Jan 3 2016

City revenues from Real Property Transfer Tax (RPTT) have far exceeded projections.

The following is a letter sent to the Piedmont City Council.

Jan 2, 2016

Piedmont City Council

Re: Jan 4 Agenda Item 5: Parcel Tax

Dear Mayor Fujioka and Council,

The 1990-1991 Real Property Transfer Tax (“RPTT”) was $384,494 (2007 MTRC Report attached). The 2014-15 RPTT is $3.9M (Eric Cheung 20151102 attached). This steady, inexorable 10.13% annual increase is omitted from the 2015 BAFPC Report and at this rate the RPTT will be over six million dollars in five years.

There are many more up years than down years for the RPTT and the increases include 43%, 50%, and 94%. From 1991 to 2007 the largest decrease is -16%. (2001-2011 City table and 2011-2015 Budget material attached).

While the 2015 Budget Advisory and Financial Planning Committee (BAFPC) Report is admirable in some respects, the bias is a conservative approach from both a demand and supply perspective. The future may hold more financial demands on the City and the BAFPC is prudent here. However, the supply side of taxpayer funding is presented in an overly conservative approach by underestimating RPTT and real property tax revenue. Staff estimates support this approach; a recent example is the $2.8M estimated for 2014-15 RPTT in the proposed budget when the actual figure is $3.9M.

The BAFPC is overly conservative in estimating ever increasing revenues in other areas. The BAFPC uses a $1.6M estimate for average Real Property value in town which is inconsistent with recent sales data which reveals the average Piedmont home sold for $2.13M and the median sale was $2M. Coming online are eight new homes in Piedmont, the seven Piedmont Station units and the Lexford Road project. And as the aging-in-place Proposition 13 residents die off, their low value homes will be sold and represent a much higher tax revenue basis.

Even during the worst economic downturns, Piedmont property values do not plummet like so many other Cities and regions. There is a flattening out and slowdown of sales. And then the inexorable march upwards begins again. (The largest decrease in the RPTT from 1990 to present occurred from 2006-07 to 2007-08 at a negative 32%.)

Regionally Oakland has become a destination and is enjoying increasing home values as those wishing to live in San Francisco are priced out. This is fostered by tech companies moving to Oakland. Piedmont continues to be the premier sought after location, especially for the increasing number of affluent Techies flocking to Oakland.

No increase in the Parcel Tax is warranted or can be reasonably justified. Despite the City Hall and the Post attempting to take advantage of a tax compliant resident base, as with the ill-conceived Sewer tax of 2012, taxpayers saw through that scheme and taxpayers will view any increase in the parcel tax in the same manner. I find it odd that the asked for $11M increase of the 2012 Sewer Tax was never explained, given that the same sewer mainline completion and EPA compliance is now being accomplished for $1M.

With revenues as robust as they are today, I ask the Council to forgive the coming year’s Parcel Tax.

Respectfully,

Rick Schiller, Piedmont taxpayer

http://www.ci.piedmont.ca.us/html/govern/staffreports/2016-01-04/parceltax.pdf

Editors’ Note: Opinions expressed are those of the author.
Dec 17 2015

Report on December 7th City Council Meeting

by Piedmont High School Student Olivia Arrabit

    On Monday December 7, 2015 I attended the Piedmont City Council meeting in the Piedmont Council Chambers at City Hall.  The Council meets the 1st and 3rd Mondays of every month to discuss their decisions on behalf of the city.  There were six major issues on the agenda, the first was consideration of a report from the Budget Advisory and Financial Planning Committee regarding the Municipal Services Special Tax.

Bill Hosler, Chair of the Budget Advisory and Financial Planning Committee, gave a summary of the report to start the discussion.  The Committee members went around Piedmont looking at facilities to assess how long they would last or how long before they needed repair.  After making observations, Mr. Hosler and the Committee concluded that in order to maintain the city facilities in Piedmont, the parcel tax should be kept and raised up to 50% of its current level to pay for the repairs and upgrades.

