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2010-06-24 APFA, ARRA and CIC minutes
MINUTESOFTHESPECIALJOINTCITYCOUNCIL, ALAMEDAPUBLICFINANCINGAUTHORITY(APFA),ALAMEDA REUSEANDREDEVELOPMENTAUTHORITY(ARRA),AND COMMUNITYIMPROVEMENTCOMMISSION(CIC)MEETING THURSDAY--JUNE24,2010--7:00P.M. MayorJohnsonconvenedthemeetingat7:07p.m.Councilmember/AuthorityMember/ BoardMember/CommissionerGilmoreledthePledgeofAllegiance. ROLLCALL-Present:Councilmembers/AuthorityMembers/Board Members/CommissionersdeHaan,Gilmore, Matarrese,TamandMayor/ChairJohnson-5. Absent:None. CONSENTCALENDAR Mayor/ChairJohnsonannouncedthattheResolutionsApprovingRevisedDocuments [paragraphno.10-313CC]wereremovedfromtheConsentCalendarfordiscussion. Councilmember/BoardMember/CommissionerTammovedapprovaloftheremainderof theConsentCalendar. Councilmember/BoardMember/CommissionerMatarresesecondedthemotion,which carriedbyunanimousvoicevote-5.[Itemssoenactedoradoptedareindicatedbyan asteriskprecedingtheparagraphnumber.] (*10-311CC)RecommendationtoAwardLegalAdContractforfiscalyear2010-11. Accepted. (*10-312CC)ResolutionNo.14461"ApprovingInterimExpendituresPriortoAdoption oftheOperatingandCapitalBudgetforFY10-11."Adopted; (*ARRA)ResolutionNo.48,"ApprovingInterimExpendituresPriortoAdoptionofthe OperatingandCapitalBudgetforFY10-11."Adopted;and (*10-48CIC)ResolutionNo.10-168,"ApprovingInterimExpendituresPriortoAdoption oftheOperatingandCapitalBudgetforFY10-11."Adopted. (10-313CC)ResolutionNo.14462,"ApprovingRevisedDocumentsRelatedtothe IssuanceofRefundingBondsfortheCity'sCommunityFacilitiesDistrictNo.1(Harbor Bay)andMarinaVillageAssessmentDistrict89-1,andAuthorizingActionsin ConnectionTherewith."Adopted;and (10-05APFA)ResolutionNo.10-21,"ApprovingRevisedDocumentsRelatedtoLocal SpecialJointMeeting AlamedaCityCouncil,AlamedaPublic FinancingAuthority,AlamedaRuse andRedevelopmentAuthority,and CommunityImprovementCommission June24,2010 9 AgencyRefundingRevenueBonds(HarborBayCFDandMarinaVillageAD),and AuthorizingActionsinConnectionTherewith."Adopted. Councilmember/AuthorityMemberGilmorestatedtwoseriesofbondswouldbeissued becausethebondratingdidnotcomebackfavorably;onewouldbeaseniorseriesand theotherwouldbeasubordinateseries;inquiredwhetherthecostwouldbemoreiftwo serieswereissued;furtherinquiredwhetherthesubordinateserieswouldberiskierand whethersomeonewouldwanttobuythebonds. MarkHolmstedt,Westhoff,Cone &Holmstedt(WCH),respondedthatheisnothappy withtherating;statedtheratingisBBB,whichisnotabadratingforaland-secured bond;HarborBayCommunityFacilitiesDistrict(CFD)No.1has630homes;everyone hasbeenpayingtaxes;theareahasbeenbuiltoutforanumberofyears;thesenior bondswouldcorrespondtotheCFD;thesubordinatebondswouldcorrespondto MarinaVillageAssessmentDistrict89-1(AD);revenuescomefrombothdistricts;a defaultwouldnothurttheotherdistrict;theCFDisratedA-;theADbondshavefour yearsleft;adebtservicereservefundhasbeenestablishedtoensurethatifthetop threetaxpayersalldefaultfortwoyears,thebondswouldstillbepaid;aforeclosure proceedingcouldtakeplacetoensurepayment;thathethinkspeopleshouldfeelgood aboutbothseries;theADdistricthasneverhadafullpaymentdelinquencyforlonger thanayear;onetaxpayerhadasmalldelinquencyupuntilaweekago;thematterhas beencured;thathewouldexpectalittlebitbetterrateontheA-bonds;thecostwould notbemoreforissuingtwoseries. Councilmember/AuthorityMemberGilmorestatedtheCitymightgetabetterratingby splittingthebond. Mr.Holmstedtstatedlastweek,onebondingserviceratedthetransactionBBBforone bond;Standard&Poor's(S&P)doesnotagree;thetransactionwasrestructured;the CFDbondsaredifferentthananassessmentdistrictinthatmoretaxespaythebonds, whichisconsideredtobeahighercreditquality;theMarinaVillageDistricthasavery heavyownershipconcentration;threeofthehighesttaxpayerscontrol78%ofalltaxes; havingthethreetaxpayersdefaultwouldcreateaproblemandisthereasonforthe lowerrating. TheInterimCityManager/ExecutiveDirectorstatedtheCFDfairsbetterandtheAD fairsnoworsebysplittingthebond. Mr.Holmstedtstatedbidderswouldbeallowedtobidononeorbothbonds;anotice wassentaweekagoregardingtheforthcomingtransaction;anumberofmajorWall Streetfirmsareinterestedinbiddingonthebonds;majorinsurancecompaniesare lookingtowardsreinvestingthebonds;thatheexpectstoreceivestrongbidsnextweek. Councilmember/AuthorityMemberTaminquiredwhetherMarinaVillagebroughtdown SpecialJointMeeting AlamedaCityCouncil,AlamedaPublic FinancingAuthority,AlamedaRuse andRedevelopmentAuthority,and CommunityImprovementCommission June24,2010 thebondratingbecauseofapastdelinquencyandresultedinaBBBbetweenS&Pand Fitch,Inc. Mr.HolmstedtrespondedS&PwasalittlemoreconcernedabouttheinitialMarina VillagedelinquencythanFitch,Inc. Councilmember/AuthorityMemberTaminquiredwhethertheconcernwasbecauseof thethreehighesttaxpayer'sdelinquencies. Mr.Holmstedtrespondedonlyoneofthetopthreetaxpayerswasdelinquent;stated S&Pwasconcernedaboutthedelinquency. Councilmember/AuthorityMemberTaminquiredwhetherthedelinquencyisthereason fordroppingtheratingfromA-toBBB. Mr.Holmstedtrespondedinthenegative;statedtheA-ratingisaresultofrestructuring; lastweek'ssinglebondissuewasratedBBB;havingtworatingsistheresultof