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2006-06-20 Joint CC ARRA CIC MinutesMINUTES OF THE SPECIAL JOINT CITY COUNCIL, ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY, AND COMMUNITY IMPROVEMENT COMMISSION MEETING TUESDAY- -JUNE 20, 2006- -7:31 P.M. Chair Johnson convened the Special Joint Meeting at 9:42 p.m. ROLL CALL - Present: Councilmembers / Board Members / Commissioners Daysog, deHaan, Gilmore, Matarrese, and Mayor /Chair Johnson - 5. Absent: None. (06- 336CC/06- 035CIC) Minutes of the Joint City Council, Alameda Reuse and Redevelopment Authority, and Community Improvement Commission Meeting held on June 6, 2006. Approved. Councilmember /Board Member /Commissioner deHaan moved approval of the minutes. Councilmember /Board Member /Commissioner Matarrese seconded the motion, which carried by the following voice vote: Ayes: Councilmembers /Board Members /Commissioners Daysog, deHaan, Gilmore, and Matarrese -4. Abstentions: Mayor /Chair Johnson - 1. AGENDA ITEMS (06- 337CC/06- 036CIC) Discussion of Fiscal Year 2006 -2007 and 2007 -2008 Citywide budget and City Council Resolution No. 13981, ARRA Resolution No. 38 and CIC Resolution No. 06 -144, "Approving Interim Expenditures Prior to Adoption of the Operating Budget for Fiscal Year 2006 - 2007." Adopted. Vice Mayor Gilmore /Board Member /Commissioner moved adoption of the resolutions. Councilmember /Board Member /Commissioner Matarrese seconded the motion, which carried by unanimous voice vote - 5. John Oldham, Management and Confidential Employees Association (MCEA) President, stated MCEA has been without a salary increase for thirty months; negotiations have been going on for over eighteen months with very little movement; the budget has improved by underfunding PERS contributions from 1996 to 2003; Special Joint Meeting Alameda City Council, Alameda Reuse 1 and Redevelopment Authority, and Community Improvement Commission June 20, 2006 the City is offering less than inflation and asking for takeaways; the cost for the average Alameda house has increased by 310; gas has increased 1520; MCEA is looking to stay even with inflation. Beckie McWilliams, MCEA Vice President stated a coalition of all miscellaneous bargaining groups was formed to explore the possibility of enhancing the current PERS retirement; the PERS Coalition requested a meeting with the City in May 2005; the Interim City Manager /Executive Director met with the group to ascertain what the Coalition was interested in achieving; subsequently, the PERS Coalition made several requests to meet with the City; the City has ignored the requests; only five out of thirty -one northern California cities do not offer an enhanced PERS package; employer rates have decreased with the recent implementation of new smoothing methodology by PERS; the Coalition feels the time is appropriate for the City to consider moving forward with an enhanced PERS package as a tool for retention and recruitment; an enhanced PERS package would serve to entice qualified, high caliber City employees. Christopher Buckley, Alameda, stated the Customer Service Improvement Team's main objective is to work with the Planning and Building Department to help promote good customer service in the permit process; the team is concerned that the Planning and Building Department is adequately staffed to ensure proper customer service; the team senses that staff has been increasingly challenged; permit activity has increased 40% and staff has decreased; increased fees should pay for additional staff; the Planning and Building Department has two unfunded vacant positions; the team urges funding the two positions. The City Manager /Executive Director provided a brief presentation on the Fiscal Year 2006 -2007 and 2007 -2008 budget. Mayor /Chair Johnson inquired whether there would be a crossing guard at Chipman School. The City Manager /Executive Director responded all School District requests would be reviewed; the key area is the new Ruby Bridges School. Councilmember /Board Member /Commissioner Matarrese stated there are two deficit situations; one deficit is the streets, Special Joint Meeting Alameda City Council, Alameda Reuse 2 and Redevelopment Authority, and Community Improvement Commission June 20, 2006 sidewalks and general infrastructure; the other deficit is unfunded positions; inquired whether the risk of not funding the positions is acceptable. The City Manager /Executive Director responded evaluations would continue throughout the year. Councilmember /Board Member /Commissioner Matarrese stated he hopes the unfunded positions do not become owed, legacy positions that are approved and funded without justification; he would rather mitigate some of the risks, especially in public safety; risks need to be balanced; he is concerned