Alameda City Council Meeting - June 17, 2025: Budget Adoption and Pacific Fusion Land Sale

The Alameda City Council met on Tuesday, June 17, 2025, beginning with a closed session at 5:00 PM, followed by a special joint meeting with the Successor Agency to the Community Improvement Commission (SACIC) at 6:59 PM, and the regular meeting at 7:00 PM. The council approved a two-year operating and capital budget for FY 2025-27 and authorized a purchase option agreement for the sale of 13 acres at Alameda Point to Pacific Fusion for a nuclear fusion research and demonstration facility. Both actions passed 4-1, with Councilmember Desag dissenting on the budget and the Pacific Fusion item.

Consent Calendar

• Approved the minutes of the May 20, 2025, special and regular city council meetings.
• Ratified bills for payment.
• Authorized several contracts and agreements, including:
  • A three-year subscription for Darktrace Enterprise Immune System ($428,475 total).
  • A three-year agreement with Environmental Systems Research Institute for GIS software ($180,900 total).
  • A one-year agreement with Alameda Journal for legal notices publication.
  • A five-year agreement with Citiguard, Inc. for security services at Alameda Point ($2,000,535).
  • A first amendment with Wittman Enterprises for ambulance and alarm billing services ($1,292,500 over five years).
  • Five on-call architectural services agreements ($750,000 each for five years).
  • Six on-call civil engineering services agreements ($750,000 each for five years).
  • Five on-call electrical engineering services agreements ($750,000 each for five years).
  • Three on-call geotechnical, environmental, and construction testing services agreements ($750,000 each for five years).
  • A five-year safety program compliance and training agreement with Du-All Safety ($234,183).
  • Four on-call land surveyor services agreements ($750,000 each for five years).
  • Five on-call transportation engineering services agreements ($750,000 each for five years).
  • Four on-call mechanical engineering services agreements ($750,000 each for five years).
  • A five-year vegetation management agreement with Clean Lakes, Inc. ($758,978.04).
• Final passage of an ordinance revising sewer service charges.
• Final passage of an ordinance adjusting universal design requirements for townhouse developments.
• Approved resolutions for landscaping and lighting district assessments: Zone 7 (no assessment), Zones 1,4,5,6,8 (levy), and Marina Cove maintenance district (levy).
• Approved continuation and collection of the Water Quality and Flood Protection Fee for FY 2025-26.

Public Comments & Testimony

Oral Communications, Non-Agenda

• Jama Gay (Alameda resident) spoke about her experience as the first resident of Dignity Village, describing advocacy for resident rights, parking, laundry access, and kitchen storage. She reported aggressive behavior by some staff and her efforts to improve conditions.

Public Hearing on Pacific Fusion

• Over 30 speakers addressed the council, the majority expressing strong support for the Pacific Fusion project. Key supporters included:
  • Christina McKenna (President, Public Utilities Board) spoke in support, citing alignment with Alameda Municipal Power's 100% clean energy mission and climate goals.
  • Richard Bangert (resident) supported the project, noting safety assurances from state regulation and the need for jobs and infrastructure at Alameda Point.
  • Jeff Gould expressed skepticism, arguing that safety studies were incomplete and that fusion-specific regulatory frameworks are lacking.
  • Jonathan DeLong (Executive Director, REAP Climate Center) enthusiastically supported the project, citing community engagement and job creation.
  • Karen Bay (40-year West End resident) supported the sale, emphasizing the billion-dollar investment and 250 jobs.
  • Beth Remenap (25-year West End resident) supported fusion as the only energy source with no negatives in emissions, reliability, fuel supply, waste, and safety.
  • Kathy Weber (Executive Director, Downtown Alameda) supported the project for economic benefits and tax revenue.
  • Madeline Sadvick (President, Alameda Chamber and Economic Alliance) urged support, calling it a once-in-a-generation opportunity.
  • Daniel Macino (resident and mechanical engineer with nuclear experience) endorsed the project, citing safety of fusion technology.
  • Daniel Chin (lifelong Alameda resident) supported fusion for sustainability and potential to put Alameda on the map.
  • Sebastian Buenfil Rojas (lifelong resident) supported the research facility, distinguishing it from a power plant and noting low radioactivity comparable to UC Berkeley.
  • Henry Cooper (Alameda resident, Cal Poly SLO student) supported for local jobs and clean energy.
  • Jacqueline Zow (UC Berkeley student, raised in Alameda) supported after research, noting minimal risks and similarities to hospital regulations.
  • Zach Goldberger-Judd (recent high school graduate) supported fusion as a promising technology.
  • Doyle Saylor expressed high skepticism, questioning oversight and the use of tritium in an urban center.
  • Michael Orishkoff (lifelong Alamedan, Pitzer College student) supported the project for sustainability and attracting talent.
  • Finley Hayes (recent high school graduate) supported, differentiating fusion from fission and noting chain reaction impossibility.
  • Tu Shana Maris here Rodena (parent) supported the project for climate leadership and sparking development at Alameda Point.
  • Melanie Dixon (President, College of Alameda) strongly supported, emphasizing workforce development, internships, and student opportunities.
  • Kate Stirr (Alameda resident, VP at Natal Energy) supported, citing the ecosystem of clean energy startups at Alameda Point.
  • Nicole Porter (VP of Instruction, College of Alameda) supported for bridging education and industry.
  • Debbie Ryan (VP, Community Action for Sustainable Alameda) supported for climate goals and economic development.
  • Several other young residents and students spoke in favor, stressing climate urgency and local job opportunities.
• No speakers opposed the Pacific Fusion item in person; one remote speaker (Jeff Gould) expressed concerns.

