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2008-06-17 Joint CC APFA ARRA CIC MinutesMINUTES OF THE SPECIAL JOINT CITY COUNCIL, ALAMEDA PUBLIC FINANCING AUTHORITY (APFA) AND ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY (ARRA) MEETING; AND ANNUAL COMMUNITY IMPROVEMENT COMMISSION (CIC) MEETING TUESDAY- -JUNE 17, 2008- -7:31 P.M. Mayor/Chair Johnson convened the Special Joint City Council, APFA and ARRA Meeting and Annual CIC Meeting at 8:53 p.m. ROLL CALL - Present: Councilmembers / Authority Members / Board Members / Commissioners deHaan, Gilmore, Matarrese, Tam, and Mayor/ Chair Johnson – 5. Absent: None. MINUTES (08-276 CC/08-03 APFA/08-35 CIC) Minutes of the Special Joint City Council, Alameda Public Financing Authority, and Community Improvement Commission Meeting held on June 3, 2008; and the Special Joint City Council, Alameda Reuse and Redevelopment Authority, and Community Improvement Commission Meeting held on June 4, 2008. Approved. Councilmember/Authority Member/Board Member/Commissioner Matarrese moved approval of the minutes. Councilmember/Authority Member/Board Member/Commissioner deHaan seconded the motion, which carried by unanimous voice vote – 5. AGENDA ITEM (08-277 CC/08-04 APFA) Public Hearing and related actions regarding the Fiscal Year 2008-09 Budget: (08-277A CC) Resolution No. 14222, “Authorizing and Directing the Preparation and Execution of Certain Lease Financing Documents, Authorizing the Preparation and Distribution of a Preliminary Official Statement in Connection with the Offering and Sale of Certificates of Participation Relating Thereto, and Authorizing and Directing Certain Actions with Respect Thereto.” Adopted; and (08-04A APFA) Resolution No. 08-17, “Approving, Authorizing and Directing Preparation and Execution of Certain Lease Financing Documents and Authorizing and Directing Certain Actions with Respect Thereto.” Adopted. Mayor/Chair Johnson inquired what would be the new interest rate. Special Joint Meeting Alameda City Council, Alameda Public Financing Authority, Alameda Reuse and Redevelopment Authority, and Community Improvement Commission June 17, 2008 1 Bill Reynolds, Gardner Underwood & Bacon Financial Advisor, responded rates are excepted to produce present value savings in excess of 4%; stated the exact rate would not be known until the sale date; the assumption is that the rate would be in the mid 4% range. Mayor/Chair Johnson inquired whether Mr. Reynolds is confident with the assumption. Mr. Reynolds responded in the affirmative; stated the upgraded rating makes the process very competitive; refinancing would not move forward without a good rate. Mayor/Chair Johnson stated that she was opposed to refinancing before; now she is happy to see that the term would not be extended and there would be a lower interest rate. Councilmember/Authority Member deHaan inquired whether the first year would not have interest or principal payments and the second year would have interest payments only. The City Manager responded interest payments would be made in the first year. Councilmember/Authority deHaan inquired whether the cost of the loan would be amortized, to which Mr. Reynolds responded in the affirmative. Mayor/Chair Johnson inquired what would be the estimated savings, to which the City Manager responded $317,600. Mr. Reynolds stated market data would be available on the date of pricing to show comparables. Councilmember/Authority Member deHaan inquired what percentage would be the breaking point. The City Manager responded 5.5% is set in the resolution. Mayor/Chair Johnson inquired what is the old and new interest rate for each issuance. The City Manager responded the original issue rates ranging from 5.8% to 7.25% would mature in 2015; $2.77 million was issued for the Police facility; stated Library and Golf issues in the amount Special Joint Meeting Alameda City Council, Alameda Public Financing Authority, Alameda Reuse and Redevelopment Authority, and Community Improvement Commission June 17, 2008 2 of $4.9 million have rates of 3.9% to 5.75%. Mayor/Chair Johnson stated that a maximum should be set for each issuance. The City Manager stated 5.5% is a blended rate; refinancing would not go forward if expected savings are not realized. Councilmember/Authority Member Matarrese stated the 2022 date should not be exceeded; the previous proposal did not go forward because there was no savings, the term was extended, and debt would be pushed back; now, debt would not be pushed back and the term would not be extended. Mr. Reynolds stated the interest rate and savings are two different numbers; a $317,600 savings is the underwriter’s best guess based on current market conditions; 5.5% would produce less than $317,600 in savings. Mayor/Chair