that the increased revenue is on a bubble which is based on escalation of housing prices; sales tax has decreased; the ten -year forecasting model should review prices coming down. The City Manager /Executive Director stated the matter would be monitored continually. Councilmember /Board Member /Commissioner Matarrese stated that justifying open, unfunded positions should be reviewed before a commitment is made to replenish the reserves. The City Manager /Executive Director stated any new or unfunded position requires the same amount of justification. Councilmember /Board Member /Commissioner Matarrese inquired why the positions are carried. The City Manager /Executive Director responded Council authorized the positions in the past which are currently unfunded or non- existent; Council action is required to eliminate the positions. Mayor /Chair Johnson stated the matter should not be brought back with the goal of either justifying or eliminating unfunded positions; the matter should be a long -term assessment; reviewing whether to use reserves to fund the positions is fine. Councilmember /Board Member /Commissioner Matarrese stated current revenue is programmed to replenish the reserves; he is not advocating taking reserve money to pay for salaries unless there is a disaster. Mayor /Chair Johnson stated the matter is a long -term, strategic Special Joint Meeting Alameda City Council, Alameda Reuse 3 and Redevelopment Authority, and Community Improvement Commission June 20, 2006 issue that needs to be reviewed. Councilmember /Board Member /Commissioner Daysog stated he was glad that unfunded positions are not being eliminated; the Police Department had a mass retirement in 2001 or 2002; Police positions decreased from 111 to 104; a decision was made not to fill the positions; the City continues to grow; conversation needs to steer towards funding the unfunded positions; funding sources need to be recognized; he does not want to take from "operational peter" to pay for "infrastructure paul." Mayor /Chair Johnson stated other departments have a number of unfunded positions. Councilmember /Board Member /Commissioner deHaan stated there was concern in getting the pavement management program up to speed and eliminating the backlog; inquired whether other funds might be available in addition to Proposition 42. The City Manager /Executive Director responded the Construction Improvement Tax and Urban Runoff Fund are available. Councilmember /Board Member /Commissioner Matarrese stated the risk of not funding positions versus the risk of keeping the reserves at the current level is important to review. Mayor /Chair Johnson stated other City needs should be reviewed also. Councilmember /Board Member /Commissioner Matarrese stated the needs should be reviewed on a risk basis. Councilmember /Board Member /Commissioner deHaan inquired when the sidewalk and tree management program would be presented and whether the budget would be impacted. The City Manager /Executive Director responded the future budget would be impacted; stated a lot of money was appropriated for sidewalk improvements last February; she cannot predict the exact date when the program would be presented. Councilmember /Board Member /Commissioner deHaan stated stabilizing the Pavement Management Program and identifying a constant funding stream would provide a balance; inquired Special Joint Meeting Alameda City Council, Alameda Reuse 4 and Redevelopment Authority, and Community Improvement Commission June 20, 2006 whether the $1.6 million Vehicle Replacement Program is a substantial increase from the past. The Finance Director responded the vehicle replacement amount has been $150,000 to $200,000 in the past, except for the years when an ambulance was replaced. Councilmember /Board Member /Commissioner deHaan stated vehicle replacement was neglected because of budget constraints; inquired whether catch -up could be done during the next fiscal year. The Finance Director responded an equipment replacement reserve is part of the General Fund budget; vehicles that should have been replaced were set aside in favor of keeping public safety vehicles current. Mayor /Chair Johnson inquired whether vehicles would be replaced with alternative fuel vehicles, to which the Finance Director responded in the affirmative. Councilmember /Board Member /Commissioner deHaan stated Alameda Power and Telecom is investigating natural gas for three vehicles. The Public Works Director stated Council authorized the City Manager to submit an application for four electric vehicles which would replace three existing vehicles on the vehicle replacement list; a recommendation was made to have an all electric vehicle for the Information Technology Department also. Mayor /Chair Johnson stated vehicles