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2010-09-07 Packeta y CITY OF ALAMEDA •CALIFORNIA IF YOU WISH TO ADDRESS THE COUNCIL: 1. Please file a speaker's slip with the Assistant City Clerk and upon recognition by the Mayor, approach the podium and state your name; speakers are limited to three (3) minutes per item 2. Lengthy testimony should be submitted in writing and only a summary of pertinent points presented verbally 3. Applause and demonstration are prohibited during Council meetings TUESDAY SEPTEMBER 7,2010 7:00 P.M. AGENDA REGULAR MEETING OF THE CITY COUNCIL [Note: Regular Council Meeting convenes at 7:00 pm, City Hall, Council Chambers, corner of Santa Clara Avenue and Oak Street] The Order of Business for City Council Meeting is as follows: 1. Roll Call 2. Agenda Changes 3. Proclamations, Special Orders of the Day and Announcements 4. Consent Calendar 5. City Manager Communications 6. Regular Agenda Items 7. Oral Communications, Non Agenda (Public Comment) 8. Council Referrals 9. Council Communications (Communications from Council) 10. Adjournment Public Participation Anyone wishing to address the Council on agenda items or business introduced by Councilmembers may speak for a maximum of 3 minutes per agenda item when the subject is before Council. Please file a speaker's slip with the Assistant City Clerk if you wish to address the City Council. REGULAR MEETING OF THE ALAMEDA PUBLIC FINANCING 7:01 P.M. AUTHORITY, CITY COUNCIL CHAMBERS Separate Agenda SPECIAL JOINT MEETING OF THE CITY COUNCIL AND 7:02 P.M. COMMUNITY IMPROVEMENT COMMISSION, CITY COUNCIL CHAMBERS Separate Agenda PLEDGE OF ALLEGIANCE 1. ROLL CALL City Council 2. AGENDA CHANGES 3. PROCLAMATIONS, SPECIAL ORDERS OF THE DAY ANNOUNCEMENTS 3 -A. Proclamation Declaring September 25 as Coastal Clean Up Day 2010. (Public Works) 3 -B. Presentation on the West Alameda Business Association Webster Street Jam Festival. 3 -C. Presentation by Commission on Disability Issues. 3 -D. Presentation by the Alameda Hospital District. 3 -E. Announcement regarding the Sunshine Task Force Workshop to be held on September 11, 2010 at 1:00 p.m., at the Alameda Free Library, Stafford Meeting Room 4. CONSENT CALENDAR Consent Calendar items are considered routine and will be enacted, approved or adopted by one motion unless a request for removal for discussion or explanation is received from the Council or a member of the public 4 -A. Minutes of the Regular City Council Meeting held on July 20, 2010, and the Special City Council Meeting held on July 27, 2010. (City Clerk) 4 -B. Bills for Ratification. (Finance) 4 -C. Recommendation to Empower the City Attorney to Employ Special Legal Counsel to Defend SCC Alameda Point, LLC, v. City of Alameda et al. (City Attorney) 4 -D. Recommendation to Allocate $1,088,382 in Urban Runoff Funds and Award a Contract in the Amount of $1,088,382, Including Contingencies, to GSE Construction for the Upgrades to the Northside Storm Drain Pump Station, No. P.W. 02- 10 -06. (Public Works) 4 -E. Recommendation to Award a Contract in the Amount of $1,372,209, Including Contingencies, to WR Ford for the Cyclic Sewer Replacement Project, Phase 8, No. P.W. 01- 10 -03. (Public Works) 4 -F. Recommendation to Award a Contract in the Amount of $88,500, Including Contingencies, to Clear Lakes, Inc., for Vegetation Management, Debris Management, and Water Quality Monitoring for South Shore Lagoons, No. P.W. 07- 10 -19. (Public Works) 4 -G. Recommendation to Award a Contract in the Amount of $337,472, Including Contingencies, to Weber Tractor Service 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. (Public Works) 4 -H. Recommendation to Adopt Plans and Specifications and Authorize a Call for Bids for Sewer Point Repairs and Asphalt Concrete Replacement within the City of Alameda, No. P.W. 07- 10 -20. (Public Works) 4 -I. Adoption of Resolution Authorizing the Interim City Manager to File an Application for $837,000 in Federal Surface Transportation Program and /or Congestion Mitigation and Air Quality Improvement Funding for the City of Alameda Certain Street Rehabilitation, No P.W. 08 -10 -21 (Otis Drive, Westline Drive to Willow Street), Appropriate $108,442 in Proposition 42 Funds as the Necessary Local Match, and Stating the Assurance to Complete the Project. (Public Works) 4 -J. Adoption of Resolution Ratifying the Public Utilities Board's Approval of the First Amendment to Agreement for Construction, Operation, and Financing of Combustion Turbine Project Number One and the Quitclaim Deed Form for the Roseville Combustion Turbine Units, and Authorizing the General Manager of Alameda Municipal Power to Execute the First Amendment and Authorizing the Mayor to Execute the Quitclaim Deed Form. [Requires Four Affirmative Votes] (Alameda Municipal Power) 4 -K. Adoption of Resolution Appointing Mayor Johnson as the City's Delegate for Voting Purposes at the League of California Cities Annual Business Meeting. (City Manager) 4 -L. Adoption of Resolution Stating the City's Positions on the League of California Cities Annual Business Meeting Resolutions. (City Manager) 5. CITY MANAGER COMMUNICATIONS (Communications from City Manager) 5 -A. Presentation on Planning and Building Fees 5 -B. Urban Greening Planning Grant 5 -C. Citywide Records Retention and Destruction Policy 5 -D. Executive Management Compensation: Form and Process 6. REGULAR AGENDA ITEMS 6 -A. Adoption of Resolution Appointing Madeline Deaton as a Member of the Public Utilities Board. 6 -B. Recommendation to Pursue Activation of the City of Alameda's Participation in the City of Oakland's Foreign Trade Zone #56 in Response to Appropriate Business Opportunities. (Economic Development) 7. ORAL COMMUNICATIONS, NON AGENDA (Public Comment) Any person may address the Council in regard to any matter over which the Council has jurisdiction or of which it may take cognizance, that is not on the agenda 8. COUNCIL REFERRALS Matters placed on the agenda by a Councilmember may be acted upon or scheduled as a future agenda item 9. COUNCIL COMMUNICATIONS (Communications from Council) Councilmembers can address any matter, including reporting on any Conferences or meetings attended 10. ADJOURNMENT City Council Materials related to an item on the agenda are available for public inspection in the City Clerk's Office, City Hall, Room 380, during normal business hours Sign language interpreters will be available on request. Please contact the City Clerk at 747 -4800 or TDD number 522 -7538 at least 72 hours prior to the Meeting to request an interpreter Equipment for the hearing impaired is available for public use. For assistance, please contact the City Clerk at 747 -4800 or TDD number 522 -7538 either prior to, or at, the Council Meeting Accessible seating for persons with disabilities, including