2010-05-18 Regular CC MinutesMINUTES OF THE REGULAR CITY COUNCIL MEETING
TUESDAY- -MAY 18.2010- -7:00 P.M.
Mayor Johnson convened the meeting at 7:33 p.m.
ROLL CALL - Present: Councilmembers deHaan, Gilmore, Matarrese, Tam
and Mayor Johnson — 5.
Absent: None.
AGENDA CHANGES
(10 -221) Mayor Johnson announced the Special Council meeting schedule for 7:02 p.m.
would be held at 8:45 p.m.
PROCLAMATIONS. SPECIAL ORDERS OF THE DAY & ANNOUNCEMENTS
(10-222) Proclamation Declaring May 2010 as Older Americans Month.
Mayor Johnson read and presented the proclamation to Nancy Gormley.
Ms. Gormley thanked Council for the proclamation.
Mayor Johnson requested a brief description of how people can sign up for the senior
shuttle.
Ms. Gormley stated registration needs to be done either on line or at the Mastick Senior
Center.
Mayor Johnson inquired what is the age requirement.
Ms. Gormley responded sixty -two; stated seniors are able to ride the shuttle for free; the
shuttle can accommodate two wheelchairs; two different schedules run on Tuesday,
Wednesday, and Thursday.
(10-223) Proclamation declaring May 22 as Harvey Milk Day.
Mayor Johnson read and presented the proclamation to Brian Harris and Ryan Kelley -
Cahill from Alameda Community Learning Center (ACLC).
Mr. Harris and Mr. Kelley - Cahill thanked Council for the proclamation.
(10-224) One -Year Follow Up on Fiscal Sustainability Committee Report.
The City Treasurer and City Auditor gave a Power Point presentation.
In response to Mayor Johnson's inquiry, the City Treasurer stated some local
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governments could have a 40% increase for local safety; new rates will reflect
investment losses and actuarial changes that PERS is making.
The City Treasurer continued the presentation.
Mayor Johnson inquired whether deferred maintenance includes facilities, to which the
City Treasurer responded in the affirmative.
Vice Mayor deHaan thanked the City Treasurer and City Auditor for the presentation;
stated the gain in reserves over the last two years has not been obligated.
The City Treasurer stated reserves have gotten better, but the City is still far behind; the
problem is that maintenance and retiree medical costs are not discretionary and do not
go away; costs are growing exponentially.
Vice Mayor deHaan stated Oakland's roads are deteriorating rapidly; the City has to
ensure that steps are taken to continue on the right track; the City's property values
have not dropped; inquired what was the percentage of growth in property taxes last
year, to which the Interim City Manager responded 0.5 %.
Vice Mayor deHaan inquired what was the growth in good years, to which the Interim
City Manager responded 8.5 %.
The City Treasurer stated Alameda is not the first city to deal with the issue; other cities
have found solutions; the City can learn from San Francisco and San Jose.
Mayor Johnson inquired whether anyone from PERS is scheduled to address the
matter.
The Interim City Manager responded John Bartel is scheduled to be at the June 1St
Council Meeting to discuss the PERS' actuarial; stated that she is trying to get a PERS
representative to attend the June 15th Council Meeting to confirm the growth before
budget adoption.
Mayor Johnson stated any news from PERS seems to be bad and gets worse as time
goes by; stated PERS has not written the multi billion dollar Mountain House investment
loss into its portfolio; money for the Mountain House investment will never be regained.
The Interim City Manager stated the assumed rate of return for PERS is 7.34 %;
however, PERS is talking about reducing the rate of return to 6 %.
The City Treasurer stated the defined benefit plan, not PERS, is the problem; when
anything goes wrong it is the City's problem; PERS started a smoothing process in
which payments were spread out over thirty years; inquired whether the City has
received anything formal [from PERS].
The Interim City Manager responded in the negative; stated Mr. Bartel would be
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discussing the issue at the next Council Meeting.
The City Treasurer stated the Fiscal Sustainable Committee Report assumes that the
City will continue with current policies.
Councilmember Gilmore stated everyone realizes there is a need for change; changes
will not be in one area but more broad based; a government's function is to provide
services to citizens; community discussions need to address service level changes,
what is valued, and what cuts people are willing to have made; Councilmembers have
to lead the way.