separatingthehomeownerportionfromthebusinessportion. Councilmember/AuthorityMemberTaminquiredwhetheranA-ratingistheresultof aggregatingbothbonds. Mr.Holmstedtrespondedthehigherratingistheresultofseparatingthebondsanda pledgeofallrevenuesfirstfortheseniorbond. Councilmember/AuthorityMemberTaminquiredwhetherornottheCFDwouldbe carryingtheADbecauseofAD'spoorerrating. Mr.Holmstedtrespondedintheaffirmative;statedneitherdistrictwouldbesupporting theother. Councilmember/AuthorityMemberTamstatedCouncilwantedtofocusonrefinancing debtthatwouldimmediatelyaffecttheGeneralFund;however,themarketwasnotthat greatatthetime;tonight'srecommendationisnotinsaidcategory;inquiredwhatwould beWCH'sfee. Mr.Holmstedtrespondedtotalfinancialadvisoryfeesareestimatedtobeapproximately $196,000. Councilmember/AuthorityMemberTaminquiredwhetherWCHwouldget70%. Mr.Holmstedtrespondedapproximately;statedfeeswouldgodownifthetransaction goesdown;feeswouldnotexceed$196,000. SpecialJointMeeting AlamedaCityCouncil.AlamedaPublic FinancingAuthority,AlamedaRuse andRedevelopmentAuthority,and CommunityImprovementCommission June24,2010 Councilmember/AuthorityMemberTaminquiredwhetherfeeswouldcomeoutofbond refunding,nottheGeneralFund,towhichMr.Holmstedtrespondedintheaffirmative. TheInterimCityManager/ExecutiveDirectorstateddirtbondsarepledgedbyland collateral,nottheGeneralFund;refundingwouldnothelptheGeneralFundbutwould helptaxpayers. Mr.HolmstedtstatedHarborBayhomeownersshouldexpectasavingsbetween$417 and$761;MarinaVillagebusinessownerswouldseetaxesreducedbyapproximately 10%. Councilmember/AuthorityMemberGilmoreinquiredwhatisthedifferencebetween refinancingandrefunding. Mr.Holmstedtrespondednothing;statedalotoftimewasspentontheissuelastweek; thatheapologizesforhavingtobringthetransactionback;thestructureissuperior; ratingshavebeenconfirmed;thetransactionisasgoodaspossible. Councilmember/AuthorityMemberMatarresemovedadoptionoftheresolutions. ViceMayor/AuthorityMemberdeHaansecondedthemotion,whichcarriedbythe followingvoicevote:Ayes:Councilmembers/AuthorityMembersdeHaan,Gilmore, Matarrese,andMayor/ChairJohnson-4.Abstentions:Councilmember/Authority MemberTam-1. CITYMANAGER/EXECUTIVEDIRECTORCOMMUNICATION (10-49CIC)RedevelopmentImpactsonAlamedaUnifiedSchoolDistrict DavidDoezema,KeyserMarstonAssociates,gaveaPowerPointpresentation. CommissionerdeHaanstatedCICpaymentstoAlamedaUnifiedSchoolDistrict(AUSD) total$1.8millionforcapitaland$3millionovertenyears;inquiredwhetherthereare limitationsonhowpropertytaxrevenuecanbespent. Mr.Doezemarespondedcapitalfundsneedtobespentonbuildingsand improvements;housingfundsneedtobespentonhousingconsistentwithvarious redevelopmentlawrequirements;40%needstobespentforverylowincomehousing andthebalanceneedstobespentonmoderateincomehousing. CommissionerdeHaaninquiredwhetherthesplitisthroughanagreementorStatelaw. Mr.Doezemarespondedthroughanagreement;statedmostofthemoneyincludedin the$5millionispaidpursuanttotheBusinessandWaterfrontImprovementProject SpecialJointMeeting AlamedaCityCouncil,AlamedaPublic FinanCingAuthority,AlamedaRuse andRedevelopmentAuthority.and CommunityImprovementCommission June24,2010 1 (BWIP)Agreement;theAgreementwasnegotiatedin1991whentheprojectareawas established;asmallportionofthecapitalcomesfromanotherprojectarea. CommissionerdeHaaninquiredwhetherPeraltaCommunityCollegehasasimilar breakdown,towhichMr.DoezemarespondedthesplitisuniquetoAUSD. CommissionerMatarreseinquiredhowAUSDbecametherecipientofhousingmoney andifso,whatwastherational,towhichMr.Doezemarespondedthathedoesnot knowthebackground. TheEconomicDevelopmentDirectorstatedstaffhastriedtopiecetogetherthestory; nobodyisaroundtodaytoexplaintheissue;otherredevelopmentagenciesweredoing thesamethingbecauserecruitingteacherswasdifficultduetoCalifornia'shighcostof living;SanJosealsodidsometeacherhousingtodealwiththeissueinthelate1990's; thatsheisnotsurehowandwhodecidedthatAUSDwantedtohaveahousingfund. CommissionerMatarreseinquiredhoweasyitwouldbetochangetheAgreement. TheEconomicDevelopmentDirectorrespondedtheAgreementcannotbealtered; statedthecontractualarrangementsweremadebeforeStatelawchangedtostop negotiatedagreementsbetweenredevelopmentagenciesandschooldistricts;AB1290 requiresallcontractualnegotiationstostopandeveryonehasformulatedpass throughs. CommissionerdeHaaninquiredwhetherAUSDputsanymoneyawayforhousing,to whichtheEconomicDevelopmentDirectorrespondednottoherknowledge. CommissionerdeHaanstatedthesituationisunique;65%ofthefundsgotohousing. TheEconomicDevelopmentDirectorstatedtheRedevelopmentAgencyisobligatedto ensurethatthemoneygoesintohousing. CommissionerTamstatedFormerAssistantCityManagerDavidBrandtexplainedto herthattheMastickSeniorCenterlocationbelongedtotheSchoolDistrict;an agreementwasmadewhichincludedprovidinghousingfortheSchoolDistrict. TheEconomicDevelopmentDirectorstatedtheAgreementisseparate;thatsheisnot surehowtheissuecameabout;theCityagreedtotakeMastickSeniorCenterin exchangeforgivingotherthingstotheSchoolDistrict;theCitypledgedtoprovidecash andadditionalsupportfortheconstructionofRubyBridgesschoolandtradedaleaseat