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2009-05-05 Regular CC MinutesMINUTES OF THE REGULAR CITY COUNCIL MEETING TUESDAY- -MAY 5, 2009- -7:30 P.M. Mayor Johnson convened the Regular Meeting at 7:40 p.m. Councilmember Tam led the Pledge of Allegiance. ROLL CALL - Present: Councilmembers deHaan, Gilmore, Matarrese, Tam, and Mayor Johnson - 5. Absent: None. AGENDA CHANGES Mayor Johnson announced that the Resolution of Appointment [paragraph no. 09 -1691 would be heard first. REGULAR AGENDA ITEM (09 -169) Resolution No. 14226, "Appointing McCaulay J. Singer - Milnes as a Member of the Youth Advisory Commission." Adopted. Councilmember Matarrese moved adoption of the resolution. Councilmember Tam seconded the motion, which carried by unanimous voice vote - 5. Judge Delbert Gee administered the Oath and presented the certificate of appointment to Ms. Singer - Milnes. Ms. Singer - Milnes thanked Council for the opportunity to serve. PROCLAMATIONS, SPECIAL ORDERS OF THE DAY AND ANNOUNCEMENTS (09 -170) Proclamation declaring the month of May as Older Americans Month. Mayor Johnson read and presented the proclamation to Joy Pratt, Mastick Senior Center Advisory Board Member, and Miriam Schiffman with Area Agency on Aging's Commission on Aging. Ms. Pratt thanked Council for the proclamation. Ms. Schiffman stated the Commission helps Alameda's aging population become as independent as possible. Mayor Johnson stated that she is proud of the Mastick Senior Center; the Center is one of the bright stars in the community. Regular Meeting Alameda City Council 1 May 5, 2009 (09 -171) Proclamation declaring May 10 through 16, 2009 as National Police Week. Mayor Johnson read and presented the proclamation to Chief Tibbet and Lieutenant Boersma. Chief Tibbet thanked Council for the proclamation; stated this week provides an opportunity to recognize the spirit, service, dedication, and character of Police Departments across the nation. (09 -172) Proclamation declaring May 14, 2009 as Alameda Bike to Work Day. Mayor Johnson read and presented the proclamation to Joyce Mercado, Bike Alameda Board Member. Ms. Mercado thanked Council for the proclamation; stated Bike Alameda appreciates the on- going, strong partnership with the City in making Alameda a bicycle friendly town. (09 -173) Presentation by the West Alameda Business Association on summer events and Farmer's Market. Kathy Moehring, West Alameda Business Association, submitted a handout; stated the Farmer's Market is moving to Webster Street and Haight Avenue; the Tuesday morning market will continue; a Saturday morning market will replace the Thursday night market; the Grand Opening will be on May 16, 2009 at 9:00 a.m.; an additional concert has been added at Crab Cove; the first classical concert will be held this Friday from 5:30 p.m. to 7:30 p.m. CONSENT CALENDAR Mayor Johnson announced that the recommendation to approve reopening the Mif Albright Course [paragraph no. 09 -1791 was pulled from the Consent Calendar for discussion. Councilmember Matarrese moved approval of the remainder of the Consent Calendar. Councilmember Tam seconded the motion, which carried by unanimous voice vote - 5. [Items so enacted or adopted are indicated by an asterisk preceding the paragraph number.] ( *09 -174) Minutes of the Regular and Special City Council Meetings held on April 21, 2009. Approved. Regular Meeting Alameda City Council 2 May 5, 2009 ( *09 -175) Ratified bills in the amount of $4,709,242.68. ( *09 -176) Recommendation to authorize Call for Bids for Legal Advertising for Fiscal Year ending June 30, 2010. Accepted. ( *09 -177) Recommendation to award a Contract in the amount of $495,000 to Harris & Associates for Construction Management Services for the Webster Street /Wilver "Willie" Stargell Avenue Intersection Project, No. P. W. 10- 08 -26. Accepted. ( *09 -178) Recommendation to award a Contract in the amount of $145,670, to Bellecci and Associates for Engineering Construction Support for the Webster Street /Wilver "Willie" Stargell Avenue Intersection Project, No. P.W. 10- 08 -26. Accepted. (09 -179) Recommendation to approve reopening the Mif Albright Course and authorize the expenditure of $50,000 in associated expense from the Golf Budget. Speakers: James Leach, Alameda; Sherry Sherman, Alameda; Norma Arnerich, Alameda; Rita Albright- Scott, Alameda. Vice Mayor deHaan moved approval of the staff recommendation. Councilmember Matarrese seconded the motion, which carried by unanimous voice vote - 5. ( *09 -180) Resolution No Alameda Countywide Adopted. 