After he gave his speech a few of the Council members praised Mr. Hosler on the committee’s comprehensive findings.  Council Member Teddy G. King even said that Mr. Hosler’s paper should be entered into a masters program because it made something so dense easy to understand.

Mayor Margaret Fujioka remarked that the Council may need to consider a 50% increase as too much, but they also have to think about the fact that the tax only comes before the voters once every four years while the City depends on the tax for sidewalks, streets, etc.  Ms. Fujioka said that they should try to increase revenues while decreasing expenditures.

Vice Mayor Jeffrey Wieler used a metaphor about a boat hitting the rocks to describe the current situation.  He said that in order to steer the boat away from the rocks, the captain needs to slightly steer the boat away long before it hits the rocks for if he waited too long, the boat might not be able to avoid the rocks.  His opinion was that it was smart to start cutting back places where we can save money and to start out by only taking a little bit more money far in advance in order to avoid a huge financial problem.  Council Member Robert McBain agreed with this concept. 

The next speaker was Garrett Keating, a public speaker.  In his opinion the 50% increase was far too much, he used the words “arbitrary” and “unsustainable”.  The Council concluded that they will aim to have another discussion regarding the duration and rate of the parcel tax.

The next issue on the agenda was the consideration of the reconfiguration of parking at the intersection of Magnolia and Highland Avenues.  Council Member Paul Benoit proposed to make the area a safe loading zone during school pick-up and drop-off hours insuring that the police will be able to respond to emergencies quicker and safer.

The Superintendent of Piedmont Unified School District, Randall Booker, voiced that there was a lot of concern about this subject because many people had observed double parked cars and overly congested streets during the school day, making it impossible for police officers to pull out of and into their parking spaces.  Both Council Member Tim Rood and Robert McBain agreed with the concern, because both have had or have students attending Piedmont Schools.

The next speaker was Jennifer Cavenaugh, a mother of three children that currently attend Piedmont schools.  She attended the meeting in order to explain the trouble she has faced with that intersection and offer some insight on the topic.  She said that most parents who live in upper Piedmont use the intersection as a “turn-around.” She said she experiences the traffic everyday and feels it is a huge problem.  She also voiced her concern that even if the City prohibited the “turn-around” area, the parents picking up their children from school would just find somewhere else to turn around, causing the same congestion but in a different area.

The Council Members heartily agreed with Ms. Cavenaugh, and responded by passing two motions unanimously that made all of the parking from 400 to 800 Magnolia 30-minute parking and loading zones during pickup and drop-off times.

In my opinion, I don’t think this will end up working.  Of course, in the beginning it will because there will be officers there to enforce it, but once it dies down people will begin to ignore the parking signs because it is more convenient and there will not be as strict enforcement of the rule.  Also, I think that because it is such a specific parking rule, the actual sign will be very confusing, causing most people to honestly just ignore it.

The next issue that was discussed was the Moraga Avenue Pavement Project.  The project aims to repave and repair sections of both Highland and Moraga Avenues.  There were no speakers and the motion passed unanimously.

The fourth issue on the agenda was rental rates of the Community Hall, the Tea House, the Exedra, and the Veteran’s Hall.  Sarah Lillevand, Piedmont’s Recreation Director, told the Council Members that she had looked at other East Bay wedding facilities and looked at what the prices were to rent them compared to Piedmont’s facilities.  She observed that the rental rates for the Community Hall could be much higher for what the clients are receiving.

Currently, the Community Hall is booked a year in advance without any advertising. Lillevand stated that the venue was very desirable and the price should be raised.  Council Member Teddy G. King agreed completely with Ms. Lillevand.  She said that twelve years ago when she got married she paid almost triple the price for her venue, which is why she concluded that the price should be raised as well.  The motion for price increases for the various venues passed unanimously.

The second to last topic that was discussed was the replacement of the Community Hall floors.  City Administrator Paul Benoit explained that there is veneer on the floor now and that it should be replaced with pure oak.  The only concern is that the pre-schools that take place in the basement of the Community Hall will not be able to operate while the floor is being replaced.  There was an idea of using portables, but the Council Members agreed that option was too expensive.  Mayor Margaret Fujioka stated she was concerned it would be too much of a financial investment for something that is only going to last 30 years.  But the other Council members managed to convince her that the value of the building would go up, and would increase cash flow from the rentals once the floor was replaced.  The motion to take the bid of HY Floor Company of $90,000 to replace the floor passed unanimously.

