July 2, 2024
General Obligation Bond: (1) Adoption of Resolution
Determining that Public Interest and Necessity Demand
Public Infrastructure Projects and their Financing through Issuance of General Obligation Bonds; and (2) Introduce Ordinance Ordering Submission of Proposition Incurring
Bonded Indebtedness to Alameda Voters
[Requires 4 Affirmative Votes and July 16
th Council
Actions]
• City staff have identified a need of at least $800 million in public infrastructure citywide.
• As an island city, the City faces the unprecedented challenge of protecting the community’s aging infrastructure and facilities from natural disasters, flooding, rising sea levels, and earthquakes.
• Alameda is especially vulnerable in areas on the west end near the tubes and on Bay Farm Island.
• The City has been careful with its maintenance dollars and proactive about seeking other funding, but there is not enough funding to address these critical needs and costs continue to escalate significantly.
City Faces Unprecedented Infrastructure Need
While the City’s average pavement condition index is 68, which is considered “Fair”, over 20% of City streets are in “Poor” or “Failed” condition. An investment of $57.5 million over the next five years will increase the Pavement Condition Index from 68 (Fair) to 73 (Good).
• $58 million in unfunded deferred maintenance for potholes and street pavement.
• Over 20% of City streets are in “Poor” or “Failed”
condition.
• An investment of $58 million over the next five years would increase the Pavement Condition Index from 68 (Fair) to 73 (Good).
• Californians incur $800 average/year in unexpected
vehicle repairs from damage caused by poorly maintained streets.
• Poor road conditions increase the risk of collisions and are dangerous to drivers, passengers, and other road users.
Example of Infrastructure Need:
Potholes
While the City’s average pavement condition index is 68, which is considered “Fair”, over 20% of City streets are in “Poor” or “Failed” condition. An investment of $57.5 million over the next five years will increase the Pavement Condition Index from 68 (Fair) to 73 (Good).
• City has limited funds to support
more than $80 million in traffic
congestion projects, sidewalk and
trail improvements, and traffic safety
projects, including:
• Lincoln Avenue corridor safety
project
• Mecartney and Island Drive
safety modifications
• Neighborhood safety
improvements
Example of Infrastructure Need:
Street Safety
Sources: Active Transportation Plan, Vision Zero Action Plan While the City’s average pavement condition index is 68, which is considered “Fair”, over 20% of City streets are in “Poor” or “Failed” condition. An investment of $57.5 million over the next five years will increase the Pavement Condition Index from 68 (Fair) to 73 (Good).
• Alameda and the Bay Area are at great risk
from sea level rise:
• Already seen: +8 inches
• Projected: +9-12 inches by 2050,
+4 feet by 2100
• Adaptations to address water level rise in
Alameda cost close to $1 billion compared
to $6.8 billion cost of building and land loss.
• Bridges, tubes, and other entry points
need to be removed from flood plain.
• Significant flooding risks increase during
extreme weather and King Tides.
Example of Infrastructure Need:
Sea Level Rise and Flooding
Sources: Climate Action and Resiliency Plan and Community Risk Assessment, Standards of Cover Study for Alameda Fire Department While the City’s average pavement condition index is 68, which is considered “Fair”, over 20% of City streets are in “Poor” or “Failed” condition. An investment of $57.5 million over the next five years will increase the Pavement Condition Index from 68 (Fair) to 73 (Good).
• Fire Stations 1 and 4 do not meet current firefighting and possible seismic standards.
• Fire Station 2 in need of remodel or replacement due to being over 100 years old with challenges housing modern day
apparatus.
• Future need for upgrade or replacement of Fire Station 5 and Training Center.
• Upgrades to Police Building to meet 21
st Century policing
standards (e.g., modern training facilities and lockers for female employees).
• Current animal shelter facilities require upgrades to respond to increased demand and meet current standards.
Example of Infrastructure Need:
Public Safety
Sources: Community Risk Assessment and Standards of Cover Study for Alameda Fire Department and Final Report of the President’s Task Force on 21st Century Policing
• 2023: Following extensive community outreach, the City’s adopted Strategic Plan includes exploring a revenue
measure to fund deferred maintenance and new
infrastructure needs.
• Nov 2023: Public opinion polling in scientific phone and online surveys.
• April 2024: Sent informational mailer and survey to
Alameda likely voters.
• May 2024: Shared educational videos, social media posts, and online survey.
• June 2024: Sent second informational mailer with survey findings (3000+ responses) and conducted additional
public opinion polling.
Citywide Community Engagement
In a 2024 mail & online survey, Alameda residents ranked the following most pressing infrastructure needs:
1. Making our community safer by improving outdated police and fire stations and replacing aging infrastructure to prevent power outages, stormwater drainage, and sewer systems problems.
2. Repairing potholes, repaving and maintaining roads, and improving pedestrian and bicycle safety with safe sidewalks and crosswalks.
3. Protecting the shoreline including bridges, tunnels, homes, and wildlife that need protection from natural disasters such as flooding, rising sea and ground water levels, erosion, and earthquakes.