Johnson stated the savings goal should be approximately $317,000. Councilmember/Authority Member Gilmore stated that anything over $300,000 in savings works. Councilmember/Authority Member deHaan stated that he would like the first two-year savings to be at least $400,000. Mayor/Chair Johnson stated that deferring debt payments is not the best way to do budgeting. Mr. Reynolds stated that bond counsel drafted the resolution with the idea that a limit would be placed on the average interest rate. Mayor/Chair Johnson stated the most important issue is savings; management’s goal is to defer payments to limit budget cuts; that she does not want to pay more and save less due to deferring. Mr. Reynolds stated an interest only payment would be made; savings would be limited in the first two years; the present value savings would change slightly with annual savings versus up front savings. Councilmember/Authority Member Matarrese moved adoption of resolutions as long as the duration of the bond would be the same and the savings threshold would not be less than $300,000. Special Joint Meeting Alameda City Council, Alameda Public Financing Authority, Alameda Reuse and Redevelopment Authority, and Community Improvement Commission June 17, 2008 3 Councilmember/Authority Member deHaan seconded the motion with the caveat that principle would be pushed out. Under discussion, Mayor/Chair Johnson stated refinancing makes sense because the interest rate would be lower and over $300,000 would be saved. On the call for the question, the motion carried by unanimous voice vote – 5. (08-277B CC) Public Hearing to consider Resolution No. 14223, “Amending Master Fee Resolution No. 12191.” Adopted. The Assistant City Manager provided a brief presentation. Councilmember deHaan inquired what was the prior fire inspection fee. Mayor Johnson stated a chart showing fee comparisons would have helped. In response to Councilmember deHaan’s inquiry, the Fire Marshall stated fire inspection fees are based on an hourly rate and do not have 100% cost recovery; currently, a business fire inspection fee is $77.50; full cost recovery would be approximately $148. Mayor Johnson questioned whether Building staff should perform inspections instead of firefighters; stated business owners have complained about inspection fees; the proposed increase would result in more complaints. The Fire Marshall stated the Fire Department uses civilian inspectors, which lowers the expense. Mayor Johnson questioned what the cost would be if Building staff performed inspections. The Fire Marshall stated Fire Department civilian inspectors have the same salary as the Building Inspectors. Councilmember Gilmore stated Building inspectors are busy already; new personnel would need to be added. The Fire Marshall stated that fire and storm water inspectors are very specialized and require additional training. Special Joint Meeting Alameda City Council, Alameda Public Financing Authority, Alameda Reuse and Redevelopment Authority, and Community Improvement Commission June 17, 2008 4 Councilmember Matarrese stated an 80% increase is stiff; inquired whether building fees could be raised by a very small amount over inflation in order to subsidize fire inspection fees. The Assistant City Manager responded fees cannot be over 100% cost recovery for any service. Councilmember deHaan stated many inspections are a one hour minimum and cost $215; inquired how often inspections occur, to which the Fire Marshall responded annually. Robb Ratto, Park Street Business Association (PSBA), stated increased inspection fees would put an undue burden on small businesses. Alan Elnick, Alameda City Employees Association (ACEA), stated ACEA feels that Council should not pass a blanket resolution for a no fee increase for the Golf Course. Mayor Johnson inquired what is the collection rate on ambulance service. Councilmember Matarrese responded the report notes the collection rate was 51% in 2007 and excludes Medicare and Medi-Cal write offs. Councilmember Gilmore inquired when was the last time ambulance fees were raised. The City Manager responded rates were restructured by the County last year. Mayor Johnson stated Council needs to know the cost recovery for ambulance service. The Fire Chief stated the collection rate is approximately 85% if Medicare and Medi-Cal are taken out as non-collectibles; new revenue anticipates a 50% collection rate. Mayor Johnson inquired what is the cost to provide ambulance service and how much revenue is received, to which the City Manager responded information would be provided. Vice Mayor Tam stated Page 8 shows that $1,297 is the base rate for the ambulance fee; inquired whether said fee is a significant portion of the City’s cost for providing