The last topic on the agenda was the proposal for an agreement with Terri Black for recruitment for the position of Finance Director.  There were no speakers on the subject and the motion passed unanimously for the agreement with Terri Black for $27,000 for the recruitment of the new Finance Director.

Editors’ Note:  Opinions expressed are those of the author. 
Dec 15 2015

On Wednesday, December 16 the Recreation Commission will receive updates on Recreation Capital Improvement Projects (CIP) and other repair and renovation projects at 7:30 p.m. in the City Council Chamber.

Following the Commission Chair’s report and the Recreation Director’s report there will be updates on:

CIP Projects

Aquatics Master Plan

Hampton Field Master Plan

Recreation Department building

Other Projects

Aquatics facility Repairs and Renovations

Community Hall Renovations

Future Projects

Read June, 2015 CIP suggestions for projects here.

The meeting is open for public participation and will be broadcast live via Channel 27 KCOM and the city’s website.

Dec 13 2015

The Committee will consider recommendations to the City Council on the Special Municipal Services Tax.

The Budget Advisory and Financial Planning Committee continue work on a proposed Piedmont Municipal Services Special Tax  (MSST) at their meeting Tuesday, December 15. They will consider what MSST rate to recommend to the City Council. From the current parcel tax increases being considered range up to 50%.

In making recommendations to the City Council, the committee is charged with considering the need for a voter approved parcel tax, the amount of the tax, and the proposed duration of the tax.

The public can attend and participate in the 7 p.m. meeting held in the Police Department Emergency Operations Center, 403 Highland Avenue.

Some written materials have been disseminated. No broadcast via the internet or cable TV will be available.

Dec 5 2015

Beginning at 7:30 p.m. the Council will take up its regular agenda in the Council Chambers.  Items include: (Click on items to read the reports.)

The following items are on the consent calendar:

The Council meeting will begin at 5:30 p.m for a Closed Session in the City Hall Conference Room on three subjects. Read the full agenda.

The meeting will be broadcast live starting at 7:30 p.m.on KCOM Channel 27 and the city’s website.

Questions:  Contact Paul Benoit, City Administrator at:

Paul Benoit City Administrator pbenoit@ci.piedmont.ca.us (510) 420-3042
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 23 2015

The recommendation by the Planning Commission to prohibit short-term rentals will be on a Council agenda in January as announced by  Interim Planning Director Kevin Jackson.

The Piedmont City Council will hear the Planning Commission’s recommendation regarding the regulation of short-term rentals at one of their regularly scheduled hearings in January 2016. You can find more information regarding the Planning Commission’s recommendation to the Council by reviewing the draft minutes and/or video of the November 9, 2015 Planning Commission hearing. [Found on the City of Piedmont website]

To receive a copy of the 141 page staff report prepared for the Planning Commission dated November 9, 2015; ask to be added to the email notice list; or make inquiries – contact:

Kevin Jackson, AICP    kjackson@ci.piedmont.ca.us

Interim Planning Director

120 Vista Avenue,  Piedmont, CA 94611

Tel: (510) 420-3039   Fax: (510) 658-3167

Comments and opinions regarding short-term rentals may be addressed to the City Council via:

 City Clerk John Tulloch jtulloch@ci.piedmont.ca.us.\

~~~~~~~~~~~

Interim Planning Director:  kjackson@ci.piedmont.ca.us

City Clerk and City Council:  jtulloch@ci.piedmont.ca.us

Piedmont website where draft minutes of the draft Planning Commission are posted next to the video listing of the November 9, 2015 meeting > http://www.ci.piedmont.ca.us/video/

Piedmont website where the November 9, 2015 Planning Commission meeting video may be viewed in its entirety > http://piedmont.granicus.com/MediaPlayer.php?view_id=3&clip_id=1365

Nov 22 2015
High School Student Hana Elabed reported on the November 16, 2015 City Council meeting.

    On Monday, November 16th, I treked up to Piedmont City Hall in order to hear the City Council meeting. The Council typically meets on the first and third Monday of each month. The meeting promptly started at 7:30 p.m. and ended at approximately 9 p.m. The purpose of the meeting was to discuss and hear about things that were listed on the agenda. The agenda included the approval of minutes, the acceptance of the Highland Avenue Parkway Drainage Improvement Project, discussion of the Book Drive, discussion of the Toys for Tots drive, consideration of the appointment of James O’Leary as an interim contract Finance Director, and the 3rd quarter crime report.

    Mayor Margaret Fujioka called the meeting to order and directed everyone to stand for the Pledge of Allegiance. Mayor Fujioka moved to the consent calendar and Vice Mayor Jeff Wieler said, “I think we need to pull the Highland Avenue reimbursement.”  Mayor Fujioka then entertained a motion to approve the meeting minutes from the last Council meeting and the motion passed unanimously. Next, there was a motion to accept the Highland Avenue Parkway Drainage Improvement Project and Council member Robert McBain moved approval and Council member Teddy G. King seconded the motion. The Council voted unanimously to approve the motion.

    After the Public Forum, the Council went to ceremonial matters. Mayor Fujioka smiled and said, “Tonight, we have two ceremonial matters, both really fun opportunities here in Piedmont.”  Fujioka then introduced two representatives from the organizations that will be receiving donated books. Anne Katz of the East Bay Collective Book Project approached the podium to speak about her organization.  Katz started by saying how pleased the organization is to be working with the City of Piedmont again after getting 900 books last year. She stated, “This year, I expect to quadruple that number at least because we have all three elementary schools who are going to be joining us.” Katz said the organization deals with kids who have never owned a book in their lives and they can’t believe it when you give them a book and they are allowed to keep it. Last year the organization gave away about a quarter of a million books to social service agencies.

Katz then invited Peter Scharass up to the podium to talk about his organization. Scharass states, “Low income kids end up with a big difference between their performance in 12th grade and the performance of higher income kids. There is actually an 80% difference between the two.” He stated his organization is purposeful and evidence based and their goal is to obtain kids books and get their parents to read to them.

President of the Piedmont School Board Andrea Swensen said a few words about her excitement in getting Piedmont involved in the Book Drive for the second year in a row. She held up Cat in the Hat and said, “I brought my favorite book as both a child and a parent.” This year, the places to drop off books are the three elementary schools, City Hall and at a bin at the Turkey Trot, which takes place on Thanksgiving Day.

Mayor Fujioka then talked about her love of the Book Drive and said that you cannot overstate the importance of early childhood reading and getting kids hooked on books. “I want to encourage all of our residents to donate generously.”

I think that this is a wonderful thing to become involved in and I encourage anyone to give whatever they can to these causes. Here in Piedmont, kids are very lucky and privileged and any chance there is to give back, is a something that people should participate in.

    Mayor Margaret Fujioka  then moved to discuss the annual Toys for Tots drive that is sponsored in Piedmont by the Fire Department. Fire Chief Bud McLaren spoke about the drive.  He stated, “This is one of the most exciting times of the year for me, because we are honored to pair up with the United States Marine Corps Reserve and collect toys for underprivileged children in Alameda County that won’t be as blessed as our children are.”

The Fire Department is going to collect, unwrapped, new toys from November 16th to December 21st. They collect for all age groups from infancy to teenagers, however the chief encourages people to bring in toys for older kids because they haven’t gotten a lot of those in the past. There are three drop off locations for those who want to donate toys: the Fire Department at 120 Vista Avenue, the Shell Station at 21 Wildwood Avenue, and Highland Partners Real Estate office on Highland Avenue.