theEncinalTerminalarea;theSchoolDistrictcollectsrevenueoffthelease. ChairJohnsonstatedtheSchoolDistricthasleasedpropertyattheformerNavalBase. SpecialJointMeeting AlamedaCityCouncil,AlamedaPublic FinancingAuthority,AlamedaRuse andRedevelopmentAuthority,and CommunityImprovementCommission June24,2010 CommissionerTaminquiredhowtheIslandHighSchoolcommitmentturnedintoaneed forhousing. TheEconomicDevelopmentDirectorrespondedtheCitydoesnothaveacommitment forIslandHighSchool;statedtheCityisinterestedinacquiringIslandHighSchoolto buildhousing. CommissionerTamstatedMr.BrandtexplainedtoherthattheCityhadtoprovidea passthroughfortheSchoolDistrictandtherewaspotentialforworkingwiththeSchool DistricttoprovideanadvancewhentheSchoolDistricthasfinancialproblemstoseeif theCitycouldprovidesometypeofin-kindserviceforanIslandHighSchooltrade. TheEconomicDevelopmentDirectorstatedtheCityhasexploredwaystomakeuseof thehousingmoneyfortheSchoolDistrict;theSchoolDistricthastheproperty[Island HighSchool]thattheCityisinterestedinasalocationforaffordablehousing;overthe lastcoupleofyears,theCityhasdiscussedleasingthepropertylongterm,buyingthe propertyoutright,orleasingthepropertyandmakingsometypeoflargepayment upfrontsothattheSchoolDistrictcouldusethemoneyforsomethingotherthan housing;now,thereisauniquetimewindowinthelawforthenexttwoyearsandtwo monthsinwhichtheSchoolDistrictcanusethemoneyfromlandsalesforoperating purposesratherthanbeingconfinedtocapital. CommissionerdeHaaninquiredwhetheranymoneycouldhavebeendesignatedfor operationwhenthepassthroughwasputtogether. TheEconomicDevelopmentDirectorrespondedtheStaterequiresthataportionofthe passthroughgoestocapitalandthebalancegoestooperating;statedtheissuewith the43.3%operatingportionisthattheSchoolDistrictneedstoreporttheamount receivedtotheState,andtheStatereducesfundingforoperation;schooldistrictsare fundedbaseduponanaveragedailyattendanceformula. ChairJohnsonstatedthepassthroughisaliabilitytotheState. CommissionerGilmorerequestedanexplanationoftheEducationalRevenue AugmentationFund(ERAF)shift. Mr.DoezemastatedtheERAFtakefromtheCICandotherredevelopmentagencies acrosstheStategoesintoaspecialfundineachcountywithintheState;theStateuses themoneytopaywhatitisrequiredtopaytoschools;underProposition98,theState hasanobligationtogetallschooldistrictstoacertainfundinglevel. CommissionerGilmoreinquiredwhetherthe$7.4million[takenfromAlameda]hasnot gonetoAUSD,buttoschooldistrictsstatewideinthepasttenyears. SpecialJointMeeting AlamedaCityCouncil,AlamedaPublic FinancingAuthority,AlamedaRuse andRedevelopmentAuthority,and CommunityImprovementCommission June24,2010 Mr.Doezemarespondedintheaffirmative;statedthemoneyisreallygoingtotheState; the$7.4millionrepresentsthedifferentStatetakesoverthelasttenyearsthrough FiscalYear2009-2010,notFiscalYear2010-2011;$4.6wastakeninFiscalYear2009- 2010;the$7.4millionincludestakesforFiscalYears2002-2003,2003-2004,2004- 2005,2005-2006;$4.6millionrepresentsalmostthirtypercentoftheCity's redevelopmentmoney. ChairJohnsonstatedthemoneygoestoschoolsandreducestheState'sliabilityto schools;theschoolsarenobetteroff. CommissionerdeHaaninquiredwhetherschoolsareanyworseoff. Mr.Doezemarespondedinthenegative;statedthematterisabudgetsolutionforthe Stateonly;continuedthepresentation. CommissionerTaminquiredwhetherpassthroughfundsdonotoccuruntiltax incrementisproduced,towhichMr.Doezemarespondedintheaffirmative;continued thepresentation. CommissionerdeHaaninquiredwhenpassthroughsstarted,towhichMr.Doezema respondedfiscalyear2005-2006. CommissionerdeHaaninquiredwhethertheAgreementcouldhavebeenmodified. Mr.Doezemarespondedthepaymentrequirementisdictatedbyastatutoryformulain Californiaredevelopmentlaw. TheEconomicDevelopmentDirectorstatedtheAgreementisnotwiththeWestEnd CommunityImprovementProject(WECIP),butwithBWIP. Mr.Doezemacontinuedthepresentation. ChairJohnsoninquiredwhetherthe2009-2010declineisduetoreassessments. Mr.Doezemarespondedthedeclinerepresentsdownwardadjustmentsfromassessed homevaluesduetothedeclineinthemarket;statedthemajorfactoristhatone-time revenueswerereceivedinFiscalYear2008-2009thatdidnothappenagaininFiscal Year2009-2010;continuedthepresentation. CommissionerMatarreseinquiredwhetherthefiscalyear2009-2010AlamedaPoint ImprovementProject(APIP)negativetaxincrementisaccountedforinbalancingthe budgetfortheredevelopmentareaandisnotcomingfromtheGeneralFund. Mr.Doezemarespondedintheaffirmative;statedthenegativetaxincrementwaspaid SpecialJointMeeting AlamedaCityCouncil,AlamedaPublic FinancingAuthority,AlamedaRuse andRedevelopmentAuthority,and CommunityImprovementCommission June24,2010 outoftheAPIPfundbalance,includingborrowingfromthehousingsetasidewhichisa permittedmethod;continuedthepresentation. TheEconomicDevelopmentDirectorstatedtheCIChaspartneredwithAUSDtofunda numberofprojects;theCICdevelopedtheRubyBridgesParkandCommunityCenter; AUSDdidnothavetobuyandmaintaintherequiredopenspace;thefirstrightofuseis giventotheSchoolDistrictthroughaJointUseAgreement;sevencleanacreswere deliveredtoAUSDinadditiontoalltheinfrastructureforconstructingRubyBridges