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1995-02-01 ARRA Minutes MINUTES OF THE REGULAR MEETING OF THE ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY Wednesday, February 1, 1995 5:30 p.m. The meeting convened at 7:45 p.m. with Chair Ralph Appezzato presiding. I. ROLL CALL: Present: Mayor Ralph Appezzato, City of Alameda; Councilman "Lil" Arnerich, City of Alameda; Mayor Ellen Corbett, City of San Leandro, Councilmember Albert DeWitt, City of Alameda; Wilma Chan, Alameda County Board of Supervisors, District 3; Councilmember Karin Lucas, City of Alameda; Vice-Mayor Charles Mannix, City of Alameda; Vice-Chair Sandré Swanson, District Director, 9th Congressional District; Alternate Roberta Brooks, Senior Staff Member, 9th Congressional District; Ex-officio Member Lee Perez, Chair, Base Reuse Advisory Group; Absent: Ex-officio Member, Gail Greely, Alameda Unified School District; Councilmember Dezie Woods-Jones, City of Oakland. (Vice-Chair Swanson arrived at 6:05 p.m.) A. Approval of Minutes - Regular Meeting of January 4, 1995 The Secretary notes a correction in the minutes, Item I, Roll Call, "Councilmember" Appezzato should read "Mayor" Appezzato. Councilmember Lucas moved approval of the corrected minutes. The motion was seconded by Councilmember DeWitt, and carried by unanimous voice vote. II. AGENDA ITEMS: A. Approval of a Resolution of Appreciation for the Former Chair of the Alameda Reuse and Redevelopment Authority, E. William Withrow, Jr. Vice-Mayor Mannix moved and Councilmember DeWitt seconded a motion to approve the Resolution of Appreciation. The motion was passed by a unanimous voice vote. After reading the Resolution of Appreciation for Mr. Withrow, several of the Reuse Authority Members expressed their appreciation to Mr. Withrow. III. ORAL REPORTS (taken out of order) A. Oral Report/Presentation from the Interim Executive Director Regarding the State Lands Issue and How It Affects Property at Alameda Naval Air Station. Mr. Robert Height of the State Lands Commission gave a presentation on the state lands issue and how it affects property at Alameda Naval Air Station. II. AGENDA ITEMS B. Designation by Authority Members of His/Her Alternate: The following alternates were appointed: For Authority Member Arnerich: Mr. Tony Daysog; For Authority Member DeWitt: Mr. Doug deHaan; For Authority Member Mannix: Beverly Follrath-Johnson; For Authority Member Appezzato: Mr. Lee Perez. Alternates for remaining Authority Members remain the same per the updated roster. C. Report from the City of Alameda Planning Director for the HAB and BRAG Recommendation to Approve the Report on the Conservation of Architectural and Historical Resources and Historical Artifacts at Naval Air Station, Alameda and Recommendation of Postponement of a Decision on the Approach to Conservation In Order to Coordinate the Determination with the Final Community Reuse Plan. Speakers: The following speakers expressed their concerns regarding the potential loss of historical artifacts from NAS Alameda: Naomi Hatkin representing the Historical Advisory Board; Dave Plummer representing the Historical Advisory Board; Marilyn York representing the Historical Advisory Board; and Barbara Baack representing the Historical Advisory Board. Councilmember Lucas reported that she had a petition from the National Association of Retired Federal Employees (NARFE) Alameda Chapter 1272 requesting that the district and artifacts be preserved. She added that there are two issues: 1) the district which includes buildings and, in agreement with staff, is a long term project with no emergency need to act immediately; 2) historical artifacts. She then requested that at the next ARRA meeting, the item be agendized, a staff report be prepared as to exactly what is being done to preserve the artifacts. Councilmember Lucas moved that the ARRA accept the recommendation of Item #1 of the staff report, and Item #2 of the staff report be reagendized for the next meeting of the ARRA with staff in the interim working on the problem of preserving the artifacts from NAS Alameda. The motion was seconded by Councilman Arnerich, and passed by a unanimous voice vote. D. Report from the Interim Executive Director Recommending Approval of the Establishment of a Three Month Timeframe for Screening Homeless Applications and Acknowledgement of the Alameda County Homeless Providers Base Conversion Collaborative as the Entity that the Alameda Reuse and Redevelopment Authority Shall Work With During the Homeless Screening Process as Required in the Base Closure Community Redevelopment and Homeless Assistance Act of 1994. After a report from the Interim Executive Director Mr. Louk and comments from speakers, Mayor