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.
MINUTES
(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;
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the City is offering less than inflation and asking for
takeaways; the cost for the average Alameda house has increased
by 31%; gas has increased 152%; 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,
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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
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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
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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.
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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 (PSBA).
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 PSBA
was funded last year; PSBA’s grant was not increased; there is
some room for an increase to PSBA.
Mayor/Chair Johnson inquired what increase could be given to
PSBA, to which the Development Services Director responded 10%
to 15%.
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 10%, 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
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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 PSBA 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 38%; 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.
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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 15% of the
reserves have dropped in the last five years; negative flows
could occur two years out.
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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 50% 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
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the ROI reduction is the reason that the franchise and in-lieu
fees are down 11%, 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
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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.
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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 the work could not be
contracted out.
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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;
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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.
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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.
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