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1976-06-22 Special CC MinutesSPECIAL MEETING OF THE COUNCIL OF THE CITY OF ALAMEDA HELD TUESDAY - - - - - - - - - - - - - -JUNE 22, 1975 The meeting convened at 7:00 o'clock p.m. in the Council Chamber of the City Hall with President Corica presiding, ROLL CALL: The roll was called and Councilmen BeCkam, Diament, Hurwitz, Sherratt and President Corica, (5), were noted present. Absent: None. I. Receipt of the Notice and Agenda of this Special Meeting had been acknowledged by the Council- men and was on file. The purpose of the session was for presentation by the City Manager of the Recommended Budget for fiscal year I976-1977, the Capital Improvement Program for I976-I978, and the I976-1977 Gas Tax Program, action thereon if so desired, and consideration of an item of unfinished business concerning the Lease Agreement between the City and the Alameda Swimming Pool Association. 2. President Corica informed those persons in the audience that copies of the Recommended Budget and Capital Improvement Program were available should they desire to have one. He also invited their comments following the city Manager's presentations. UNFINISHED BUSINESS: 3. City Manager Goss then made his presentation of the Recommended Budget for the City of Alameda for I976-I977. With the use of graphs, tabulations and recapitulations projected on the screen for the visual information of all, he narrated the facts and figures as set forth in the Tentative Budget. He reported the proposed Tentative Budget totaled B12,091"I35, which exceeded the 1975- 1976 budget by $454,105. Concerning the estimated revenues, Mr. Goss noted the major source of revenue, although constituting less than half the total, oonsisted of the property tax, followed by sales tax, restricted gas tax, the Bureau of Electricity divident, the Utility Users Tax, Motor Vehicle in lieu tax, golf income, income from CETA, Revenue Sharing, Housing and Community Development Act, interest income, cigarette tax and business license tax. He stated that due to an action taken by the Public Utility Board the previous evening, the Bureau divident would now be the third largest source of incnme. He reported larger amounts were expected from HCDA, the business license tax, and the Motor Vehicle in lieu tax. By graph comparisons, he illustrated the various sources of revenue and expenditures of the city against those of other jurisdictions. As to expenditures in the overall financial operation of the city, Mr. Goss stated, based on the current fiscal year, personnel was slightly below 80% of the total budget. He explained Police, Police-Fire pensions, and Fire represented roughly 50% of the total budget; Public Works 15%; Recreation, Parks and Golf 10%, Library 3.5%; and minor amounts for Finance, Planning Personnel, general services, retirement debt, Health and Social Services. He reported insurance costs had grown drastically in recent years and were now up to 8% of the total projected expenditures. Mr. Goss stated the increase in the proposed budget was basically due to the following factors: (1) insurance costs which reflected Worker's Compensation, Public Liability, Fire, and health and dental, and which it was anticipated would increase S182,000 in the coming fiscal year and would reach almost $I,000,000; (2) Police and Fire pension costs estimated at $I,400,000 which, with the increase in the contribution rates to the Public Employee's Retirement System and Social Security, would increase pension and retirement costs by an estimated $216,000 in the coming fiscal year; (3) energy related costs. such as electricity, gas, fuel and oil expense. which it was estimated would increase approximately $79^000 the next year even though there would be no significant increase in the use of utilities and vehicles; and (4) costs of the biennial general municipal election and consolidation with the November general election ballot for consideration of Charter amendments. Mr. Goss noted that all city operations, except for the above mentioned "uncontrollable" expenses, were projected at an expenditure level of approximately S52,00O less than the current year. In order to accomplish this, he stated, supplemental budget requests for additional personnel, equip- ment and facilities totaling over $I,000,000 were rejected unless they could be accomplished by deleting equal or nearly equal costs elsewhere or could be financed through state or federal sources. In addition, he said, $250,000 had been deleted from basic departmental requests, and the modified hiring frS87e instituted in May, 1975, was projected to continue through most of the coming year. Mr. Goss offered the following recommendations as stens which should be taken to improve the city's fiscal position. (1) Further evaluation of total or partial self-insurance for worker's compen- sation and general liability and fire insurance; (2) utilization of county assessment roll and looking at possible consolidation with the county, not only in assessing property but also in collecting the city property tax; and, (3) an improvement in