4. Supporting the creation of affordable housing units, including repurposing vacant lots for residential development and providing shelter for the unhoused, all of which help address rising rental expenses. 2024 Mail & Online Survey:
Residents prioritize infrastructure improvements
Key findings from public opinion survey of Alameda
voters conducted in June:
1. Majority of respondents approved of the job that
City government is doing.
2. 64% of respondents feel there is a great or some
need for infrastructure funding in the City, increasing from 54% in 2023.
3. 68% of respondents were supportive or leaning in
that direction when asked specifically about a $150
million local bond measure dedicated to City
infrastructure improvements.
2024 Public Opinion Poll:
Alameda Voters Support Local Bond Measure
• 2022: 58% of voters approved a Transient
Occupancy Tax (TOT) increase measure.
• 2019: 57% of voters adopted a new
stormwater fee.
• 2018: 61.5% of voters approved a sales tax
measure.
• 2016: 72.9% of voters approved updating the
Utility Users Tax.
Voter Support for Previous City Measures
• A $150 million infrastructure bond would be payable from a dedicated property tax levied on taxable property in the City, not any other City funds.
• After the full amount of the bonds are issued, property owners will pay an estimated average levy of $29 per $100,000 of assessed value per year while bonds are outstanding and it is anticipated the bonds will be issued in installments.
• Example: If bonds are issued in 3 installments of $50 million every 5 years, property owners will pay the levy for 40 years.
• The City will use bond funds to address significant infrastructure needs before the City’s public infrastructure continues to deteriorate and costs increase.
Proposed Infrastructure Repair/Flood Safety
Measure for November 2024: Overview
Consistent with the Resolution and Ordinance:
1. Flooding-related improvements in and around the tubes, bridges, the shoreline, and Bay Farm Island.
2. Improvements addressing sea level rise, such as levees, dikes, and seawalls and other improvements protecting natural areas along the shoreline.
3. Upgrades to, including new construction of bridges, buildings, and other City infrastructure, including public safety, animal shelter, and library facilities, to withstand major earthquakes, meet applicable building codes, and otherwise meet current standards.
4. Traffic- and safety-related improvements, such as repaving, reconstructing, and/or repairing streets, roads, alleys, and other infrastructure to prevent deterioration, fixing potholes, and improving curbs, gutters, sidewalks, and related infrastructure, including improvements addressing traffic flow, traffic congestion, and safety for people who walk or bike.
Proposed Infrastructure Repair/Flood Safety
Measure: Potential Improvement Projects
• Under existing law, an infrastructure bond requires 2/3 of voters to vote in favor to pass.
• ACA 1 is on the November ballot and if passed lowers this threshold to 55%, including for a City measure placed on the 2024 ballot. • Bond proceeds are restricted to capital projects and cannot be used to fund operations or any other purpose.
• The proposed infrastructure repair and flood safety measure requires transparency and accountability over and above the City’s existing budget requirements, including an annual, independent audit to ensure transparency, accountability, and proper disbursement of bond proceeds.
Assembly Constitutional Amendment (ACA) 1
Existing revenue sources will not meet the City’s need for public infrastructure. If we wait, that need, and the cost of repairs, significantly increases:
• State budget: Past funding has been $1-3 million; looming budget deficits put future funding in jeopardy.
• Federal community project funding: Previous support for traffic safety and adaptation projects has been $1-3 million; future funding may be much lower. • Federal grants: City requested $55 million for adaptation -- $5 million was included in the Senate budget, $30 million in the House budget. • County grants: Past funding for transportation and affordable housing projects has ranged from $500,000-$2 million.
• Local funds: Use of residual reserve and other General Fund sources.
Limited Funding Alternatives
• Unprecedented challenges protecting the community’s aging infrastructure and facilities from natural disasters, flooding, rising sea levels, and earthquakes.
• Costs escalation is rapid -- resulting in growing and greater infrastructure need.
• Local funding source ensures City addresses vital city and community needs, supports a vibrant economy, and creates well-paying jobs. • Tonight’s action advances the measure forward to the July 16 meeting so Alameda voters have the opportunity to consider it and decide in November. • Any action taken tonight is not a vote to support or oppose a measure. • Ask questions tonight -- so staff can answer everything before July 16.
Why Take Action Tonight?
Voters decide
• Levy taxable
property
• Monitor and
report on
disbursement
of bond funds
Annual
• Specific
capital
improvement
program for
bond returns
to City
Council
2025
• Voters decide
Nov 5, 2024
• Presentation
of poll
results,
measure
language,
updated
information
about ACA 1,
final City
Council
decision to
place
measure on
the ballot
July 16, 2024
• City Council
affirms need
for funding for
infrastructure
projects in
Alameda,
allows process
to move
forward to the
next meeting
July 2, 2024
Next Steps
• Adopt resolution determining that public interest and necessity demand public infrastructure projects and their financing through issuance of General Obligation bonds.
• Introduce ordinance ordering submission of proposition incurring bonded indebtedness to Alameda voters.
Recommendation