should be replaced with vehicles that are appropriate for the use. The City Manager /Executive Director stated having a Managed Vehicle Replacement Program is advantageous. Mayor /Chair Johnson inquired whether the 2006 -2007 Capital Improvement Program included anything for parks. The City Manager /Executive Director responded three parks were budgeted in 2005 -2006; stated the parks will be improved in the current fiscal year; the Turf Management Program will help determine where funds will be applied. Special Joint Meeting Alameda City Council, Alameda Reuse 5 and Redevelopment Authority, and Community Improvement Commission June 20, 2006 Mayor /Chair Johnson inquired whether enough money is budgeted for maintenance; stated maintenance needs to be done and cannot wait for the Turf Management Program. The Acting Recreation and Parks Director responded he is confident the funding levels will be adequate. Councilmember /Board Member /Commissioner Daysog stated he is happy to see the planned Webster Street pedestrian signals; Public Works projects are distributed well throughout the City. Vice Mayor /Board Member /Commissioner Gilmore stated she appreciates the response regarding how the redevelopment and tax increment process works; citizens need to understand that some funds come with restrictions on how the funds are to be used. Mayor /Chair Johnson inquired whether the redevelopment process is posted to the website, to which the City Manager /Executive Director responded in the affirmative. Mayor /Chair Johnson stated that the West Alameda Business Association (WABA) is receiving a 33% grant increase; inquired whether an increase is feasible for the Park Street Business Association (PSBR). The Development Services Director responded the budget recommendation was to create parody between the two business associations; stated WABA was raised to the same level that PSBR was funded last year; PSBA's grant was not increased; there is some room for an increase to PSBR. Mayor /Chair Johnson inquired what increase could be given to PSBR, to which the Development Services Director responded 100 to 150. Mayor /Chair Johnson stated WABA's grant increase should be brought up to 33% because of the streetscaping plans; directed PSBA's grant be increased by 100, if possible. Councilmember /Board Member /Commissioner deHaan inquired whether the Greater Alameda Business Association (GABA) requested funding, to which the Development Services Director responded not in the last few years; GABA received minor grants in the Special Joint Meeting Alameda City Council, Alameda Reuse 6 and Redevelopment Authority, and Community Improvement Commission June 20, 2006 past. Councilmember /Board Member /Commissioner deHaan inquired whether GABA's needs should be reviewed. The Development Services Director responded the City has talked with GABA; stated the City assisted GABA by paying fees for a bike race; GABA is aware that the City will help if needed. Councilmember /Board Member /Commissioner deHaan inquired whether WABA and PSBR have different funding streams. The Development Services Director responded she was not aware of any; stated both associations have the Business Improvement Tax and fundraisers. Councilmember /Board Member /Commissioner deHaan stated money should be set aside for GABA. Mayor /Chair Johnson stated money should not be set aside if not requested. The Development Services Director stated the practice is that no reasonable request would be denied. Vice Mayor /Board Member /Commissioner Gilmore stated the golf revenue is down for Fiscal Year 2005 -2006 and possibly is due to the weather; the projected budget for 2007 is up 380; inquired whether the increase is based on a projection for better weather or something else. The Finance Director responded the 2007 revenue projection is based on an average rain year; stated the last two years had excessive rain; the increase does not include any fee increases. Vice Mayor /Board Member /Commissioner Gilmore inquired whether the Golf Commission is discussing fee increases, to which the Finance Director responded in the affirmative. The City Manager /Executive Director stated any proposed increase would come to Council. Mayor /Chair Johnson inquired what happens if there are a lot of rain days next year. Special Joint Meeting Alameda City Council, Alameda Reuse 7 and Redevelopment Authority, and Community Improvement Commission June 20, 2006 The Finance Director responded the forecasted revenue would not be met; stated staff would come back to Council mid -year and recommend a reduction in the forecasted revenues. Vice Mayor /Board Member /Commissioner Gilmore inquired whether a large portion of the restricted reserves is for the new Clubhouse, to which the Finance Director responded the net