2016-06-07 Joint CC SACIC MinutesMINUTES OF THE SPECIAL JOINT CITY COUNCIL
AND SUCCESSOR AGENCY TO THE COMMUNITY
IMPROVEMENT COMMISSION (SACIC) MEETING
TUESDAY- -JUNE 7, 2016- -7:01 P.M.
Mayor /Chair Spencer convened the meeting at 8:20 p.m.
ROLL CALL - Present: Councilmembers /Commissioners Daysog, Ezzy
Ashcraft, Matarrese, Oddie and Mayor /Chair Spencer
— 5.
Absent: None.
ORAL COMMUNICATIONS, NON - AGENDA
None.
CONSENT CALENDAR
Councilmember /Commissioner Ezzy Ashcraft moved approval of the Consent Calendar.
Vice Mayor /Commissioner Matarrese seconded the motion, which carried by unanimous
voice vote — 5. [Items so enacted or adopted are indicated by an asterisk preceding the
paragraph number.]
( *16 -283 CC /16 -023 SACIC) Minutes of the Joint City Council and Successor Agency to
the Community Improvement Commission Meeting Held on May 17, 2016. Approved.
( *16 -284 CC /16 -024 SACIC) Recommendation to Accept the Third Quarter Financial
Report for the Period Ending March 31, 2016. Accepted.
AGENDA ITEM
(16 -285 CC) Resolution No. 15156, "Approving and Adopting the City of Alameda
Operating and Capital Budget Mid -Cycle Update for Fiscal Year (FY) 2016 -17."
Adopted;
(16 -025 SACIC) Resolution No. 16 -03, "Approving and Adopting the Successor Agency
to the Community Improvement Commission Budget for FY 2016 -17." Adopted; and
(16 -285 A CC) Resolution No. 15157, "Approving Workforce Changes in the City
Attorney's Office, Finance Department, Information Technology Department, Public
Works Department and Police Department." Adopted.
The Finance Director gave a Power Point presentation.
Special Joint Meeting
of the City Council and the Successor Agency to the
Community Improvement Commission
June 7, 2016
1
Councilmember /Commissioner Daysog stated many cities' portion of the property tax
revenue is approximately 16 to 18 %; the City of Alameda does have a high portion at
25 %, relative to other cities; he would like clarification of the difference.
The City Manager responded the percentage is related to Proposition 13.
Mayor /Chair Spencer inquired if staff would come back with more information on
property tax revenue.
The Finance Director responded in the affirmative and continued the presentation.
Vice Mayor /Commissioner Matarrese inquired if the rate to the City goes up when
CaIPERS' returns are higher, to which the Finance Director responded in the
affirmative.
The Assistant City Manager stated the Council set aside $3 million last year to offset the
increase.
The Finance Director continued the presentation.
Mayor /Chair Spencer stated that she would like clarification on the Police Department
vacancies.
Vice Mayor /Commissioner Matarrese stated the positions are funded; the Council is not
withholding funds; the money is available to fill the positions.
The Police Chief stated the vacancies in the Police Department do not represent a lack
of funding from the Council.
Councilmember /Commissioner Ezzy Ashcraft inquired if traffic safety is impacted
because of the vacancies in the Police Department.
The Police Chief responded the Police Department went through a cut five years ago,
reducing from 92 to 88 authorized officers; there are currently 9 vacancies, which is
being addressed; his goal is to not have any vacancies a year from now.
Councilmember /Commissioner Oddie inquired about the process for hiring a Police
Officer and why the positions cannot be filled immediately.
The Police Chief responded there are three separate levels of recruitment: recruit
officers with no training and no experience who must attend a police academy,
academy graduates who have no experience and lateral officers who have graduated
from a police academy and currently work as a Police Officer in California; there are
three concurrent recruitments going on right now; for expediency sake, he would prefer
to have lateral officers and academy graduates because they can be put into field
Special Joint Meeting
Alameda City Council and the Successor Agency to the
Community Improvement Commission
June 7, 2016
2
training; the hiring process is long; the positions are now open as continuous, which has
increased the number of applicants; only 1% make it through the process.