The City Treasurer stated government's job is to provide services at a level
commensurate with revenue received, not commensurate with demands; Next 10 has a
program called the California Budget Challenge; the program is an interactive exercise
which allows an individual to try and balance California's budget; that he is hoping to
bring a similar program to Alameda.
Councilmember Tam stated revenue and expenses are linked; seventy -five percent of
the budget goes for personnel; personnel is needed for deferred maintenance; last time,
the Fiscal Sustainability Committee discussed what type of development would be
needed to generate revenue for the types of services the community wants; the City has
sought Measure B funding for pothole repairs, the Paratransit program, street
resurfacing, and signage, and funding for Fire safety, but said funding not factor into the
burden; the future burden is all on the City; inquired whether a future presentation would
address how to grow the pie.
The City Treasurer responded the Fiscal Sustainability Committee did not take grants
into consideration; stated that he does not know whether grants will continue at the
State level; the City should go after grants whenever possible.
Councilmember Tam stated addressing the need for more retail to generate revenue is
a difficult discussion.
Councilmember Gilmore stated the need for retail has to be balanced against the traffic
it causes.
The City Treasurer stated input needs to be solicited.
Councilmember Matarrese stated that he appreciates the presentation; he has
requested to have the budget easily available on the website; urged the public to attend
budget sessions; stated bargaining units have foregone pay increases; the
management team has been contracted; a budget session will be held on June 19th;
the reserve level still needs to be discussed.
The City Treasurer stated the rule of thumb is to have three to six months of cash; his
approximation is that the City has a twenty -two day reserve.
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Councilmember Matarrese stated the City is in the "pay -as- you -go" mode and cannot
address unfunded liabilities such as deferred maintenance.
The City Treasurer stated the City is not starting at zero [in the budget] but is starting at
negative $8 million.
Mayor Johnson inquired whether the upcoming budget would be dealing with the
negative $8 miliion.
The Interim City Manager responded the City is still trying to recover some negative
cash; stated the City can only afford to put $100,000 into the deferred maintenance
budget this year; staff has not started to touch the deferred maintenance negative; staff
is trying to recover the negative cash; there has been a 10% staff reduction; focus
needs to be on risk management and workers compensation; joint power authorities
expect the City to have a funded reserve; joint power authorities have not required cities
to show an earmarked reserve if there is a healthy cash reserves in the General Fund;
now, cities are using cash reserves; some cash needs to be put away for mandated
reserves.
In response to Vice Mayor deHaan's inquiry, the Interim City Manager stated the
California Chief Legislative Analyst indicated that growth would be difficult until 2014;
the new forecast is that a household will not have discretionary income until 2018.
Vice Mayor deHaan stated the City is not able to take care of what is necessary and is
not getting a higher rate of return; inquired why the Other Post Employment Benefit
(OPED) deficit is higher, to which the City Treasurer responded everything is based on
assumptions.
The Interim City Manager stated medical insurance has dropped by several percentage
points.
Vice Mayor deHaan stated there has been some stabilization.
The City Treasurer stated medical costs would not remain the same.
CONSENT CALENDAR
Mayor Johnson announced that the Resolution Authorizing the City of Alameda Fire
Department to Access Federal Level Summary Criminal History [paragraph no. 10 -238]
was withdrawn from the agenda.
Councilmember Tam moved approval of the Consent Calendar.
Councilmember Matarrese seconded the motion, which carried by unanimous voice
vote — 5. [Items so enacted or adopted are indicated by an asterisk preceding the
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paragraph number.]
(*10-225) Minutes of the Special and Regular City Council Meetings held on May 4,
2010. Approved.
(*10-226) Ratified bills in the amount of $6,907,995.69.
(*10-227) Recommendation to Accept the Quarterly Treasury Report. Accepted.
(*10-228) Recommendation to Approve Letter of Support of 100 Best Cities for Young
People Application. Accepted.
(*10-229) Recommendation to Set a Public Hearing to Consider Collection of
Delinquent Administrative Citation Fees Via the Property Tax Bills for June 1, 2010.
Accepted.
(*10-230) Recommendation to Set a Public Hearing for Delinquent Integrated Waste
Management Charges for June 15, 2010. Accepted.
(*10-231) Recommendation to Accept the Work of NorCal Pipeline Inspection for
Citywide Sewer Mains and Laterals Video Inspection, Phase 2, No. P.W. 07- 08 -19.
Accepted.
