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2024-02-20 Special CC SACIC Minutes MINUTES OF THE JOINT MEETING OF THE CITY COUNCIL AND SUCCESSOR AGENCY TO THE COMMUNITY IMPROVEMENT COMMISSION (SACIC) TUESDAY- -FEBRUARY 20, 2024- -6:59 P.M. Mayor/Chair Ezzy Ashcraft convened the meeting at 7:16 p.m. Councilmember/Commissioner Vella led the Pledge of Allegiance. ROLL CALL - Present: Councilmembers/Commissioners Daysog, Herrera Spencer, Jensen, Vella and Mayor/Chair Ezzy Ashcraft— 5. Absent: None. CONSENT CALENDAR Councilmember/Commissioner Jensen moved approval of the Consent Calendar. Councilmember/Commissioner Herrera Spencer seconded the motion, which carried by unanimous voice vote - 5. [Items so enacted or adopted are indicated by an asterisk preceding the paragraph number.] (*24-001 SACIC) Minutes of the Special Joint City Council and SACIC Meeting Held on December 19, 2023. Approved. AGENDA ITEM (24-076 CC) Receive an Informational Report on Pension Funding and the Pension Rate Stabilization Program. *** (24-077 CC) Mayor/Chair Ezzy Ashcraft stated 20 minutes is needed for the presentation. Councilmember/Commissioner Herrera Spencer moved approval of allowing 20 minutes for the presentation. Councilmember/Commissioner Jensen seconded the motion, which carried by unanimous voice vote - 5. *** Ira Summer, Pallity, gave a Power Point presentation. *** (24-078 CC) Councilmember Vella moved approval of allowing an additional 3 minutes for the presentation. Special Joint Meeting Alameda City Council and Successor Agency 1 to the Community Improvement Commission February 20,2024 Councilmember/Commissioner Herrera Spencer seconded the motion, which carried by unanimous voice vote - 5. Mr. Summer completed the presentation. In response to Councilmember/Commissioner Herrera Spencer's inquiry about where Alameda stands in comparison to other cities and the statistics chosen, Mr. Summer stated it depends on what the revenue sources and ability to pay. Councilmember/Commissioner Herrera Spencer inquired about the comparison to other cities, to which Mr. Summer responded that he believes something Alameda has going for it is the amount of development going on; stated hopefully new revenue will be coming into Alameda; strong revenue growth is expected in the future, which gives Alameda an opportunity to take some of the extra money and help pay off obligations. Councilmember/Commissioner Jensen inquired how Alameda has been effective in addressing its pension liability. Mr. Summer responded Alameda's general approach has been to pay extra money directly to CaIPERS as additional contributions, and other funds go into the 115 Trust. Councilmember/Commissioner Jensen stated there has been turnover, especially in public safety; inquired whether Public Employees' Pension Reform Act (PEPRA) is another way of addressing the liability, to which Mr. Summer responded in the affirmative. (24-079 CC/24-002 SACIC) Resolution No. 16135, "Amending the Fiscal Year (FY) 2023-24 Budget." Adopted; and (24-079A CC) Resolution No. 16136, "Approving Workforce Changes for FY 2023-24." Adopted. The Budget Manager gave a Power Point presentation. In response to Councilmember/Commissioner Herrera Spencer's inquiry about non- routine litigation matters, the City Attorney stated the City typically does not budget a litigation line item for Alameda Point given that litigation is infrequent; the expense is unexpected, which is why it shows up; the City is undergoing a number of affirmative litigations, meaning the City is the plaintiff bringing the action; the City is currently the plaintiff for three unlawful detainer actions at Alameda Point. Councilmember/Commissioner Herrera Spencer inquired whether unlawful detainer could be defined, to which the City Attorney responded it is eviction proceedings. Special Joint Meeting Alameda City Council and Successor Agency to the Community Improvement Commission 2 February 20,2024 Mayor/Chair Ezzy Ashcraft inquired if the party has failed to pay rent, to which the City Attorney responded in the affirmative. Vice Mayor/Commissioner Daysog stated the presentation shows the unassigned fund balance to be $33.2 million; inquired where the City is in terms of the unassigned fund balance target. The Finance Director responded the City has met its target for 20% reserves, plus an economic uncertainty target of 5%. Vice Mayor/Commissioner Daysog stated the unassigned fund balance is $33.2 million, however the total fund balance is roughly $104 million, because of all the different categories with funds set aside; expenditures are significantly exceeding revenues for the year, but there is still room to maneuver considering the fund balance. The Finance Director stated when Council adopted the budget in June, staff programmed a significant amount of residual fund balance. Mayor/Chair Ezzy Ashcraft requested clarification about the target percentages. The Finance Director stated Council has a policy to set aside 20% of General Fund expenditures for