Dec 1 2015

The Budget Advisory and Financial Planning Committee will update work on Piedmont’s Municipal Services Tax Wednesday, December 2. The committee is charged with considering the need for a voter approved parcel tax and the proposed duration of the tax.

The Committee will consider their recommendation to the City Council in a report on the Special Municipal Services Tax.

The public can attend and participate in the 6:30 p.m. meeting held in the Police Department Emergency Operations Center, 403 Highland Avenue.

There will be no audio record kept of meeting discussion or presentations. Written support materials have not been disseminated. No broadcast via the internet or cable TV will be available.

Nov 2 2015

On Thursday, November 5, the Budget Advisory and Financial Planning Committee will update work on Piedmont’s Municipal Services Tax. The committee is charged with considering the need for a voter approved parcel tax and the duration of the tax.

The Committee will discuss:

  •  Accounting and Financial Reporting of the Other Postemployment Benefits
  •  Duration of the Special Municipal Services Tax
  •  Update the Committee’s review of the Parcel Tax
  •  Future meetings

The public can attend and participate in the 6:30 p.m. meeting held in the City Council Conference Room, City Hall.

There will be no audio record kept of meeting discussion or presentations. Written support materials have not been disseminated. No broadcast via the internet or cable TV will be available.

Nov 1 2015

Since 2010, 13 top Piedmont administration positions have undergone a turnover.  

The turned over positions are:

City Administrator

Fire Chief

Police Chief

Public Works Director

Finance and Human Resources Director

Recreation Director

City Clerk

Planning Director

Parks and Project Manager, Public Works 

City Attorney (Outside Contract)

City Engineer (Outside Contract)

Recording Secretary (No replacement)

Building Official

Current  > City Directory 

Personnel Changes and a New Position –

Recently announced personnel changes include the retirement of Mark Feldkamp, Parks and Project Manager in the Public Works Department, Kate Black, Planning Director, and Erick Cheung, Finance and Human Resources Director, who was hired March 6, 2013.   Feldkamp, a 20-year employee, will be replaced by Nancy Kent. Black, a 17 year employee, will be replaced on an interim basis by Kevin Jackson, Senior Planner. Cheung’s replacement has not been announced. 

The latest personnel changes come as the City is faced with renewing the Municipal Services Parcel Tax, considering new planning laws, completing Hampton Field improvements, funding employee pension and health care costs, improving IT systems, maintaining facilities, and evaluating recreational needs.

City Administrator Paul Benoit has recommended splitting the position of Finance and Human Resources Director.   A personnel search for Cheung’s replacement has been noted as a priority and is scheduled to be considered on the November  2 Council agenda.

Recommendation from City Administrator Benoit:

“Change in Responsibilities of the Position To ensure that the City attracts a broad and strong pool of municipal finance professionals, I would propose, with City Council authorization, to redefine the job description of the Finance / Human Resources Director position to eliminate the focus on human resources (HR). As such, I would propose recruiting for the position of Finance Director. At the same time, I would propose creating a new classification to absorb some of the duties currently handled by the Finance/HR Director. The exact title, duties, and reporting structure of this new classification will be determined as the process moves forward and will be brought to the Civil Service Commission for approval. I would assign Stacy Jennings, who currently serves much of the day to day human resources work to the new classification.

“Should the City Council approve this direction, I would suggest that we actively pursue recruitment for a Finance Director and, on a parallel track, make the necessary adjustments to the affected position descriptions. Also, Mr. Cheung and I have been meeting with a retired municipal Finance Director who is interested in and capable of serving the City in an interim role while the recruitment is in process. I will conduct additional background research on the individual and, depending on the results of that research, will propose a professional services contract for Council consideration.”

Read the staff report.

The Council has not yet addressed the long term financial impact of adding an additional administrative position.

Allocation of $500,000 at November 2 Council meeting. – 

In 2009 and 2010 revelations from the staff showed costly overruns for the private underground utility district that became a $2.5 million City expense.  Lawsuits ensued with the City recently receiving a settlement of $500,000 for the engineering work of Robert Gray and Associates. City legal action against the engineering firm Harris and Associates continues.

