Nov 5 2015

Possible restrictions of AirBnB online type rentals presented by City staff for consideration by Piedmont Planning Commission  – 

“At the direction of the City Council, the Planning Commission will consider modifications to the Municipal Code to address short term rentals of fewer than 30 days. Staff will introduce and the Planning Commission will review specific modifications to the Municipal Code. After hearing testimony from the public and a discussion, the Planning Commission will make a formal recommendation to the City Council.”

Planning Department recommendations to the Planning Commission are not published on the City website, however those interested can attend the meeting and/or contact the Planning Department for specifics of proposed actions.  The staff report is 140 pages long.

The agenda item will be considered, as follows:

1. Open the public portion of the hearing, provide all members of the public with an opportunity to be heard, and discuss the proposed Municipal Code amendments; and

2. Recommend adoption, with appropriate Code section numeration, a version of one of two proposed Code amendments to the City Council:

A. Code amendments (shown in red line) that permit short-term rentals with some restrictions as shown in Exhibit 1, pages 7 – 39, or a version thereof; or

B. Code amendments (shown in red line) that prohibit short-term rentals as shown in Exhibit 2, pages 41 – 70, or a version thereof.

The Commission may recommend adoption of Code amendments as proposed in Exhibit 1 or Exhibit 2. Alternatively, the Commission may recommend adoption of Code amendments with modifications identified at the hearing and specified in the motion for recommendation.

The meeting will be broadcast via Cable Channel 27 and also on the City website under videos.  All actions by the Commission are recommendations to the City Council who will make final decisions on the matter.

The meeting starts at 5:00 p.m., Monday, November 9, 2015, 120 Vista Avenue, in the Council Chambers.  Recently, Former Planning Commissioner Eric Behrens was appointed a regular Commissioner and Tom Ramsey is the new alternate Commissioner. 

For further information on the staff report contact:

Kevin Jackson
Interim Planning Director
CITY OF PIEDMONT
120 Vista Avenue
Piedmont, CA 94611
510-420-3039
kjackson@ci.piedmont.ca.us
Nov 5 2015

Voters choose “No” 55.06% to 44.94% defeating Proposition F, an initiative to prohibit short-term rentals of Second Units and permit enforcement through resident legal action. What will Piedmont decide?

The San Francisco Bay Area is world famous as a desirable travel and vacation location, making Piedmont a sought after lodging area with proximity to the University of California, Oakland and San Francisco. 

While the Piedmont Planning Commission and City Council consider what to do about the AirBnB type short-term rental issue, San Francisco’s voters have settled it in San Francisco by their vote on Tuesday, November 3, 2015.  The election was watched not only in San Francisco, but throughout the world. 

San Francisco allows second units to be rented for short-terms for up to a total of 90 days per year. Proposition F intended to completely prohibited short-term rentals of second units. It also would have reduced all other short-term rentals from a limit of 90 days per year to a maximum of 75 days per year.

Ballot language:

Measure F Short-Term Residential Rentals — City and County of San Francisco 

Shall the City limit short-term rentals of a housing unit to 75 days per year regardless of whether the rental is hosted or unhosted; require owners to provide proof that they authorize the unit as a short-term rental; require residents who offer short-term rentals to submit quarterly reports on the number of days they live in the unit and the number of days the unit is rented; prohibit short-term rentals of in-law units; allow interested parties to sue hosting platforms; and make it a misdemeanor for a hosting platform to unlawfully list a unit as a short-term rental? Yes or No

Ballotpedia explained Prop F:

The initiative was motivated by and targeted websites such as Airbnb and Homeaway, which feature rental listings nation- and world-wide. It was proposed by a coalition of unions, land owners, housing advocates and neighborhood groups called Share Better SF. In the interest of easy enforcement, the initiative would focus on penalties for websites that post rental listings that do not comply with city law, as well as punishing individual home owners or sub-leasers. The fines proposed for websites featuring illegal posts range from $250 to $1,000 per day for each non-compliant post. Estimates show the fines for a website such as Airbnb could add up to millions of dollars unless a way was found to keep listings in accordance with city law.