productivity, He said notable efforts had been made in all departments to improve productivity in light of the demand for additional services and additional paper work required by the state and federal governments. Mr. Goss stated he did not believe this was the time to program any great expansion in service improvements and the budget was concentrated on maintaining existing service levels without any further reduction, He reviewed the proposed department funding budgets, as set out in detail in the Tentative Budget. In explianing the Community Promotion account, Mr. Goss stated this also reflected four issues Of the Alameda City Report and the financing for an ad in the Times-Star Bicentennial Edition, which had been previously authorized. He said theproposed contract with the Chamber of Commerce had been reduced by $2,180 to a total of $24°37O. With regard to the Social Service budget, Mr. Goss stated this was basically the same as for the current year. However, he said, after all budget requests were in and reviewed and accomplished, the Social Service Board had submitted a supplemental request for the establishment of the position and funding for an Executive Director to the Board, and authority to establish a Volunteer Bureau. He said it appeared, at least this year, there were inadequate local funds to finance their request. He suggested the proposal be evaluated during the coming year as the role of the Board might become redefined. At the conclusion of his presentation, Mr. Goss answered questions put by members of the Council. He reported the Public Utilities Board had increased the amount of its dividend to the city $900,000. - Concerning the proposed contract with the Chamber of Commerce, President Corica questioned the salary and expense account of its Executive Director, In response, Chamber President Don Lindsey Stated the salary was $15,000 per year and the Director was also given a $I00 per month expense account plus $I50 monthly authomobile allowance. Councilman Hurwitz asked if the Chamber had changed its posture of becoming independent and Mr. Lindsey said he believed this had been an overly optimistic position on their part. Following discussion, Councilman Hurwitz moved approval of the proposed Tentative Bud t. The motion was seconded by Councilman Dinment and carried unanimously on roll call vote. Councilman Sherratt moved acceptance of the communication from the Social Service Board, and that it be referred to the work session between the Board and the City Council to be held on July 12, 1976. The motion was seconded by Councilman Hurwitz and on voice vote carried unanimously. There being no objection, the meeting proceeded to 'ResOlutiOns". RESOLUTIONS: 4. The following resolution was introduced by Councilman Beckam, who moved its adoption: "Resolution No. 8544 Approving and Adopting the Tentative Budget of the City of Alameda for the Fiscal Year 1976-I977." The motion to adopt said resolution was seconded by Councilman Sherratt and carried on the following roll call vote. Ayes: Five. Noes. NOne, Absent None, A ten-minute recess was called. There being no OhfeCti0n. upon reconvening, the meeting proceeded to 'Introduction of Ordinances". INTRODUCTION OF ORDINANCES: 5. "Ordinance No. New SEries Authorizing the Execution of a Lease Agreement by and between the City of Alameda, as Lessor, and the Alameda Swimming Pool Association, as Lessee, Of Certain City-Owned Lands (Portions of Franklin Park and Lincoln Pork.Y' President Corica reported the negotiating team, composed of himself, the City Manager, and the Association Trustees, had met and the only item on which they had not reached agreement was the amount of money to be paid to the city, if any, or if it was going to continue as it had in the past, i.e., the payment of $1,00 per year. He noted Councilman Hurwitz had stated he had suggestions to offer. however he had not received them. Councilman Hurwitz said he had reduced his suggestions to writing and would submit them at this time. President Corica noted Mr. William Godfrey, Association Trustee, was in the audience and asked if he would consent to a continuance of the matter to the next regular meeting of the City Council to be held on July 6, 197E. Mr. Godfrey replied the Trustees had no objection to the delay, however, this might impose a hardship on the two Pool Associations. At the conclusion of discussion, Councilman Sherratt introduced the ordinance, after which it would be laid over under provision of law and the Chart2r. The motion was seconded by Councilman Beckam and carried on the following roll call vote, Ayes. Four. Noes: Councilman Hurwitz, (1). Absent. None. Councilman Hurwitz explained he could not vote for the ordinance at this time without first approving a completed form of the Lease Agreement. The meeting returned to the regular order of business. UNFINISHED BUSINESS: 6. City Manager Goss then explained, item by item, with the use of posted illustrations, the updated version of the Capital Improvement Program for 1976-1978 and the I97E-1977 Gas Tax Program, which had been submitted to the Council in writing. He