Speaker 2: Thank you. So the 3D is, by the way, for the audience who may not have an agenda recommendation to accept the fiscal year 20 1415 audited financial statements in compliance reports. And I had a question or something that I just wanted to know a little bit more about from Exhibit one, which is the fiscal year 20 1415 City of Alameda Comprehensive Annual Financial Report. Very nicely done, I might add. So my question is. On page 14. And it. This is where at the. Well, it looks like Roman numeral eight. But it's it will say page 14 of 205. And you're your iPad screen there. And this is about the EOC, the emergency operation center and fire stations three, which are underway. You can drive by and see that they're under construction. My question is, or it's more of a request that I would like regular updates on the city's emergency preparedness efforts. Just last week, if you followed the news, it was like earthquake week around the world because tragically we had earthquakes in Myanmar, southern Japan and Ecuador, and there's earthquakes followed by substantial aftershocks and a lot of, you know, loss of life, injury, damage to property. So what I said in my notes was that the building of the EOC, the Emergency Operations Center, is only part of the emergency preparedness for our city. It's a building with with functions that take place out of it. But even before that building is completed and, you know, we do the ribbon cutting and inhabited, we I still want to know that our city is is ready if we were to. God forbid that if we were to experience an earthquake. And I think just maybe yesterday was the 110th anniversary of the great San Francisco earthquake. So what I'm asking from city staff is can we and not so much you sit here, but can we have some regular updates maybe once, twice a year on the city's emergency preparedness efforts, where we are, what we've accomplished, what we still have to accomplish, how the public can get involved. That's my request.
Speaker 0: Yes, we can do that.
Speaker 2: Okay. And then the one other thing, as long as I'm here, this is just it's on actually the very next page of this report, which is page 15. And it talks about other business development highlights that cost plus world market headquarters are moving down limited by the end of this year and it'll energy. Some of us took a great tour of this clean tech company a week or so ago, and then also that the Alameda Landing Shopping Center continues to generate boosting activity in the west end of Alameda, contributing to the city's property and sales tax base. I just wanted to say, my husband and I had occasion to go out there this last Saturday night. It was a lovely evening and they're really doing things right out there. There's the restaurants and the ice cream place and frozen yogurt in the shops. Everything was open and bustling. Lots of families out strolling on these nice wide sidewalks. Everything's very clean. And it's just, as I was saying to one of the staff, it's kind of nice to see a development that actually looks like the renderings that were presented to us way back when I was on the planning board. So and if you haven't checked out Alameda landing yet, get out there and see what's going on on that into town. So those are those are my questions and comments. Thank you.
Speaker 1: Remember Day South?
Speaker 5: Yes. Thank you very much. I'm glad this item was pulled for the members of the public who have the time. I really encourage you to take a look at the Kafir, which is short for comprehensive, audited financial report, annual and comprehensive annual financial report, which is the city audit. And there's a lot of there's a wealth of information in there and there's a lot a new type of information that had not been in there previously or perhaps maybe I didn't notice in in recent in the most recent gaffers. But certainly when you compare the caf from the early 2000, the wealth of information is is quite abundant. In an earlier email this afternoon, I sent to the city manager's staff. I was I wanted to make several points, but one of the things that I really kind of want to just address was the on page 13, there's reference to the internal service fund and this is like a reserve of sorts for a variety of cost centers like the reserve for equipment replacement, essential services, worker's compensation insurance. And a lot of those and I am happy to report a lot of those have a positive balance and also as well as into the millions. But I just want to make sure that, for example, when we see that the internal service fund for equipment replacement is at $5.5 million, while in and of itself, $5.5 million is always good. Can we do we have any comparison? So 5.5 relative to some kind of benchmark that that we have in mind, are you able to report on that?
