2005-12-06 Joint CC ARRA CIC MinutesMINUTES OF THE SPECIAL JOINT CITY COUNCIL,
COMMUNITY IMPROVEMENT COMMISSION AND
ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY MEETING
TUESDAY- - DECEMBER 6, 2006- -7:25 P.M.
Mayor /Chair Johnson convened the Special Joint Meeting at 7:43 p.m.
Vice Mayor /Commissioner /Authority Member Gilmore led the Pledge of
Allegiance.
ROLL CALL - Present: Councilmembers/ Commissioners/ Authority
Members Daysog, deHaan, Gilmore,
Matarrese, and Mayor /Chair Johnson - 5.
Absent: None.
CONSENT CALENDAR
Mayor /Chair Johnson announced that the Transmittal of City of
Alameda Comprehensive Annual Financial Report [paragraph no. 05-
551CC/056CIC] was moved to the Regular Agenda.
Councilmember /Commissioner /Authority Member Matarrese moved
approval of the remainder of the Consent Calendar.
Vice Mayor /Commissioner /Authority Member Gilmore seconded the
motion, which carried by unanimous voice vote - 5.
[Items so enacted or adopted are indicated by an asterisk preceding
the paragraph number.]
( *05- 054CIC) Minutes of the Special Community Improvement
Commission Meeting of November 15, 2005. Approved.
( *05- 055CIC) Recommendation to approve the Amended Contract with
Komorous -Towey Architects, Inc. by increasing the Contract amount
by $68,200 to provide additional architectural and construction
administration services for the Civic Center parking garage.
Accepted.
* **
Mayor /Chair Johnson called a recess to hold the Regular City
Council Meeting at 7:45 p.m. and reconvened the Special Joint
Meeting at 8:03 p.m.
* **
Special Joint Meeting 1
Alameda City Council, Community
Improvement Commission, and Alameda
Reuse and Redevelopment Authority
December 6, 2005
AGENDA ITEM
(05- 551CC /05- 056CIC) Transmittal of City of Alameda Comprehensive
Annual Financial Report (CAFR) for Fiscal Year ended June 30, 2005,
Auditor's report on agreed upon procedures on compliance with
Vehicle Code section 40200.3 Parking Citation Processing, agreed
upon Procedures Report on compliance with the Proposition 111 2004-
05 Appropriations Limit Increment, Police and Fire Retirement
System Pension Plans 1079 and 1082 Audit Report for Fiscal Year
ended June 30, 2005, Metropolitan Transportation Commission Grant
Programs Financial Statements for year ending June 30, 2005,
Community Improvement Commission basic component unit financial
statements for the year ended June 30, 2005, and Alameda Reuse and
Redevelopment Authority basic component unit financial statements
for the year ended June 30, 2005.
The City Auditor introduced the City's External Auditor, Maria
Giannell, Maze & Associates.
The External Auditor gave a presentation summarizing the financial
statements and management recommendations.
Mayor /Chair Johnson requested an explanation of the Finds, Forfeits
and Miscellaneous Revenues.
The External Auditor stated that the items were the aggregation of
ten years of data on the statement of revenues, expenditures and
changes in the fund balance.
Mayor /Chair Johnson stated that there was a small, steady increase
from 1996 through 2004 and a large increase in 2005.
The External Auditor stated other revenue was received in the Fleet
Industrial Supply Center (FISC) fund that was not Finds and
Forfeitures.
Mayor /Chair Johnson stated that the Community Services and Capital
Outlay have declined since 1996.
Councilmember /Commissioner /Authority Member deHaan inquired why
general expenditures dropped for Development and Public Works since
2003, to which the External Auditor responded the drop occurred
because of budget cuts.
Mayor /Chair Johnson stated that Public Safety expenditures
increased from over $23 million in 1996 to over $40 million in
Special Joint Meeting 2
Alameda City Council, Community
Improvement Commission, and Alameda
Reuse and Redevelopment Authority
December 6, 2005
2005.
Councilmember /Commissioner /Authority Member deHaan inquired whether
the External Auditor observed similar trends in other cities, to
which the External Auditor responded in the affirmative.