assets are the physical assets. Councilmember /Board Member /Commissioner deHaan inquired what was the net unrestricted balance, to which the Finance Director responded the net unrestricted balance is cash. Councilmember /Board Member /Commissioner deHaan stated there is a downward trend. The Finance Director stated the downward trend is one of the motivating reasons for fee discussion. Councilmember /Board Member /Commissioner deHaan stated the golf climate has changed. Mayor /Chair Johnson stated golf is declining nationwide; the City cannot just raise fees to address the issue; people will go to other golf courses if fees are raised. Councilmember /Board Member /Commissioner deHaan stated a decline in playing golf on dry days could indicate that the golf industry is changing. The Finance Director stated the Golf General Manager is reviewing a lot of alternatives to generate revenues. Councilmember /Board Member /Commissioner Daysog inquired whether part of the revenue increase is the Return on Investment (ROI) change. The Finance Director responded the ROI is revenue in the General Fund and increases the Golf Department's expenditures. Councilmember /Board Member /Commissioner deHaan stated 150 of the reserves have dropped in the last five years; negative flows could occur two years out. Special Joint Meeting Alameda City Council, Alameda Reuse 8 and Redevelopment Authority, and Community Improvement Commission June 20, 2006 Councilmember /Board Member /Commissioner Matarrese stated part of the reason for building a new Clubhouse is to change the look of the Golf Course and increase revenues. Mayor /Chair Johnson stated the Joint City Council and Golf Commission Meeting is scheduled soon. The City Manager /Executive Director stated the Golf Commission is reviewing a business plan and issues beyond rainy days. Mayor /Chair Johnson stated the Golf Commission should not be looking at the issue as a short -term rain problem; the national trend has been declining golf for years; inquired whether the restricted reserves would be used for the Clubhouse. The City Manager /Executive Director responded the restricted reserves identify the actual capital assets. Mayor /Chair Johnson stated the business plan should be adjusted to reflect the current revenue. Councilmember /Board Member /Commissioner deHaan stated the ROI was decreased currently but was increased in the past to address the City's shortfall. The Finance Director stated the Council adopted an ordinance that established the Payment in Lieu of Taxes (PILOT) and ROI in Fiscal Year 2004 -2005; the ROI applies to the Alameda Power and Telecom and Golf funds; the PILOT applies to the sewer fund, Alameda Power and Telecom and Golf fund; the PILOT and ROI produced additional revenue which was helpful in 2005 and 2006; the recommendation was to reduce the ROI by 500 on the Golf fund and Alameda Power and Telecom because of the increasing General Fund revenue. Councilmember /Board Member /Commissioner deHaan inquired whether lowering the ROI further is anticipated, to which the Finance Director responded possibly. Mayor /Chair Johnson stated the ROI should not be considered a permanent source of revenue. Vice Mayor /Board Member /Commissioner Gilmore inquired whether Special Joint Meeting Alameda City Council, Alameda Reuse 9 and Redevelopment Authority, and Community Improvement Commission June 20, 2006 the ROI reduction is the reason that the franchise and in -lieu fees are down 110, to which the Finance Director responded partially. Councilmember /Board Member /Commissioner Daysog stated finding money under different shells is hard work; choices need to be made; thought should be given to applying future redevelopment revenues to positions and programs; a plan is needed for dealing with the public safety shortfall. Councilmember /Board Member /Commissioner Matarrese stated the City is taking a step in undoing some of the tangle with State takeaways; he is concerned with the direction of sales tax revenues and living on the bubble of the property and transfer tax; the City needs to be vigilant and careful; staffing, benefits, and deferred maintenance need to be reviewed in the ten -year forecast; evaluation should be done at mid -term; focus should be on the need first; applying incoming revenues to the reserve should be discretionary; damaged infrastructure that provides the highest risk to individuals should be reviewed; sidewalk maintenance should be reviewed closely because of trips and falls. Mayor /Chair Johnson thanked the City Manager /Executive Director and staff for an informative and clear budget; stated she appreciates that the budget was put together strategically; goals and long -term issues were addressed; she hopes that the residents learn that the budget is a