Sec#ian 6~c}~4) of the U.S. Housing Act of 1931. The information is the operating budget for the low-income public housing program and provides a
summary of the proposedlbudgeted receipts and expenditures, approval of budgeted receipts and expenditures, and justification of certain specified amounts. HUD reviews the
information to determine if the operating plan adopted by the public housing agency ~PHAy and the amounts are reasonable, and that the PHA is in compliance with procedures
prescribed by HUD. Responses are required to obtain benefits. This information does not lend itself to confidentiality.
PHA Name: Housing Authority of the City of Alameda PHA Code: CA06204xxx~
PHA Fiscal Year Beginning: Jul 1 2008 Board Resolution Number:
Acting on behalf of the Board of Commissioners of the above-named PHA as its Chairperson, I make the following
certifications and agreement to the Department of Housing and Urban Development THUD} regarding the Board's
approval of check one or more as applicable}:
DATE
^ Operating Budget approved by Board resolution on:
^ Operating Budget submitted to HUD, if applicable, on:
Q Operating Budget revision approved by Board resolution on: 041x712009
^ Operating Budget revision submitted to HUD, if applicable, on:
I certify on behalf of the above~named PHA that:
1. All statutory and regulatory requirements have been met;
2. The PHA has sufficient operating reserves to meet the working capital needs of its developments;
3. Proposed budget expenditure are necessary in the efficient and economical operation of the housing for the purpose of
serving low-income residents;
4. The budget indicates a source of funds adequate to cover all proposed expenditures;
S. The PHA will comply with the wage rate requirement under 24 CFR 96$.110~c}and ~f}; and
6. The PHA will comply with the requirements for access to records and audits under 24 CFR 968.110~i}.
I hereby certify that all the information stated within, as well as any information provided in the accompaniment herewith,
if applicable, is true and accurate.
Warning; HUD will prosecute false claims and statements. Conviction may result in criminal andlor civil penalties. X18
U.S.C. 1001,1010,1012.31, U.S.C. 3729 and 38x2}
Print Board Chairperson's Name: Signature: Dade:
Beverly Johnson, Chair
Previous editions are obsolete form HUD-52514 ~x812a05}
Attachment 2. to Agenda item #2-ACC
4-07-49 HABOC
Housin ~-~~
Author ~ f the i
ty o C ty o~ .Alameda
701 Atlantic Avenue -Alameda, California 94501-2161 -Tel: (510) 747-4300 -Fax: (510)522-7848 - TDD: (510) 522-8467
To: Honorable Chair and
Members of the Board of Commissioners
From: David Brandt
Acting Chief Executive officer
Date: April 1, 2009
Re: Adopt Housing Authority Budget Amendment No. 3 for Fiscal _Year 2009-20~ 0 __
BACKGROUND
on April ~ 5, Zoos, the Board of Commissioners adopted atwo-year budget far the Housing
Authority. A budget revision is proposed to update the second year of that budget.
The Housing Commission met on March 23, 2009, to consider the proposed budget
amendment. The Commission voted to recommend approval of the proposed amendment.
DlscussloN
A budget represents the means by which an organization can meet its mission. The
Housing Authority's mission statement reads:
The Housing Authority, in partnership with the entire community, advocates
and provides quality, affordable safe housing; encourages self sufficiency;
and s#rengthens community inclusiveness and diversity in housing,
The Housing Authority uses the "Asset Management" model for budgeting. Though it is
project-based ~i.e., assets}, it also has performance-based aspects. For instance, rental
income is based on occupancy of dwelling units so it is in the best interests of the Housing
Authority to reduce the time units are vacant. Income for administering the Section 8
Housing Choice Voucher Program also is dependent upon the number of Section S
vouchers under lease each month so it is in the best interest of the Housing Authority to
maximize usage of its allocation of vouchers.
The budget has traditionally shown the Housing Authority General Fund, Esperanza,
Independence Plaza, and Section 8 Vouchers as individual "project" or "program" funds.
Eagle Village and Parrot Village are combined to sirnpiify reporting #o their common
mortgage holder. Income and expenses for these projectslpragrams are accounted for
separately. The "Parrot VillagelEagle Village" and "Housing Authority-owned" funds each
cover more than one property; however, each complex is accounted for separa#ely within
those funds. Using these budgeting and accounting methods, the Housing Authority can
ascertain the fiscal sustainability of all of its proper#ieslprograms.
HAB4C
item #2-B CC
~.
4-O1-09
Honorable Chair and Members
of the Board of Commissioners
OPERATING INCOME
April 1, 2009
Page 2 of 8
operating income is derived from a variety of sources, including rents paid by tenants and
interest. Most income is received from the U. S. Department of Housing and Urban
Development THUD};
o Housing Assistance Payments CHAP} to subsidize rent payments to private property
owners for renting units to Section 8 Housing Choice Voucher holders.
o Administrative fees.
fiver many years, the Housing Authority also has received from HUD an operating subsidy
for Esperanza as well as a Capital Fund grant, It is anticipated that Esperanza's transition
from public housing to Section 8 will be well underway by July 1; therefore, #his budget
revision eliminates those sources of revenue. During the transition, HUD supplies the
Housing Authority with funding similar to the operating subsidy. This funding gradually
diminishes as the residents become voucher holders and income is replaced by Section 8.
The Community Improvement Commission ~CIC} is a revenue source for Independence
Plaza. Tax increment funds from the UVest End Capital Improvement Project ~WECIP} set
aside for affordable housing are used to write down rents, closing the gap between income
and expenditures. Fees previously received from the Filipino-American Community
Services Agency ~FACSA} for managing two complexes are not included in this budget
revision as the Housing Authority anticipates the purchase of those two complexes to be
complete by July 1. The loss of these fees will be offset by rental and Section 8 income for
these properties. There is some additional income from land trust rents for the Regent
Street and Santa Clara Avenue properties and miscellaneous income from late fees,
maintenance charges, and coin-operated laundry commissions.
The following chark demonstrates that the
Housing Authority's major funding source
X56.2%} is the federal government, Just
14.6 percent comes from rents, 2.6
percent from the CIC and 0.6 percent
from interest and other income.
~NC4M E Rents coc
~i°
Other 11°I°
1 °I°
Revenues are expected to increase from
the current year primarily due to
Esperanza's transition from public
housing to Section 8 despite the loss of
the operating subsidy. Income stability
also has been achieved through attaching
project~based Sec#ion 8 assistance to
many Housing Authority-owned units.
Federal F~n~s
8fi°l°
The Housing Authority anticipates receiving $20,597,900 in HAP. An additional $1,499,312
in fees to administer this program also is expected, 90 percent of the amount that should be
received. This reduction in funding of administrative fees has been the norm over the last
two years and, though the current federal administration may restore funding, it is not
~ .
L~1
Honorable Chair and Members April 7, 2049
of the Board of Commissioners ~ Page 3 of 8
guaranteed. This budget revision, therefore, is conservative and maintains income from this
source at the lower amount.
Rental income is expected to increase slightly at most complexes. During the initial
transition at Esperanza, rental income may decrease as existing residents exercise their
right to move with a voucher. Interest income is expected to decrease from $19,911 to
$10,159 due to lower interest rates with the continued economic recession. tither
miscellaneous sources of income are expected to increase slightly in most funds with the
exception of Esperanza, where the loss of the Capital Fund grant is shown.
EXPENDITURES:
The majority of expenditures are for Housing Assistance Payments to property owners
participating in the Housing Choice Voucher program. These payments subsidize the rents
paid by their tenants that have vouchers. This publiclprivate partnership works to house
about 1606 families in Alameda and pumps more than $22 million into the local economy
every year.
Operating Expenses make up 95.4
percent of the total budget. With these
expenditures, the Housing Authority is
able to administer its managed housing
and Section 8 Voucher programs.
Salaries and benefits make up 11.2
percent of these expenses. Other
operating expenses, including the cost
for utilities, maintenance materials,
'insurance, etc., make up another 12.6
percent. The vast majority X72.2°/a} is
used to pay HAP to Alameda's property
owners.
OPERATING
EXPENSES
Salaries and
Benefit
11 °/a
The principal part of mortgage payments for Housing Authority properties and capital
improvement expenditures are not included in operations.
GPERATING BUDGET:
Operating expenses are broken down into five broad categories. These include:
1. Administrative Ex enses:
Salaries, legal expenses, and sundry are included in this category. The schedule of
Authorized Positions is shown on page 6 of the proposed revised budget Exhibit A}.
The sundry line item includes office supplies and equipment ~e.g., computers, printers},
travel and training, audit fees, telephone expenses, publications, and administrative
contract costs. This budget anticipates the replacement of a few computers and one or
Mortgage
Interest
3%
D
Honorable Chair and Members
of the Board of Commissioners
April 1, 2009
Page 4 of 8
two printers on an as~needed basis in FY 2010. Contract costs, such as, maintenance
contracts on office equipment, contracts for services with the City Manager's Office,
Information Technology and Human Resources Departments, and software use and
maintenance are also included in this line item.
Travel and training includes attendance at National Association of Housing and
Redevelopment Officials ~NAHRO} conferences as well as o#her training. The following
shows the out-of state training locations and the number of persons proposed to attend:
Summer NAHRO Conference
Portland, Oregon
National NAHRO Conference
Washington, D.C.
Pacific Southwest Regional NAHRO
Spring Conference, Scottsdale, AZ
NAHRO Legislative Conference
Washington, D.C.
Housing & Development Law Institute Conference
Washington, D.C.
Advanced Inspection Workshop
Las Vegas, NV
Housing Finance Workshop
Location to be determined
One Commissioner
and one staff
One Commissioner
and one staff
One Commissioner
and one staff
One Staff
One Staff
One Staff
One Staff
The Housing Finance workshop is generally held in California or Nevada, frequently in
Las Vegas or Reno, because of lower facility costs.
2. Tenant Services:
The salaries for resident managers, resident custodians, and the Esperanza Youth
Program and other tenant-related activities are included in this category. The cost for
salaries is expected to be slightly less than originally anticipated due to staff turnover.
This budget proposes continuing the Esperanza Youth Program at the same level, The
Boys and Girls Club generally is able to supplement this budget with grant funding. This
program provides a valuable service for children and youth at Esperanza. Other
activities include the Outreach Program to Property Owners and Town Hall meetings.
3. Utilities:
The amounts budgeted for utilities are based on actual utilities expenditures in the
current fiscal year and anticipated changes. Electricity, gas and water rates are
expected to be somewhat higher than originally anticipated.
4. Maintenance:
Maintenance expenditures include salaries far maintenance employees, maintenance
materials, and maintenance contract costs. The projected cost for maintenance
materials is based on actual expenditures this year.
l~l
Honorable Chair and Members
of the Board of Commissioners
April 7, 2009
Page 5 of 8
The maintenance contracts line item includes landscape maintenance, tree trimming,
preparing vacant units for the next tenant, and other miscellaneous contract services. A
higher than usual number of vacant turnovers is expected at Esperanza. With residents
being issued vouchers, it is anticipated that some families will opt to move. The amount
budgeted reflects the cast for existing contracts for ongoing service contracts plus the
additional cost anticipated for Esperanza for FY 2010. Once the population stabilizes,
the vacant turnover cost should return to normal levels.
5. General:
This line item includes the cost of the community-policing program, property, liability,
and workers' compensation insurance, employee benefits, and collection losses. The
cost for the community-policing program has risen significantly over the years -- it was
$150, 000 i n FY 2003 -the cost fo r FY 2010 is expected to be $210, 000.
Insurance costs are expected to rise slightly in FY 2010 due to the way rates are
calculated, a change that should make rates more stable in the future. For its
automobile, and most of its property and general liability coverage, the Housing
Authority participates in a joint pool of housing authorities in California, Oregon and
Nevada called the Housing Authori#y Risk Retention Pool HARRP}. Even with the
expected increase for FY 2010, HARRP rates are expected to remain lower than the
industry average. It was discovered how substantial the Housing Authority's savings are
in this area when the cost that FACSA is paying x$9,500} to insure the two properties
the Housing Authority soon expects to acquire with what the Housing Authority will pay
through HARRP x$3,004} -- less than one third of FACSA's cost. Though this cost will
be slightly higher under the new rate structure, the savings will be substantial.
Collection losses are expected to change only slightly compared to the originally
budgeted amount for FY 2010. The new projection is $29,433, which is still less than 1
percent of rental income.
The two remaining expense categories are titled MortgagelHAP and Other Expenses:
6. Mort a e1HAP:
This category includes HAP which subsidizes rents paid by Housing Choice Voucher
holders to Alameda's property owners participating in the Section 8 Program, and the
interest portion of mortgage payments made on Housing Authority properties. The
Section 8 HAP expense x$20,187,500} is the most significant expenditure and is
expected to be higher in FY 2010 for several reasons. These reasons include higher
rents which have resulted in the need to raise the Housing Authority's payment
standards; payment of a higher subsidy, reflecting tenants' lower incomes; and the
transition of Esperanza to the Section 8 Program. Mortgage interest expense is
expected to increase due to the anticipated acquisition of the FACSA properties.
1. Other Ex enses:
This category includes Extraordinary Maintenance Projects ~EMPs} and Pre-
developrnent Costs. There are two proposed EMP changes. One is the addition of
8_~
Honorable Chair and Members
of the Board of Commissioners
April 7, 2009
Page 6 of S
$5,000 for modifications to the Housing Authority office building ~GF2-10} #o begin
making Americans with Disabilities Act DADA} improvements as required. The other
addition is to replace the intercom system in three buildings at Independence Plaza
~1P3-1D} for an estimated cost of $9,OOD. Specific EMPs within each budget fund may
go slightly under or over estimated dollar amounts. A savings on one project can be
used to cover a cost overrun an another project, within each fund on this specific line
item. This fungibility provides flexibility within established parameters.
The difference between Gperating Income and operating Expenses is anticipated to
change from $590,558 to $1,291,89D. This positive change is anticipated primarily
because of the upcoming transition of Esperanza from public housing to the Section 8
program. From this operating income, depreciation paper expense} is subtracted.
GAAP to Cash Ad~jus#ments:
_~ _ - ..__
In this section of the budget, cash adjustments are made to determine the net results.
These adjustments include adding back in the depreciation amoun# and subtracting
mortgage principal payments and funds to add to replacement reserves for buildings and
equipment.
Building replacement reserves are intended to cover the cost for substantial repairs such as
new windows, replacing a boiler, that extend the life of the housing complexes. Mortgage
holders for Parrot Village, Eagle Village and Independence Plaza require the Housing
Authority to set aside these reserves. For example, the mortgage holder for Independence
Plaza requires a minimum replacement reserve of $10DD per unit or $186,000. At the end
of FY 2010, the Housing Authority anticipates Independence Plaza will have a replacement
reserve balance of nearly $400,D00.
Another cash adjustment is for Capital Assets expenses or Capital Improvement Projects
~CIPs}. The Proposed Revised Schedule of EMPs and CIPs appears on page 7 of the
proposed budget. Three additions are included. Gne of the proposed additions is the
purchase of two fuel-efficient utility vans ~GF1-10} for a cost of $45,000. Currently, open
bed pick-up trucks are used. These vehicles are used to respond #o regular and emergency
maintenance requests, requests that vary considerably in scope. As such, the solution is
generally unknown until arriving at the site. Work may include plumbing, electrical, or
mechanical problems that require diagnosis and appropriate repairs. After diagnosis, a trip
to the shop to obtain the appropriate part is often needed. With a van, parts can be stored
inside allowing for an immediate repair and the most efficient use of staff time.
Because of the layout of most of the complexes, maintenance employees are not able to
drive vehicles up to the units; vehicles are parked in common parking lots. Hazardous
materials, such as paint, drain cleaner, solvents, etc., are left in the truck bed, leaving them
accessible to children at the complexes. During inclement weather, materials and supplies
are exposed to rain. Open bed pick-up trucks have not met operational needs. Vans would
ensure that the right supplies and parts are readily available and secure in the rear of the
vehicle. Vans also would eliminate the need to go back and forth from units to the shop,
saving fuel use.
~~
Honorable Chair and Members April 7, 2009
of the Board of Commissioners Page 7 of 8
The Housing Authority evaluated alternative fuel vehicles, including compressed natural gas
and flex-fuel vans, as well as hybrid SUVs. The interior dimensions and finishes of an SUV
will not work for materials and equipment needs. Alternative fuel vehicles are available,
however, the closest E85 fueling station is in Berkeley. There are closer compressed
natural gas fueling stations ~Dakland}; however, the cost at about $50,000 is prohibitive.
The two pick-ups are proposed to be replaced with utility vans x$22,500 each} that meet
State of California "ultra-low emission vehicle 1" standard ~e.g., Chevrolet Express Cargo
Van}. These vans meet the Housing Authority's operational and space needs and when
outfitted with shelving needed for supplies and parts.
By adding ABD3-10, the cabinet and flooring replacement project at Anne B. Diament Plaza
will be completed next fiscal year. This addition of this project would complete the units and
community room on the first floor of this building. The cost is expected to be $185,200
based on recently completed work on the other two floors. Refinancing the FACSA
properties upon acquisition will provide funding to rehabilitate the building located at 1416
Sherman Street ~SS1-10, $400,000}. Renovation will include a new roof, windows,
electrical and plumbing improvements, etc. Fungibility within this line item and within each
budget fund allows for some flexibility within established parameters.
TOTAL BUDGET
If approved, the revised budget for FY2010 will be $30,129,027, including mortgage
principal payments, capital expenditures, and additions to reserves. The original FY 2010
budget anticipated a surplus of $31,670; the revised budget anticipates a surplus of
$344,329. As mentioned at the beginning of this narrative, the budget allows the Housing
Authority to determine the fiscal health of each project or program. Under the proposed
budget revision, it is revealed that all programs are fiscally sustainable. As mentioned
previously, the Housing Authority-awned budget fund combines several properties.
Combined, they are fiscally sustainable; individually, the Senior Condos and LincolnlUVillow
properties show a deficit.
VlJith HUD funding Section 8 administrative fees at 90 percent, the Section S Program is
fiscally sustainable. If any further cuts are made in these fees; however, it will be necessary
to explore other options. HUD is deliberately underfunding HAP so that the Housing
Authority's Net Restricted Assets, similar to a HAP reserve, are spent dawn to 7 percent of
the Housing Authority's Section 8 HAP budget authority approximately $1,200,000}, As
such, the proposed budget revision supplements Section S Income by these Net Restricted
Assets to offset the HAP expense. The HAP expense is expected to exceed income by
approximately $1,600,000 in FY 2010.
Esperanza was anticipating a deficit x$211,498} in FY 2010. 11Vith the transition of this
property to the Section 8 Program, this deficit is expected to disappear. Instead, a surplus
of $296,697 is anticipated.
.~.
Honorable Chairand Members
of the Board of Commissioners
REC~MMENDATIDN
Apri! 1, 2x09
Page 8 of S
The Housing Commission and Acting Chief Executive Cffcer recommend the Board of
Commissioners by resolution adopt the proposed revised budget, including the
Extraordinary Maintenance and Capital Improvements Projects line items, for fiscal year
2009-2010,
Respectfully submitted,
Michael T. Pucci
Executive Director
By:
Eileen Duffy
Operations Manager
MTP:ED
Attachments:
1. Proposed Budget Revision far FY 2010
2. Proposed Resolution for Budget Revision for FY2010
[A~
Exhibit A
HOUSING AUTHORITY
OF THE
CITY OF ALAMEDA
PROPOSED BUDGET REVISION
No. 3
FOR SECOND YEAR OF TWO-YEAR BUDGET
FISCAL YEAR 2009 - 2010
Attachment 1, to Agenda Item #2-B CC
4-07-09 HAB~C
FY 2010 REVISED BUDGET
TABLE OF CONTENTS
Description of Budget Funds ...........................................................1
Budget Comparison Spreadsheets
(Approved FY 2010 and Proposed Revised FY 2010)
TDTAL DF ALL PRDGRAMS ...................................................2
General Fund and Esperanza ...................................................3
Parrot village and Eagle village ...............................................4
Housing AuthorityWDwned .... . .................................. . ................. 4
Independence Plaza and Section 8 H~v Program ...................5
Schedule of Authorized Positions ...................................... . ......... . ... ~
Schedule of Proposed Revised Extraordinary Maintenance and
Capital Improvement Projects (FY 2010) .........................................7
Budget -Page 1
DESCRIPTION OF BUDGET FUNDS
General Fund This fund is for operations nvt otherwise chargeable to
other funds, including expenses related to legal services
and housing development services. It also includes
income and expenses related to management of the
Housing Assistance Payments contracts for the Shelter
Plus Care Program.
Esperanza This fund is for the operations of the Esperanza complex,
and assumes completion of the transition to Section 8.
Parrot Village and This fund is for the operations of Parrot Village and Eagle
Eagle Village Village, owned by the Housing Authority, where the
majority of residents have Housing Choice Vouchers.
This fund is maintained separately for the benefit of the
mortgage holder.
Housing Authority- This fund includes complexes where the residents are
Gwned Housing Choice Voucher holders, including Anne B.
Diament Plaza, Rvsefield Village, and Parrot Gardens. It
also includes the operations of the condominiums, the
LincolnlVllillow complex, Stanford House, China Clipper
Plaza, where some residents may have Vouchers, and
any expenses related to land ownership of the Regent
Street and Santa Clara properties.
independence Plaza This fund is far the operations of Independence Plaza.
This fund receives tax increment funds under the
Affordable Hausing Agreement between the Authority and
the Community Improvement Commission, which makes
X28 of the X86 units available for very-low and low-income
seniors.
Housing Choice Voucher This fund is for the operations of the Housing Choice
Program Voucher Section 8~ and Moderate Rehabilitation
Programs.
Housing Authority of the City of Alameda
Revised Budget Number 2
For the Fiscal Year Ending June 30, 20~ D
Total All I'ro rams
Ap~~rc~rid Prappscd
liucl cl Linc Items 201U 2olU
OPERATING INCOME:
IIAPIOpcr•ating Subsicly 22,7Gb,741 25,213,197
Rents 3,213,G0(I 3,193,520
Management I+ecs Earnccl D t}
Aciminislrativc Fccs 1,474,334 1,499,372
Interest 79,917 70,759
Otlrcr lncomc 312 370 9G 509
TOTAL INCOME 27 84G 9G2 30 073 357
OPERATING EXPENSES: -
ADMINISTRATIVE:
Total Admin, Salaries 1,842,72G 1,845,GSG
Legal 43,582 43,572
Sunclr~~ 444 303 480 317
TOTAL 2 334 G] 1 2 3G9 57S
TENANT SERVICES
Salaries 69,531 G7,505
Tenant Activities 37 28G 37 274
TOTAL lOG 817 104 779
jJTILITIES:
Water & Sc~ver 31G,838 325,948
Electricity 128,149 133,b33
[i'ia5 GS 29b ti8 741
TOTAL 5I0 283 528 322
MAINTENANCE:
Salaries 925,155 91G,]3G
Materials 198,7G8 194,979
Contract Casts l 288,906 1,390150
TOTAL 2 412 829 2 501 265
GENERAL:
Police Services 210,000 x10,000
Insurance 137,133 134,549
Claims Account 0 0
Employee Benefits 909,001 973,690
Collection Losses 29,28G 29,433
TOTAL 1285 420 1347 G72
TOTAL OPER• EXPENSES 6,b45,9ti0 b 851,G13
MORTGAGElHAP
HAP 19,534,918 2D,787,500
Mortgage Interest 798 477 843 353
TOTAL 20 333 395 21590 853
OTHER EXPENSES:
Extraordinary Maint• 239,000 253,000
Pre-deveiopmentlAdmin costs 38 052 80,000
TOTAL 277 052 333 000
TOTAL EXPENSES 27 25G 407 28 775 4G7
0 eratin Income ~crurc De r. 590 558 1 297 890
Depreciation (paper expe:lse) 820 G98 917 077
Operating Income after Dcpr, (230,140) 380,813
GAAP to Cash Act justments
Operating Income after Depr (230,140} 380,813
Caslr Achustmcuis
Arlclback Depreciation 820,G98 917,077
Subtract Mortgage Prin Paynrts (333,722) (349,GG9}
Subtract Replacement Reserve (8G,804) (128,304}
Subtract Equipment Reserve (8,SG2} (10,388)
MAP (Paid from Prior ACC's) 0
Total Adjustments 391,G10 42$,71G
Acl,justcd Net CaslrlOpcrations 1G1,470 809,529
Rescrvc Transfers and Loans
Olrcrating Reser•vc transfers 0 0
HAP Equity (NRA) 0
Replacement Rescrvc 105,200 0
Total Non-Operating _
105,200 _
~~ ~ a
Canltal A55Cts
Cal)Ital A$sCt Acl(Iitlpn5 (235,DDD} (SG5,2D0}
LDan !'rDCCCdS ~ 4t)D,DDO
CDBG runds 0 0
Net C~slr far Cupit~~I Asscl~ (235,D00) (4G5,2DD)
Budget Page 2
Net Ad,justrricnts 31,G70 344,329
Housing Authority of the City of Alameda
Revised Budget Number 2
Far the Fiscal Year Ending June 30, 2010 Budget Page 3
Gcucr all~und Es c ranza
Arrprc~rcd Praha5Cd Ariprt~vcrt PrapaSC(1
Bud ct Linc Items 2010 2010 20]0 2010
OPERATING INCDME:
HAPIDIscratinfi Subsidy 195,288 189,600 313,857 1,190,000
Rents 0 0 613,056 590,D00
Management Fces Earnctl
Administrative 1"ccs l 1,635 0 0 0
Interest 12,875 9,000 3,417 3,317
Other Income 8 256 8 O1G 255,963 38 745
TOTAL INCOME 228 054 206 G1 G 1 186 293 1822 OG2
vrr.icn i urv ~nrU~wLO:
ADMINISTRATIVE:
Total Admirt, Srrlarics
Legal
Sunclry
TOTAL
TENANT 5ER1'ICES
Salaries
Tenant Activities
TOTAL
UTILITIES:
Water & Sever
Electricity
Gas
TOTAL
MAINTENANCE:
Salaries
Materials
Contract Casts
TOTAL
GENERAL;
Police Services
Ins>;rance
Claims Account
Employee Benefits
Collection Losses
TOTAL
TOTAL DPER, EXPENSES
MORTGAGEIHAP
HAP
Mortgage Interest
TOTAL
OTHER EXPENSES:
Extraordinary Maint,
Pre-develapmentlAdmin casts
TOTAL
TOTAL EXPENSES
0 Keratin Income hcfu~c De r,
Depreciation (paper expense}
Opcratin~ Income after Depr,
GAAP to C~sll ArI'itstments
Operating Income after Depr
Caslr Acliustmcnts
Addback Delyrcciatian
Subtract Mortgage Prin Paynrts
Subtract Replacement Rescrvc
Subtract Equilament Rcscrvc
I-IAP (Paid from Prior ACC's)
Total Acljusimcnts
Acljustecl Nc1 CasIt101rcratians
Reserve Transfers anci Loans
Operating Reserve transfers
I1AP Equity (NRA)
Rclrlacemcnt Rcscrvc
Total Non-01~erating
Cauital Assets
Catrital Asset Additions
Loan Proceeds
CDBG Funds
Net Cash for cupirn~ nsscr~
Net Atl,justments
11,907 0 201,555 202,423
0 0 G,55G G,3GS
0 0 55 776 91 166
11 907 0 263 886 299 954
a a 20,014 19,431
0 D 3G 874 3G 874
0 0 SG 888 56,305
0 0 94,282 93,367
0 0 14,248 14,bb3
0 0 3,152 3 247
0 0 111682 111277
0 0 273,933 26$,197
0 0 40,208 39,037
0 0 377 850 470 745
0 0 691991 777,978
0 0 8z,74o 82,7ao
1,1 ] 1 1,078 16,852 16,361
0 0 0 0
3,713 0 161,28b 168,647
0 0 12 466 12103
4 824 1078 273 344 279,851
1 b 731 1078 1397 791 1525 365
195,288 189,600 0 0
0 o a o
195,288 189,b00 0 0
0 5,00o a o
38 052 80 000 a 0
38 052 85 000 0 0
250 071 275 679 1397 791 1525 365
22 016 69 OG3 211498 296 697
19,502 18,629 _ 211,207 ,.-,_._- -•__--. 218,9b0
(41,518) (87,692) (422,705) 77,737
(41,518} (87,692) {422,705) 77,737
19,502 18,629 211,207 218,960
(10,000) (lo,ao0}
0 0 (1,048} (1,099)
9,502 8,629 210,159 217,861
(32,016) (79,063} (212,546) 295,598
a o a o
a a o a
0 (45,000) 0 0
0 a _ -- a o
0 {45,000) 0 a
(32,016) (124,063) {212,546} 295,598
Housing Authority of the City of Alameda
Revised Budget Number 2
For the Fiscal Year Ending June 3D, 2D~ D Budget Page 4
Parrot S Ea Ic 1'illtt c FIA O~vned
appru~~cd Proposed Appruti•cd Praposccl
I;~tcl ct Line Items 2010 21110 2111t] xplt!
DPEI~ATING INC'DML;
I~IAPIOtaerating Subsicly 1,183,544 1,200,480 1,034,544 1,234,G80
Itcnts 527,37G 480,840 771,GG0 807,240
Management f ces Earned
Administrative Ices ~ 0 0 0
Interest 340 7,000 Gi,800 50,000
Other Income 12 360 12 000 7 700 10 47G
TOTAL INCOME
nur, n A Trivr rvur~e~e, 1723 G20 1700 320 1875 704 2102 39(1
ADMINISTRATIVE; ~
Total Admin, SalArics 174,G37 17G,118 247,515 274,4G2
Legal 4,202 4,080 13,548 14,413
Sundry 54 G21 47 27G 118 737 105 708
TOTAL 233 4G0 227 474 379,800 394 S83
TENANT SERVICES
Salaries 5,227 5,074 22,009 21,3G8
Tenant Activities 103 100 103 1 OD
TOTAL 5 330 5,174 22112 2l 468
UTILITIES;
Water & Saver 75,955 7G,722 83,540 93,410
Electricity 15,603 [G,D58 45,054 48,117
Gas 5 4G3 5 463 35 55G 38,9DG
TOTAL 97 021 98 243 1 G4,150 180 433
MAINTENANCE:
Salaries 214,051 210,720 206,600 210,647
Materials 49,234 47,800 59,850 60,ID7
Contract Costs 290 742 281 124 345 753 365 252
TOTAL 554 027 539 643 612 x04 636,006
GENERAL:
Police Services 43,470 43,470 3D,450 30,450
Insurance 40,027 38,861 17,049 17,963
Claims Account a a 0 0
Employee Benefits 128,220 ]34,873 154,979 174,300
Collection Losses 14 008 13 600 2,812 3 730
TOTAL 225 724 230 804 205 290 226 443
TOTAL DPER, EXPENSES 1,115 562 1101339 1383,556 1458 933
MQRTGAGEIHAP
HAP 0 0 0 0
Mortga~c Interest 279 810 271,660 47 625 GO 651
TOTAL 279 810 271660 47 625 GO 651
OTHER EXPENSES:
Extraordinary Maint, 125,000 125,000 49,000 49,000
Pre-developmentlAdmin costs 0 0 D 0
TOTAL 125 000 125 000 49 ODO 49 000
TOTAL EXPENSES 1520 372 1497,999 1480181 1 568,584
O eratin Income ~ickrcr Dc r. 203 248 202,321 395 523 533 812
Dettrecintion (paper expense) 174,746 255,468 104,955 124,140
Opcratin~ Income After Depr, 28,502 (53,147) x90,568 409,672
GAAP to Cash Ad jttstments
Operating Income After Depr 28,502 (53,147) 290,568 409,672
Caslt Adiustntcnts
AddbACk Depreciation 174,746 255,468 1D4,9S5 124,140
Subtract Mortgage Prin Paymts (109,213} (109,213} (15,093) (31,040}
SubtrACt ReItlACemcnt Rcscrvc (32,200) (32,200) (41,5DD}
Subtract Equipment Rcscrvc (3,220) (3,200} (1,972) (1,972}
HAP (FAicl from Prior ACC's)
Total Ad;ustmcnts 30,113 110,855 87,890 49,628
Acl,justccl Net CaslilOl~cr:ttioits 58,615 57,708 378,45$ 459,300
Rcscrvc Transfers and Loans
Oheratin~ Rcscrvc transfers
IIAP Equity (NRA)
RetilACement Rcscrvc
Total Non-Ol~cratin~ 0 0 0 0
CAraitAl Assets
CAItItAI Asset Addrfioits 0 0 ~1GO,DDO} (745,200)
Loan Proceeds 400,000
CDI3G Funds 0 0 0 0
Net Casit for ci~~drn~ n~sc~s 0 0 (1 GO,OOD) (345,200)
Net Adjustments 58,615 57,708 218,458 114,IOD
Housing Authority of the City of Alameda
Revised Budget Number 2
For the Fiscal Year Ending June 30, 20~ D Budget Page 5
Inds ~end crrcc I'lazrr Section 8 Voucircr
Appruti~td 1'rDpU5C(I Apprurc+i I'rDpDS@It
Iirr[i ct Linc Items 2010 21110 2tlitt 2Ul0
OPERATING INCOME:
IiAPlOpcratin~ Subsi[l,Y 699,878 800,537 19,339,630 20,597,900
Rents 1,301,508 1,315,44{I p 0
Mana~cmcrrt Fces EArned
A[iministrativc l+ces D p 1,462,699 I,~t99,372
lnterest ],485 ],442 0 D
Other Income 20 345 19 752 7 746 7 S20
TOTAL INCOME 2 023 216 2137171 20 810,075 22104 792
OPERATING EXPENSES:
ADMINISTRATIVE;
'fatal Admin, 5Alarics 251,543 254,590 955,SG9 93$,093
Leal 7,915 7,684 11,361 11,030
Sun[Ir G8 385 G3 282 146 784 172 885
TOTAL 327 $43 325 SSG 1 l13 714 1 122 008
TENANT SERti'ICES
Salaries 22,281 21,632 p 0
Tenant Activities Ip3 100 1D3 IOD
TOTAL 22 384 2l 732 103 l00
t1TILITIES;
Water & Sewer 62,700 62,092 361 357
Electricity 45,245 46,563 7,999 8,232
GAS 20 629 20,629 496 496
TOTAL 128 S74 129 284 8 856 9,085
MAINTENANCE:
Salaries 230,571 226,573 0 0
Materials 45,088 43,775 4,388 4,260
Contract Costs 262 782 261093 11779 11,936
TOTAL 538,441 531 441 1 b l 67 16,196
GENERAL:
Police Services 24,570 24,570 28,770 28,770
Insurance 57,037 55,376 5,D57 4,9]0
Claims Account D D 0 0
Employee Benefits 164,181 173,033 296,622 322,837
Collection Lo55e5 0 0 0 0
TOTAL 245 788 252,979 330 448 3S6 517
TOTAL OFER. EXPENSES 1263 030 1,260 992 1469,28$ 1503 907
MORTGAGEIHAP
HAP 0 0 19,339,630 20,597,900
Mortgage Interest 471042 471042 D 0
TOTAL 471042 471 D42 19 339 630 20 597 900
OTHER EXPENSES;
Extraordinary Maint. - 65,000 74,000 0 0
Pre-developmentlAdmin costs 0 0 D 0
TOTAL 65 0DD 74 000 0 0
TOTAL EXPENSES 1799 072 1,8DG 034 20,808 918 22101807
0 eratin Income acre+rc De ~r, 224144 331 137 1,157 2,986
Depreciation (paper expense) 310,136 299,880 1S2 D
Opcratin~ Income after Depr• (SS,992) 31,257 1,005 2,986
GAAP to Cns~i A[!'ustments
Operating Income after Dcpr (85,992) 31,257 1,DD5 2,9$6
Case Adjustments
Addback Dclrreciatiorr 310,136 299,880 152 0
Subtract Mortgage Prin Paymts (209,416) (209,416}
Subtract Replacement Reserve (44,GD4) (44,GD4)
Subtract Equilymcnt Reserve {2,322} (2,117) (2,000)
I~IAP (Paid from Prior ACC's) D
Total Adjustments 53,794 43,743 152 (2,000)
Ad,juste[i Net CashlOperations (32,198) 75,000 1,157 986
Iteservc Tr•arrsfcrs anll Loans
Qirer•atirr~ Reserve transfers
I-IAP Equit~~ (NRA) D
Replacement Rescrvc lOS,200 0
---
Total 1~bn-Operating 105,200 0 ~ . ~~. ~_ 0 ~_~...... D
Cal?Ital AsSet$
Calrital Asset Additions (75,000) (75,DDD) D p
Loan Proceeds
CDBG Funds D 0 0 0
Net Cash for c:+I+i~ni n~:~~~ (75,000} (75,000) 0 0
Net A[I,juslmcnts (1,998) (0) 1,157 986
Budget Page 6
HOUSING AUTHGRITY DF THE CITY GF ALAMEDA
SCHEDULE DF AUTHGRIZED PGSITIONS -- FY ~D~ D
Approved FY
2014
ADMINISTRATION
Executive Director 1.D
Operations Manager 1,D
Executive Assistant 1.0
Sub-total 3.D
FINANCE DIVISION
Finance Manager 1.0
Accounting Officer 1,0
Senior Account Cierk 1,D
Account Clerk 1.D
Sub-total 4.0
HOUSING ASSISTANCE DIVISION
Housing Assistance Manager 1,0
Hausing Specialist III 1,0
Housing Specialist II 3.0
Housing Specialist I* 4.D
Intermediate Cierk* 7.D
Sub-total 16. D
HOUSING MANAGEMENT DIVISION
Managed Housing Manager 1,0
Housing Manager 2.0
Intermediate Clerk 1.0
Resident Manager 3,D
Assistant Resident Manager 0.5 *~
Resident Custodian 1.2 ~*
Sub-total 8.7
MAINTENANCE AND FACILITIES DIVISION
Maintenance and Facilities Manager 1,0
Reconstruction Specialist II 1,0
Office Assistant ~ ,0
Senior Clerk 1.0
Maintenance Team Leader ,~ 1.0
Maintenance Worker li 4,0
Maintenance Worker I 1.0
Laborer 2.0
Custodian 1.0
Sub-total 13,0
TOTAL ADMINISTRATION 7.0
TOTAL HOUSING SERVICES 24.7
TOTAL MAINTENANCE AND FACILITIES 13.0
TOTAL 44.7
* Two positions are currently being held vacant and are unfunded,
** Resident employees are required to reside on-site at assigned Housing Authority comple.
Each employee has an individual employment contract,
319 7/2009
Budget Page 7
PROPOSED REVISED SCHEDULE OF EMP AND CIP PROJECTS
JULY ~, 2a~9 ~ JUNE 34, 20~ D ~FY 20~ 0~
Project No Project Description Approved
EMP & CIP
FY 2010 Proposed
EMP
FY 2010 Proposed
CIP
FY 2010
HOUSING AUTHORITY GENERAL FUND
_ GF1-1 D _ Two ~2} Maintenance Vans
45
0
00
___ __
GF2-10 ADA Transition Improvements ~~ ~
PROPDSED TOTALS 0 5,p0D
5,000 _
__
.
~~~ ~~
45,OOD
ESPERANZA
PROPDSED TOTALS
o~ o~ o
EAGLE VILLAGE AND PARROT VILLAGE .
Existing Approved Eagle and Parrot,Villa~e Projects 125,D00 125,D00
PROPOSED TOTALS 125,DOD 125,DOD D
HOUSING AUTHORITY-D~IJVNED ~ ~ ~ ~ ~ :
Existing Approved Housing Authority awned Projects 209,000 49,000 160,OOD
..
SS1-1D Conversion Rehab of 1416 Sherman St. Property 0 0 4D0,004
1st Floor Kitchen Cabinets and floor covering
ABD3-1 D ~includin~ community roomy 185 200
PROPOSED TOTALS ~ 209,000 49,000 745,200
PROPOSED GRAND TOTALS
474,D00. 253,DD0 :8fi5,2DD
Current Approved EMPlCIP Total $474,D40
Proposed Revised EMPlCIP Total $1,118,20D
Difference $fi44,200
~- J
w
~~~
Housing Authority of the City of Alameda
1~soCution X1/0.
APPRGVING AND ADGPTING
HGUSING AUTHORITY BUDGET REVISIaN NUMBER 3
FGR THE SECGND YEAR GF THE TVIJG-YEAR BUDGET
-JULY 1, 2009 TG JUNE 30, 201D
WHEREAS, the Chief Executive Officer has submitted a proposed budget
revision to the Board of Commissioners of the Housing Authority of the City of Alameda;
and
WHEREAS, the revised budget as submitted in Exhibit A sets forth a schedule of
Extraordinary Maintenance Projects ~EMPs} and Capital Improvement Projects ~CIPs}
and allows for the fungibility of dollars between projects within EMPs and budget fund
and CIPs and budget fund; and
WHEREAS, the Housing Authority has sufficient operating reserves to meet the
working capital needs of its properties; and
WHEREAS, the proposed revised budget includes expenditures that are
necessary for the efficient and economical operation of the housing for the purpose of
serving low-income residents; and
WHEREAS, the proposed revised budget indicates a source of funds adequate
to cover all proposed expenditures; and
WHEREAS, the Housing Authority will comply with all state and federal wage
rate requirements and requirements for access to records and audits;
NoW, THEREFORE, BE IT RESOLVED that the Board of Commissioners of the
Housing Authority of the City of Alameda hereby adopts the revised budget as
submitted in Exhibit A for the fiscal year ending June 30, 2D1 D.