the service. Special Joint Meeting Alameda City Council, Alameda Public Financing Authority, Alameda Reuse and Redevelopment Authority, and Community Improvement Commission June 17, 2008 5 The Fire Chief responded the fee is close to the cost. Mayor Johnson inquired whether the City charges above what insurance pays. The Fire Chief responded in the affirmative; stated generally, insurance pays approximately 80%; the patient is billed the remaining 20%. Mayor Johnson inquired what is the recovery rate for private ambulances, to which the Fire Chief responded that he did not know. Councilmember Matarrese inquired how much of the $300,000 would be accountable to inspection fees. The Fire Chief responded the EMS portion is approximately $280,000; stated inspection fees are estimated at approximately $65,000. The City Manager stated $20,000 would be related to the new fees. Councilmember Matarrese inquired whether there would be a $15,000 shortage, to which the Fire Chief responded in the affirmative. Councilmember Matarrese stated that he cannot see raising fees 80%. The Fire Chief stated false alarm fees were not included and are estimated at $20,000; $300,000 could be achieved in new revenue if false alarm fees were included. Mayor Johnson stated false alarm fees should be included; inquired what is sent out for a fire alarm, to which the Fire Chief responded three engines, one truck, and a Chief Officer. Mayor Johnson inquired whether one free false alarm is allowed per quarter, to which the Fire Chief responded in the affirmative. Mayor Johnson stated one free false alarm should be allowed every six months, not every quarter. The City Manager stated that the Fire Department responded to 454 false alarms in 2007. Mayor Johnson stated second false alarms fees should be raised to $125; $200 should be charged for the third false alarm, and $250 for the fourth false alarm. Special Joint Meeting Alameda City Council, Alameda Public Financing Authority, Alameda Reuse and Redevelopment Authority, and Community Improvement Commission June 17, 2008 6 Councilmember deHaan inquired whether businesses have different fees, to which the City Manager responded in the negative. Mayor Johnson stated commercial businesses should be allowed one free false alarm per year. The Fire Chief stated fire alarms might be disconnected if restrictions are too severe. Mayor Johnson stated commercial false alarm rates should be $125 for the second alarm; $250 for the third; and $375 for the fourth. Councilmember Matarrese stated the first free false alarm should cover a period of six months. In response to Mayor Johnson’s inquiry, the Assistant City Manager stated the Golf Commission has not recommended golf fee increases at this point. Mayor Johnson stated said increases could come back. The City Manager stated the last golf fee increase was not in conjunction with the annual Master Fee resolution. Councilmember Matarrese moved adoption of the resolution with the following revisions to the Master Fee Schedule: 1) the false fire alarm schedule for residential be $125 for the second alarm, $200 for the third alarm and $250 for the fourth alarm; 2) the false fire alarm for commercial be $125 for the second alarm, $250 for the third alarm and $375 for the fourth alarm; 3) that the period for false fire alarms be changed from quarterly to every six months; and 4) the rest of the fees be increase by CPI. Councilmember Gilmore inquired how much less revenue would be raised with the proposed revisions. Mayor Johnson responded the amount is not known now; stated the matter can be brought back. Councilmember Matarrese stated that he understands that $280,000 of the $300,000 comes from the ambulance fee increase; an additional $65,000 would have come from increased fire inspection fees; revenue would drop from $65,000 to $15,000 by using the CPI. Mayor Johnson stated that she wants ambulance collection fees brought back because collection should be improved. Special Joint Meeting Alameda City Council, Alameda Public Financing Authority, Alameda Reuse and Redevelopment Authority, and Community Improvement Commission June 17, 2008 7 Councilmember Matarrese requested that information be brought back on how much the uncollected [ambulance] fees represents in dollars. Councilmember deHaan seconded the motion. Under discussion, Councilmember deHaan stated that Alameda goes to Oakland 273 times versus Oakland coming to Alameda 23 times; the recovery rate could change if determinations are made later. Mayor Johnson stated the Contract should state that mutual aid should be proportionate. Councilmember deHaan stated revenue generation would be impacted if the City does not provided services to Oakland. The City Manager stated the issue would