those using wheelchairs, is available Minutes of the meeting available in enlarged print Audio Tapes of the meeting are available upon request Please contact the City Clerk at 747 -4800 or TDD number 522 -7538 at least 48 hours prior to the meeting to request agenda materials in an alternative format, or any other reasonable accommodation that may be necessary to participate in and enjoy the benefits of the meeting 5 l CITY OF ALAMEDA CALIFORNI y REGULAR MEETING OF THE ALAMEDA PUBLIC FINANCING AUTHORITY (APFA) TUESDAY SEPTEMBER 7, 2010 7:01 P.M. Location: Council Chambers, City Hall, corner of Santa Clara Avenue and Oak Street Public Participation Anyone wishing to address the Board on agenda items or business introduced by Board Members may speak for a maximum of 3 minutes per agenda item when the subject is before the Board. Please file a speaker's slip with the Assistant City Clerk if you wish to speak on an agenda item. 1. Roll Call APFA 2. Minutes 2 -A. Minutes of the Regular APFA Meeting of July 20, 2010. (City Clerk) 3. Agenda Items None 4. Oral Communications (Public Comment) Any person may address the Board in regard to any matter over which the Board has jurisdiction or of which it may take cognizance that is not on the agenda 5. Board Communications (Communications from the Board) 6. Adjournment APFA CITY OF ALAMEDA CALIFORNIA SPECIAL JOINT MEETING OF THE CITY CO UNCIL A ND COMMUNITY IMPROVEMENT COMMISSION (CIC) TUESDAY SEPTEMBER 7 2010 7:02 P.M Location city council chambers, city Hall, corner of Santa Clara Ave and oak street Public Partici ation Anyone wishing to address the Council /Commission on agenda items or business introduced by the CounciI /Commission may speak for a maximum of 3 minutes per agenda item when the subject is before the Council /Commission. Please file a speaker's slip with the Assistant city clerk if you wish to speak. 1. ROLL CALL city Council, CIC 2. PROCLAMATIONS, SPECIAL ORDERS OF THE DAY ANNOUNCMENTS 2 -A. Presentation on Facade Assistance Program for Fiscal Year 2009 -2010. [CIC] (Economic Development) 3. MINUTES 3--A. Minutes of the Joint City Council, Alameda Reuse and Redevelopment Authority, and community Improvement commission Meetings held on July 20, 2010, and July 27, 2010. [city council and CIC] (City clerk) 4. AGENDA ITEMS 4-A. Recommendation to Authorize the Community Improvement commission of the City of Alameda to Enter into an Exclusive Negotiation Agreement with Warmingt0n Residential for Redevelopment of the city's corporation Yard Located at 1616 Fortmann Way and the city's Animal shelter Located at 1590 Fortmann Way. [City Council]; and Recommendation to Approve an Exclusive Negotiation Agreement by and between the Community Improvement Commission and Warmington Residential for Redevelopment of the City's Corporation Yard Located at 1616 Fortmann Way and the City's Animal Shelter Located at 1590 Fortmann Way. [CIC] (City Manager) 5. ADJOURNMENT --city council, CIC WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS W}fER£AS, Coastal Cleanup Day provides an opportunity to recognize the need to protect the ecological health and beauty of Alameda; and Alameda_ns take great pride in their city's natural beauty and support a clean and safe environment in which to live and raise their children; and the waterways; and W9E12EA5, the City of Alameda Public Works Department will sponsor a Coastal Cleanup Day event in partnership with Alameda County Industries and the East Bay Regional Park District, between 9:00 a.m. and noon on September 25. NOW T'fEt�EFORE BE IT 2ES0(,VED that I, Beverly J. Johnson, Mayor of the City of Alameda, do hereby proclaim September 25 as COASrAL CLEANUP DAY 2010 and invite all Alameda residents, businesses, civic groups, government agencies, and other organizations to participate. City Council Agenda Item #3 -A ev 1 J. J son 09 -07 -10 ayo UNAPPROVED MINUTES OF THE REGULAR CITY COUNCIL MEETING TUESDAY- -JULY 20, 2010- -7:00 P.M. Ma Johnson convened the meetin at 7:25 p.m. Councilmember Matarrese led the Pled of Alle ROLL CALL Present: Councilmembers deHaan, Gilmore, Matarrese, Tam and Ma Johnson 5. Absent: None. PROCLAMATIONS, SPECIAL ORDERS OF THE DAY ANNOUNCEMENTS. X 10- Presentation b the Park Street Business Association on the 26th Annual Art and Wine Faire. Robb Ratto, Park Street Business Association, presented g lasses to the Cit Council; thanked the Cit for supportin the Wine Faire; stated the Wine Faire is this weekend from 9:00 a.m. to 6:00 p.m. Ma Johnson called a recess at 7:28 p.m. and reconvened the meetin at 1:10 a.m. AGENDA CHANGES None. CONSENT CALENDAR Ma Johnson announced that the Resolution Amendin Resolution No. 9460 para g raph no. 1 0- was removed from the Consent Calendar for discussion. Vice Ma deHaan moved approval of the remainder of the Consent Calendar. Councilmember Matarrese seconded the motion, which carried b unanimous voice vote 5. Items so enacted or adopt are indicated b an asterisk precedin the para number.] (*10- Minutes of the Special Joint Cit Council and Public Utilities Board Meetin and Re Cit Council Meetin Held on Jul 6, 2010; and the Special Cit Council Meetin Held on Jul 7, 2010. Approved. (*10- Ratified bills in the amount of $1,852,757.95. Re Meetin Alameda Cit Council Jul 20, 2010 *'10- Recommendation to Award Contract in the Amount of $88,974, Including Contingencies, to Roto Rooter for Citywide Sewer Mains video Inspection, Phase 3, No. P.W. 02-10-08. Accepted. *10- Recommendation to Amend the consultant contract in the Amount of $38,082, Including contingencies, to Noll Tam for construction of Administration for the Neighborhood Library Improvement Project, No. P.W. 10-09-29. Accepted. *10- Recommendation to Adopt Plans and Specifications and Authorize a call for Bids for the Upgrades to the Northside Storrs Drain Pump Station, No. P.W. 02- 10 -00. Accepted. *1 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 201 0 -201 1 Phase 1 1 No. P.W. 06-10-14. Accepted. *10- 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- 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 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. 