14327, "Endorsing EveryOne Home, the Homeless and Special Needs Housing Plan." CITY MANAGER COMMUNICATIONS (09 -181) Status Report on Neighborhood Library Improvement Projects The Library Director gave a presentation. Mayor Johnson inquired when construction would start for the second branch library, to which the Library Director responded July or August 2010. Mayor Johnson inquired whether bids would go out now, to which the Library Director responded bids would go out at the same time for both branches. Councilmember Tam inquired whether the West End and Bay Farm Island library usage remained the same after the Main Library re- opened. Regular Meeting Alameda City Council 3 May 5, 2009 The Library Director responded initially usage dipped because everyone wanted to see the new Main Library; stated usage is beginning to increase; people use the Main Library as a place to search for materials and then have materials delivered to the branch libraries; families, teenagers, and seniors tend to use branch libraries more; the Neighborhood Library Report recommends refocusing branch libraries to serve people who do not have transportation or ability to get to the Main Library; the intent is to double the number of computers and increase seating at both locations. Councilmember Matarrese inquired whether modifying the Agreement with the School District has been considered; stated Washington Elementary School is across the street from the West End library; that he is hoping to use the two facilities in concert. The Library Director responded the City does not have a reciprocal use; however, Washington Elementary classes are at the West End library almost every morning; the Joint Use Agreement allows sharing database information; purchases are coordinated. Councilmember Matarrese inquired whether the team reviewed creative ways to use the two facilities [West End branch and Washington School] together any creative uses have been reviewed for the two facilities, to which the Library Director responded the issue will be reviewed. (09 -182) Update on the CodeRED Emergency Notification System The Police Captain gave a Power Point presentation. Councilmember Gilmore stated people could not use cell phones or landlines within the City or State when the Loma Prieta earthquake occurred; inquired whether the same situation would happen with the CodeRED system, to which the Police Captain responded that he would find out. Mayor Johnson stated the system seems goods; the School District uses the system; inquired whether the system could be used in the event of tube closings. The Police Captain responded in the affirmative; stated the system has many different uses. Vice Mayor deHaan inquired whether the existing system would be replaced, to which the Police Captain responded in the affirmative. Vice Mayor deHaan inquired how many notifications could be Regular Meeting Alameda City Council 4 May 5, 2009 transmitted within 87,500 minutes, to which the Police Captain responded 175,000 thirty- second messages. Councilmember Matarrese inquired whether Oakland would need to access Alameda's code if there was a problem in the tube. The Police Captain responded in the negative; stated the mapping system is only for Alameda; residents could be notified if Oakland notified Alameda of problems. Councilmember Tam inquired whether the system already has 400 -500 of the City's phone numbers. The Police Captain responded in the affirmative; stated the vendor would build onto the database; the hope is to reach 1000. Councilmember Tam inquired how long it would take to reach 1000. The Police Captain responded the vendor could have the system up and running within three to four weeks. Councilmember Tam inquired what would be the cost of the system, to which the Police Captain responded $22,500 per year. Councilmember Tam inquired how much money is in the Impact Fee fund. The Interim City Manager responded approximately $55,000; stated $18,000 to $22,000 is generated per year. Councilmember Tam inquired whether the money could not be used for anything else, to which the Interim City Manager responded in the affirmative. Councilmember Matarrese stated the system seems like a good replacement; a physical protocol takes advantage of the City's Citizen Emergency Response Team (CERT) ; that he wants to ensure there is protection that CodeRED would not sell the list to someone else; having recourse is important in case the system is misused; encryption and security are necessary. Mayor Johnson stated people need to have a clear understanding of what to do when a call is received; an evacuation plan should be completed and posted to the website. (09 -183) SunCal Traffic Scope of Work The Redevelopment Manager and Public Works Director gave a Power Regular Meeting Alameda City Council 5 May 5, 2009 Point presentation. (09 -184) Financial "State of the City" The Interim City Manager gave a Power Point presentation. Vice Mayor deHaan stated the Planning and Building fund increased immensely in 2004; the fund decreased when the economy dropped. The Interim City Manager stated a lot of money is paid up front during the entitlement and permit process; the work continues for a long period thereafter; the key is to ensure that there is enough core staff to continue the work while being frosty on managing cash. Vice Mayor deHaan stated the lagging factor could get worse. The Interim City Manager stated the matter would be addressed in the Fiscal Year 2009 -2010 budget. Councilmember Tam stated that she needs clarification on management's discretion to transfer amongst funds; inquired whether Alameda Municipal Power (AMP) paid more subsidy since Golf was not contributing. The Interim City Manager responded in the negative; stated money generated by enterprise funds stays within the fund; assessments are made against the funds in a variety of ways; budget policies dictate how much to charge enterprise funds for the cost of supporting the corporate whole; Council discussed reducing the Return on Investment (ROI) for a short period of time for AMP and Golf, which requires the ordinance to be amended; that she needs to have a clear understanding of how to proceed in the future and to determine how to reconcile the issue for prior years; only Council has the authority to move money between funds. Councilmember Tam stated Planning and Building reserves accumulated in Fiscal Years 2005, 2006, 2007 because revenues exceeded expenses; inquired whether accumulated funds could be used for a smoothing effect, to which the Interim City Manager responded in the affirmative. Councilmember Tam stated there seems to be some discretionary earmarks within funds; Council discussed potentially retrofitting the Carnegie Building; $400,000 is held in reserve for a fire station. The Interim City Manager stated $400,000 in cash money is held in Regular Meeting Alameda City Council 6 May 5, 2009 the General Fund reserve; approximately $900,000 in community planning fee funds were transferred into the Capital Improvement Project fund for the Carnegie Building; Council action would be required to undo prior decisions. Councilmember Tam inquired who has the flexibility and discretion to move funds that are earmarked for specific purposes; stated for example, Council chose to charge the Golf ROI in order to fund fire fighter operations for a short period of time. The Interim City Manager responded the Council has to determine whether or not to reduce a fee or give a credit back; stated the Council has to decide whether to use cash in the fund balance; after the Council has made a decision to earmark funds, only the Council can decided to reverse the earmark; said actions cannot be done administratively. Mayor Johnson stated a decision was made not to reduce the [Golf] transfer so that the General Fund would not be reduced right then. Councilmember Gilmore stated Council was waiting to see the outcome of Measure P. Councilmember Tam stated the Comprehensive Annual Financial Report (CAFR) gives the impression that the City has a fund balance that allows some flexibility to deal with austere times; however, the Interim City Manager is suggesting the opposite because the cash balance is a subset of the fund balance. The Interim City Manager stated that she is suggesting that the $16 million is not liquid cash but is money due to the General Fund from a variety of sources; $6.8 million is real cash in the General Fund; the only flexibility in the General Fund is $400,000 which is true cash set aside for a fire station; cash and fund balance are two different things. Councilmember Gilmore stated Council discussed the uncertainty of the State; the City would need to live off true cash in order to pay the City's obligations going forward if the State does not pay the City; inquired what would be the City's burn rate if the City would have to pay the State's IOUs. The Interim City Manager responded the burn rate for 90 days would be $12 million; stated the CAFR is an accounting document and is not in layman's language; there is a huge misunderstanding of what is in the fund balance. Councilmember Matarrese stated exceptions need to be taken to Regular Meeting Alameda City Council 7 May 5, 2009 accounting rules or footnotes are needed; Council is not looking for flexibility, but discipline and tightening; the false statement being made does not work. The Interim City Manager stated CAFR rules are beyond staff's control; however, staff has control over narratives and footnotes. Councilmember Tam stated Council's adopted policy of having a 200- 25% fund balance is meaningless. The Interim City Manager stated the fund balance was defined in an uncomfortable way when the policy was approved; next year's projected revenue and expenses are approximately $67 million to $68 million; 100 percent is $6.7 million; that she would not recommend [the General Fund reserve] going below 100. Vice Mayor deHaan stated the 250 level was set by Council; inquired what is the level for other cities, to which the Interim City Manager responded a 50 -100 minimum is the general rule. Vice Mayor deHaan stated the trend has been a 500 reduction in the last four years; the line is constant; inquired whether something different should have been done. The Interim City Manager responded the question is what needs to be done moving forward. Vice Mayor deHaan stated the trend indicates that something different should have been done. The Interim City Manager stated some cities still