be monitored and adjustments would be made in the quarterly report if necessary. Councilmember Matarrese stated reports need to be provided more than quarterly; some issues need to be monitored continually and constantly. Mayor Johnson requested monthly reports. On the call for the question, the motion carried by the following voice vote – Ayes: Councilmembers deHaan, Gilmore, Matarrese, Mayor Johnson – 4. Noes: Vice Mayor Tam – 1. (08-277C CC) Public Hearing to Establish Proposition 4 Limit (Appropriation Limit) for Fiscal Year 2008-2009; and Resolution No. 14224, “Establishing Appropriations Limit for Fiscal Year 2008-09.” Adopted. Councilmember Matarrese moved adoption of the resolution. Vice Mayor Tam seconded the motion. Under discussion, Vice Mayor Tam stated data is based on the amount of City or County population growth and CPI; Alameda’s population growth is smaller than other cities in the County; inquired where is the demand for services and commensurate need for increased costs if population growth has not increased. Mayor Johnson responded services are decreasing, but costs are increasing. Special Joint Meeting Alameda City Council, Alameda Public Financing Authority, Alameda Reuse and Redevelopment Authority, and Community Improvement Commission June 17, 2008 8 Vice Mayor Tam stated that complete cost recovery is recommended for some areas, but no others; there seems to be some disparity in which services are more valuable. Councilmember Matarrese stated small businesses provide sales tax; CPI is recommended instead of cost recovery because small businesses are taking on the extra burden of property tax; businesses need to be kept alive. Vice Mayor Tam stated that she is in support of giving small businesses a break; the City seems to be subsidizing the Golf Course. Councilmember Gilmore stated Council had previous discussions regarding only being able to raise fees so high and get same number of players. Mayor Johnson stated the City is not subsidizing the Golf Course now; raising golf fees would result in less revenue; golf fees would not be frozen. Councilmember Matarrese stated the Golf Commission would be discussing the Golf Master Plan soon; looking at golf fees today would be premature. On the call for the question, the motion carried by unanimous voice vote – 5. Mayor Johnson stated a policy is needed regarding not having the General Fund subsidize the Golf Course. (ARRA) Resolution No. 42, “Approving and Adopting the Operating Budget and Appropriating Certain Moneys for the Expenditures Provided in Fiscal Year 2008-09.” Adopted; (08-36 CIC) Resolution No. 08-157, “Approving and Adopting the Operating Budget and Appropriating Certain Moneys for the Expenditures Provided in Fiscal Year 2008-09.” Adopted; (08-277D CC) Resolution No. 14225, “Approving and Adopting the Operating Budget and Capital Improvements and Appropriating Certain Moneys for the Expenditures Provided in Fiscal Year 2008-09 and Establishing an Other Post Employment Benefit (OPEB) Plan.” Adopted; (08-277E CC) Resolution No. 14226, “Establishing Guidelines for Special Joint Meeting Alameda City Council, Alameda Public Financing Authority, Alameda Reuse and Redevelopment Authority, and Community Improvement Commission June 17, 2008 9 Reimbursement of Per Diem Allowance for City of Alameda Business Travel.” Adopted. The City Manager/Executive Director provided a handout on issue bin items from previous workshops and gave a brief presentation. Mayor/Chair Johnson inquired what is the cost for a Park Director, to which the City Manager responded $25,000 per year. Mayor/Chair Johnson inquired whether $25,000 would fully restore Park Directors at sites without reducing hours, to which the Recreation and Park Director responded in the affirmative. Mayor/Chair Johnson stated direction should be given to not reduce Park Director hours; inquired how much it would cost to light tennis courts, to which the Recreation and Park Director responded $7,500. Mayor/Chair Johnson stated efforts should be made to find money to light the two tennis courts. Councilmember/Board Member/Commissioner Gilmore inquired how long it would take to go through the $300,000 restored to the Fire Department overtime budget. The Fire Chief responded the current overtime usage is averaging four people per day which costs $6,000 per day for a twenty-four hour shift. Councilmember/Board Member/Commissioner Gilmore inquired how long it would take to implement rotating a truck out of service. The Fire Chief responded early July; stated operationally, the Fire Department could be ready within four to six weeks; the meet and confer process would take longer. Councilmember/Board Member/Commissioner Gilmore stated adding $300,000 would still leave a $520,000 shortage; inquired how the $520,000 would be absorbed in the budget. The City Manager/Executive Director responded overtime would still need to be managed; stated the $520,000 would not be restored back into the budget. Mayor/Chair Johnson stated an engine replacement plan should be reviewed; the vehicle replacement policy may need adjustments. Special Joint Meeting Alameda City Council, Alameda Public Financing Authority, Alameda Reuse and Redevelopment Authority, and Community Improvement Commission June 17, 2008 10 The Fire Chief stated deferring purchases would build a huge, future liability; another truck is scheduled to be replaced next year. Councilmember/Board Member/Commissioner deHaan inquired what would be the total price. The Fire Chief responded an engine would cost between $400,000 to $425,000 and would have a ten to twelve-year lease. Councilmember/Board Member/Commissioner deHaan inquired what is the compliment of Fire Department staff. The Fire Chief responded nine firefighters have been hired due to retirement vacancies; currently, eight positions are unfunded; new hires will be necessary as retirements occur; otherwise, additional overtime would be created. Councilmember/Board Member/Commissioner deHaan inquired how much overtime would be reduced [with new hires]. The Fire Chief responded average overtime covers four positions; stated adding two to three positions per shift would be beneficial; money would be saved in the long run. Councilmember/Board Member/Commissioner deHaan inquired how said scenario is equated into percentage of overtime. The Fire Chief responded that he guesses that 60% to 70% of overtime would be saved. Councilmember/Board Member/Commissioner deHaan inquired what would be the total compliment. The City Manager/Executive Director responded 110 funded positions are assumed for 2008-2009; stated 102 positions are for sworn officers, 8 are non-sworn. Councilmember/Board Member/Commissioner deHaan inquired whether overtime would still exist with total staff compliment, to which the Fire Chief responded in the affirmative. Councilmember/Board Member/Commissioner deHaan inquired what overtime costs would be with total compliment, to which the Fire Chief responded $200,000 to $300,000. Special Joint Meeting Alameda City Council, Alameda Public Financing Authority, Alameda Reuse and Redevelopment Authority, and Community Improvement Commission June 17, 2008 11 Mayor/Chair Johnson stated that numbers are needed regarding hiring seven firefighters versus overtime; overtime should be reduced since nine new firefighters were hired; specific numbers are needed. Councilmember/Board Member/Commissioner deHaan stated replacement vehicles could be deferred; additional replacements will be needed next year; inquired whether take home vehicle costs have been discussed, to which the Fire Chief responded in the negative. Mayor/Chair Johnson stated the vehicle replacement policy needs to come back for discussion. The City Manager/Executive Director stated the vehicle replacement policy was changed; only a limited number of safety related vehicles were identified for replacement. Mayor/Chair Johnson inquired how much is being proposed for vehicle replacement next year. The City Manager/Executive Director responded $717,750, which includes some vehicles carried forward from the current fiscal year. Mayor/Chair Johnson stated that vehicles should not be replaced until the matter is brought back to Council; shortfalls could be covered by taking less out of department budgets. Councilmember/Board Member/Commissioner deHaan stated discussions are needed regarding deferring an engine or command vehicle replacement; a fall back position is needed. Mayor/Chair Johnson stated $200,000 is proposed to be spent in one year for a Fire Department command vehicle, Division Chiefs’ and Deputy Chief vehicles. The City Manager/Executive Director stated said vehicles met the criteria last year. The Fire Chief stated delivering service in the streets takes people, good tools, and training. Councilmember/Board Member/Commissioner Matarrese stated the issue will be revisited many times for many reasons; mechanical assessments are needed; repair costs need to be evaluated versus Special Joint Meeting Alameda City Council, Alameda Public Financing Authority, Alameda Reuse and Redevelopment Authority, and Community Improvement Commission June 17, 2008 12 replacement costs. Mayor/Chair Johnson stated vehicle use needs to be identified; fuel efficiency needs to be reviewed if a vehicle travels a lot of miles. The Fire Chief stated the proposal is to replace Fire Department sedans with hybrid vehicles. Councilmember/Board Member/Commissioner Matarrese inquired whether vehicles would be replaced