Councilmember /Commissioner Ezzy Ashcraft inquired how many shifts a day there are
and if the shifts are fully staffed.
The Police Chief responded that the there are four shifts a day and they are not
currently fully staffed; some Police Officers have been working overtime; personnel has
been transferred from non - patrol assignments to patrol assignments because all of the
patrol teams are not fully staffed.
The Finance Director continued the presentation.
Councilmember /Commissioner Ezzy Ashcraft inquired if the City gets to keep the Safer
Grant money until the positions are filled.
The Finance Director responded in the affirmative; continued the presentation.
Mayor /Chair Spencer inquired what item we have speakers on.
The City Clerk responded the speakers are on the ferry item.
Mayor Spencer stated some speakers are leaving; inquired why the budget item is
before the ferry item.
The City Clerk responded the item is on before the ferry to get Council action before
July 1st
Councilmember /Commissioner Daysog stated there is a steep drop in the reserve ratio;
inquired what is driving the drop on the revenue side and the increase in expenditures.
The Finance Director responded the main component on the expenditure side is labor,
not necessarily raises; the revenue side is more in -line with projections.
Councilmember /Commissioner Daysog stated the operating budget is in the red, but the
City is able to manage by using the reserves.
The Finance Director stated the money is in designated reserves to use in the future.
Councilmember /Commissioner Daysog inquired if in FY 2016 -17, the City will be
overspending by $800,000.
The Finance Director responded in the affirmative; stated $500,000 of the amount may
be going away.
Special Joint Meeting
of the City Council and the Successor Agency to the
Community Improvement Commission
June 7, 2016
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Councilmember /Commissioner Daysog stated on the presentation the operating budget
grows in the negative each year.
The City Manager stated staff intends to close the gap when the 2 -year budget is
brought back in one year.
Councilmember /Commissioner Oddie inquired whether $3 million is set aside for PERS
smoothing; whether most of the expenses are due to PERS smoothing; and how $3
million will be allocated to PERS smoothing.
The Finance Director responded in the affirmative; stated the City has to figure out how
much money to draw from the $3 million for PERS smoothing in the next cycle.
Councilmember /Commissioner Oddie inquired if there is still the possibility of a fee to
cover rent expenses, the Utility Users Tax (UUT) and sales tax that staff will ask Council
to approve, to which the Finance Director responded in the affirmative.
Vice Mayor /Commissioner Matarrese inquired why the City is looking at new staff
positions, which he feels compounds the problem; he will not support new staff
positions, except for the Information Technology (IT) position because he feels the
position can save the City money with coming into the new century in IT infrastructure.
Mayor /Chair Spencer stated there should have been a separate meeting to discuss the
issue separately instead of having it in one meeting; she did not approve it last time and
will not be supporting it again.
Councilmember /Commissioner Ezzy Ashcraft inquired if the estimates are conservative
and the City has not factored in some revenues which have not come in yet, to which
the Finance Director responded in the affirmative; continued the presentation.
The Human Resources Director continued the presentation.
Councilmember /Commissioner Ezzy Ashcraft stated that she agrees the parking lot
items should be deferred to the fall.
Mayor /Chair Spencer requested any motion be separated into three parts.
Vice Mayor /Commissioner Matarrese stated that he would like the City to wait on the
new positions until there is some clarity, because some big revenue ticket items are
unknown at this time; compounding the PERS cost takes the fund balance down to
10 %; the City needs to live within its means.
Councilmember Ezzy Ashcraft moved adoption of the resolution approving and adopting
the City of Alameda operating and capital budget mid -cycle update for FY 2016 -17.
Special Joint Meeting
Alameda City Council and the Successor Agency to the
Community Improvement Commission
June 7, 2016
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Councilmember Daysog seconded the motion, with the amendment to remove changes
to the City Council benefits.