Mayor /Chair Johnson inquired whether the Public Safety expenditures
included pension costs.
The External Auditor responded in the affirmative; stated total
expenditures in 1996 were $78 million versus $118 million in 2005;
the growth was not substantial.
Councilmember /Commissioner /Authority Member deHaan inquired why
there was a major increase in the General Government and Payments
to Other Agencies expenditure.
The External Auditor responded budget reorganization occurred
several years back within the general government which resulted in
expenditures almost doubling from 1996 to 1999.
Councilmember /Commissioner /Authority Member Daysog inquired whether
a statistical section adjusting for inflation could be prepared.
The External Auditor responded that a separate report could be
provided.
Mayor /Chair Johnson inquired whether more Sewer Fund revenue was
collected than spent and where the total amount of the Sewer Fund
was noted.
The External Auditor responded the Sewer Fund is considered an
Enterprise Fund and was accounted for on a full - accrual basis; the
Cash Flow Statements address revenues collected and expended.
Mayor /Chair Johnson inquired whether $16 million was the total
amount in the Sewer Fund, to which the External Auditor responded
in the affirmative.
Mayor /Chair Johnson inquired why sewer maintenance has been
deferred when spending has been less than revenues collected.
The External Auditor responded that sewer maintenance might have
been deferred because of limited staff and not because of cash.
Mayor /Chair stated that the City's population is lower now than in
Special Joint Meeting 3
Alameda City Council, Community
Improvement Commission, and Alameda
Reuse and Redevelopment Authority
December 6, 2005
1996.
Vice Mayor /Commissioner /Authority Member Gilmore inquired whether
the 2005 debt service was lower than in 1996, to which the External
Auditor responded in the affirmative.
Vice Mayor /Commissioner /Authority Member Gilmore stated there have
been discussions on how much bonds cost the City; everything that
has been accomplished has been done without increasing the total
debt service.
The External Auditor stated management has been good; the last ten
years have not been easy; more is being done with less.
Mayor /Chair Johnson questioned the figures for the Alameda Reuse
and Redevelopment Authority original staff salaries versus actual
salaries.
The External Auditor stated Government Accounting Standards Board
(GASB) requires the original, adopted budgeted amount be presented
for major funds.
Mayor /Chair Johnson inquired whether the staff fringe benefits were
included in the salaries, to which the External Auditor responded
in the affirmative.
Mayor /Chair Johnson inquired why there was a large difference
between the amount budgeted and the amount spent for office
expenditures; stated the original budget for professional and
administrative services was reduced significantly; expenditures
were almost double the original budgeted amount; more accuracy is
needed.
The External Auditor responded the increase in professional and
administrative services was due to an unexpected EDA grant; stated
budget controls and accuracy are far better in the 2004 -05 year.
Councilmember /Commissioner /Authority Member deHaan inquired whether
there were other improvements or further decay from the previous
audit.
The External Auditor stated there has not been further decay;
capital assets are very difficult to control and have improved.
Councilmember /Commissioner /Authority Member deHaan inquired whether
the improvement could be attributed to the Finance Director, to
Special Joint Meeting 4
Alameda City Council, Community
Improvement Commission, and Alameda
Reuse and Redevelopment Authority
December 6, 2005
which the External Auditor responded in the affirmative.
Mayor /Chair Johnson stated the Interim City Manager also
contributed to the improvement.
The External Auditor stated staff tried very hard not to have
adjustments.
Councilmember /Commissioner /Authority Member deHaan stated that the
External Auditor's findings confirm the Council's beliefs.
Mayor /Chair Johnson inquired why there was such a fluctuation in
administrative expenses in the Police and Fire Pension Plans;
stated the benefits and refunds remain about the same.
The External Auditor responded the 1999 -2000 increase was the cost
of the GASB 25 and 27 implementation; the 2004 -2005 increase was
the cost of actuarial studies and implementing new accounting
standards.