with the Toyota Prius. The Fire Chief responded vehicles would be replaced with Ford Escapes. Mayor/Chair Johnson questioned whether the command vehicle needs to be replaced next year. Councilmember/Board Member/Commissioner deHaan stated annual fuel costs need to be reviewed for take home vehicles; decisions need to be made regarding reassigning vehicles and reduction of the overall inventory. Vice Mayor/Board Member/Commissioner Tam stated that the proposed budget reflects a certain level of trade offs; $300,000 would be generated through the proposed fee structure and would offset the $820,000 in mandatory [Fire Department] overtime costs; there still would be $520,000 in mandatory overtime cost expenditures that would be controlled through rotating the closing of a fire truck; inquired what differs other than postponement. The Fire Chief responded hopefully some other revenues enhancements will occur in the fall; stated the additional $300,000 would be counted on to delay the immediate closure [of a fire truck]. Mayor/Chair Johnson stated that additional funds could be generated by not replacing vehicles. Vice Mayor/Board Member/Commissioner Tam stated said savings is not on going. Mayor/Chair Johnson stated continued discussions are needed regarding long-term issues. Vice Mayor/Board Member/Commissioner Tam stated increased Police Department grant and fee revenues would be allocated to the Special Joint Meeting Alameda City Council, Alameda Public Financing Authority, Alameda Reuse and Redevelopment Authority, and Community Improvement Commission June 17, 2008 13 Crossing Guard program; the proposed rescheduling results in approximately 40% cost reduction; inquired whether the $93,000 is expected to offset the reduction. The Police Chief responded $93,000 would help to recover the additional cost not budgeted for the next fiscal year. Councilmember/Board Member/Commissioner Gilmore inquired what would be the reporting procedure for Fire Department overtime. The City Manager/Executive Director responded the Fire Department would be monitoring the issue on a daily basis; stated monthly or quarterly reports could be presented to Council. Councilmember/Board Member/Commissioner deHaan inquired when the Public Works Capital Improvement Program (CIP) would be addressed. The Public Works Director responded the CIP would be adopted with the budget. Councilmember/Board Member/Commissioner deHaan inquired what is the deferred maintenance; stated the report shows medium priority projects total $66.5 million. The Public Works Director responded the deferred maintenance report will be coming to Council in approximately four weeks; Council will see the Pedestrian Plan later in the year; high, medium, and low priority projects were identified for the Pedestrian Plan; appropriations will be reviewed this coming year; the only Pedestrian Project included in the next two year CIP is for access across the Estuary. Mayor/Chair Johnson stated the concern is that $4 million was spent from the General Fund to catch up on some of the deferred maintenance and this year $1.5 million will be deferred. The Public Works Director stated all Measure B funds are being used; staff was successful in receiving Proposition 1B funds. Councilmember/Board Member/Commissioner Gilmore stated a funding stream has not been identified for other post employee benefits; the proposed General Fund budget totals $75.4 million for the fiscal year; the accrued liability for post employment benefits was $75.4 million as of January 2007. Mayor/Chair Johnson stated that deferred costs are between $75 Special Joint Meeting Alameda City Council, Alameda Public Financing Authority, Alameda Reuse and Redevelopment Authority, and Community Improvement Commission June 17, 2008 14 million and $107 million for health and safety post employment benefits. Councilmember/Board Member/Commissioner Matarrese stated that some of the fund balance could be used to seed the trust fund. Mayor/Chair Johnson opened the public portion of the hearing. Speakers: Carol Quintal, Crossing Guard; Janet Crandall, Citizen Emergency Response Team (CERT); David Baker, Alameda; Fred Blass, Alameda; Christine Novosel, Crossing Guard; Christopher Buckley, Alameda; Rich Bennett, Alameda; Jeff DelBono, Alameda Firefighter; Domenick Weaver, Alameda Firefighters; Steve Floyd, Local 689; Tim McNeil, Retired Fire Chief; Diane Coler-Dark, Alameda; Chuck Millar, Alameda; Robb Ratto, PSBA; Kathy Moehring, WABA. There being no further speakers, Mayor/Chair Johnson closed the public portion of the hearing. * * * (08-278 CC) Councilmember / Authority Member / Board Member / Commissioner Matarrese moved approval of continuing the meeting past 12:00 midnight. Mayor/Chair Johnson seconded