There has been no mention of returning the $450,000 taken from the PG&E Piedmont 20A undergrounding reserves. (Read PCA articles explaining 20A funds  here and Council candidate positions on the $450,000 taken from the 20A PG&E reserves here. Read all PCA articles on undergrounding here.

“20A Districts: 20A funds are provided by PG&E to the City of Piedmont through a requirement in the Public Utility Code which annually sets aside a portion of PG&E revenue for each utility jurisdiction. 20A funds are restricted in use and intended for undergrounding arterial streets. Primary arterial streets such as Highland Avenue, Grand Avenue, and the Civic Center block of Vista were completed using 20A funds.   In the 1980’s the Piedmont City Council designated all of the City’s 20A funds for undergrounding Grand, Moraga, and Oakland Avenues. The undergrounding of Grand Avenue was completed and paid for using 20A funds.  The undergrounding of Moraga and Oakland Avenues has not yet been accomplished.  After 2002, the City Council changed its policy and began the practice of using 20A funds to assist private undergrounding (20B) projects – specifically, the Piedmont Hills, Central Piedmont, and Sea View Avenue Undergrounding Districts.” PCA article 

Details: July 2, 2007 minutes, at page 3-4July 7, 2007 staff Report, p. 3May 7, 2007 staff report, p. 3May 7, 2007 minutes;

Staff report on $500,00 allocation:

“On July 6, 2015 the City Council executed a settlement agreement with Robert Gray & Associates (RGA) for $500K to settle claims related to the creation and construction of the Piedmont Hills Underground Assessment District. The payment was received by the City in August and credited to the City’s General Fund reserves. In keeping with the Council’s prior decision to allocate one-time excess reserves to address needs, staff is recommending that the funds be transferred to the Facilities Maintenance Fund. This does not appropriate the funds in the Facilities Maintenance Fund to any specific project or use, which the Council can do at a future meeting or during the budget process.”  Read the staff report.

Council – 

Mayor Margaret Fujioka started her service as a council member in 2008 and Vice Mayor Jeff Wieler returned to the Council early in 2010. Newer members of the Council are Teddy King, Bob McBain, and Tim Rood.  At the next municipal election in November of 2016, Fujioka’s seat will become vacant when she will be termed out. McBain can run for re-election in 2016 for another four year term.  Wieler will have two more years remaining in his second term; in 2018 his seat will become vacant.  Rood and King’s terms expire in 2018.  Both can seek re-election.

By City Charter, a regular Council term last four years.  Individuals can serve for two consecutive terms, and may seek re-election to additional terms after retiring for 4 years.

Margaret Fujioka, Mayor mfujioka@ci.piedmont.ca.us (510) 463-7821 2nd Term Exp. 11/16
Jeff Wieler, Vice Mayor jwieler@ci.piedmont.ca.us (510) 428-1648 2nd Term Exp. 11/18
Teddy Gray King tking@ci.piedmont.ca.us (510) 450-0890 1st Term Exp. 11/18
Robert McBain rmcbain@ci.piedmont.ca.us (510) 547-0597 1st Term Exp. 11/16
Tim Rood trood@ci.piedmont.ca.us (510) 239-7663 1st Term Exp. 11/18

 

The November 2, 2015, Council meeting begins at 7:30 p.m. in the Council Chambers City Hall. The meeting will be broadcast on Channel 27, KCOM and on the City website.  Agenda.

Oct 28 2015

<<<<<< PCA Looking Back <<<<<<

PCA Reported in October, 1988:

  • The View and Tree Preservation Ordinance unanimously approved by the Piedmont City Council at its meeting on September 19, 1988 with a second reading to come October 3;
  • The Main Park Final Plan was previewed;
  • The City Council appointed 11 member Civic Center Parking Committee held its first meeting on September 27 to consider the resident parking complaints, enforcement, needs and costs of finding additional parking;
  • The Capital Improvement Review Committee (CIP) hired California State University at Hayward to conduct a telephone survey of 400 Piedmont homes with copies of the questionnaire available for other residents to complete;
  • Resident Perry Kennan asked the City Council if the City is negotiating to purchase a large lot on Moraga Avenue;
  • PCA held an election forum on the City parcel tax Measure W with panels debating for and against the measure.