ATTEST:
Beverly Johnson, Chair
Board of Commissioners
Michael T. Pucci
Executive Director I Secretary
Attachment 2. to Agenda Item #2-B CC
4-07-09 HAB~C
~ ,,.~ -,-~~i
~~u~ir~ ~ ~ _.
~.ut~ari
~ the ~
t ova
rrle~a
l01 Atlantic Avenue -Alameda, California ~45p~-Z1G1-Tel: (510 747.4300 -Fax: (510y522-148 - TDD: (5~0} 52~-13467
To: Honorable Chair and
Members of the Board of Commissioners
From: David Brandt
Acting Chief Executive Officer
Date: April 7, 2009
Re: Awarding Contract for the installation of a 21 stall arkin lot at
p 9
Inde endence Plaza
BACKGROUND
Since April 7, 1998, the Board of Commissioners has authorized an extraordina
ry
maintenance project HEMP} to add parking spaces for the senior residents at
Independence Plaza.
On November 6, 2007, the Board of Commissioners authorized the Housin Authorit to
. g Y
enter into a license agreement with the City of Alameda to provide an 11,575 s ware
q
foot tract of land on Neptune Park for a parking lot for Independence Plaza residents.
DISCUSSION
On February 6, 2009 the Housing Authority issued an invitation For Bids IFB for the
~ }
installation of a 21 stall parking lot at Independence Plaza. A public notice was laced in
p
the local newspaper, with local plan holder services and on the Housin Authorit 's
9 Y
website. In addition, all companies that have requested placement on the Housin
g
Authority s list of potential contractors for this type of work and all Alameda contractors
with a relevant business license were contacted about the IFB
On March 10, 2009, sixteen bids were publicly opened and which ranged from a hi h of
g
$350,288 to a low of $150,000.
The lowest five bid results are as follows:
Contractor Cit Bid Amount
Ba Construction Com an Oakland $150,000
FAN FA I ncorporated San Lorenzo $153, 844
Grade Tech Incor orated San Ramon $189,800
North Ba Construction Petaluma $192,687
Jose h J. Albanese Santa Clara $19$,963
HABOC
I#em #2-C GC
4-0709
Honorable Chair and
April 7, 2409
Members of the Board of Commissioners
Page 2 of 2
The Housing Authority has not worked with Bay Construction Cam an on
r . p y any previous
p o~ects. Staff has checked their references and has visited three revious 'ob sit
p ~ es with
no negative findings from any sources. Staff has also met with Ba Construc i
y ton
Company to clarify all contract requirements. The will rovide the Hous'
Y p Ong Authority
with all necessary insurance documentation and proof of a Cit of Alameda B '
. Y usiness
license. Bonding requirements will be met priorto commencement of work,
A copy of the contract is on file in the City Clerk's Office and in the Housin Au ' '
g thor~ty s
public reference binder.
BUDGET CONSIDERATIONIFINANCIAL IMPACT
The budget provides $250,000 for the parking lot installation includin d '
. g es~gn,
engineering and con#ingencies. Staff is recommending bud et authorit in the amount f
g Y o
$213,500 which includes potential contingencies and the re- aintin of the re '
p g manning
metal fences.
RECOMMENDATION
The Housing Commission and Acting Chief Executive Officer recommend the Board of
Commissioners:
1. Award a contract to Bay Construction Company for an amount not to exceed
$213,500, including contingencies, to install a 21 stall arkin lot at
p g
Independence Plaza, and to repaint the remaining metal fences.
2. Authorize the Executive Director to execute the contract with Ba
c Y
onstruct~on Company.
Respectfully submitted,
Michael T. Pu i
Executive Director
By: Keivan Abidi
Reconstruction Specialist II
MTP: KA
''~ ...
-,-
~ut~io ` .
ri o the
~t ~
.~ amid
~ ~
701 Atlantic Avence -Alameda, California 94501-2161- Tel: ~510~ ?47-43x0 ~ Fax: ~510y5~Z-7846 - TDD: ~510~ 6~2-8467
To: Honorable Chair and
Members of the Board of Commissioners
From: David Brandt
Acting Chief Executive Gfficer
Date: ,April 7, 2009
Re: Award Contract to Replace Roofin at the Es eranza Housin Com lex
BACKGROUND
Gn February 25, 2009, the Housing Authority was awarded a $269,717 Ca ital Fund
p
formula grant pursuant to the American Recovery and Reinvestment Act ARRA of
~ }
2009. If the budget amendment to this year's budget is approved, it will include the re-
roofing proiect at the Esperanza Housing Complex, This work includes re lacin all rain
p 9
gutters and downspouts.
DISCUSSIGN
Gn March 13, 2009, the Housing Authority issued an Invitation for Bids IFB for the
~ }
replacement of roof coverings at Esperanza. A public notice was laced in the local
p
newspaper and on the Housing Authority s website. In addition, all companies that have
requested placement on the Housing Authority's list of potential contractors far this t e
f yp
o work and all Alameda contractors with a relevant business license were contacted
about the IFB.
On March 24, 2009, four bids were publicly opened and ranged from a hi h of $703 387
g ,
to a low of $274,270. The bid results are as follows:
Contractor Cit Bid Amount
Ridout Roofin San Leandro,CA $274,27'0
Sierra Roofin S stem Dublin,CA $432,800
Advanced Roofin Alameda, CA $51,994
Ea le Roofin Qakland,CA $103,870
The Housing Authority has not worked with Ridout Roofing Compan on an revious
y Yp
projects. Staff has checked the company's references and has visited previous 'ob sites
. 1
with no negative findings from any sources. Staff has also met with the contractor to
clarify all contract requirements.
HABaC
Item #2-D CC
4-07-09
Honorable Chair and
Members of the Board of Commissioners
April 7, 2009
Page 2 of 2
The company will provide the Housing Authorit with all necessa '
Y ry insurance
documentation and has provided proof of a City of Alameda Business license. B '
ond~ng
requirements will be met priorto commencement of work.
Though there was not time to take this contract before the Housin Commission for a
9
recommendation, the Commission has approved the recommendation to revise the
budget to include this project.
BUDGET CQNSIDERATIONIFINANCIAL IMPACT
The budget provides $269,717 of ARRA Capitol Fund formula rant fundin for the
g g
complete re-roofing project. Additionally, $31,984 of contin enc fundin is bein
g Y g g
requested for the balance of the contract amount and for the replacement of lama ed
9
roof plywood.
RECOMMENDATIQN
The Acting Chief Executive Qfficer recommends the Board of Commissioners:
1. Award a contract to Ridout Roofing Company to re-roof 22 residential structures and
two connected community buildings, for an amount not to exceed $301,697 incfudin
g
contingencies.
2. Authorize the Executive Director to execute the contract with Ridout Roofin .
g
Respectfully sub i
Michael T. Pucci
Executive Director
f 'f ~~
By: Keivan Abidi
Reconstruction Specialist II
MTP: KA
UNAPPROVED
MINUTES OF THE SPECIAL JOINT CITY COUNCIL AND
COMMUNITY IMPROVEMENT COMMISSION (CIC} MEETING
TUESDAY- -MARCH 17, 2009- -7:27 P.M.
Mayor/Chair Johnson convened the Joint Meeting at 8:02 p.m.
ROLL CALL - Present.: Councilmembers/Commissioners deHaan,
Gilmore, Matarrese, Tam, and Mayor/Chair
Johnson - 5.
Absent: None.
MTT~TTTT~'C
(09 CIC} Minutes of the Special Community Improvement Commission
Meeting held on March 3, 2009.
Commissioner Gilmore moved approval of the minutes.
Commissioner Tam seconded the motion, which carried by unanimous
voice vote - 5.
AGENDA ITEM
(09- CC} Recommendation to approve a $3 million loan from the City
Sewer Fund to the Community Improvement Commission for matching
funds for construction of the Webster Street/Wilver "Willie"
Stargell Avenue Intersection Project, No. P.W. 10--08-26; and
(09- CIC} Recommendation to approve funding and award a Contract
in the amount of $6,923,869, including contingencies, to Top Grade
Construction for the Webster Street/Wilver "Willie" Stargell Avenue
Intersection Project, No. P.W. 10--08-26.
The Base Reuse and Community Development Manager gave a brief
presentation.
Mayor/Chair Johnson requested clarification on the State
Transportation Improvement Program (STIP} funding timeline.
The Base Reuse and Community Development Manager stated funding was
allocated in September; the City has six months to award a
Contract; after the Contract is awarded, the first invoice needs to
be processed within the following six months; construction needs to
commence shortly after the award of the Contract; overall
construction needs to be completed in one year.
Special point Meeting
Alameda City Council and 1
Community Improvement Commission
March 17, 2009
Mayor/Chair Johnson inquired what would happen if timelines are not
met, to which the Base Reuse and Community Development Manager
responded the $4 million would be forfeited.
Mayor/Chair Johnson inquired whether staff is watching to see
whether the project would qualify for stimulus funding, to which
the Base Reuse and Community Development Manager responded in the
affirmative .
Councilmember/Commissioner Matarrese inquired: 1} whether the City
would be paid back the $3 million in Sewer Fund money if stimulus
funding were received; 2} what would happen if Catellus does not
move forward; and 3} whether the City would only receive $2 million
back from Catellus or whether the $2 million is the down payment on
the obligation.
The Base Reuse and Community Development Manager responded the City
would receive $2.2 million for the Stargell Avenue project if
Catellus moved forward with Target only; stated Catellus would be
1000 responsible for the local match if the rest of the project
moves forward; that she is not sure whether the City would be able
to be reimbursed with stimulus funding.
Councilmember/Commissioner Matarrese inquired whether the City
could lose $3 million, which is the delta between the estimate and
the actual bid, in addition to the $4 million, to which the Base
Reuse and Community Development Manager responded in the
affirmative .
Mayor/Chair Johnson inquired whether thought should be given to
phasing the project.
The Interim Finance Director responded the Stargell Avenue project
would not qualify for stimulus funding; stated the federal
government is talking about a second, third, and fourth recovery;
the City needs to look to the State because the State may be
offering some incentives for ready projects; the City would draw
down on the loan amount based on actual needs; not having some
opportunity to repay the Sewer Fund in the next five years is less
than 3 p .
vice Mayor/Commissioner deHaan inquired how much money is in the
Sewer Fund.
The Interim Finance Director responded the true cash fund balance
is approximately $l8 million.
Special Joint Meeting
Alameda City Council and 2
Community Improvement Commission
March 17, 2009
Vice Mayor/Commissioner deHaan inquired where the money came from,
to which the Interim Finance Director respanded the money
accumulated over time.
Vice Mayor/Commissioner deHaan inquired what are the funding
projections for the next five years.
The Public Works Director responded existing projects would
continue without needing to access any of the money that would be
part of the loan; stated staff is currently embarking on a Sewer
Master Plan to identify a twenty-year capital improvement project
plan which would indicate whether property tax fees should remain
the same or change.
Vice Mayor/Commissioner deHaan inquired whether some of the funding
would be used for Alameda Point infrastructure.
The Public Works Director responded typically, developers pay
improvement costs.
Vice Mayor/Commissioner deHaan inquired what would be the funding
stream if Catellus does not move forward.
The Base Reuse and Community Development Manager responded the CIC
would be the promissory note holder; stated funding could come from
tax increment, bonds, or lease revenues from Alameda Reuse and
Redevelopment Authority ~ARRA} or Fleet Industrial Supply Center
~FISC} .
Vice Mayor/Commissioner deHaan inquired how other tax increment
projects would be impacted.
The Base Reuse and Community Development Manager responded staff
would start budgeting for the loan repayment; stated other
redevelopment projects may have to be postponed.
Councilmember/Commissioner Tam stated the staff report notes that
the $2.2 million pro rata share would be triggered within 120 days
of Catellus finalizing a Purchase and Sale Agreement with Target;
inquired whether getting some type of entitlement before the $2.2
pro-rata share moves into City funds is not necessary, to which the
Base Reuse and Community Development Manager responded in the
affirmative .
Councilmember/Commissioner Tam stated other revenue sources are
listed in addition to the Sewer Fund; there has been an on-going
Special Joint Meeting
Alameda City Council and 3
Community Improvement Commission
March 17, 2Q49
impression that revenue sources are not sufficient to meet all
capital needs and maintenance costs in the long run; inquired
whether funds would be compromised by trying to move funding from
accounts to pay for the Willie Stargell project.
The Base Reuse and Community Development Manager responded the
Public Works Director noted that the Sewer Fund would not be
impacted; ARRA and FISC lease revenue funds are available and
sufficient; funds are still available for water system upgrades.
Councilmember/Commissioner Matarrese moved approval of the staff
recommendations.
Cauncilmember/Commissioner Matarrese stated the extension is needed
regardless of whether Alameda Landing goes forward within the
timeline.
Councilmember/Commissioner Tam seconded the motion.
Under discussion, Vice Mayor/Commissioner deHaan stated that he is
extremely supportive of the staff recommendation; that he has
concerns with potentially impacting future projects; Catellus might
not move forward with Alameda Landing.
Mayor/Chair Johnson stated the extension is necessary whether
Catellus goes forward with Alameda Landing or not.
On the call for the question, the motion carried by unanimous voice
vote - 5.
ADJOURNMENT
There being no further business, Mayor/Chair Johnson adjourned the
Special Joint Meeting at 8:23 p.m.
Respectfully submitted,
Lara Weisiger, City Clerk
Secretary, Community Improvement
Commission
The agenda for this meeting was posted in accordance with the Brown
Act.
Special Joint Meeting
Alameda City Council and 4
Community Improvement Commission
March 17, 2009
Proclamation
W~~R~~4S, in 1974, the Environmental Protection Agency EPA} was created with the
mission to protect the environment and public health; and in this same year,
20 million people in the United States celebrated the first Earth Day; and
~1~~R~~4S, the idea for Earth Day has evolved into a national da of awareness and
Y
education f ocused on environmental concerns; and
1~tI~~R~~4S, Earth Day will, be observed b ....other communities throw bout the
,,. .. Y ,. , •: g
world, praVd `ug ~an: oppo~t-uruty, :~ f oar ; , ~o~rernments to work to ether with
- g
,,..
business •~ mdus}~. , ~~~~ erivlroental }:: g~oups~:~~•:couni~l or anizations, and
resldent5•~for..a ros erous~~ari~~-sustarnab•~e:futu`~e; and
' _ •,_ •
a a.;~.• ••:G. _.~...~~~o~s~~:~n:~~~A~.•a;meda ~1~~~b+e~.~e`sanded ;,~o a week of activ~tres
,. is ~}:; •,i,' - - ~ '.~. ? , f ; ,' _
~to ~~nvo~~re;,~the~~ra::~.dest~~~~~ossx~le cross=sec~t~on~~~~o~l:~oc~e• .~~:
.~ .- s.r,,::.J ,:; _ :,~,:.. p .. ~.~.. ,.,. - - ty; .aid
- ~ .~i'~~
i.
~I.
- .
w
~ -
~ R~~4S Earth: V~e~~k^',~s~~an: expellent o •orturu
- ~for`•:~11'`A~ameda':residents to oin the
effort ~to~. V'rofecl~:tn~~~;':~ `Tan,~~t..b~~~~; becomzn ~ co_ nsc~ous•~ .of : they .challen es f ac~n
the`~en~ironment:lJocall~ - ationall - ~`~
. _, , :,; y'~ .. y; and _g~oball~,•arid ~o;'take reat ride rr-
- • therr, :abil.Yty~ ao re~;u~e `greenhouse gasses; ~ divert •r~•cyclables away from the
landfill; ~ and ensure` that nothin but rainwater d~a~ns~:into' the storm drains;
~' g
- .•..
w~~R~~4S, Alamedans• ~ have come ~ ~fo ~ ether to • dorm ~ fihe Communi Action for a
~~: ;
Sustainable Alameda_ _,~CASA} to raise ~: ; ~aareness, mobilize action, and
facilitate •implemeri~atiori , o~ programs ~~ to~~ ~hel~ • .:Alameda achieve its oafs of
' P g
reducing carbori:,emissions, while incteas~ri' ~ • sustainabili and well-bein ;
g tY g
and - ., , . .
1~V~{~R(~~45, the Public works Department, Recreation & Park Department, Alameda
Municipal Power, Alameda County Industries, and East Bay Regional Parks
are jointly sponsoring Earth Day festivities on April 25, 2009, at Washington
Park,
NOW, ~££R£~OR~ ~~ IT R~SOLVf~, that I, Beverly j. Johnson, do hereby proclaim
Apri119 through Apri125 as
£,4R'rff W~f1G tiLAME'D+4 2009
and invite all Alameda residents, businesses, civic groups, government agencies, and other
organizations to participate in Iocal and regional celebratory and educational activities.
City Council
-~ Agenda Mtem #3-A
eve , jo son.
04-o7-og
yor ,.
UNAPPROVED
MINUTES of THE SPECIAL CITY COUNCIL MEETING
TUESDAY- -MARCH 17, 2009 -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:
(09Y } Conference with Labor Negotiators; Agency negotiators:
Craig Jory and Human Resources Director; Employee organizations:
All Bargaining Units.
(09- } Conference with Legal Counsel - Anticipated Litigation;
Initiation of litigation pursuant to subdivision (c} of Section
54956.9; Number of cases: One.
(09- } Conference with Labor Negotiator (54957.6}; Agency
Negotiator: City Attorney; Name: City Manager.
(09- } Public Employment; Title: City Manager.
Following the Closed Session, the Special Meeting was reconvened
and Mayor Johnson announced that regarding All Bargaining Units,
the City Council received a briefing from its Labor Negotiators; no
action was taken; regarding Anticipated Litigation, the City
Council received a briefing; regarding City Manager, the City
Council voted unanimously in favor of a settlement agreement with
former City Manager, Debra Kurita; although the City Council and
Debra shared many goals for the City, we differ in the manner in
which achieve them; the decision to take the City's management in a
new direction was an amicable and mutual decision for Debra and the
Council, and we wish her well in her future professional endeavors.
***
Mayor Johnson called a recess at 7:40 p.m. to convene the Regular
City Council Meeting and reconvened the Special Meeting at 10:20
p.m.
***
Following the Closed Session, the Special Meeting was reconvened
and Mayor Johnson announced that regarding Public Employment, the
City Council discussed the appointment of an interim City Manager;
no action was taken.
Special Meeting
Alameda City Council
March ~7, 209
Adjournment
There being no further business, Mayor Johnson adjourned the
Special Meeting at 12:00 a.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
March 17, 2009
UNAPPROVED
MINUTES OF THE REGULAR CITY COUNCIL MEETING
TUESDAY- -MARCH 17, 2009- -7:30 P.M.
Mayor Johnson convened the Regular Meeting at 7:52 p.m.
ROLL CALL - Present: Councilmembers deHaan, Gilmore,
Matarrese, Tam, and Mayor Johnson - 5.
Absent: None.
AGENDA CHANGES
(09- } Mayor Johnson announced that the proclamations [paragraph
nos. 09- and 09- ] and resolution of appointment [paragraph
no. 09- ] would be heard before the Joint City Council and
Community Improvement Commission Meeting.
PROCLAMATIONS, SPECIAL ORDERS OF THE DAY AND ANNOUNCEMENTS
X09- } Proclamation declaring March 16-21 as Women's Military
History Week.
Mayor Johnson read and presented the proclamation to Mildred Nolan.
Ms. Nolan thanked Council for the proclamation; stated that a
celebration will take place on Saturday from 10:00 a.m. to 4:00
p.m. at the Twin Towers United Methodist Church.
X09- } Proclamation declaring March 22-25 as Boys' and Girls'
Club Week.
Speaker: Michael John Torrey, Alameda.
Mayor Johnson read and presented the proclamation to Boys' and
Girls' Club representatives Former Police Chief Burney Matthews and
Marc Morales.
Former Police Chief Matthews thanked the Council for the
proclamation.
REGULAR AGENDA ITEM
X09- } Resolution No. 14311, "Appointing Ardella Dailey as a
Member of the Social Services Human Relations Board." Adopted.
Councilmember Tam moved adoption of the resolution.
Councilmember Matarrese seconded the motion, which carried by
Regular Meeting
Alameda City Council 1
March 17, 2009
unanimous voice vote - 5.
The City Clerk administered the oath and presented Ms. Dailey with
a certificate of appointment.
Ms. Dailey thanked Council for the opportunity to serve the
community.
***
Mayor Johnson called a recess at 8:02 p.m, and reconvened the
Regular Meeting at 8:23 p.m.
***
CONSENT CALENDAR
Mayor Johnson announced that the Resolution Supporting a Maritime
Administration Small Shipyard Grant [paragraph no. 09- ] and
Final Passage of Ordinance Amending the Alameda Municipal Code by
Adding Article xx paragraph no. 09- ] were pulled from the
Consent Calendar for discussion,
Vice Mayor deHaan moved approval of the remainder of the Consent
Calendar.
Councilmember Tam seconded the motion, which carried by unanimous
voice vote - 5. CItems so enacted or adopted are indicated by an
asterisk preceding the paragraph number.]
~*09- } Minutes of the Special and Regular City Council Meetings
held on March 3, 2009. Approved.
~*09- } Ratified bills in the amount of $3,253,243.09.
~*09- } Recommendation to authorize the Acting City Manager to
execute a Memorandum of Understanding between the City of Alameda
and the Alameda County Fire Department to establish a Cooperative
Agreement to administer a Department of Homeland Security
Assistance to Firefighters Grant and allocate matching grant funds.
Accepted.
~*09- } Recommendation to award a Consultant Agreement in the
amount of $77,935, including contingency, to Kier & Wright Civil
Engineers & Surveyors, Inc. for survey and mapping services.
Accepted,
X09- } Resolution No. 14312, "Supporting a Maritime
Administration Small Shipyard Grant to Bay Ship & Yacht Co. to
Establish a Job Training Center and Program." Adopted.
Regular Meeting
Alameda City Council 2
March 17, 2009
Speaker; Robert L. Henn, Bay Ship & Yacht Co. submitted handout}.
Mayor Johnson stated that Bay Ship & Yacht Co. is a very valuable
employer; the City appreciates Bay Ship & Yacht Co.'s role in the
community.
Councilmember Tam stated that Bay Ship & Yacht Co.'s landlord is
John Berry; inquired how much Bay Ship & Yacht Co. pays in annual
rent.
Mr. Henn responded $615,404 per year; stated additional amounts are
paid for unshared parcels.
Councilmember Matarrese moved adoption of the resolution.
Vice Mayor deHaan seconded the motion.
Under discussion, Vice Mayor deHaan inquired whether Development
Services would be involved in the grant application and training.
The Development Services Director responded Development Services
would assist in getting applications together.
on the call for the question, the motion carried by unanimous voice
vote - 5.
~*09- } Resolution No. 14313, "Authorizing the Filing of an
Application for Federal American Recovery and Reinvestment Act of
2049 Funding for Repair and Resurfacing of Fernside Boulevard and
Central Avenue, and Stating the Assurance to Complete the Project."
Adopted.
X09- } ordinance No. 2989, "Amending the Alameda Municipal Code
by Adding Article xx Earthquake Hazard Reduction in Existing Soft-
Story Residential Buildings? to Chapter XIII Building and Housing}
and Amending Subsection 30-7.12 Reduction in Parking Requirements
for Existing Facilities} of Section 30-7 doff-Street Parking and
Loading Space Regulations} of Chapter ~~~ Development
Regulations}, By Adding Subsection 30-7.12~c} to Allow for
Reduction in Parking Requirements for Seismic Retrofit." Finally
passed.
Vice Mayor deHaan inquired whether staff is still looking into
funding streams.
The Building official responded $100,000 would be set aside for
assisting property owners who have 510 low to moderate occupancy
and would also be available for historic structures.
Regular Meeting
Alameda City Council 3
March 17, 2009
The Acting City Manager stated staff is reviewing Berkeley's
program to help property owners finance solar panels.
Vice Mayor deHaan stated assisting property owners is important
because the current market is unstable.
Mayor Johnson stated Berkeley's solar panel model is good because
loans are from a bond; the gas shut off value requirement is a good
part of the initial phase; inquired whether the initial phase would
not require retrofitting but would develop a list.
The Building Official responded the first phase would develop a
list and requires property owners to complete an engineering study
and outline fixes within eighteen months of notification; stated a
gas shut off value would need to be installed within 60 days of
notification.
Mayor Johnson stated the Association of Realtors supported the
first reading of the ordinance; a lot of outreach has been done.
Councilmember Matarrese stated the matter is a public safety issue;
the first step would identify buildings and require an engineering
study and installation of a gas shut off value.
Councilmember Matarrese moved final passage of the ordinance.
Councilmember Gilmore seconded the motion, which carried by
unanimous voice vote ~ 5.
(*09- ~ Ordinance No. 2990, "Amending Alameda Municipal Code
Subsection 30-4.1 ~R-l, One--Family Residence Districts} of Section
30.4 District Uses and Regulations? of Article I Zoning Districts
and Regulations Chapter xxx Development Regulations? By Deleting
Subsection 30-4.1 in Its Entirety and Replacing with a New
Subsection 30--4.1 to Allow Ministerial Approval of Secondary Units
on Sites Having a Single-family Dwelling and Meeting Specific
Standards." Finally passed.
~*09- } Ordinance No. 2991, "Amending Various Sections of the
Alameda Municipal Code Contained in Chapter II Article I Pertaining
to City Council Meetings, Chapter II Article II Pertaining to the
Historical Advisory Board, and Amending Ordinance No. lOS2 As
Amended by Ordinance No. 2497 Pertaining to an Existing Pension
Fund." Finally passed.
~*09- ~ Public Hearing to consider a subdivision of ownership to
condominium form for two detached single-family dwellings on one
Regular Meeting
Alameda City Counci]. 4
Match 17, 2009
site at 3211 and 3215 Fernside Boulevard. The site is located
within an R-2, two family residence zoning district; and
~*09- A7 Resolution No. 14314, "Approving Tentative Parcel Map No.
9787 for the Purpose of Establishing a Subdivision of Ownership to
Condominium Form for Two Detached Single-Family Dwellings on One
Site Located at 3211 & 3215 Fernside Boulevard." Adopted.
CITY MANAGER CQMMUNICATIONS
X09- ~ Receive a Progress Report on financing the City's Other
Post Employment Benefit ~4PEB] obligations.
The Interim Finance Director gave a brief presentation.
Vice Mayor deHaan inquired whether all options outlined at the
February 7, 2009 Financial Management Workshop would be explored.
The Interim Finance Director responded in the affirmative; stated
information is still outstanding on financing aPEB; stated pension
obligation bonds do not apply to debt limit for cities, but there
is a grey nebulous area on whether benefit obligation bonds could
fall under the State constitutional debt limit; more debt scenarios
would be done.
Vice Mayor deHaan stated other cities are going through a similar
situation; inquired whether staff has investigated how other cities
are funding the debt.
The Interim Finance Director responded three or four cities are
reviewing funding pension obligations; stated cities will be
pursuing the matter more aggressively in order to meet liabilities.
Vice Mayor deHaan stated the City will have many examples to review
because cities are mandated to take care of the indebtedness; time
is not on the City's side; options need to be understood.
Councilmember Matarrese requested clarification on the difference
between a benefit and pension obligation bond.
The Interim Finance Director responded the 1079 and 1082 Plans
financing would be pension bonds; stated OPEB obligations are other
post employment benefits such as medical, retirement, and health
care; attorneys are still grey on whether or not an OPEB bond would
fall under the City's limits in terms of debt based on the State
Constitution; the City does not have to decide on the construction
of the financing scenarios until the last minute; currently, the
capital appreciation bond is the most beneficial.
Regular Meeting
Alameda City Council 5
March 17, 2009
Vice Mayor deHaan inquired what is the debt, to which the Interim
Finance Director responded $75.4 million.
X09- 7 Public Hearing to consider Resolution No. 14315, "Amending
Master Fee Resolution No. 12191 to Revise Fees Charged for Appeals
to the Planning Board and to the City Council." Adopted.
The Planning and Building Director gave a brief presentation.
Mayor Johnson inquired whether staff time could be limited; stated
most work should be done by the appellant and applicant.
The Planning and Building Director responded staff discussed
streamlining the process.
Councilmember Matarrese inquired whether the single family
residence cap would be $1,500, to which the Planning and Building
Director responded in the affirmative.
Councilmember Matarrese inquired what would be the cap for
multiple units.
The Planning and Building Official responded a $5,000 cap would be
more appropriate for a duplex or mixed-use project.
Councilmember Matarrese inquired whether multiple unit buildings
would be considered commercial; to which the Planning and Building
Director responded in the affirmative.
Councilmember Tam stated the chart outlining the outcome and types
of appeals shows a 6~ recovery; 94% of the appeals were subsidized;
inquired whether the subsidy came from the General Fund.
The Planning and Building Director responded the subsidy came from
department revenues.
Councilmember Tam inquired whether permit and application fees are
used to offset costs, to which the Planning and Building Director
responded in the affirmative.
Vice Mayor deHaan stated the summary shows that over a third of the
appeals are for major projects and are split down the middle
between applicants and non-applicants; that he is concerned that
the average appeal fee [Fiscal Year 2006-2007 through Fiscal Year
2005-2009] cost $1,759.
Mayor Johnson opened the public portion of the hearing.
Regular Meeting
Alameda City Council 6
March 17, 2009
Pro onents ~In favor of resolution}: Christopher Buckley, Alameda;
Robb Ratto, Park Street Business Association ~PSBA} submitted
handout}.
Opponent Not in favor of resolution}: Ani Dimusheva, Alameda.
There being no further speakers, Mayor Johnson closed the public
portion of the hearing.
Mayor Johnson inquired whether time and material costs are
collected, to which the Planning and Building Director responded in
the negative.
Councilmember Gilmore stated raising the appeal fee would not be
too much of a burden because a lot of appeals involve groups of
people; a hardship would involve one individual, which is rare.
Councilmember Matarrese stated a Councilmember would have the
discretion to Call for Review a decision if an individual was
wronged; inquired whether other cities charge time and materials to
whoever wins the appeal, to which the Planning and Building
Director responded that staff did not come across said situation.
Councilmember Matarrese inquired whether there could be constraints
or a legal down side.
The City Attorney responded that she does not think there would be
any due process issues; stated that she would not like the City to
eat costs.
The Acting City Manager stated collection would be an issue.
Vice Mayor deHaan stated it is important that boards and
commissions hear items at the necessary level; sometimes boards and
commissions are not allowed to review the entire project.
Mayor Johnson stated the process needs to be streamlined to ensure
that two different boards are not doing the same job; an applicant
could be faced with two different appeals.
Councilmember Gilmore stated time and materials were charged from
2003 to 2006; inquired whether collection was successful; that she
is not sure whether she wants to go back to charging time and
materials if collection was a hassle or unsuccessful.
The Planning and Building Director stated there was one collection
problem when she first started.
Regular Meeting
Alameda City Council ~
March 17, 20Q9
Councilmember Gilmore inquired whether there would be a problem in
collecting time and material fees, to which the Planning and
Building Director responded in the negative.
Mayor Johnson stated that she has a hard time understanding why
additional staff time would be needed if staff already made a
recommendation.
The Planning and Building Director responded staff tries to get the
appellant and applicant together to reach an agreement.
Councilmember Gilmore stated sometimes the appellant and applicant
do not see eye to eye.
Mayor Johnson stated there should not be any reason for a change in
the staff recommendation; the process is prolonged by getting
overly involved in the appeal.
The Planning and Building Director stated that she would be glad to
receive some policy direction; staff makes every effort to try and
resolve any issues.
Mayor Johnson stated people might take the first process more
seriously if the appeal is not dragged out for six months by trying
to work with everyone.
Vice Mayor deHaan stated sometimes staff changes its
recommendation.
Mayor Johnson stated the Fernside Bioulevard case was handled
badly.
Vice Mayor deHaan stated there have been times when the Planning
Board was not a full body and could not come to a final conclusion
so the matter was brought to Council; the matter should have been
handled by the Planning Board; other cities charge a flat rate,
which is better; that he is bothered that an individual is only
able to appeal if they live within a 30o foot radius of the
project .
Mayor Johnson stated how appeals are handled needs to change;
appeals are delayed and staff time is wasted.
Councilmember Matarrese stated some of the costs involve staff
bringing the parties together to reach an agreement; inquired what
said cost would be versus providing information in a public
information request.
Regular Meeting
Alameda City Council ~
March 17, 2aD9
The Planning and Building Director responded staff does not keep
track of public information request costs.
Councilmember Matarrese stated the meter starts to run when an
appeal is filed; inquired whether most of the time is spent on
staff trying to get parties together.
The Planning and Building Director responded that the matter would
depend on the case; stated administrative staff needs to prepare
notices, mailing, etc.
Mayor Johnson stated the appellant should pay administrative costs.
Councilmember Matarrese stated if the appeal is granted, an
applicant or the City eats the costs; an appellant should be
responsible for costs if the appeal does not have grounds and is
not granted.
Councilmember Tam stated that she does not agree; that she is
trying to balance some of the issues; the next agenda item
addresses cost recovery for emergency services for false alarms;
full recovery costs would not be charged for inspections; cities
provide certain services, which is part of the cost of doing
business; it is appropriate to look at a fee structure that would
increase the flat rate beyond $100 but not to completely recover
the cost of time and materials; that she would favor a hybrid
approach similar to San Leandro .and the Park Street Business
Association proposed in terms of time and materials; San Leandro
charges $278 per applicant, in addition to time and materials for
direct costs.
Mayor Johnson stated charging more up front is good; actual costs,
such as mailings, should be recovered; a delicate balance is needed
between not making appeals too expensive versus having a system
that allows frivolous appeals.
Vice Mayor deHaan stated an applicant pays more than a non-
applicant in San Leandro and Hayward; he would prefer a flat rate
of $340 for both sides .
Mayor Johnson stated that she likes the idea of a flat fee if
someone wins and a reasonable cap if someone loses; that she does
not see the reason for spending more than a superficial amount of
staff time on a residential appeal; people need to know that they
are on their own once a board or commission makes a decision.
Councilmember Gilmore stated there may be an instance where someone
Regular Meeting
Alameda City Council 9
March 17, 2009
wants to add something to a residential property and design review
is approved by staff; neighbors might not like the project for
various reasons that were not addressed at the design review level
because the Code is only checked; the matter could become a whole
other issue such as blocking sun light.
Mayor Johnson stated the appeal process has become too lax; a
better process needs to be developed.
Councilmember Tam stated twenty-two appeals have been filed within
two years; the process does not seem to be abused.
Mayor Johnson stated the Fernside Boulevard process took a year and
a half; there was an amendment to the appeal months after the
original appeal was filed; the process needs to be better defined;
trying to accommodate everyone ends up being unfair.
Vice Mayor deHaan stated incidentals could be cleaned up before
coming to Council; charging $10,000 for an appeal is a disgrace;
an appeal process is democracy in motion and is right for the
community; placing all appeals into one pot does not work.
Mayor Johnson concurred that commercial and residential should have
different fees; all commercial should not be lumped into the same
category.
Councilmember Gilmore stated that she does not like tying the fee
to whether someone wins or loses; proposed a $350 residential flat
fee with time and materials cap of $500, for a total of $850; a
commercial flat fee of $350 with time and materials cap of $2,540,
for a total of $2,850; inquired whether individual hardship could
be considered.
Mayor Johnson proposed lowering the residential flat fee to $200 or
$250 with a time and materials cap of $500; concurred with
Councilmember Gilmore's proposed commercial fee structure.
Councilmember Matarrese moved adoption of the resolution with the
following amended fees: Residential: $250 flat fee with time and
materials cap of $500; Commercial: $350 flat fee with time and
materials cap of $2,500.
The Planning and Building Director inquired whether a single family
or duplex would be considered residential, to which Councilmember
Matarrese responded in the affirmative.
Mayor Johnson requested that policy recommendations be brought back
regarding the appeal process.
Regular Meeting
Alameda City Council 1 0
March 17, 2009
Councilmember Gilmore requested that a report be provided regarding
how fees are working out within six months to a year.
The Planning and Building Director inquired whether the report
could be provided within a year, to which Councilmember Gilmore
responded in the affirmative.
Councilmember Tam inquired whether staff would still need to use
some other fees to off set costs if the proposed fees do not
recover costs, to which the Planning and Building Director
responded in the affirmative.
Mayor Johnson suggested that staff time be limited.
The Planning and Building Director stated that she welcomes said
direction; the process would be streamlined; boards and commissions
would be informed.
Mayor Johnson stated parties need to be informed also; parties need
to try and mediate the matter before coming to a board or
commission.
Councilmember Gilmore seconded the motion.
Under discussion, Vice Mayor deHaan stated the track record shows
that one-third of the appeals were withdrawn; that he would support
a flat rate.
Mayor Johnson requested that Council be notified earlier if there
are issues.
On the call for the question, the motion carried by the following
voice vote: Ayes: Councilmembers Gilmore, Matarrese, Tam, and Mayor
Johnson - 4. Noes: Vice Mayor deHaan - 1.
X09- 7 Public Hearing to consider introduction of an Ordinance
Amending the Alameda Municipal Code by Adding Section 24-10 Cost
Recovery for Recurring Calls for Service to Respond to and/or Abate
Properties Due to Specified Conditions or Owner Neglect? to Chapter
xxIV Public Health}. Introduced; and
X09- A7 Resolution No. 14316, "Amending Master Fee Resolution No.
12191 to Revise and Add Various New Fees." Adopted.
The Fire Marshall gave brief presentation.
Mayor Johnson inquired what would be considered structural leakage.
Reguiar Meeting
Alameda City Council 1 1
March ~7, 2009
The Fire Marshall responded a cracked foundation or accumulated
basement water.
Mayor Johnson stated "water intrusion" would be a better term.
The City Attorney responded some types of water intrusion have
nothing to do with owner neglect and would be the City's
respondsibility.
Mayor Johnson stated said circumstance would be an emergency and
would not be charaged.
The City Attorney stated the ordinance should not include anything
where the City's action could potentially be considered inverse
condemnation.
Mayor Johnson inquired why basement flooding would be limited to
malfunctioing sump pumps.
The City Attorney responded the list [24-10.3 Liability for
emergency response costs] represents reoccurring calls; stated the
home owner neglect standard is as the catch all.
Mayor Johnson inquired whether a leaking washing machine at a
business would be covered, to which the Fire Marshall responded in
the affirmative.
The City Attorney responded said situation would be covered under
the property owner neglect clause.
Mayor Johnson inquired whether businesses are required to have a
sign stating to call a specific number in case of an emergency if
there is no manager on site.
The Fire Marshall responded that he is not aware of any
requirement, but he has seen said signs in laundromats.
Mayor Johnson inquired whether the requirement could be done by
ordinance.
The City Attorney responded enforcement would be difficult; stated
the requirement could be a condition of approval for a new
business.
The Fire Marshall stated the requirement could be addressed in the
Fire Code which requires an emergency plan.
Regular Meeting
Alameda City Council 1 2
March 17, 2009
Vice Mayor deHaan stated a merchant could experience flooding due
to an adjacent property; inquired how charges would be billed.
The City Attorney responded the property owner creating the public
nuisance would be charged if proof could be established.
Councilmember Matarrese questioned whether people should be calling
911 for non-life threatening situations.
Mayor Johnson stated an education process is needed for what is and
is not an appropriate call.
The Fire Marshall stated the plan is to place articles in the
newspaper in addition to business district outreach.
Mayor Johnson stated a lot of fire calls are a result of smoking
food on stoves.
Councilmember Matarrese stated a fire is afire; people panick and
throw water on oil; serious injuries can occur; the Fire Department
should not be called for a flooding issue unless someone is in
physical danger.
Councilmember Tam stated a neighbor thought there was some
hazardous materials floating in the lagoon; the neighbor called
911; although the floating material turned out to be pollen, she
would not like to create a situation where people are not
comfortable calling for necessary help; the Fire Department has two
trucks with ladders; there is only one high rise building in
Alameda.
The Fire Marshall stated Alameda has many multi-story buildings; a
high rise is considered any building over seventy five feet tall.
Mayor Johnson stated City Hall is fifty-five feet tall.
The Fire Marshall stated the longest ladder carried by aerial
trucks is thirty-five feet; the seventy-five foot ladder is needed
for multi-story buildings.
Councilmember Tam stated Ruby Bridges Elementary School had a
couple of [false] fire alarms; the Fire Department responded; Ruby
Bridges is now being charged.
Mayor Johnson stated that she does not think that the School
District should be charged; the School District needs to fix the
alarms; School District buildings are public buildings and need to
be protected; that she would be fine with exempting the School
Regular Meeting
Alameda City Council 1 3
March 17, 2009
District but alarms need to be kept in good working order.
The Fire Marshall stated the Schoal District's maintenance division
was not aware of all of the false alarms; some of the fees have
been waived for Ruby Bridges; other schools have chronic alarm
problems; the State mandates fire inspections for school districts;
an invoice is sent and is charged against lease payments that the
City makes to the School District; the City is able to recoup costs
for repeated false alarms; false alarm fees are much less expensive
than reoccurring calls for service.
Mayor Johnson stated the City needs to inform the School District
that there would not be a charge if alarms are maintained and there
is communication with staff.
The City Attorney stated the false alarm ordinance would need to be
amended to exempt the School District and is not on the agenda
tonight.
Mayor Johnson stated tonight's agenda is dealing with the use of
emergency services in non-emergency situations; repeated false
alarms from the School District are not emergency situations.