the motion, which carried by unanimous voice vote – 5. * * * Mayor/Chair Johnson stated that the City will not be spending money on the Meyer’s House; Greater Alameda Business Area (GABA) funding should not be approved until information is brought back; $50,000 is allocated to the EcoPass program. The Public Works Director stated the total program is approximately $36,000; $14,000 is from the General Fund; the AC Transit General Manager is allowed to reduce the passes by 15%. Mayor/Chair Johnson inquired whether there is a better to way to encourage people to take public transit, such as discount tickets for BART or other forms of public transportation; suggesting performing an employee survey. Councilmember/Board Member/Commissioner deHaan stated that open dialogue should be initiated regarding the Meyer’s House; additional funding might become available. Special Joint Meeting Alameda City Council, Alameda Public Financing Authority, Alameda Reuse and Redevelopment Authority, and Community Improvement Commission June 17, 2008 15 The Recreation and Park Director stated Trust representatives have not indicated that any additional funding would be available but are willing to review how current funds are invested. Mayor/Chair Johnson stated the community gets more per dollar for funding Park Directors than the Meyer’s House. Councilmember/Board Member/Commissioner deHaan inquired how much the Fun Fair costs. The Recreation and Park Director responded the Fun Fair is funded through fees charged to participants; stated funding is also received through recycling grants; costs are a wash. Mayor/Chair Johnson inquired what is the proposal regarding the Art in the Park. The City Manager/Executive Director responded the proposal is to use money from the Pubic Art fund. Mayor/Chair Johnson stated the Art in the Park should be self- sustaining. Vice Mayor/Board Member/Commissioner Tam stated major issues still exist regarding keeping current public safety levels; Council and the community want to have a safe community; she would rather buy more time for the Fire Department than the Golf Complex. Councilmember/Board Member/Commissioner Gilmore stated a gap would still exist if revenue raising options are placed on the November ballot and revenues start coming in January. Mayor/Chair Johnson stated overtime needs to be monitored; the vehicle replacement policy also needs to be reviewed. Councilmember/Board Member/Commissioner Gilmore stated the vehicle replacement policy is a mechanism to buy time. Mayor/Chair Johnson stated the issue would be understood better when the vehicle replacement policy comes back; keeping vehicles longer might be possible. Councilmember/Board Member/Commissioner Gilmore stated a lot of phone calls and emails have been received regarding not cutting public safety and increasing staffing levels; maintaining current levels is difficult, let alone adding additional staff; contractual Special Joint Meeting Alameda City Council, Alameda Public Financing Authority, Alameda Reuse and Redevelopment Authority, and Community Improvement Commission June 17, 2008 16 agreements cannot be made unless there is revenue in hand. Councilmember/Board Member/Commissioner Matarrese inquired whether hiring people is a contractual obligation; stated people can be layed off; the Fire Chief mentioned that two to three positions per shift should be added; more information is needed; enough direction has been given to the City Manager/Executive Director to approve numbers provided tonight; trees need to be addressed so that further liability is not incurred; plenty of notice needs to be given before spending down the $300,000 of overtime; some matching fund capability needs to be left to provide an incentive to the Museum; information has been requested regarding setting up a trust this year for unfunded post employment benefits. Councilmember/Board Member/Commissioner deHaan inquired what agreement has been arrived at regarding trees. The Public Works Director responded Zone 4 will commence July 1; Mr. Buckley suggested not pruning specific species at all, which does not make sense; structural pruning will be performed; left over money will be applied to new street tree planning. Councilmember/Board Member/Commissioner deHaan inquired how the process would equate to manpower. The Public Works Director responded the tree crew would be reduced by a Maintenance Worker I and a Team Leader; stated $50,000 has been added to the Consultant Contract. Councilmember/Board Member/Commissioner deHaan stated some of the work would be outsourced. The Public Works Director stated all mature tree pruning is done by an outside contractor; currently, emergency response to down limbs, some new tree planting, and young tree