Mayor /Chair Johnson stated money cannot be transferred from fund to
fund without Council approval but can be transferred within funds;
inquired whether one department charging another department was
considered an inter -fund transfer.
The External Auditor responded in the negative; stated one
department charging another department is not considered moving
budgeted resources.
Mayor Johnson requested money budgeted for one department and
allocated to another department be highlighted in the next budget.
Vice Mayor /Commissioner /Authority Member Gilmore inquired whether
the ten -year financial plan figures would be scarier for the Police
and Fire unfunded pension benefit obligation.
The External Auditor responded in the affirmative; stated the
obligation outpaces the funding.
Vice Mayor /Commissioner /Authority Member Gilmore stated the
challenge would be funding the Plan without hitting other City
services too much.
The External Auditor stated that the City contributed $4.4 million
from the General Fund to the Plans.
Special Joint Meeting 5
Alameda City Council, Community
Improvement Commission, and Alameda
Reuse and Redevelopment Authority
December 6, 2005
Councilmember /Commissioner /Authority Member Daysog noted the
obligated amount is based upon the age and expected lifespan of
participants remaining in the Plans.
The External Auditor stated there were only two recommendations in
the Memorandum of Internal Control Structure; the Redevelopment
Agency compliance item is difficult to explain and even more
difficult to understand; Redevelopment Agency reporting was
required by December 31; the finding cannot be retroactively
corrected; the written determination of necessity for low and
moderate housing projects was not done by the deadline.
Councilmember /Commissioner /Authority Member Daysog inquired who
receives the report, to which the External Auditor responded the
State Controller.
Councilmember /Commissioner /Authority Member Matarrese stated there
was a similar finding last year; inquired what was being done to
prevent the problem from reoccurring.
Mayor /Chair Johnson stated that the City Manager could review and
report back to the Council /Commissioners /Authority Members on the
matter.
The External Auditor stated the other recommendation was regarding
the employees reporting directing to the City Council which are
outside the normal reporting realm; suggested that the City's
elected Auditor provide oversight to the City Clerk, City Attorney
and City Manager departments to ensure checks and balances.
Mayor Johnson stated spending issues were raised last year;
significant changes were made under the direction of the Interim
City Manager in the last six months of the fiscal year; stated that
she has confidence in the new City Manager; the new Finance
Director worked very closely with the City Manager on addressing
previous issues; the City Manager and Finance Director should work
with the City Auditor on an oversight proposal; stated having a
system in place was a good idea.
Councilmember /Commissioner /Authority Member deHaan stated the
Council /Commissioners /Authority Members have a responsibility to
ensure that internal finances are controlled.
Councilmember /Commissioner /Authority Member Matarrese stated having
the City Auditor involved would be beneficial; inquired whether
there was a way to increase the City Auditor's role.
Special Joint Meeting
Alameda City Council, Community
Improvement Commission, and Alameda
Reuse and Redevelopment Authority
December 6, 2005
Mayor /Chair Johnson noted the External Auditor does not need to be
involved.
The City Auditor stated that the City was in reasonably good shape
and improvement was being made in controlling costs; the ten -year
study would enlighten the Council on tough issues; the Finance
Director was in the unenviable position of being at the same level
as other department heads; suggested that he meet with the Finance
Director periodically to address issues.
The City Manager stated that she would be happy to work with the
City Auditor; she believes that the Finance Director was
comfortable with identifying issues with other departments;
discussions with the City Auditor could be more routine.
The City Auditor stated that there was no need for a formal policy.
Mayor Johnson stated that the discussion was not out of concern;
there have been considerable changes since the City Manager joined
the City; thanked everyone who worked on the audits; stated that
she looks forward to the ten -year projection.
Councilmember /Commissioner /Authority Member deHaan moved approval
of accepting the submitted reports.
Councilmember /Commissioner /Authority Member Daysog seconded the
motion, which carried by unanimous voice vote - 5.
ADJOURNMENT
There being no further business, Mayor /Chair Johnson adjourned the
Special Joint Meeting at 9:09 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, Community
Improvement Commission, and Alameda
Reuse and Redevelopment Authority
December 6, 2005