League of Women Voters of California Education Fund
Alameda County, CA November 6, 2012 Election
	Gerard Valbuena Dumuk Answers Questions Candidate for Council Member; City of Alameda

The questions were prepared by the League of Women Voters of Alameda and asked of all candidates for this office.
Read the answers from all candidates (who have responded).

Questions & Answers

1. (Most pressing problem) What is the single most pressing problem facing the City in the next 24 months and how would you work with your elected colleagues to solve it?

How would you address the city's unfunded pension and health care liabilities?

First thing we need to do is flip the panic switch to the "OFF" position. The fund managers at PERS are not investing for the short term. There is a lot of hyperbole on investment losses based on the recession, but if you look at PERS on a 20 year scale they look pretty good. Not too long ago the annual rate of return for PERS was close to 30% . This year the rate of return is closer to 1%. The message I must get across is to concern yourself with the average, currently hovering at 7%. The longterm investment strategies for PERS are sound, however they can stand to make some adjustments for the global market.

The issue of retirement spiking (the process of cashing out using credits as their final compensation calculation) has been addressed most recently with the passage of AB 340. Overall this practice did hurt the system tremendously, but it will heal.

There is a fiduciary responsibility to handle these funds in a manner that is fair to the employees and the taxpayer. Generally speaking, 70 to 80 percent of the pension cost or pay out is covered by earned profits from the investment return. The rest is covered by employee contribution. This, as well, has been addressed by AB 340: all new employees are required to pay half the "normal cost" of their retirement. Normal cost is the cost of the pension minus any unfunded liabilities. In general we stand to see an overall increase in the employee contribution rate that is fair to both the employee and the taxpayer.

Let PERS continue to do what is does best. Let them continue to invest our money, so that they can make money, so that people can retire. Historically PERS has done an exemplary job. They are investing for the long term.

The legislature passed AB 340 overwhelmingly, by a vote of 66 to 9. This new pension reform bill will trickle down to the local level and I recommend that we hunker down and weather the storm.

2. (Growth and development) What is your vision of Alameda ten years from now as it relates to residential growth and business development?

I believe in a slow growth policy for the island of Alameda. "We're an island. We can't magically make more land"

However, demographically speaking there is a general shortage of senior housing. For every man, woman and child, there has been historically a lack of accommodation for a grandparent or two. I am an advocate for senior housing as there are many benefits. For starters, having a grandparent around completes the family unit. I can attest to that fact, because I lived in a household that included my grandparents. They watched me after school, helped me with my homework, influenced me as a young person and motivated me to excel in school. They even paid me to bring home good grades.

Affordable senior housing also meets the affordable housing requirement imposed on our city by the state. In addition, Housing and Urban Development will enter into rent subsidy contracts for a period of thirty years which is the life of the loan. If we are creative about our funding options senior housing can prove fiscally sustainable. Unassisted affordable senior housing also comes with an underlying economy in the form of care providers, and health care workers. Seniors are also users of public transportation, they carpool, generally commit no crime and are usually active members of our communities.

3. (Partnership of city with schools) Good schools are important for a city's economic growth and well-being. What is the most effective way the City can partner with the school district to improve the academic performance and perception of our schools?

The channels between the school district and the city council could use some widening. Currently our schools' funding is less than adequate by modern standards. Ultimately the the funding is a state and school district issue; however, any shortages in performance, morale, and perception of our schools becomes a local issue. Our first steps should be to identify the inadequacies and provide some out of the box solutions to solve them at the local level. Our High School students are on a four year cycle, and frankly we cannot afford to wait when it comes to certain things. Once inadequacies have been identified we can move forward with upgrades and renovations if additional funding is found. Any restrictions disallowing this can always be loosened. Philanthropists exist among us and nothing is impossible when it comes to a good old barn raising. There is no need wait for the state. If we want a new gym, we should be able to get that new gym between philanthropy, grants, and naming rights. If there is a Bill Gates or Larry Ellison that wants to sponsor one of our schools, I don't think many of our residents would be be opposed to naming it Gates or Ellison High.

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Responses to questions asked of each candidate are reproduced as submitted to the League.  Candidates' responses are presented as submitted. Direct references to opponents are not permitted.

Read the answers from all candidates (who have responded).

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Created from information supplied by the candidate: October 16, 2012 07:20
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