The Fire Marshall stated that staff is working with the School
District.
Councilmember Tam inquired whether the hospital could be included
[ in the exempt ion] .
Vice Mayor deHaan stated senior citizens have certain needs;
inquired who is the tie breaker in the decision making, to which
the Fire Marshall responded he is.
Vice Mayor deHaan stated individual concerns need to be heard.
Mayor Johnson stated the education process is important; staff
needs to go to Mastick Senior Center and business and homeowner
associations; a lot of residential calls come from apartment
structures; plumbing leaks should be directed to the building
manager instead of the Fire Department.
Vice Mayor deHaan stated education is important; part of the
training needs to address how to turn off the water.
Mayor Johnson people need to be informed that a plumber should be
called if they chose not to learn how to turn off their water;
people need to know what type of situations are non-emergency and
when calling 911 is a necessity.
Regular Meeting
Alameda City Council 1 4
March 17, 2009
Councilmember Matarrese moved introduction of the ordinance and
adoption of the resolution.
Vice Mayor deHaan seconded the motion, which carried by the
following voice vote: Ayes: Councilmembers deHaan, Gilmore,
Matarrese, and Mayor Johnson - 4. Absent: Councilmember Tam - 1.
ORAL COMMUNICATIONS, NON-AGENDA
None.
COUNCIL REFERRALS
None.
COUNCIL COMMUNICATIONS
(09- 7 Consideration of Mayor's appointments to the Rent Review
Advisory Committee.
Mayor Johnson appointed Henry Hernandez and Thuy T. Nguyen.
ADJOURNMENT
There being no further business, Mayor Johnson adjourned the
meeting at 10:16 p.m.
Respectfully submitted,
Lora Weisiger
City Clerk
The agenda for this meeting was posted in accordance with the Brown
Act.
Regular Meeting
Alameda City Council. 15
March 17, 2009
MINUTES OF THE SPECIAL CITY COUNCIL MEETING
TUESDAY- -MARCH 24, 2009- -6:30 P.M.
Mayor Johnson convened the Special Meeting at 6:30 p.m.
Roll Call - Present: Councilmembers deHaan, Gilmore,
Matarrese, Tam and Mayor Johnson - 5.
Note: Councilmember Matarrese was present via
teleconference from Sheraton Four Points Santiago,
Santa Magdelena 111, Santiago de Chile, Chile
Absent: None.
The Special Meeting was adjourned to Closed Session to consider:
X09- } Public Employment; Title: City Manager
Following the Closed Session, the Special Meeting was reconvened
and Mayor Johnson announced that the City Council met to discuss
the appointment of an Interim City Manager and gave direction to a
subcommittee of the Council to negotiate a potential employment
agreement with a candidate.
Adjournment
There being no further business, Mayor Johnson adjourned the
Special Meeting at 5:30 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
Match 24, 2009
CITY ~ F ALAM E DA
Memorandum
To; Honorable Mayor and
Members of the City Council
From: Ann Marie Gallant
interim Finance Director
Date; April 2, 2009
Re: List of Warrants for Ratification
This is to certify that the claims listed on the attached check register and shown 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
218158 - 218695
EFT 661
EFT 662
EFT 663
EFT fi64
EFT 665
EFT 666
Void Checks:
2182D3
218238
218330
218398
2184fi8
21845fi
218480
G RA N D TOTAL
Respectfully submitted,
Interim Finance Director
Council Warrants 041071D9
Amount
$3,569,791.fi9
$33,573.37
$19,886.78
$7,993.50
$38,430.fi7
$12, 321.37
$183,fi20.00
~$4D.DD~
~$70.48~
~$86.43~
~$1,953.24~
~$372.50~
~$1,314.47~
~$38.00~
$3,861,742.66
BILLS #4-B
4~ri20o9
CITY aF ALAMEDA
Memorandum
To: Honorable Mayor and
Members of the City Council
From: David Brandt
Acting City Manager
Date: April 7, 2009
Re: Accept the Work of Chrisp Company for Traffic Striping, Phase 6, No.
P.UV.10-O1-31
BACKGROUND
Cn July 15, 2008, the City Council adopted plans and specifiications, and authorised a
call for bids for traffic striping, phase 6, No. P.W. 10-01-31. Gn August 19, 2008, the
City Council awarded a contract in the amount of $156,183, including contingencies, to
Chrisp Company forthis work.
DISCUSSION
The project has been completed in accordance with the plans and specifications, and is
acceptable to the Public Works Department. The final project cost, including extra work
orders, is $145,221.
FINANCIAL IMPACT
Funds for this project are budgeted in the Capital Improvement Program Project No.
43044901}, with monies allocated from Measure B.
MUNICIPAL CODEIP~LICY DOCUMENT CRGSS REFERENCE
This action does not affect the Alameda Municipal Code.
REC4MMENDATI~N
Accept the work of Chrisp Company for traffic striping, phase 5, No, P.W.10-O1-31.
Res ctf y submitted,
G~ G,~/'
Matthew T. Naclerio
Public Works Director
MTN;gc
cc: Watchdog Committee
Approved as to funds and account
Ann Marie allant
Interim F' nce Director
City Council
Agenda Item #4-C
04-O1-~9
CITY ~F ALAMEDA
Memorandum
To: Honorable Mayor and
Members of the City Council
From: David Brandt
Acting City Manager
Date: April 1, 2009
Re: Adopt a Resolution Authorizing the Issuance of City of Alameda Taxable
Retirement Funding Bonds; Authorizing the Execution and Delivery of an
Indenture and a Trust Agreement; and Authorizing Commencement of a
Validation Action Relating Thereto and Approving Other Matters Relating
Thereto.
BACKGROUND
At the October 21, 2048 City Council meeting, a staff report, presented to the City
Council, discussed various 'seed capital' options for pre-funding the City's Other Post
Employment Benefit ~OPEB} obligations. In accordance with Government Accounting
Standards Board ~GASB} 45, the present value of this unfunded, accrued actuarial
liability ~UAAL} must be reported each year in the City's audit. At January 2409, the
present value of this UAAL was projected to be $14.5 million.
The October staff report outlined several cash options available to the City, whereby the
cash would be deposited into an OPEB'savings' account. However, these cash options,
including interest earned, did not contribute in any substantial way to reducing this
UAAL liability in the near term. Thus, staff was requested to analyze any debt scenarios
that would increase immediate cash deposits into this OPEB account, and thereby
reduce the OPEB UAAL at an accelerated pace.
During the Financial Management vlJorkshop held February 1, 2009, the Interim Finance
Director presented a financing scenario which leveraged an existing City liability -its
Legacy Plans 1019 and 1082 -and utilized this leverage to generate cash basset} to
reduce the UAAL at a more accelerated rate.
The City Council consensus was that staff should pursue the debt scenario as a method
to accelerate the OPEB savings deposits, and to pursue an implementation schedule
which included validation of the transaction. This City Council Resolution initiates the
first action in this validation process.
City Council
Report Re:
Agenda item #4-D
~4-D1.89
Honorable Mayor and
Members of the City Council
DISCUSSl4N
April 1, 2009
Page 2 of 2
During the past 30 days, the Interim Finance Director has assembled a financing team
with the requisite skills and experience to manage this transaction in the public debt
market -bath retail and institutional. The City Attorney has selected a bond counsel
familiar with validation proceedings for pension obligation bonds. This team has
concurred on a proposed schedule for implementation of this debt financing which
includes a validation action to test the constitutionality of this debt issue.
A validation action is, by definition, a special procedure under California law which
allows an issuer City of Alameda} to secure a ruling on the legality of a bond financing.
The issuer files a lawsuit in State Court naming all interested parties as defendants. In
a sense, the City sues itself. Notice of the lawsuit is given by newspaper publication
and by posting other public notices. If no interested person comes forward to challenge
the financing, the issuer may ask the court for a judgment declaring that the financing is
valid. This process requires 45 - 90 days, depending upon the court calendar. once
the court issues a validation judgment, and the 30-day appeal period expires, the
financing cannot later be challenged in court.
F[NANCIAL IMPACT
All fees for financing team members are negotiated at the time of financing, and paid as
cost of issuance from bond proceeds, as is customary in debt transactions. There is no
financial impact to any City fund as a result of this action. Nominal court filing fees bless
than $~ ,004} may be required; however, these funds are available in the Finance
Department budget in FYg8-g9 due to projected savings during the fourth fiscal quarter.
RECCMMENDATI~N
Adopt a Resolution authorizing the issuance of City of Alameda Taxable Retirement
Funding Bonds; authorizing the execution and delivery of an indenture and a trust
agreement; and authorizing commencement of a validation action relating thereto and
approving other matters relating thereto.
Respectfully submitted,
AMG:dI
CITY GF ALAMEDA RESOLUTION NO.
~ RESOLUTION OF THE CITY COUNCIL OF THE CITY GF ALAMEDA
a` AUTHORIZING THE ISSUANCE OF CITY GF ALAMEDA TAXABLE
~ PENSION OBLIGATEON BGNDS AUTHORIZING THE EXECUTION AND
a
~' ~' DELIVERY OF AN INDENTURE AND AUTHORIZING
~ ~ COMMENCEMENT OF A VALIDATION ACTION RELATING THER
~ ~ ETO
~ ~ AND APPROVING OTHER MATTERS RELATING THERETO
~ ,r WHEREAS the Cit of Alameda the "Cit " rovides retirem
y ~ y } p ent benefits
~ "Retirement Benefits" to ell ible former em to ees ur '
~ } g p y p suant to its City of
Alameda Police and Fire Retirement System Pension Plan 1079 ~"Plan 1079"},
adopted by the City Council pursuant to Ordinance No. 1079, adopted on
November 4, 1952, as amended, and its City of Alameda Police and Fire
Retirement System Pension Plan 1082 ~"Plan 1082" and, with Plan 1079, the
"Plans"}, Ordinance No. 1082, adopted by the City Council pursuant to Ordinance
No. 1082, adopted on February 17,1953, as amended, and pursuant to the labor
contracts between the City and the affected employees collectively, the "Labor
Contracts"};
WHEREAS, as of January 1, 2009, based upon the actuarial report of
Bartel Associates the "Actuary"}, the City had an unfunded accrued actuarial
liability for the Retirement Benefits which the City is obligated to pay pursuant to
the Labor Contracts the "Unfunded Accrued Actuarial Liability"} in the amount of
$22,273,000;
WHEREAS, the Unfunded Accrued Actuarial Liability is an indebtedness
of the City evidenced by the Labor Contracts;
WHEREAS, the City is authorized pursuant to Articles 10 and 11
commencing with section 53570} ofi Chapter 3 of Division 2 of Title 5 of the
California Government Code to issue refunding bonds for the purpose of
refunding any evidence of indebtedness of the City;
WHEREAS, for the purposes of refunding all of the Unfunded Accrued
Actuarial Liability, the City desires to issue its "Taxable Pension Obligation
Bonds" the "Bonds"} in an aggregate principal amount not exceeding the sum of
~a} the Unfunded Accrued Actuarial Liability as confirmed by the Actuary as of
the date of issuance of the Bonds, plus fib} the costs of issuance of the Bonds
including any underwriter's discount or placement agent's fee}, plus ~c} any
original issue discount on the Bonds;
WHEREAS, in order to provide for the authentication and delivery of the
Bonds, to establish and declare the terms and conditions upon which the Bonds
are to be issued and secured, to provide a mechanism for the investment of the
Resolution 4•D CC
04.01.09
proceeds of the Bonds applied to the refunding of the Unfunded Accrued
Actuarial Liability and to provide a mechanism or the disbursement of such
amounts as required to pay the Retirement Benefits, the City proposes to enter
into an indenture with Union Bank, N.A., as trustee such indenture, in the form
presented to this meeting, with such changes, insertions and omissions as are
made pursuant to this Resolution, being referred to herein as the "Indenture"};
WHEREAS, the City has determined that securing the timely payment of
the principal of and interest on the Bonds by obtaining a bond insurance policy
with respect thereto could be economically advantageous tv the City;
WHEREAS, there has been prepared and submitted to this meeting a
form of the Indenture; and
WHEREAS, the City has full legal right, power and authority under the
Constitution and the laws of the State of California to enter into the transactions
hereinafter authorized;
NSW, THEREFORE, BE IT RESOLVED, as follows:
Section ~. The foregoing recitals are true and correct and the City Council
hereby so finds and determines.
Section 2. Subject to the provisions of Section 2 hereof, the issuance of
the Bonds, in an aggregate principal amount of not to exceed the sum of ~a} the
Unfunded Accrued Actuarial Liability as confirmed by the Actuary as of the date
of issuance of the Bonds, plus fib} the costs of issuance of the Bonds ~inc[uding
any underwriter's discount or placement agent's fee}, plus ~c} any original issue
discount on the Bands, and subject to the limitations specified in, the Indenture,
is hereby authorized and approved. The Bonds shall be dated, sha[1 bear interest
at the rates, shall mature on the dates, shall be subject to call and redemption,
shall be issued in the forms and shall be as otherwise provided in the Indenture,
as the same shall be completed as provided in this Resolution.
Section 3. The Indenture, in substantially the form submitted to this
meeting and made a part hereof as though set forth herein, be and the same is
hereby approved. Each of the Mayor, and such other member of the City Council
as the Mayor may designate, the City Treasurer, the City Manager, any Assistant
City Manager, the Finance Director, and such other officer or employee of the
City as the City Manager may designate the "Authorized officers"}, is hereby
authorized, and any one of the Authorized officers is hereby directed, for and on
behalf of the City, to execute and deliver the Indenture in the form presented to
this meeting, with such changes, insertions and omissions as may be approved
by the Authorized officer executing the same on behalf of the City, said
execution being conclusive evidence of such approval; provi~e~, however, that
~a} the aggregate principal amount of the Bonds shall not exceed the surn of ~i}
the Unfunded Accrued Actuarial Liability as confirmed by the Actuary as of the
date of issuance of the Bonds, plus iii} the costs of issuance of the Bonds
including any underwriter's discount or placement agent's fee}, plus viii} any
original issue discount on the Bonds, fib} the interest rate on the Bonds shall not
exceed the maximum rate permitted by law, ~c} the true interest cost of the
Bonds shall not exceed 8°/0, and ~d} the Bands shall mature not later than 32
years from the date of issuance thereof,
Section 4. The Authorized officers are each hereby authorized and
directed to apply for municipal bond insurance for the Bonds and to obtain such
insurance if the present value cost of such insurance is less than the present
value of the estimated interest savings with respect to the Bonds. Each of the
Authorized officers is hereby authorized, and any one of the Authorized Officers
is hereby directed, for and on behalf of the City, to execute and deliver a contract
for such insurance if such contract is deemed by the Authorized Off cer executing
the same to be in the best interests of the City, such determination to be
conclusively evidenced by such Authorized officer's execution and delivery of
such contract.
Section 5. The Authorized officers are each hereby authorized and
directed, for and in the name of the City, to commence and pursue a validation
action under Section 860 of the California Code of Civil Procedure to determine
the legality and validity of the Unfunded Accrued Actuarial Liability, the Bonds
and the Indenture, and the other documents and proceedings authorized by this
Resolution. Quint & Thimmig LLP is hereby authorized to commence and pursue
such validation action on behalf of the City.
Section 6. The officers and employees of the City are hereby authorized
and directed, jointly and severally, to do any and all things which they may deem
necessary or advisable in order to consummate the transactions herein
authorized and othen~vise to carry out, give effect to and comply with the terms
and intent of this Resolution.
Section 1. All actions heretofore taken by the officers, employees and
agents of the City with respect to the transactions herein authorized are hereby
approved, confirmed and ratified.
Section 8. This Resolution shall take effect upon its adoption by this City
Council.
*~~**
Quint ~ Thimmig LLP
INDENTURE
Dated as of _ __ „ ._.~ 2009
by and between the
CITY DF ALAMEDA
and
UNION BANK, N.A., as Trustee
City of Alameda
2049 Taxable Pension Obligation Bonds
03/19/09
03/31/09
01019.16
TABLE OF CONTENTS
ARTICLE I
DEFINITIONS; RULES OF CONSTRUCTION
Section 1.01. Definitions ..............................................................................................................................................3
Section 1.02. Authorization .........................................................................................................................................9
Section 1.03. Interpretation .........................................................................................................................................9
ARTICLE II
AUTHORIZATION AND TERMS OF BONDS
Section 2.01. Authorization and Purpose of Bonds ............................................................................................... 10
Section 2.02. Terms of the Bands ....................................................................................... 10
Section 2.03. Redemption of Bonds ......................................................................................................................... 11
Section 2.04. Selection of Bonds for Redemption .................................................................................................. 12
Section 2.05. Notice of Redemption ......................................................................................................................... 12
Section 2.06. Partial Redemption of Bond .............................................................................................................. 13
Section 2.07. Purchase of Bonds ............................................................................................................................... 13
Section 2.DS. Forms of Bonds .................................................................................................................................... 14
Section 2.09. Execution .............................................................................................................................................. 14
Section 2.1~. Transfer and Exchange ....................................................................................................................... 14
Section 2.11. Bonds Mutilated, Lost, Destroyed or Stolen ................................................................................... 14
Section 2.12. Payment ................................................................................................................................................ 15
Section 2.13. Execution of Documents and Praof of Ownership ........................................................................ 15
Section 2.14. Registration Books .............................................................................................................................. 16
Section 2.15. CUSIP Numbers and ISIN Numbers ................................................................................................ 16
Section 2.16. Use of Depository......... ............................................................................ ......... 16
ARTICLE III.
DEPOSIT AND APPLICATION OF PROCEEDS OF BONDS
Section 3.01. Issuance of Bonds ................................................................................................................................18
Section 3.02. Deposit and Application of Proceeds ...............................................................................................18
Section 3.03. Costs of Issuance Fund .......................................................................................................................18
Section 3.03. Retirement Benefits Fund ...................................................................................................................18
Section 3.05. Validity of Bonds .................................................................................................................................19
ARTICLE IV
SECURITY FOR THE BONDS; FLOVII OF FUNDS; INVESTMENTS
Section 4.01. Security of Bonds; Equal Security .....................................................................................................19
Section 4.02. Deposits to Pay Debt Service .............................................................................................................19
Section 4.03. Debt Service Fund ...............................................................................................................................2Q
Section 4.04. Investment of Moneys in Funds ........................................................................................................20
ARTICLE V
OTHER COVENANTS OF THE CITY
Section 5.01. Punctual Payment ...............................................................................................................................21
Section 5.02. Budget and Appropriation of Debt Service .....................................................................................21
Section 5.03. Extension of Payment of Bonds ........................................................................................................21
Section 5.04. Books and Accounts; Financial Statements; Additional Information .........................................21
Section 5.05. Continuing Disclosure ........................................................................................................................21
Section 5.06. Protection of Security and Rights of Owners ..................................................................................22
Section 5.07. Further Assurances .............................................................................................................................22
-1-
ARTICLE VI
THE TRUSTEE
Section b.01. Duties, Immunities and Liabilities of Trustee .................................................................................23
Section b.02. Merger or Consolidation ....................................................................................................................24
Section 6.03. Liability of Trustee ~ ......24
........................................................................................................................
Section b.04. Right to Rely on Documents .............................................................................................................. 2b
Section 6.05. Preservation and Inspection of Documents ....................................................................................2b
Section 6.06. Compensation and Indemnification .................................................................................................27
Section 6.07. Accounting Records and Financial Statements ...............................................................................27
ARTICLE VII
MODIFICATIQN QR AMENDMENT ~F THIS INDENTURE
Section 7.01. Amendments Permitted .....................................................................................................................28
Section 7.02. Effect of Supplemental Agreement ...................................................................................................29
Section 7.03. Endorsement or Replacement of Bonds After Amendment .........................................................29
Section 7.04. Amendment by Mutual Consent ......................................................................................................29
Section 7.05. Trustee's Reliance ................................................................................................................................29
ARTICLE VIII
EVENTS OF DEFAULT AND REMEDIES
Section 8.01. Events of Default .................................................................................................................................30
Section 8.02. Remedies .................
.............................................................................................................................30
Section 8.03. Application of Funds Upon Event of Default .................................................................................31
Section 8.04. Power of Trustee to Control Proceedings ........................................................................................31
Section 8.05. Limitation on Qwners' Right to Sue .................................................................................................31
ection 8.06. Non-waiver ..........................................................................................................................................32
Section 8.07. Actions byTrustee asAttorney-in-Fact ...........................................................................................33
Section 8.08. Remedies Not Exclusive .....................................................................................................................33
ARTICLE IX
MISCELLANEQUS
Section 9.01. Benefits Limited to Parties .................................................................................................................34
Section 9.02. Successor is Deemed Included in All References to Predecessor ................................................34
Section 9.03. Defeasance of Bonds ...........................................................................................................................34
Section 9.04. Execution of Documents and Proof of Qwnership by Qwners ....................................................35
Section 9.05. Disqualified Bonds ..............................................................................................................................35
Section 9.Ob. VWaiver of Personal Liability ..............................................................................................................35
Section 9.07. Destruction of Canceled Bonds .........................................................................................................35
Section 9.08. Notices ..................................................................................................................................................35
Section 9.09. Partial Invalidity ..................................................................................................................................3b
Section 9.10. Unclaimed Moneys .............................................................................................................................3b
Section 9.11. Execution in Counterparts .................................................................................................................3b
Section 9.12. Governing Law ....................................................................................................................................36
EXHIBIT A: FARM OF CURRENT INTEREST BAND
EXHIBIT B: FARM 4F THE CAPITAL APPRECIATION BAND
EXHIBIT C: TABLE QF ACCRETED VALUES OF THE CAPITAL APPRECIATION BANDS
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INDENTURE 4F TRUST
THIS INDENTURE this "Indenture"}, dated as of , 2009, is by and between
the CITY ~F ALAMEDA, a municipal corporation and chartered city organized and existing
under the laws of the State of California the "City"~, and UNION BANK, N.A., a national
banking association organized and existing under the laws of the United States of America, as
Trustee the "Trustee"}.
BACKGRQUND:
WHEREAS, the City provides retirement benefits ~"Retirement Benefits"} to eligible
former employees pursuant to its City of Alameda Police and Fire Retirement System Pension
Plans 1079 ~"Plan 1079"} and 1082 ~"Plan 1082"}, adopted by the City Council pursuant to
ordinance No. 1079, adopted on , as amended, and Ordinance No.1O82, adopted on
as amended, and pursuant to the labor contracts between the City and the affected
employees collectively, the "Labor Contracts"};
WHEREAS, as of January 1, 2009, based upon the actuarial report of Bartel Associates
the "Actuary"}, the City had an unfunded accrued actuarial liability for the Retirement Benefits
which the City is obligated to pay pursuant to the Labor Contracts the "Unfunded Accrued
Actuarial Liability"} in the amount of $22,273,000;
WHEREAS, the Unfunded Accrued Actuarial Liability is an indebtedness of the City
evidenced by the Labor Contracts;
WHEREAS, the City is authorized pursuant to Articles 10 and 11 commencing with
section 53570} of Chapter 3 of Division 2 of Title 5 of the California Government Code to issue
refunding bonds f or the purpose of refunding any evidence of indebtedness of the City;
WHEREAS, for the purposes of refunding all of the Unfunded Accrued Actuarial
Liability, the City desires to issue its "2409 Taxable Pension Obligation Bonds" the "Bonds"} in
an aggregate principal amount not exceeding the sum of ~a} the Unfunded Accrued Actuarial
Liability as confirmed by the Actuary as of the date of issuance of the Bonds, plus fib} the costs
of issuance of the Bonds including any underwriter's discount or placement agent's fee), plus
~c} any original issue discount on the Bonds;
WHEREAS, the principal of and interest on the Bonds are payable from any source of
legally available funds of the City, including amounts on deposit in the General Fund of the
City;
WHEREAS, the Bonds and any Additional Bonds have been determined to be the legal,
valid and binding obligations of the City by judgment of the Alameda Superior Court rendered
on , 2409 in City of Alameda v. Art Persons interested, etc., Case No. ,_;
WHEREAS, in order to provide fox the execution, authentication and delivery of the
Bonds, to establish and declare the terms and conditions upon which the Bonds are to be issued
and secured and to secure the payment of the principal or accreted value thereof, premium, if
any, and interest thereon, the City has authorized the execution and delivery of this Indenture;
WHEREAS, the City has determined that all acts and proceedings required by law
necessary to make the Bonds, when executed by the City and authenticated and delivered by
the Trustee, the valid and binding obligations of the City, and to constitute this Indenture a
valid and binding agreement for the uses and purposes herein set forth in accordance with its
terms, have been done and taken, and the execution and delivery of this Indenture has been in
all respects duly authorized; and
WHEREAS, all acts, conditions and things required by law to exist, to have happened
and to have been performed precedent to and in connection with the execution and entering
into of this Indenture do exist, have happened and have been performed in regular and due
time, form and manner as required by law, and the parties hereto are now duly authorized to
execute and enter into this Indenture;
NSW, THEREFORE, THIS INDENTURE wITNESSETH, that in order to secure the
payment of the principal and accreted value of, and premium, if any, and interest on all Bonds
at any time issued and outstanding under this Indenture, according to their tenor, and to secure
the performance and observance of all the covenants and conditions therein and herein set
forth, and to declare the terms and conditions upon and subject to which the Bonds are to be
issued and received, and in consideration of the premises and of the mutual covenants herein
contained and of the purchase and acceptance of the Bonds by the owners thereof, and f or other
valuable consideration, the receipt whereof is hereby acknowledged, the pity does hereby
covenant and agree with the Trustee, for the benefit of the respective owners from time to time
of the Bonds; as follows:
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ARTICLE I
DEFINITIONS; RULES OF CONSTRUCTION
Section 1.41. Definitions. Unless the context clearly otherwise requires or unless
otherwise defined herein, when used in this Indenture the following terms have the meanings
set forth below.
"Accreted Interest" means with respect to any Capital Appreciation Bond, as of the date
of calculation, the interest accrued thereon, compounded semiannually from the Closing Date,
at the interest rate applicable to such Capital Appreciation Bond, on each 1 and
1, commencing ,assuming in any year that such Accreted Interest
increases in equal daily amounts on the basis of a year of three hundred sixty X360} days
composed of twelve X12} months of thirty X30}days each,
"Accreted Value" means, on any date of calculation, with respect to a Capital
Appreciation Bond, the Denominational Amount thereof plus the Accreted Interest represented
thereby.
"Authorized Denominations" means ~i} with respect to any Current Interest Bond, $5,004 or
any integral multiple thereof, and, iii} with respect to any Capital Appreciation Bond, the
Denominational Amount per $5,000 of Accreted Value, or any integral multiple thereof.
"Authorizing Resolution" means Resolution No. ,adopted by the City Council
of the City on April,., 2009.
"Beneficial owner" means the beneficial owner of each such Bond, determined under the
rules of DTC.
"Bond Counsel" means ~a} Quint & Thimmig LLP, or fib} any other attorney or firm of
attorneys appointed by or acceptable to the City of nationally-recognized experience in the
issuance of obligations issued by public agencies.
"Bonds" means, collectively, the $ City of Alameda 2009 Taxable Pension
gbligation Bonds, issued pursuant to Section 2.01, which are Current Interest Bonds and the
$ the $ City of Alameda 2009 Taxable Pension Obligation Bonds, issued
pursuant to Section 2.01, which are Capital Appreciation Bonds.
"Business Day" means a day of the year bother than a Saturday or Sunday} on which
banks in California are not required or permitted to be closed, and on which the New York
Stock Exchange is open.
"Capital Appreciation Bond" means a Bond, the interest component of which is
compounded semiannually on each 1 and 1, commencing
and which does not pay interest on a current basis.
"Certificate of the City" means a certificate in writing signed by the Mayor, the City
Manager, any Assistant City Manager or the Finance Director for such other person performing
the functions of chief financial officer of the City}, or any other officer of the City duly
authorized by the City f or that purpose.
"City" means the City of Alameda, chartered city and municipal corporation duly
organized and existing under the Constitution and laws of the State of California.
-3-
"Closing Date" means , 2009, being the date on which the Bonds are
delivered by the City to the original Purchaser.
"Continuing Disclosure Certif~'cate" means the Continuing Disclosure Certificate executed
and delivered by the City on the Closing Date with respect to the Bonds.
"Corporate 'rust ~f fice" means the corporate trust office of the Trustee at the address set
forth in Section 9.08, or at such other or additional offices as maybe specified by the Trustee in
writing to the City as the office at which, it conducts its business as Trustee hereunder. For
operational purposes ~i.e, payment, redemption, etc.), the Corporate Trust Office of the Trustee
shall be designated as ~ ,Los Angeles, California
"Costs of Issuance" means all items of expense directly or indirectly payable by or
reimbursable to the City relating to the authorization, issuance, sale and delivery of the Bonds,
including but not limited to: printing expenses; rating agency fees; filing and recording fees;
initial fees, expenses and charges of the Trustee and its counsel, including the Trustee's first
annual administrative fee; fees, charges and disbursements of attorneys, financial advisors,
actuarial firms, accounting firms, consultants and other professionals; and any other cost,
charge or fee in connection with the original issuance of the Bonds.
"Costs of Issuance Fund" means the fund by that name established and held by the
Trustee under Section 3.03.
"Current Interest Band" means a Bond, the interest component of which is payable on
each Interest Payment Date through the maturity date specified far such Bond.
"CIISIP Number" means that unique number assigned to each Bond by the CUSIP Service
Bureau upon initial sale of the Bonds.
"Debt Service" means the scheduled amount of interest and amortization of principal
payable on the Bonds during the period of computation, including the principal amount of any
Bonds which are subject to mandatory sinking fund redemption during such period but
excluding amounts scheduled during such period which relate to principal which has been
retired before the beginning of such period.
"Debt Service Fund" means the fund by that name established and held by the Trustee
under Section 4.03.
"Denominational Amount" means, with respect to the Capital Appreciation Bonds, the
principal amount thereof, without Accreted Interest.
"Depository" means ~a} initially, DTC, and fib} any other Securities Depository acting as
Depository under Section 2.I6.
"Depository System Participant" means any participant in the Depository's book-entry
system.
"D~'C" means The Depository Trust Company, New York, New York, and its successors
and assigns.
"Event of Default" means any of the events described in Section 8.0~.
"Federal Securities" means. ~a} any direct general obligations of the United States of
America including obligations issued or held in book entry form on the books of the
-4-
Department of the Treasury of the United States of America},for which the full faith and credit
of the United States of America are pledged; fib} obligations of any agency, department or
instrumentality of the United States of America, the timely payment of principal and interest on
which are directly or indirectly secured or guaranteed by the full faith and credit of the United
States of America; and ~c} any obligations of a financial institution the timely payment of
principal of and interest on which are secured or collateralized by obligations described in the
foregoing clauses ~a} or ~}.
"Fiscal Year" means any twelve-month period beginning on July 1 in any year and
extending to the next succeeding June 30, both dates inclusive, or any other twelve-month
period selected and designated by the City as its official fiscal year period in a Certificate of the
City f fled with the Trustee.
"Indenture" means this Indenture of Trust between the City and the Trustee, as amended
or supplemented from time to time under any Supplemental Agreement entered into under the
provisions hereof.
"independent Accountant" means any accountant or firm of such accountants duly
licensed or registered or entitled to practice and practicing as such under the laws of the State of
California, appointed by or acceptable to the City, and who, or each of whom: ~a} is in fact
independent and not under domination of the City; fib} does not have any substantial interest,
direct or indirect, with the City; and ~c} is not connected with the City as an officer or employee
of the City, but who maybe regularly retained to make reports to the City.
"Information Services" means Financial Information, Inc.'s Financial Daily Called Bond
Service; Standard & Poor's J.J. Kenny Information Services; Moody's Municipal and
Government; and, in accordance with then current guidelines of the Securities and Exchange
Comrnission, such other addresses and / or such other services providing information with
respect to the redemption of bonds as the City may designate in a Request of the City delivered
to the Trustee.
"Interest Payment Date" means each 1 and 1, commencing ,
"ISIN Number" means the unique number assigned to each Bond traded within the
Euroclear System and Clearstream, Luxembourg, from and after the date upon which such
trading commences.
"~aturity Value" means the Accreted Value of any Capital Appreciation Bond on its
maturity date.
"~ioody's" means Moody's Investors Service, its successors and assigns.
"Nominee" means ~a} initially, Cede & Co. as nominee of DTC, and fib} any other
nominee of the Depository designated under Section 2.16.
"~riginaZ Purchaser" means
the negotiated sale thereof.
as original purchaser of the Bonds upon
"outstanding," when used as of any particular time with reference to Bonds, means
(subject to the provisions of Section 9.05} all Bonds except: ~a} Bonds theretofore canceled by the
Trustee or surrendered to the Trustee for cancellation; fib} Bonds paid or deemed to have been
paid within the meaning of Section 9.03; and ~c} Bonds in lieu of or in substitution for which
other Bonds have been authorized, executed, issued and delivered by the City pursuant hereto.
-5-
"owner" means, with respect to any Band, the person in whose name the ownership of
such Bond is registered on the Registration Books.
"~'ermi~ted fnvestments" means any of the following which at the time of investment are
legal investrnents under the laws of the State of California for the moneys proposed to be
invested therein:
(a) Federal Securities;
(b) Federal Housing Administration debentures.
~c} The listed obligations of government-sponsored agencies which are not backed by
the full faith and credit of the United States of America:
~i} Federal Home Loan Mortgage Corporation participation certificates
~exciuding stripped mortgage securities which are purchased at prices exceeding their
principal amounts} or senior debt obligations
(ii) Farm Credit Banks (formerly: Federal Land Banks, Federal Intermediate
Credit Banks and Banks for Cooperatives) consolidated system-wide bonds and notes
(iii) Federal Home Loan Banks consolidated debt obligations
Div} Federal National Mortgage Association senior debt obligations or
mortgage-backed securities excluding stripped mortgage securities which are
purchased at prices exceeding their principal amounts}
(v) Student Loan Marketing Association senior debt obligations (excluded are
securities that do not have a fixed par value and/or whose terms do not promise a fixed
dollar amount at maturity or call date)
(vi) Financing Corporation debt obligations, and
(vii) Resolution Funding Corporation debt obligations.
~d} Unsecured certificates of deposit, time deposits, and bankers' acceptances shaving
maturities of not more than 30 days} of any bank, including the Trustee or its affiliates, the
short-term obligations of which are rated "A-1" or better by S&P.
fie} Deposits the aggregate amount of which are fully insured by the Federal Deposit
Insurance Corporation FDIC}, in banks, including the Trustee or its affiliates, which have
capital and surplus of at least $5 million.
~f} Commercial paper shaving original maturities of not more than 27a days} rated
"A-1+" by S&P and "Prime-1" by Moody's.
fig} Money market funds rated "AAm" or "AAm-G" by SAP, or better, including funds
for which the Trustee or its affiliates ar subsidiaries provide investment or other advisory
services.
~h} Municipal obligations rated "A" or better by S&P and Moody's;
_6_
rating,
~i} obligations of any agency or instrumentality of the City with any rating or with no
~j} Investment agreements with a domestic or foreign bank or corporation (other than a
life or property casualty insurance company} the long-term debt of which, or, in the case of a
guaranteed corporation the long-term debt, or, in the case of a monoline financial guaranty
insurance company, claims paying ability, of the guarantor is rated at least "AA" by S&P and
"Aa" by Moady's; provided that, by the terms of the investment agreement:
(i) interest payments are to be made to the Trustee at the times and in amounts as
necessary to pay amounts due with respect to the Bonds;
iii} the invested funds are available for withdrawal without penalty or premium,
at any time upon not more than seven ~7} days' prior notice; the City and the Trustee
hereby agree to give or cause to be given notice in accordance with the terms of the
investment agreement so as to receive funds thereunder with no penalty or premium
paid;
viii} the investment agreement shall state that is the unconditional and general
obligation of, and is not subordinated to any other obligation of, the provider thereof, or
in the case of a bank, that the obligation of the bank to make payments under the
agreement ranks pari passu with the obligations of the bank to its other depositors and
its other unsecured and unsubordinated creditors;
Div} the City and the Trustee receive the opinion of domestic counsel which
opinion shall be addressed to the City and the Trustee} that such investment agreement
is legal, valid, binding and enforceable upon the provider in accordance with its terms
and of foreign counsel cif applicable} in form and substance acceptable, and addressed
to, the City and the Trustee;
(v) the investment agreement shall provide that if during its term
~A} the provider's rating by either S&P or Moady's falls below "AA-" or
"Aa3," respectively, the provider shall, at its option, within 10 days of receipt of
publication of such downgrade, either ~i} collateralize the investment agreement
by delivering or transferring in accordance with applicable state and federal laws
father than by means of entries on the provider's books} to the City, the Trustee
or a third party acting solely as agent therefor the "Holder of the Collateral"}
collateral free and clear of any third-party liens or claims the market value of
which collateral is maintained at levels 'and upon such conditions as would be
acceptable to S&P and Moody's to maintain an "A" rating i ~ an "A" rated
structured f rnancing ~w1th a market value approach}; or ~i1} repay the principal of
and accrued but unpaid interest on the investment, and
~B} the provider's rating by either S&P or Moody's is withdrawn or
suspended or falls below "A-" or "A3," respectively, the provider must, at the
direction of the City or the Trustee, within 1~ days of receipt of such direction,
repay the principal of and accrued but unpaid interest on the investment, in
either case with no penalty or premium to the City or Trustee.
Zvi} The investment agreement shall state and an opinion of counsel shall be
rendered, in the event collateral is required to be pledged by the provider under the
terms of the investment agreement, at the time such collateral is delivered, that the
holder of the Collateral has a perfected first priority security interest in the collateral,
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any substituted collateral and all proceeds thereof din the case of bearer securities, this
means the holder of the Collateral is in possession};
vii} the investment agreement must provide that if during its terrn ~a} the
provider shall default in its payment obligations, the pravider's obligations under the
investment agreement shall, at the direction of the City or the Trustee, be accelerated
and amounts invested and accrued but unpaid interest thereon shall be repaid to the
City or Trustee, as appropriate, and fib} the provider shall become insolvent, not pay its
debts as they become due, be declared or petition to be declared bankrupt, etc., the
provider's obligations shall automatically be accelerated and amounts invested and
accrued but unpaid interest thereon shall be repaid to the City or Trustee, as
appropriate.
~k} Repurchase which meet the f allowing standards and criteria.
~i} The agreement must be with ~1} any domestic bank, or domestic branch of a
foreign bank, the long term debt of which is rated at least "A" by S&P and Moody's; or
~2} any broker-dealer with "retail customers" or a related affiliate thereof which broker-
dealer has, or whose parent company which guarantees the provider} has, long-term
debt rated at least "A" by SAP and Moody's, which falls under the jurisdiction of the
Securities Investors Protection Corporation; or ~3} any other entity rated "A" or better by
S&P and Moody's, provided that:
~A} The market value of the callateral is maintained at levels and upon
such conditions as would be acceptable to S & P and Moody's to maintain an "A"
rating in an "A" rated structured financing with a market value approach and
without regard to the rating of the provider};
~B} The Trustee or a third party acting solely as agent therefor or for the
City the "Holder of the Collateral"} has possession of the collateral or the
collateral has been transferred to the Holder of the Collateral in accordance with
applicable state and federal Iaws bother than by means of entries on the
transferor's books};
(C} The agreement shall state and an opinion of counsel shall be rendered
at the time such collateral is delivered that the Holder of the Collateral has a
perfected first priority security interest in the collateral, any substituted collateral
and all proceeds thereof din the case of bearer securities, this means the Holder of
the Collateral is in possession};
~D} All other requirements of S&P in respect of repurchase agreements
shall be met.
~E} The agreement shall provide that if during its term the provider's
rating by either Moody's or S&P is withdrawn or suspended or falls below "A-"
by S&P or "A3" by Moody's, as appropriate, the provider must, at the direction
of the City or the Trustee, within 10 days of receipt of such direction, repurchase
all collateral and terminate the agreement, with no penalty or premium to the
City or the Trustee.
Notwithstanding the above, if a repurchase agreement has a term of 270 days or
less with no evergreen provision}, callateral levels need not be as specified in ~a} above,
so long as such collateral levels are 103°/a or better and the provider is rated at least "A"
by S&P and Moody's, respectively.
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~1} The Local Agency Investment Fund which is administered by the California
Treasurer for the investment of funds belonging to local agencies within the State of California.
"Record Date" means, with respect to any Interest Payment Date, the 15th calendar day of
the month immediately preceding such Interest Payment Date.
"Registration Books" means the records maintained by the Trustee under Section 2.I4 for
the registration and transfer of ownership of the Bonds.
`'Re~~cest of the City" means a request in writing signed by the Mayor, the City Manager
or the Director of Administrative Services/Chief Financial officer of the City for such other
person performing the functions of chief financial officer of the City}, or by any other officer of
the City duly authorized by the City for that purpose.
"Retirement Benefits Fund" means the fund by that name established and held by the
Trustee under Section 3.04.
"SAP" means Standard & Poor's Corporation, of New York, New York, and its
successors.
"Securities Depositories" means DTC; and, in accordance with then current guidelines of
the Securities and Exchange Commission, such other addresses and/or such other securities
depositories as the City may designate in a Request of the City delivered to the Trustee.
"Supplementar Agreement" means any indenture, agreement or other instrument which
amends, supplements or modifies this Indenture and which has been duly entered into between
the City and the Trustee; but only if and to the extent that such Supplemental Agreement is
specifically authorized hereunder.