pruning is done in house; emergency removal of down limbs and young tree pruning is being proposed to be done by existing contractor. Councilmember/Board Member/Commissioner Gilmore stated time would be provided if the Golf Return on Investment (ROI) and surcharge were not rebated and put into the General Fund; the money would be able to fund Fire Department overtime and not take a truck out of service. Mayor/Chair Johnson stated the projected Golf Course deficit is approximately $700,000; the Golf Course cash reserve is $1.1 Special Joint Meeting Alameda City Council, Alameda Public Financing Authority, Alameda Reuse and Redevelopment Authority, and Community Improvement Commission June 17, 2008 17 million; the Golf Course would still be able to cover the shortfall for this year without the rebate. Councilmember/Board Member/Commissioner deHaan stated the 2004-2005 ROI for the Golf Course and AP&T was to be for a short period of time. Mayor/Chair Johnson inquired whether the proposal is to rebate both the ROI and surcharge, to which the City Manager/Executive Director responded in the affirmative. Mayor/Chair Johnson inquired how much is the surcharge. The City Manager/Executive Director responded $171,960; stated $99,040 is the ROI revenue. Mayor/Chair Johnson inquired how long the surcharge has been in place, to which the Recreation and Park Director responded since 1991. Councilmember/Board Member/Commissioner Gilmore stated intending to fund Fire Department overtime needs to be done with the realization of buying more time in hopes that revenue enhancement ideas pass in the fall; another plan needs to be in place if the revenues do not pass. Councilmember/Board Member/Commissioner Matarrese stated that he would support additional time being gained on the back of Golf. Councilmember/Board Member/Commissioner deHaan stated that everything is being put on a fast track; the top priority is public safety. Vice Mayor/Board Member/Commissioner Tam stated the $300,000 is not going to buy enough time past the fall; having the extra $271,000 would provide the comfort needed not to rotate a fire truck out of service. The City Manager/Executive Director stated $271,000 revenues would be taken from the Golf Course and added to the General Fund. Councilmember/Board Member/Commissioner deHaan stated that three years ago he stated that the Golf Course was on a death spiral; Alameda Point is placing the City in another situation of eroding the General Fund; lease revenues needs to be increased as much as possible; the crises is here. Special Joint Meeting Alameda City Council, Alameda Public Financing Authority, Alameda Reuse and Redevelopment Authority, and Community Improvement Commission June 17, 2008 18 Mayor/Chair Johnson stated the public is starting to understand the challenges. Councilmember/Board Member/Commissioner Matarrese moved adoption of the resolutions with direction provided tonight; stated that he would not reiterate all points, but summarized the following direction: 1) supplement the $300,000 [from fees] in Fire Department overtime funds with the [reinstatement of the] Golf ROI and surcharge; 2) require matching funds [of $3,800] for the Museum subsidy [and reduce the allocation by $7,500]; 3) use grants or savings to re-adjust the Tree Maintenance Program so that young trees are pruned and trees are replaced; 4) bring back information for putting aside a seed amount for the Trust Fund for Other Post Employment Benefits (OPEB); 5) bring back operational plans for sustaining services long-term; 6) look for funding to light the tennis court [proposed to be turned off]; 7) bring back the Vehicle Replacement Plan, including potential reduction in the fleet; 8) bring back an analysis of increasing fire staff by two to three per shift; stated the motion includes approving the numbers presented to Council [including changes outlined in the staff report: allocation of $93,340 to the Police Department for crossing guards; use of $25,000 in Meyers Housing funding for a Recreation Leader] and adoption of resolution Establishing Guidelines for Reimbursement of Per Diem Allowance for City of Alameda Business Travel. Vice Mayor/Board Member/Commissioner Tam seconded the motion, which carried by unanimous voice vote – 5. ADJOURNMENT There being no further business, Mayor/Chair Johnson adjourned the Special Joint City Council, APFA and ARRA Meeting and Annual CIC Meeting at 12:55 a.m. Respectfully submitted, Lara Weisiger, City Clerk APFA and CIC Secretary The agenda for meeting this was posted in accordance with the Brown Act. Special Joint Meeting Alameda City Council, Alameda Public Financing Authority, Alameda Reuse and Redevelopment Authority, and Community Improvement Commission June 17, 2008 19