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- Resolution No. 14470 "Amending Resolution No. 9400 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. Councilrnember Gilmore inquired whether changes could be related to employees, and new or deleted boards or commissions. Regular Meeting Alameda city Council 2 July 20, 2010 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. ordinance No. 3019 "Revising the City's Server service Charges." Finally passed. CITY MANAGER COMMUNICATIONS None. ri �1 W, all 1 MATO I 40 1 97MA I I 10-- Resolution Flo. 14477 "Approving Proceedings to Refinance Installment Payment obligations of Alameda Municipal Pager, 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 Tarn 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 ghat 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 fear 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 Regular Meeting Alameda City Council 3 July 20, 2010 an indemnification clause and states: "...whether or not any of the transactions 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 meek; 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. o- 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 V I I I (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 Cali 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. Regular Meeting Alameda City Council 4 July 20, 2010 ORAL COMMUNICATIONS, NON-AGENDA None. COUNCIL REFERRALS 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; renenewed 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- )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 carne 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 hoer Council wants the Sunshine Task Force to proceed and whether Council grants 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. Regular Meeting Alameda City Council 5 July 20, 2010 Councilmember Gilmore inquired what events Mayor Johnson is referring to; further inquired 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 del -laan 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 deFaan 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. S Bakers: 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 Regular Meeting Alameda City Council 6 July 20, 2010 received any response. 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 mould not comply with the request given that the investigation is open; however, he wants to state for the record that he believes Councilmember Tangy 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 llll-r. Knox W hite 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 ghat 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. Regular Meeting Alameda City Council 7 .July 20, 2010 Vice Mayor deHaan stated that he reserves the right to ask Councilmerr'bers it 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 Tarn stated said allegation is with no basis or fact. [Mayor Johnson stated Councilmember Tam has indicated that there is an 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 IMatarrese stated the matter is nebulous on some level; the Sunshine Task Force would meet in September and Council can make a judgment then. Regular (Meeting Alameda City Council 8 July 20, 2010 Councilmember Matarrese moved approval of the Sunshine Task Force holding its September meeting and that the matter return 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 17 th 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- 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 arrays 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 b. COUNCIL COMMUNICATIONS 1 g 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 Regular Meeting Alameda city Council 9 July 20, 2010 Commission and Michael Krueger for appointment to the Oakland Chinatown Advisory 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. Regular Meeting Alameda City Council 10 July 20, 2010 UNAPPROVED MINUTES of THE SPECIAL CITY COUNCIL MEETING TUESDAY- -JULY 27 -6:00 P.M. Mayor Johnson announced that the City Council attempted to meet in Closed session tonight; due to the pending investigation into the official conduct of Councilmernber Tara, which has been filed with the District Attorney, Councilmerrber Tangy was asked to recuse herself from the Closed Session; Councilrr ember Tangy refused to do so; as a result, the City Council did not meet in Closed session, but continued the matter to a future date; the City was unable to transact its official business while the investigation is pending before the District Attorney's office and looks to the District Attorney and Grand Jury to expedite a resolution of the investigation. (10- )Conference with Legal Counsel Existing Litigation (54956.9); Name of case: Collins v. City of Alameda (Boatworks). Not heard. Respectfully submitted, Lara Weisiger City Clerk The agenda for this meeting was posted in accordance with the Brown Act. Special Meeting Alameda City Council July 27, 2010 CITY of ALAN! EDA Memorandum To: Honorable Mayor and Members of the City Council From: Fred Marsh Controller Date: September 2, 2010 Re: List of Warrants for Ratification This is to certify that the claims listed on the attached check register and shown below have been approved by the proper officials and, in my opinion, represent fair and just charges against the City in accordance with their respective amounts as indicated thereon. Check Numbers Amount 230387 231 681 (Vendor Checks) $9,557,916.60 V20893 V21047 (ACH Retiree Medical Benefit Reimbursements) $110,892.99 EFT 880 EFT914 (Vendor Wire Transfers) 18,095,951.33 Void Checks: 230227 ($12 229900 ($68,854.00) 230267 ($819.35) 230414 ($235.96) 230823 ($894.09) 229338 ($1,000.00) 230993 ($15.44) 231029 ($240.00) 231109 ($538.08) 229126 ($158.00) 231350 ($1,108.00) 228715 ($786.91) GRAND TOTAL $27 Respectfully submitted, e low �Z� I V) Ox� Controller BILLS #4 -B Council Warrants 09/07/10 917/2010 H H r-i H mm or rYaOdi o o o m m cnm o Nd'�,o 0 000000000000 m mr•0N 000000 H ODN�oN00 o Ln o 0 0 (nra %t r- m 0 0 omoNoomLn000r- N rYammN 000000 di o 0 0 6 9 0 H 0 mrir�+ re) �ow O N N rn r- re) 0 o asHo di dlInMMr` 11(3)00r -r-K:14 qj+ w rnrnNLn o0o0oo O Px 00(Y)rn�or•0)R:T �D r- 00 H 00 m N O rnrr- o (nNHODH(nLn HH (Y) r- OD H 000000 N W N rya m m r- N H r• m N m H Ln H r- H H N r- Ln H H m Lra Ln Ln Ln Ln Ln Pa R; dpw14 N ri d' w N W H r-I N N N O CQ z H r-i H wUo �Z 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City of Alameda, et al. BACKGROUND Council authorization is required for the city Attorney to employ special legal counsel when legal fees are estimated to exceed $35,000, pursuant to city of Alameda Resolution No. 13393. DISCUSSION SCC Alameda Point, LLC, filed and served a lawsuit against the city of Alameda, the Alameda Reuse and Redevelopment Authority, and the. Community Improvement commission in August 2010. The city Attorney's office retained David Newdorf of Newdorf Legal based on his experience defending a public entity against similar claims. He has 25 years of legal experience and worked as a trial lawyer for the city of San Francisco. Mr. Newdorf operates a small law office. Because of the breadth of material involved in the multi -year negotiations toward the development of Alameda Point, additional counsel is warranted. The City Attorney's office retained Geoff Robinson of the law firm Bingham McCutchen. Mr. Robinson is a land use litigator and has practiced law for more g than 25 years. The outside counsel for Alameda