School;acashcontributionwasmadeforconstructionoftheschool,whichwas negotiatedintheContract. CommissionerdeHaaninquiredwhetheradditionalpropertytaxeswouldbe$3.1million iftherewerenotaredevelopmentagreement. Mr.Doezemarespondedthe$16milliongeneratedwouldbesplitbetweentheSchool District,CountyandothersiftheCICdidnotcollecttaxincrement. ChairJohnsoninquiredwhethertheStatealwayslowerstheallocationifAUSDreceives morefromlocaltaxes. Mr.Doezemarespondedintheaffirmative;statedAUSDgets$49millionregardless. CommissionerTaminquiredwhetherAUSDalwaysgets$49millionfromtheState. Mr.Doezemarespondedthenumberchangesfromyeartoyear;statedtheamountis basedonenrollmentandcomplicatedStateformulas. CommissionerTaminquiredwhetherthe$3.1millionamountwouldchangeiftheState givesAUSDless. Mr.Doezemarespondedinthenegative;statediftherevenuelimitwas$45million insteadof$49millionnextyear,theStatewouldgiveAUSD$4millionless;thekey variableiswhattheStateprovides. ChairJohnsonstatedlocaltaxgoesinfirstandtheStatemakesupthedifferenceofthe amounttheStatedeterminesaccordingtotheformula;theschooldistrictsgetlessfrom theStateifmoreisreceivedfromlocaltax. CommissionerMatarreseinquiredwhetherthedifferencefromhavingaredevelopment areaisthatAUSDhasanadditional$776,000,towhichMr.Doezemarespondedinthe affirmative. CommissionerMatarreseinquiredwhetheralargeamountgoesforhousing,towhich Mr.Doezemaresponded$480,000goestohousing. SpecialJointMeeting AlamedaCityCouncil,AlamedaPublic FinancingAuthority,AlamedaRuse andRedevelopmentAuthority,and CommunityImprovementCommission June24,2010 1 Speakers:DavidHoward,Alameda,(providedhandout);andGretchenLipow,Alameda. FollowingMr.Howard'scomments,Mr.Doezemastatedaparceltaxfundsthepotential ofgettingabovethe$49millionrevenuelimit;localpropertytaxcanonlycontributeto offsettingwhatStatemoneywouldbeavailabletogettothe$49millionrevenuelimit;a parceltaxaddssomethingnew;the$3.1millionisnotnewtoAUSD;thespeakerwas drawingaconnectionbetweenredevelopment,theCIC'staxincrementcollection,and theState'sbudgetsituation;theState'sbudgetsituationisverycomplex;theestimated shortfallis$20billion;thathedoesnotthinkthe$20billionshortfallcanbeblamedon the$3.1million. CommissionerGilmorestatedbothcolumns[onChart5]havea$49millionrevenue limit;inquiredwhetherAUSDcanspendthemoneyhoweveritwants. Mr.Doezemarespondedintheaffirmative;statedthemoneyisoperatingmoneyandis notrestrictedtocapital. CommissionerGilmoreinquiredwhetherthe$3.1millionhasnorestrictionsbutdoes notaddtotheoperatingbudgetineithercolumn. Mr.Doezemarespondedintheaffirmative;statedthemoneyisnotnewbutisflexible. ChairJohnsoninquiredwhetherthetotalamountsinbothcolumnsareoperating money,towhichMr.Doezemarespondedintheaffirmative. ChairJohnsonstatedthespeakerthoughtthatpartofthemoneyisrestricted. Mr.Doezemastatedtheonlypartthatisrestrictedisthepinkpartatthetop[$776,000]; bothcolumnsareunrestricted. TheEconomicDevelopmentDirectorstatedthe$293,000forcapitalcanbefreedupfor teachers. ChairJohnsonstatedthespeakerthoughtthatonecolumnisbetterthantheother;the EconomicDevelopmentDirectorissayingthatthecolumnsarethesame. TheEconomicDevelopmentDirectorstatedbothcolumnsarethesameexceptforthe pinkpart. ChairJohnsoninquiredwhetherbothcolumnsarethesameforAUSD,towhichMr. Doezemarespondedintheaffirmative. CommissionerTamstatedlastweek,theCitysenttheStatealittleover$4millionin SpecialJointMeeting AlamedaCityCouncil,AlamedaPublic FinancingAuthority,AlamedaRuse andRedevelopmentAuthority,and CommunityImprovementCommission June24,2010 redevelopmentfunds;inquiredwhetherAUSDmightnotseeanyofthemoneybecause themoneycouldgotootherschooldistricts;furtherinquiredwhethertheCity's redevelopmentfundsgoingtotheStateandtheSchoolDistrict'sfinancialissueshave nocorrelation. Mr.Doezemarespondedthatthe$4.6millionpaidintotheERAFcanbespent anywhereinCalifornia. CommissionerdeHaaninquiredwhetherredevelopmentareaspaythesametax,to whichMr.Doezemarespondedintheaffirmative. CommissionerdeHaanstatedallcitiesskimoffaportion;therevenueisnotgoinginto theState'spot. Mr.DoezemastatedthathequalifiesCommissionerdeHaan'scomment;theCICis collectingtaxincrementgeneratedbytheBayportproject;somepeoplewouldsaythat themoneywouldnotexistifnotfortheCIC;theCICfundsitself. CommissionerMatarresestatedCICgeneratedprojectskeepmoneylocal;theStateis compelledbythe1970'sSerranovs.Priestdecision;thedecisionwasdesignedsothat richcitieswouldnotplacepoorschoolsatadisadvantage;theStateiscompelledtoput everyCaliforniastudentonalevelplayingfield;theCity'sredevelopmentputs$293,000 intotheSchoolDistrict'scapital;richcitiesthatcanaffordahigherparceltaxhave betterschoolsthanpoorcities. CommissionerGilmorestatedtheissueiswhytheRobles-Wongcaseissoimportant; AUSDandotherschooldistrictssuedCalifornia;theStateisnotlivinguptotheSerrano decision;peoplesaythatAUSDhasothermethodstoraisemoneybesidesparceltaxes whichisnottruebecausetheStatetakesthemoney;unfortunately,thematterwilltake years[tocorrect]becauseofthehowthingswindthroughthelegalsystem. (10-314CC)UpdateonMeasureP TheInterimCityManagergaveabriefpresentation. ViceMayordeHaanstatedtheCitywouldhavelostapproximately$1.8millionwithout