Councilmember Oddie stated if the workforce changes are not approved, he would
accept Councilmember Daysog's amendment.
Mayor Spencer inquired whether Councilmember Ezzy Ashcraft accepts the
amendments.
Councilmember Ezzy Ashcraft withdrew the motion.
Commissioner Ezzy Ashcraft moved adoption of the resolution approving and adopting
the Successor Agency to the Community Improvement Commission Budget for FY
2016 -17.
Commissioner Matarrese seconded the motion, which carried by the following voice
vote: Ayes: Commissioners Daysog, Ezzy Ashcraft, Matarrese and Oddie — 4. Noes:
Chair Spencer — 1.
Vice Mayor Matarrese moved adoption of the work force changes resolution, with the
exception of the new positions.
Councilmember Daysog stated that he believes the net increase of 3 workers is
secondary to what is causing the widening budget deficit; he will support staff
recommendations, except the City Council increases.
Mayor Spencer stated the resolution only speaks to the workforce changes.
The City Manager stated there is one position in the City Attorney's Office, two in the
Finance Department; one position in the Finance Department is replacing two part time
employees.
The motion failed due to lack of a second.
Councilmember Oddie moved adoption of the resolution approving workforce changes
in the City Attorney's Office, Finance Department, Information Technology Department,
Public Works Department and Police Department.
Councilmember Daysog seconded the motion.
Under discussion, Councilmember Daysog stated the net increase is secondary to what
is driving the budget deficit; he also feels the Police Chief is seeking to fill vacant
positions to provide the quality of safety that is needed in Alameda.
On the call for the question, the motion carried by the following voice vote: Ayes:
Special Joint Meeting
of the City Council and the Successor Agency to the
Community Improvement Commission
June 7, 2016
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Councilmembers Daysog, Ezzy Ashcraft and Oddie — 3. Noes: Vice Mayor Matarrese
and Mayor Spencer — 2.
* **
Mayor /Chair Spencer called a recess at 9:32 p.m. and reconvened the meeting at 9:39
p.m.
* **
Councilmember Daysog stated as a result of the Balanced Revenue Index (BRI), as
revenues come in, labor gets a portion of the upside so the City is never ahead of the
curve; the deficit is not being driven by the addition of three new workers; Council's
responsibility to the residents of Alameda is to keep City Hall running and fill the
vacancies.
Councilmember Daysog moved approval of staffs recommendation on the budget with
two modifications: not include increases on the City Council side and if cuts are to be
made, General Fund and non - General Fund point of contact services, such as Library
and Parks Departments, are prioritized.
Councilmember Daysog's motion failed for lack of second.
Councilmember Oddie moved adoption of the resolution approving and adopting the
operating and capital budget mid -cycle update for FY 2016 -17.
Councilmember Ezzy Ashcraft seconded the motion.
Under Discussion, Councilmember Ezzy Ashcraft inquired what amount public safety
derives from the BRI as part of the labor negotiations.
The Assistant City Manager stated the labor contracts were approved included
increases tied to the BRI for public safety; as part of the labor contract, public safety
employees are also contributing to an Other Post - Employment Benefits (OPED) Trust.
Mayor Spencer called the question.
Councilmember Oddie seconded calling for the question.
On the call for the question, the motion carried by the following voice vote: Ayes:
Councilmembers Ezzy Ashcraft, Oddie and Mayor Spencer — 3. Noes: Councilmember
Daysog and Matarrese — 2.
ADJOURNMENT
There being no further business, Mayor /Chair Spencer adjourned the meeting at 9:49
p.m.
Special Joint Meeting
Alameda City Council and the Successor Agency to the
Community Improvement Commission
June 7, 2016
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Respectfully submitted,
Lara Weisiger
City Clerk and Secretary, SACIC
The agenda for this meeting was posted in accordance with the Sunshine Ordinance.
Special Joint Meeting
of the City Council and the Successor Agency to the
Community Improvement Commission
June 7, 2016
7