2011-02-01 Joint CC ARRA CIC HABOC MinutesMINUTES OF THE SPECIAL JOINT CITY COUNCIL,
ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY (ARRA),
COMMUNITY IMPROVEMENT COMMISSION (CIC), AND HOUSING
AUTHORITY BOARD OF COMMISSIONERS (HABOC) MEETING
TUESDAY -- FEBRUARY 1, 2011 - -6:59 P.M.
Mayor /Chair Gilmore convened the meeting at 7:47 p.m. Commissioner Allen led the
Pledge of Allegiance.
ROLL CALL - Present: Commissioner Allen, Councilmembers Board
Members /Commissioners Bonta, deHaan, Tam and
Mayor /Chair Gilmore — 5.
Absent: Councilmember /Board Member /Commissioner —
Johnson - 1.
CONSENT CALENDAR
Mayor /Chair Gilmore announced that the Fiscal Year 2009 -2010 Audited Financial
Statements [paragraph no. 11 -046 CC /11 -009 ARRA /11 -006 CIC] was removed from
the Consent Calendar for discussion.
Councilmember /Board Member /Commissioner deHaan moved approval of the
remainder of the Consent Calendar.
Councilmember /Board Member /Commissioner Tam seconded the motion, which carried
by unanimous voice vote — 5. [Note: Mayor /Chair Gilmore abstained from voting on the
Minutes.] [Items so enacted or adopted are indicated by an asterisk preceding the
paragraph number.]
(`11 -044 CC /11 -004 CIC /HABOC) Minutes of the Special Joint City Council, CIC and
Housing Authority Board of Commissioners Meeting Held on January 18, 2011.
Approved.
Mayor /Chair Gilmore abstained from voting on the Minutes.
(`11 -045 CC /11 -008 ARRA /11 -005 CIC) Recommendation to Accept the Quarterly
Financial Report through September 30, 2010. Accepted.
(11 -046 CC /11 -009 ARRA /11 -006 CIC) Recommendation to Accept the Fiscal Year
2009 -2010 Audited Financial Statements and Compliance Reports. Accepted.
The Controller gave a brief presentation.
Special Joint Meeting
Alameda City Council, Alameda Reuse
and Redevelopment Authority, Community
Improvement Commission, and Housing
Authority Board of Commissioners
February 1, 2011
Speaker: Kevin Kearney, City Auditor.
Councilmember /Board Member /Commissioner Tam inquired how the City is paying
down the Other Post Employment Benefit (OPEB) liability.
The Controller responded the City is taking the "pay as you go" approach; stated Fiscal
Year 2009 -2010 payments totaled approximately $2 million.
Councilmember /Board Member /Commissioner Tam stated the City has a significant
[General Fund] fund balance; inquired whether the fund balance could be used to pay
the OPEB liability.
The Controller responded the General Fund can be used for anything; stated the
unrestricted reserve is approximately $15 million which is approximately 20% of the
budget; Council might want to consider beefing up the set aside reserves in the Internal
Service Funds; the funds could be used to pay down some of the OPEB liability.
Mayor /Chair Gilmore stated the General Fund reserve balance has gone up because
maintenance projects have stopped; two years ago, the General Fund balance was $6
million; the balance has more than doubled in two years; questioned how the increase
happened in the middle of the worst depression since the 1930's; stated property
transfer tax and sales tax revenues have gone down; the Planning and Building
Department's salary savings should have been a net neutral.
The Controller responded that he would research [the reason for the increase in the
General Fund] and come back to Council.
Councilmember /Board Member /Commissioner deHaan inquired how deferred
maintenance is addressed in the Comprehensive Annual Financial Report (CAFR);
stated deferred maintenance totals $79 million.
The Controller responded Governmental Accounting Standard Board 34 has changed
how financials are presented; stated cities need to perform a complete infrastructure
inventory; the City took an estimated cost approach to determine the useful life on
various types of infrastructure and assets; page 45 has a line for enterprise activity
related to ferry services, the Golf Course, and Sewer Fund; depreciation should be
funded at a bare minimum in order to keep operation levels the same.
Councilmember /Board Member /Commissioner deHaan stated the Fiscal Sustainability
Committee came up with a $79 million figure [for deferred maintenance]; that he does
not see the amount referenced in the report; inquired whether reporting is required.
The Controller responded depreciation could be reported in two ways: as an estimated
cost or modified approach.
Special Joint Meeting
Alameda City Council, Alameda Reuse
and Redevelopment Authority, Community 2
Improvement Commission, and Housing
Authority Board of Commissioners
February 1, 2011
Councilmember /Board Member /Commissioner deHaan stated that he does not see
anything reflected in the report.
The Controller stated depreciation is reflected in the budget.
The Acting City Manager stated the CAFR has to follow specific guidelines.
Mayor /Chair Gilmore stated the Internal Service Funds have been running $800,000 to
$1 million in the negative; questioned how the negative has been reduced to $200,000.
