2010-07-20 Regular CC MinutesMINUTES OF THE REGULAR CITY COUNCIL MEETING
TUESDAY- -JULY 20. 2010- -7:00 P.M.
Mayor Johnson convened the meeting at 7:25 p.m. Councilmember Matarrese led the
Pledge of Allegiance.
ROLL CALL - Present: Councilmembers deHaan, Gilmore, Matarrese, Tam
and Mayor Johnson — 5.
Absent: None.
PROCLAMATIONS, SPECIAL ORDERS OF THE DAY & ANNOUNCEMENTS
(10 -354) Presentation by the Park Street Business Association on the 26th Annual Art
and Wine Faire.
Robb Ratto, Park Street Business Association, presented glasses to the City Council;
thanked the City for supporting the Wine Faire; stated the Wine Faire is this weekend
from 9:00 a.m. to 6:00 p.m.
Mayor Johnson called a recess at 7:28 p.m. and reconvened the meeting at 1:10 a.m.
AGENDA CHANGES
None.
CONSENT CALENDAR
Mayor Johnson announced that the Resolution Amending Resolution No. 9460
[paragraph no. 10 -364] was removed from the Consent Calendar for discussion.
Vice Mayor deHaan moved approval of the remainder of the Consent Calendar.
Councilmember Matarrese seconded the motion, which carried by unanimous voice
vote — 5. [Items so enacted or adopted are indicated by an asterisk preceding the
paragraph number.]
( *10 -355) Minutes of the Special Joint City Council and Public Utilities Board Meeting
and Regular City Council Meeting Held on July 6, 2010; and the Special City Council
Meeting Held on July 7, 2010. Approved.
( *10 -356) Ratified bills in the amount of $1,852,757.95.
( *10 -357) Recommendation to Award Contract in the Amount of $88,974, Including
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Contingencies, to Roto Rooter for Citywide Sewer Mains Video Inspection, Phase 3, No.
P.W. 02- 10 -08. Accepted.
( *10 -358) Recommendation to Amend the Consultant Contract in the Amount of
$38,682, Including Contingencies, to Noll & Tam for Construction of Administration for
the Neighborhood Library Improvement Project, No. P.W. 10- 09 -29. Accepted.
( *10 -359) Recommendation to Adopt Plans and Specifications and Authorize a Call for
Bids for the Upgrades to the Northside Storm Drain Pump Station, No. P.W. 02- 10 -06.
Accepted.
( *10 -360) Recommendation to Adopt Plans and Specifications and Authorize a Call for
Bids for the Repair of Portland Cement Concrete Sidewalk, Curb, Gutter, Driveway, and
Minor Street Patching, Fiscal Year 2010 -2011 Phase 11, No. P.W. 06- 10 -14. Accepted.
( *10 -361) Recommendation to Authorize a Request for Proposal to Provide Turnkey
Design -Build Services for Photovoltaic (Solar) Generation System, No. P. W. 05- 10 -12.
Accepted.
( *10 -362) Resolution No. 14473, "Authorizing the Interim City Manager to Apply for
Regional Measure 2 Bridge Toll Funds for the Operating Subsidy and Capital Projects
for the City of Alameda Ferry Services." Adopted; and
( *10 -362 A) Resolution No. 14474, "Resolution of Intention to Transfer the
Alameda /Oakland and Harbor Bay Ferry Services to the San Francisco Bay Area Water
Emergency Transportation Authority." Adopted.
( *10 -363) Resolution No. 14475, "Authorizing the Public Works Director to Submit Grant
Applications to the California Department of Resources and Recovery, Formerly the
Integrated Waste Management Board, for All Available Grants Under the California Oil
Recycling Enhancement Act for the Period of July 1, 2010 Through June 30, 2015."
Adopted.
(10 -364) Resolution No. 14476, "Amending Resolution No. 9460 to Reflect Current
Positions and Entities to be Included in the City of Alameda's Conflict of Interest Code
and Rescinding Resolution No. 14400." Adopted.
Councilmember Gilmore inquired whether new positions have been added or deleted.
The City Attorney responded the Conflict of Interest Code is reviewed periodically;
stated staff requests each department, including departments that represent various
boards and commissions, to review the Conflict of Interest [designated positions].
Councilmember Gilmore inquired whether changes could be related to employees, and
new or deleted boards or commissions.
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The City Attorney responded in the affirmative; stated changes could have been made
to an employee's title.
Councilmember Gilmore moved adoption of the resolution.
Councilmember Matarrese seconded the motion, which carried by unanimous voice
vote — 5.
( *10 -365) Ordinance No. 3019, "Revising the City's Sewer Service Charges." Finally
passed.
CITY MANAGER COMMUNICATIONS
None.