matter of balancing; employees' work is appreciated; employee's issues will be considered. Councilmember /Board Member /Commissioner deHaan stated the budget shows a positive movement; the City is not completely out of the woods; the City Manager /Executive Director made some monumental steps to fill required positions and to address needs that have not been met in the last four years. Vice Mayor /Board Member /Commissioner Gilmore stated the last two -year budget addressed cutting programs and positions which would minimally impact services to the residents; the City is now looking at adding services and positions and has come a long way; thanked everyone for working very hard on the budget. Councilmember /Board Member /Commissioner Daysog stated funding Special Joint Meeting Alameda City Council, Alameda Reuse 10 and Redevelopment Authority, and Community Improvement Commission June 20, 2006 should be applied to Lincoln Avenue between Eighth Street and Grand Avenue if the purple line on the Public Works map is for streets; the streets are covered with tar and are not attractive. Mayor /Chair Johnson stated staff should make assessments on the greatest need, not cosmetics. Councilmember /Board Member /Commissioner Daysog stated streets are paved along Grand Avenue from Lincoln Avenue to Park Street; streets are unpaved west of Grand Avenue. Vice Mayor /Board Member /Commissioner Gilmore stated Public Works identified the streets that need the most attention; she would prefer to drive down tarred streets rather than streets with potholes. Mayor /Chair Johnson stated Interim City Manager Bill Norton started the crack sealing program. Councilmember /Board Member /Commissioner Daysog stated money has been dedicated to repair unused streets. The Public Works Director stated the Pavement Management Program prioritizes the needs based on the street condition and not traffic; a resurfacing Contract has already been authorized. Councilmember /Board Member /Commissioner deHaan inquired whether crack sealing is still done, to which the Public Works Director responded slurry sealing is done. Mayor /Chair Johnson stated crack sealing should continue in order to prevent further damage until slurry sealing can be done. Councilmember /Board Member /Commissioner Daysog stated he is not opposed to crack sealing. The Public Works Director stated some streets are crack and slurry sealed to extend the life longer; sealing is the most cost - effective way to spend the money. Councilmember /Board Member /Commissioner deHaan stated the City has crack sealing equipment. Special Joint Meeting Alameda City Council, Alameda Reuse I 1 and Redevelopment Authority, and Community Improvement Commission June 20, 2006 The Public Works Director stated that the City borrowed the equipment; work was performed by City staff. Councilmember /Board Member /Commissioner deHaan stated he does not want to see crack sealing disappear. Mayor /Chair Johnson stated crack sealing needs to be funded. Councilmember /Board Member /Commissioner deHaan stated that he attended Alameda Power and Telecom's budget meeting; direction has been taken to lower the overall operating cost; management would like to reduce the operating cost even lower. Mayor /Chair Johnson inquired whether or not other maintenance issues would be addressed. The City Manager /Executive Director responded the focus is to have a very comprehensive maintenance approach; stated staff is dedicated to applying funds to infrastructure. Councilmember /Board Member /Commissioner deHaan stated he eagerly looks forward to the sidewalk and tree program. Councilmember /Board Member /Commissioner Matarrese stated the tree portion is critical. The City Manager /Executive Director stated the budget would come back to Council for approval on July 5. (06- 338CC/06- 037CIC) Discussion of City Attorney /General Counsel Legal Services and staffing options. The City Attorney /Legal Counsel provided a brief presentation. Mayor /Chair Johnson inquired whether the analyst position for the Americans with Disabilities (ADA) update would have an end. The City Attorney /Legal Counsel responded the initial part of the project has an end; stated an on -going effort would continue to monitor meeting the ADA Transition Plan's goals. Mayor /Chair Johnson inquired why contracted out. Special Joint Meeting Alameda City Council, Alameda Reuse 12 and Redevelopment Authority, and Community Improvement Commission June 20, 2006 the work could not be The City Attorney /Legal Counsel responded a consultant would be hired to prepare an update to the existing ADA Transition Plan; City staff would need to coordinate efforts. Mayor /Chair Johnson stated she is not sure whether a full time person is needed to work with an outside consultant. Councilmember /Commissioner Matarrese inquired whether the position would do other risk assessments that might preclude the City from spending money on outside counsel when sued. The City Attorney /Legal Counsel responded in the affirmative; stated the past Administrative Management Analyst position assists the Risk Manager, reviews and investigated all claims, and makes recommendations. Mayor /Chair Johnson inquired how many employees are in Risk Management, to which the City Attorney /Legal Counsel responded two full -time positions: Risk Manager and support staff. The City Manager /Executive Director stated updating the ADA Transition Plan is very staff intensive. Mayor /Chair Johnson inquired whether the job responsibility would include claim review. The City Attorney /Legal Counsel responded in the affirmative; stated some safety services could be reinstated. Mayor /Chair Johnson inquired what type of safety services would be reinstated. The City Attorney /Legal Counsel responded a safety committee would review workplace safety with the intent to reduce workplace injuries. The City Manager /Executive Director stated the person would work in a pro- active mode rather than reacting to claims. Mayor /Chair Johnson inquired whether another department could handle the work. The City Attorney /Legal Counsel responded in the affirmative; Special Joint Meeting Alameda City Council, Alameda Reuse 13 and Redevelopment Authority, and Community Improvement Commission June 20, 2006 stated the Administrative Analyst position would provide a lot of bang for the buck; the person would provide the ADA Transition Plan oversight, risk management services, and safety services. Councilmember /Board Member /Commissioner Matarrese stated there is an advantage to having the position in the City Attorney's office because of internal audit functions; Option 3 provides advantages. Mayor /Chair Johnson suggested filling the Risk Management Analyst position and holding off on hiring another attorney to see how one City Attorney and two staff attorneys work; stated the City needs to provide legal services in the most efficient way possible. Vice Mayor /Board Member /Commissioner Gilmore stated the City Attorney's office has been working with three attorneys over the last several months and the situation has been an issue. Councilmember /Board Member /Commissioner deHaan inquired whether teaching safety should be handled through Human Resources; further inquired who is taking care of workers compensation. The City Attorney /Legal Counsel responded Risk Management handles workers compensation. Councilmember /Board Member /Commissioner deHaan stated the City Attorney /Legal Counsel's latitude is very limited. The City Attorney /Legal Counsel stated she hired an attorney to start July 5. Councilmember /Board Member /Commissioner deHaan stated looking into hiring an additional attorney might be appropriate. Vice Mayor /Board Member /Commissioner Gilmore moved approval of hiring another staff attorney. Councilmember /Board Member /Commissioner Matarrese clarified that the motion is to have the staffing level of the City Attorney and three staff attorneys; the Risk Management Analyst position would be held in abeyance. Special Joint Meeting Alameda City Council, Alameda Reuse 14 and Redevelopment Authority, and Community Improvement Commission June 20, 2006 Councilmember Matarrese seconded the motion, which carried by unanimous voice vote - 5. Vice Mayor /Board Member /Commissioner inquired whether the Risk Management Analyst position would be brought back to Council with more detail, to which the City Manager /Executive Director responded in the affirmative. Mayor /Chair Johnson inquired how many employees are in the City Attorney's office, to which the City Attorney /Legal Counsel responded seven. Mayor /Chair Johnson inquired whether all seven employees are full time, to which the City Attorney /Legal Counsel responded in the affirmative. Mayor /Chair Johnson inquired whether the City Attorney's office had any part -time staff, to which the City Attorney /Legal Counsel responded a law clerk. Mayor /Chair Johnson inquired whether the seven employees include the attorney starting in July. The City Attorney /Legal Counsel responded the new attorney would bring staffing up to eight; tonight's authorization will bring the City Attorney and Risk Management staffing level to nine. Councilmember /Board Member /Commissioner Matarrese requested that an organizational chart be provided when the matter returns to Council. ADJOURNMENT There being no further business, Mayor /Chair Johnson adjourned the Special Joint Meeting at 11:30 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, Alameda Reuse 15 and Redevelopment Authority, and Community Improvement Commission June 20, 2006