Corbett moved and Roberta Brooks (Alternate for Mr. Swanson) seconded a motion to support the recommendation of staff to recognize the collaborative as the entity for the ARRA to work with per the Base Closure Community Redevelopment and Homeless Assistance Act of 1994 which, as requested by Alternate Roberta Brooks, essentially is the same group of homeless providers the ARRA staff has worked with the past few months under the old McKinney process. The motion was passed by a unanimous voice vote. Speakers: The following speakers expressed their support of the recommendation of the staff regarding the Alameda County Homeless Providers Base Conversion Collaborative: Alex R. McElree of the Homeless Collaborative, Elaine deColigny of the San Leandro Shelter and Homeless Collaborate, and Mr. Tony Daysog, resident of the City of Alameda. E. Report from the Chair of the Base Reuse Advisory Group (BRAG) Recommending the Alameda Reuse and Redevelopment Authority Adopt as Its Vision Statement for the Naval Air Station (NAS) Alameda the Community Vision Statement Prepared by the BRAG. After a presentation by Chair Lee Perez, a motion was made by Councilman Arnerich and seconded by Councilmember DeWitt. The motion was passed by a unanimous voice vote. F. Report from the Interim Executive Director Regarding Change of Meeting Date for the July Meeting of the ARRA. A motion was made by Vice-Mayor Mannix and seconded by Chair Appezzato to change the July meeting date of the ARRA to Wednesday, June 28, 1995. The motion was passed by a unanimous voice vote. III. ORAL REPORTS B. Oral Report from the Interim Executive Director Regarding the Status of the Recruitment of an Executive Director. Dave Louk, Interim Executive Director, reported that the City Manager had indicated to him that through an advertising and selection process, 3 candidates were narrowed down to three individuals, with negotiations arising from one of the candidates. This candidate chose to stay in their present position and presently the City Manager is reexamining some of the other candidates which were not in the final selection. A report will follow at the next ARRA meeting. C. Oral Report from the Interim Executive Director Updating the Reuse Authority on Reuse Authority Staff Activities. Mr. Louk reported on the following items: the sewer line increase in size from 16" to 22"; NADEP computer distribution; closing of 1993-94 grant, and AEG Leasing. D. Oral Report from the Interim Executive Director Regarding the Next Agenda for the Alameda Reuse and Redevelopment Authority. Mr. Louk reported that the following items would be on the next ARRA meeting agenda: Preservation of Historical Artifacts; Update on Recruitment of Executive Director; Update on Homeless Collaborative; and an oral report from BRAG. IV. ORAL COMMUNICATIONS The Chair of the Base Reuse Advisory Group (BRAG) gave a report on current BRAG activities. V. COMMUNICATIONS FROM GOVERNING BODY VI. ADJOURNMENT The meeting was adjourned by Chair Appezzato at 8:15 p.m. Respectfully submitted, Elizabeth Brydon Secretary 4 Unapproved MINUTES OF THE SPECIAL MEETING OF THE ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY Wednesday, February 1, 1995 6:00 p.m. I. ROLL CALL: Present: Mayor Ralph Appezzato, City of Alameda; Councilman "Lil" Arnerich, City of Alameda; Mayor Ellen Corbett, City of San Leandro, Councilmember Albert DeWitt, City of Alameda; Wilma Chan, Alameda County Board of Supervisors, District 3; Councilmember Karin Lucas, City of Alameda; Councilmember Charles Mannix, City of Alameda; Vice-Chair Sandré Swanson, District Director, 9th Congressional District; Alternate Roberta Brooks, Senior Staff Member, 9th Congressional District; Ex-officio Member Lee Perez, Chair, Base Reuse Advisory Group; Absent: Ex-officio Member, Gail Greely, Alameda Unified School District; Councilmember Dezie Woods-Jones, City of Oakland. (Vice-Chair Swanson arrived at 6:05 p.m.) II. AGENDA ITEMS: A. Report (and action, if necessary) Regarding the Status of Benefits to the Staff of the Alameda Reuse and Redevelopment Authority. Interim Executive Director reported that the benefits for the Base Conversion/ARRA Staff are authorized at a rate of 30% by OEA. This authorization for 30% benefits was offered to the employees in a cafeteria style benefits plan. Because of the closing of the OEA grant through the EBCRC for fiscal year 1993-94, it is necessary to resolve the issue of benefits immediately. Per the benefits package outlined by the Personnel Department and the calculations of benefits received, it was noted that the ARRA staff members were not able to collect their full 30% in benefits. Mr. Louk added that a similar resolution was reached by the