who participated in ne otiations with Suncal over the course of many months and provided transactional advice is with the same firm and Alameda will benefit from the law firm's familiarity with the subject matter. Legal fees have been incurred and are anticipated to exceed $35,000 in the months as the lawsuit goes forward. FINANCIAL IMPACT The cost of special legal counsel will be paid by the ARRA legal budget. City Council Agenda Item ##4 -C Honorable Mayor and Members of the City Council September 7, 2010 Page 2of2 MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE This action does not affect the Alameda Municipal Code. RECOMMENDATION Empower the City Attorney to employ special legal counsel Newdorf Legal and Bingham McCutchen to defend sCC Alameda Point, LLC, v. City of Alameda, Alameda Reuse and Redevelopment Authority, and the Community Improvement Commission of the City of Alameda. Respectfully submitted, Teresa Highsmith City Attorney By: Donna Mooney Acting City Attorney CITY OF ALAMEDA Memorandum To: Honorable Mayor and Members of the City council From: Ann Marie Gallant Interim City Manager Date: September 7, 2010 Re: Allocate $1,088,382 in Urban Runoff Funds and Award a Contract in the Amount of $1,088,382, Including Contingencies, to GSE .Construction for the U rades to the Northside Storm Drain Pump Station No. P.W. 02 -10 -08 BACKGROUND On April 0, 2010, the city Council awarded a contract in the amount of $9',978, including contingencies, to Schaaf Wheeler Consulting Civil Engineers for the design and preparation of plans and specifications for upgrades to the northside storm drain pump station. On July 20, 2010, the City council adopted plans and specifications and authorized a call for bids for the northside storm drain pump station, No. P.W.. 02.10 -00. The proposed project will install a new standby generator with enclosure and fuel.tank, replace the existing control panel, and upgrade the System Control and Data Acquisition (SCADA) system hardware/software. DISCUSSION To solicit the maximum number of bids and most competitive. price,. plans and specifications were provided to 19 separate builders exchanges throughout the Bay Area. A notice of bid was also published in the Alameda .journal. Ten cnntradtors.s!ibmitted bids, and the bids were opened on August 27, 2010. The list of qualified .bidders, from lowest to highest total project cost, is as follows: Bidder Location Base Enid CS l Construction Livermore $9.06. .00 Blocka Construction, Inc. Fremont $924,500.00. JMB construction South San Francisco $907,740.00 Conco West, Inc. Manteca $9.9.2,250.00 Manito Construction, Inc. Pleasanton $1,014,0.1 5.00 Valentine Corporation San Rafael $1,023,369.00 Pacific Infrastructure Pleasanton $1,035,000.00 Tico Construction Palo Cedro $1,047;100.00 Pacific Mechanical Corporation Concord $1,064;425.00 Steiny and Company, Inc. Vallejo $1 City Council Agenda Item #4- Honorable Mayor and September 7, 2010 Members of the City council Page 2 of 3 Public Works staff contacted several references provided by the low bidder and received positive feedback about the requirements and quality and timeliness of their work. Staff proposes to award a contract to GSE Construction for a total amount of $1,088,382, including contingencies. A copy of the contract is on file in the City clerk's office. The contract allows for annual extensions on a year -to -year basis, for up to four additional years, based on mutual agreement and satisfactory performance of all aspects of the contract. If extended, the contract would be for the same terms, and contract prices would be adjusted in accordance with the construction cost index reported in the Engineering News Record for the San Francisco Bay Area. FINANCIAL IMPACT Design and contract administration costs are budgeted in the capital Improvement Program (Project No. 99000) for the project; however, construction cost is not.bud 9 eted. Staff proposes to allocate $1,088,382 from the Urban Runoff fund for this project, which has sufficient funds. No General Fund monies are required. MUNICIPAL CODE /POLICY DOCUMENT CROSS REFERENCE This action does not affect the Alameda Municipal code. ENVIRONMENTAL REVIEW In accordance with the California Environmental Quality Act (CEQA), this project is Categorically Exempt under CEQA Guidelines, Section 15303, New Construction or Conversion of Small Structures. RECOMMENDATION Allocate $1,088,382 in Urban Runoff funds and award a contract in the amount of $1,088,382, including contingencies, to GSE Construction for the upgrades to the northside storm drain pump station, No. P.W. 02- 10 -00. Honorable Mayor and Members of the City Council Approved as to funds and account, h A, Fred Marsh Controller September 7, 2014 Page 3of3 Exhibit: 1. Contract (on file in the City Clerk's office) CITY of ALAMEDA Memorandum To: Honorable Mayor and Members of the City Council From: Ann Marie Gallant Interim City Manager Date: September 7, 2010 Re: Award a Contract in the Amount of $1,372,209, Including Contingencies, to WR Forde for the Cyclic Seger Replacement Project, Phase 8, No. P. W. 01- 10 -03 BACKGROUND On July 6, 2010, the City Council adopted plans and specifications and authorized a call for bids for the cyclic sewer replacement project, phase 8, No. P. W. 01- 10 -03. The proposed project will rehabilitate approximately 6,500 linear feet of existing sanitary sewer pipeline, 3,500 linear feet of service laterals, 29 manholes, and construct other associated work on Buena Vista Avenue, from Grand Street to Chapin Street, Lincoln Avenue, from Walnut Street to Willow Street, and Pacific Avenue, from Sixth Street to Webster Street. DISCUSSION To solicit the maximum number of bids and most competitive price, plans. and specifications were provided to 19 separate builders exchanges throughout the Bay Area. A notice of bid was also published in the Alameda Journal. Bight contractors submitted bids, and the bids were opened on August 17, 2010. The list of qualified bidders, from lowest to highest total project cost, is as follows: Bidder Location Base Bid WR Forde Richmond $1,189,425.00 Ran er Pipelines, Inc. San Francisco $1 Darcy Harty Construction, Inc. San Francisco $1,25.8,850.00 D &D Pipelines San Francisco $1;386,150.00 G h ilotti Construction Santa Rosa $1,489, Mountain Cascade, Inc. Livermore $1 MDF Pipelines Dublin $1 J &III, Inc. Livermore $1,590 Public Works staff contacted several references provided by the low bidder and received positive feedback on the ability of the company to meet the project requirements and the quality and timeliness of their work. City Council Agenda Item #4 -1E 09 -07 -10 Honorable Mayor and September 7, 2010 Members of the City council Page 2 of 2 The project specifications included an add alternate for the handling and