have revenues exceeding expenses; Alameda does not fall into said category; the fund balance had been used in prior years. Vice Mayor deHaan stated Planning and Building expenditures have increased by 300 and revenues have decreased by 300. The Interim City Manager stated approximately $900,000 is available in community planning fees within the Capital Improvement Project budget; prior Council action earmarked the money for the Carnegie Building. Vice Mayor deHaan stated the trends are disastrous; fees continually increased over the last four years. The Interim City Manager stated the intent is to give Council an insight into the financial state of funds so that there is an understanding going forward. Regular Meeting Alameda City Council 8 May 5, 2009 Mayor Johnson inquired whether the Planning and Building Department's substantial decrease in revenues started last June. The Interim City Manager responded a noticeable decline in revenue occurred last Fiscal Year. Mayor Johnson inquired whether anything has been done to correct the problem. The Interim City Manager responded everyone understands that a reduction in force is necessary in order to make funds work. Mayor Johnson stated expenses have been more than revenues; Council needs to know what policies need to be put into place to ensure that the situation is corrected. The Interim City Manager stated the goal is to ensure that there is no misunderstanding as to what money is available; this year's budget would be significantly different; Council will need to decide whether to accept management's recommendations regarding programs, services, and fund balances; cash management will be very critical. Mayor Johnson stated Council thought that a balanced budget was adopted; the budget was not balanced because of unapparent deficits. The Interim City Manager stated a balanced budget means that all funds are balanced; equal attention needs to be given to special revenue and enterprise funds. Councilmember Matarrese stated that he appreciates what the Interim City Manager has done; accounting practices and jargon is working against the City; real dollars need to be reviewed; that he would like the Interim City Manager to provide recommendations regarding AMP, Golf, and the Sewer Fund; AMP is a monopoly and Golf is discretionary; Golf may not be able to take the to ROI burden; AMP could probably afford it; the Sewer Fund is not an enterprise fund but is a public system; money was borrowed from the Sewer Fund; that he would like management to come back to Council with a proposed ordinance change; AMP should be looked at differently from Golf. The Interim City Manager stated AMP is budgeting for a to ROI moving forward; the AMP General Manager stated that AMP would be able to pay back the reduction over the next two years; the Golf situation is a policy call. Regular Meeting Alameda City Council 9 May 5, 2009 Councilmember Matarrese stated that Golf is in competition with other Golf Courses and is much different than AMP. Councilmember Gilmore stated the Golf Course has changed from a City run entity to having a contractor; Council needs to determine what should be done with the Golf Course long term before making a decision. The Interim City Manager stated discussions should be on a parallel track regarding a private operator versus a management contract; that she needs direction regarding an ordinance amendment to the ROI. Mayor Johnson inquired whether AMP is prepared to pay the to ROI retroactively. The Interim City Manager responded AMP put the full to ROI in the next budget and will discuss recovering the past amount due over twenty -four months. Mayor Johnson stated Golf is in a different situation; Council could forgive the ROI retroactively; the Interim City Manager should bring back information to Council regarding moving forward. The Interim City Manager stated the two enterprises should be considered separately. Mayor Johnson stated the Golf Course issue is different now; knowing what to do retroactively seems clear. Councilmember Tam inquired whether Golf would be charged the ROI and Payment in Lieu of Taxes (PILOT) even if operated by a private company. The Interim City Manager responded the issue would depend on how the deal is negotiated; stated the City would want to collect the PILOT because the asset would never be given away; the ROI would not be considered the same in a long -term contract; the amount of the ROI would be worked out through negotiations. Councilmember Tam stated that she concurs with Mayor Johnson regarding retroactively forgiving Golf. The Interim City Manager stated approval would need to come from Council in order to get the paperwork together to move forward with a new budget. Regular Meeting Alameda City Council 10 May 5, 2009 Councilmember Matarrese inquired whether the interim Golf Contract is up in July. The Interim City Manager responded the Contract is up in December; stated staff is moving along a parallel track for a long -term solution. Councilmember Matarrese