Chief McLaren stated if anyone is unable to drop their toys off, he would be more than happy to come pick them up from you. Piedmont in the past has given more toys than any other community, and the Marines have even had to get a bigger truck to pick up our toys.

    The next agenda item was consideration of the appointment of James O’Leary as Interim part-time Finance Director and an engagement agreement with Regional Government Services. The previous holder of this job, Erick Cheung, is resigning to take a position involving less commute time and no night meetings. City Administrator Paul Benoit recommended James O’Leary, who has an extensive background in finance as Assistant Finance Director for the City of San Leandro and San Bruno. Benoit pointed out that since O’Leary’s former employers asked for him to come back, that is a good sign. O’Leary stepped up to the podium to express his excitement for starting this new job and the challenges he hopes to overcome. Fujioka asked O’Leary, “Will you be working on another assignment the same time you are working with Piedmont?” to which O’Leary responded, “No, I will only be working with Piedmont.” The motion to hire O’Leary passed unanimously.

 Next was  consideration of actions regarding Phase 5 of the sewer rehabilitation project. Fujioka asked, “Can you clarify if we are reimbursing the state or the City of Piedmont?”  Chester Nakahara, Public Works Director stated, “The loan we are getting is from the California State Water Resources Control Board, so we are repaying the loan to the state.”

To date, the City has completed 35% of the design documents for Phase 5 of the sewer project. The project is going to end up replacing about 6 miles of sewer line and the projected cost of that work is about $3.8 million. Mark Obereld was introduced as the head engineer for the project. The City submitted the initial application to the state a few weeks ago and so the process has started. The staff is anticipating that Phase 5 will start in October 2016 and will be complete by October 2017. After Phase 5 is complete, 80% of the City’s total sewer system will be new. The other 20% will be completed in Phase 6 and 7.

Fujioka made a remark about the non-specificity in the title of the loan proposal and City Attorney Michelle Kenyon stated, “The state really frowns on people making edits to this and it is almost impossible for the state to agree to edits.” Jeff Wieler stated, “Wouldn’t it be a waste of time to have the City Attorney pursuing changes for the state bureaucracy? I would be opposed to using resources to try and negotiate with the State of California.” Fujioka stated, “My theory is that it never hurts to ask.”  The motion for the sewer loan was approved  unanimously.

    The last item at the meeting was the third quarter crime report from the Chief of Police, Rikki Goede. The City of Piedmont has seen a 1% decrease in crime since the prior quarter. The Chief encourages people to make sure to lock their cars every night because the car burglaries rate has gone up. Also, do not leave any valuables or anything of substance in the car. The Chief also encourages people to wait by the ATM until their transaction is fully complete because people can steal your code and get money out of your account.

There has been a decrease in speeding because of the new speed limit signs inserted on Oakland and Highland Ave. The Chief also encourages people to make their house look lived when they go out of town. She wants students to know that the police officers are not there to just get them in trouble, but more there for their safety.

“I think that the officers need to make more of an effort to develop relationships with the students because they are in our lives a lot.”

Fujioka stated, “It’s a new day in Piedmont for increasing public safety”.

Close to the end of the meeting Vice Mayor Wieler stated, “I would like to commend the high school students for actually sticking it out through the entire meeting, most of your colleagues don’t do that. I think if you approach the City Clerk, he’ll make a note saying that you should get extra credit.”

 After the meeting, I introduced myself to Councilwoman Teddy G. King who has recently become a part of the Council and I had the opportunity to ask her a couple of questions. When asked why she wanted to join the Council she said, “I have a strong belief in public service and when given the opportunity I ran for public office. I wanted to put more things in place in order to protect the kids better. Honestly, I ran because Councils have historically not had any women with kids in the school system, it tends to be more empty nesters or men.”

I found it gratifying that King took the initiative to run for City Council for the reasons that she had. King stated that there are many things on her agenda to bring up to the Council, but on the top of her list is “improving recreational opportunities and I am very happy that the City is finally talking about improving Hampton Field again,” King noted, “I think it is going to be difficult for me and my colleagues to find the funding for that and it will take some political heavy lifting”.

Overall, the meeting was a very interesting thing to attend and it was fascinating to be able to meet the mayor and other councilmembers. I look forward to attending more in the future.