disposal of hazardous materials encountered during the course of the project. Staff proposes to award a contract to wR Forde for a total amount of $1,372,209, including the add alternate for $3,300 and a 15% contingency. A copy of the contract is on file in the Cit y clerk's office. The contract allows for annual extensions on a year -to -year basis, for up to four additional years, based on mutual agreement and satisfactory performance of all aspects of the contract. If extended, the contract would be for the same terms, and contract prices would be adjusted in accordance with the construction cost index reported in the Engineering g g News Record for the San Francisco Bay Area. FINANCIAL IMPACT The project is budgeted in the CIP (Project No. 95 -02), with monies allocated from the Sewer Enterprise Fund. There is no impact to the General Fund. M CODE/POLICY DOCUMENT CROSS REFERENCE This action does not affect the Alameda Municipal code. ENVIRONMENTAL REVIEW In accordance with the California Environmental Quality Act (CEQA), this project is Categorically Exempt under CEQA Guidelines Section 15301(c), Existing Facilities, RECOMMENDATION Award a contract in the amount of $1,372,209, including contingencies, to WR Forde for the cyclic sewer replacement project, phase 8, No. P. W. 01- 10 -03. Approved as to funds and account, Fred Marsh Controller BH: PS:gc Exhibit: 1. Contract (on file in the City Clerk's office) CITY of ALAMEDA Memorandum To: Honorable Mayor and Members of the City Council From: Ann Marie Gallant Interim City Manager Date: September 7, 2010 Re: Award a Contract in the Amount of $88,500, Including contingencies, to Clean Lakes, Inc., for 'Vegetation Management, Debris Management, and Water Quality Monitoring for South Shore La oons No. P. W. 07 -10 -19 BACKGROUND On June 10, 2010, the Public Works Department issued a Request for. Bids (RFB)f0r vegetation management, debris management, and grater quality monitoring .for South Shore lagoons, Igo. P. W. 07-10 -19. The project includes maintaining the. lagoon system in 9 y accordance with all regulatory permits and clean grater requirements. Work includes: removing vegetation, litter, and debris, conducting water quality tests; meeting monthl y with Public Works staff and the Alameda vilest Lagoon Homeowners Association (AW and providing a monthly report on maintenance activities and budget status. DISCUSSION To solicit the maximum number of bids and most competitive price, the .AFB was provided to 19 separate builders exchanges throughout the Bay Area. A notice of bid .eras also published in the Alameda Journal. Three contractors submitted bids, and the. bids were opened on July 1, 2010. The list of qualified bidders, from lowest to highest total project g p cost, is as follows: Bidder Location Base Bid Clean Lakes, Inc. Martinez, CA $73 Terra Care Associates Loomis, CA $76 Aquatic Environments, Inc. Alamo, CA $106 Public Works staff contacted several references provided by the lour bidder and received positive feedback on the ability of the company to meet the project requirements and the quality and timeliness of their work. Staff proposes to award a contract to Clean Lakes Inc., for a total amount of $88,500, including contingencies. The contract allows for annual extensions on a year -to -year basis, for up to four additional years, based on mutual agreement and satisfactory performance of all aspects of the contract. If extended, the contract would be for the same terms,. and contract prices would City Council Agenda Item ##4 -F 09 -07-10 Honorable Mayor and Members of the City Council September 7, 2010 Page 2 of 2 be adjusted in accordance with the construction cost index reported in the Engineering News Record for the San Francisco Bay Area. A copy ofthe contract is on file in the City Clerk's office. FINANCIAL IMPACT The funds for this project are shared equally between the Urban Runoff fund and the AWLHOA. No General Fund monies are required. MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE This action does not affect the Alameda Municipal Code. ENVIRONMENTAL REVIEW In accordance with the California Environmental Quality Act (CEQA), this project is Categorically Exempt under CEQA Guidelines Section 15301(c), Existing Facilities. RECOMMENDATION Award a contract in the amount of $88,500, including contingencies, to Clean Lakes, Inc., for vegetation management, debris management, and water quality monitoring for south Shore lagoons, No. P. W. 07- 10 -19. Approved as to funds and account, Fred Marsh Controller JB :LSagc Exhibit: 1. Contract (on file in the City Clerk's office) CITY OF ALAMEDA Memorandum To: Honorable Mayor and Members of the City Council From: Ann Marie Gallant Interim City Manager Date: September 7, 2010 Re: Award a Contract in the Amount of $337,472, Including Contingencies, to Weber Tractor Service for the Repair of Portland Cement Concrete Sidewalk, Curb, Cutter, Driveway, and minor Street Patching, FY10 -11, Phase 11. No. P.W. 06- 10--14 BACKGROUND On July 20, 2010, the City Council adopted plans and specifications and authorized a call for bids for the repair of Portland Cement Concrete (PCC) sidewalk, curb, gutter, driveway, and minor street patching, FY10 -11, phase 11, No. P.W. 06- 10 --14. The proposed project will replace approximately 6,000 linear feet of sidewalk. During the construction, Public Works staff will work closely with a certified arborist to examine the trees .causing the sidewalk uplift and to determine the best course of action for the long terra viability of the trees and to minimize future sidewalk uplift. when required, the tree roots causing the uplift will be trimmed or shaved, as recommended by the arborist. DISCUSSION To Solicit the maximum number of bids and most competitive price, plans and specifications were provided to 19 separate builders exchanges throughout the. Bay Area. A notice of bid was also published in the Alameda Journal. Seven contractors submitted bids, and the bids were opened on August 19, 2010. The list of qualified bidders, from lowest to highest total project cost, is as follows: Bidder Location Base Bid Weber Tractor Service Redwood City $269,976.66 Golden Bay Construction Ha and $273,247.60 Nor -Cal Concrete Suisun $276,6'11.00 JJR Construction San Mateo $284,626.43 Sposeto Engineering Union City $312,91 0.20 Rosas Brothers Construction Oakland $326,066.00 SpenCon Construction Danville $329,586.75 City Council Agenda Item #4 -G 09-07-10 Honorable Mayor and September 7, 2010 Members of the city council Page 2 of 3 Public works staff contacted several references provided by the low bidder and received positive feedback on the quality and timeliness of their work. In addition, Weber Tractor Service has performed annual sidewalk repair and on -call concrete work for the