MeasureP;theCitystayedstatusquo. TheInterimCityManagerstatedapproximately$2millionmorewaspickedupinFiscal Year2008-2009thanwouldhavebeenwithoutMeasureP. (10-315CC)CitywideAssetManagementPolicy TheInterimCityManagergaveaPowerPointpresentation;statedtheAsset SpecialJointMeeting AlamedaCityCouncil,AlamedaPublic FinancingAuthority.AlamedaRuse andRedevelopmentAuthority.and CommunityImprovementCommission June24.2010 ManagementPolicywouldbebroughtbackattheJuly20,2010orJuly27,2010 Councilmeeting. CouncilmemberMatarresestatedonemaximizationofreturnmightbeacontributionto infrastructure;hispreferencewouldbetotilttothehardassetifhehadtochoose betweentheGeneralFundversussomethinggoingintotheground,ensuringthatthe shorelineisshoredupandstreetsandsewersaremaintainedatahighlevel;thehard assethasalongerlife. TheInterimCityManagercontinuedthepresentation. CouncilmemberGilmoreinquiredhowtheVeteran'sBuildingandMeyer'sHousewould beclassified. TheInterimCityManagerrespondedtoday,theVeteran'sBuildingwouldbeconsidered communityuse;statedtheVeteran'sBuildingcouldbeconsideredoperationaliftheCity rehabilitatedthebuildingintoofficespace;theMeyer'sHouseisconsideredcommunity use. CouncilmemberTaminquiredwhetherafairappraisalwouldbeperformedforlong-term leaseorsale. TheInterimCityManagerrespondedanappraisalwouldbedoneforasale;stated othercriteriawouldbeconsideredforotherusestodeterminehowtheCitycouldget managementoftheassetintermsofreturn. CouncilmemberMatarresestatedthetoppriorityoftheassetmanagementstrategy shouldbetomaintaintheasset;theTidelandshasveryexpensivemaintenance; bringingtheVeteran'sBuildingbacktothewayitwaswouldbeveryexpensive. MayorJohnsonstatedabalanceisrequiredbecausemaintenancefundingisneeded; theCitydoesnothaveastrategicplanformaintainingassets. CouncilmemberMatarresestatedthatheunderstandsthebalanceandneedfor revenue;inhardtimes,revenueisalwaysusedforoperationsandmaintenanceis deferred. MayorJohnsonstatedmaintenancefundingheedstobeestablished;theVeteran's Buildingisnottheonlyassetthathasnotbeenmaintained;fundsneedtobesetaside foraccumulated,deferredmaintenance. ViceMayordeHaanstatedpropertiesneedtogetbacktoanoriginalbaseline;then, maintenancecanbedone;manytimes,excesspropertyissomethingtomakemoney on;theassetcouldbeheldontoforsomethingthatcouldbebeneficialtothe SpecialJointMeeting AlamedaCityCouncil.AlamedaPublic FinancingAuthority,AlamedaRuse andRedevelopmentAuthority,and CommunityImprovementCommission June24,2010 community. TheInterimCityManagerstatedlastSaturday[attheJune19,2010meeting], discussionsincludedconsideringdevelopmentofaparkinglotforhousing;thegoalisto comeupwithapolicythathasacriteriaofinterestagainstwhichtomakeadecision. CouncilmemberMatarresestatedapolicyforone-timerevenuesourcesnotbeingused foroperationwasdiscussedonSaturday;thepolicywouldincludeputtingone-time revenuesourcesintomaintaininghardassets;thepolicywouldneedtobelinkedto otherbudgetingpolicies;unusedassetscouldbesoldtoleverageotherassetstocreate qualityoflife,jobs,orataxstream. CouncilmemberGilmorestatedthatshelikestheideaofprioritizing;prioritiesare neededwhendiscussingmaximizingvaluebenefit;thebalancingactislikearoadmap. MayorJohnsoninquiredwhethertheInterimCityManagerwouldhavealistofspecific assetswhenthemattercomesback. TheInterimCityManagerrespondedassetswouldnotbeclassified;statedstaffwould comeupwithastreamlinewayofapplyingthepolicy;areportmightbereadyby September. MayorJohnsonstatedanextracolumnisneededforfundingwhenthemattercomes back;theCityneedstobehonestaboutwhethertherearetoomanyassetstomaintain. InresponsetoViceMayordeHaan'sinquiry,theInterimCityManagerstatedmostcities thatincorporatedbefore1962areinthesamesituationasAlameda;assetshavenot beeninventoried;citiesthatincorporatedinthe1960'sarenowenjoyingtenyearsofno paymentsoutoftheGeneralFund;Citydepartmentspayaproportionateamountof moneyondebtservice;thatshekeepschargingdepartmentsoncethedebtispaidoff andhasbeensettingasidemoneyfordeferredmaintenance;Alamedapracticallyowns everything it has;theCity'sfirstchallengeistogobackandrecoverotheritemsinthe internalservicefund;thenextchallengeistocontinuetohavedepartmentsabsorb proportionatecostsofputtingadollaramountintotheinternalservicefundwhichwould beusedfordeferredmaintenancereserve;thegoalistochargedepartmentsxamount ofdollarsinfixedchargesinthefacilitiesmaintenancefund;theCitywasonlyableto putin$100,000lastyear. ViceMayordeHaaninquiredwhethertheInterimCityManagerisbuildinganewmodel orwhetheragoodmodelisoutthere. TheInterimCityManagerrespondedoldercitiesarenotdisciplinedaboutputting moneyawayfordeferredmaintenance. SpecialJointMeeting AlamedaCityCouncil,AlamedaPublic FinancingAuthority,AlamedaRuse andRedevelopmentAuthority,and CommunityImprovementCommission June24,2010 ViceMayordeHaanstatedtheCityistryingtoestablishsomenewground. TheInterimCityManagerstatedtheAssetManagementPolicyisbuiltonaprivatization model. MayorJohnsonstatedthenation'sbridgescannotbemaintained. TheInterimCityManagerstatedGovernmentAccountingStandardBoard(GASB)45 requirescitiestocounteveryasset;citieswerenotawareoftheamountofpublicassets