Councilmember /Board Member /Commissioner Tam stated that she is looking for clues
on why the General Fund doubled; the Charter requires Alameda Municipal Power
(AMP) to transfer excess earnings to the General Fund; AMP did not have excess
earnings in Fiscal Year 2009/2010 but still transferred $2.8 million.
The Acting City Manager stated the Public Utilities Board (PUB) has an interest in
supporting the City.
The Acting City Attorney stated the PUB has made the same transfer over the past
several years.
The Controller stated an $800,000 one -time catch up payment was made this year.
Councilmember /Board Member /Commissioner deHaan moved approval of the staff
recommendation.
Vice Mayor /Board Member /Commissioner Bonta seconded the motion, which carried by
unanimous voice vote — 4. [Absent: Councilmember /Board Member /Commissioner
Johnson — 1.]
(`HABOC) Recommendation to Authorize the Acting Chief Executive Officer to
Negotiate and Execute a Purchase and Sale Agreement for the Islander Motel Property
Located at 2428 Central Avenue. Accepted.
AGENDA ITEMS
(11 -047 CC) Resolution No. 14545, "Approving and Authorizing Execution of a Public
Improvements Reimbursement Agreement between the City of Alameda and
Community Improvement Commission for the Alameda Point Improvement Project
Area." Adopted;
(11 -007 CIC) Resolution No. 11 -175, "Approving and Authorizing Execution of a Public
Improvements Reimbursement Agreement between the City of Alameda and
Special Joint Meeting
Alameda City Council, Alameda Reuse
and Redevelopment Authority, Community 3
Improvement Commission, and Housing
Authority Board of Commissioners
February 1, 2011
Community Improvement Commission for the Alameda Point Improvement Project
Area." Adopted;
(HABOC) Resolution No. 826, "Approving and Authorizing Execution of an Affordable
Housing Reimbursement Agreement Between the Housing Authority and the
Community Improvement Commission for the Alameda Point Improvement Project
Area." Adopted; and
(11 -007A CIC) Resolution No. 11 -176, "Approving and Authorizing Execution of an
Affordable Housing Reimbursement Agreement Between the Housing Authority and the
Community Improvement Commission for the Alameda Point Improvement Project
Area." Adopted.
The Deputy City Manager — Development Services submitted a handout and gave a
brief presentation.
Speaker: Robb Ratto, Park Street Business Association (PSBA).
Councilmember /Board Member /Commissioner Tam moved adoption of the resolutions;
stated the encumbrance of tax increment dollars is critical for the City to preserve the
ability to control the redevelopment of Alameda Point.
Vice Mayor /Board Member /Commissioner Bonta seconded the motion, which carried by
unanimous voice vote — 5. [Absent: Councilmember /Commissioner Johnson — 1.]
(11 -048 CC) Resolution No.14546, "Approving and Authorizing Execution of a Public
Improvements Reimbursement Agreement between the City of Alameda and
Community Improvement Commission for the Business and Waterfront Improvement
Project/West End Community Improvement Project Areas." Adopted;
(11 -008 CIC) Resolution No. 11 -177, "Approving and Authorizing Execution of a Public
Improvements Reimbursement Agreement between the City of Alameda and
Community Improvement Commission for the Business and Waterfront Improvement
Project/West End Community Improvement Project Areas." Adopted;
(HABOC) Resolution No. 827, "Approving and Authorizing Execution of an Affordable
Housing Reimbursement Agreement Between the Housing Authority and the
Community Improvement Commission for the Business and Waterfront Improvement
Project/West End Community Improvement Project Areas." Adopted; and
(11 -008A CIC) Resolution No. 11 -178, "Approving and Authorizing Execution of an
Affordable Housing Reimbursement Agreement Between the Housing Authority and the
Community Improvement Commission for the Business and Waterfront Improvement
Project/West End Community Improvement Project Areas." Adopted.
The Deputy City Manager — Development Services gave a brief presentation.
Special Joint Meeting
Alameda City Council, Alameda Reuse
and Redevelopment Authority, Community 4
Improvement Commission, and Housing
Authority Board of Commissioners
February 1, 2011
Speaker: Robb Ratto, PSBA.
Councilmember / Board Member / Commissioner deHaan moved adoption of the
resolutions.
Vice Mayor /Board Member /Commissioner Bonta seconded the motion, which carried by
unanimous voice vote — 5. [Absent: Councilmember /Board Member /Commissioner
Johnson — 1.]
ADJOURNMENT
There being no further business, Mayor /Chair Gilmore adjourned the meeting at 8:27
P. M.
Respectfully submitted,
Lara Weisiger, City Clerk
Secretary, CIC
The agenda for this meeting was posted in accordance with the Brown Act.
Special Joint Meeting
Alameda City Council, Alameda Reuse
and Redevelopment Authority, Community 5
Improvement Commission, and Housing
Authority Board of Commissioners
February 1, 2011