Opponents of Prop F focused their advertisements on the proposition’s implementation strategy,”authorizing private action lawsuits by “interested parties”—defined as anyone living within 100 feet—against those suspected of violating the law.”  Proponents found that enforcement of the current 90-day limit had been inadequate. 

Final campaign financial reporting is not complete, however AirBnB had spent over $5 million to proponents’ $300,000.  Mayor Ed Lee and Former Mayor, now Lieutenant Governor, Gavin Newsom opposed the measure, while Senator and Rormer Mayor Dianne Feinstein, and Former Mayor Art Agnos supported Measure F.

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 2 2015

The Piedmont Police and Fire Pension Fund Board will meet on Thursday, November 5, 2015, at 4:00 p.m. in the City Council Chambers, 120 Vista Avenue.

The Piedmont Pension Fund is overseen by the Police and Fire Pension Board, whose members are:  Bill Hosler, Fire Representative Brian Gidney, Police Representative Tom Kincaid, with Council Liaisons Robert McBain  and Tim Rood.

At its November 5 meeting the Board will discuss:

           Acceptance of Participant Report of the benefits paid in the 1st quarter of FY15/16 and the current number of beneficiaries

          Report of Pension Fund  investments by Osterweis capital Management

          Report of Other Postemployment Benefits investments by Osterweis capital Management

Piedmont continues to maintain its own pension fund for fire and public safety employees who retired prior to the City’s transfer of active fire and public safety employees into the California Public Retirement System (CalPERS).

The public is welcome to attend the meeting. The meeting will not be broadcast.

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 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 20 2015

“Living” IT Plan –

At their October 19th meeting, the City Council discussed at length the proposed IT Plan.  In the end they approved the plan as a “living” plan, recognizing current and future budget limitations and future  technological advances.

PRESS RELEASE:

“After a year long examination of the City’s Information Technology (IT) systems, the City Council approved a five year IT strategic plan at its meeting of October 19, 2015. The plan lays out seventy initiatives designed to bring the City’s aging, and in some cases outdated, information technology infrastructure up to date. These changes will help residents and staff use technology to be more efficient; and will facilitate improved resident communication with city government.

In February of 2015, the City Council engaged the services of ClientFirst Technology Consulting to undertake a review of the City’s Information Technology infrastructure and prepare a five year strategic plan based upon their findings. The consultant’s work included an in-depth review of city-wide systems,, each department’s operations and technology needs, as well as workshops with staff knowledgeable of the technology needs and the technological debt in each department.

The consultant met with the Council appointed IT Task Force, comprised of Piedmont residents Tom Kutter, David Mason, Michael Parks, Poojitha Preena, and Adam Schwartz. Through their analyses and meetings, the consultant developed initiatives to modernize the City’s technological infrastructure. An overarching goal of the various initiatives is to build and invest in a system that serves internal needs and provides residents full access to their City government.

“This IT Strategic Plan will guide us into the 21st century, bringing important technological changes to Piedmont that will promote efficiencies and save taxpayer monies,” said Mayor Margaret Fujioka. “With an initial focus on bringing the City’s network infrastructure to modern standards and providing adequate staffing to support the City’s computing needs, this plan will bring the City up to date. Future projects such as revamping the City website and making WiFi available at City Hall and surrounding public areas will provide residents greater access to City government and services. Thanks to our IT Task Force, Consultant, and City staff for their excellent work on this Plan.”

“Overall, we believe the approach and strategic plan provided by ClientFirst was a reasonable and logical plan for upgrading the City’s services and infrastructure, wrote Tom Kutter, Chair of the Information Technology Task Force. “Many of the near term objectives are to simply update the basic network infrastructure and enterprise software. With the infrastructure in place, the City can begin to meet the objectives set forth for improving customer satisfaction with City residents, increasing transparency across departments, and improving the productivity of City staff.”