orvalues;continuedthepresentation. MayorJohnsoninquiredwhetheraprovisioncouldbeaddedregardingrentincreases; statedtwotwenty-fiveyearleasesdonotprovideforanyrentincrease. TheInterimCityManagerrespondedthejustificationwoulddependupontheuse, utilizationschedule,andmeasurementcriteria;statedcitiesthatfosteralotofincubator businessesoftenusethe"flatforfive"formula,whichprovidesfornoincreasesforfive years. MayorJohnsonstatedfindingsshouldbemadeforfifty-yearleases. TheInterimCityManagercontinuedthepresentation. MayorJohnsoninquiredwhethertheproposedcriteriachecklistwouldincludereal propertyorothertypesaswell. TheInterimCityManagerrespondedthechecklistwouldincludeanythingdefinedas realpropertysuchaslandandbuildings;statedcarswouldnotbeincluded;aten percentdeferredmaintenancereservewouldbeapproximately$22million. CouncilmemberMatarresethankedstaffforthereport;statedthetieintodisciplined fundingiscritical. ViceMayordeHaanstatedothercitiesmusthaveplowedthroughtheissuebefore. TheInterimCityManagerstatedtheproposedchargebackmodelwouldbevery differentthanwhatcitiesuse. CouncilmemberTamstatedtheLeagueofCaliforniaCities'PublicWorksDepartment hasanassetmanagementtemplatepolicy;however,thepolicydealswiththepublic worksanglefordeferredmaintenanceandhasbeenusedtojustifythegastax;the AlamedaCountyPlanningCommissionhasanassetstrategythatacommunity developmentgroupdevelopedforallcountyassets;EastBayMunicipalUtilityDistrict (EBMUD)hasanassetmanagementdepartmentthatdealswithdeclarationofsurplus SpecialJointMeeting AlamedaCityCouncil,AlamedaPublic FinancingAuthority,AlamedaRuse andRedevelopmentAuthority,and CommunityImprovementCommission June24,2010 property;aspecialdistrictbuyslandanditchangeshandsbecausethepropertyisnot needed,islandlocked,orthereisnotpublicinterest;then,thelandisdisposed,thereis athresholdmeasuretodeterminehowmuchmoneyispouredinformaintenanceand howlongtheassetshouldlast. MayorJohnsonstatednewercitiesdonothaveasmuchdeferredmaintenanceasolder cities;citieswouldbeinabetterpositionifmoneyissetaside;Alamedaisinabetter situationthanothercitiesofasimilarage. CouncilmemberMatarresestatedaCity-ownedbuildingisnotfree,butisarealcostfor runningtheCity;structuralproblemsneedtobefixed. TheInterimCityManagerstatedthematterwouldcomebacktoCouncilonJuly zo"or July 2ih;staffisstartingatthecoreofCity-ownedassets;afilewouldbecreated;staff wouldlookforeverydeed;Councilwouldhavetheopportunitytoapplytheproposed policyindependentlytoexpiredleasesandotherassetsthatshouldbereviewed. AGENDAITEMS None. COUNCIL REFERRAL (10-316CC)DiscussionofReconsideringtheCouncilActiontoRefertheCampaign FinanceReformOrdinancetotheSunshineTaskForce. MayorJohnsongaveabriefpresentation. Speakers:GretchenLipow,ChairSunshineTaskForce;JonSpangler,Alameda;Jean Sweeney,Alameda;KarenButter,LeagueofWomenVoters;AshleyJones,Alameda; RosemaryMcNally,Alameda;AidanBarry,Alameda;andJimSweeney,Alameda. FollowingMs.Upow'scomments,CouncilmemberGilmoreinquiredwhetherMs.Upow isspeakingsolelyforherself. Ms.Upowrespondedintheaffirmative;statedanTaskForcemeetingwasheldthenext night[aftertheJune rs"Councilmeeting];theissue[campaignfinancing]wasnoton theagenda;theSunshineTaskForcediscussedplacingtheissueonitsJuly1ih agenda. CouncilmemberGilmorestatedMs.Upow'semailmakesreferencetoMs.Upow consideringsteppingdownfromtheTaskForce;inquiredwhetherthestatementis accurate. SpecialJointMeeting AlamedaCityCouncil,AlamedaPublic FinancingAuthority,AlamedaRuse andRedevelopmentAuthority,and CommunityImprovementCommission June24,2010 Ms.LipowrespondedtheSunshineTaskForcesignedontoworkonanordinanceand notcampaignfinancingorlobbying;statedthatshedoesnotthinksheisqualifiedto addresscampaignfinancing. ViceMayordeHaanstatedCouncilwantedcertainthingstogoforwardimmediately;the confusionisthatCouncilhasremandedcampaignfinancingbacktotheSunshineTask Force;theconfusionlieswithCouncil. CouncilmemberGilmorestatedthatsheisnotconfused;Councilhasdiscussedallthe variousissues;CouncilmemberMatarresestatedthathewenttoaDemocraticClub meetingandpeoplewerenotawareofAlameda'sissue;thatsheandCouncilmember Tammentionedvariousissueswithintheordinancespecifically;shementionedthatthe matterisaconflictofinterestforthemajorityofCouncilandthemattershouldnotbe votedonandshouldnotbecomeeffectiveuntilJanuary1,2011;noneoftheissues havechanged;theonlynewitemofevidenceisthatMs.Lipowsentanemailspeaking forherselfandnotspeakingfortheSunshineTaskForce;noneoftheunderlining issuespointedoutatthelastmeetinghavechanged;Ms.Lipowhastheprerogativeto stepdown;theSunshineTaskForcefacilitatorisaformerHaywardCityAttorney;the SunshineTaskForcehastakenupthecausebecausethematterhasbeenputonthe Julymeetingagenda. ViceMayordeHaanstatedthathedisagreeswithCouncilmemberGilmore;Council discussedholdingtheSunshineTaskForcetotwoorthreemeetings;now,Council needstogiveguidelinesonwhattodo. Ms.LipowstatedtheSunshineTaskForcehasneverdiscussedtheissue;thatshe doesnotknowhowotherTaskForcemembersfeelabouttheissue;theTaskForceis unclearaboutCouncildirection. MayorJohnsoninquiredwhetherCouncilmembersconsideringacampaignfinance