employees of the EBCRC and their fiscal agent, Alameda County, resulting in a cash pay-out to employees of benefits not available for collection due to local practices. Mr. Louk stated that the monies to cover the 30% benefits were available through the OEA/ARRA approved budget, resulting in no expense to the City of Alameda. The Personnel Director from the City of Alameda, Elizebeth Kingsley, stated that she would like to add a different perspective on the issue. She stated that 5 the staff of the ARRA began to be hired in the Fall of 1993. At the time the staff was hired, two things happened: (1) early on staff didn't want to have benefits in the normal sense of the word because of their individual circumstances (i.e.,a retiree from the military having health benefits from other sources, etc.) instead, they wanted salary to be maximized. When the City classified the positions, did the recruitments, and set the salaries, that was taken into consideration when compared to like positions in the City. (2) As the small group of individuals (5 ARRA staff positions) are funded from two different sources with different sets of rules, (i.e., federal government, the County of Alameda and the City of Alameda) trying to balance all the rules created a two headed animal. She stated that she felt now that the staff has reconsidered their positions, and that they would like to be more on a "basic" approach with benefits similar and/or equal to the City. She stated that she would be willing to do this. She added that she had not been informed of this request until late the previous day, and recommended to the Authority that she be requested to report back to the Authority with options or other alternatives of providing benefits to the staff. Chair Appezzato stated that he liked this idea, and requested Mrs. Kingsley come back to the Authority after meeting with staff and developing various options. Vice-Chair Swanson stated that one of the reasons that he raised this issue some time ago was that these programs' budgets, (i.e. the work the staff of the EBCRC and ARRA is doing), call for 30% in a benefits package, and that he is very concerned that people who are working in projects which have a projected end-date receive the maximum amount of benefits. Since these funds would go back to the federal government if unused, there is no rational reason, if it was not inconsistent with local practice, for an employee to receive the full value of their benefit package. It was the thing to do given the work load, and everyone has to admit, that this small group of people are doing a tremendous amount of work. With the EBCRC, as they ended the grant year, there were unused benefits and as it was permissible, they cashed out, which is Option #2 on the staff Report to the Authority; "All or a portion of the unused benefit monies could be made available to the employee through deferred comp and/or cash payment". The EBCRC chose a cash payment with its unused benefit funds. He stated that he felt that there wasn't any advantage to not try and provide the full package. Because of the closing date of the grant, Vice-Chair Swanson recommended that for this first grant cycle, that the remaining benefit values be cashed out, and then have the Personnel Department and the staff look at the next funding cycle to see if there are any adjustments that need to be made for the next fiscal year. He concluded by stating that it is appropriate for the Authority to determine what the permanent relationship might be with the staff of the ARRA, whether it is this solution (cash-out) or another combination of benefits for future budgets. He stated that he felt the cash out option is the best: giving the staff at least the opportunity to invest that money in a retirement fund; would speak to the principle of 30% staff receiving the full benefits; and would not be any additional cost to the program. In summary, he recommended that for the first grant period, the Authority vote for Option #2 6 (cash out), and then staff and the Personnel Department can meet to develop the most agreeable approach for the next grant fiscal year. Mr. Louk reported that the first grant period ended October 31, 1994, and that it was in the process of being closed so that this item needed to be acted on immediately. He stated that there would be no expense to the City of Alameda, and added that all benefits are provided by the grant from the Office of Economic Adjustment. Councilman Arnerich asked Mrs. Kingsley to verify the fact that when the staff was hired, that several or all of them, opted to not take benefits, because of their particular situation. Mrs. Kingsley agreed that was true. He asked whether, as a result of