"~'rustee" means Union Bank, N.A., as Trustee hereunder, or any successor thereto
appointed as Trustee hereunder in accordance with the provisions of Article VI.
Section 1.02. Authorization. Each of the parties hereby represents and warrants that it
has full legal authority and is duly empowered to enter into this Indenture, and has taken all
actions necessary to authorize the execution hereof by the officers and persons signing it.
Section 1.03. Inter~retatian.
~a} Unless the context otherwise indicates, words expressed in the singular include the
plural and vice versa and the use of the neuter, masculine, or feminine gender is for
convenience only and include the neuter, masculine or feminine gender, as appropriate.
fib} Headings of articles and sections herein and the table of contents hereof are solely for
convenience of reference, do not constitute a part hereof and do not affect the meaning,
construction or effect hereof.
~c} All references herein to "Articles," "Sections" and other subdivisions are to the
corresponding Articles, Sections ar subdivisions of this Indenture; the words "herein," "hereof,"
"hereby," "hereunder" and other words of similar import refer to this Indenture as a whole and
not to any particular Article, Section or subdivision hereof .
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ARTICLE II
AUTHORIZATION AND TERMS OF BONDS
Section 2.OI, Authorization ,.and Pur o~se,. of Bonds, The City has reviewed all
proceedings heretofore taken and has found, as a result of such review, and hereb finds and
Y
determines that all things, conditions and acts required by law to exist, happen ar be performed
precedent to and in connection with the issuance of the Bonds do exist, have happened and
have been performed in due time, form and manner as required by law, and the City is now
duly empowered, under each and every requirement of law, to issue the Bands in the manner
and form provided in this Indenture.
The City hereby authorizes the issuance of the Bonds in the aggregate principal amount
of $ under the Authorizing Resolution and the Band Law for the purposes of
providing funds to refinance the Retirement Obligations of the City as provided herein. The
Bonds are authorized and issued under, and are subject to the terms of, this Indenture, the
Authorizing Resolution and the Bond Law. The Bands are designated the "City of Alameda
200 Taxable Pension Obligation Bonds." The Bonds shall be comprised of $ Current
Interest Bonds and $ Capital Appreciation Bonds.
Section 2.02. Terms of the Bonds, The Bonds are issuable in fully registered form without
coupons in Authorized Denominations, and will be dated as of the Closing Date.
(a) Current Interest Bonds.
~i} Each Current Interest Bond shall be dated as of the Closing Date. Interest with
respect to each Current Interest Bond shall be payable from the Interest Payment Date
next preceding the date of execution thereof, unless: ~i} it is executed as of an Interest
Payment Date, in which event interest with respect thereto shall be payable from such
Interest Payment Date; or ~ii~ it is executed after a Regular Record Date and before the
following Interest Payment Date, in which event interest with respect thereto shall be
payable from such Interest Payment Date; or viii} it is executed on or before ,
in which event interest with respect thereto shall be payable from the Closing Date;
provided, however, that if, as of the date of issuance of any Current Interest Bond, interest
is in default with respect to any Outstanding Current Interest Bonds, interest on such
Current Interest Bond shall be payable from the Interest Payment Date to which interest
has previously been paid or made available for payment with respect to the outstanding
Current Interest Bonds. Payment of defaulted interest shall be paid by check mailed to
the Owners as of a special record date to be fixed by the Trustee in its sole discretion,
notice of which shall be given to the Owners not less than ten ~~0} days prior to such
special record date.
iii} Subject to Section 2.03, the Current Interest Bonds shall mature on
1 in each of the respective years, and in the respective amounts, except that no Current
Interest Bond may have principal maturing in more than one year, and interest thereon
shall be computed at the respective rates, as follows:
-10-
Maturity Principal Interest
~ 1 ~. Amount Rate
viii} Interest on the Current Interest Bonds shall be payable on each Interest
Payment Date to and including the date of maturity or Rdemptian, whichever is earlier,
fib} Capital Appreciation Bonds.
~i} The Capital Appreciation Bonds shall be dated as of the Closing Date. Each
Capital Appreciation Bond shall represent its Accreted Value from the Closing Date to
its date of maturity.
iii} Subject to Section 2,43, the Capital Appreciation Bonds shall mature on
1 in each of the respective years, and in the respective Denominational
Amounts and Maturity Amounts, except that no Capital Appreciation Bond may have
principal maturing in more than one year, as follows.
Initial Approximate
Maturity Denominational Accretion Maturity
~1~ Amount Rate Amount
viii} No interest payments shall be made with respect to the Capital Appreciation
Bonds. The value of each Capital Appreciation Bond shall accrete semi-annually on each
Interest Payment Date. The approximate Accreted Value of each $5,400 portion of the
Capital Appreciation Bonds as of each Interest Payment Date is shown on the Table of
Accreted Values set forth in Exhibit C attached hereto.
Section 2.03. Redemption of Bonds.
(a) Current Interest Bonds.
(i) Optional Redemption. [OPTIONAL REDEMPTION PROVISIONS TO COMEj.
_II_
(ii) Mandatory Redemption.
~A} The Current Interest Bonds maturing on 1, ,are subject to
mandatory redemption in part on ~, ,and on 1, , at a
redemption price equal to the principal amount thereof to be redeemed, together
with accrued interest to the date fixed for redemption, without premium, as
follows:
Principal Amount of
Year Current interest Bonds
~~ to be Redeemed
Maturity
(B} In the event that the Trustee shall redeem Current Interest Bonds
maturing on 1, _ ~ in part but not in whole pursuant to subsections ~a}~i}
of this Section 2.03, the amount of the Current Interest Bonds to be redeemed in
each subsequent year pursuant to this subsection ~a}viii} shall be reduced to
correspond to the principal amount of Current Interest Bonds following such
redemption.
(b) Capital Appreciation Bonds.
(i) Optional Redemption. [OPTIONAL REDEMPTION PROVISIONS TO COME].
Section 2.04. Selection of Bonds for RedempT. Whenever provision is made in this
Indenture for the redemption of Bonds and less than all Outstanding Bonds are to be redeemed,
the Trustee shall select Bonds for redemption from the Outstanding Bonds not previously called
for redemption in such order of maturity as shall be designated by the City hand, in lieu of such
designation, pro rata among maturities} and by lot within a maturity. The Trustee shall select
Bonds f or redemption within a maturity by lot in any manner which the Trustee shall, in its sole
discretion, deem appropriate. For the purposes of such selection, Bonds shall be deemed to be
composed of $5,000 portions and any such portion may be separately redeemed. The Trustee
shall promptly notify the City in writing of the Bonds so selected for redemption. Selection by
the Trustee of Bonds for redemption shall be final and conclusive.
Section 2.05. Notice of Redemyton. Unless waived in writing by any Owner of a Bond
to be redeemed, notice of any such redemption shall be given by the Trustee on behalf and at
the expense of the City, by mailing a copy of a redemption notice by first class mail, postage
prepaid, at least thirty X30} days and not more than sixty X60} days prior to the date fixed for
redemption to such owner of the Bond or Bonds to be redeemed at the address shown on the
Registration Books or at such other address as is furnished in writing by such Owner to the
Trustee; provided, however, that neither the failure to receive such notice nor any defect in any
notice shall affect the sufficiency of the proceedings for the redemption of the Bonds.
All notices of redemption shall be dated and shall state: ~i} the redemption date; iii} the
redemption price; viii} if less than a110utstanding Bonds of a maturity are to be redeemed, the
Bond numbers hand, in the case of partial redemption, the respective principal amounts} of the
Bonds to be redeemed; Div} that on the redemption date the redemption price will become due
and payable upon each such Bond or portion thereof called for redemption and that interest
with respect to the Current Interest Bonds shall cease to accrue or the Capital Appreciate Bonds
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shall cease to accrete in value, as applicable, from and after said date; (v} the place where such
Bonds are to be surrendered for payment of the redemption price, which place of payment shall
be the Principal Corporate Trust Office; (vi} the CUSZP numbers and the ISIN numbers, if any,
of all Bonds being redeemed; (vii} the original date of execution and delivery of the Bonds; (viii}
the rate of interest payable or accretion rate, as applicable, with respect to each maturity of
Bonds being redeemed; (ix} the maturity date of each Bond being redeemed; and (x} any other
descriptive information needed to identify accurately the Bonds being redeemed.
Prior to any redemption date, the City shall deposit, or cause to be deposited, with the
Trustee an amount of money in immediately available funds sufficient to pay the redemption
price of all the Bonds or portions of Bonds which are to be redeemed on that date.
Notice of redemption having been given as aforesaid and the deposit of the redemption
price having been made by the City, the Bonds or portions of Bonds so to be redeemed shall, on
the redemption date, become due and payable at the redemption price therein specified, and
from and after such date interest with respect to such Bonds or portions of Bonds, if applicable,
shall cease to be payable. Upon surrender of such Bonds for redemption in accordance with said
notice, such Bonds shall be paid by the Trustee at the redemption price. Upon the payment .of
the redemption price of Bonds being redeemed, each check or other transfer of funds issued for
such purpose shall bear the CUSZP number and the ISIN number, if any, identifying, by issue
and maturity, the Bands being redeemed with the proceeds of such check or other transfer, to
the extent possible. Installments of interest due on or prior to the redemption date shall be
payable as herein provided for payment of interest. All Bands which have been redeemed shall
be canceled by the Trustee, shall not be redelivered and shall be destroyed pursuant to Section
~.a7.
In addition to the foregoing notice to the Owners, notice shall also be given by the
Trustee, by telecopy, registered, certified or overnight mail, to all Securities Depositories and to
an Information Service which shall state the information set f orth above, but no defect in said
notice nor any f allure to give all or any portion of such further notice shall in any manner def eat
the effectiveness of a call for redemption if notice thereof is given as prescribed above.
The Trustee shall have no responsibility for a defect in the CUSZP number that appears
on any Bond or in the redemption notice. The redemption notice may provide that the CUSIP
numbers have been assigned by an independent service and are included in the notice solely for
the convenience of Bond Owners and that the Trustee and the City shall not be liable in any
way for inaccuracies in said numbers.
Section 2.06. Partial Redemption of Bond. Upon surrender of any Bond redeemed in part
only, the Trustee shall execute and deliver to the Owner thereof a new Bond or Bonds of
Authorized Denominations equal in aggregate principal amount to the unredeemed portion of
the Bond surrendered and of the same interest rate or accretion rate, as applicable, and the same
maturity.
Section 2.07. Purchase of Bonds. In lieu of redemption of Bonds as provided in Section
2.03, amounts held by the Trustee for such redemption may also be used on any Interest
Payment Date, upon receipt by the Trustee at least ninety (90} days prior to the next scheduled
Interest Payment Date of the written request of a City Representative, for the purchase of Bonds
at public or private sale as and when and at such prices (including brokerage, accrued interest
and other charges} as the City may in its discretion direct, but not to exceed the redemption
price which would be payable if such Bonds were redeemed; provided, however, that no Bonds
shall be purchased in lieu of redemption with a trade settlement date less than seventy-five (75}
days prior to the relevant redemption date. Such purchases may be affected through the
investment department of the Trustee or of an affiliate of the Trustee. The aggregate principal
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amount of Bonds of the same maturity purchased in lieu of redemption pursuant to this Section
2.07 shall not exceed the, aggregate principal amount of Bonds of such maturity which would
otherwise be subject to such redemption.
Section 2.08. Forms of Bonds. The Bonds shall be delivered in the form of fully registered
Bonds without coupons in the denomination of $5,000 or any integral multiple thereof. The
Current Interest Bonds shall be numbered consecutively, beginning with CICR-1. The Current
Interest Bonds shall be substantially in the form set forth in Exhibit B attached hereto and by
this reference incorporated herein. The Capital Appreciation Bonds shall be numbered
consecutively, beginning with CACR-1. The Capital Appreciation Bands shall be substantially
in the form set forth in Exhibit C attached hereto and by this reference incorporated herein.
Section 2.09. Execution. The Bonds shall be executed by and in the name of the Trustee
by the manual signature of an authorized officer or signatory of the Trustee. If any officer or
signatory whose signature appears on any Bond ceases to be such.officer or signatory before the
date of delivery of said Bond, such signature shall nevertheless be as effective as if the officer or
signatory had remained in office until such date.
Section 2.10. Transfer and Exchange.
~a} ~'ransfer of Bonds. The registration of any Bond may, in accordance with its terms, be
transferred upon the Registration Books by the person in whose name it is registered, in person
or by his attorney duly authorized in writing upon surrender of such Bond for cancellation at
the Principal Corporate Trust office, accompanied by delivery of a written instrument of
transfer in a form approved by the Trustee, duly executed. whenever any Bond or Bonds shall
be surrendered for registration of transfer, the Trustee shall execute and deliver a new Bond or
Bonds for like aggregate principal amount or Denominational Amount, as applicable, in
Authorized Denominations. The City shall pay any costs of the Trustee incurred in connection
with such transfer, except that the Trustee may require the payment by the Bond owner
requesting such transfer of any tax or other governmental charge required to be paid with
respect to such transfer. The Trustee shall not be required to transfer ~i} any Bonds or portion
thereof during the period between the date fifteen X15} days prior to the date of selection of
Bonds for redemption and such date Of selection, or iii} any Bonds selected for redemption.
fib} Exchange of Bonds. Bonds maybe exchanged, upon surrender thereof, at the Principal
Corporate Trust office for a like aggregate principal amount or Denominational Amount, as
applicable, of Bonds of other Authorized Denominations of the same maturity. whenever any
Bond or Bonds shall be surrendered for exchange, the Trustee shall execute and deliver a new
Bond or Bonds for like aggregate principal amount or Denominational Amount, as applicable,
in Authorized Denominations. The City shall pay any costs of the Trustee incurred in
connection with such exchange, except that the Trustee may require the payment by the Bond
owner requesting such exchange of any tax or other governmental charge required to be paid
with respect to such exchange. The Trustee shall not be required to exchange ~i} any Bond or
any portion thereof during the period between the date fifteen X15} days prior to the date of
selection of Bonds for redemption and such date of selection, or iii} any Bond selected for
redemption.
Section x.11. Bonds Mutilated Lost Destro ed or Stolen. If any Bond shall become
mutilated, the Trustee, at the expense of the owner of said Bond, shall execute and deliver a
new Bond of like tenor, maturity and principal amount or Denominational Amount, as
applicable, in exchange and substitution for the Bond so mutilated, but only upon surrender to
the Trustee of the Bond so mutilated. Every mutilated Bond so surrendered to the Trustee shall
be canceled by it and destroyed with a Bond of destruction furnished to the City. If any Bond
shall be lost, destroyed or stolen, evidence of such loss, destruction or theft shall be submitted to
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the Trustee, and, if such evidence is satisfactory to the Trustee and if an indemnity satisfactory
to the Trustee shall be given, the Trustee, at the expense of the Bond Owner, shall execute and
deliver a new Bond of like tenor, maturity and principal amount or Denominational Amaunt, as
applicable, and numbered as the Trustee shall determine in lieu of and in substitution for the
Bond so lost, destroyed or stolen. The Trustee may require payment by the City of the expenses
which may be incurred by the Trustee in carrying out the duties under this Section 2.11. Any
Bond executed and delivered under the provisions of this Section 2.11 in lieu of any Bond
alleged to be lost, destroyed or stolen shall be equally and fractionally entitled to the benefits of
this Indenture with all other Bonds secured by this Indenture. The Trustee shall not be required
to treat both the original Bond and any replacement Bond as being Outstanding for the purpose
of determining the principal amount or Denominational Amount, as applicable, of Bonds which
maybe executed and delivered hereunder or for the purpose of determining any percentage of
Bonds Outstanding hereunder, but both the original and replacement Bond shall be treated as
one and the same. Notwithstanding any other provision of this Section 2.11, in lieu of delivering
a new Bond to replace a Bond which has been mutilated, Iost, destroyed or stolen, and which
has matured or has been called for redemption or is about to be called for redemption, the
Trustee may make payment with respect to such Bond upon receipt of the aforementioned
indemnity.
Section 2.12. Pa meet. Payment of interest due with respect to any Current Interest
Bond on any Interest Payment Date shall be made to the person appearing on the Registration
Books as the Owner thereof as of the Regular Record Date immediately preceding such Interest
Payment Date, such interest to be paid by check mailed on the Interest Payment Date by first
class mail to such Owner at his address as it appears on the Registration Books as of such
Regular Record Date or, upon written request filed with the Trustee prior to the Regular Record
Date by an Owner of at least $1,~~0,000 in aggregate principal amount of Bonds, by wire
transfer in immediately available funds to an account in the United States designated by such
Owner in such written request. Any such written request shall remain in effect until rescinded
in writing by the Owner. The principal or Maturity Value, as applicable, with respect to the
Bonds at maturity or the principal amount or Accreted Value, as applicable, upon prior
redemption shall be payable by check denominated in lawful money of the United States of
America upon surrender of fihe Bonds at the Principal Corporate Trust Office.
Section 2.13. Execution of Documents and Proaf of Ownershi ,Any request, direction,
consent, revocation of consent, or other instrument in writing required or permitted by this
Indenture to be signed or executed by Bond Owners may be in any number of concurrent
instruments of similar tenor, and may be signed or executed by such Owners in person or by
their attorneys or agents appointed by an instrument in writing far that purpose, or by any
bank, trust company or other depository for such Bonds. Proof of the execution of any such
instrument, or of any instrument appointing any such attorney or agent, and of the ownership
of Bonds shall be sufficient for any purpose of this Indenture except as otherwise herein
provided}, if made in the following manner;
~a} The f act and date of the execution by any Owner or his attorney or agent of any such
instrument and of any instrument appointing any such attorney or agent, may be proved by a
Band, which need not be acknowledged or verified, of an officer of any bank or trust company
located within the United States of America, or of any notary public, or other officer authorized
to take acknowledgments of deeds to be recorded in such jurisdictions, stating that the persons
signing such instruments acknowledged before him the execution thereof . where any such
instrument is executed by an afficer of a corporation or association or a member of a
partnership on behalf of such corporation, association or partnership, such Bond shall also
constitute sufficient proof of his authority.
_15_
fib} The fact of the ownership of Bonds by any person and the amount, the maturity and
the numbers of such Bonds and the date of his holding the same shall be proved by the
Registration Books.
Any request or consent of the owner of any Bond shall bind every future Owner of the
same Bond in respect of anything done or suffered to be done by the Trustee pursuant to such
request or consent.
Section 2.14. Re istration Books. The Trustee shall keep or cause to be kept, at its
Principal Corporate Trust office, sufficient records for the registration and registration of
transfer of the Bonds, which shall at all reasonable times be open to inspection by the City
during regular business hours on any Business Day with reasonable prior notice; and, upon
presentation for such purpose, the Trustee shall, under such reasonable regulations as it may
prescribe, register or transfer ar cause to be registered or transferred, on the Registration Books,
Bonds as hereinbefore provided.
Section 2.15. CUSIP Numbers and ISIN Numbers .Neither the Trustee nor the City shall
be liable for any defect or inaccuracy in the CUSIP number or ISZN number that appears on any
Bond or in any redemption notice. The Trustee may, in its discretion, include in any redemption
notice a statement to the effect that the CUSIP numbers or ISZN numbers on the Bonds have
been assigned by independent services and are included in such notice solely for the
convenience of the owners and that neither the Trustee nor the City shall be liable for any
inaccuracies in such numbers.
Section 2.16. Use of De o~sitory. Notwithstanding any provision of this Indenture to the
contrary:
. ~a} At the request of the original Purchaser, the Bonds shall be initially executed,
delivered and registered in the name of "Cede ~ Co.," as nominee of The Depository Trust
Company, the depository designated by the original Purchaser, and shall be evidenced by one
Bond maturing on each of the maturity dates set forth in Section 2.02 hereof to be in a
denomination corresponding to the total principal therein designated to mature on such date.
Registered ownership of such Bonds, or any portions thereof, may not thereafter be transferred
except:
~i} to any successor of The Depository Trust Company or its nominee, or of any
substitute depository designated pursuant to paragraph iii} of this subsection ~a}
~"substitute depository"}; provided that any successor of The Depository Trust
Company or substitute depositary shall be qualified under any applicable laws to
provide the service proposed to be provided by it;
iii} to any substitute depository designated in a written request of the City, upon
~A} the resignation of The Depository Trust Company or its successor for any substitute
depository or its successor} from its functions as depository or ~B} a determination by
the City that The Depository Trust Company or its successor is no longer able to carry
out its functions as depository; provided that any such substitute depositary shall be
qualified under any applicable laws to provide the services proposed to be provided by
1t; or
(iii) to any person as provided below, upon (A) the resignation of The Depository
Trust Company or its successor (or any substitute depository or its successor) from its
functions as depository or (B) a determination by the City that The Depository Trust
Company or its successor is no longer able to carry out its functions as depository;
-1b-
provided that no substitute depository which is not objected to by the City and the
Trustee can be obtained.
fib} In the case of any transfer pursuant to paragraph ~i} or paragraph iii} of subsection
~a} of this Section 2.1.2, upon receipt of all Outstanding Bonds by the Trustee, together with a
written request of a City Representative to the Trustee, a single new Bond shall be executed and
delivered for each maturity of such Bond then outstanding, registered in the name of such
successor or such substitute depository or their nominees, as the case maybe, ail as specified in
such written request of a City Representative. in the case of any transfer pursuant to paragraph
viii} of subsection ~a} of this Section 2.~2, upon receipt of all outstanding Bonds by the Trustee
together with a written request of a City Representative, new Bonds shall be executed and
delivered in such denominations and registered in the names of such persons as are requested
in a written request of the City provided the Trustee shall nat be required to deliver such new
Bonds within a period less than sixty ~bQ} days from the date of receipt of such a written request
of a City Representative.
~c} In the case of partial redemption or an advance refunding of any Bonds evidencing
all of the principal maturing in a particular year, The Depository Trust Company shall, at the
City's expense, deliver the Bonds to the Trustee for cancellation and re-registration to reflect the
amounts of such reduction in principal.
~d} The City and the Trustee shall be entitled to treat the person in whose name any
Bond is registered as the absolute owner thereof for all purposes of this Indenture and any
applicable laws, notwithstanding any notice to the contrary received by the Trustee or the City
and the City and the Trustee shall have no responsibility for the accuracy of any records
maintained by DTC or any participant in DTC or transmitting payments to, communication
with, notifying or otherwise dealing with any beneficial owners of the Bonds. Neither the City
nor the Trustee will have any responsibility or obligations, legal or otherwise, to the beneficial
owners or to any other party including The Depository Trust Company or its successor for
substitute depository or its successor}, except for the registered owner of any Bond.
fie} So long as all outstanding Bonds are registered in the name of Cede & Co. or its
registered assign, the City and the Trustee shall reasonably cooperate with Cede & Co., as sole
registered owner, or its registered assign in effecting payment of the principal and interest due
with respect to the Bonds by arranging for payment in such manner that funds for such
payments are properly identified and are made immediately available on the date they are due,
in accordance with the Letter of Representations between DTC and the Trustee.
~f} So long as all outstanding Bonds are registered in the name of Cede & Co. or its
registered assigns thereinafter, for purposes of this paragraph ~f}, the "owner"}:
~i} Ali notices and payments addressed to the owners shall contain the Bonds'
CUS1P number.
iii} Notices to the owner shall be forwarded in the manner set forth in the form
of DTC's standard form blanket issuer letter of representations executed by the City and
received and accepted by DTC.
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ARTICLE IiI
DEPOSIT AND APPLICATION DF PROCEEDS OF BONDS
Section 3.01. Issuance of Bonds. Upon the execution and delivery of this Indenture, the
City shall execute and deliver Bonds in the aggregate principal amount of $
to the Trustee. At the Request of the City, the Trustee shall authenticate and deliver the Bonds
to the 4rigznal Purchaser on the Closing Date.
Section 3.02. De osit and A lication of Proceeds. Upon receipt of the roceeds of the
Bonds on the Clos~n Date the Truste p
g e shall deposit the proceeds into a special f and to be held
by the Trustee and known as the Bond Proceeds Account, to be applied as follows:
~a} Current ~n~erest Bonds. The net proceeds received by the Trustee from the sale of the
Current Interest Bonds in the amount of $ ,being the face amount of the Current
Interest Bonds ~$ }, less an underwriter's discount of $ , plus a remium of
$ shall forthwith be de o it p
p s ed or transferred by the Trustee as follows:
~i} The Trustee shall deposit the amount of $ in the Costs of Issuance
Fund.
iii} The Trustee shall deposit the amount of $ constitutin the
remainder of the roceeds of sale of g
p the Current Interest Bonds, in the Retirement
Benefits Fund.
fib} Capitar Appreciation Bonds. The net proceeds received by the Trustee from the sale of
the..Capital Appreciation Bonds in the amount of $ ,being the face amount of the
Capital Appreciation Bonds ~$ }, less an underwriter's discount of $ ,shall
forthwith be deposited or transferred by the Trustee as follows:
~i} The Trustee shall deposit the amount of $ in the Costs of Issuance
Fund.
iii} The Trustee shall deposit the amount of $ constitutin the
remainder of the roceeds of sale of the g
p Current interest Bonds, in the Retirement
Benefits Fund.
~c} The Trustee may establish a temporary fund or account in its records to facilitate such
deposits and transfers.
After making the foregoing transfers, the Trustee shall close the Band Proceeds Account.
Section 3.03. Costs of Issuance Fund. There is hereby established a se orate fund to be
known as the "Costs of Issuance Fun p
d, to be held by the Trustee. The Trustee shall disburse
moneys in the Costs of Issuance Fund from time to time to pay Costs of Issuance u on
submission of a Re uest of the Cit statin a the p
q y g ~) person to whom payment is to be made, fib}
the amounts to be paid, ~c} the purpose for which the obligation was incurred, ~d} that such
payment is a proper charge against the Costs of Issuance Fund, and fie} that such amounts have
not been the subject of a prior Request of the City, On ,the Trustee shall
transfer any amounts remaining in the Costs of Issuance Fund to the Debt Service Fund.
Section 3.04. Retirement Benefits Fund. There is hereby established a se orate fund to be
,~ p
known as the "Retirement Benefits Fund, to be held by the Trustee. The Trustee shall disburse
_tg_
moneys in the Retirement Benefits Fund from time to time to pay Retirement Benefits upon
submission of a Request of the City stating ~a}the person to whom payment is to be made, fib}
the amounts to be paid, ~c} that such payment is a proper charge against the Retirement Benefits
Fund, and ~d} that such amounts have not been the subject of a prior Request of the City.
Section 3.05. Validi of Bonds, The validity of the authorization and issuance of the
Bonds is pat dependent upon the expenditure of the proceeds thereof to ay Retirement
p
Benefits, or upon the performance by any person of its obligation with respect to the Retirement
Benefits.
ARTICLE IV
SECURITY FOR THE BANDS; FLDw 4F FUNDS; INVESTMENTS
Section 4.01. Securi of Bonds; EQual Security,
~a} The obligations of the City under the Bonds, including the obligation to make all
payments of principal of and interest on the Bonds when due and the obligation of the City to
make the deposits required hereunder f or the security of the Bonds, are obligations of the City
imposed by law and are absolute and unconditional, without any right of set-off or
counterclaim. The Bonds do not constitute an obligation of the City for which the City is
obligated to levy or pledge any form of taxation. Neither the Bonds nor the obligations of the
City to make payments on the Bonds constitute an indebtedness of the City, the State of
California, or any of its political subdivisions within the meaning of any constitutional or
statutory debt limitation or restriction.
fib) In consideration of the acceptance of the Bonds by those who hold the same from
time to time, this Indenture constitutes a contract between the City and the owners from time to
time of the Bonds, and the covenants and agreements herein set f orth to be perf ormed on behalf
of the City are for the equal and proportionate benefit, security and protection of all Owners of
the Bonds without preference, priority or distinction as to security or otherwise of any of the
Bonds over any of the others by reason of the number or date thereof or the time of sale,
execution and delivery thereof, or otherwise for any cause whatsoever, except as expressly
provided therein or herein.
Section 4.02. Deposits to Pay Debt Service and Expenses.
~a} Prepayment of Debt Service. Not later than July 1 in each year, commencing July 1,
,the Trustee shall: ~a} determine the amount which the City is obligated to deposit with the
Trustee for the payment of Debt Service on the Bonds during the current Fiscal Year, consisting
of the aggregate amount of principal of and interest on the Bonds coming due and payable in
such Fiscal Year, less the amount then held by the Trustee in the Debt Service Fund; and fib}
notif y the City in writing of the amount so determined. The City agrees and covenants that, not
later than August 15 following receipt of such written notice from the Trustee, it will transfer
the amount set forth in such written notice to the Trustee, for deposit in the Debt Service Fund.
fib} Additional Payments. Not later than the fifth Business Day immediately preceding
each interest Payment Date, the Trustee shall determine whether the amounts held by it in the
Debt Service Fund will be sufficient to pay the aggregate amount of Debt Service coming due
and payable on such Interest Payment Date. If the Trustee determines that the amounts held by
it in the Debt Service Fund will be insufficient to make such payment, the Trustee shall
immediately notify the City of such fact, and the City shall pay the amount of such insufficiency
to the Trustee, from any source of legally available funds of the City, such payment to be made
not later than three Business Days prior to the Interest Payment Date.
_1q_
Section 4.03. Debt Service Fund. There is hereby established a separate fund known as
the "Debt Service Fund," to be held by the Trustee in trust. The Trustee shall hold the Debt
Service Fund so long as any of the Bonds remain outstanding. The Trustee shall disburse
moneys in the Debt Service Fund from time to time to pay Debt Service on the Bonds, including
the principal and premium cif any} required to be paid upon the redemption of the Bonds. All
amounts remaining on deposit in the Debt Service Fund on 2 of each year, following
the payment in full of all Debt Service then required to be paid on the Bonds, shall be retained
therein and credited towards the deposit next required to be made by the City with the Trustee
under Section 4.o2~a}.
Section 4.04. Investment of Moneys. in Funds. The Trustee shall invest moneys held by it
in the Debt Service Fund and the Costs of Issuance Fund solely in Permitted Investments. In the
absence of any such direction from the City, the Trustee shall invest any such moneys solely in
Permitted Investments described in clause fig} of the definition thereof. The Trustee shall invest
moneys held by it in the Retirement Benefit Fund solely in Permitted Investments listed in
paragraphs ~ and of the definition thereof.
obligations purchased as an investment of moneys in any fund or account shall be
deemed to be part of such fund or account. All interest or gain derived from the investment of
amounts in any of the funds or accounts held by the Trustee hereunder shall be retained in the
respective fund or account from which,such investment was made. For purposes of acquiring
any investments hereunder, the Trustee may commingle funds held by it hereunder. The
Trustee or an affiliate may act as principal or agent in the acquisition or disposition of any
investment and may impose its customary charges therefor. The Trustee has no liability for
losses arising from any investments made under this Section 4.04.
._ The City acknowledges that to the extent regulations. of the Comptroller of the Currency
or other applicable regulatory entity grant the City the right to receive brokerage confirmations
of security transactions as they occur, the City specifically waives receipt of such confirmations
to the extent permitted by law. The Trustee will furnish the City periodic transaction statements
which include detail for all investment transactions made by the Trustee hereunder. The
Trustee or any of its affiliates may act as sponsor, advisor or manager in connection with any
investments made by the Trustee hereunder.
-~o-
ARTICLE V
OTHER COVENANTS OF THE CITY
Section 5.01. Punctual Pa meet. The City shall punctually pay or cause to be paid the
principal, premium cif any and interest to become due in respect of all the Bonds in strict
conformity with the terms of this Indenture. The City shall faithfully observe and perform all of
the conditions, covenants and requirements of this Indenture and all Supplemental Agreements.
Section 5.42. Bud et and A ro nation of Debt Service.The City covenants to take such
action as may be necessary to include in each of its annual budgets the payments required to be
made by the City under Section 4.02, and to make the necessary annual appropriations for all
such payments. If any payment of Debt Service requires the. adoption by the City of a
supplemental budget or appropriation, the City will promptly adopt the same. The covenants
on the part of the City herein contained constitute duties imposed by law and it is the duty of
each and every public official of the City to take such action and do such things as are required
bylaw in the performance of the official duty of such officials to enable the City to carry out and
perform the covenants ,and agreements in this Indenture agreed to be carried out and
perf ormed by the City.
Section 5.03. Extension of Pa,yment of Bonds. The City may not directly or indirectly
extend or assent to the extension of the maturity of any of the Bonds or the time of payment of
any claims for interest by the purchase of such Bonds or by any other arrangement, and if the
maturity of any of the Bonds or the time of payment of any such claims for interest is extended,
such Bonds or claims for interest are not entitled, in case of any default hereunder, to the
benefits of this Indenture, except subject to the prior payment in full of the principal of all of the
Outstanding Bonds and of all claims for interest thereon which have not been sa extended,
Nothing in this Section 5.03 limits the right of the City to issue bonds for the purpose of
refunding any Outstanding Bonds, and such issuance does not constitute an extension of
maturity of the Bonds.
Section 5.44. Books and Accounts • Financial Statements • Additional Information, The
City will keep, ar cause to be kept, proper books of record and accounts, separate from all other
records and accounts of the City. Such books of record and accounts shall at alI times during
business hours be subject, upon prior written request, to the reasonable inspection of the
Trustee who has no duty to inspect, the Owners of not less than 10°/° in aggregate principal
amount of the Bonds then Outstanding, or their representatives authorized in writing.
The City will cause to be prepared annually, within DSO days after the close of each
Fiscal Year so long as any of the Bonds are Outstanding, complete audited financial statements
with respect to such Fiscal Year, as of the end of such Fiscal Year. The City will furnish a copy of
such staterents, upon reasonable request, to the Trustee and any Bond Owner. The Trustee has
no duty to review any such financial statement.
Section 5.05. Continuing Disclosure. The City will comply with and carry out all of the
provisions of the Continuing Disclosure Certificate. Notwithstanding any other provision
hereof, failure of the City to comply with the Continuing Disclosure Certificate does not
constitute an Event of Default hereunder; provided, however, that any Participating Underwriter
has such term is defined in the Continuing Disclosure Certificate} or any Owner or Beneficial
Owner of the Bonds may take such actions as may be necessary and appropriate, including
seeking specific performance by court order, to cause the City to comply with its obligations
under this Section 5.05.
21-
Section 5.Ob. Protection of„ Security and Rights. of owners. The City will preserve and
protect the security of the Bonds and the rights of the owners. From and after the date of
issuance of the Bonds, the City may not contest the validity or enforceability of the Bonds or this
indenture.
Section 5.07. Further Assurances. The City will adopt, make, execute and deliver any
and all such further resolutions, instruments and assurances as maybe reasonably necessary or
proper to carry out the intention or to facilitate the performance of this Indenture, and for the
better assuring and confirming unto the Bond Owners the rights and benefits provided in this
lndenture.
22
ARTICLE VI
THE TRUSTEE
Section 6.01. Duties Immunities and Liabilities of Trustee.
~a} ~'erformance of Duties. The Trustee shall, prior to the occurrence of an Event of Default,
and after the curing or waiving of all Events of Default which may have occurred, perform such
duties and only such duties as are specifically set forth in this Indenture and no implied
covenants or duties shall be read rota this Indenture against the Trustee. The Trustee shall,
during the existence of any Event of Default which has not been cured or waived}, exercise
such of the rights and powers vested in it by this Indenture, and use the same degree of care
and slall xn their exercise, as a prudent person would exercise or use in the conduct of such
person's own affairs.
fib) Rernovar. The City may remove the Trustee at any time, and shall remove the Trustee
~i} if at any time requested to do so by an instrument or concurrent instruments in writing
signed by the Qwners of not less than a majority in aggregate principal amount of the Bonds
then Qutstanding for their attorneys duly authorized in writing} or iii} if at any time the Trustee
ceases to be eligible 1n accordance with subsection fie} of this Section b.o1, or becomes incapable
of acting, or 1s adjudged a bankrupt or insolvent, or a receiver of the Trustee or its property is
appointed, or any public officer takes control or charge of the Trustee or of its property or
affairs for the purpose of rehabilitation, conservation or liquidation. In each case such removal
shall be accomplished by the giving of 30 days' written notice of such removal by the City to the
Trustee, whereupon in the case of the Trustee, the City shall appoint a successor Trustee by an
instrument in writing.
~c} Resignation. The Trustee may at any time resign by giving written notice of such
resignation to the City, and by giving notice of such resignation by first class mail, postage
prepaid, to the Bond Qwners at their respective addresses shown on the Registration Books.
Upon receiving such notice of resignation, the City shall promptly appoint a successor Trustee
by an instrument in writing.
~d} Successors. Any removal or resignation of the Trustee and appointment of a successor
Trustee shall become effective upon acceptance of appointment by the successor Trustee. If no
successor Trustee is appointed and accepts appointment within 45 days following giving notice
of removal or notice of res~gnatlon as aforesaid, the resigning Trustee or any Qwner ion behalf
of such Qwner and all other Qwners} may petition any court of competent jurisdiction for the
appointment of a successor Trustee, and such court may thereupon, after such notice cif any} as
it may deem proper, appoint such successor Trustee. Any successor Trustee appointed under
this Indenture shall signify its acceptance of such appointment by executing and delivering to
the City and to its predecessor Trustee a written acceptance thereof, and to the predecessor
Trustee an instrument indemnifying the predecessor Trustee for any casts or claims arising
during the time the successor Trustee serves as Trustee hereunder, and such successor Trustee,
without any further act, deed ox conveyance, shall become vested with all the moneys, estates,
properties, rights, powers, trusts, duties and obligations of such predecessor Trustee, with like
effect as if originally named Trustee herein; but, nevertheless, upon the receipt by the
predecessor Trustee of the Request of the City or the request of the successor Trustee, such
predecessor Trustee shall execute and deliver any and all instruments of conveyance or further
assurance and do such other things as may reasonably be required for more fully and certainly
vesting in and confirming to such successor Trustee all the right, title and interest of such
predecessor Trustee in and to any property held by it under this Indenture and shall pay over,
transfer, assign and deliver to the successor Trustee any money or other property subject to the
trusts and conditions herein set forth. Upon request of the successor Trustee, the City shall
_23_
execute and deliver any and all instruments as may be reasonably required for more fully and
certainly vesting ~n and confirming to such successor Trustee all such moneys, estates,
properties, rights, powers, trusts, duties and obligations. Upon acceptance of appointment by a
successor Trustee as provided in this subsection, the City shall mail or cause the successor
Trustee to mail, by first class mail postage prepaid, a notice of the succession of such Trustee to
the trusts hereunder to each rating agency which then maintains a rating on the Bonds, and to
the Owners at the addresses shown on the Registration Books. If the City fails to mail such
notice witl~n 15 days after acceptance of appointment by the successor Trustee, the successor
Trustee shall cause such notice to be mailed at the expense of the City.
fie} Quarificatians. Any Trustee appointed under the provisions of this Section 6.01 in
succession to the Trustee must: ~i} be a company or bank having trust powers, iii} have a
corporate trust office in the State of California, viii} have for be part of a bank holding company
system whose bank holding eompany has} a combined capital and surplus of at least
$50,000,044, and Div} be subject to supervision or examination by federal or state authority.
If such bank or eompany publishes a report of condition at least annually, under law or
to the requirements of any supervising or examining authority above referred to, then for the
purpose of this subsection the combined capital and surplus of such bank or company shall be
deemed to be its combined capital and surplus as set forth in its most recent report of condition
so published. If at any time the Trustee ceases to be eligible in accordance with the provisions of
thrs subsection ~e}, the Trustee shall resign immediately in the manner and with the effect
specified in subsection ~c} of this Section 6,01,
Section 6.02. Mer er or Consolidation, Any bank or company into which the Trustee
may be merged or converted or with which either of them may be consolidated or any bank or
company resulting from any merger, conversion or consolidation to which it shall be a party or
any bank or company to which the Trustee may sell or transfer all or substantially all of its
corporate trust business, provided such bank or company is eligible under subsection (e} of
Section 6.01, shall be the successor to such Trustee without the execution or filing of any paper
or any further act, anything herein to the contrary notwithstanding.
Section 6.03. Liabilit of Trustee.
~a} The recitals of facts cantained herein and in the Bonds shall be taken as statements of
the City, and the Trustee shall not assume responsibility far the correctness of the same, nor
make any representations as to the validity or sufficiency of this Indenture or of the Bonds, nor
shall incur any responsibility in respect thereof, other than as expressly stated herein, The
Trustee shall, however, be responsible for its representations contained in its certificate of
authentication on the Bonds. The Trustee is not liable in connection with the performance of its
duties hereunder, except for its own negligence or willful misconduct. The Trustee is not liable
for the acts of any agents of the Trustee selected by it with due care. The Trustee may become
the Owner of any Bonds or the holder of any other form of indebtedness of the City with the
same rights it would have if it were not Trustee and, to the extent permitted bylaw, may act as
depository for and permit any of its officers or directors to act as a member of, or in any other
capacity with respect to, any committee formed to protect the rights of the Owners, whether or
not such committee shall represent the Owners of a majority in principal amount of the Bonds
then Outstanding. The Trustee, either as principal or agent, may engage in or be entrusted in
any financial or other transaction with the City.
fib} The Trustee is not liable for any error of judgment made in good faith by a
responsible officer.
_ 24 ..
~c} The Trustee is not liable with respect to any action taken or omitted to be taken by it
in accordance with the direction of the owners of a majority in aggregate principal amount of
the Bonds at the time outstanding relating to the time, method and place of conducting any
proceeding f or any remedy available to the Trustee, or exercising any trust or power conferred
upon the Trustee under this Indenture.