stated that the [Power Point] charts are good; inquired whether the charts and a narrative could be posted on the website, to which the City Clerk responded in the affirmative. (09 -185) Public Hearing to consider adoption of the Fiscal Year 2009 -2010 Community Development Block Grant Action Plan and authorize the Interim City Manager to negotiate and execute related documents, agreements, and modifications. The Community Development Program Manager gave a Power Point presentation. Councilmember Tam stated funding shifted to Echo Housing and the Food Bank because the Red Cross Executive Director retired; inquired whether more funding could be secured because of the shift. The Community Development Program Manager responded staff is assisting the Food Bank in hiring a part -time Fundraiser; stated Echo Housing is a direct assistance program; the City funds a certain amount administratively. Councilmember Tam inquired how many soft story buildings would qualify for the 510 low- income occupancy criteria. The Community Development Program Manager responded that staff has not been able to identify an exact number; stated large properties located on the West side would most likely qualify. Proponents (In favor of the staff recommendation): Cyndy Wasko, Social Services Human Relations Board (SSHRB); Liz Varela, Building Futures with Women and Children; Cathy Nielson, SSHRB, Peter Simon, College of Alameda; Patricia Murillo; Ciana Presco; Doug Biggs, Alameda Point Collaborative; Paul Russell, Alameda Food Bank; Huong Le, Asian Health Services. Following Ms. Nielson's comments, Mayor Johnson inquired whether 6,000 Alameda residents have no medical and dental insurance. Ms. Nielson responded in the affirmative; stated most likely, the Regular Meeting Alameda City Council 1 1 May 5, 2009 figure will increase because of today's economy. Following Ms. Le's comments, Mayor Johnson stated Asian Health Services provides a valuable service to the community. Councilmember Gilmore moved approval of the staff recommendation. Councilmember Tam seconded the motion, which carried by unanimous voice vote - 5. (09 -186) Public Hearing to consider a recommendation to amend the Fiscal Year 2008 -2009 Community Development Block Grant Action Plan as required by the American Recovery and Reinvestment Act, and authorize the Interim City Manager to negotiate and execute related documents, agreements, and modifications. The Community Development Program Manager gave a Power Point presentation. Proponents (In favor of staff recommendation) : Cyndy Wasko, SSHRB; Liz Varela, Building Futures with Women and Children; Doug Biggs, Alameda Point Collaborative. Councilmember Matarrese moved approval of the staff recommendation. Councilmember Matarrese stated goals should be tracked so that the City does not wait until next year to see how things are going; people should know about the adoption of the substantial amendment to ensure that needed resources are received; staff should report back to the contributing agency on the success or recommended adjustments. Vice Mayor deHaan inquired what is the likelihood of funding coming to the City, to which the Community Development Program Manager responded funding is a done deal. Vice Mayor deHaan inquired whether the Boys and Girls Club and Littlejohn Park have separate funding. The Community Development Program Manager responded in the affirmative; stated both are identified as CDBG -R, which means that a project is shovel ready; CDBG -R Contracts need to be under contract within 120 days after approval from HUD. Vice Mayor deHaan seconded the motion, which carried by unanimous voice vote - 5. (09 -187) Recommendation to accept the Financial Report for the Regular Meeting Alameda City Council 12 May 5, 2009 Third Fiscal Quarter - January, February and March 2009. The Interim City Manager gave a brief presentation. Councilmember Matarrese inquired whether a line could be inserted between General Fund and Special Fund groups to reflect an accurate fund balance. The Interim City Manager responded the second column from the right shows the breakdown; continued with the presentation. Vice Mayor deHaan inquired whether the $5.6 million due from other funds is broken down. The Interim City Manager responded the chart does not show who owes the money. Vice Mayor deHaan stated that he continually asks about the $5.6 million. The Interim City Manager stated the $5.6 million includes three notes: 1) $2.1 million owed to the City from AMP; 2) $2.4 million due from the CIC; and 3) $1.2 million due from the ARRA. In response to Vice Mayor deHaan's inquiry about the CIC paying back $480,000, the Interim City Manager stated a five -year repayment schedule starts this year. Councilmember Matarrese inquired whether a breakdown of notes would be included in the next report, to which the Interim City Manager responded in the affirmative. Mayor Johnson stated the State is going to be in a very serious situation because local governments do not have money to