REGULAR AGENDA ITEMS
(10 -366) Resolution No. 14477, "Approving Proceedings to Refinance Installment
Payment Obligations of Alameda Municipal Power, Approving Issuance of Revenue
Bonds by the Alameda Public Financing Authority for Such Purposes, and Approving
Related Documents and Actions." Adopted.
The Alameda Municipal Power (AMP) General Manager and Paul Thimmig, Bond
Counsel, gave a brief presentation.
Councilmember Tam stated pages 34 and 35 of the Preliminary Official Statement show
the ten largest electricity customers count for 21.8% of total sales; commercial revenue
for energy sales is almost half of the total generated revenue; inquired whether there is
a great sensitivity to what happens with the top ten as it affects commercial revenue.
The AMP General Manager responded the rating agencies look at revenue
concentration; stated Alameda is considered medium concentration; very few customers
contribute a large portion of the revenues; Fitch mitigated the concern by talking about
the federal government being one of the highest customers.
Councilmember Tam inquired whether sensitivity would be acceptable if MARAD
leaves.
The AMP General Manager responded in the affirmative; stated AMP did a bottom up
risk analysis as part of the financial review over the year; the analysis looked at
recourse risks as well as load risk; revenue impacts due to customer loss, aggressive
energy efficiency programs, and lost sales has been included the amount of reserves
appropriate to hold; reserves accommodate for load loss.
Councilmember Gilmore stated page 5 of the Escrow Deposit and Trust Agreement is
an indemnification clause and states: "...whether or not any of the transactions
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contemplated hereby are consummated "; inquired whether the clause is typical because
it appears as though AMP would be indemnifying the bank if the transaction does not go
forward.
Mr. Thimmig responded the Agreement is a standard Escrow Agreement; stated the
document would be signed at the bond closing so the transaction would be moving
forward; escrows would be very short and gross funded; enough money would be put in
without reinvestment risk to repay the debt; excess money would come back to AMP;
one of the two escrows is very sophisticated in that the taxable debt would be floating
rate debt; a thirty -day notice would need to be given to bond investors; the taxable rate
would be set every week; extra money would need to be put in at the maximum rate; the
transaction fee is very little; the indemnity is over encompassing and strong; the City
would have very little risk; the Agreement language is customary.
Councilmember moved adoption of the resolution.
Councilmember Matarrese seconded the motion, which carried by unanimous voice
vote — 5.
(10 -367) Introduction of Ordinance Amending the Alameda Municipal Code by
Amending Subsection 8 -7.11 (Recreational Vehicles, Trailers, and Boat Trailers) of
Section 8 -7 (Parking Prohibitions) of Chapter VIII (Traffic, Motor Vehicles and
Alternative Transportation Modes). Introduced.
Sergeant Lynch gave a brief presentation.
Vice Mayor deHaan moved introduction of the ordinance.
Councilmember Matarrese seconded the motion, which carried by unanimous voice
vote — 5.
Councilmember Gilmore requested that Council receive an Off Agenda Report on how
the permit process is working in six months.
Mayor Johnson inquired how people would get a permit.
Sergeant Lynch responded permits would be issued by dispatchers; the permit number
would be keyed to the date and would be based on a twenty -four hour clock; officers
would be able to call dispatch to see if a vehicle has a permit for a certain date.
Mayor Johnson inquired whether people could obtain information on the City's website.
Sergeant Lynch responded that he is planning on launching information on the website
in addition to a press blitz.
ORAL COMMUNICATIONS, NON - AGENDA
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None.
COUNCIL REFERRALS
(10 -368) Consideration of Establishing a Foreign Trade Zone (FTZ) in Alameda.
Councilmember Matarrese gave a brief presentation.
Speakers: Former Councilmember Karin Lucas, Alameda; and Alex Chen, Alameda.
Mayor Johnson stated that she has had the opportunity to learn about free trade zones;
renewed interest in foreign trade zones has been due to a significant increase in tariffs
on certain items; lower taxes would apply to items assembled in the United States and
would create jobs and benefits; that she appreciates Councilmember Matarrese's
Council Referral; she thinks Council should move forward on the matter.
Vice Mayor deHaan stated the City has run through the exercise once before, but it is
time to revisit the matter.
Councilmember Matarrese moved approval of giving the Interim City Manager direction
to bring a report back on establishing a Foreign Trade Zone.
Vice Mayor deHaan seconded the motion, which carried by unanimous voice vote — 5.
(10 -369) Consider Suspending the Sunshine Task Force until the District Attorney has
Taken Action regarding the Investigatory Reports.
Mayor Johnson stated issues have come up regarding, lack of clear Council direction
and an unclear understanding regarding tasks and Council expectation; that she is very
supportive of the Sunshine Task Force; Council needs to take a step back and give
better direction regarding roles and expectations; Council gave direction to not have the
Sunshine Task Force come back until after January 2011.