that, instead of taking the benefits to pay for medical that they were getting somewhere else, more money was added into their salary. Mrs. Kingsley stated that salaries were higher than they might have had, had they been hired in the same position in the City. Councilman Arnerich then stated that he supported the recommendation that the issue be brought back to the ARRA for further discussions. Vice-Chair Swanson stated that there are two amounts of money for staff members: one does not affect the other and the benefit package is the benefit package. Interim Executive Director Dave Louk stated that the positions for the two employees on the bottom of the Benefit Balance Sheet do not get any paid vacation or holidays as their salaries when hired were more than the money the EBCRC had allocated for these positions so benefit money was used to pay the difference in their salaries. The part of the ARRA funds which would cover these expenses is listed on the sheet. For the staff members on the top of the sheet, for example, himself, when hired the office had not yet been approved for funding by the Office of Economic Adjustment, and when hired staff was being told by the Personnel Department, "You are a temporary employee, you don't come under City benefit packages". He in turn negotiated a salary with Don Parker, which was obviously approved by the City Manager and Personnel Director. He understood that, at that time, there were no benefits. Subsequently, when OEA granted funds to the ARRA, OEA designated the amounts that certain positions would be funded at, and on top of that, there was a 30% benefit package afforded to these positions. These funds all come from the OEA grant. In summary, he stated that OEA has authorized the 30% benefit package (based on the ceiling amount allowable for each position), the staff does not currently get this total value amount, and if it is not used for benefits, it will revert back to the Office of Economic Adjustment. He added that these positions are not permanent full time civil service positions and there is no tenure for the ARRA staff positions. Personnel Director Elizebeth Kingsley stated that she felt there was an honest misunderstanding, and that possibly the manner in which to deal with the problem was to proceed with the suggestion made for the grant year being closed (1993-94), and then come up with a very clear-cut understanding for the 7 current fiscal year. She recommended to the Authority that the grant period currently concluded be cleared up and paid out for the one year (Option #2), then bring back to the Authority the proposal for the current budget. Vice-Chair Swanson moved that the Authority accept Option #2, "All or a portion of the unused benefit monies could be made available to the employee through a cash payment", for the first concluding fiscal year and for the next fiscal year, staff and the Personnel Department negotiate how the total 30% benefit package will be distributed for the current fiscal year. He added that part of the problem is growing pains as new staff transition in, and felt that this solution was the best, so that the monies will not be sent back to the federal government. The motion was seconded by Councilmember DeWitt and carried by a unanimous voice vote. Councilmember Mannix stated that he hoped, that in the future, these types of discussions occur initially with the hiring authority rather than be brought to a public meeting. B. Report from the Chair Requesting Authorization from the ARRA to Communicate with the Assistant Secretary of Defense for Economic Security Requesting Consideration of the Development of a Federal Loan Program to be Utilized for the Implementation of the NAS Alameda Final Community Reuse Plan. After a report by Chair Appezzato regarding the Mayor's Conference in Washington, D.C. regarding a federal loan program for base closure and requested that the title of the action be amended to read communicate with the "President of the United States" rather than "Assistant Secretary of Defense for Economic Security". A motion was made by Mayor Corbett to accept the recommendation to communicate with the President. The motion was seconded by Councilmember DeWitt and carried by a unanimous voice vote. III. ORAL COMMUNICATIONS, NON-AGENDA (PUBLIC COMMENT) (Any person may address the Governing Body in regard to any matter over which the Governing Body has jurisdiction or of which it may take cognizance, that is not on the agenda.) There were no speakers for this item. IV. COMMUNICATIONS FROM GOVERNING BODY: There were no communications from the Governing Body. V. ADJOURNMENT: The meeting was adjourned at 8:45 p.m. Respectfully submitted, 8 Elizabeth Brydon Secretary 9