~d} The Trustee is not liable for any action taken by it in good faith and believed by it to
be authorized or within the discretion or rights or powers conferred upon it by this Indenture,
except for actions arising from the negligence or willful misconduct of the Trustee. The
permissive right of the Trustee to do things enumerated hereunder is not construed as a
mandatory duty.
fie} The Trustee is not deemed to have knowledge of any Event of Default hereunder
unless and until a responsible officer of the Trustee has actual knowledge thereof, or the Trustee
receives written notice thereof at its Corporate Trust Office. Except as otherwise expressly
provided herein, the Trustee is not bound to ascertain or inquire as to the performance or
observance of any of the terms, conditions, covenants or agreements herein or of any of the
documents executed in connection with the Bonds, or as to the existence of an Event of Default
hereunder or thereunder. The Trustee is not responsible far the City's payment of principal and
interest on the Bonds, the observance or performance by the City of any other covenants,
conditions or terms contained herein, or the validity or effectiveness of any collateral given to or
held by it. without limiting the generality of the foregoing, the Trustee is not responsible for the
recording or filing of any document relating to this Indenture ar of financing statements or of
any supplemental instruments or documents of further assurance as maybe required by law in
order to perfect the security interests in any collateral given to or held by it or reviewing the
contents of any financial statements furnished to the Trustee under Section 5.07 and may rely
conclusively on any representations made to it by the City concerning compliance with its
financial covenants hereunder.
~f} No provision in this Indenture shall require the Trustee to risk or expend its own
funds ar otherwise incur any financial liability hereunder. The Trustee shall be entitled to
receive interest on any moneys advanced by it hereunder, at the maximum rate permitted by
law.
fig} The Trustee may establish additional accounts or subaccounts of the funds
established hereunder as the Trustee deems necessary or prudent in furtherance of its duties
under this Indenture.
~h} The Trustee has no responsibility with respect to any information, statement, or
recital in any official statement, offering memorandum or any other disclosure material
prepared or distributed with respect to the Bonds.
~i} Before taking any action under Article VIII the Trustee may require indemnity
satisfactory to the Trustee be furnished to it to hold the Trustee harmless from any expenses
whatsoever and to protect it against any liability it may incur hereunder.
~j} The immunities extended to the Trustee also extend to its directors, officers,
employees and agents.
~k} The permissive right of the Trustee to do things enumerated in this Indenture is not
construed as a duty.
-25-
~l} The Trustee may execute any of the trusts or powers hereof and perform any of its
duties through attorneys, agents and receivers and is not answerable for the conduct of the
same if appointed by it with reasonable care.
gym} The Trustee is not considered in breach of or in default in its obligations hereunder
or progress in respect thereto in the event of enforced delay ~"unavoidable delay"} in the
performance of such obligations due to unforeseeable causes beyond its control and without its
fault or negligence, including, but not limited to, Acts of God or of the public enemy or
terrorists, acts of a government, acts of the other party, fires, floods, epidemics, quarantine
restrictions, strikes, freight embargoes, earthquakes, explosion, mob violence, riot, inability to
procure or general sabotage or rationing of labor, equipment, facilities, sources or energy,
material or supplies in the open market, litigation or arbitration involving a party or others
relating to zoning or other governmental action or inaction pertaining to the project, malicious
mischief, condemnation, and unusually severe weather or delays of suppliers or subcontractors
due to such causes or any similar event and/or occurrences beyond the control of the Trustee.
fin} The Trustee agrees to accept and act upon facsimile transmission of written
instructions and /or directions under this Indenture; provided, however, that: ~i} subsequent to
such facsimile transmission of written instructions and / or directions the Trustee shall forthwith
receive the originally executed instructions and/or directions, iii} such originally executed
instructions and/or directions shall be signed by a person as may be designated and authorized
to sign for the party signing such instructions and/or directions, and viii} the Trustee has
received a current incumbency certificate containing the specimen signature of such designated
person.
Section b.04. R-~ t to Rel,y on Documents. The Trustee is protected in acting upon any
notice, resolution, requisition, request, consent, order, certificate, report, opinion, facsimile
transmission, electronic mail, or other paper or document believed by it to be genuine and to
have been signed or presented by the proper party or parties. The Trustee may consult with
counsel, including, without limitation, Bond Counsel or other counsel of or to the City, with
regard to legal questions, and the opinion of such counsel shall be full and complete
authorization and protection in respect of any action taken or suffered by the Trustee hereunder
in accordance therewith.
The Trustee is not bound to recognize any person as the owner of any Bond unless and
until such Bond is submitted for inspection, if required, and such person's title thereto is
established to the satisfaction of the Trustee.
whenever in the administration of the trusts imposed upon it by this Indenture the
Trustee deems it necessary or desirable that a matter be proved or established prior to taking or
suffering any action hereunder, such matter sunless other evidence in respect thereof be herein
spec~flcally prescribed} may be deemed to be conclusively proved and established by a
Certificate of the City, which shall be full warrant to the Trustee for any action taken or suffered
in good faith under the provisions of this Indenture in reliance upon such Certificate, but in its
discretion the Trustee may abut has no duty to}, in lieu thereof, accept other evidence of such
matter or may require such additional evidence as to it may deem reasonable. The Trustee may
conclusively rely on any certificate or report of any Independent Accountant appointed by the
Clty,
Section b.05. Preservation and Ins ection of Documents. All documents received by the
Trustee under the provisions of this Indenture sha11 be retained in its possession and shall be
subject during normal business hours, and upon reasonable prior written notice, to the
inspection of the City and any owner, and their agents and representatives duly authorized in
writing.
_2~_
Section 6.D6. Com~ensafixon and Indemnification. ~a} The City shall pay to the Trustee
from time to time compensation for all services rendered under this Indenture and also all
expenses, charges, legal and consulting fees and other disbursements and those of its attorneys
~~nclud~ng any allocated costs of internal counsel}, agents and employees, rncurred in and about
the performance of its powers and duties under this Indenture. The Trustee has a first lien on
amounts held in the funds and accounts held by it hereunder to secure the payment to the
Trustee of all fees, costs and expenses, including compensation to its experts, attorneys and
counsel incurred in declaring such Event of Default and in exercising the rights and remedies
set forth in Article VIII.
fib} The City further shall indemnify the Trustee and its officers, directors, agents and
employees, against any loss, expense and liabilities which it may incur arising out of or in the
exercise and performance of its powers and duties hereunder, including the costs and expenses
of defending against any claim of liability and of enforcing any remedies hereunder and under
any related documents, but excluding any and all losses, expenses and liabilities which are due
to the negligence or willful misconduct of the Trustee, its officers, directors, agents or
employees.
~c} The obligations of the City under this Section 6.D6 shall survive resignation or
removal of the Trustee under this Indenture and payment of the Bonds and discharge of this
Indenture.
Section 6.D7. Accountin Records and Financial Statements, The Trustee shall at all times
keep, or cause to be kept, proper books of record and account, prepared in accordance with
corporate trust standards, in which complete and accurate entries shall be made of all
transactions made by if relating to the proceeds of the Bonds and all funds and accounts
established and held by the Trustee under this Indenture. Such books of record and account
shall be available for inspection by the City at reasonable hours, during regular business hours,
with reasonable prior notice and under reasonable circumstances. The Trustee shall furnish to
the City, at least semiannually, an accounting which may be in the form of its customary
statements} of all transactions relating to the proceeds of the Bonds and all funds and accounts
held by the Trustee under this Indenture.
27 -
ARTICLE VII
MODIFICATION OR AMENDMENTOF THIS INDENTURE
Section 7.01. Amendments Permitted.
~a} Amendment With Bond Owner Consent. This Indenture and the rights and obligations
of the City and of the Owners of the Bands may be modified or amended by the City and the
Trustee upon 'Written Request of the City at any time by the execution of a Supplemental
Agreement, but only with the written consent of the Owners of a majority in aggregate principal
amount of the Bonds then Outstanding with respect to all Bonds then Outstanding, exclusive of
Bonds disqualified as provided in Section 9.05. Any such Supplemental Agreement becomes
effective upon the execution and delivery thereof by the parties thereto and upon consent of the
requisite Bond Owners. No such modification or amendment may:
~i} extend the maturity of any Bond or reduce the interest rate thereon, or
otherwise alter or impair the obligation of the City to pay the principal thereof, or
Interest thereon, or any premium payable on the redemption thereof, at the time and
place and at the rate and in the currency pravided therein, without the written consent
of the Owner of such Bond, or
iii} reduce the percentage of Bonds required for the affirmative vote or written
consent to an amendment or modification, or
(iii) modify any of the rights or obligations of the Trustee without its written
consent.
fib} Amendment Without Bond Owner Consent. This Indenture and the rights and
obligations of the City and of the Owners of the Bonds may also be modified or amended at any
time by a Supplemental Agreement, without the consent of any Owners of the Bonds, but only
for any one or more of the following purposes:
~i} to add to the covenants and agreements of the City contained in this
Indenture, other covenants and agreements thereafter to be observed, or to limit or
surrender any rights or power herein reserved to or conf erred upon the City;
iii} to cure any ambiguity, or to cure, correct or supplement any defective
provrslon contained in this Indenture, or ~n any other respect whatsoever as the City
deems necessary or desirable, provided under any circumstances that such
modifications ar amendments do not materially adversely affect the interests of the
Owners in the opinion of Bond Counsel filed with the City and the Trustee;
viii} to modify, amend or add to the provisions herein to provide for the
establishment of different interest rate modes, tender or purchase provisions in
connection with the Bonds; or
Div} to modify, amend or add to the provisions herein to provide for credit
facilities, liquidity facilities or other financial products agreements in connection with
the Bonds.
~c} Prohibited Amendments. Notwithstanding the foregoing provisions of this Section 7.01,
no amendment of this Indenture shall be made which would permit the City to purchase the
Bonds either outright or in lieu of redemption for purposes other than retiring the Bonds.
_28_
~d~ Notice o f Amendments. The City shall deliver or cause to be delivered a draft of any
Supplemental Agreement to each rating agency at least 10 days prior to the effective date of
such Supplemental Agreement under this Section 7.01,
Section 7.02. Effect of Supylementa~ ._A~reement. From and after the time any
Supplemental Agreement becomes effective under this Article VII, this Indenture shall be
deemed to be modified and amended in accordance therewith, the respective rights, duties and
obligations of the parties hereto or thereto and all Owners, as the case may be, shall thereafter
be determined, exercised and enforced hereunder subject in all respects to such modification
and amendment, and all the terms and conditions of any Supplemental Agreement shall be
deemed to be part of the terms and conditions of this Indenture for any and all purposes.
Section 7,03, Endorsement ~ or Re lacement of Bonds After Amendment. After the
effective date of any amendment or modification hereof under this Article VII, the City may
determine that any or all of the Bonds shall bear a notation, by endorsement inform approved
by the City, as to such amendment or modification and in that case upon demand of the City
the Owners of such Bonds shall present such Bonds for that purpose at the Corporate Trust
Office of the Trustee, and thereupon a suitable notation as to such action shall be made on such
Bonds. In lieu of such notation, the City may determine that new Bonds shall be prepared and
executed in exchange for any or all of the Bonds and in that case upon demand of the City the
owners of the Bonds sha11 present such Bonds for exchange at the Corporate Trust Office of the
Trustee without cost to such Owners.
Section 7.04. Amendment by Mutual Consent. The provisions of this Article VII do not
prevent any Owner from accepting any amendment as to the particular Bond held by such
Owner, provided that due notation thereof is made on such Bond.
Section 7.05. Trustee's Reliance. The Trustee may conclusively rely, and is protected in
relying, upon a Certificate of the City and an opinion of counsel stating that all requirements of
this Indenture relating to the amendment or modification hereof have been satisfied and that
such amendments or modifications do not materially adversely affect the interests of the
Owners.
_29_
ARTICLE VIII
EVENTS DF DEFAULT AND REMEDIES
Section 8.01. Events of Default, Each of the following events constitutes an Event of
Default hereunder:
~a} Default in the due and punctual payment of the Debt Service when due and payable,
whether at maturity as therein expressed, by proceedings for redemption, or otherwise.
fib} Default by the City in the observance of any of the other covenants, agreements or
conditions on its part contained in this Indenture or in the Bonds, if such default has continued
for a period of 30 days after written notice thereof, specifying such default and requiring the
same to be remedied, has been given to the City by the Trustee or by the owners of not less
than 25°/o in aggregate principal amount of the Bonds at the time outstanding; provided, howeveY,
if rn the reasonable judgment of the City the default stated in the notice can be corrected, but not
within such 30-day period, such default shall not constitute an Event of Default if corrective
action is instituted by the City within such 30-day period and diligently pursued until the
default is corrected; and
~d} The filing of a petition in bankruptcy or the commencement of a proceeding under
the United States Bankruptcy Code or any other applicable law concerning insolvency,
reorganization or bankruptcy by or against the City, or if under the provisions of any other law
for the relief or aid of debtors any court of competent jurisdiction assumes custody or control of
the City or of the whole or any substantial part of its property.
Section 8,02. Remedies, If an Event of Default occurs under Section 8.0~ and is
continuing, the Trustee may at the written direction of the owners of a majority in aggregate
principal amount of the Bonds then outstanding the Trustee must, ~a} declare the principal of
the Bonds, together with the accrued interest thereon, to be due and payable immediately, and
upon any such declaration the same will become immediately due and payable, anything in this
Indenture or in the Bonds to the contrary notwithstanding, and fib} subject fo the provisions of
Sections 8.07 and 8.09, exercise any other remedies available to the Trustee and the Bond
Owners in law or at equity to enf arce the rights of the Bond owners under this Indenture.
without limiting the generality of the foregoing, the Trustee shall have the right by mandamus,
suit, action or proceeding, to compel the City and its members, officers, agents or employees to
perform each and every term, provision and covenant contained in this Indenture and in the
Bonds, and to require the carrying out of any or all such covenants and agreements of the City
and the fulfillment of all duties imposed upon it. If the maturity of the Bonds is accelerated
under the foregoing clause ~a}, the City may elect, in its sole discretion, to pay accelerated
principal and accrued interest on such principal to the date of acceleration Ito the extent unpaid
by the City} and the Trustee is required to accept such amounts.
Immediately upon becoming aware of the occurrence of an Event of Default, but in no
event later than fourteen Business Days following becoming aware of such occurrence, the
Trustee shall give notice of such Event of Default to the City by telephone confirmed in writing.
Such notice shall also state whether the principal of the Bands has been declared to be or have
immediately become due and payable. with respect to any Event of Default described in clauses
~a} or fib} above the Trustee shall, and with respect to any Event of Default described in clause
~c} above the Trustee in its sole discretion may, also give such notice to the Owners in the same
manner as provided herein for notices of redemption of the Bonds, which shall include the
staternent that interest on the Bands shall cease to accrue from and after the date, if any, on
which the Trustee declares the Bonds to become due and payable under the preceding
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paragraph abut only to the extent that principal and any accrued, but unpaid, interest on the
Bonds is actually paid on such date},
This provision, however, is subject to the condition that if, at any time after the principal
of the Bonds has been so declared due and payable, and before any judgment or decree for the
payment of the moneys due has been obtained or entered, the City deposits with the Trustee a
sum sufficient to pay all principal on the Bonds matured prior to such declaration and all
matured installments of interest cif any upon all the Bonds, with interest on such overdue
installments of principal and interest at an interest rate of 10°/o per annum, and the reasonable
fees and expenses of the Trustee, including fees and expenses of its attorneys, and any and all
other defaults known to the Trustee bother than in the payment of Debt Service due and payable
solely by reason of such declaration) has been made good or cured to the satisfaction of the
Trustee or provision deemed by the Trustee to be adequate has been made therefor, then, and in
every such case, the Owners of at least a majority in aggregate principal amount of the Bonds
then Outstanding, by written notice to the City and to the Trustee, may, on behalf of the
Owners of all of the Bonds, rescind and annul such declaration and its consequences. However,
no such rescission and annulment shall extend to or shall affect any subsequent default, ar shall
impair or exhaust any right or power consequent thereon.
Section 8.03. A lication of Funds U on Event of Default. All of the amounts held in the
funds and accounts established and held by the Trustee hereunder upon the occurrence of an
Event of Default, and all sums thereafter received by the Trustee hereunder, shall be applied by
the Trustee as follows and in the following order;
First, to the payment of any fees, costs and expenses incurred by the Trustee to protect
the interests of the Owners of the Bands; payment of the fees, costs and expenses of the Trustee
including fees and expenses of its counsel, including any allocated costs of internal counsel}
incurred in and about the performance of its powers and duties under this Indenture and the
payment of all fees, costs and expenses awing to the Trustee under Section 6.06, together with
interest on all such amounts advanced by the Trustee at the maximum rate permitted by law.
Second, to the payment of the whole amount then owing and unpaid upon the Bonds for
interest and principal, with interest on such overdue amounts at the respective rates of interest
borne by those Bonds, and in case such moneys are insufficient to pay in full the whole amount
so owing and unpaid upon the Bonds, then to the payment of such interest, principal and
interest on overdue amounts without preference or priority among such interest, principal and
interest on overdue amounts ratably to the aggregate of such interest, principal and interest on
overdue amounts.
Section 8.04. Power of Trustee to Control Proceedin s. if the Trustee, upon the
happening of an Event of Default, takes any action, by judicial proceedings or otherwise, in the
performance of its duties hereunder, whether upon its own discretion, or upon the request of
the owners of a majority in aggregate principal amount of the Bonds then Outstanding, it has
full power, in the exercise of its discretion for the best interests of the Owners of the Bonds, with
respect to the continuance, discontinuance, withdrawal, compromise, settlement or other
disposal of such action. The Trustee may not, unless there no longer continues an Event of
Default, discontinue, withdraw, compromise or settle, or otherwise dispose of any litigation
pending at law or in equity, if at the time there has been filed with it a written request signed by
the Owners of a majority in principal amount of the Outstanding Bonds hereunder opposing
such discontinuance, withdrawal, compromise, settlement or other disposal of such litigation.
Section 8.05. Limitation on Owners' Ri ht to Sue. Na Owner of any Bond has the right to
institute any suit, action or proceeding at law or in equity, f or any remedy under or upon this
indenture, unless:
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~a} said Owner has previously given to the Trustee written notice of the occurrence of an
Event of Default;
fib} the Owners of a majority in aggregate principal amount of all the Bonds then
Outstanding have requested the Trustee in writing to exercise the powers hereinbefore ranted
g
or to institute such action, suit or proceeding in its own name;
~c} said Owners have tendered to the Trustee indemnity reasonably acceptable to the
Trustee against the costs, expenses and liabilities to be incurred in compliance with such
request;
~d} the Trustee has failed to comply with such request for a period of 6o days after such
written request has been received by, and said tender of indemnity has been made to, the
Trustee; and
fie} no direction inconsistent with such written request has been given to the Trustee
during such 64 day period by the Owners of a majority in aggregate principal amount of the
Bonds then Outstanding,
Such notification, request, tender of indemnity and refusal or omission are hereby
declared, in every case, to be conditions precedent to the exercise by any Owner of any remedy
hereunder; rt being understood and intended that no one or more Owners has any right in any
manner whatever by his or their action to enforce any right under this Indenture, except in the
manner herein provided, and that all proceedings at law or in equity to enforce any provision of
this Indenture shall be 1nstltuted, had and maintained in the manner herein provided and for
the equal benefit of all Owners of the Outstanding Bonds.
The right of any Owner of any Bond to receive payment of the principal of and
premium, if any, and interest on such Bond as herein provided, is not impaired or affected
without the written consent of such Owner, notwithstanding the foregoing provisions of this
Section S.D5 or any other provxs~on of thzs Indenture.
Section 8.06. Non-waiver. Nothing in this Article VIII or in any other provision of this
Indenture or in the Bonds, affects or impairs the obligation of the City, which is absolute and
unconditional, to pay from the amounts pledged hereunder, the principal of and interest and
redemption premium (if any} on the Bonds to the Bond Owners when due and payable as
herein provided, or affects or zmpazrs the right of action, which is also absolute and
unconditional, of the Bond Owners to institute suit to enforce such payment by virtue of the
contract embodied in the Bonds.
A waiver of any default by any Owner does not affect any subsequent default or impair
any rights or remedies on the subsequent default. No delay or omission of any Owner to
exercise any right or power accruing upon any default shall impair any such right or power or
shall be construed to be a waiver of any such default or an acquiescence therein, and every
power and remedy conferred upon the Owners by the Bond Law or by this Article VIII maybe
enforced and exercised from time to time and as often as shall be deemed expedient by the
Owners.
If a suit, action or proceeding to enforce any right or exercise any remedy is abandoned
or determined adversely to the Owners, the City and the Owners will be restored to their
f ormer positions, rights and remedies as if such suit, action or proceeding had not been brought
ar taken.
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Section 8.47. Actions b Trustee as Attorne -in-Fact. Any suit, action or proceeding
which any Owner has the right to bring to enforce any right or remedy hereunder may be
brought by the Trustee for the equal benefit and protection of all Owners similarly situated and
the Trustee is hereby appointed hand the successive respective Owners by taking and holding
the Bonds shall be conclusively deemed so to have appointed it} the true and lawful attorney-in-
fact of the respective Owners for the purpose of bringing any such suit, action or proceeding
and to do and perform any and all acts and things for and on behalf of the respective Owners as
a class or classes, as may be necessary or advisable in the opinion of the Trustee as such
attorney-in-fact, subject to the provisions of Article Vl. Notwithstanding the foregoing
provisions of this Section 8,07, the Trustee has no duty to enforce any such right or remedy
unless it has been indemnified to its satisfaction for any additional fees, charges, expenses and
liabilities of the Trustee related thereto, including without limitation, fees and charges of its
attorneys and advisors.
Section 8.08. Remedies Not Exclusive. No remedy herein cant erred upon or reserved to
the Owners is intended to be exclusive of any other remedy. Every such remedy shall be
cumulative and shall be in addition to every other remedy given hereunder or now or hereafter
existing, at Iaw or inequity or by statute or otherwise, and may be exercised without exhausting
and without regard to any other remedy conferred by the Bond Law or any other law.
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ARTICLE IX
MISCELLANEgUS
Section 9.01. Benefits Limited to Parties. Nothing in this Indenture, expressed or implied,
is intended to give to any person other than the City, the Trustee and the gwners of the Bonds,
any right, remedy, claim under or by reason of this Indenture. Any cavenants, stipulations,
promises or agreements in this Indenture contained by and on behalf of the City shall be for the
sole and exclusive benefit of the Trustee and the gwners of the Bonds.
Section 9.02. Successor is Deemed Included in All References to Predecessor. Whenever
in this Indenture or any Supplemental Agreement either the City or the Trustee is named or
referred to, such reference shall be deemed to include the successors or assigns thereof, and all
the covenants and agreements contained in this Indenture by or on behalf of the City or the
Trustee bind and inure to the benefit of the respective successors and assigns thereof whether so
expressed or not.
Section 9.03. Defeasance of Bonds. If the City pays and discharges the entire
indebtedness on any Bonds in any one or more of the following ways:
~a} by paying or causing to be paid the principal of and interest on such Bonds, as and
when they become due and payable;
fib} by irrevocably depositing with the Trustee or an escrow bank, in trust, at or before
maturity, an amount of cash which, together with the available amounts then on deposit in the
funds and accounts established under this Indenture, in the opinion or report of an Independent
Accountant is fully sufficient to pay such Bonds, including all principal of such Bonds and the
interest and redemption premium, if any thereon;
~c} by irrevocably depositing with the Trustee or an escrow bank, in trust, direct non-
callable Federal Securities in such amount as an Independent Accountant determines will,
together with the interest to accrue thereon and available moneys then on deposit in any of the
funds and accounts established under this Indenture, be fully sufficient to pay and discharge
the indebtedness on such Bonds including all principal of such Bonds and the interest and
redemption premium, if any thereon} at or before maturity; or
~d} by purchasing such Bonds prior to maturity and tendering such Bonds to the Trustee
for cancellation;
and, if such Bonds are to be redeemed prior to the maturity thereof, notice of such redemption
has been duly given or provision satisfactory to the Trustee has been made for the giving of
such notice, then, at the election of the City, and notwithstanding that any such Bonds have not
been surrendered for payment, the obligations of the Trustee and the City under this Indenture
with respect to such Bonds shall cease and terminate, except only:
~i} the obligation of the Trustee to transfer and exchange Bonds hereunder,
iii} the obligation of the City to pay or cause to be paid to the gwners of such
Bonds, from the amounts so deposited with the Trustee, all sums due thereon, and
viii} the obligations of the City to compensate and indemnify the Trustee under
Section 6.0~.
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The City must file notice of such election with the Trustee. The Trustee shall pay any
funds thereafter held by it, which are not required for said purpose, to the City.
To accomplish defeasance, the City shall cause to be delivered ~i~ a report of an
Independent Accountant verifying the sufficiency of the escrow established to pay the Bonds in
full on the maturity or redemption date ~"Verification"}, iii} an Escrow Deposit Agreement, viii}
an opinion of Bond Counsel to the effect that the Bonds are no longer Outstanding and Div} a
certificate of discharge of the Trustee with respect to the Bonds. Each Verification and
defeasance opinion shall be acceptable in form and substance, and addressed, to the City and
Trustee.
In the case of a defeasance or payment of all of the Bonds outstanding in accordance
with this Section 9.03, the Trustee shall pay all amounts held by it in any funds or accounts
hereunder, which are not required for said purpose or for payment of amounts due the Trustee
under Section 6.06, to the City.
Section 9.04. Execution of Documents and Proof of ~wnershi b Qwners. Any request,
declaration or other instrument which this Indenture may require or permit to be executed by
any owner may be in one or more instruments of similar tenor, and shall be executed by such
Owner in person or by their attorneys appointed in writing.
The ownership of Bonds, and the amount, maturity, number and date of ownership
thereof, are conclusively proved by the Registration Books.
Any request, declaration or other instrument or writing of the Owner of any Bond binds
all future owners of such Bond in respect of anything done or suffered to be done by the City or
the Trustee in good faith and in accordance therewith. ,
Section 9.05. Dis ualif led Bonds. In determining whether the Qwners of the requisite
aggregate principal amount of Bonds .have concurred in any demand, request, direction,
consent or waiver under this Indenture, Bands which are owned or held by or for the account of
the City abut excluding Bonds held in any employees' retirement fund} must be disregarded
and deemed not to be outstanding for the purpose of any such determination. The Trustee will
not be deemed to have knowledge that any Bond is owned by the City unless the City is the
owner of such Bond or the Trustee has received written notice to that effect.
Section 9.06. waiver of Personal Liabilit . No member, officer, agent or employee of the
City shall be individually or personally liable for the payment of the principal of or interest or
redemption premium on the Bonds; but nothing herein contained shall relieve any such
member, officer, agent or employee from the performance of any official duty provided by law.
Seetion 9.07. Destruction of Canceled Bonds. whenever in this Indenture provision is
made for the surrender to the City of any Bonds which have been paid or canceled under the
provisions of this Indenture, a certificate of destruction duly executed by the Trustee shall be
deemed to be the equivalent of the surrender of such canceled Bonds and the City shall be
entitled to rely upon any statement of fact contained in any certificate with respect to the
destruction of any such Bonds therein referred to. The City shall pay all costs of any
microfilming of Bands to be destroyed.
Section 9.08. Notices. All written notices to be given under this Indenture shall be given
by first class mail or personal delivery to the party entitled thereto at its address set forth below,
or at such address as the party may provide to the other party in writing from time to time.
Notice shall be effective either ~a} upon transmission by facsimile transmission or other form of
telecommunication, fib} upon actual receipt after deposit in the United States mail, postage
35
prepaid, or ~c} in any other ease, upon actual receipt, The City or the Trustee ma , b written
notice to the other arties from ' ~ Y Y
time to time modify the address or number to which
. p
communications are to be given hereunder.
If to the City: City of Alameda
2263 Santa Clara Avenue
Alameda, CA 94501
Attention: Finance Director
Phone: X510} 747-4888
Fax: X510} 748-4696
If to the Trustee: Union Bank, N.A.
350 California Street,11th Floor
San Francisco, CA 94104
Attention: Corporate Trust Department
Phone: X415} 273-2518
Fax: X415} 273-2492
Section 9.09. Partial Invalidit . If any Section, paragraph, sentence, clause or phrase of
this Indenture is for any reason held illegal, invalid or unenforceable, such holdin will not
affect the validit of the remainin orti g
y g p ons of this Indenture. The City and the Trustee hereby
declare that they would have entered into this Indenture and each and ever other Section,
Y
paragraph, sentence, clause or phrase hereof and authorized the issue of the Bonds ursuant
thereto irres ective of the fact that an n p
p y a e ar more Sections, paragraphs, sentences, clauses, or
phrases of this Indenture maybe held illegal, invalid or unenforceable.
Section 9.10. Unclaimed Mone s. Anything contained herein to the contrar
notwithstandin , an move held b the Trustee in tru Y
g Y Y y st for the payment and discharge of the
rnterest or premium cif any} on or pr~nclpal of the Bonds which remains unclaimed for two
years after the date when the payments of such interest, premium and princi aI have become
a able, if such mane was held b p
p y y y the Trustee at such date, or for two years after the date of
deposit of such money if deposited with the Trustee after the date when the interest and
premium cif any} on and principal of such Bonds have become payable, shall be re aid b the
Trustee to the Cit as its absolute ro ert fr p Y
Y p p y ee from trust, and the Trustee shall thereupon be
released and discharged with respect thereto and the owners shall look only to the Cit for the
a rnent of the rind al of and interest and r Y
p Y p p edemption premium cif any} on such Bonds.
Section 9.11. Execution in Counterparts,. This Indenture may be executed in several
counterparts, each of which shall be an original and all of which shall constitute but one and the
same instrument.
Section 9.12. Governin Law. This Indenture shall be construed and overned in
accordance with the laws of the State f g
o California.
-36-
IN WITNESS WHEREaF, the CITY OF ALAMEDA has caused this Indenture to be
signed in its name by its officer (hereunto duly authorized and attested to by its City Clerk, and
UNION BANK, N.A., in token of its acceptance of the trusts created hereunder, has caused this
Indenture to be signed in its corporate name by its officer thereunto duly authorized, all as of
the day and year first above written.
Attest:
Name
City Clerk
CITY ~F ALAMEDA
By
Name
Title
UNIDN BANK, N.A.
By
Narne
Title
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Quint & Thimmig LLP
RATE OF INTEREST
~~
Q
REGISTERED 4wNER:
PRINCIPAL AMOUNT:
~3/3~/09
EXHIBIT A
FDRM DF CURRENT INTEREST BDND
CITY DF ALAMEDA
2009 Taxable Pension Dbliga#ion Bond
Current Interest Bond}
MATURITY DATE
1,
CEDE & C~.
DATED DATE ~ CUSIP
,2009
DOLLARS
The CITY QF ALAMEDA, a charter city and municipal corporation organized and
existing under the Constitution and laws of the State of California the "City"} for value
received, hereby promises to pay to the Registered Owner stated above, or registered assigns,
on the Maturity Date ,stated above subject to any right of prior redemption hereinafter
mentioned}, the Principal Amount stated above, in lawful money of the United States of
America; and to pay interest thereon in like lawful money from the Interest Payment Date next
preceding the date of authentication of this Bond sunless this Bond is authenticated as of a day
during the period commencing after the fifteenth day of the month preceding an Interest
Payment Date and ending on or before such Interest Payment Date, in which event it shall bear
interest from such Interest Payment Date, ar unless this Bond is authenticated on or before
15, , in which event it shall bear interest from the Issue Date stated above} until
payment of such principal sum shall be discharged as provided in the Indenture hereinafter
mentioned, at the Interest Rate per annum stated above, payable semiannually on each
1 and 1, commencing 1, beach, an "Interest Payment Date"}.
The principal far redemption price} hereof is payable by check at the Corporate Trust
office has defined in the Indenture referred to below} of Union Bank, N.A. together with an
~, y
successor trustee under the Indenture, the Trustee }. Interest hereon is payable by check of the
Trustee mailed on each Interest Payment Date to the Registered owner as of the 15~h day of the
month preceding each Interest Payment Date except with respect to payment of defaulted
interest as provided in the Indenture hereinafter referred to} at the address shaven on the
registration books maintained by the Trustee. Payment of interest will be made by wire transfer
in immediately available funds to an accounf in the United States of America to any owner of
Bonds in the aggregate principal amount of $1,000,000 or more who shall furnish written wire
instructions to the Trustee before the 15~' day of the month preceding the applicable Interest
Payment Date.
This Bond is one of a duly authorized issue of bonds of the City designated as its "City
of Alameda 2009 Taxable Pension Qblrgation Bonds " the "Bonds"}, in the aggregate principal
amount of $ ,authorized under Resolution No. ,adopted by the City
Council of the City on April 7, 2009 the "Authorizing Resolution"}, and issued under an
Indenture of Trust, dated as of , 20~ the "Indenture"}, by and between the City
and the Trustee. The Bonds have been issued for the purpose of refinancing obligations of the
City to
Exhibit A 0019.16
Page I
Reference is hereby made to the Indenture ~a copy of which is on file at said Office of the
Trusteed and all indentures supplemental thereto and to the Authorizing Resolution for a
description of the rights thereunder of the owners of the Bonds, of the nature and extent of the
security, of the rights, duties and immunities of the Trustee and of the rights and obligations of
the City thereunder. The Registered Owner of this Bond, by acceptance hereof, assents and
agrees to all the provisions of the Indenture.
The principal of and interest on the Bonds are payable from any source of legally
available funds of the C1ty, including arnaunts on deposit ~n the General Fund of the City. The
Bonds are not secured by a pledge of or lien any specific revenues, income or funds of the City.
The obligations of the Crty under the Bands, including the obligation to make all payments of
principal of and interest on the Bonds when due and the obligation of the City to make the
deposits required hereunder for the security of the Bonds, are obligations of the City imposed
by law and are absolute and unconditional, without any right of set-off or counterclaim. The
Bands do not constitute an obligation of the City for which the City is obligated to levy or
pledge any form of taxation. Neither the Bonds nor the obligations of the City to make
payments on the Bonds constitute an indebtedness of the City, the State of California, or any of
its political subdivisions in contravention of any constitutional or statutory debt (imitation or
restriction.
The City Council is obligated in each fiscal year to appropriate all amounts from such
funds as may be required to pay the aggregate amount of the principal of and interest on the
Bonds coming due and payable in such fiscal year. As provided in the indenture, not later than
August 15 in each fiscal year, commencing August I5, 2009, the City will transfer to the Trustee
an amount required for the payment of debt service coming due on the Bonds during such fiscal
year, consisting of the aggregate amount of prrnc~pal of and interest on the Bonds coming due
and payable in such fiscal year, less the amount then held by the Trustee in the Debt Service
Fund which is established under the indenture.
This Bond is transferable and exchangeable by the Owner, in person or by his attorney
duly authorized in writing, at the Corporate Trust Office, but only in the manner; subject to the
lunztatlons and upon payment of any charges provided in the indenture and upon surrender
and cancellation of this Bond. Upon such transfer, a new Bond or Bonds of an authorized
denomination or denomina#ions for the same aggregate principal amount will be delivered to
the transferee in exchange for this Bond. The District, the Corporation and the Trustee may treat
the Owner as the absolute owner hereof for all purposes, whether or not the payments
represented by this Bond shall be overdue and the District, the Corporation and the Trustee
shall not be affected by any notice to the contrary.
The Bonds are subject to optional redemption [TO COME]
The Bonds maturing on 1, ,are subject to mandatory redemption in part on
~., ,and on 1, , at a redemption price equal to the principal amount thereof to
be redeemed, together with accrued interest to the date fixed for redemption, without premium,
as follows:
Year Principal Amount of
~____ 1~ Bonds to be Redeemed
tMaturity
Exhibit A
Page 2
In the event that the Trustee prepays Bonds maturing on ~, , in part but not in
whole as described in the paragraphs above entitled relating to optional redemption, the
amount of Bonds to be redeemed in each subsequent year will be reduced to correspond to the
principal of the Bonds remaining unpaid following such redemption.
Notice of redemption is to be given by the Trustee by rnailing a redemption notice by
first class mail at least thirty X30} days and not more than sixty X60} days prior to the date fixed
far redemption to the registered owner of the Bond or Bonds to be redeemed at the address
shown an the Bond registration books maintained by the Trustee. Notice of redemption having
been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the
redemption date, become due and payable at the redemption price therein specified, and from
and after such date sunless the District shall default in the payment of the redemption price}
interest with respect to such Bonds or portions of Bonds shall cease to accrue and be payable.
The Trustee has no obligation or liability to the registered owners of the Bonds to make
payments of principal or interest with respect to the Bonds. The Trustee's sole obligations are to
administer, for the benefit of the registered owners of the Bonds, the various funds and
accounts established under the Indenture. The Trustee makes no representation concerning the
recitals contained in the Indenture or in this Bond.
Unless this Bond is presented by an authorized representative of The Depository Trust
Company, a New York corporation ~"DTC"}, to the Trustee for registration of transfer,
exchange, or payment, and any Bond issued is registered in the name of Cede & Co. or in such
other name as is requested by an authorized representative of DTC hand any payment is made
to Cede & Ca. or to such other entity as ~s requested by an authorized representative of DTC},
ANY TRANSFER, PLEDGE, OR ETHER USE HEREOF FAR VALUE ~R QTHERwISE BY QR
TO ANY PERSnN IS WRaNGFUL inasmuch as the registered owner hereof, Cede & Co., has
an interest herein.
- It is hereby certified and recited that any and all things, conditions and acts required to
exist, to have happened and to have been performed precedent to and in the issuance of this
Bond do exist, have happened and have been performed in due time, form and manner as
required by the Authorizing Resolution, and by the constitution and laws of the State of
California, and that the amount of this Bond, together with all other indebtedness of the Cit ,
y
does not exceed any Iimit prescribed by the Authorizing Resolution and is not in excess of the
amount of Bonds permitted to be issued under the Indenture.
This Bond is not entitled to any benefit under the Indenture, or is not valid or obligatory
for any purpose, until the certificate of authentication hereon endorsed has been signed by the
Trustee.
Exhibit A
Page 3
IN WITNESS wHERE~F, City of Alameda has caused this Bond to be executed in its
name and on its behalf by the facsimile signature of the and attested to by the
f acsimiie signature of its City Clerk, all as of the Issue Date stated above.
Attest
City Clerk
CITY aF ALAMEDA
By
TRUSTEE'S CERTIFICATE ~F AUTHENT~CATI~N
This is one of the Bonds described in the within-mentioned Indenture.
Dated:
UNION BANK, N.A.,
as Trustee
By
Authorized Signatory
Exhibit A
Page 4
ASSIGNMENT
For value received, the undersigned does} hereby seil, assign and transfer unto
Name, Address and Tax Identification or Social Security Number of Assignee}
the within Bond and do(es) hereby irrevocably constitute and appoint
attorney, to transfer the same on the registration books of the Trustee, with full power of
substitution in the premises.
Dated:
9
Signature guaranteed:
NOTICE; Signatures} must be guaranteed by an
eligible guarantor institution banks, stock brokers,
savings and loan associations and credit unions with
membership in an approved signature guarantee
medallion program} pursuant to Securities and
Exchange Commission Rule 17 Ad-I5.
NOTICE: The signatures} on this Assignment must
correspond with the names} as written on the face of
the within Bond in every particular, without alteration
or enlargement or any change whatsoever.
Exhibit A
Page 5
Quint & Thirnmig LLP
FORM DF CAPITAL APPRECIATION BOND
CITY DF ALAMEDA
2009 Taxable Pension Dbliga~ion Bond
~Capi~al Appreciation Band}
ACCRETION RATE MATURITY DATE DATED DATE CUSIP
°/° 1, .~., 2009
X3/31/09
EXHIBIT C
REGISTERED OWNER; CEDE & CO.
DENOMIlVATIONAL AMOUNT.
DOLLARS
MATURITY AMOUNT:
The CITY OF ALAMEDA, a charter city
existing under the Constitution and laws of the
received, hereby promises to pay to the Registered
on the Maturity Date stated above subject to
mentioned, the Maturity Amount stated above,
America, such Maturity Value being comprised o.
accreted thereon.
DOLLARS
and municipal corporation organized and
State of California the "City"} for value
Owner stated above, or registered assigns,
any right of prior redemption hereinafter
in lawful money of the United States of
~ the Denominational Amount and interest
The Maturity Amount is payable by check at the Corporate Trust Office has defined in
the Indenture referred to below of Union Bank, N.A. ~tagether with any successor trustee
under the Indenture, the "Trustee"~.
This Bond will not bear current interest but will accrete interest, compounded on each
~..~.~_ I and ____ ~, commencing ____ 1, 2009, at the Accretion Rate specified above to the
Maturity Date, assuming that in any such semiannual period the sum of such compounded
accreted interest and the Denomination Amount such sum being herein called the "Accreted
Value"} increases in equal daily amounts on the basis of a 360-day year consisting of twelve
30-day months, Accreted Value is payable in lawful money of the United States of America by
check of the Trustee upon presentation and surrender hereof at the Corporate Trust Office.