cities. of Berkeley, Daly city, Los Altos, Redwood city, and Saratoga and, therefore, has the experience and ability to meet the project requirements. Staff proposes to award a contract to Weber Tractor Service for a total amount of $337,472, including a 25% contingency. The greater than normal contingency is requested because the bid price is competitive, there are sufficient funds available in the Capital improvement Program budget, and there is an extensive list of locations throughout the City that require sidewalk repairs. A copy of the contract is on file in the city clerk's office. The contract allows for annual extensions on a year -to -year basis, for up to four additional years, based on mutual agreement and satisfactory performance of all aspects of the contract. If extended, the contract would be for the same terms, and contract prices would be adjusted in accordance with the construction cost index reported in the Engineering News Record for the San Francisco Bay Area. FINANCIAL I M PACT The project is budgeted in the Capital Improvement Program (Project No. 98202.11), with monies allocated from Measure B and the Transportation Development Act. There is no impact to the General Fund. MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE This action does not affect the Municipal code. ENVIRONMENTAL REVIEW In accordance with the California Environmental Quality Act (CEQA), this project is Categorically Exempt under the CEQA Guidelines Section 15301(c), Existing Facilities. Honorable Mayor and Members of the City council RECOMMENDATION September 7, 2010 Page 3 of 3 Award a contract in the amount of $337,472, including contingencies, to Weber Tractor Service for the repair of PCC sidewalk, curb, gutter, driveway, and minor street patching, FY10 -11, phase 11, No. P.W. 06- 10 -14. Approved as to funds and accounts, Fred Marsh Controller BH:sP:gc Exhibit: 1. Contract (on file in the City Clerk's office) CITY of ALAS EDA Memorandum To: Honorable Mayor and Members of the City Council From: Ann Marie Gallant Interim City Manager Date: September 7, 2010 Re: Adopt Plans and Specifications and Authorize a Call for Bids for Sewer Point Repairs and Asphalt Concrete Replacement within the City of Alameda No. P. W. 07 -10 -20 BACKGROUND The Public Works Department maintains approximately 136 miles of sanitary sewer mains and 100 miles of sanitary sewer laterals within the City of Alameda. Part of the department's on -going maintenance program includes repairs to isolated areas of p i P e failure, known as sewer point repairs. Locations for point repairs are identified by the department based on routine maintenance and cleaning records, locations of previous sanitary sewer overflows, and resident calls. DISCUSSION The proposed project will complete sanitary server point repairs at various locations throughout the city. When a back -up of a sewer main or lateral occurs, the line is cleared and videoed. This identifies the location of the pipe failure and provides information to determine the extent of the repairs. The repair work is scheduled and the information describing the details of the repair is recorded and tracked for future reference. The project specifications allow for the annual extension of the contract on a year -to- year basis, for up to four additional years, based on mutual agreement and satisfactory performance of all aspects of the contract. If extended, the contract would be for the same terms, and contract prices would be adjusted in accordance with the construction cost index reported in the Engineering News Record for the San Francisco Bay Area. A copy of the plans and specifications is on file in the City Clerk's office. FINANCIAL IMPACT The project is budgeted in the Sewer Fund (602). There is no impact to the General Fund. City Council Agenda Item ##4 -H 09 -07 -10 Honorable Mayor and September 7, 2010 Members of the City Council Page 2 of 2 MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE This action does not affect the Municipal Code. ENVIRONMENTAL REVIEW In accordance with the California Environmental Quality Act (CEQA), this project is Categorically Exempt under the CEQA Guidelines Section 15302(c), Replacement or Reconstruction. RECOMMENDATION Adopt plans and specifications and authorize a call for bids for sewer point repairs and asphalt concrete replacement within the City of Alameda, No. P. W. 07- 10 -20. Approved as to funds and account, Fred Marsh Controller JB:LS:gc Exhibit 1. Plans and Specifications (on file with the City Clerk's office) CITY of ALAMEDA Memorandum To: Honorable Mayor and Members of the City Council From: Ann Marie Gallant Interim City Manager Date: September 7, 2010 Re: Adopt a Resolution Authorizing the Interim City Manager to File an Application for $837,000 in Federal Surface Transportation ra Pro ngy 0. and /or Congestion Mitigation and Air Quality Improvement Funding for the City of Alameda Certain Street Rehabilitation, No. P.W. 08 -10 -21 Otis Drive, Westline Drive to Willow Street), Appropriate $108,442 in Proposition 42 Funds for the Necessary Non-Federal. Match, and Stating the Assurance to Comr)lete the Proiect BACKGROUND The Metropolitan Transportation Commission (MTC) recently announced a new grant program known as the Congestion Management Agency (CMA) Block Program. The Block Grant Program anticipates funding for the first three years (Cycle 1) of a new six -year federal Transportation Authorization Act (TAA), ,which has yet to be approved by Congress. To provide funding for the new grant program until the TAA is enacted, the federal Safe, Accountable, Flexible, Efficient Transportation Equity Act: A.Legacy for Users (SAFETEA -LU) has been extended through December 31, 2010. The SAFETEA- LU authorized funding for the Surface Transportation Program (STP) and the Congestion Mitigation and Air Quality Improvement Program (CMAQ). Grants are available for three programs: guaranteed STP and/or .CMAQ fundin g based on the Local Streets and Roads (LSR) formula; and competitive fund for Transportation for Livable Communities (TLC) and the Regional Bicycle 'rogram (RBP). The City was unsuccessful in receiving either of the competitive funded block grants .but is eligible for the STP /CMAQ block grant. MTC plans to apply. for. funding from tl�e STP and/or CMAQ, for several sponsors, including the City of Alameda, as a p art of MTC Resolution No. 3025, "New Federal Surface Transportation Act TY09 -1 o, FY10 -11} Cycle 1 STP /CMAQ Program: Project Selection Criteria, Policy, Procedures. and Programming." DISCUSSION The City of Alameda proposes to use the STP /CMAQ funds for Otis Drive, from Westline Drive to the eastern intersection of Willow Street. This section of arterial is approximately one mile in length and serves both the local Southshore residents