earthquakes, as well as another policy of 5% for economic uncertainty; between the two, 25% is sitting in reserves, which is a great place to be. Councilmember/Commissioner Herrera Spencer inquired about charging people to use electric car chargers. The Public Works Director responded ten charging ports were placed at Seaplane Lagoon Ferry Terminal and will begin charging the public to make use of those facilities; stated the budget addresses both revenue coming in and electricity expense; chargers were installed in the Civic Center garage about a decade ago and have been free; electricity pass-through cost are being established. Councilmember/Commissioner Herrera Spencer inquired whether the chargers at Alameda Municipal Power (AMP) would continue to be free. The Public Works Director responded the budget does not address AMP's charging. Urged Council to ensure there are sufficient resources to achieve adopted goals made around street safety and the climate emergency: Cyndy Johnsen, BikeWalk Alameda. Councilmember/Commissioner Jensen inquired about the progress regarding transportation projects and how the recent staffing increase addresses delays; further inquired whether there is potential for other transportation grant funding to move forward quicker. Special Joint Meeting Alameda City Council and Successor Agency 3 to the Community Improvement Commission February 20,2024 The City Manager responded four new engineers were hired in the last year; stated since being hired, things are moving along faster; delays were in part due to a staffing and recruitment challenges; staff is looking at bringing Council other project options during mid-cycle in order to potentially expedite some projects, however, there may be some trade-offs due to a shortage of funding; staff is passionate and focused about trying to keep on schedule; construction costs have been higher; an annual report on transportation plans will be coming on March 19th with more information and a status report. Councilmember/Commissioner Vella stated her preference is to have the conversation lead into the annual budget, as opposed to mid-year. The City Manager stated the mid-cycle budget is the second regular meeting in May; at that work session, staff will present transportation options and what it would take to get back on schedule; there may be projects that require significant grant funding; staff has talked about strategically deploying resources a little differently and is working on to see if operational items can move faster. Mayor/Chair Ezzy Ashcraft stated the City should charge for electric vehicle charging; providing free charging is not a City function; some people leave cars charging overnight at Civic Center garage; charging will be a good incentive to get people to move their vehicles. Councilmember/Commissioner Herrera Spencer stated that she does not have a problem charging, but was unsure whether it had been announced to the public; questioned why the City would not charge at AMP's building. Vice Mayor/Commissioner Daysog stated although the City has had a healthy fund balance in years prior, he recommends moving with caution in terms of digging into the fund balance in the next year. Mayor/Chair Ezzy Ashcraft stated it is hard to put a price tag on road safety and protecting human life; she would like to see how much can be done and how soon it can be done; given the presentation about pension liabilities, she would like to direct staff to return with options for a discretionary contribution; the City has an obligation to current employees and retirees to do what the City said it would do at the time of hire. Vice Mayor/Commissioner Daysog stated there should be traffic safety measures; rather than dipping into the fund balance reserve, tough decisions must be made in terms of shifting money from other programs. Councilmember/Commissioner Vella moved adoption of the resolutions. Councilmember/Commissioner Jensen seconded the motion. Special Joint Meeting Alameda City Council and Successor Agency to the Community Improvement Commission 4 February 20,2024 Under discussion, Councilmember/Commissioner Herrera Spencer requested the motion be bifurcated. Councilmember/Commissioner Vella moved adoption of the budget resolution. Councilmember/Commissioner Jensen seconded the motion, which carried by the following voice vote: Ayes: Councilmembers Daysog, Jensen, Vella and Mayor Ezzy Ashcraft— 4. Noes: Councilmember Herrera Spencer — 1. Councilmember/Commissioner Jensen moved adoption of the workforce resolution. Councilmember/Commissioner Vella seconded the motion, which carried by unanimous voice vote - 5. ADJOURNMENT There being no further business, Mayor/Chair Ezzy Ashcraft adjourned the meeting at 8:30 p.m. Respectfully submitted, Lara Weisiger, City Clerk Secretary, SACIC The agenda for this meeting was posted in accordance with the Sunshine Ordinance. Special Joint Meeting Alameda City Council and Successor Agency 5 to the Community Improvement Commission February 20,2024