This Bond is one of a duly authorized issue of bonds of the City designated as its "City
of Alameda 2009 Taxable Pension Obligation Bonds " the "Bonds"}, in the aggregate
principal amount of $__ ___, authorized under Resolution No. ,adopted by the
City Council of the City on April 7, 2009 the "Authorizing Resolution"~, and issued under an
Indenture of Trust, dated as of ___________, 20.~~. the "Indenture"~, by and between the City
and the Trustee. The Bonds have been issued for the purpose of refinancing obligations of the
City t o ---------------
Reference is hereby made to the Indenture ~a copy of which is on file at sand Offiee of
the Trusteed and all indentures supplemental thereto and to the Authorizing Resolution for a
description of the rights thereunder of the owners of the Bonds, of the nature and extent of the
security, of the rights, duties and immunities of the Trustee and of the rights and obligations
ExhibitB a1~19.1b
Page 1
of the City thereunder: The Registered Owner of this Bond, by acceptance hereof, assents and
agrees to all the provisions of the Indenture.
The Maturity Amount is payable from any source of legally available funds of the City,
including amounts on deposrt i~ the General Fund of the City. The Bonds are not secured by a
pledge of or lien any specific revenues, income or funds of the City. The obligations of the City
under the Bonds, including the obligation to make all payments of principal of and interest on
the Bonds when due and the obligation of the City to make the deposits required hereunder far
the security of the Bonds, are obligations of the City imposed by law and are absolute and
uncondrtlonal, without any right of set-off or counterclaim. The Bonds do not constitute an
obligation of the City for which the City is obligated to levy or pledge any form of taxation.
Neither the Bonds nor the obligations of the City to make payments on the Bonds constitute an
indebtedness of the City, the State of California, or any of its political subdivisions in
contravention of any constitutional or statutory debt limitation or restriction.
The City Council is obligated in each fiscal year to appropriate all amounts from such
funds as maybe required to pay the aggregate amount of the principal of and interest on the
Bonds coming due and payable in such fiscal year. As provided in the Indenture, not later than
August 15 nn each fiscal year, commencing August 15, 2009, the City will transfer to the
Trustee an amount required for the payment of debt service coming due on the Bonds during
such fiscal year, consisting of the aggregate amount of principal of and interest on the Bonds
coming due and payable m such fiscal year, less the amount then held by the Trustee in the
Debt Service Fund which is established under the Indenture.
~~- This Bond is transferable and exchan eable b the owner, in erson orb his attorne
g Y p Y Y
duly authorized in writing, at the Corporate Trust Office, but only in the manner, subject to
the limitations and upon payment of any charges pravided in the Indenture and upon
surrender and cancellation of this Bond. Upon such transfer, a new Bond or Bonds of an
authorized denomination or denominations for the same aggregate principal amount will be
delivered ~to the transferee in exchange for this Bond. The District, the Corporation and the
Trustee may treat the owner as the absolute owner hereof for all purposes, whether or not the
payments represented by this Bond shall be overdue and the District, the Corporation and the
Trustee shall not be affected by any notice to the contrary.
The Bonds are subject to optional redemption [TO COME]
Notice of redemption is to be given by the Trustee by mailing a redemption notice by
first class mail at least thirty X30} days and not more than sixty (b0} days prior to the date
fixed for redemption to the registered owner of the Band or Bonds to be redeemed at the
address shown on the Band registration books maintained by the Trustee. Notice of
redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed
shall, on the redemption date, become due and payable at the redemption price therein
specified, and from and after such date sunless the District shall default in the payment of the
redemption price} interest with respect to such Bands or portions of Bonds shall cease to
accrue and be payable.
The Trustee has no obligation or liability to the registered owners of the Bonds to make
payments of principal or interest with respect to the Bonds. The Trustee's sole obligations are
to administer, for the benefit of the registered owners of the Bonds, the various funds and
accounts established under the Indenture. The Trustee makes no representation concerning the
recitals contained m the Indenture or m this Bond.
Unless this Bond is presented by an authorized representative of The Depository Trust
Company, a New York corporation ~"DTC"}, to the Trustee for registration of transfer,
Exhibit B
Page 2
exchange, or payment, and any Bond issued is registered in the name of Cede & Co. or in such
other name as is requested by an authorized representative of DTC hand any payment is made
to Cede & Co. or to such other entity as is requested by an authorized representative of DTC~,
ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede ~ Co., has
an interest herein.
It is hereby certified and recited that any and all things, conditions and acts required to
exist, to have happened and to have been performed precedent to and in the issuance of this
Bond do exist, have happened and have been performed in due time, form and manner as
required by the Authorizing Resolution, and by the constitution and laws of the State of
California, and that the amount of this Bond, together with ail other indebtedness of the City,
does not exceed any limit prescribed by the Authorizing Resolution and is not in excess of the
amount of Bonds permitted to be issued under the Indenture.
This Bond is not entitled to any benefit under the Indenture, or is not valid or obligatory
for any purpose, until the certificate of authentication hereon endorsed has been signed by the
Trustee.
IN WITNESS WHEREOF, City of Alameda has caused this Bond to be executed in its
name and on its behalf by the facsimile signature of the ____ _.._.~.~_ and attested to by the
facs~m~ie signature of Its City Clerk, all as of the Issue Date stated above.
CITY OF ALAMEDA
Attest
City Clerk
By
TRUSTEE'S CERTIFICATE ~F AUTHENTICATIQN
This is one of the Bonds described in the within-mentioned Indenture.
Dated:
UNION BANK, N.A.,
as Trustee
By
Authorized Signatory
ExhibitB
Page 3
ASSIGNMENT
For value received, the undersigned does} hereby sell, assign and transfer unto
Name, Address and Tax identification or Social Security Number of Assignee}
the within Bond and do(es) hereby irrevocably constitute and appoint
attorney, to transfer the same on the registration books of the Trustee, with full power of
substitution in the premises.
Dated;
9 ~._________
Signature Guaranteed;
NOTICE: Signature(s) must be guaranteed by an
eligible guarantor institution banks, stock brokers,
savings and loan associations and credit unions with
membership in an approved signature guarantee
medallion program) pursuant to Securities and
Exchange Commission Rule 17 Ad-15.
NOTICE: The signatures) on this Assignment must
correspond with the names} as written on the face of
the within Bond in every particular, without
alteration or enlargement or any change whatsoever.
Exhibit B
Page 4
EXHIBIT C
TABLE ~F ACCRETED VALUES ~F THE
CAPITAL APPRECIATION BANDS
Exhibit C
I, the undersigned, hereby certify that the foregoing Resolution duly and
regularly adopted by and passed by the Council of the City of Alameda during the
Regular Meeting of the City Council on the It"day of April, 2009, by the followin
g
vote to wit:
AYES:
NQES:
ABSENT:
ABSTENTIONS:
IN VIIITNESS, UVHERE~F, I have hereunto set my hand and affixed the
official seal of said City this St"day of April, 2909.
Lara Weisiger, City Clerk
City of Alameda
C ITY ~ F ALAM E DA
Memorandum
To: Honorable Mayor and
Members of the City Council
From: David Brandt
Acting City Manager
Date: April 1, 2009
Re: Adopt a Resolution Authorizing the Acting City Manager to Submit an
Application for Measure B Paratransit Funding for Fiscal Year 200912010,
and to Execute all Necessa Documents to Im lement the Pro'ect
BACKGROUND
The Americans with Disabilities Act DADA} requires transit agencies to offer equivalent
Paratransit service for persons certified as unable to drive or take public transit. Paratransit
services must be made available to eligible users within 314 mile of the existing fixed route
transit during the normal operating hours of the fixed route services. In Alameda, this
mandated service is provided by East Bay Paratransit ~EBP}. While most of Alameda is
within 314 mile of AC Transit routes, there are some service gaps, including locations that
are without bus service on weekends, or at certain times of the day.
Measure B Sales Tax funds provide a dedicated funding source for nan-mandated, Iocally-
based Paratransit services for people with disabilities and non-disabled seniors in Alameda
County. The City of Alameda has used these funds to provide supplemental Paratransit
services to address the service gaps, as well as to provide additional non-mandated
services. To receive these funds, the Alameda County Transportation Improvement
Authority ~ACTIA}, which administers Measure B funds, requires that each jurisdiction
submit a resolutio,~ authorizing the City to apply for these funds along with its application.
DISCUSSION
The City's Paratransit funding application for fiscal year 200912010 continues current
Paratransit services. The City's program provides services for people with disabilities and
far non-disabled seniors. One of the main goals underlying the proposal is to continue to
rely on EBP as the primary provider of Paratransit services in Alameda. The City's program
has a total of 1,044 active riders, and staff will try to expand this number to 1,200 in fiscal
year 2009!2010. in preparing the program proposal, staff sought input from the
Commission on Disability Issues, Mastick Senior Center Advisory Board, and AARP,
The fiscal year 200912010 ACTIA funding application includes the following Paratransit
programs:
City Council
Report Re:
Agenda lten~ #4-E
o4-D7.49
Honorable Mayor and
Members of the City Council
April 1, 2009
Page 2 of 3
1. Supplementary Taxi Service x$1,000}: The Supplementary Taxi Service provides
service for EBP-certified Alameda residents who need service at times when EBP
does not operate. EBP operations are tied to the hours of AC Transit routes. This
program also provides taxi service for participants with critical medical appointments
during EBP's 21-day certification period.
2. Medical Return Trip Improvement Program -MRTIP x$45,000}; The MRTIP
provides certified EBP residents with a free taxi return trip home from medical
appointments. Since EBP requires reservations a day in advance, medical
appointments are not always well served by the County's program, and the City's
program provides assistance with urgent medical appointments.
3. Premium Taxi Service x$3,000}: The Premium Taxi Service program serves
certified EBP users; residents l5 years and alder, regardless of disability; and
residents 70 years and older that do not possess a driver's license. The Premium
Taxi Service provides a 50°/o discount for taxi rides with the City of Alameda's
transportation provider. The service is not limited to medicaltrips, and eligible riders
are required to purchase the discount coupons in advance.
4. Flu Shot Taxi Service x$1,004}: The City offers a Flu Shot Taxi Service, which is
coordinated with the various flu shot clinics provided to residents throughout the
city. The Flu Shot Taxi Service program serves certified EBP users; residents 75
years and older, regardless of disability; and residents 70 years and older that do
not possess a driver's license.
5. Group Trips x$25,000}; This program provides a range of trip types, including
monthly trips for seniors through the Mastick Senior Center, a shopper's shuttle,
subscription group trips from convalescent homes, Alameda Recreation & Park
Department cultural event class trips, and the Annual Nursing Home Picnic Group
Trip.
6. EBP Tickets x$38,000}: Alameda residents who are certified EBP users are eligible
to receive up to two free books of coupons ten coupons per book}, subject to
availability, through this program.
1. Scholarship Program x$1,000}: For "very low income" disabled households, as
defined by the United States Department of Housing and Urban Development,
certified EBP users are eligible to receive up to two free EBP ticket books each year
with the purchase of two ticket books at the regular price.
8. Meal Delivery x$49,000}; This amount is provided to Alameda Meals on ~Ilheels, a
non-profit organization, which delivers healthy and diet-specific meals to
homebound individuals in Alameda seven days per week.
9. Program Management x$30,000}: This amount funds Public Works staff time to
complete ACTIA application and reporting requirements, review program data and
invoices, participate in ACTIA's paratransit committees, renew or establish new
contracts, conduct public outreach meetings, and coordinate with the transportation
providers and Mastick staff.
Honorable Mayor and
Members of the City Council
April 7, 2009
Page 3 of 3
10. Customer Service and Outreach x$19,000}: This amount funds implementation of
the marketing program, including printing program brochures, running print ads, and
producing promotional mailings. This amount funds printing, postage, and staff time
associated with conducting basic program outreach.
FINANCIAL IMPACT
The Paratransit Program, asoutlined above, totals$212,OOD. The programwill befunded
from an ACTIA Measure B funding allocation x$154,150},fares from taxi coupon and group
trip ticket revenues x$5,750},fund balance interest x$5,000},and fund balance x$44,100}.
An available Paratransit fund balance of $90,323 still remains. ACTIA requires the funding
application include an adopted City Council resolution. Applying for these funds does not
affect the General Fund.
MUNICIPAL CODEIPOLICY DOCUMENT CROSS REFERENCE
This action does not affect the Alameda Municipal Code. The City's Paratransit Program is
consistent with the General Plan Transportation Elemen# objective:
• Objective 4.1.5 -~ Consider the transportation needs of the community, including
those with limited mobility options.
RECOMMENDATION
Adopt a resolution authorizing the Acting City Manager to submit an application for
Measure B Paratransit Funding for fiscal year 240912010, and to execute all necessary
documents to implement the project.
Resp ull submitted,
( `
Matthew T. Naclerio
Public Works Director
~ i ~~
_~~ ;E j f
~,',_•~
i , r' V ~+
~' y
:~ `
~`~..B~i: Gail Payne ~~
Trans ortation coordinator
p
Approved astofundsand account,
Ann Marie allant
Interim Fi ce Director
MTN:GP:gc
cc: Measure B Watchdog Committee
CITY OF ALAMEDA RESOLUTIaN NQ
AUTHQRIZE THE ACTING CITY MANAGER TQ SUBMIT AN
E
APPLICATION FGR MEASURE B PARATRANSIT FUNDING FGR FISCAL
0
'~ YEAR 200912010, AND TQ EXECUTE ALL NECESSARY DQCUMENTS
° ~ TQ IMPLEM
ENT THE PRQJECT
a
c~
~ y,,
a~ ~ 1NHEREAS, the Americans with Disabilities Act DADA} requires that
v " e uivalent aratransit service be rovided within 314 mile '
,~ q p p and during the regular
~ operating hours of fixed route transit services for those who are determined to be
~ eligible for such services; and
v11HEREAS, Alameda residents who are seniors or who have disabilities
have transportation needs that are not always met by the existing fixed route
transit services; and
1111HEREAS, the City of Alameda receives an allocation from Measure B
sales tax revenue, administered by the Alameda Count Trans ortation
Y p
Improvement Authority ~ACTIA}, to provide paratransit services for seniors and
people with disabilities to supplement ADA-mandated services; and
vtivHEREAS, the City of Alameda allocation of Measure B Paratransit funds
for Fiscal Year 2009/201 D is estimated to be $212,000; and
VIIHEREAS, the City of Alameda plans to submit a grant application to
ACTIA far funds from the Measure B Paratransit funding for the following project:
The Medical Return Trip Improvement Program provides free
taxi service to East Bay Paratrasit EBP}-certified residents to
return home from medical appointments. The Premium Taxi
Service provides taxi services, not limited to medical trips, at
504/~ discount for eligible residents. The Flu Shot Taxi Service
provides eligible residents with a free round-trip taxi service
tolfrom a flu shot clinic of their choice.
Free EBP coupons, scholarships, group trips, meal delivery
through Alameda Meals on Uvheels and supplemental
paratransit service before or after EBP hours also are offered.
NQW, THEREFGRE, BE IT RESOLVED by the Alameda City Council that
the Acting City Manager is authorized to submit an application for Measure B
Paratransit funds for Fiscal Year 2009/2010 in the amount of $212,000; and
BE 1T FURTHER RESGLVED that the Acting City Manager is authorized to
execute all necessary documents to implement the project.
***~**
Resolution 4-E CC
04-D7-D9
1, 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 7th day of April, 2409, by the following vote to
wit:
AYES:
NOES:
ABSENT:
ABSENTIaNS:
1N WITNESS, WHEREOF, I have hereunto set my hand and affixed the
official seal of said City this 8#h day of April 2009.
Lara Weisiger, City Clerk
City of Alameda
CITY OF ALAMEDA
Memorandum
To: Honorable Mayor and
Members of the City Council
From: David Brandt
Acting City Manager
Date; April 1, 2009
Re; Adopt a Resolution Authorizing the Acting City Manager to Submit a
Request to the Metropolitan Transportation Commission for the Allocation
of Fiscal Year 200912010 Transportation Development Act, Article 3
Funding, in the Amount of $68,000 to Fund the Local Match for the Safe
Routes to School BicyclelPedestrian improvement Projects, and to
Execute all Necessary Documents
BACKGROUND
Caltrans is currently soliciting applications for fiscal year 200912010 for the State Safe
Routes to School ~SR2S} grant program, which focuses on construction projects to
increase bicycling and walking to school. There is $48.5 million available for this grant
cycle, and a 10°/° local match is required.
The Metropolitan Transportation Commission ~MTC} has allocated funds for
Transportation Development Act ~TDA}, Article 3, PedestrianlBicycle Projects, for fiscal
year 200912010. All cities and counties in the nine county MTC region may apply for
TDA Article 3 funds for pedestrianlbicycle purposes. Alameda County funds are
allocated and apportioned by planning area population. The City's allocation may be
used as the local match for the SR2S grant.
DISCUSSION
During the past few years, Public Works staff has been working with the Alameda
Unified School District ~AUSD} to increase the number of students walking or biking to
school. Projects have been successfully implemented for the east side of the main
island. As part of this on-going program, staff has studied potential pedestrian and
bicycling improvements for Franklin, Lum, and Woad schools. Based on the feedback
from AUSD staff and engineering analyses, Public Works staff developed a plan to
improve access to these schools by providing the following;
1. Curb bulb-outs at Grand Street and San Jose Avenue near Franklin.
2. Four curb ramps at Lum drop-offlpick-up island.
City Council
Report Re:
Agenda item #4-F
o4-Q7.09
Honorable Mayor and
Members ofthe City Council
April 7, 2009
Page2of3
3. Lighted crosswalk at mid-block crossing on Grand Street to connect public
walkway with Wood entrance and Lum access.
4. Public walkway improvements for three adjacent public walkways to Lum and
Wood .
5. Updated school area signs for Lum and Wood.
6. Scooter and skateboard racks at Wood for secure scooter and skateboard
parking.
1. Bicycling and walking education program at all three schools.
8. Project evaluation.
The estimated cost for the project is $680,000 and a local match of $68,000 is required.
Staff proposes to use the City's Fiscal Year 2009120 0 TDA allocation as the local
match. MTC requires that the City Council adopt a resolution to allocate TDA funds.
FINANCIAL IMPACT
The estimated total cost for the SR2S project is $650,000. This project would be 90°/a
funded by the State SR2S grant monies, which total $612,D00. A 10°/0 local match of
$68,000 would be required from TDA BicyclelPedestrian funds. This project will not
impact the General Fund.
MUNICIPAL CODEIPOLICY DOCUMENT CROSS REFERENCE
This action does not affect the Alameda Municipal Code. The proposed projec#
supports the following General Plan Transportation Element Objectives:
• Objective 4. ~ .1.b -- Enhance pedestrian safety and mobility, particularly in high
pedestrian use areas, applying methods consistent with the hierarchy
classification of street identified in 4.1.1.a.
• Objective 4.3.2 ~-Enhance opportunities for pedestrian access and movement by
developing, promoting, and maintaining pedestrian networks and environments.
• Objective 4.3.3 -Promote and encourage bicycling as a mode of transportation.
• Objective 4.4.5 -Work with AUSD to include transportation choice awareness in
education in the schools.
Honorable Mayor and
Members of the City Council
REC~MMENDATIaN
April 1, 2009
Page3of3
Adopt a resolution authorising the Acting City Manager to submit a request to the MTC
for the allocation of fiscal year 2009/2010 TDA, Article 3 funding, in the amount of
$68,000 to fund the local match for the SR2S bicyclelpedestrian improvement projects
and to execute all necessary documents to implement the projects.
Respec Il~bmitted,
.~
Matthew T. Naclerio
Public Works Director
Approved as to funds and account,
Ann Maria llant
interim Fina ce Director
!.;/ `I
By: Gail Pa C~-1~
Y
Transportation Coordinator
MTN:gc
0
~.
C
~.
~.
a
CITY GF ALAMEDA RESOLUTION NO,
AUTHORIZING THE ACTING CITY MANAGER TO SUBMIT A
REQUEST TO THE METROPOLITAN TRANSPORTATION
COMMISSION FOR THE ALLOCATION OF FISCAL YEAR
2009/2010 TRANSPORTATION DEVELOPMENT ACT ARTICLE 3
FUNDING IN THE AMOUNT OF $68,000 TO FUND THE LOCAL
MATCH FOR THE SAFE ROUTES TO SCHOOL
BIKE/PEDESTRIAN IMPROVEMENT PROJECTS AND TO
AUTHORIZE THE ACTING CITY MANAGER TO EXECUTE ALL
NECESSARY DOCUMENTS
WHEREAS, Article 3 of the Transportation Development Act TDA}, Public
Utilities Code ~PUC} Section 99200 et sec.., authorizes the submission of claims to
a regional transportation planning agent for the fundin of ro~ects exclusive)
Y 9 p J y for
the bereft or use of pedestrians and bicyclists; and
WHEREAS, the Metropolitan Transportation Commission MTC}, as the
regional transportation planning agency for the San Francisco Bay region, has
adopted MTC Resolution No. 875, Revised, entitled "Transportation Development
Act, Article 3, PedestrianlBicycle Projects," which delineates procedures and
criteria for submission of requests for the allocation of "TDA Article 3"fundin ;and
g
WHEREAS, MTC Resolution No. 875, Revised requires that requests for
the allocation of TDA Article 3 funding be submitted as part of a single, countywide
coordinated claim from each county in the San Francisco Bay region; and
WHEREAS, the City of Alameda desires to submit a request to MTC for the
allocatfon of TDA Article 3 funds to support the projects described in Attachment B
to this resolution, which are for the exclusive benefit or use of pedestrians or
bicyclists;
NOW, THEREFORE, BE IT RESOLVED by the Alameda City Council that
the Acting City Manager is authorized to execute and file a request to the
Metropolitan Transportation Commission for the allocation of fiscal year 2009/2010
Transportation Development Act Article 3 funding in the amount of $68,000 to fund
the focal match for the Safe Routes to School bicyclelpedestrian improvement
projects and to authorize the City Manager to execute all necessary documents to
implement the project,
BE IT FURTHER RESOLVED that the City of Alameda declares it is ell ible
g
to request an allocation of TDA Article 3 funds pursuant to Section 99234 of the
Public Utilities Code; and
Resolution 4-FCC
04-07-09
BE IT FURTHER RESOLVED that there is no pending or threatened
litigation that might adversely affect the project or projects described in Attachment
B to this resolution, or that might impair the ability of the City of Alameda to carry
out the project; and
BE IT FURTHER RESOLVED that the City of Alameda attests to the
accuracy of and approves the statements in AttachmentAto this resolu#ion; and
BE IT FURTHER RESOLVED that a certified copy of this resolution and its
attachments, and any accompanying supporting materials shall be forwarded to
the congestion management agency, countywide transportation planning agency,
or county association of governments, as the case may be, of Alameda County for
submission to MTC as part of the countywide coordinated TDA Article 3 claim.
*~***~
1, the undersigned, hereby certify that the foregoing Resolution was duly
and regularly adapted and passed by the Council of the City of Alameda in a
regular meeting assembled on the lt" day of April, 2gD9, b the followin vote to
Y g
wit:
AYES:
NOES:
ABSENT:
ABSENTIaNS:
IN V111TNESS, WHEREOF, I have hereunto set my hand and affixed the
official seal of said City this 8t" day of April X009.
Lora Weisiger, City Clerk
City of Alameda
Resolution No.
Attachment A
AUTHORIZING THE CITY MANAGER TO SUBMIT A REQUEST TO
THE METROPOLITAN TRANSPORTATION COMMISSION FOR
THE ALLOCATION OF FISCAL YEAR 2009/2010
TRANSPORTATION DEVELOPMENT ACT ARTICLE 3 FUNDING
IN THE AMOUNT OF $68,000 TO FUND THE LOCAL MATCH FOR
THE SAFE ROUTES TO SCHOOL BIKE/PEDESTRIAN
IMPROVEMENT PROJECTS AND TO AUTHORIZE THE CITY
MANAGER TO EXECUTE ALL NECESSARY DOCUMENTS
Findings
Page 1 of 1
1. That the City of Aiameda is nat legally impeded from submitting a request to
the Metropolitan Transportation Commission forthe allocation of
Transportation Development Act TDA}Article 3 funds, nor is the City of
Aiameda legally impeded from underkaking the projects}described in
"Attachment B" of this resolution.
2. That the City of Alameda has committed adequate staffing resources to
complete the projects} described in Attachment B.
3. A review of the projects} described in Attachment B has resulted in the
consideration of all pertinent matters, including those related to environmental
and right-of-way permits and clearances, attendant to the successful
completion of the projects}.
4. Issues attendant to securing environmental and right-of-way permits and
clearances far the projects described in Attachment B have been reviewed and
will be concluded in a manner and on a schedule that will no# jeopardize the
deadline for the use of the TDA funds being requested.
5. That the projects}described in Attachment B comply with the requirements of
the California Environmental Quality Act ~CEQA, Public Resources Code
Sections 21404 et seq.}.
6. That as portrayed in the budgetary descriptions} of the projects} in
Attachment B, the sources of funding other than TDA are assured and
adequate for completion of the projects}.
1. That the projects}described in Attachment B are for capital construction
andlor design engineering; andlor far the maintenance ofa Class I bikeway
which is closed to motorized traffic; andlor for the purposes of restriping Class
I1 bicycle lanes; andlor for the development or suppork of a bicycle safety
education program; andlor for the development of a comprehensive bicycle
andlor pedestrian facilities plan, and an allocation of TDA Article 3 fundin for
g
such a plan has not been received by the City of Alameda within the priorfive
fiscal years.
8. That the projects}described in Attachment B which are bicycle projects have
been included in a detailed bicycle circulation element included in an adopted
general plan, or included in an adopted comprehensive bikeway plan such as
outlined in Section X311 of the California Bikeways Act, Streets and Highways
Code section 2370 et sec .}.
9. That any project described in Attachment B that is a "Class I Bikeway," meets
the mandatory minimum safety design criteria published in Chapter 1080 of the
California Highway Design Manual.
10. That the projects} described in Attachment B are ready to commence
implementation during the fiscal year of the requested allocation.
11. That the City of Alameda agrees to maintain, or provide for the maintenance of,
the projects}and facilities described in Attachment B, for the benefit of and
use by the public.
Resolution No.
Attachment R
Page 1 of 1
TDA Article 3 Project Application Form
Fiscal Yearof.this Claim: 2DD912010,,, Applicant: City of Alameda ,,, .._ .,,,. ._ _
Contact person: Gail Payne
Mailin Aq ddress: 95o West Mall Square, Room 100, Alameda, CA 94501 _ ,_,. ,_,., ,_,,.. _!_._„ _
E-Mail Address f~payne(a~ci.aiameda.ca.us.__._ ,_,.,_„_ Telephone: ,510} 749-5918 „_. „__,,,.,__.,.__..
Secondary Contact (in event primary not available} Obaid.,Khan, X510}„149-5926 ,,. ,_.. _ __
E-Mail Address: okhan c ci.alameda,ca.us,__ ..__„ Telephone: X510} 749-5926 ,,, ,._,_ _
Short Title Description of Project: Safe, Routes to„School BikelPedestrian Improvement
Project .._. , ,,,..~.~,,._ ,,~.
Amount of claim: $68.000 , ,,, _, ,.,., ,.,._.._ ,..., ... ._,.. _
Functional Description of Project:
These funds are to be used for,Safe, Routes to School im,provements,at a variety of schools in the,
Cit of Alameda. - -~ ~-~~ ~~~ -~ - ~ ~~
Financial Plan:
List the project elements for which TDA funding is being requested ~e.g., planning,
environmental, engineering, right-vf-way, construction, inspection, contingency, audit}. Use the
table below to show the project budget. Include prior and proposed future funding of the
project. If the project is a segment of a larger project, include prior and proposed funding
sources for the other segments.
Project Elements: construction; bicyclelpedestrian safety education program ,_ ,.._. __
Fundin Source
TDA Article 3
list all other sources:
1. ,SR2S State
Funding
2.
All Prior FYs
Application FY ~ Next FY
$68,000
Following FYs ~ Totals
$68,000
$612,000
Totals ~ $30,000
$612, o00
$70,000
$612, 000
$680,000
Project Eligibility:
A. Has the project been approved by the claimant's governing body? ~If "N0," provide the approximate
date approval is anticipated}.
B. Has this project previously received TDA Article 3 funding? If "YES," provide an explanation on a
separate page.
C. Far "bikeways," does the project meet Caltrans minimum safety design criteria pursuant to Chapter
1000 of the California Highway Design Manual? Available on the Internet via: http:llwww.dot,ca~gov}.
D. Has the project been reviewed by a Bicycle Advisory Committee? ~If "N0," provide an explanation}.
E. Has the public availability of the environmental compliance documentation for the project pursuant to
CEQA} been evidenced by the dated stamping of the document by the county clerk or county
recorder? required only for projects that include construction}.
F. Will the project be completed before the allocation expires? Enter the anticipated completion date of
project month and year} December 2010
G. Have provisions been made by the claimant to maintain the project or facility, or has the claimant
YES?~
YE
NC
YE
NC
NIA
YE
YE
arranged for such maintenance by another agency? ~If an agency other than the Claimant is to
maintain the facility provide its name:
* The projects are a result of the Grand Street Traffic Calming study in 2QOl, which consisted of
two public meetings that attracted over 10~ residents.
CITY OF ALAMEDA ORDINANCE N0.
New Series
E
L AMENDING THE ALAMEDA MUNICIPAL CODE BY ADDING SECTION
0
~- 24-10 COST RECOVERY FOR RECURRING CALLS FOR SERVICE TO
o
= RESPOND TO ANDIOR ABATE PROPERTIES DUE TO SPECIFIED
N ~'
~ } ~
~ CONDITIONS OR OWNER NEGLECT TO CHAPTER XXIV PUBLIC
~ ,~ HEALTH}
~ c~
a
~ BE IT ORDAINED by the Council of the City of Alameda that:
~ ,
Section 1. The Alameda Municipal Code is amended by adding Section
24-10 (COST RECOVERY FOR RECURRING CALLS FOR SERVICE TO
RESPOND TO AND/OR ABATE PROPERTIES DUE TO SPECIFIED
CONDITIONS OR OWNER NEGLECT) to Chapter XXIV (PUBLIC HEALTH),
which shall read as follows:
24-1D COST RECOVERY FQR RECURRING CALLS FOR SERVICE TQ
RESPOND TO ANDI4R ABATE PROPERTIES DUE TQ SPECIFIED
CONDITIONS QR Q11~NER NEGLECT
24-10.1 Purpose and Authority.
This chapter is adopted pursuant to the Charter authority of the city and the
general police power as has specifically been acknowledged by the state
legislature to enable cost recovery far emergency response purposes in
Government Code Section 53158. Owners of properties causing recurring calls
for emergency response andlor abatement due to a specified condition listed in
subsection 24-10.3.A or owner neglect as defined in subsection 24.14.2. D will be
held liable for the cost of the city's emergency response to such incidents. Cost
recovery for recurring calls for service to abate properties due to the conditions
specified or owner neglect is necessary in order to provide restitution for
expenses incurred by the city and to deter owners from causing strains on city
resources.
24-10.2 Definitions.
The following definitions shall apply to the construction of this section
except where the context clearly indicates another meaning was intended:
A. "Abatement" means any emergency response that includes law
enforcement, fre, or other emergency response provider personnel and related
equipment, to prevent, mitigate ar remedy the actual or potential consequences
of a nuisance existing on a property due to due to a specified candition listed in
subsection 24-10.3.A or owner neglect.
Final Passage of Ordinance 4-G CC
04-07-09
B. "Emergency response costs" shall mean the cost to the city to provide law
enforcement, fire, or other emergency response provider personnel and related
equipment to respond to abate a property due to the conditions specifed in
subsection 24-10.3.A or owner neglect. Such expenses shall include the costs,
including salaries or contractual costs, of providing law enforcement, fire, or other
emergency response provider personnel and related equipment rescue on-scene
at the property.
C. "owner" shall mean the record owner of the title to property, wherever that
person or entity may currently reside.
D. "owner neglect" means that the owner has failed to carry out or perform
the necessary maintenance, repair, replacement or other appropriate abatement
measure on the property to a degree that an emergency response by the city to
provide law enforcement, fire, or other emergency response provider personnel
and related equipment is required to respond to andlor abate the existing
nuisance.
E. "Plumbing systems" shall include all the potable water, building supply,
and distribution pipes; all plumbing fixtures and traps; all drainage and vent
pipes; and all building drains and building sewers, including their respective joints
and connections, devices, receptors, and appurtenances within the propert lines
~!
of the premises and shall include potable water piping, potable water treating or
using equipment, medical gas and medical vacuum systems, liquid and fuel gas
piping, and water heaters and ven#s for same.
F. "Nuisance" shall have the same meaning as defined in California Civil
Cade Section 3419.
24-10.3 Liability foremergency response costs.
A. An initial response by a law enforcement, fire, or other emergency
response provider to a private property for at least one of the following specifed
conditions will initiate a warning letter to the owner:
1. Sudden and accidental release of water onto properties or into buildings due to
broken plumbing systems;
2. Water intrusion resulting from structural leakage;
3. Basement flooding due to malfunctioning sump pumps;
4. Persons} locked out of a building absent exigent circumstances;
5. Elevator malfunctions;
6. Lock-outs out of a vehicle with no occupants or animals in the vehicle; or
7. owner neglect as defined in subsection 24-10-2.D.
B. When a law enforcement, fire, or other emergency response provider
makes an initial response to a private property due to at feast one of the following
specified conditions in subsection 24-10.A or owner neglect, the city's official
shall, in writing, warn the owner that:
1. The official has determined that the law enforcement, fre, or other
emergency response was required due to one of the conditions specified in
subsection 24-10.3.A or owner neglect; and
2. If law enforcement, fire, or other emergency response providers make any
further emergency responses to the same property far the same specified
condition or arising from the same condition of owner neglect within twelve
months of the initial response, the owner will be charged forthe emergency
response costs.
B. When a law enforcement, fire, or other emergency response provider
responds to the property because of the same specified condition or arising from
the same condition of owner neglect within twelve months after the warning in
subsection 24-10.3.6. has been given, any and all owners shall be jointly and
severally liable for the emergency response costs.
C. The emergency response costs incurred under this section shall be
established by resolution of the City Council. The emergency response costs
incurred under this section shall be deemed a debt owed to the city and are due
30 days after receipt of the bill. Any owner owing such debt shall be liable in a
civil action brought in the name of the city for recovery of such debt, including
reasonable attorney's fees and costs. The bill shall contain the following
information:
1. The names} of the owners} being held liable for the payment of such costs;
2. The address of the private property where the recurring emergency response
due to a condition specified in subsection 24-10.3.A or arising from the same
condition of owner neglect occurred;
3. The date and time of the emergency responses;
4. The names of law enforcement, fire or emergency service providers who
responded;
5. The dates} and times} of any previous warning given pursuant to subsection
24-10,3.6. andlor previous responses to the private property in question due to
the same specified condition or arising from the same condition of owner neglect
within the previous twelve months; and
6. An itemized list of the emergency response costs for which the awner~s} is
being held liable.
24-~ 0,4 Payment and collection.
A. Any owner causing a recurring response by law enforcement, fire, or other
response provider personnel and related equipment due to a specified condition
listed in subsection 24-10.3.A or arising from the same condition of owner
neglect shall be liable for all of emergency response costs. The emer enc
9 Y
response costs shall be a charge against the owner causing the response. The
charge constitutes a debt of that person and is collectible by the city in the same
manner as in the case of an obligation under a contract, express or implied.
B. The provisions of subsection ~ 3-g.4 of this Code shall apply to the
payment and collection of the emergency response costs due to a recurring
response to a specified condition listed in subsection 24-10.3.A or arising from
the same, condition of owner neglect. In the alterna#ive, the city attorney may
bring civil suit or o#her action to collect the expense of emergency response costs
due to a recurring response to a specified condition listed in subsection 24-
~ 0.3.A or arising from the same condition of owner neglect.
24-~ 0.5 Non-exclusive remedy.
This chapter provides for the recovery by the city of its expense of emergency
response due to a specified condition listed in subsection 24-~ 0.3.A or arising
from the same condition of owner neglect, is not the exclusive remedy for
recovery of such costs, and is in addition to all other legal and equitable
remedies, administrative, criminal or civil, that may be pursued by the city to
provide for recovery of its emergency response costs due to a specified condition
outlined in subsection 24-10.3.A or arising from the same condition of owner
neglect.
Section 2. Severability Clause. If any of the provisions of this chapter or the
application thereof to any person or circumstances is held invalid, such invalidity
shall not affect any other provisions or applications of this chapter which can be
given effect without the invalid provision or application. To this end the various
provisions of this chapter are severable and each would have been enacted
without the other.
Section 3. This ordinance shall be in full force and effect from and after the
expiration of thirty (30) days from the date of its final passage.
Presiding officer of the City Council
Attest:
Lora Wlleisiger, City Clerk
******
I, the undersigned, hereby certify that the foregoing ordinance was duly
and regularly adopted and passed by Council of the City of Alameda in regular
meeting assembled on the l~"day of April, X009 by the following vote to wit:
AYES:
NOES:
ABSENT;
ABSTENTIONS:
IN 1NITNESS, UvHEREOF, I have hereunto set my hand and affixed the official
seal of said City this 8t"day of April, X409.
Lara Vveisiger, City Clerk
City of Alameda
CITY OF ALA~IEDA
Memorandum
To: Honorable Mayor and
Members of the City Council
From: David Brandt
Acting City Manager
Date: April 7, 2009
Re: Hold a Public Hearing to Adopt a Resolution Establishing Integrated
Waste Collection Ceiling Rates and Service Fees for Rate Period 8 July
2009 to June 2010}; Introduce an Grdinance Approving and Authorizing
the City Manager to Nego#iate and Execute a Second Amendment to
Modify and Extend the Franchise Agreement with Alameda County
Industries, Inc.; Introduce an Ordinance Amending the Alameda Municipal
Code by Amending Various Sections of Chapter XXI Solid Waste and
Recycling} to Clarify the Definition of Customer and Customer
Responsibilities; and Allocate $1,054,059 from the City Waste
Management Program Fund Fund 214.1
BACKGRGUND
In 2001, the City conducted a comprehensive selection process to choose a contractor
to collect, process, and dispose of the City's solid waste, recycling, and organic
materials, jointly referred to as integrated waste ~IW}. The process included the
creation of a Solid Waste Franchise Team SWFT}, comprised of Alameda residents,
businesses, and environmental representatives, to develop the Request for Proposal
RFP} and oversee the selection process. The SWFT held five community meetings to
elicit input on the RFP and the types of integrated waste programs to be implemented in
the City. To ensure the selection process was reasonable and objective, the City also
hired Hilton, Farnkopf & Hobson, LLC ~HFH} to assist with the procurement and Brown,
Vence & Associates to perform a peer review of the RFP. In addition, to obtain the
most competitive proposals, the City allowed contractors to submit proposals for four
types of services: solid waste collection only; solid waste disposal only; solid waste
collection, recycling collection and processing, and organics collection and processing;
and recycling and organics collection and processing.
The City received 12 proposals from four companies, fourfor solid waste collection only,
two for solid waste disposal, three for combined collection, and three for recycling and
organics collection only. These proposals were presented to the SWFT for evaluation
and input at two additional community workshops. In addition, oral interviews were
conducted with all four companies to review their proposals in detail.
Based on input from SWFT, the public, the City consultants, and staff, on April 16, 2002,
the City Council awarded a franchise agreement to Alameda County Industries, Inc.
City Council
Public Hearing
Agenda Item #6-A
D4-O1~~9
Honorable Mayor and April 7, 2049
Members of the City Council Page 2 of 9
ACI}, for the collection of solid waste, the collection and processing of recycling, and
the collection and processing of organics. The solid waste disposal contract was
awarded to Uvaste Management of Alameda County ~wMAC}. Both agreements
provide for an initial ten-year term, with an optional one-time extension of up to five
years. The City is currently in the seventh year of the initial ten-year term of both
agreements.
The franchise agreement with ACi contains detailed schedules of allowable or
reimbursable costs for: personnel and labor, processing, operations, equipment,
materials, eligible pass-through costs, and profit, and the mechanism for how ACI will
be compensated for these allowable casts through the integrated waste rates. The
allowable costs are not necessarily the actual costs incurred by ACI, but reflect the risks
ACI assumed when the franchise was approved. In addition, ACI is responsible for
managing and paying all costs and fees associated with the collection, processing, and
disposal of the integrated waste, including the tipping fee charged by WMAC at its Davis
Street Transfer Station in San Leandro. ACI is also responsible for directly billing all
residential and commercial customers.
Cn December 23, 2048, ACI submitted an application for an interim rate adjustment to
recover unanticipated revenue loss, estimated to be $654,444 for the current rate
period, associated with the decline in the recycling commodities market. In late October
2048, the price for mixed paper dropped from $1151ton to $5lton. At the present time,
the paper market is at approximately $31.501ton.
In late December, Public vllorks staff met with ACI to discuss the expected loss in
revenue. At this meeting, ACI indicated that the revenue loss had resulted in the need
for the company to renegotiate its credit arrangements with its lender and also required
the partners of the company to contribute capital to partially address the revenue loss.
At that time, ACI modified its request to the City to include the following:
1. Compensate ACI for commodities market revenue loss for the current rate year
and all future years; and
2. Modify the existing franchise agreement to compensate ACI for its actual hourly
labor rates, including benefits; and
3. Provide for an early approval of the five-year extension of the franchise
agreement and consider approving an additional fivewyear extension; and
4. Provide for the early payment of money due to ACI in 2412, 2413, and 2414,
associated with a previously approved interim rate adjustment.