and City Council Report Rev Agenda Item ##4 I 0J -07-1 Honorable Mayor and September 7, 2010 Members of the City Council Page 2 of 2 the general city -wide population, including transit users. This project will reconstruct portions of the pavement and curb, and apply an asphalt surfacing to the entire street. The Cycle 1 STPICMAQ program requires a local match of 11.47% and adoption of a resolution of support by September 30, 2010. The local match is proposed to come from Proposition 42 funding. Pending approval by the federal government, the funds will be available for the upcoming federal fiscal year (FY10-1 1), which starts October 1, 2010. Construction is programmed for summer 2011. FINANCIAL IMPACT The funds for the City's annual resurfacing program are identified in the Capital Improvement Program (Project No. 82- 01 -30). The cost to resurface Otis Drive is estimated at $945,000. The project is to be funded with $837,000 in STP /CMAQ funds and $108,442 in local matching funds, to be taken from Proposition 42. No General Fund monies are required. MUNICIPAL CODE /POLICY DOCUMENT CROSS REFERENCE This action does not affect the Alameda Municipal Code. ENVIRONMENTAL REVIEW In accordance with the California Environmental Quality Act (CEQA), this project is Categorically Exempt under CEQA Guidelines Section 15301(c), Existing Facilities. In accordance with the National Environmental Protection Act (NEPA), this project is Categorically Excluded under 23 CFR 771.117(d), activity (d)(1) Highway Rehabilitation. RECOMMENDATION Adopt a resolution authorizing the Interim City Manager to file an application for $837,000 in federal STP and /or CMAQ funding for the City of Alameda certain street rehabilitation, fro. P.W. 08 -10 -21 (Otis Drive, Westline Drive to 'Willow Street), appropriate $.108,442 in Prop 42 funds as the necessary local match, and statin g the assurance to complete the project. Respectfuliv submitted, F Matthew T. Naclerio Public Works Director Approved as to funds and account, Fred )Marsh Controller Resolution of Local Support STPICMAQ Funding CITY OF ALAMEDA RESOLUTION NO. F �a AUTHORIZING THE INTERIM CITY MANAGER TO FILE AN APPLICATION FOR $837,000 IN FEDERAL SURFACE 0 TRANSPORTATION PROGRAM AND /OR CONGESTION C 0 /LITIGATION AND AIR QUALITY IMPROVEMENT FUNDING FOR THE CITY OF ALAMEDA CERTAIN STREET REHABILITATION, NO. P.W. 08- 10-21 (OTIS DRIVE, WESTLINE DRIVE TO WILLOW STREET), APPROPRIATE $1 08,442 IN PROPOSITION 42 FUNDS AS THE NECESSARY LOCAL MATCH, AND STATING THE ASSURANCE TO COMPLETE THE PROJECT WHEREAS, the City of Alameda (herein referred to as APPLICANT or SPONSOR) is submitting an application to the Metropolitan Transportation Commission (MTC) for $837,000 in funding from the federal Surface Transportation Program (STP) and/or Congestion Mitigation and Air Quality Improvement (CMAQ) program for the City of Alameda Certain Street Rehabilitation, No. P.W. 08 -10 -21 (Otis Drive, Westline Drive to Willow Street) (herein referred to as PROJECT) for the MTC Resolution, No. 3925, New Federal Surface Transportation Act (FY 2009 -10 FY 2010 -11 and FY 2011 -12) Cycle 1 STP /CMAQ Program: Project Selection Criteria, Policy, Procedures and Programming (herein referred to as PROGRAM); and WHEREAS, the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA) (Public Law 109 -59, August 10, 2005) authorized the Surface Transportation Program (23 U.S.C. 133) and the Congestion Mitigation and Air Quality Improvement Program (CMAQ) (23 U.S.C. 149) through September 30, 2009; and WHEREAS, SAFETEA has been extended through December 31, 2010 pursuant to Public Laver 111 147, /March 18, 2010 and may be subsequently extended pending enactment of successor legislation for continued funding; and WHEREAS, pursuant to SAFETEA, and the regulations promulgated thereunder, eligible project sponsors wishing to receive federal Surface Transportation Program and /or Congestion Mitigation and Air Quality Improvement Program (STP /CMAQ) funds for a project shall submit an application first with the appropriate Metropolitan Planning Organization (MPO), for review and inclusion in the MPO's Transportation Improvement Program (TIP); and WHEREAS, the MTC is the M PO for the nine counties of the San Francisco Bay region; and Resolution #4 -1 CC 9 -7 -10 WHEREAS, MTC has adopted a Regional Project Funding Delivery Policy (MTC Resolution No. 3606, revised) that sets out procedures governing the application and use of STP /CMAQ funds; and WHEREAS, APPLICANT is an eligible project sponsor for STP /CMAQ funds; and WHEREAS, as part of the application for STPICMAQ funding, MTC requires a resolution adopted by the responsible implementing agency stating the following: 1) the commitment of necessary local snatching funds of at least 11.47 and 2} that the sponsor understands that the STP /CMAQ funding is fixed at the programmed amount, and therefore any cost increase cannot be expected to be funded with additional STPICMAQ funds; and that the project will comply with the procedures specified in Regional Project Funding Delivery Policy (MTC Resolution No. 3606, revised and 4} the assurance of the sponsor to complete the project as described in the application, and if approved, as included in MTC's TIP; and 5) that the project will comply with all the project- specific requirements as set forth in the PROGRAM.; and 6) that the project (transit only) will comply with MTC Resolution No. 3866, which sets forth the requirements of MTC's Transit Coordination Implementation Plan to more efficiently deliver transit projects in the reg ion NOW, THEREFORE, BE IT RESOLVED that the APPLICANT is authorized to execute and file an application for funding for the PROJECT under the Surface Transportation Program (STP) and Congestion Mitigation and Air Quality Improvement Program (CMAQ) of SAFETEA, any extensions of SAFETEA or any successor legislation for continued funding; and be it further BE IT FURTHER RESOLVED that the APPLICANT by adopting this resolution does hereby state that: 1. APPLICANT will provide $108,442 Prop 42 local snatching funds; and 2. APPLICANT understands that the STPICMAQ funding for the project is fixed at the MTC approved programmed amount, and that any cost increases must be funded by the APPLICANT from other funds, and that APPLICANT does not expect any cost increases to be funded with additional STPICMAQ funding; and 3. APPLICANT understands the funding deadlines associated with these funds and will comply with the provisions and requirements of the Regional Project Funding Delivery Policy (MTC Resolution No. 3606, as revised); and 4. PROJECT will be implemented as described in the complete application and in this resolution and if approved, for the amount programmed in the MTC federal TIP; and 5. APPLICANT (for a transit