(*10-232) Resolution No. 14440, "Declaring the City's Intention to Revise the Sewer
Service Charge and Establishing Procedures for Accepting Protests Pursuant to Article
XIIID, Section 6(a) of the California Constitution Regarding Property - Related Fees and
Charges." Adopted.
(*10-233) Resolution No. 14441, "Approving a Fifth Amendment to the Agreement with
the California State Coastal Conservancy to Implement Spartina Eradication and
Mitigation Measures and Authorize the Interim City Manager to Execute All Necessary
and Required Documents." Adopted.
(*10-234) Resolution No. 14442, "Authorizing the Interim City Manager to Submit a
Request to the Metropolitan Transportation Commission for the Allocation of $121,000
in Fiscal Year 2010 -2011 Transportation Development Act, Article 3 Funding, for
Upgrades to the Bicycle Facility Signage and Sidewalk Improvements, and to Execute
All Necessary Documents." Adopted.
(*10-235) Resolution No. 14443, "Authorizing the Interim City Manager to Submit an
Application for Measure B Paratransit Funding for fiscal year 2010 -2011, and to Execute
All Necessary Documents." Adopted.
(*10-236) Resolution No. 14444, "Ratifying the Public Utility Board's Approval of the
Termination of the Natural Gas Procurement Program Third Phase Agreement and
Authorizing the General Manager of Alameda Municipal Power to Execute the
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May 18, 2010
Termination of the Agreement." Adopted.
(*10-237) Resolution No. 14445, "Resolution of Intention to Levy an Annual Assessment
on the Alameda Business Improvement Area of the City of Alameda for Fiscal Year
2010 -2011 and Set a Public Hearing for June 1, 2010." Adopted.
(10-238) Resolution Authorizing the City of Alameda Fire Department to Access Federal
Level Summary Criminal History for Emergency Medical Technicians Certification. Not
adopted.
(*10-239) Ordinance No. 3017, "Adding Subsection 30 -5.15 to the Alameda Municipal
Code to Prohibit the Operation of Medical Marijuana Dispensaries in the City of
Alameda. Finally passed.
CITY MANAGER COMMUNICATIONS
(10-240) Correspondence from Alameda Hospital Regarding City - Hospital
Subcommittee
The Interim City Manager gave a brief presentation.
Councilmember Matarrese stated the subcommittee idea was not favorably received; a
joint presentation would be beneficial for the public; that he would be very interested in
hearing details of plans to keep the Hospital open.
The Interim City Manager stated the Hospital is working on a business plan.
Councilmember Tam stated that she supports the idea of having a presentation on a
regular basis; when she was on the Hospital Board, meetings were not well attended
and not televised.
(10-241) Request that AC Transit Not Alter Line 51A Prior to Conducting Appropriate
Public Hearings
The Supervising Civil Engineer gave a brief presentation.
Councilmember Gilmore stated that she assumes AC Transit staff wants to combine
lines due to budget constraints.
The Supervising Civil Engineer stated the matter is not related to budget issues; buses
had to run on Keith Avenue in Oakland near the Rockridge BART station when the line
split; residents were concerned with having busses run in front of their homes; residents
complained to [Oakland] Councilmembers and AC Transit staff; a decision was made at
staff level without going through a public process; a Board decision should be made.
Speakers: John Knox White, Alameda, submitted letter; Michael Krueger,
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Transportation Commission.
Councilmember Tam inquired how many members are on the Transportation
Commission.
The Supervising Civil Engineer responded currently, four members; stated two
members will term out in June; only two members would remain after June 30tH
Councilmember Tam stated the matter should be vetted through the Transportation
Commission.
Mayor Johnson disagreed; stated the matter is urgent.
Councilmember Tam stated that she understands that an endorsement letter should be
sent; the letter [submitted by Mr. Knox White] requests a public hearing urging AC
Transit to reconsider the matter; that she is suggesting the best process for Alameda is
to have the matter vetted before the Transportation Commission; a fully seated
Commission would be needed.
Councilmember Matarrese stated that he concurs with Councilmember Tam regarding
the need to fill Transportation Commission vacancies; AC Transit staff intends to make
cuts in June; a staff level decision was made because of low mileage for the length of
the line; he thinks the letter should be sent to the AC Transit Director as well as the
Board Members.
The Supervising Civil Engineer stated the Transportation Commission endorsed the
letter.
Mayor Johnson inquired whether the letter addresses the AC Transit process that
allowed the situation to occur, to which Councilmember Tam responded in the
affirmative.