reformordinancewouldbeaconflictofinterest. TheAssistantCityAttorneyrespondedthatshedoesnotthinktherewouldbeaconflict ofinterestunderFairPoliticalPracticesCommissionrules. CouncilmemberGilmorestatedfiveCouncilmemberswouldbeaskedtomakea decisionthatwouldpotentiallychangerulesinthemiddleofanelectioncycle;three Councilmembershavealreadydeclaredtoruninthiselection;theproposedchange wouldaffecteveryone;peoplewhohavealreadydeclaredtorunandhaveraised moneywouldhaveanadvantageoverpeoplewhoentertheraceaftertheordinance passesbutbeforethefilingdeadline;peoplewouldberunningintheraceundertwo separatesetofrules;havingpeoplegivebackmoneyraisedbeforetheordinanceisa differentstory. SpecialJointMeeting AlamedaCityCouncil,AlamedaPublic FinancingAuthority,AlamedaRuse andRedevelopmentAuthority,and CommunityImprovementCommission June24,2010 1 MayorJohnsonstatedtheterm"conflictofinterest"hasbeenthrownaroundloosely;the publicneedstounderstandwhatisandisnotatechnicalconflictofinterest. CouncilmemberGilmorestatedtheconflictofinterestmaynotbetechnical,butthe actualityisthatiftheordinancepassesmidstream,incumbentswouldgetapractical advantageovernon-incumbentsintheupcomingelection. CouncilmemberTaminquiredwhetherMs.LipowsharedheremailwithTaskForce colleagues,towhichMr.Lipowrespondedinthenegative. CouncilmemberTaminquiredwhetherMs.LipowwaspresentattheJune16th Task ForceMeeting,towhichMs.Lipowrespondedintheaffirmative. CouncilmemberTamstatedtheSunshineTaskForceViceChairstated"astheCouncil reaffirmed,theTaskForceoperatesundertheBrownActandbecausewedo,the campaignfinancereformissuewasnotandcouldnotbelegallyagendizedatour meetingofWednesday,June16,2010;however,theitemwasunanimously,and withoutconcern,addedtoourJulypublicworkshopforfullparticipationanddiscussion"; inquiredwhetherMs.Lipowexpressedconcern,towhichMs.Lipowrespondedinthe affirmative. CouncilmemberTaminquiredwhetherMs.LipowindicatedtotheTaskForcethatshe didnotfeelthatshewasqualifiedtotakeontheproject. Ms.Lipowstatedgenerally,shetendstodothingswhensheseesthingsinwriting;that herconcernwaswithwhatCouncilwasreallysayingandwhatCouncilwantedtheTask Forcetodo. CouncilmemberTamstatedthatsheunderstandsthefacilitatorwouldbewillingtostep inandassumetheresponsibilityofservingontheTaskForce. Ms.LipowstatedthatshedoesnotknowhowotherTaskForcemembersfeelaboutthe issue. MayorJohnsonstatedtheintentoftheCouncilReferralisnottodebatethemeritsof campaignfinancereformbuttodiscusstheprocessofhandlingthematter;Council votedtosendthemattertotheSunshineTaskForcewhichmightnotbetherightplace; CouncilgavespecificdirectiontotheSunshineTaskForce;theSunshineTaskForce hashadcertainexpectationsofthecommitment;thatshethinksthemattershouldbe broughtbacktoCouncilforprocessdiscussion. ViceMayordeHaanstateddiscussionsneedtoaddresswhethertheissueshouldbe keptatCouncillevel. SpecialJointMeeting AlamedaCityCouncil,AlamedaPublic FinancingAuthority,AlamedaRuse andRedevelopmentAuthority,and CommunityImprovementCommission June24,2010 CouncilmemberMatarresestatedthathevotedforthefirstreadinginordertogetthings started;avoidhasoccurredbetweenthefirstandsecondreading;Councilhasbeen talkinginavacuum;thathedoesnotseethatanythinghaschangedregardingsetting maximumcontributionlimits;thathewouldliketohearwhattheTaskForcehastosay; thedecisionwouldbeaCouncilvote;abroaderhearingisneeded. ViceMayordeHaanstatedCouncilcanhaveabroaderhearing;Councilwouldbe shruggingitsresponsibility[bysendingthemattertotheTaskForce];Councilcanair themattertothepublic;Councildoesnotwantachangeinthiselectioncycle;people wanttokeepthingsstatusquoduringthiselection;thatheisnotaskingpeopleto refundmoneyalreadyraised;thecontributionlimitwouldbeineffectoncetheordinance ispassed. CouncilmemberGilmorestatedpeoplewhohavealreadystartedraisingmoneywould beabletokeepthemoney;peoplejumpingintotheracenowwouldhaveadifferentset ofrulesiftheordinancebecomeseffectivenow;historically,financelimitstendtofavor incumbents;non-incumbentswouldbeputatadisadvantage;Councilisnotabdicating responsibility;Councilneedstopassanordinance;alotofCouncilmembershave volunteertreasurers;atreasureronlyhasthreehourstofileontheFridaybeforethe election;theproblemwouldbesignificantforatreasurerwhohasanotherjob;thatshe isinfavorofcampaignreformandspending,butshethinksgettingthingsrightas opposedtofastisimportant;thatshedoesnotwanttheCitytogetsuedandhaveto spendmoneydefendingalawsuit. MayorJohnsonstatedthesubstanceofcampaignfinancereformisnotontheagenda; theissueiswhethertobringthematterbackforCouncildiscussionsothatanother processcouldbeconsidered. CouncilmemberGilmoreinquiredwhethertheonlythingthatpromptedtheCouncil ReferralisthefactthattheSunshineTaskForceChair,speakingforherself,declared thatshedidnotfeelthatshewouldbeabletotakeonthetask. MayorJohnsonrespondedintheaffirmative;statedinaddition,theoriginaldirection giventotheSunshineTaskForcewasamuchnarrowertask;statedtheSunshineTask ForcesignedonforonejobandnowCouncilisgivingitmorejobstodo;thematter needstobereconsidered. FollowingMr.Sweeny'scomments,CouncilmemberTaminquiredwhetherMayor Johnson'sconcernisthattheJune15th