 

PCA journalism is the work of volunteers, devoting a few hours a month to provide a service to our neighbors.

Do you have a special interest or concern in Piedmont and a few hours to spend reporting on it? Volunteer your time and talent reporting on a civic issue for PCA. Attend a public meeting and report on it or analyze just one agenda item.
PCA welcomes letters, opinions, articles, etc.
Send your contributions to editors@piedmontcivic.org

The Piedmont Civic Association (PCA) is open to all Piedmont residents. There are no fees or dues. 

Oct 20 2015
On October 19, Council members voted to ask the Budget Advisory and Financial Planning Committee (BAFPC) to not only evaluate the needs for a Municipal Services Parcel Tax, but to consider the term of a tax. Terms discussed ranged from 4 years to a permanent tax.  Council members Rood, King, and McBain indicated their inclination to continue a 4 year term to the tax as an important way to involve the community in City decisions.  Vice Mayor Wieler indicated his preference for a longer term on the tax.  All acknowledged the term and amount of any proposed parcel tax was a decision for the Council, rather than the Committee.
~~~~~~~~
Prior to the October 19th Council meeting, the following letter was sent to the Councilmembers to include in their consideration:
 OPINION:
“I advise you not to direct the BAFPC to provide a recommendation on the duration of the Municipal Services Special Tax as part of its periodic examination of the tax. The tax has always been used to take the pulse of Piedmont on its level of support for municipal services through additional tax dollars and, as the table in the staff report shows, that support can be variable. A survey of the residents every 4 years in the form of a vote is perfectly acceptable and appropriate to both assess public support and provide sufficient long-term planning, given the high level of support for the tax.  A longer period between such endorsements could direct staff and future Council in directions not supported by residents. And with what appears to be the dissolution of the Municipal Tax Committee and the oversight that committee provided, voters may perceive a longer duration of the tax as a reduction in voter oversight.”
“If you do direct the BAFPC to provide a recommendation on this matter,  also direct the Committee to balance the need for that tax with the annual Real Property Transfer Tax receipts which are at historic levels.  It was the recommendation of the Municipal Tax Committee that transfer tax receipts over $3M be considered “one time” windfalls and not be incorporated into annual budgeting analysis for the City.  The reason is so that the City does not get ahead of itself with spending and benefits that it cannot sustain.  Indeed, one year when I was on City Council, we did not levy the parcel tax because the transfer tax receipts were $3M.  If the Committee is to consider lengthening the duration of the Municipal Parcel Tax, then also have it consider self-correcting measures to maintain City spending at sustainable levels.”
Garrett Keating, Former City Council Member
Editors’ Note: Opinions expressed are those of the author.
Oct 18 2015

Contributions to CalPERS by Piedmont and other communities would have to increase if assumed return on investments is lowered.

Unexpected increases in costs to Piedmont for CalPERS pensions are not new. In 2013 Piedmont’s Budget Advisory & Financial Planning Committee (BAFPC) recommended that the City exit from the CalPERS Side Fund of the City’s pension obligations by refinancing it. The refinancing of the obligation was approved.

The 2004 Piedmont City Council ballot argument for Municipal Tax Measure S stated, “More than half of Piedmont’s increased pension costs are caused by past investment losses by the State pension fund.  Piedmont’s annual pension contribution will increase by $600,000 even without any pension plan changes.”

CalPERS Board Meeting this week

The California Public Employees’ Retirement System (CalPERS) Board will be meeting October 19-21. In May the staff proposed to the Board that its investment return goal be lowered from 7.5 percent annually to as low as 6.5 percent by increments of 0.05 percent to 0.25 over years or decades.  In 2011 the goal was lowered from 7.75 percent annually to the present rate of 7.5 percent. CalPERS tried to lower its risk of big investment downturns last year by pulling out its entire $4 billion investment in 24 hedge funds and a half-dozen hedge funds of funds. With more than $302 billion, CalPERS is the largest pension fund in the United States despite its CalPERS loss of about 25% of assets in 2008- 2009.