reported the beginning program in the amount of $2,734,400, adopted September 19, 1974, had grown to a proposed $6,227,050 for the coming two years. He said that over the past twenty-one months an effort had been made to secure support of additional federal and state aid to accomplish projects that would not otherwise be within the scope of the city's financing capahi]itv. He noted the concept of the program had been on a pay-as-you-go basis, and the capital program had been developed without relying upon the property tax, with the projects completed to date financed from restricted local sources or federal or state funds. He stated federal and state programs had not been sought if there was any evidence more restrictions would be attached to such funds than if the city had not sought such aid in the first place. Mr. Goss reported that over the past twenty-one months the land for Buena Vista Park had been acquired and the first phase development completed and dedicated; the reconstruction of Phases I and II of Lincoln Park, as well as provision of security lighting, had been completed; the south golf course pump project was finished; the construction of six tennis courts and ancillary landscaping on lower Washington Park was under contract and nearly completed: the construction of a storm drain from the golf course under Doolittle Drive and through the city garbage disposal area had been finished; the modernization of Fire Station No. 2, as well as construction of the Bay Farm Island Fire Station, had been completed except for some finishing architectural features; the Grand Street Boat Ramp parking lot had been repaved; a portion of the Bike Path master plan had been implemented; the final plans and specifications and land acquisition for the new Police Administration Building were nearly completed, and there was a partial completion of a structural and architectural evaluation study for the Main Library. For the coming two-year period, Mr. Goss said it appeared the city would be obtaining sufficient funding to accomplish a number of other major projects. He reviewed the projects, including cost and sources of funding, and the unfunded projects, as set out in the written report. Mr. Goss noted the reconstruction of the Driving Range and construction of the Golf Cart Building had been moved from the unfunded to the funded projects. He said an evaluation had been mode to determine if a loan from the Capital Outlay money set aside for the Police Administration Building project could be made to finance the improvements, with the understanding these funds would be paid back from additional revenues obtained from the driving range during the next fifteen months, however it had been found it would take three to four years to pay bock the money which would be needed within the fifteen month period. He said it was recommended, therefore, that the Golf Commission and the City Council consider placing a surcharge for the driving range project of $.50 on each round of golf in order to finance the project, with the revenue thus derived going directly into the Capital Outlay Fund. Councilman Sherratt recommended this project be started at the earliest possible date, in which statement Councilman Beckam concurred. President Corica commended Mr. Goss on his excellent pres8DtatiOn3. A question and answer period was held with Mr. Goss clarifying points raised by the Councilmen. Councilman Sherratt questioned the future of the Post Office building. Councilman Beckam remarked that the City Manager was in the process of prgpdring a report on this subject and suggested and action be deferred until its receipt. Mr. Goss stated the report should be before the Council within the next month. Councilman Hurwitz reported there was a need for lighting in Godfrey Park and asked that this be added to the list of unfunded projects. Following discussion, Councilman Diam2nt moved adoption of the Capital Improvement Program for I976-1978, as presented, and approval of the recommendations of the City Manager, subject to Project II-20/5 (Patton Way) being processed by the Planning Board and staff and preparation of the necessary Environmental Impact Report. REOLUSTIONS: 7. The following resolution was introduced by Councilman Sherratt, who moved its adoption: "Resolution No. 8545 Approving and Adopting the 1976-I978 Capital Improvement Program of the City of Alameda." The motion to adopt said resolution was seconded by Councilman Hurwitz and carried on the following roll call vote. Ayes: Five. Noes: None. Absent: None. 8. Councilman Sherratt moved the Council retire to executive session for a di5oussfon of pending litigation and personnel matters (meet and Confer\. The motion was seconded by Councilman Beckam and carried unanimously on voice vote. After a five-minute recess, the Council reconvened in the Conference Room of City Hall for its deliberations. At the conclusion of discussion, it was determined no action would be taken at this time. ADJOURNMENT: 9. There being no further business to come before this meeting, the Council adjourned at 10:50 o'clock p.m. Respectfully submitted, City Clerk