contribute to the State. The Interim City Manager stated the State decides when to write repayment checks. Mayor Johnson stated in cities that do not have money in reserves, immediate cuts would need to be made if the State borrows money. The Interim City Manager stated not being in a cash rich position is very risky; cities need to reduce the cost of doing business. Vice Mayor deHaan stated the CIC budget shows a lot of red; money is being moved into the General Fund at the expense of having an unbalanced CIC budget. Regular Meeting Alameda City Council 13 May 5, 2009 The Interim City Manager stated the repayment schedule was established on what the CIC could do; many funds operate in the negative; the key is determining whether there is a negative or positive at the end of the day; April is the biggest revenue month for the General Fund; revenue and expense projections reflect what is on the books through April; the key is to look at the far right column which shows where the City will be at the end of the year; many funds have come down in fund balance and cash; continued with the presentation. Councilmember Matarrese thanked the Interim City Manager for the walk through; stated the sewer system is no different than the Library system; the sewer system is a functioning public health system. The Interim City Manager stated the sewer system is broken down by operational and infrastructure programs. Vice Mayor deHaan inquired whether assets have not been depreciated, to which the Interim City Manager responded in the affirmative. Councilmember Tam stated Alameda is in better shape than a lot of cities; inquired whether the City could call on the three notes and pay for some catastrophic event; further inquired whether the City is married to the five -year repayment schedule. The Interim City Manager responded the AMP note is not collectable at this time; stated the two agency notes are owed from two different funds. Councilmember Tam stated the State feels that it has a better legal standing to raid redevelopment funds; inquired whether the established formula would be less if the notes are repaid. The Interim City Manager responded the City would have less risk of having funds raided. Councilmember Tam stated a large amount of the $39 million CIC fund balance seems to be locked up. The Interim City Manager stated the $39 million is a subtotal of all special revenue funds; the CIC funds are part of the special revenue fund group; subtotaling would be provided next time. Councilmember Gilmore stated there have been discussions about cities that do not have redevelopment money having to dip into Regular Meeting Alameda City Council 14 May 5, 2009 General Fund to pay the State. The Interim City Manager stated the State might withhold gas tax and other distributions until cities have money to pay. Councilmember Tam stated redevelopment funds would not be repaid and would be a taking. Vice Mayor deHaan inquired whether the State has the ability to defer paying, to which the City Manager responded in the affirmative. Councilmember Tam moved approval of the staff recommendation. Vice Mayor deHaan seconded the motion, which carried by unanimous voice vote - 5. ORAL COMMUNICATIONS, NON- AGENDA None. COUNCIL REFERRALS None. COUNCIL COMMUNICATIONS (09 -188) Councilmember Gilmore stated she attended the Association of Bay Area Governments meeting on April 23, 2009 in San Francisco; discussions involved SB375, which addresses reducing green house gas emissions through land use and transportation planning; that she would leave material with the City Clerk to route to Council. (09 -189) Vice Mayor deHaan stated last week's Planning Board meeting discussed increasing Trader Joe's delivery time; reports show after hour activity at the Towne Centre; discussions involved who would be responsible for enforcing delivery hours; at the October 7, 2008 Council Meeting, Council discussed additional entitlements for Towne Centre; Council gave specific direction; that he is concerned that Council's guidance has not been followed. (09 -190) Mayor Johnson stated that she attended the Northern California Power Agency Meeting in Washington, DC; the City will be receiving Energy Efficiency Block Grant money; inquired what process would be used. The Deputy City Manager responded the City would receive $640,600; stated that she is working with AMP and the Public Works Department Regular Meeting Alameda City Council 15 May 5, 2009 on a variety of options; options would be presented to Council at the June 2, 2009 Council meeting; competitive money has no guidelines; applications are due June 25, 2009. Mayor Johnson inquired when funding would be available, to which the Deputy City Manager responded as quickly as possible. ADJOURNMENT There being no further business, Mayor Johnson adjourned the Regular Meeting at 11:32 p.m. Respectfully submitted, Lara Weisiger City Clerk The agenda for this meeting was posted in accordance with the Brown Act. Regular Meeting Alameda City Council 16 May 5, 2009