The staff report and strategic plan are available on the City’s web site at:

http://www.ci.piedmont.ca.us/html/govern/staffreports/2015-10-19/it_strategic_plan.pdf

For more information contact:

John O. Tulloch, City Clerk, 420-3040

Oct 19 2015

Piedmont Recreation Commission

  PUBLIC HEARING > Hampton Field Master Plan and Expenditure of City Funds

Wednesday, October 21, 2015  – 7:30 pm

City Council Chambers, 120 Vista Avenue 

a. Presentation from Consultant William Harris

b. Public Testimony

c. Consideration of Recommendation to the City Council to Proceed with Construction of the Hampton Field Master Plan in a Single Phase

  Staff Report Consider recommending to the City Council to proceed with construction of the Master Plan for Hampton Park/Field in a single phase.

BACKGROUND: This project has been under consideration by the City of Piedmont since 2005. Public Hearings were held in October 2006 and January 2007. Joint Recreation and Park Commission meetings were held in June and July 2007 and again in April 2008.

Council approved the Master Plan on June 2, 2008. The project was then sidelined due to budgetary constraints. In March 2014, Council awarded a contract to Harris Design Architecture to complete construction documents.

From June through August 2014, the Capital Improvement Project Review Committee (CIP) considered possible projects for Measure WW funds.

On September 15, 2014, Council directed staff to proceed with the implementation of the Hampton Park Improvements, with primary focus on the refurbishment of all of the hardscape areas related to the tennis, basketball & handball courts and associated drainage improvements for these areas (Phase I) with the intent that this project be submitted for Measure WW Local Grant Funds; and resolved further, that staff be encouraged to pursue private fundraising to complete the Hampton Park Improvement Plan in its entirety.

On June 15, 2015, the City received notification from the East Bay Regional Park District that our Measure WW Grant application for Hampton Park Improvements had been approved in the amount of $507,325.

The total cost of Phase I is estimated at $732,685 with the difference between $507,325 and $732,685  payed for by the City.

Currently, this project is slated to be completed in two phases. Phase I includes the hardscape areas described above and will be funded by the Measure WW grant. Phase II includes the grassy field, adjacent areas and associated drainage. Phase II currently is not funded. In order to minimize impact on Recreation Department and Piedmont Sports Club programming; to reduce overall project costs; and to shorten overall project duration; Staff recommends investigation into possible funding sources to allow the Hampton Field Master Plan to be completed in a single phase.

The total cost for Phase I and II has been estimated at approximately $1.5 million. 

“Piedmont Sports Field Master Plan Renovation Mr. Bill Harris of Harris Landscape Design, displayed colored renderings of the proposed Master Plan renovation of Hampton Park/Piedmont Sports Field. It was noted that this proposed Master Plan renovation was extensively reviewed by both the Park and Recreation Commissions beginning in 2006 and on July 11, 2007, both Commissions recommended Council approval of the proposed plan. The proposed renovation is estimated to cost between $1.3 and $1.5 Million and involves comprehensive improvements to the park’s drainage system, playfield surface, tennis and basketball courts, landscaping, pathways and entrances and PlaySchool play area.

Council approved the Master Plan under Resolution 46-08 on June 2, 2008. The project was then sidelined due to budgetary constraints. In March of 2014, Council awarded a contract to Harris Design Architecture to complete construction documents.

No substantive changes have been made to the Master Plan approved in 2008. Architect, Bill Harris of Harris Design Architecture will present the 100% complete plan at this meeting.

~~~~~~~~~~~

Public testimony is invited. Written comments should be directed to the Recreation Director at    slillevand@ci.piedmont.ca.us  For further information, contact Recreation Director Sara Lillevand at 420-3073.

If recommended to the Council by the Recreation Commission, consideration and approval by the Council is required.  Budgetary demands, resident concerns, and timing are relevant to the final Council decision.

~~~~~~~~~~~~~~

The Recreation Commission meeting will be available for remote viewing via Piedmont’s KCOM Channel 27 cable or the City’s website.

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.