DISCUSSION
To review ACI's requests, an inter-departmental team from the City Manager's office,
the City Attorney's office, the Finance Department, and the Public 1!Ilorks Department
Honorable Mayor and April 1, 2009
Members of the City Council Page 3 of 9
was established. The City negotiated in good faith with ACI and has met with them on
numerous occasions. Due to the complexity of issues, staff contracted with HFH to
perform a complete audit of commodity revenues and expenses from the start of the
franchise agreement to the present. HFH also reviewed the difference between the
labor and benefits costs paid by ACI and the costs provided through the franchise
agreement, as well as otherACl compensation issues.
Commodities Revenue Shared between City and ACI
As stated previously, ACI submitted an interim rate adjustment to recover $680,000 in
anticipated loss revenue from the sale of recyclable materials for the current rate period
ending June 30, 2009. When the City awarded the franchise agreement to ACI, the net
recyclable materials processing cost processing costs less revenues earned from the
sales of materials} was set at $o, and ACI took the risk associated with fluctuations in
the commodities market. In essence, ACI agreed that the cost #o process the materials
would be funded through the sales of the commodity. if processing costs were higher
than sales revenue, ACI would be responsible for the shortfall; however, if processing
costs were lower #han sales revenue, ACI would retain the additional income. Based on
review from the City Attorney's Office, the interim rate adjustment is not justified, and
ACI has agreed to withdraw its request for compensation for this year. However, ACI
has requested that the City provide financial consideration related to the fluctuation in
the commodities market for future years by ensuring that the rate structure
compensates ACI for the processing costs of recyclable materials.
Based on ACI's audited statements for the past four years, HFH determined that the
average processing cost, including a 10% profit, is $1,202,560, or approximately
$96.951ton processed. Since the award of the franchise, the resale value for recyclable
commodities has varied from $54.89 in 2002 to $149.13 in 2008, the maximum
commodity revenue received, for an average of $131.511ton sold or $114.551ton
processed. Based on HFH's review of ACI's records, the resale value for recyclable
commodities has generated approximately $1,229,?32 in net revenue to ACI over the
term of the franchise. ACI states that this revenue was partially used to offset labor and
other costs. Staff will continue to work with ACI to identify the exact expense centers to
clarify the rate setting process for future years.
The proposed franchise amendment will also au#horize the City Manager to make minor
modifications and clarifications to the franchise agreement consistent with City Council
approvals, including non-substantive changes to the Exhibits included in the
agreement. As stated previously, the commodities market dropped significantly in late
October 2008, and ACI requests that it be compensated for unrealized revenues. While
ACl took the risk for the commodities market in the current franchise agreement, it is
within the City's discretion to modify the current agreement and reassign al! or part of
the risk currently attributed to ACI. Based on negotiations, staff recommends that the
Honorable Mayor and April 7, 2009
Members of the City Council Page 4 of 9
City agree to adjust the rate structure to compensate ACI for a portion of the average
processing costs, including profit. ACI still maintains a small risk related to the
commodities market, and as such, the proposal provides for the following cost sharing
of revenues: ACI receives 100°/0 of the revenues up to $251ton; revenues above
$261ton and up to $8olton are shared 25% City and l5% ACI; and revenues above
$SOlton are shared l5% City and 25°/° ACI. In future years, when the commodities
market returns to previous levels, the City will receive revenue that was not anticipated
in the current franchise agreement. Staff proposes that this unanticipated revenue be
placed in a holding account to manage future rate increases. This reassignment of
processing costs and sharing commodities revenue requires the franchise agreement to
be amended. The portion of the rate increase attributable to this request is 6.08%.
Amend Labor and Benefit Compensation to the Actual Costs
The existing franchise agreement with ACI establishes a base labor cost using the 2001
prevailing wage rate, and provides for an annual increase based on the Urban Utilage
Earners Consumer Price index CPI}for the Bay Area. ACI indicates that the annual
CPI labor adjustment is not keeping pace with its actual costs and that past
commodities revenues have been used to fund this cost. Since ACI is a small company
that primarily serves Alameda and San Leandro, it compensates its workforce through a
"me-too clause" based upon the Uvaste Management Incorporated ~UVMI} Teamsters
collective bargaining agreements. At present, ACi pays wages per the salary schedule
contained in the Teamsters Union Local l0 agreement negotiated by WMI. ACI states
that in the past, the revenue from the sales of commodities was used to fund the
difference between actual labor costs paid by ACI and the costs compensated through
the agreement. However, due to the declining commodities revenue, the company can
no longer fund this difference. ACI is requesting that the agreement be modified to
compensate ACl forthe actual labor and benefit costs paid through the remainderof the
extended franchise agreement.
Since the City requires ACI to pay prevailing wages, staff agrees that this request is
reasonable. Staff proposes that the franchise agreement be amended to state that
labor costs will be commensurate with the prevailing wage rate paid in Alameda County.
The proposed amendment would modify the computations to allow ACI to recover their
actual prevailing wage and benefit costs per the Teamsters Union Local l0 contract.
The portion of the rate increase attributable to this request is 2.81%.
Early Extension of the Franchise and Approval of an Additional Five-Year
Extension
Section 3.4 of the franchise agreement provides that the City may, at its sole discretion,
approve a onetime extension for a period not to exceed five years. The current
agreement ends on September 30, 2012. ACI has requested that the City extend the
Honorable Mayor and
Members of the City Council
April 7, 2009
Page5of9
current franchise agreement to the full allowable term of September 30, 2017, and
award an additional five-year extension, making the agreement terminate on September
30, 2022.
Since the City conducted an extensive selection process prior to awarding the franchise
agreement to ACI and secured competitive rates, the service provided by ACI during the
past seven years is satisfactory, and the cost for the services provided by ACI is
reasonable, staff supports the requested extensions. As part of granting the extensions,
the City is requiring ACI to convert 100% of their Alameda collection fleet to alternative
fuel vehicles by Rate Year 11 X201212013}. The additional five-year extension
requested by ACI, from 2017 to 2022, will facilitate the purchase of new vehicles and
amortize the purchase over a 10-year period, resulting in the lowest cost to the
ratepayers.
The extension of the franchise agreement beyond 2017 requires an amendment to the
ACI agreement. In addition, to ensure that the City has a disposal site for its solid
waste, the City wiEl need to extend its long-term disposal agreement with UvMAC to
coincide with the extended date of ACl's agreement, if approved by the City Council.
Staff has contacted vUMAC, and they have indicated that they are willing to amend the
current agreement with the City.
Early Payment of Monies Due in 242
In 2004, ACi was granted an interim rate adjustment to compensate them for increased
costs associated with serving a greater number of customers than reported in the RFP.
When the RFP for integrated waste collection services was issued in 2001, the City
relied on customer data provided by the City's then-current solid waste and recycling
collectors. The information provided by the collectors under-reported the tots! number
of customers by approximately 30%; as a result, ACI was required to purchase more
vehicles and increase staff to service the actual number of customers. Since ACI was
the City's recycling collector at the time, the City held the company partially responsible
for the under-reporting and reduced their profit in half for atwo-year period. To maintain
a rate increase of approximately 20%, the City agreed to amortize the money due to
ACI over an 11-year period, extending three years beyond the initial ten-year franchise
agreement term. The cost for this interim rate increase is $351,353 per year. The
amortization allowed that if the franchise agreement were extended, the rates would
remain unaffected. However, if the agreement were not extended, the City would be
required to pay the remaining balance of 1,054,059 to ACI in a lump sum payment. To
improve the company's cash flow, ACI has asked the City to pay this lump sum amount
in the current rate period. According to ACI, the partners have already contributed
approximately $1,000,000 of their own resources toward the effort to recapitalize the
company and the early payment of the lump sum rate adjustment would be used to
complete the recapitalization.
Honorable Mayor and April 7, 2009
Members of the City Council Page 6 of 9
Since rate period three, staff has been monitoring program costs and staff resources to
ensure that sufficient funds will be available to pay the lump sum amount at the end of
rate year ten. Since there currently are sufficient funds available in the City Waste
Management Program Fund Fund 274.1 } to provide for the requested early payment,
staff supports this request. In addition, payment of this lump sum at this time will assist
in stabilizing the rates in 2012, when the amortized costs associated with adding new
alternative fuel vehicles to the fleet would be reflected in the rates.
CPI Adjustment for Rate Year S
As outlined earlier, compensation to ACI through the integrated waste rates is
established annually, either through acost-based review or a detailed rate review, with
the detailed rate review conducted every third year of the agreement. Rate Year 8 is an
index-based rate review, which is adjusted by three specific CPI categories. ACI has
submitted a rate application for Rate Year 8 containing the costs associated with their
requests, as well as the indexed based adjustments. The portion of the rate increase
attributable to this request is 0.63°/Q.
Proposed Integrated Vtilaste Management Rates
The proposed modifications to the franchise agreement associated with commodities
revenue and labor costs will result in an increase to the Integrated Waste Management
IWM} ceiling rates for Rate Period 8 July 1, 2009 to June 30, 2010}. In addition, the
existing franchise agreement requires an annual rate adjustment based on applicable
CPI increases. As proposed, the IWM ceiling rates will increase by a total of 9.52%.
The new rate fora 32-gallon residential service will increase from $80.82 per quarter to
$88.51 per quarter, or approximately $2.56 a month. The following table lists the
proposed increases for residential service:
Quarterly (Three Months) Integrated Waste Management (IWM) Rates
Existin Rates Pro osed Rates
Senior Low Income Senior Low Income
Cart Size IWM Discount Discount IWM Discount Discount
~Galions} Rates Rate Rate Rates Rate Rate
20 $ 51.35 $ 43.65 $ 43.65 $ 56.24 $47.81 $47.81
32 $ 50.82 $ 68.70 $ 68.70 $ 58.51 $75.24 $75.24
64 $134.91 N1A $114.68 $147.75 NIA $114.68
96 $188.44 NIA $160.17 $206.38 NIA $160.17
Com arison of Rates for Other Alameda Count A encies
Staff obtained information on the rates and collection service features available for the
17 agencies in Alameda County that provide integrated waste collection Attachment 1}.
Based on current rate information, a typical 32-gallon service varies from a high of
Honorable Mayor and April 1, 2009
Members of the City Council Page l of 9
$44.531month Piedmont} to a low of $13.551month Dublin}, with an average of
$23.531month. This broad variance illustrates that rates are directly affected by the type
and diversity of collection services as well as proximity to a transfer station or landfill.
Alameda's current rate is $26.941month and is proposed to increase to $29.501month.
It should be noted that the services offered by ACl are more comprehensive and
numerous than found in other agencies in Alameda County, and therefore the rates
should be expected to be higher than other rates in the county. These include: the
drop-off of household batteries and latex paint; the curbside pick-up of used oil; and the
collection of food-waste for multi-family units and restaurants. ACI is also required to
maintain a fully staffed local office, provide senior and low-income discount rates, and
offer no-cost collection services at 12 citywide events for non-profit agencies, which are
not typical for other Alameda County agencies. In addition, unlike other cities in the
county, Alameda is responsible for the post-closure costs associated with the
maintenance and regulatory requirements for the Doolittle Landfill. The rates provide a
funding sou rce for these expenses.
Many agencies are currently considering rate increases. For example, the City of San
Leandro, which is also serviced by ACI, is considering a 10% increase. The Castro
Valley Sanitary District recently issued an RFP for enhanced IW services and is
considering a 45°/° rate increase in the first year, with additional annual increases of
9.4°/°, 9.4%, 8°/°, and 8% in the subsequent four years. In addition, the City of
Livermore issued an RFP for Iv11 services and increased rates are expected as well,
Proposed Ordinances
Section 21-20.1 of the Alameda Municipal Code RAMC} requires that the City Council
adopt an ordinance to amend or approve the franchise agreement in accordance with
City Charter Section 3-10. As discussed above, staff proposes that the existing
agreement be amended to: reassign the risk associated with the sales of recycling
commodities, set prevailing wage allowances to the Teamsters Local l0 agreement,
extend the term to 2022, and require 100°/° of ACI's Alameda collection fleet be
alternative fuel by Rate Year 11 X2012113}, In addition, during discussions with ACI, it
was determined that modifying the current AMC and allowing ACI the flexibility to
develop its own policies for directly billing residential property owners for Ivll collection
services would improve implementation of the franchise agreement. Currently, the
property owner is responsible for the payment of uncollected Ivl1 collection services, but
this requires the City Council to take specific action to place delinquent accounts on the
property tax. The proposed change will allow ACl the ability to better manage operating
costs, improve response time for customer service representatives, increase
efficiencies, reduce the bad debt subsidy currently borne by the ratepayers, and allow
City and ACI staffs to address programs to increase solid waste diversion. ACI will be
required to notify a property owner 12 months prior to transitioning the billing from the
Honorable Mayor and April 7, 2009
Members of the City Council Page 8 of 9
tenant to the property owner. The notification period wilt allow property owners time to
include the cost of IW service into the rent structure when leases are renewed.
The proposed AMC modification will also allow ACI to work with property owners of
multiple unit praperties to provide consolidated services tailored to the needs of the
property and reduce the number of carts on the street during collection days. Typically,
tenants that are responsible for paying for IW service each have an individual set of
three carts. ~n collection day, when each tenant sets out their carts at the curbside,
there is insufficient room to allow adequate space between the carts. To service these
carts safely, ACI staff is required to exit the collection equipment and place carts
individually next to the automatic arm to be emptied. This reduces efficiencies and
increases the time required to complete a collection route, thereby increasing operating
costs. Parking availability is also reduced when carts are set out in the parking lane,
typically in neighborhoods where parking is already impacted because of the presence
of multiple family units. in addition, cart storage for multiple sets of collection carts
requires space that many properties do not have, causing some properties to use off-
street parking spaces to store the carts. The crowded storage of the carts can also be
unsightly for both tenants and neighbors. Allowing ACI the flexibility to replace multiple
20-gallon carts with one 9G-gallon cart, for example, will result in fewer carts overall,
reduce ACI's inventory requirements and equipment costs, and reduce the demand for
space at curbside and on the property. For these reasons, staff supports the ordinance
modification and proposes a July ~ , 2010, implementation date to allaw adequate
property owner notification.
FINANCIAL IMPACT
As part of the Franchise, the City receives a 10°/o franchise fee from ACI. These
monies are deposited in the General Fund. The franchise fee for Rate Year 8 is
expected to increase by approximately $153,852 with the proposed increase. Funds
are available in the City Waste Management Program Fund Fund 214.1 }for the lump
sum early repayment.
MUNICIPAL C~DEIPGLICY DGCUMENT CROSS REFERENCE
The City's Integrated Waste Management Program is consistent with the General Plan
Health & Safety Element Guiding Policy 8.4.k. and the City of Alameda Local Action
Plan for Climate Protection.
The Alameda Municipal Code changes affect various sections of Chapter XXI Solid
Waste and Recycling} to clarify the definition of customer and customer responsibilities.
Each section has been thoroughly analyzed and found to be compatible with the
proposed amendments to the Alameda Municipal Code.
Honorable Mayor and
Members of the City Council
RECOMMENDATION
April 7, 2049
Page9of9
Hold a public hearing to adopt a resolution establishing inte rated waste collection
. g
ceiling rates and service fees for rate period 8 July 2009 to June 2010}; introduce an
ordinance approving and authorizing the City Manager to negotiate and execute a
second amendment to modify and extend the franchise agreement with Alameda
County Industries, Inc.; introduce an ordinance amending the Alameda Municipal Code
by amending various sections of Chapter XXI ~SOlid Waste and Recycling} to clarify the
definitions of customer and customer responsibilities; and allocate $1,054,059 from the
Cityv`laste Management Program Fund Fund 274.1},
Respe tFully submitted,
~~~~~
Matthew T. Naclerio
Public Works Director
Approved as to~i.inds and account,
Ann M e Gallant
Interim finance Director
C2~
By: Marge McLean ~ ~,~
Public Works Coordinator
MTN:MM:gc
Attachment
1. Rate Comparison
cc: Louie Pelligrino, ACI
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City Council
Attachment to
Public Hearing
Agenda Item #6-A
04-07-09
CITY GFALAMEDA RESGLUTIGN NG.
~ ESTABLISHING INTEGRATED WASTE CGLLECTIGN CEILING RATES
~ AND SERVICES FGR RATE PERIGD 8 July 2009 to June 2010}
~ WHEREAS, in 2002 the City of Alameda entered into a Franchise
~ ~ Agreement with Alameda County industries Contractor}, for solid waste,
" recyclable materials, and or anics materials curbside collection fora 10- ear
g y
period; and
WHEREAS, on March 1, 2049, Contractor submitted a rate application
covering rate period 8 projections; and
WHEREAS, City of Alameda staff and their consultant, Hil#on, Farnkopf &
Hobson, LLC, evaluated the request for rate increase applications in accordance
with the existing Franchise Agreement with Contractor; and
WHEREAS, the City Council finds that the integrated waste management
rates approved by this resolution provide Contractor with a reasonable rate of
return; and
WHEREAS, Grdinance No. 2416, passed by the City Council on February
24, 1990, states that all subsequent rates for collection, processing, and delivery
to the City specified disposal site of integrated solid waste shall be set by
Resolution of the City Council; and
WHEREAS, Grdinance No. 2629, passed by the City Council on May 4,
1993, states that all subsequent changes to the method of collection surcharges
shall be set by Resolution of the City Council;
NGW, THEREFGRE, BE IT RESGLVED by the Council of the City of
Alameda that the Council hereby establishes the integrated waste collection
ceiling rates and services, for Rate Period 8 July 2409 to June 34, 2014} as
shown on Attachment 1-Tables 1-6.
*~*~,~
Resolution #6-A
04.01-09
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 7th day of April, 2009, by the followin vote to
g
wit:
AYES:
NOES:
ABSENT:
ABSENTlQNS:
IN ~111TNESS, WHEREQF, I have hereunto set my hand and affixed the
official seal of said City this 8t~ day of April, Zoo9.
Lara vlleisiger, City Clerk
City of Alameda
Attachment 1-Table 1
Table 1. Quarterly Integrated Waste Management (IWM) Residential Rates--Effective
July 1, 2009
Size Gallons IWM Rates Senior Discount Rate LIRA Discount Rate
20 $56.24 $47.81 $47.81
32 $88.51 $75.24 $75.24
64 $147.76 N/A $125.59
96 $206.38 N/A $175.42
Attachment 1-Table 2
Table 2 -Monthly Bin and Cart Rates -Effective July 1, 2009 (Commercial and Multi-
Family)
Container Co mmercial Bin Service: W eekly Colle ction Freque ncy
Size c
~ 2 3 4 5 6
1 $111.73 $225.70 $341.90 $460.33 $581.DD $703.91
1.5 $167.60 $338.55 $512.85 $690.50 $871.50 $1, 055.86
2 $223.46 $451.39 $683.79 $920.56 $1,162.OD $1,407.81
3 $335.19 $677.09 $1, D25.69 $1, 381.OD $1, 743. DO $2,111.72
4 $446, 92 $902.79 $1, 367.59 $1, 841.33 $2, 324.01 $2, 815.62
5 $558.66 $1,128.48 $1, 709.49 $2, 301.66 $2, 905.01 $3, 519.53
6 $670.39 $1, 354.18 $2, 051.38 $2, 761.99 $3,486.01 $4, 223.44
7 $752.12 $1, 579. S8 $2, 393.28 $3, 222.32 $4, 067.01 $4, 927.34
Container Commercia l Bin Compa ctor Servic e: Weekly C ollection Fre quent
y
S Sze c
~ 2 3 4 5 6
1 $223.46 $451.39 $683.79 $920.66 $1,162.00 $1,407.81
1.5 $335.19 $677.09 $1, 025,69 $1, 381.00 $1, 743.00 $2,111.72
2 $446.92 $902.79 $1, 367.59 $1, 841.33 $2, 324.01 $2, 815.62
3 $670.39 $1,354.18 $2,051.38 $2,762.01 $3,486.01 $4,223.44
4 $893.85 $1,805.57 $2,735.18 $3,682.66 $4,648.01 $5,631.25
5 $1,117.31 $2,256.97 $3,418.97 $4,603.32 $5,810.02 $7,039.06
6 $1, 340.77 $2, 705.36 $4,102.77 $5, 523.98 $6,972.02 $8,446.87
7 $1,564.24 $3,159.76 $4,786.56 $6,444.65 $8,134.02 $9,854.65
Attachment 1-Table 3 and Table 3a
Table 3-Special Pickups, Same-Day Service, orNon-Collection Day Services
Effective July 1, 2449 Commercial and Multi-Family}
Container Size (CY) Maximum Rate Per Collection
7 $55.22
1.5 $82.82
2 $110.43
3 $165.65
4 $220.86
5 $276.08
6 $331.30
7 $386.51
Table 3a -Additional Services -Effective July 1, 200 9 (Commercial and Multi-Family)
Service Rate
Locks, Ke s, Hass $23.83
Steam Cleanin - Per Cleanin $84.31
Cart replacement(s) in excess of one per year
Sec. 4.12. C $15.00
Attachment 1-Table 4
Table 4-Monthly Cart Rates -Effective July 1, 2009(Commercial and Multi-Family)
Cart Size Commercial Cart Service: Weekl Collection Fre uenc
1 2 3 4 5 6
20 $8.57 $17.15 $25.72 $34.30 $42.87 $51.45
32 $19.33 $38.66 $58.00 $77.33 $96.66 $115.99
64 $39.08 $78.16 $117.24 $156.32 $195.40 $234.48
96 $58.62 $117.24 $175.86 $234.48 $293.10 $351.72
Maximum monthly rate for weekly unlimited recycling collection is $3.82 per dwelling
unit.
Maximum monthly rate for weekly unlimited organic materials collection is $2.53 per
dwelling unit.
Maximum allowable rate for additional cart replacement(s) in excess of one per year is
$17.02 per cart as specified in Section 4.12.C.
Attachment 1--Table 5
Table 5 -Monthly Push/Pull Charges for Bin/Cart Service -Effective July 1 , 2009
Includes bringing container from its location on your property to the curb for servicing, and
returning the container to your property when empty. (Commercial and Multi-Family)
Linear Feet Weekly Collection Frequency
(ran e)
1 2 3 4 5 6
1 - 20' $16.88 $33.75 $50.63 $67.51 $84.38 $101.26
21 - 40' $33.75 $67.51 $101.26 $135.01 $168.77 $202.52
41 - 60' $50.63 $101.26 $151.89 $202.52 $253.15 $303.78
61 - 80' $67.51 $135.01 $202.52 $270.03 $337.53 $405.04
81 - 100' $84.38 $168.77 $253.15 $337.53 $421.91 $428.35
101 -120' $101.26 $202.52 $303.78 $405.04 $506.30 $607.56
121 - 140' $118.14 $236.27 $354.41 $472.54 $590.68 $708.82
141 - 160' $135.01 $270.03 $405.04 $540.05 $675.06 $810.08
161 - 180' $151.89 $303.77 $455.67 $607.56 $759.45 $911.34
181 - 200' $168.77 $337.53 $506.30 $675.06 $843.83 $1,012.60
201 - 220' $185.64 $371.28 $556.93 $742.57 $928.21 $1,113.85
221 - 240' $202.52 $405.04 $607.56 $810.08 $1,012.60 $1,215.11
241 - 260' $219.40 $438.79 $658.19 $877.58 $1,096.98 $1,316.37
261 - 280' $236.27 $472.54 $708.82 $945.09 $1,181.36 $1,417.63
281 -300' $253.15 $506.30 $759.45 $1,012.60 $1,265.74 $1,518.89
No push/pull charges for recyclable/ organic materials containers.
Attachment 1-Table 5a and Table 5b
Table 5a -Monthly Push/Pull Charges for Bin/Cart Service -Effective July 1 , 2009
Includes bringing the container to the curb for servicing. Contain er will be
left at the curb empty. (Commercial and Multi-Family)
Linear Feet Weekl Collection Fre uenc
1 2 3 4 5 6
1 - 20' $10.12 $20.25 $30.38 $40.51 $50.63 $60.75
21 - 40' $20.25 $40.51 $60.72 $81.01 $101.26 $121.51
41 - 60' $30.38 $60.75 $91.14 $121.51 $151.89 $182.26
61 - 80' $40.51 $81.01 $121.51 $162.01 $202.42 $243.03
81 - 100' $50.63 $101.26 $151.89 $202.52 $253.15 $303.78
101- - 120' $60.75 $121.51 $182.26 $243.03 $303.78 $364.53
121 - 140' $70.88 $141.77 $212.64 $283.52 $354.41 $425.29
141 - 160' $81.01 $162.01 $243.03 $324.03 $405.04 $486.04
161 -180' $91.14 $182.26 $273.40 $364.53 $455.67 $546.81
181 - 200' $101.26 $202.52 $303.78 $405.04 $506.30 $607.56
201 - 220' $111.38 $222.77 $334.15 $445.55 $556.93 $668.31
221 - 240' $121.51 $243.03 $364.53 $486.04 $607.56 $729.07
241 - 260' $131.63 $263.27 $394.92 $526.55 $658.19 $789.82
261 - 280' $141.77 $283.65 $425.29 $567.05 $708.82 $850.59
281 -300' $151.89 $303.79 $455.67 $607.56 $759.45 $911.34
No push/pull charges for recyclable/organic materials containers.
Table Sb -Mo nthly Push/Pull Charges for Bin/Cart Service -Effective July 1 , 2009
Include s returnin container from curb to the roe after servicin is erFormed.
Linear Feet Weekl Collection Fre uenc
1 2 3 4 5 6
1 - 20' $6.76 $13.50 $20.25 $27.00 $33.75 $40.51
21 - 40' $13.50 $27.00 $40.51 $54.01 $67.51 $81.01
41 - 60' $20.25 $40.51 $60.75 $81.01 $101.26 $121.51
61 - 80' $27.00 $54.01 $81.01 $108.02 $135.01 $162.01
81 - 100' $33.75 $67.51 $101.26 $135.01 $168.77 $202.52
101 - 120' $40.51 $81.01 $121.51 $162.01 $202.52 $243.03
121 - 140' $47.25 $94.50 $141.77 $189.02 $236.27 $283.52
141 - 160' $54.01 $108.02 $162.01 $216.02 $270.03 $324.03
161 - 180' $60.72 $121.51 $182.26 $243.03 $303.78 $364.50
181 - 200' $67.51 $135.01 $202.52 $270.03 $337.53 $405.04
201 - 220' $74.26 $148.51 $222.77 $297.02 $371.28 $445.55
221 - 240' $81.01 $162.01 $243.03 $324.03 $405.04 $486.04
241 - 260' $87.76 $175.52 $263.27 $351.03 $438.79 $526.55
261 - 280' $94.50 $189.02 $283.52 $378.04 $472.54 $567.05
281 -300' $101.26 $202.52 $303.78 $405.04 $506.30 $607.56
No pushlpull charges for recyclablelorganic materials containers.
Attachment 1-Table 6
Table 6 -Debris Box per PuIIITons Allowed and Additional Tonnage Rates -- Effective
July ~ , 2009
Material Type Debris
Box Size Per Pull Charge Tons
Allowed Overweight
Charges -Per
Ton (Applied to
tons in excess of
tons allowed in
previous column
Loose 10 $449.04 2 $7g.26
15 $673.56 3 $78.26
20 $898.07 4 $78.26
30 $1, 347.11 6 $78.26
40 $1, 796.14 8 $7g.26
50 $2,245.18 10 $78.26
Com acted 10 $481.35 3 $78.26
15 $722.03 4 $78.26
20 $962.71 6 $78.26
30 $1,444.06 9 $78.26
40 $1,925.41 11 $78.26
50 $2,406.77 14 $78.26
Dirt $666.33 7 $86.96 $666.33
C&D Debris Box Rates- 10 $233.86 N/A $64.96
15 $233.86 N/A $64.96
20 $233.86 N/A $64.96
30 $310.51 N/A $64.96
40 $454.72 N/A $64.96
Concrete No Rebar 10 $666.33 6 $86.96
Wood 10 $359.23 3 $18.63
15 $538.84 4 $18.63
20 $718.46 6 $18.63
30 $1,077.69 9 $18.63
40 $1,436.91 12 $18.63
50 $1,796.14 14 $18.63
Yardwaste 10 $359.23 2 $37.89
15 $538.84 3 $37.89
20 $718.46 4 $37.89
30 $1, 077.69 6 $37.89
40 $1,436.91 8 $37.89
50 $1, 796.14 10 $37.89
Commin led Rec clables 10 $359.23 N/A N/A
15 $538.84 N/A N/A
20 $718.46 N/A N/A
30 $1,077.69 N/A N/A
40 $1,436.91 N/A N/A
50 $1,796.14 N/A N/A
Delivery Charge -Initial placement of box onsite = $94,66
Flasher Charge -Per pull for boxed placed~in street = 47.42
Relocation Charge - To relocate boxes on site = $143.56
Demurrage Charge - For on-call boxes if not serviced in 7 days = $30.22
Penton fees and rates are subjecttochange.
CITY OF ALAMEDA ORDINANCE NO.
~ New Series
~ ~ APPROVING AND AUTHORIZING THE CITY MANAGER TO
NEGOTIATE AND EXECUTE A SECOND AMENDMENT TO
~ MODIFY AND EXTEND THE FRANCHISE AGREEMENT WITH
~ ~ ALAMEDA COUNTY INDUSTRIES AR, INC.
~ ,
~ ~' WHEREAS on Jul 3 2002 the Cit and Alameda ~ Count Industries AR Inc.
y ~ ~ Y Y
~"Contractor"} entered into that certain Franchise Agreement between the City of Alameda
and Alameda County Industries AR, Inc. for Solid waste, Recyclable Materials, and
Organic Materials Services the "Original Franchise Agreement"},
WHEREAS, on December 27, 2004, the First Amendment to the Original
Franchise Agreement ~"Amended Franchise Agreement"} was signed by the City and the
Contractor, and
wHEREAS, the City and the Contractor have agreed to modify the compensation
and certain other provisions of the Amended Franchise Agreement in the same form as the
Original Franchise Agreement was granted pursuant to City Charter Section 3-10 on the
terms herein; and
WHEREAS, pursuant to Section 13.7 of the Amended Franchise Agreement, all
amendments to the Amended Franchise Agreement must be in writing and this
Amendment is necessary to reflect the modifications to the Amended Franchise Agreement
agreed to by the City and the Contractor and as made pursuant to this Second Amendment,
that:
NOW THEREFORE BE IT ORDAINED by the Council of the City of Alameda
Section 1. The City Council hereby approves and authorizes the City Manager to
negotiate and execute, for and on behalf of the City of Alameda, a Second Amendment to
the Amended Franchise Agreement, as shown in Attachment 1.
Section 2. This Ordinance shall be in full force and effect from and after the expiration
of thirty (30} days from the date of its f nal passage.
Presiding Off cer of the City Cauncil
Attest:
Lara weisiger, City Clerk
*~**~*
introduction of ordinance #6-A ~~ ~
04-O1~09
f, the undersigned,
and regularly adopted and
meeting assembled on the
AYES:
NOES:
ABSENT:
ABSTENTIONS:
hereby certify that the foregoing Ordinance was duly
passed by Council of the City of Alameda in regular
7t~ day of April, 2009 by the followin vote to wit:
g
IN UIIITNESS, V1IHEREOF, I have hereunto set my hand and affixed the official
seal of said City Phis 8r~ day of April, 2409.
Lara ~Ueisiger, City Clerk
City of Alameda
APRIL 2009 SECaND AMENDMENT
GF THE DECEMBER 2l 2044 AMENDED FRANCHISE AGREEMENT
BET~IVEEN THE CITY GF ALAMEDA AND ALAMEDA CQUNTY INDUSTRIES
AR INC.
FGR
SGLID WASTE RECYCLABLE MATERIALS AND
ORGANIC MATERIALS SERVICES
This Second Amendment the "Second Amendment"} is entered into this
day of April, 2009, by and between the City of Alameda, a munici al
p
corporation thereinafter "City"}, and Alameda County Industries AR, Inc., a
California corporation whose address is 610 Aladdin Avenue, San Leandro
CA 94511 thereinafter the "Contractor"}, and amends the Jul 3, 2x02
y
Franchise Agreement between the City of Alameda and the Contractor for
Solid Waste, Recyclable Materials and Organic Materials Services as
specified below:
RECITALS:
A. On July 3, 2002, the City and the Contractor entered into that
certain Franchise Agreement between the City~of Alameda and Alameda Coun#
Y
Industries AR, Inc. For Solid Waste, Recyclable Materials and Or anic Materials
« 9
Services the Original Franchise Agreement"}.
B. On December 2l, 2004, the City and the Contractor entered into
that certain December 2004 Amendment amending the Ori final Franchise
g
Agreement. The Original Franchise Agreement as so amended is referred to
herein as the "Franchise Agreement."
C. The City and the Contractor have agreed to modi the
fY
compensation and certain other provisions of the Franchise Agreement in the
same form as the Franchise Agreement was granted pursuant to Cit Charter
Y
Section 3-10 on the terms herein.
D, Pursuant to Section 13.7 of the Franchise A reement all
g ,
amendments to the Franchise Agreement must be in writing and this Amendment
is necessary to reflect the modifications to the Franchise A reement a reed to b
g g y
the City and the Contractor and as made pursuant to this Amendment.
NOV1l, THEREFORE, in and for the mutual covenants contained herein
and other good and valuable consideration, the receipt and ode uac of which
a y
are hereby acknowledged, it is mutually agreed by and between the undersi ned
g
parties as follows:
1. This Second Amendment shall be effective as of the date it is
executed by both parties.
2. Article 1, DEFINITIONS, of the Franchise Agreement is modified to
delete the defnition of "Customer" and replace with:
"Customer" means the Person which Contractor shall submit billing invoice to
and collect payment from for Collection services provided to a Premises. As
provided in Section 5.2.A, the Contractor may establish policies to determine
whether the Customer is either the Owner of the Premises or the Occupant,
provided that the Owner of the Premises shall be responsible for payment of
Collection services in the event an Occupant of a Premises, which Contractor
has invoices as the Customer of Owner's Premises, fails to make such payment,
3. Article 3, TERM OF AGREEMENT, Section 3.4 OPTION TO
EXTEND TERM of the Franchise Agreement is deleted in ~ its entirety and
replaced with:
At the City's sole discretion, the City shall have the option to extend this
Agreement, twice, for up to a period not to exceed five ~5} years each from
October 1, 2012 through September 30, 2011 and from October 1, 2011 though
September 30, 2022. If the City elects to exercise these options, it shall give
written notice to Contractor at least one hundred eighty X1$0} calendar days prior
to September 30, 2012 and at least one hundred eighty X180} calendar days prior
to September 30, 2017, respectively.
The City hereby exercises both of its options to extend this Agreement for five ~5}
years each pursuant to Section 3.4 of the Franchise Agreement, as amended by
this Second Amendment, and the Contractor accepts such exercises. The Term
of the Franchise Agreement shall continue until midnight September 30, 2022,
unless terminated in accordance with Section 11.2 of the Franchise Agreement.
4. Article 4, SCOPE OF AGREEMENT, Section 4.11.2,
SPECIFICATIONS of the Franchise Agreement is amended by adding the
following language at the end of Section 4.11.2 Specifications:
Contractor agrees that not later than December 31, 2012,100°/0 of all of the Solid
vllaste Collection vehicles and Recyclable Materials and Organic Materials
Collection vehicles used regularly on Collection routes by the Contractor shall be
replaced with new Clean Alternative Fuel Vehicles, subject to the mutual
agreement of the City and the Contractor as to the year, model and make of
Clean Alternative Fuel Vehicles to be acquired and the phase-in period for their
deployment. The new vehicles may be purchased or leased by the Contractor,
may include cooperation with the City to obtain grant funds to fulfill the purchase
andlor lease requirements of this Section, and the change shall be accom lished
p
in accordance with Sectian 5.8.
5. ARTICLE 5, OTHER SERVICES, Section 5.2.A. GENERAL is
amended by adding the following language at the end of Section 5.2.A. General;
Contractor may establish procedures and policies for invoicing which ma
y
include: deposits; property owner contracts; and fate fees. Where the occupant
of the premises is a tenant of the owner, far invoicing purposes, the Contractor
may, per its awn criteria and policies, require the Owner of a Premise to be a
customer. The Contractor shall provide property owner~with a 12 month written
notice prior to changing an existing account.
6. ARTICLE 8, CONTRACTOR'S COMPENSATION, Section
8.3.2.B.5.a, Forecasted labor-related costs, is deleted in its entirety and replaced
with
a. Forecasted labor-related casts shall be' forecasted as follows:
1. In the case of employees not subject to the Teamsters Union Local
70 bargaining agreement, labor related costs shall be calculated b
y
multiplying ~1 }the Allowed labor-related costs for Rate Period One by one
~1} plus the percentage change in the "San Francisco-Oakland-San Jose
Metropolitan Area Consumer Price Index Urban Wage Earners; 1982-
84=100}," which is compiled and published by the U. S. Department of
Labor, Bureau of Labor Statistics or its successor agency, between the
most-recently-published monthly index at the time of the application and
the corresponding monthly index published twelve X12} months earlier,
and ~2} multiplying the result of step one by the same percentage change
used in step one.
2. In the case of employees subject to the Teamsters Union Local l0
bargaining agreement, labor related costs shall be the actual wages and
benefits forthe Rate Period in accordance with the bargaining agreement.
1. ARTICLE 8. CONTRACTOR'S COMPENSATION, Section 5.4.5,
Compensation for Rate Period Eight, is deleted in its entirety and replaced with:
8.4.5 Contractor's Compensation far Rate Period Eight
Contractor's Compensation for Ra#e Period Eight, shall consist of forecasted
annual cost of operations, plus profit, plus forecasted Pass-Through Casts. Each
of these amounts shall be calculated in accordance with this section usin
g
current information and values and shall be based on forecasted costs for Rate
Period Seven. Ninety X90} calendar days prior to the f:rst day of Rate Period
Eight, Contractor shall submit an application requestin the amount of
g
Contractors Compensation for Rate Period Eight. The application shall be
based on Contractor's Compensation for Rate Period Seven. The a lication
pp
shall be submitted in the format, and shall calculate Contractor's Com ensation
p
in the manner described in this Section.
A. Forecast Annual Cost of Operations. Forecasted annual cost of
operations shall be calculated as follows:
1. Forecasted labor-related costs shall be calculated as follows:
a. fn the case of employees not subject to the Teamster Union
Local 70 bargaining agreement, by multiplying ~1 } the Allowed
labor-related costs for Rate Periad Seven by one ~1 } plus the
percentage change in the "San Francisco-Oakland-San Jose
Metropolitan Area Consumer Price Index Urban Wage Earners;
1982-84=100}," which is compiled and published by the U. S.
Department of Labor, Bureau of Labor Statistics or its successor
agency, between the most-recently-published monthly index at the
time of the application and the corresponding monthly index
published twelve X12} months earlier, and
b. In the case of employees subject to the Teamsters Union
Local l0 bargaining agreement, by applying the actual wages and
benefits in accordance with the bargaining agreement .
2. Forecasted vehicle-related costs for Rate Period Seven shall be
forecasted by multiplying the forecasted vehicle-related casts for
Rate Period Seven by one ~1} plus the percentage chap a in the
g
"Motor Vehicle Related Index, All Urban Consumers, U.S. City
Average API-U} 1982-1984 = 100," between the most-recently-
published monthly index at the time of the application and the
corresponding monthly index published finrelve X12} months earlier,
3. Forecasted Recyclable Materials Processing costs shall be
forecasted for Rate Period Eight in an equivalent manner to the
method described in Section 8.3.2.B.5.c.
4, Forecasted Organic Materials Processing costs shall be forecasted
for Rate Period Eight in an equivalent manner to the method
described in Section 8.3.2.B.5.d.
5. Forecasted other costs for the Rate Period Eight shall be
forecasted by multiplying the forecasted other-related costs for
Rate Period Seven by one ~1} plus the percentage change in the
"San Francisco-Oakland-San Jose Metropolitan Area Consumer
Price Index All Urban Consumers; 1982-84=100}" between the
most-recently-published monthly index at the time of application
and the carresponding monthly index published twelve X12} months
earlier.
6. Farecasted depreciation expense shall be the amount specified in
Exhibit J far vehicles, Containers, and facilities.
7. Forecasted annual cost of operations for Rate Period Eight shall
equal the sum of the following costs, which shall have been
calculated in accordance with procedures in this Section:
a. Forecasted labor-related costs
b. Forecasted vehicle-related costs
c. Forecasted Recyclable Materials Processing costs
d. Forecasted organic Materials Processing costs
e. Forecasted other costs
f. Forecasted depreciation expense
B. Calculate Profit. Prot shall be calculated by dividing the forecasted
annual costs of operations for Rate Period Eight by 0.90, and subtracting
the forecasted annual costs of operations from the dividend.
C. Forecast Pass-Through Costs. The forecasted Pass-Through Casts shall
consist of forecasted Disposal costs, forecasted interest expense, and
forecasted regulatory fees calculated in accordance with the following
procedures:
1. Forecasted Disposal costs shall be the same as in Section
8.3.2.B.7.a.
2. Forecasted interest expense shall be based on interest expense in
Exhibit J.
3. Forecasted lease cost shall be the amount specif ed in Exhibit J for
vehicles, equipment, containers, and facilities.
4. Forecasted regulatory fees shall be calculated in the same manner
as Section 8.3.2. B.7.c using current information and data.