Speaker 6: Good evening, Mayor. Council members Eleanor Dare, finance director for the city. So the I looked into it because the question came in early. So there's no real benchmark. There's no necessarily a policy of the city that I'm aware of. However, the way we kind of look at it, one, you can't really compare all the cities at the same time together and just make them equal because it's really in this particular situation depends on the fleet that really what that fund represents within our city. And the way I look at it is what is the value, depreciable value of the life of these assets. So my test actually was to answer your question, what is the cost, how much those assets have been depreciated? And we had about 35% of it. So what that means is if you would have been at 50, you would have been right about in the middle, meaning you are replacing your equipment early enough, but not too early where you know it's too new. So we're at about 35%. So we're a little below, but we're not fully depreciating it. So which means we are renewing our vehicles and equipment.
Speaker 5: Wonderful. And that's not where the point of this is not for you to suddenly, you know, charge out all the percentages, which would be great. But it's just a note that that for the internal service fund, for many of the cost centers in there and I'll just name a few. Equipment replacement, essential services fleet, maintenance workers compensating for many of the cost centers. We have a positive number there, which is good for the workers compensation insurance where we are in the negative at $1.5 million. But but I suspect we can work on that. So that's basically the point that I want to just raise. Now, the other point that I just want to mention for the viewing public, should you ever get a chance to download, the capper is to take a look at, for example, page 67 of the capper. Page 67 shows the value of the infrastructure of the city of Alameda, the value of the street, the value of the sewers, the dollar value of sidewalks, and also includes a accumulative and an annual depreciation amount. So if anyone is so interested in finding out, you know, the streets that that we drive on or the sidewalks that we walk on or the parks that we play in, what is the economic value of that? It's all in the kafir. So go to page 67 for that. And finally, I want to end up by mentioning that on page 77, there is discussions about our pension plans and on page 87, there's discussion about that are CalPERS unfunded liabilities. Most interesting, though, is if you went to page 88, there is a sort of a stress test because the unfunded liabilities that are reported in on page 87 are partly a function of the return rates that CalPERS had had projected. So they are projecting roughly 7.5% return rates. And then that then has impacts on what is the unfunded liabilities with regard to the CalPERS retirement. And by unfunded liabilities, we mean on several things. On the one hand, for all the workers and the people who are retired, we have an understanding as to how much we need to set aside for their retirement. A, B, we also know how much we're actually how much dollars we actually have. So the difference between what we need to do and what we can with reasonable precision indicate how much we have. That difference is the unfunded liability. So how much we have to set aside is also a function of of the rate that CalPERS uses to the credit of the Kafir, which is, I think, perhaps maybe a new thing. There's also on page 87 indication that, well, what if instead of using an 8.7.5 rate of return for CalPERS? Well, instead of using the 7.5 rate of return and the unfunded liabilities that's generated as a result of that, what if CalPERS rate of return was 6.5% and then on page 88, then there is a corresponding unfunded liability , which is even greater, which would be even greater. But the point, though, is that the information is here for the public to mull over and look at. So I just wanted to give a shout out to this report to your guys's great work. And I understand that our. Our auditors, a new auditor, too. So it was very enjoyable going through this report. Thank you very.
Speaker 1: Academy member.
Speaker 2: Ashcroft I'm happy to move approval. I admit that we recommend that we approve the recommendation to accept the fiscal year 20 1415 audited financial statements and compliance reports.
Speaker 1: All those in favor I motion carries unanimously. Thank you. I will now adjourn the Joint City Council and successor agency to the Community Improvement Commission. S.A.C.. I see. Now we will continue. But the regular city council meeting at 7:12 p.m..
Speaker 0: Roll Call has been noted. Five present.
Speaker 1: Thank you. Agenda changes. I will be pulling item five J and item six B has been resolve. The tenant and the landlord have reached an agreement that that item will not be heard tonight. O member J sort of.
Speaker 5: I will have to recuse myself from item five g so perhaps. Well, anyways, yes, I'll have to.
Speaker 1: But then I'll also be pulling item five G. Any other items? Thank you. Do we have a motion for the balance?
Recommendation to Accept the Fiscal Year 2014-15 Audited Financial Statements and Compliance Reports. [City Council/SACIC] (Finance 2410)