Editors’ Note: Opinions expressed are those of the author.
Nov 16 2015

On Tuesday, November 17, 2015, at 4:00 p.m., liaisons from the Board of Education and City Council will meet at the Piedmont Unified District Office Board Room, 760 Magnolia Avenue, Piedmont.  The public is welcome to attend and participate.  The meeting will not be recorded or broadcast.

The November 17 agenda includes discussion of:

A. Pick-Up and Drop-Off of students at Magnolia Avenue

B. Facilities Master Planning

1. School District Update

C. Trash at Piedmont Park

D. School Safety/Crisis Management

            Notice received 11/16/15
Nov 10 2015

Waste services, Finance Director search, and a $500,000 year-end transfer from undergrounding lawsuit settlement – 

by Piedmont High School student Christopher Baringer

Cleaning Up Piedmont

Piedmont’s City Council convened in one of their biweekly meetings on November 2nd, 2015 in the Council Chambers to discuss an audit that was performed by the Consulting Group R3 on Richmond Sanitary Services, also known as Republic Services, Piedmont’s waste collection provider. Also, the Council discussed the fact that the current Finance Director will be retiring from his position and that they need to find both an interim Finance Director and to utilize a recruiting firm to find a permanent replacement. Lastly, the Council spoke about the year-end transfers of the most recent fiscal year.

The audit for which the City Council hired R3 Consulting was to determine and address the areas of noncompliance in an agreement with Richmond Sanitary Services. Members of R3 spoke at the Council meeting and reported that the areas of noncompliance were insignificant. Robert McBain of the Council asked why those insignificant areas had not been addressed, and pointed out that many Piedmont citizens have issued complaints that their recycling and green waste are mixed into the same container.

William Shoan of R3 clarified that while it was true that green waste and recyclables were put into the same container, he noted that this rarely happened, and the green waste and recyclables rarely ended up in the same container in the end. The fact that this is a rare occurrence is because, Shoan stated, this only happened in “Backyard Accounts”, which is when the resident pays an extra fee to have the garbage workers fetch the refuse as opposed to the resident bringing their bins to the street. The garbage workers, in order to more efficiently transport the material, will often pour the green waste into the bottom of a larger carrying bin, and then fill the rest of the carrying bin with recyclables. Then, when they reach the truck, the workers then pour the top, recyclable part of the carrying bin into the recyclable section and then the rest into the compost section. Shoan recommended that, even though there was a very low rate of contamination between refuse categories, the workers add a layer of burlap to more effectively separate the green waste and the recycling.

Tim Rood of the Council then mentioned that over 40% of what is in black bins in Piedmont is actually green waste, to which Shoan pointed out that that comes down to the diligence of the citizens and that mandatory separation of green waste and trash should be considered. Mayor Margaret Fujioka noted that part of the contract between the City of Piedmont and Richmond Sanitary Services included Richmond Sanitary organizing community outreach events to help educate people in the best way to handle their refuse, which was not something that is currently being done.

I spoke to Aaron Salloway, a Piedmont resident, about how he felt about Republic Services and why he was attending the City Council meeting. He told me he was there because he knew Piedmont is such a small city and the Council has a lack of competitive advantage when negotiating with sanitary service providers, essentially making it a seller’s market. When I asked what he planned to do to help the cause of improving waste management in Piedmont, he said that he would wait to “see R3’s reports and see how the residents are going to react to the community outreach events”.

The next thing addressed was the need for a new Finance Director. For hiring a Finance Director, the Council needs to hire a recruiting firm, and will be interviewing the possible options for recruiting firms in the near future. As the current Finance Director is also handling parts of Human Resources, his departure will also leave a position to be filled in Human Resources. Rather than hiring another person to fill that position, the Council decided that it would be best to expand the duties of the current Administrative Services Technician to handle the Human Resources aspect of the current Finance Director.

Finally, the Council addressed this fiscal year’s year-end transfers, specifically a $500,000 sum that was gained from a civil settlement with an undergrounding engineer involved in a private utility district. Paul Benoit, City Administrator, recommended that the settlement sum should be allocated to Piedmont’s Facilities Maintenance Fund, which the Council approved.