Councilmember Gilmore stated the Council Referral is not the same rational that Mayor
Johnson is stating; that she is confused; the Council Referral has to do with allegations;
Mayor Johnson is discussing Council direction; Council was clear about Council
direction the last time the issue came up; the Sunshine Task Force was to do whatever
needed to be done and report back to Council.
Mayor Johnson stated events have occurred that make her think Council needs to step
back and give more thought on how Council wants the Sunshine Task Force to proceed
and whether Council wants the same Sunshine Task Force or wants things done
differently; issues could be discussed in more detail if the matter is brought back to
Council.
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Councilmember Gilmore inquired what events Mayor Johnson is referring to; further
inquire whether Mayor Johnson is referring to the email received from Ms. Lipow and
the testimony given at the last meeting or whether Mayor Johnson is referring to
something else.
Mayor Johnson responded that she is referring to the information that one of the
Sunshine Task Force members received; stated the whole Sunshine Task Force needs
to be revisited by Council and not for any specific reason; clearer direction is needed
before the Sunshine Task Force is sent off to do their job.
Vice Mayor deHaan stated one task referred back to the Sunshine Task Force has been
campaign reform; campaign reform was not to be finalized until January 2011.
Councilmember Gilmore stated campaign reform could be finalized before January
2011 but would not go into effect into January 2011.
Vice Mayor deHaan stated mixed signals were received regarding having three
meetings; Council needs to be more specific on directions; the Sunshine Task Force
could be suspended until issues have a better feel; that he is not against referring the
matter to the Interim City Manager or taking action.
Speakers: Jon Spangler, Alameda; Ann Spanier, League of Women Voters; and William
Smith, Alameda.
Mayor Johnson stated the Sunshine Task Force needs to be beyond question regarding
open government, accountability, and ethics; because of current events, Council cannot
say to the public that the Sunshine Task Force has met said standards and there is
reason to suspend the Sunshine Task Force and reconvene the Sunshine Task Force
after Council discussion.
Councilmember Matarrese stated Council can act appropriately when the District
Attorney's investigation is completed; the Sunshine Task Force will not be meeting until
September; Council can agendize direction, composition, and mission at a future
meeting; there is no risk now because there is no meeting [until September]; the
Sunshine Task Force is an advisory body that would make recommendations; Mr. Smith
brought up a good point regarding how email is used; that he would not support
suspending activity because the Sunshine Task Force is self- suspended; he would
welcome additional discussion to clarify the Sunshine Task Force's role.
The City Attorney stated the City has an email policy which states that City email has no
privacy expectation; City email is to be used for City purposes; the email policy has
been fairly long standing; every employee and official signs a receipt of the policy; that
she sent a written request to John Knox White requesting the return of the confidential
Closed Session packet comprised of 698,000 bites of information that clearly shows that
Councilmember Tam forwarded information to Mr. Knox White; that she has not
received any response.
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Mayor Johnson inquired whether Mr. Knox White would be complying with the request.
Mr. Knox White responded that he received the City Attorney's request last week; stated
that his attorney would be sending a response tomorrow; that he would not comply with
the request given that the investigation is open; however, he wants to state for the
record that he believes Councilmember Tam inadvertently sent the email to him; the
email was never read; Councilmember Tam also sent the public agenda; that he will
maintain confidentiality until the District Attorney's investigation is finished.
The City Attorney inquired whether Mr. Knox White admits that he is in receipt of the
email, to which Mr. Knox White responded in the affirmative.
The City Attorney inquired whether it did not occur to Mr. Knox White to call the City or
advise the City Attorney that the email was received inadvertently and inquire what to
do with the email although the email was clearly marked "Attorney- Client Privileged ".
Mr. Knox White responded that he is not in the position to discuss the matter right now.
Mayor Johnson stated issues need to be resolved before any future Sunshine Task
Force meetings; Council needs to have a discussion on the matter.
Vice Mayor deHaan stated that he prefers to suspend the Sunshine Task Force until
January 2011.
Councilmember Gilmore stated the recommendation seems to be backwards;
suspending the Sunshine Task Force before the District Attorney acts and makes
findings is exactly the opposite of Sunshine principles and justice; Council should wait
and let the District Attorney speak on the matter; the Country has been built on the
principles of innocent until proven guilty; the Council Referral indicates that a Sunshine
Task Force member is guilty; the individual has not been charged with anything;
everyone at some point in time has been a passive recipient of emails.
Mayor Johnson stated that she is not saying the Mr. Knox White is guilty of anything,
but is saying that the issue casts a shadow over the Sunshine Task Force's credibility
because of events that have occurred; the investigative report notes that Mr. Knox
White received an email that he was not a passive recipient of; conduct has been
questionable; people believe receiving and sending the email is wrong.