Councilmember Tam moved approval of sending the letter to AC Transit.
Councilmember Matarrese seconded the motion, which carried by unanimous voice
vote — 5.
Vice Mayor deHaan stated staff should modify the letter for clarity.
Mayor Johnson called a recess at 8:46 p.m. and reconvened the meeting at 11:52 p.m.
(10 -242) Councilmember Tam moved approval of continuing the meeting past 12:00
a.m. midnight.
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Councilmember Matarrese seconded the motion, which carried by unanimous voice
vote -5.
Mayor Johnson called a recess at 11:53 p.m. and reconvened the meeting at 12:01 a.m.
(10-243) Urban Farm and Garden Plan
The Interim City Manager gave a brief presentation.
Mayor Johnson and Councilmember Matarrese stated the Plan is good.
Councilmember Gilmore inquired whether the Plan would include the school community
gardens, to which the Interim City Manager responded in the affirmative.
Mayor Johnson stated the soil in Alameda is better than other areas of the region.
Councilmember Tam stated Bay Farm Island used to be a farm; overlaying existing
parks is a great idea; that she would caution using Alameda Point because there is so
much clean up.
Mayor Johnson stated raised gardens are being used.
The Interim City Manager stated the Plan would be easier for natural flora and fauna.
Vice Mayor deHaan stated Alameda had many farms; the triangle area near
Washington Park has been discussed [as a possible site].
Mayor Johnson stated the area is called Portola Triangle.
REGULAR AGENDA ITEMS
(10-244) Recommendation to Accept the Third Quarter Financial Report.
The Interim City Manager gave a brief presentation.
Councilmember Matarrese inquired about the State Board of Equalization liability.
The Interim City Manager stated the City would exhaust the administrative appeal
process; staff is having discussions with Livermore; a lot of cities are trying to resolve
issues.
Councilmember Matarrese stated money needs to be set aside.
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The Interim City Manager stated that she is not as negative about losing the full $1.1
million as she was eighteen months ago; continued the presentation.
In response to Vice Mayor deHaan's inquiry, the Interim City Manager stated in the last
two and a half years, the total cash has gone from $223 million to $180 million.
Councilmember Tam stated the 3rd Quarter Treasury Report ending March 31St shows a
cash asset of $129,866,000; the Interim City Manager stated that the City has less than
90 -days working capital; inquired how much is spent per month.
The Interim City Manager responded approximately $6 million per month; $20 million
would be needed for a 90 -day working capital.
Councilmember Tam requested an explanation of the $129 million.
The Interim City Manager stated the City had $129 million available at the end of March;
Alameda County receives redevelopment property taxes in May; the second installment
[of property taxes] is received in April; cash will go up this quarter; the City is quarters
behind in receiving gas tax receipts; Measure B is down 18 %; continued the
presentation.
Vice Mayor deHaan stated the City needs to be self- sufficient.
The Interim City Manager stated being cash rich in a depression is important.
Councilmember Gilmore stated being cash rich is the fiscal equivalent of needing a
certain amount on hand for earthquake preparedness.
The Interim City Manager stated having cash puts the City in an excellent position to
hedge off delays in receipts of checks; continued the presentation.
Councilmember Matarrese moved approval of the staff recommendation.
Councilmember Tam seconded the motion, which carried by unanimous voice vote — 5.
ORAL COMMUNICATIONS, NON - AGENDA
None.
COUNCIL REFERRALS
None.
COUNCIL COMMUNICATIONS
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(10 -245) Vice Mayor deHaan stated the trees at the Golf Course are coming back;
Alameda and Monarch Bay in San Leandro use recycled water; Metropolitan Links uses
well water; East Bay Municipal Utility District (EBMUD) does not check the salt content
[of recycled water]; the cost for recycled water is 70% to 80% of the amount for potable
water.
(10-246) Consideration of Mayor's Nominations for Appointment to the Commission on
Disability Issues and Youth Advisory Commission.
Mayor Johnson nominated Kelly Harp for appointment to the Commission on Disability
Issues and Jeanette Mei for appointment to the Youth Advisory Committee.
ADJOURNMENT
There being no further business, Mayor Johnson adjourned the meeting at 12:31 a.m.
Respectfully submitted,
Lara Weisiger
City Clerk
The agenda for this meeting was posted in accordance with the Brown Act.
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