D. Determine Contractor's Compensation for Rate Period Eight. Contractor's
Compensation for Rate Period Eight shall be equal to the sum of the
following:
a. Forecasted annual cost of operations (determined in accordance
with Step A above)
b. Profit (determined in accordance with Step B above)
c. Forecasted Pass-Through Costs (determined in accordance with
Step C above)
The Contractar's Compensation for Rate Period Eight as calculated in
accordance with this Section shall be the only compensation due to
Contractor for such Rate Period. No adjustments for actual costs shall be
made at the conclusion of Rate Period Eight or at any other time during
the Agreement.
8. ARTICLE 8, CONTRACTOR'S C~MPENSATIDN, Section 8.4.8,
Contractor's Compensation~for Rate Period Ten, of the Franchise Agreement is
deleted in its entirety and replaced with:
8.4.6 Contractor's Compensation for Rate Period Ten
Contractor's Compensation for Rate Period Ten, shall consist of forecasted
annual cost of operations, plus profit, plus forecasted Pass-Through Casts. Each
of these amounts shall be calculated in the same manner as Section 8.4,.5 using
current information and values and shall be based an forecasted costs far Rate
Period Nine rather than costs for Rate Period Eight.
9. ARTICLE 8, CONTRACTOR'S COMPENSATION, Section 8.5
CONTRACTOR'S COMPENSATION FOR EXTENSION PERIODS, of the
Franchise Agreement is deleted in its entirety and replaced with:
8.5 CONTRACTOR'S COMPENSATION FOR EXTENSION PERIODS
Contractor's Compensation for each of the Rate Periods during the extension
periods, if any, shall consist of the forecasted annual cost of operations, plus
profit, plus forecasted Pass-Through Costs.
The First Rate Period of the extension period ~i.e., Rate Period Eleven} shall be
calculated in the same manner as that described in Section 8,4.5 using current
information and values and shall be based on forecasted costs for Rate Period
Ten rather than forecasted costs for Rate Period Eight.
The Second Rate Period of the extension period ~i.e., Rate Period Twelve} shall
be calculated in the same manner as that described in Section 8.3 using current
information and values and shall be based on actual costs for Rate Period Ten
rather than Rate Period One.
The Third Rate Period of the extension period ~i.e., Rate Period Thirteen} shall
be calculated in the same manner as that described in Section 8.4.5 using
current information and values and shall be based on forecasted costs for Rate
Period Twelve rather than costs for Rate Period Eight.
The Fourth Rate Period of the extension period ~i.e., Rate Period Fourteen} shall
be calculated in the same manner as that described in Section 8.4.5 using
current information and values and shall be based on forecasted costs for Rate
Period Thirteen rather than costs for Rate Period Eight.
The Fifth Rate Period of the extension period ~i.e., Rate Period Fifteen} shall be
calculated in the same manner as that described in Section 8.3 using current
information and values and shall be based on actual costs for Rate Period
Thirteen rather than Rate Period One.
The First Rate Period of the second extension period ~i.e., Rate Period Sixteen}
shall be calculated in the same manner as that described in Section 8.4.5 using
current information and values and shall be based on forecasted casts for Rate
Period Fifteen rather than forecasted costs for Rate Period Eight.
The Second Rate Period of the second extension period ~i.e., Rate Period
Seventeen} shall be calculated in the same manner as that described in Section
8.4.5 using current information and values and shall be based on forecasted
costs for Rate Period Sixteen rather than Rate Period Eight.
The Third Rate Period of the second extension period ~i.e., Rate Period
Eighteen} shall be calculated in the same manner as that described in Section
8.3 using current information and values and shall be based on actual costs for
Rate Period Sixteen rather than costs for Rate Period Cne.
The Fourth Rate Period of the second extension period ~i.e., Rate Period
Nineteen} shall be calculated in the same manner as that described in Section
8.4,5 using current information and values and shall be based on forecasted
costs for Rate Period Eighteen rather than costs for Rate Period Eight.
The Fifth Rate Period of the second extension period ~i.e., Rate Period Twent
y}
shall be calculated in the same manner as that described in Section 8,4.5 usin
. 9
current information and values and shall be based on forecasted costs for Rate
Period Nineteen rather than Rate Period Eight.
10. ARTICLE 8, CONTRACTOR'S CCMPENSATI~N, Section 8.12.B.
Contractor's Compensation Adjustment for Rate Year One and Rate Year Two of
the Franchise Agreement is deleted in its entirety and replaced with:
B. The remaining balance of the Additional Rate Period One and Two
Compensation, consisting of $1,054,055, shall be paid to Contractor no
later than May 1, 2009. Payment of such Additional Rate Period ane and
Two Compensation shall not be subject to Franchise Fees or any other
fees authorized under Article Vli of this Agreement, and shall not be
counted as revenue in the revenue reconciliation process described in
Section 8.7 of the Agreement. Any prior requirement to compensate the
company in rate years 11, 12, and 13, associated with the Additional Rate
Period ane and Two Compensation is hereby eliminated.
11. ARTICLE 8, CONTRACTOR'S COMPENSATION, Section 9,
INTERIM COMPENSATION ADJUSTMENT is modifed by adding the followin
g
language as a second paragraph:
Contractor agrees that the interim Rate Adjustment request received on
December 23, 2008 is withdrawn in its entirety and that Contractor will not seek
any future Interim Rate Adjustments due to either labor costs, commodity cast
increases, or commodity revenue shorkfalls forthe full term of the franchise.
12: Except as amended by this Second Amendment, the terms and
conditions of the Franchise agreement shat! remain in full force and effect;
provided, however, that to the extent of any inconsistency between the Franchise
Agreement and this Amendment, the terms of this Second Amendment shall
prevail.
13. Contractor and City agree that as part of the Rate Period Nine
review, the Contractor's portion of the Recycling Commodities Revenue Sharin
. 9
as detailed in Exhibit J, Section F, will be assigned to the appropriate line items
within the attached Exhibit J.
14. The City Manager is authorized to make minor modifications and
clarifications to the Franchise Agreement consistent with City Council ap rovals,
p
including non-substantive changes to the Exhibits.
15 EXHIBIT J 'rs deleted in its entirety and replaced with the attached
Exhibit J,
IN UViTNESS WHEREGF, the Parties hereto have caused this Agreement to be
executed on the day and year first above written.
ALAMEDA CGUNTY INDUSTRIES CITY GF ALAMEDA
AR, INC., A California Corporation A Municipal Corporation
Louis Peliegrini
Vice-President
Ann Marie Gallant
Interim City Manager
RECGMMENDED F4RAPPR~VAL
Matthew T, Naclerio
Public Works Director
APPRGVED AS TG FGRM:
Mohammed Hill
Assistant City Attorney
EXHIBIT J
CLARIFICATION OF CONTRACTOR'S COMPENSATION
This Exhibit provides information that shall be used in determining Contractor's Compensation
with the exception of Contractor's Compensation for Rate Period Cne and Rate Period Two,
A. ALLOWABLE PERSONNEL AND LABOR HOURS
Contractor developed Contractor's Proposal and estimated its compensation requirement based
on numerous assumptions related to provision of Collection services in the City, including
assumptions with regards to the number of personnel and the number of labor hours that its
personnel will incur. Award of this Agreement to the Contractor was based on several factors
including its proposed compensation requirements of which a significant portion is attributed to
labor costs. In order to ensure that, the City continues, over the Term of the Agreement, to
benef t from the Contractor's Proposal, labor costs shall not increase as a result of an increase in
the number of personnel or the number of labor hours unless Contractor can demonstrate that the
increased labor personnel andlor hours are necessary to provide service to additional Customers
due to growth in the City or to adjust for changes in labor hours due to aCity-approved interim
compensation adjustment as described in Section $.9. In recognition of this limitation on
Contractor's Compensation, the personnel and labor hours listed in the following table shall be
considered allowable personnel and labor hours for the purpose of determining Contractor's
Compensatian.
Contractor's labor-related compensation shall be based on the lesser of actual labor hours
incurred to provide the services described in this Agreement or those hours shown on Schedule J,
multiplied by the lesser of the actual per-hour labor costs including benefits} or the labor cost
per hour including benefits shown on Schedule J.
Remainder of this page intentionally left blank
Page: 1
~ 1986• I City of Alameda
1212210 9:00 AM Franchise Agreement
C:IDOCUME--IICATT_U--IILOCALS-11TemplXPgrp~viselACIcity EXHIBIT ~_1Mo~-02~1_l.doc Amendment 1
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The Contractor shall not be compensated for labor costs associated with any personnel
and labor hours other than those listed in the table above unless the number of route
drivers is increased based on the Contractor's demonstration to the City of the need to
increase the number of routes in accordance with Section B. Note: Co orate
Mana ement fees attributable to CEOlCF4 General Mana er and Controller.
B. ALLa~VABLE ROUTES
The number of allowable routes that shall serve as the basis for the Contractor's
Compensation are Iisted in the table below. Note that the route list was prepared based
on the Contractor's Proposal. Routes reflected as Tess than a whole number re resent
routes allocated across service se ments
ROUTES QuantitylDay
Residential Solid waste 6,00
Residential Recyclable Materials 6.00
Residential organic Materials 4.00
Commercial Bin Solid ~Uaste 3.00
Commercial Recyclable Materials .50
Debris Box Solid'Waste and Recyclable Materials .$0
Clean-u (Bulky Item pickup Container distribution 2.04
Commercial organics 0.50
City Services 0.20
TOTAL 23.00
The Contractor shall not be compensated for an increase in the number of routes unless
the Contractor demonstrates to the City the increase is a direct result of growth in the
number of Customers served in the community or is a result of changes due to a City-
approvedInterim Compensation Adjustment as provided in Section 8.9.
C. ALLD'WABLE ROUTE HDURS
The Contractor developed Contractor's Proposal and estimated its compensation
requirement based on numerous assumptions related to provision of Collection services
in the City, including assumptions with regards to the number of route hours that will be
incurred. The number of route hours significantly impacts the Contractor's
Compensation because it impacts vehicle-related costs such as fuel, tires and tubes, parts,
and supplies. Award of this Agreement to the Contractor was based on several factors
including its proposed compensation requirements of which a signif cant portion is
attributed to vehicle-related casts. In order to ensure that the City continues, over the
Term of the Agreement, to benefit from the Contractor's Proposal, vehicle-related costs
shall not increase as a result of an increase in route hours unless Contractor can
demonstrate and City is able to verify that the increased route hours are necessary to
provide service to additional Customers due to growth in the City or to adjust for changes
~n route hours due to aCity-approved interim compensation adjustment as described in
Section $.9. In recognition of this limitation on Contractor's Compensation, the route
hours listed in the following table shall be considered allowable route hours for the
71986.1 Page:2
410 U09
C:ID~CUME~ 1 ICATT_U~ 11IrOCALS~ I ITemplXPgrp~viselAC[city EXHIBIT
Amendment I
City o1= Alameda
Franchise Agreement
J 1 Mao-02 1 l .dac
purpose of determining Contractor's Compensation. Allowable .route hours ,may, refl_ ect a
ortion of a route servin multi le service se ments.
Allowable Route Hours Hours Routes Total
Hours
Residential Solid Waste 8 6.00 12,450
Residential Rec clable Materials 5 .6.00 I2,480
Residential 4r~anic Materials 8 4.00 $,320
Commercial Bin Solid Waste 8 3.00 6,240
Commercial Rec clable Materials 8 0.50 1,040
Debris Bax Solid Waste and Rec clable Materials 8 0.$0 1,664
Clean-u (Bulk Item icku Container Distribution 5 2.00 4,160
Commercial4rQanics 8 0.50 1,044
Ci Services 0,20 416
23.00 47,840
D, ALLOWABLE LEASE AMaUNTS
Allowable annual lease amounts to be included in the Contractor's Com ensation over
P
the initial ten X10} year portion of the Term of the Agreement include the following:
Annual Allowable Lease Amounts
Collection Vehicles
Residential Solid Waste $226,881.92
Residential Recyclable Materials $295,345.20
Residential Qrganic Materials
Commercial Bin Solid Waste $301,554.45
$77,659.28
Commercial Recyclable Materials $0,00
Debris Box Solid Waste and Recyclable $27 173.60
Materials $0.00
Clean-upBulky Item pickup $ 13,586.50
Transfer truck
Subtotal $945,201.28
ether Support Vehicles $21,738.$8
Collection Containers
Carts
Bins
Debris Boxes
Compactors
Subtotal
Total Allowable Lease Amount $155,526.45
$78,543.10
$36,276,40
S30o,64S.95
$1,Z67,~86,i1
11986.1 Page:3 City of Alameda
~~~ 1~~9 Franchise Agreement
C:IDOCUME~ I ICATT_U~ IILOCALS~ 11TemplXPgrpwiselAClcity EXHIBIT J 1 Mod-02 I l .doc
Amendment I
In the event new vehicles or Containers are acquired with City approval under Section
4,11.2 of the Second Amended Agreement or to accommodate growth in the City at some
point during the Term, the cost of the new equipment shall be depreciated for the lease
payments amortized, in the case of leased equipment} over the Term including all
optional extension periods, which may be granted under Section 3.4. If new vehicles or
Containers are acquired with City approval this Section of this Exhibit shall be amended
to reflect any changes in depreciation or lease amounts.
E. ALL4wABLE PR4CESSYNG COSTS
The following Processing costs are allowable Processing costs during the Term of the
Agreement based on Contractor's Proposal to use Processing Sites identif ed in Section
4,7. Processing costs shall reflect the net Processing cost (i.e., Processing cost less
revenues earned from the sale of materials},
Recyclable Materials Organic Materials organic Materials
Processing Costs Processing Costs Processing Costs
~$Iton} excluding Yard including Food
waste ~$Iton} waste ~$Iton}
Rate Period Three $0.00 $ ~ ~ $ ~ ~
~~ to be inputted based formula below.
For Rate Periods Eight through Twenty, the Processing costs shall be adjusted by
multiplying the Processing cost for the prior Rate Period by the most recently published
"San Francisco-Oakland-San Jose Metropolitan Area Consumer Price Index Urban
wage Earners; 1982-84=100}" and dividing by the index published twelve X12} months
prior to the most recently published index. For example, the Recyclables Material
Processing cost for Rate Period Three shall be calculated as follows:
1, Most recently published index April 2004) =132.0
2. Index published twelve months period to most recently published index April
2003} =130.9
3. Rate Year Three Recyclable Materials Processing cost = $ x X132.01130.9}
$ per Ton.
Note: The calculated Processing cost shall be rounded to the nearest cent.
The City and Contractor agree that for Rate Period Eight the net processing cost for
recyclable materials is f xed at $880,000. The City and Contractor further agree that as
part of Rate Period Nine, the $880,000 will be assigned to cost line items in Exhibit J.
The City further acknowledges that the net processing cost for Recyclable Materials ma
y
or may not increase in future Rate Periods.
719Sb.1 Pager City of Alameda
-1~01~0~ Franchise Agreement
C:ID000M E~ 11CATT_U-- i1LDCALS~ IlTemplXParpwiselAClcity EXHIBIT J C Mod-02 ! I .doc v
Amendment ! r
F. TONNAGE ASSUMPTIONS ~Mar~e, last night this was to, b= re,,moved~wh_Y
still in and if should be in, are the table numbers the right ones?}
The Contractor developed Contractor's Proposal and estimated its compensation
requirement based an numerous assumptions related to provision of Collection services
in the City, including assumptions with regards to the quantity of Solid Waste,
Recyclable Materials, and Organic Materials that will be Collected from Generators. The
quantity and type of materials Contractor assumed would be Collected has a direct impact
on its overall compensation requirement. Award of this Agreement to the Contractor was
based on several factors including Contractor's proposed compensation requirements and
estimated diversion results.
Tonnage Assumptions
Estimated Tons Collected per
Source Year
Rate Period
Three
Solid Waste
Single-Family and Multi-flex Collection 11,977.79
Multi-Family Collection
Clean-uplBulky Item Collection 916.68
Commercial Collection 15,725.51
Debris Box and Compactor Collection 7,749.90
SUBTOTAL 36,369.38
Rec clable Materials
Single-Family and Multi-Plex Collection 12,641.71
Multi-Family Collection
Clean-up Collection
Commercial Collection 521.31
E-Scra 3 00.00
Subtotal 13,463.02
Or anic Materials
Single-Family and Multi-Plea Collection 7,312.20
Multi-Family Collection
Clean-up Collection
Commercial Collection Include Wood 983.33
SUBTOTAL 8,295 , 5 3
Total Materials Collected 57,127.92
Diversion Percentage ~~Recyclable Materials and Organic
Materials (Total Materials Collected .
~ a ~ o
a7 /o
7198.1 Pager City of Alameda
~1Q11Q9 Franchise Agreement
C:ID000ME~ 11CATT_U~ lIL4CALS~ I lTemplXPgrp~viselACIcity EXHIBIT J I Mod-02 l I .doc
Amendment 1
G. Rec chin Commodi Revenue Sharin
Any Revenue received by the Contractor from the sale of Recyclable Materials generated
in the City and Processed during any Rate Period will be shared by the City and the
Contractor in accordance with the schedule below. The City's share will be paid or
applied by the Contractor in the form and manner that the City directs within thirty X30}
days after the submittal of required audited financial statements; provided, however, that
to the extent all or any portion of such payment or application would cause the Contractor
to be in default with its primary lending institution to which the Contractor is indebted in
a material amount, and the City is provided a letter from a senior officer from the primary
lending institution stating such, all or that portion of such payment or application which
would cause such default will be deferred until it can be effected without causing such a
default. Said deferral shall accrue. interest at the rate the City normally would have
received on the funds during that time.
Recycling Commodit. Revenue, Sharing Schedule:
Revenue from the Contractor's sale of all Recyclable Materials Processed at the
Processing Site for the applicable Rate Period shall mean the Contractor's gross revenue
from the sale of any such Materials, and shall not be reduced to reflect the cost of
transporting any such Materials to market. Such Gross Revenue will be divided by the
total tons of such Recyclable Materials delivered to the Processing Site during such Rate
Period ~"Total Tons"} to determine the total average amount per ton the "Average
Price"}. The Average Price will then be multiplied by that portion of the Total Tons
generated in the City the "City Tans"} to determine the revenue attributable to the City
the "Alameda Revenue"}. The Alameda Revenue will be shared as follows: ~a} the
amount resulting from multiplying the City Tons by the f rst $26 of the Average Price
will belong to the Contractor; fib} the amount resulting from multiplying the City Tons by
the amount by which the Average Price up to $80 exceeds $26, if any, will be shared
75% by the Contractor and 25% by the City; and ~c} the amount resulting from
multiplying the City Tons by the amount by which the Average Price exceeds $80, if any,
will be shared 25% by the Contractor and 75% by the City.
Revenue Sharing Examples:
1. If for a given Rate Period the Net Revenue was $ x,473,939, the Total Tons were
24,809, and the City Tons were 12,405, then the Average Price would be $59.41
x$1,473,939124,809}, the Alameda Revenue would be $736,981 x$59.41 x 12,405}.The
City's share would be $103,613 x$59.41 - $26.00 = $33.41 x 12,405 x 25%} and the
Contractor's share would be $633,365 [t$26 x 12,405) + x$59.41 - $26.00 = $33.41 x
2. rf for a given Rate Period the Net Revenue was $2,419,000, the Total Tons were
24,809, and the City Tons were 11,389, then the Average Price would be $97.50
x$2,419,000124,809}, the Alameda Revenue would be $1,110,427 x$97.50 x 11,389}. The
City's share would be $303,233 x$80 - $26.00 = $54.00 x 11,389 x 25% plus $97.50 -
$80 = $17.50 x 11,389 x 75%} and the Contractor's share would be [x$26.00 x 11,389} +
T198b,1 Page:b City oFAlameda
X101109 franchise Agreement
C:IDOC[JME--IICATT_U~IILOCALS-llTemplXFgrpwiselAClcity EXHIBIT J lMo~-02 1_l.doc
Amendment I
x$80.00 - $26.00 = $54.00 x 11,389 x 75%~ + x$97.50 - $$0,00 = $17.50 x 11,389 x
25%~].
G, DEPRECIATIGN AND INTEREST EXPENSE
No depreciation and interest expenses are allowable costs under the Agreement as
amended, unless approved by the City because the Contractor developed its Contractor's
Proposal assuming equipment will be leased. Allowable lease costs are listed in Section
D of this Exhibit.
719$b.l Page:? City of Alameda
~~01~~9 Franchise Agreement
w,.
.1D000ME--IICATT_U~IIL4CALS~11TemplYPgrptiviselACIcity EXHIBIT ~ IMo~-02 i 1.doc
Amendment ! r
CITY OFALAMEDAORDINANCE No.
New Series
E
~°, AMENDING THE ALAMEDA MUNICIPAL CODE BY AMENDING
VARIOUS SECTIONS OF CHAPTER XXI SOLID UvASTE AND
~ ~ 4 RECYCLING} TO CLARIFY THE DEFINITION OF CUSTOMER
~ ~ AND CUSTOMER RESPONSIBILITfES
~ ~'
L
~.
~ BE 1T ORDAINED b the Council of the Cit of Alamed
~ _ y y a that.
Section 1. The Alameda Municipal Code is hereby amended by
amending Section 21-2 Definitions} of Article II General Regulations} of Chapter
XXI Solid vtilaste and Recycling} to read as follows:
Customer shall mean the person to whom franchisee andlor permittee shall
submit billing invoices and from whom it shall collect payment for collection
services provided to a premises generating solid waste, recyclable materials,
organic materials, and receiving collection services from the franchisee andlor
permittee. As determined pursuant to the policies of the franchisee, the
customer may be the occupant or owner ofthe premises, provided that the owner
of the premises shall be responsible for payment of collection services, in the
event an occupant of a premises, who is identified as the customer with respect
to the owner's premises, fails to make such payment.
dull!-family shall mean any residential complex with five ~5} or more units used
for residential purposes irrespective of whether residence therein is transient,
temporary or permanent. lU1ulli-family premises includes yacht harbors and
marinas where residents live aboard boats. Multi-family premises include
condominiums and cooperative apartments with five ~5} or more units. Such
premises shall have centralized solid waste, recyclable materials, and organic
materials collection services sufficient for all units on the premises, which service
shall be billed to the customer.
1Vlulti-plex shall mean any residential complex with two ~2} to four ~4} units used
for residential purposes irrespective or whether residence therein is transient,
temporary, or permanent. Multi-plex premises include condominiums and
cooperative apartments with two ~2} to four ~4} units. Such premises may have
individual or consolidated solid waste, recyclable materials, and organic materials
collection service sufficient in volume to service each unit on the premises, and
will be billed to customer.
Introduction of Ordinance #5-A ~2~
04-07-09
Section 2. The Alameda Municipal Code is hereby amended by
amending Subsection 21-2.1 Solid Uvaste, Recyclable Materials, and Organic
Materials Collection Required} of Section 21-2 Collection and Removal} of
Article II General Regulations} of Chapter XX[ Solid Wvaste and Recycling} to
read as follows:
a. Solid Wasfe. The occupant or owner of any premises in the City in, upon,
or from which solid waste is created, produced, or accumulated, shall dispose of
the solid waste at least once each week through the solid waste collection
service of the franchisee, unless otherwise exempt as per subsection 21-
20.4~d}~4}. The customer of the premises shall pay the franchisee for such
removal at rates established by the franchisee that comply with City-established
policies and do not exceed the rate ceilings set by the City.
b. ~ Recyclable Nlaferials and ~rgarric Materials. It is mar~datory that the
owner or occupant of any premises contract with and pay the franchisee for
recyclable materials and organic materials collection services, unless otherwise
exempt as per subsections 21-20.4~d}. The owner or occupant shall pay the
franchisee at rates established by the franchisee that comply with City-
established policies and do not exceed the rate ceilings set by the City. !t is
mandatory that the customer ensures that recyclable and organic materials are
placed in the proper collection containers in accordance with franchisee's
instructions.
c. Service Arrangements. Each customer shall make arrangements with the
franchisee for the required collection of solid waste, recyclable materials, and
organic materials. Such arrangements shall specify the location of the premises,
the type and size of containers to be provided by franchisee for collection of solid
waste, recyclable materials, organic materials, and the frequency of collection.
Each customer shall contract with franchisee for a sufficient number of solid
waste containers to hold all solid waste that is created, produced, or accumulated
on such premises between the times of successive collections by the franchisee.
If the Public Works Director determines that additional receptacles or capacity
are necessary, the customer shall provide for such additional service within
fifteen X15}days of the mailing of a written notice by the Public Uvorks Director.
d. Failure ~o lnifia~e Service. Should any owner or occupant fail to initiate the
collection of solid waste, recyclable materials, or organic materials or fail to
obtain additional service when required pursuant to paragraph c above, the City
may initiate such service or additional service at the customer's expense.
Section 3. The Alameda Municipal Code is hereby amended by
amending Subsection 21-20.4 (Charges for Service) of Section 21-20 (Franchise
Agreements) of Article III (Franchise Agreements) of Chapter XXI (Solid Waste
and Recycling) to read as follows:
b. Payment. Every customer receiving integrated waste collection service for
solid waste, andlor recyclable materials, andlvr organic materials shall pay the
rate for those services established by the franchisee in accordance with City-
established policies, whether used in whole or in part. if an occupant of a
premises fail to pay, the property owner shall be responsible for payment to the
franchisee.
Section 4. Severability Clause. If any of the provisions of this chapter
or the application thereof to any person or circumstances is held invalid, such
invalidity shall not affect any other provisions or applications of this chapter which
can be given effect without the invalid provision or application. To this end the
various provisions of this chapter are severable and each would have been
enacted without the other.
Section 5. This ordinance shall be in full force and effect from and after
the expiration of thirty (30) days from the date of its final passage.
Presiding Officer of the City Council
Attest:
Lara 1lveisiger, City Clerk
**~~**
i, the undersigned, hereby certify that the foregoing Ordinance was duly
and regularly adopted and passed by Council of the City of Alameda in regular
meeting assembled on the lk"day of April, 2009 by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTENTiO~NS:
IN VI~ITNESS, V1IHEREOF, I have hereunto set my hand and affixed the official
seal of said City this 8#"day of April, 2009,
Lara Weisiger, City Clerk
City of Alameda
CITY OF ALAI~EDA
Memorandum
To: Honorable Mayor and
Members of the City Council
From: David Brandt
Acting City Manager
Date: April 1, 2009
Re: Discuss Alternative Uses for the Mif Albright Golf Course and Receive a
Presentation by Kemper Sports, Management
BACKGROUND
The Mif Albright Course is a 12-acre site located within the Chuck Corica Galf
Complex. The site was constructed in 1982 and was intended to provide a shorter
alternative to the existing full-size courses. Its shorter configuration greatly reduced the
overall amount of time required to complete a round of golf and was much more suitable
for beginning golfers or forthose not interested inplaying afull-length course.
In fall 2001, the City selected the National Golf Foundation ~NGF} to conduct an
Operational Review of the entire Chuck Corica Golf Complex. A major component of
NGF's report focused on both the number of rounds played and the associated
revenues and expenditures for the Mif Albright Course. NGF recommended closing the
Mif Albright Course due to the steady decline in both the rounds played and associated
revenues, coupled with a steep rise in the cost to maintain and operate the site.
In light of the continued downward trend in the rounds played and revenue generated,
along with the continued rise in operational expenditures and the strict water restriction
imposed by the East Bay Municipal Utility District ~EBMUD}, the facility was closed in
November 2005. At that time, the City Council requested that staff provide some
alternative uses for the site.
The City Council conducted an extensive discussion of possible alternative uses during
their meeting on February 17, 2009. Following this discussion, the City Council referred
the item to both the Recreation and Park Commission and the Golf Commission fortheir
recommendations. The City Council also requested that Kemper Sports Management
examine the long-term viability of operating the course and provide their input.
DISCUSSION
During their meeting on March 12, 2009, the Recreation and Park Commission had an
extensive discussion of potential alternative uses for the Mif Albright Course, including
options for athletic fields, dog parks, an amphitheater, and retaining the site as a golf
City Council
Agenda Item #6-B
D4-D7-D9
Honorable Mayor and April 1, 2009
Members of the City Council Page 2 of 2
course. A number of representatives from local youth sports organizations as well as
dog park enthusiasts also attended the meeting and provided input. At the end of the
discussion, the Recreation and Park Commission approved the following motion, "That
the Mif Albright Course be retained for recreation purposes to be determined at a later
date through a community process."
The Golf Commission held a discussion on the matter during their meeting of March 18,
2009 and continued the item until April 2, 2009, in order to obtain further information.
Kemper Sports Management is currently reviewing the question and will provide a
response as part of their overall presentation on the Chuck Corica Golf Complex
operation during the City Council meeting of April 1, 2009. This presentation will also
focus on a number of improvements Kemper Sports has made to both the management
and operation of the facility as well as a background on the company itself.
FINANCIAL IMPACT
The impact of any of the potential uses for the site can only be determined once an
alternative use is determined, as each alternative has unique funding sources and
special cost impacts. Funds for construction of one or more of these facilities are not
available from the City's present capital project fund appropriations. Even if grants or
other outside revenues were secured, operations and maintenance funds would still
need to be budgeted as increased expenditures in the General Fund.
RECGMMENDATIGN
Discuss alternative uses for the Mif Albright Course, provide direction to staff, and
receive a presentation from Kemper Sports Management.
Respectfully sub fitted,
r
~~
Dale Lillard, Director
Alameda Recreation, Parks & Golf operations
Approved as to funds and account,
Ann Marie G Ilant
Interim Fina e Director
DL:bf
CITY ~ F ALAM E DA
Memorandum
To: Honorable Mayor and
Members of the City Council
From: David Brandt
Acting City Manager
Date: April 1, 2009
Re: Receive a Report on Federal Appropriatians and Economic Recovery and
Reinvestment Act ~ ortunities
BACKGROUND
Each year, the City of Alameda seeks opportunities to secure federal funding through
the annual appropriations process for important City projects. This year, the City is also
eligible for both formula funding and competitive grants through the Economic Recovery
and Reinvestment Act ~ARRA} of 2009, a $181 billion bill intended to preserve and
create jobs promote economic recovery.
DISCUSSION
omnibus Appropriations Biil
In fiscal year 2009 ~FY09}, the City sought federal funding for the Park Street pedestrian
safety transportation improvements project, infrastructure improvements at Alameda
Landing, the East Bay Regional Communications System Authority ~EBRCSA}, the Bay
Farm Island shoreline dike and seawall repair project, the Woodstock to Webster
neighborhood improvement project, and the citywide bus shelter program. Although
appropriations bills are generally enacted prior to the end of the federal fiscal year on
September 30, the majority of FY09 bills were delayed last year. Instead, Congress
passed an omnibus appropriations bill in March 2009 that provided funding for most
federal departments and independent agencies.
The City of Alameda was forkunate to receive funding for two of its six top appropriations
priorities in the FY09 omnibus appropriations bill: $415,000 for the Park Street project,
and $1.11 million for the EBRCSA. In addition, the Bay Farm island project was "listed"
in the Energy and Water Appropriations section of the omnibus bill, which means it is
eligible for funding through the Army Corps of Engineers Continuing Authorities
Program. Staff will continue to work with the local Corps office to secure this funding.
In late January and early February, staff submitted the FY10 appropriations forms, white
papers, and support letters for the City's priority projects to Representative Stark and
Senators Boxer and Feinstein. These materials were submitted well in advance of the
City Council
Agenda Item #6-C
~44T-a9
Honorable Mayor and ~ April ?, 2009
Members of the City Council Page 2 of 6
deadlines set by the various Congressional offices. The FY10 submissions are similar
to those from FY09. The City's federal lobbyists, Holland + Knight, are working with the
City's Congressional delegation to ensure that these projects are submitted to the
Appropriations Committees, which will likely begin their deliberations on the FY10 bills
in June. Final passage of the appropriations bills should occur in September.
American Recovery and Reinvestment Act
!n December, the U.S. Conference of Mayors requested that its member mayors and
their cities develop a list of "shovel-ready" projects in order to prove the tremendous
need in the country for immediate funding for focal infrastructure. At the time, Congress
was out of session, and no bill had been drafted, so there was no information available
about what projects and programs would be eligible for federal funding. In early
January, the 111th Congress was sworn into office, and the House and Senate
leadership began work on the stimulus bill with the President-elect's staff. Althou h
g
they hoped to have a bill drafted and ready for signature shortly after the President's
Inauguration, the actual bill was signed into law several weeks later, on February 17,
2009.
The $787 billion American Recovery and Reinvestment Act ~ARRA} includes $355
billion for upgrades to transportation, infrastructure, construction, health care programs,
education and housing assistance, and energy efficiency projects; $144 billion in state
and local fiscal relief; and $288 billion in personal and business tax credits. The funding
available for cities will be distributed through a combination of formula grants and
competitive grants. Some of the formula grants are solely based on population, while
others are based on a combination of criteria such as population and crime statistics, or
population and community need. In addition, some of the funds will be disbursed
directly from the federal departments and agencies to the local governments, while
other funding will be passed through state or regional agencies, such as the
Metropolitan Transportation Commission.
While many of the federal departments are still developing their guidelines for ARRA
funding, the City has received notice that it is eligible for the following formula grants:
Program Federal Amount City Lead Eligible or Intended Uses
A enc De artment
Eligible Uses: Police vehicles,
portable radio batteries, computer
monitors for Communications Center
Mapping System, mobile digital
Police term finals for patrol vehicles, video
Department recording system for Investigations
via Alameda interview roams, supplement to training
County, funds that are not POST-reimbursable
Byrne Justice subject to 3°/e but are considered mandatory, new P-
Assistance Department of administrative 25 compatible ~interoperable} radio
Grant JAG Justice $104,282 fee $3,128 headsets for all dis atchers, P25 radios
Honorable Mayar and April 7, ~g~9
Members of the City Council Page 3 of 6
Eligible Uses: Activities intended to
create suitable living environments,
Community Department of provide decent affordable housing, and
Development Housing and Development create economic opportunities,
Block Grant Urban Services primarily for persons of local and
CDBG Develo ment $360,846 De artment moderate income.
Eligible Uses: Development of an
Energy Efficiency and Conservation
Strategy; residential and commercial
building energy audits; financial
incentive programs and mechanisms
for energy efficiency improvements;
grants to nonprofit organizations and
governmental agencies for the purpose
of performing energy efficiency
Alameda retrofits; development and
Energy Municipal implementation of transportation
Efficiency Power in programs to conserve energy; energy
Conservation consultation efficient traffic signals and street
Block Grant Department of with other City lighting; renewable energy
EECBG Ener $fi40,600 de artments technolo ies on overnment buildin s.
Eligible Uses: Provide financial
assistance and services, such as rental
Department of assistance, security and utili#y deposits,
Homelessness Housing and Development and utility payments, to prevent
Prevention Urban Services individuals and families from becoming
Fund Develo ment $552,208 De artment homeless.
Department of
Housing and Intended Use: Re-roofing project at
Public Housing Urban Housing Esperanza Housing Complex, including
Ca ital Fund Develo ment $269,717 Authorit re lacin all utters and dawns outs.
Surface
Transportation
Program, Intended Use: Rehabilitation of
Local Streets Department of Central Ave. between Pacific Ave. and
and Roads Trans ortation $1,344,000 Public Works Webster St.
Total $3,231,fi53
Gn March 1l, the City Council adopted a resolution authorizing the filing of an
application for funding the repair and resurfacing of segments of Fernside Boulevard
and Central Avenue using the Surface Transportation Program stimulus funds. Caltrans
recently notified the City that the Central Avenue project was approved, but, due to
potential historic resources impacts, the Fernside project was not. All the funds will thus
be used only for the Central Avenue project. An item on the April l Housing Authority
Board of Commissioners recommends approval of a contract for the roofing project at
the Esperanza Housing Complex, using the Public Housing Capital Fund monies. ~n
May 5, staff intends to bring its proposed plan for spending the Homeless Prevention
Fund and CDBG monies to the City Council for review and approval. Finally, the Police
Department and Alameda Municipal Power, in consultation with the Public Works
Department and the City Manager's office, are developing proposals for the Byrne JAG
and EECBG funds, respectively.
Honorable Mayor and
Members of the City Council
April 1, 2009
Page 4 of 6
In addition to the formula funds available through the ARRA, there are a number of
competitive grants that may hold promise for the City. An interdepartmental team of
staff under the direction of the City Manager's office has been formed to share
information and brainstorm projects. This team, as well as a smaller subset that is
looking solely at potential energy efficiency projects, will continue working together and
with the Holland + Knight lobbyists to position the City so that it can compete for future
ARRA dollars. Since many of the federal agencies and departments are still developin
g
their guidance and cr~ter~a for these compet+tive grants, the following list of competitive
grant opportunities may not be comprehensive.
• Assistance to Firefighters Grant: The primary goal of the Assistance to
Firefighters Grants ~AFG} is to meet the firefighting and emergency response needs
of fire departments and nonaffiliated emergency medical services organizations.
Assistance to Firefighters Grant funding from the ARRA can be used to modify,
upgrade, or construct non-Federal fire stations. Although the Department of
Homeland Security has not released its regulations and guidance yet, the maximum
grant amount is expected to be $15 million, with no matching funds required. The
City will explore applying for this competitive grant to improve one or more City fire
stations.
• Economic Development Administration: The ARRA includes $150 million in
funding for the Economic Development Administration VEDA}, which is housed in the
Department of Commerce. According to EDA's funding announcement, priority
consideration will be given to "distressed" communities that suffer from high levels of
unemployment, low income levels, large concentrations of low-income families,
significant declines in per capita income, large numbers or high rates of business
failures; sudden major layoffs or plant closures, trade impacts, military base
closures, natural or other major disasters, depletion of natural resources, reduced
tax bases, or substantial loss of population because of the lack of employment
opportunities. Staff is preparing an application for $3 million in EDA funding for
Phase 1 infrastructure work at Alameda Landing, including demolition, utility
relocation, and backbone infrastructure.
• Edward Byrne Memorial Competitive Grant Program: As noted above, the City
will receive $104,282 from the Byrne JAG program. The Department of Justice will
also distribute $260 million in competitive Byrne grants. According to the grant
announcement, the monies can be used for: preventing and reducing violent crime
through community-based data-driven approaches; providing funding for
neighborhood-based probation and parole officers; reducing mortgage fraud and
crime related to vacant properties; hiring of civilian support personnel in law
enforcement straining staff, analysts, dispatchers, etc.}; enhancing forensic and
crime scene investigations; improving resources and services for victims of crime;
supporting problem-solving courts; and national training and technical assistance
partnerships. The Police Department is reviewing the grant announcement and
developing the City's application.
Honorable Mayor and
Members of the City Council
April 7, 2a09
Page 5 of 6
• Energy Efficiency and Conservation Block Grant Competitive Funding: The
Energy Efficiency and Conservation Block Grant program contains $2.8 billion in
formula grants and an additional $440 million in competitive grants. The Department
of Energy has not released its guidance yet for the competitive grants.
• Environmental Remediation at Alameda Landing: Staff is exploring whether
Environmental Protection Agency EPA} Brownfields funds may be available for
environmental remediation at Alameda Landing, Approximately 25 acres of land
needs to be cleaned up from commercial standards to residential standards, at a
cost of approximately $1 million. No EPA regulations have been published thus far,
but staff is continuing to monitor this potential source of funding.
• Sewer Loans: The City has submitted project descriptions for sewer loans for a
number of locations in Alameda through the Clean Water State Revolving Fund.
The State Water Resources Control Board is managing this program on behalf of the
federal government.
• Smart Grid Investment Program: According to the Department of Energy, smart
grid is the term used for an elec#ricity delivery system that is integrated with modern
digital and information technology to provide improved reliability, security, efficiency,
and ultimately lower cost to the user. The Department of Energy has $4.5 billion to
distribute through this competitive grant program, but no guidelines have been
released thus far. Alameda Municipal Power is the lead City department for
Department of Energy programs and is working in concert with the Northern
California Power Agency on a number of potential projects.
• Urban Greening Project: The Association of Bay Area Governments ~ABAG} is
preparing astate-level application in the hopes of providing urban greening funding
for several Priority Development Areas with "shovel-ready"* projects that can benefit
from aperformance-based approach to green infrastructure, or low impact
development SLID}. LID uses urban and landscape design techniques to encourage
rainfall to penetrate the ground, rather than run off of urban areas into waterways.
The City submitted the Willie Stargell Avenue Landscape Project to ABAG in the
hopes of securing funding through this process to match the funding already secured
from the State Transportation Improvement Program for the landscape project.
FINANCIAL IMPACT
This report is for information only. There is no financial impact.
REC~MMENDATI~N
Receive a report on federal appropriations and American Recovery and Reinvestment
Act opportunities.
Honorable Mayor and
Members ofi the City Council
Respectfully submitted,
1. A
Lisa Goldman
Deputy City Manager
April 7, 2009
Page 6 of 6
CURRENT APPLICATIONS
CNIL SERVICE BOARD
ONE VACANCY
(FULL TERM EXPIRING 6/30/12)
Jahn M. Armstrong
Dean Batchelor
Michael Rich
Re: Agenda Item #9-A
44-01-09
CURRENT APPLICATIONS
ECONOMIC DEVELOPMENT COMMISSION
ONE VACANCY
(FULL TERM EXPIRING 08/31/2013 -COMMUNITY-AT-LARGE SEAT)
John M. Ar~ms~~ong
James A, Edison
Michael K. Henneberry
David A. Michell
Dennis H. Viehweg
Re: Agenda Ifem #9-A
44-O1-49