Discussion Items

Budget Adoption (FY 2025-27)

• Finance Director Ross McCarthy presented a balanced budget with a $152.2 million general fund in year one and $153.8 million in year two. The budget draws down residual fund balance but preserves $9.3 million above the 25% reserve policy.
• Public Works Director Aaron Smith presented the capital improvement program: $42.3 million in year one, $40.4 million in year two, with $17.6 million in grants.
• Councilmember Desag raised concerns about capping sworn police officer hiring at 72, historically authorized at 88, calling it a reduction of 16 positions. He argued for maintaining the 88-authority level.
• City Manager Jennifer Ott explained that the city has not been able to fill all 88 positions for years, and the budget effectively formalizes salary savings from unfilled positions. Fully funding 88 would require service cuts.
• Councilmember Jensen asked about the consequences of maintaining a large number of unfilled positions; Ott responded that it would necessitate cuts elsewhere.
• Councilmember Bowler supported the budget, noting that retaining existing officers and reaching 72 would be a strong achievement, and that crime prevention includes non-police investments.
• Vice Mayor Pryor and Mayor Ashcraft supported the budget, highlighting responsible stewardship and trade-offs.
• The budget (including SACIC and workforce changes) passed 4-1 with Councilmember Desag dissenting.

Pacific Fusion Land Sale and Purchase Option

• Abby Thorne Lyman (Director of Base Reuse and Economic Development) presented the staff recommendation to declare 13 acres as exempt surplus land and approve a purchase option agreement for $28.9 million in infrastructure improvements. The facility would be a 220,000 sq ft research and development facility with 250 jobs, operational by 2030.
• Pacific Fusion representatives (Courtney Richardson, Alex Daniak, Keith Lachin) provided an overview of their technology, safety measures, community engagement, and economic benefits ($1 billion investment, $120 million in tax revenue over 10 years). They emphasized the facility is not a power plant.
• Councilmembers asked clarifying questions about land use restrictions (no housing in Enterprise District), safety regarding tritium and groundwater, and sea level rise adaptation.
• City Engineer Scott Wickstrom explained that the project must meet a 100-year floodplain plus three feet of sea level rise elevation (13 feet), which inherently addresses groundwater rise.
• Assistant City Attorney Len Islanin stated that the Alameda Point EIR and General Plan EIR previously studied groundwater and contamination issues, and no further CEQA analysis is required.
• Councilmember Desag expressed concern that the existing EIRs did not adequately analyze radiation effects on groundwater, especially given the high water table and tidal influences. He argued more analysis is needed before approving the sale.
• Other councilmembers (Jensen, Pryor, Bowler, Ashcraft) expressed strong support, citing safety reviews, regulatory oversight, private funding, and the project's alignment with climate goals and community aspirations.
• The resolution declaring the land exempt surplus and introducing the ordinance approving the purchase option passed 4-1 with Councilmember Desag dissenting.

Key Outcomes

• Consent Calendar (including final passage of two ordinances and resolutions for assessments) approved unanimously.
• Operating and Capital Budget for FY 2025-27 and related SACIC budget and workforce changes adopted 4-1 (Desag opposed).
• Pacific Fusion purchase option approved 4-1 (Desag opposed). The ordinance will come back for second reading; the purchase is contingent on future council approval of a development agreement.
• Closed session actions: The council completed performance evaluations for the City Attorney and City Manager, both approved unanimously 5-0.
• Mayor's appointments announced: Julie Lyons to Commission on Persons with Disabilities, David Crotty to Historical Advisory Board, and reappointments to Library Board, Planning Board, and Public Utilities Board. These will be formally voted on at a future meeting.