Councilactiondidnotprovideenoughdirection totheSunshineTaskForce. MayorJohnsonrespondedinthenegative;statedtheoriginalSunshineTaskForcetask hasbeengreatlyexpandedbydirectiongivenatthelastCouncilmeeting;themater shouldbereconsidered. SpecialJointMeeting AlamedaCityCouncil,AlamedaPublic FinancingAuthority,AlamedaRuse andRedevelopmentAuthority,and CommunityImprovementCommission June24,2010 113 CouncilmemberGilmoreinquiredwhy;statedthemajorityoftheCouncilgavethe SunshineTaskForceatask. MayorJohnsonstatedtheSunshineTaskForceChairhasexpressedthatshedoesnot feelitisappropriatetosendthemattertotheTaskForce. CouncilmemberTamstatedCouncilwouldhavetheultimateauthoritytopassthe ordinance;thatshepolledtheTaskForcetogetanunderstandingonwhetherthe assignmentwasacceptabletotheTaskForce;themajorityfeltthattheTaskForce wouldtakedirectionfromCouncil;theTaskForcewouldhelpfacilitateaforum if CouncilwantedtheTaskForcetoreviewthematter;thatshedoesnotseethatthe SunshineTaskForceisunwillingtoaccepttheassignment. MayorJohnsonstatedCouncilmemberTampollingtheSunshineTaskForcemightbea violationoftheBrownActsincethematterisonthenextSunshineTaskForceagenda; pollinganddevelopingaconsensusofthemajorityoftheTaskForceisaviolationof theBrownAct. CouncilmemberTamrequestedanexplanationoftheviolation. MayorJohnsonstateddevelopingaconsensusofTaskForcemembersonanissue thatwouldbeonthenextagenda. CouncilmemberTamstatedthatsheaskedanopinionofthreemembers,twoofwhich areontheTaskForceandoneisthefacilitator;thatshewouldlikeaCityAttorneyruling ifMayorJohnsonisaccusingherofaBrownActviolation. MayorJohnsonstatedthatshethinksCouncilisgoingbeyondtheintentofthereferral; theintentofthereferraliswhetherthemattershouldbebroughtbacktoCouncilto exploreanotheravenuetoreviewcampaignreform. CouncilmemberMatarresestatedthathedoesnotthinkthemattershouldbebrought backuntilCouncilhearsfromtheSunshineTaskForce;thathedoesnotwanttogoon hearsay;inquiredwhethertheissueisoutinthepublic. TheCityClerkrespondedafterthelastmeeting,theSunshineTaskForcedecidedto callaSpecialMeetingonJune 14th;theChaira~reedtocallthemeeting;now,theTask ForcewillbehavinganothermeetingonJuly 141,priortotheJuly1yth meeting. CouncilmemberMatarreseinquiredwhetherthematterwouldbediscussiononJuly 14th. TheDeputyCityManager-AdministrativeServicesrespondedtheJuly 14th meetingis SpecialJointMeeting AlamedaCityCouncil,AlamedaPublic FinancingAuthority,AlamedaRuse andRedevelopmentAuthority,and CommunityImprovementCommission June 24,2010 fororganizationalpurposes. TheCityClerkstatedtheitemcouldbeaddedtotheagenda. CouncilmemberMatarresestatedthathewantstohearbackfromtheSunshineTask Forcewitharecommendation. TheInterimCityManagerinquiredwhoplacesitemsontheagenda. TheDeputyCityManager-AdministrativeServicesrespondedstaffplacedmatterson theagendaatfirst;statednow,staffconsultswiththeChairtoplaceitemsonthe agenda. ViceMayordeHaanstatedCouncilneedstoexplainwhatitwantsandbespecificabout thechangeindirection;Councilcanchoosetodiscusstheissue;thetimelineshouldbe putaside;feedbackisneededfromthepublicwhetherataCouncilmeetingorSunshine TaskForcemeeting;themattershouldbebroughtbackfordiscussionandfinalization andthenfigureoutwhentheordinancewouldgointoeffect;thathethinksaccepting morethan$250isunfair. MayorJohnsonstatedthereisnoreasonnottocontinuetoworkinadiligentmannerto getthejobdone;Councilcanchoosetoimplementtheordinancewhenitchooses. CouncilmemberGilmorestatedthatsheunderstandsCounciltoldtheSunshineTask Forcethatthemattercouldbebroughtbackatanytime,buttheordinancewouldnotbe effectiveuntilatleastJanuary1st. MayorJohnsonstatedthatshedoesnotrecallsaiddirection;thatshethinksthe directionwastobringthematterbacknosoonerthanJanuary1st;thefactswillbe checked. ViceMayordeHaanstatedthatherecallsthatCouncilwouldnotconsiderthematter untilJanuary. TheCityClerkstatedthemotionwastoextendtheperiodforpubliccomment,including reviewbytheSunshineTaskForceandLeagueofWomenVotersandthatthe ordinancenotbeeffectiveuntil2011. ViceMayordeHaanstatedtheissueiswhetherCouncilwantstotasktheTaskForceto goforward;Council'sobligationistospelloutwhattheSunshineTaskForceshoulddo. CouncilmemberMatarresestatedCouncil'sobligationiswhethertoreconsiderthevote takenlasttime;thathisanswerisno;hewantstohearbackfromtheSunshineTask Force;directioncanbegiveniffeedbackwarrantsreconsideringthevote. SpecialJointMeeting AlamedaCityCouncil,AlamedaPublic FinancingAuthority,AlamedaRuse andRedevelopmentAuthority,and CommunityImprovementCommission June24.2010 11 MayorJohnsonstatedconsensusistoleavedirectionasis;thatsheisnotsurehowto getfeedbackfromtheSunshineTaskForce. Ms.LipowinquiredwhetherCouncilwantstheTaskForcetousetheten-pageon-line document,towhichCouncilmemberGilmorerespondedthedocumentwouldbeastart. ADJOURNMENT Therebeingnofurtherbusiness,Mayor/ChairJohnsonadjournedthemeetingat10:26 p.m. Respectfullysubmitted, LaraWeisiger,~ Secretary,APFA,CIC TheagendaforthismeetingwaspostedinaccordancewiththeBrownAct. SpecialJointMeeting AlamedaCityCouncil,AlamedaPublic FinancingAuthority,AlamedaRuse andRedevelopmentAuthority,and CommunityImprovementCommission June24,2010