According to CalPERS’ Chief Financial Officer Cheryl Eason:

“… lowering the rate of return would also enable officials to build a portfolio less vulnerable to market swings. The current 7.5% rate of return has a 12% volatility rate. Reducing the rate to 7%, as one scenario does, would translate to a 10% volatility rate. A 6.5% rate of return would equate to a volatility level of 8.5%, she said.”

(read the article from Pensions & Investments here)

The proposal is an acknowledgement that 8 percent returns are unlikely, given low inflation and interest rates. CalPERS reported returns of 2.4% for the fiscal year ended June 30.

“It’s also a reflection of the reality of investing in conventional investments,” Amy Resnick, editor of the trade publication Pensions & Investments said. “Assumptions of higher returns are just not realistic nowadays.”

Jeffrey MacLean, CEO of investment consulting firm Verus, Seattle, said CalPERS’ time frame for the portfolio volatility reductions is so long that significant investment losses could mute its effectiveness.

As target investment returns decrease, contributions from employees and their employers will be required to fund CalPERS pensions.

Previous PCA articles on CalPERS:

Stanford Institute on CalPERS

Problems for CalPERS leaders

Piedmont Pension Costs Rising

Piedmont 2004 Municipal Tax Ballot Measure S

 

Oct 18 2015

On Wednesday, October 21, the Budget Advisory and Financial Planning Committee will meet at 6:30 p.m. in the Police Department Emergency Operations Center, 403 Highland Avenue.  The meeting includes discussion of City pensions, the Information Technology Strategic Plan and  Piedmont’s need for a renewed and/or increase of the City parcel tax.

The public can attend and participate in the meeting. There will be no audio or written record kept of meeting discussion or presentations. Additionally, no broadcast via the internet or cable TV will be available.

Sep 22 2015

The Budget Advisory & Financial Planning Committee will meet in the Police Department Emergency Operations Center, 403 Highland Avenue on Wednesday, September 23, at 6 p.m.  The Committee will review:

  •   7- year Budget Projections
  •  Parcel Tax
  •  Future agenda items

The meeting is open to the public.  There will be no public broadcast of the meeting.

May 7 2015

                      Piedmont’s School Support Tax

Piedmont’s current school tax is perfectly legal, but is an unfair tax because (1) it increased the tax on smaller lots while reducing the tax on larger lots, and (2) because owners of two-parcel lots pay twice as much as others. This tax was hastily approved for the ballot by the School Board at a Special Meeting two years ago following a State Appeals Court ruling that school taxes must apply uniformly to all taxpayers.

I am proposing a more equitable replacement tax based on the Alameda Unified School District’s successful tax that, with minor changes, is also perfectly legal.

Alameda’s tax is a uniform rate per square foot of building that applies to all taxpayers without regard to size or use of parcel. It was approved more than three years ago by Alameda voters and remains intact to this day. Owners of residential and commercial properties pay in proportion to the size of buildings, which favors the smaller over the larger, the reverse of Piedmont’s regressive tax.

Given the economic vitality of this community, it is unconscionable that we raise more money for our schools from the owners of small lots than from the owners of large lots. There is time now to place a measure on the June 2016 ballot that will enable this “Alameda-like” tax to become effective in Piedmont for FY2016-17, but only if our School Board delays no longer an open public process with unbiased information.

William Blackwell

Editors’ Note: Opinions expressed are those of the author.
Nov 10 2014

As of November 10, 2014, Piedmont’s long time representative on the East Bay Municipal Utility District (EBMUD), Katy Foulkes,  appears to have been defeated. Foulkes well known in Piedmont as a former council member and mayor had served on the EBMUD Board for 20 years winning election five previous times.

Foulkes dominated in Contra Costa County, while Young led in Alameda County where most of the votes were cast.  Marguerite Young was heavily supported by the Sierra Club and unions.  Over 50,000 votes were cast in the election with Young winning by approximately 2,000 votes.

Unofficial election results, as of November 10, 2014, are:

Foulkes – 25,060

Young – 27,128