Councilmember Gilmore inquired whether Council would be receiving a Council Referral
regarding campaign reform because the Sunshine Task Force is suspended.
Mayor Johnson responded that she does not know why a Councilmember would
request a Council Referral on campaign reform.
Vice Mayor deHaan stated that he reserves the right to ask Councilmembers if
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contributions over $250 have been received; Councilmembers would have the option to
answer or not.
Councilmember Tam read the following statement for the record: the bottom line is that
she has done nothing wrong; make no mistake — these letters are from a hired gun
lawyer, and the Mayor and the Interim City Manager are using the lawyer to try to
silence her in her effort to keep Alameda City government open and honest; that her
correspondence shows that she has diligently followed up on tough questions posed to
the Interim City Manager; correspondence also shows that she has pushed for those
important questions to be set on the Council's agenda; apparently some would have
preferred that questions go unanswered; that she will not be intimidated in her effort to
serve the people of Alameda and looks forward to her name being cleared in this
investigation; she will submit for the record to the City Clerk the press release she sent
regarding her attorney being the contact person; the question she has regarding the
Council Referral is when did the City of Alameda become allergic to sunshine and open
and honest government; when did every conversation and email between the City's
partners, the community, the hard working women and men of the fire department, or
upstanding members of the Sunshine Task Fore become suspect; the public should
know this; suspending the Sunshine Task Force when just given an assignment is
totally inconsistent with Council direction; that she does not support the Council Referral
for obvious reasons.
Mayor Johnson stated that she does not think getting into discussions regarding the
investigative report is appropriate; her intent is not to make Alameda government less
open; issues cannot be confused regarding releasing confidential, attorney - client
documents to parties that the City is in negotiations with and making the information
available to the public.
Councilmember Tam stated said allegation is with no basis or fact.
Mayor Johnson stated Councilmember Tam has indicated that there is intent on her part
to make Alameda government less transparent, which is not the case; the Sunshine
Task Force should be suspended until Council can get rid of the cloud over the
Sunshine Task Force.
Vice Mayor deHaan inquired whether Council wants to go forward with deferring the
Sunshine Task Force until September; that he would suggest deferring the Sunshine
Task Force until January, 2011.
The Interim City Manager stated a motion is needed; staff has been criticized that tea
leaves have not been read correctly; that she wants a clear understanding of Council
direction.
Councilmember Matarrese stated the matter is nebulous on some level; the Sunshine
Task Force would meet in September and Council can make a judgment then.
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Councilmember Matarrese moved approval of the Sunshine Task Force holding its
September meeting and that the matter returns to Council if anything is raised in
response to the investigation.
Councilmember Gilmore seconded the motion, which carried by the following voice
vote: Ayes: Councilmembers deHaan, Gilmore, Matarrese, and Tam — 4. Noes: Mayor
Johnson —1.
Vice Mayor deHaan requested feedback on progress made.
The Deputy City Manager — Administrative Services stated the Sunshine Task Force
had a meeting last week; staff was unable to attend the meeting due to other
commitments; the Sunshine Task Force intended to have a workshop on July 17th; but
more prep time and publicity was needed and the workshop has been moved to
September.
Vice Mayor deHaan inquired how much work would be left after the workshop.
The Deputy City Manager — Administrative Services responded that she thinks the
Sunshine Task Force could rap up in one to two meetings but would not want to make a
promise.
Vice Mayor deHaan requested feedback on the matter.
(10 -370) Discuss /Review City Contributions to 4th of July Parade and Determine, If
Necessary, Any Rules Regarding Participation, Signs, Campaigning, etc.
Councilmember Gilmore gave a brief presentation.
Mayor Johnson stated last minutes issues will always surface; every year the Parade
Committee has issues that are a crisis on the morning of the Parade.
Councilmember Gilmore stated that she hopes some universal issues could be cut.
Councilmember Matarrese moved approval of the referral.
Councilmember Tam seconded the motion, which carried by unanimous voice vote — 5.
COUNCIL COMMUNICATIONS
(10 -371) Consideration of Mayor's nominations for appointment to the Housing
Commission, Planning Board, Public Utilities Board, and Oakland Chinatown Advisory
Committee.
Mayor Johnson nominated Ian Couwenberg for appointment to the Housing
Commission and Michael Krueger for appointment to the Oakland Chinatown Advisory
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Committee.
ADJOURNMENT
There being no further business, Mayor Johnson adjourned the meeting at 2:12 a.m.
Respectfully submitted,
Lara Weisiger
City Clerk
The agenda for this meeting was posted in accordance with the Brown Act.
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