project only) agrees to comply with the requirements of MTC's Transit Coordination Implementation Plan as set forth in MTC Resolution 3866; and 6. APPLICANT and the PROJECT will comply with the requirements as set forth in the program; and therefore be it further BE IT FURTHER RESOLVED that APPLICANT is an eligible sponsor of STPICMAQ funded projects; and be it further BE IT FURTHER RESOLVED that APPLICANT is authorized to submit an application for STP /CMAQ funds for the PROJECT; and be it further BE IT FURTHER RESOLVED that there is no legal impediment to APPLICANT making applications for the funds; and be it further BE IT FURTHER RESOLVED that there is no pending or threatened litigation that might in any way adversely affect the proposed PROJECT, or the ability of APPLICANT to deliver such PROJECT; and be it further BE IT FURTHER RESOLVED that APPLICANT authorizes its Interim City Manager, Executive Director, General Manager, or designee to execute and file an application with MTC for STPfCMAQ funding for the PROJECT as referenced in this resolution; and be it further BE IT FURTHER RESOLVED that a copy of this resolution will be transmitted to the MTC in conjunction with the filing of the application; and be it further BE IT FURTHER RESOLVED that the MTC is requested to support the application for the PROJECT described in the resolution and to include the PROJECT, if approved, in MTC's TIP. I, the undersigned, hereby certify that the foregoing Resolution was duly and regularly adopted and passed by the council of the city of Alameda in regular meeting assembled on the 7th day of September, 2g 1 O, by the following vote to twit: AYES: NOES: ABSENT: ABSTENTIONS: IN WITNESS, WHEREOF, I have hereunto set ray hand and affixed the official seal of said city this 8th day of September, 2010. Sara Weisiger, City clerk City of Alameda CITY of ALAMEDA Memorandum To: Honorable Mayor and Members of the City Council From: Ann Marie Gallant Interim city Manager Date: September 7, 2010 Re: Ratify the Public Utilities Board's Approval of the First Amendment for Construction, operation and Financing of combustion Turbine Project Number one and the Quitclaim Deed Form for the Roseville combustion Turbine Units, and Authorize the General Manager of Alameda Municipal Power to Execute the First Amendment and Authorize the Mayor to Execute the Quitclaim Deed Form (Four Affirmative votes Reauired) BACKGROUND Alameda Municipal Power is a member of the Northern California Power Agency (NCPA), a joint powers agency of the State of California. NCPA owns and operates five simple -cycle combustion turbine electricity generating units: two in Alameda, two in Roseville, and one in Lodi, each with a capacity of approximately 24.5 megawatts (MW). Together, these units constitute the NCPA Combustion Turbine Project Number One (CT1). Alameda Municipal Power (AMP) is a 13.092% participant in the CT1 project, which means that it has rights to and receives its share of the output of the generating units. The 123 MW project came online in 1985 -1986 and AMP's share of the project is 16.05 MW. This agenda item represents the final step for transferring ownership of the two electricity generating units located in Roseville to the City of Roseville. As more fully described below, this transfer of ownership process was initiated nearly three years ago when the Alameda Public Utilities Board approved the Agreement for Layoff and sale of Project Entitlement Percentage Relating to the combustion Turbine Project Number One (Layoff and sale Agreement) at its September 17, 2007 public meeting. The agreement was subsequently approved by the city council on September 18, 2007. The Layoff and sale Agreement set in motion a two-phase process for the city of Roseville to obtain outright ownership and title to the two Roseville generating units and 0.00% entitlement rights to the other three CT1 units, the ones in Alameda and Lodi. Phase I of the transfer process was initiated in 2007 upon execution of the Layoff and Sale Agreement. Phase 11 is triggered when the outstanding bonds sold for the project are retired on August 16, 2010. To complete Phase 11 and finalize the transfer of the two Roseville units to the city of Roseville, the First Amendment to Ag re. e m e n.t far 1 Honorable Mayor and September 7, 2010 Members of the City Council Page 2 of 3 Construction, Operation and Financing of Combustion Turbine Project Number One (the CT1 Third Phase Agreement) will need to be approved by the local governing boards of each of the CT1 project owners. Additionally, each project participant will need to approve and execute a Quitclaim Deed Form. The Public Utilities Board approved both the First Amendment to the CT1 Third Phase Agreement and the Quitclaim Deed Form at its August 10, 2010 public meeting. DISCUSSION In 2005, the City of Roseville joined the Sacramento Municipal Utility District (SMUD)Mestern Area Power Administration (western) electric control area, and the two combustion turbine units located in Roseville became subject to the SMUD] Western electric system operating rules. These rules are different than the rules applicable to the remaining three CT1 units located in Alameda and Lodi, which continue to be subject to the electric system operating rules of the California Independent System Operator (CAISO). Due to this difference in operating rules, the two Roseville generating units no longer provide maximum value to the owners whose service areas reside in the CAISO control area. Likewise, the Alameda and Lodi generating units no longer provide maximum value to the City of Roseville whose service territory is located in the SIVIUD/Western control area. This misalignment between ownership shares and project value led to an opportunity to realign ownership in the individual units for the mutual benefit of all project owners, including Alameda. Approval and execution of both the First Amendment of the CT1 Third Phase Agreement and the Quitclaim Deed Form by the remaining CT 1 participants will complete the transfer of ownership of the two Roseville generating units to the City of Roseville. The transfer will officially remove these two units from the NCPA CT1 project definition. Going forward the CT1 project will consist of two units in Alameda and one unit in Lodi, with a combined generating capacity of 74 MW. With the removal of the'two Roseville units from CT1, AIVIP's percentage share of the Alameda and Lodi units will increase from 13.002% to 21.820 Although AMP's project percentage share increases, its resulting generating capacity entitlement remains constant at 10.05 MW. This is because under the new arrangement, the CT1 project capacity decreases from approximately 123 MW (with five units) to 74 MW (with three units). FINANCIAL I III PACT There is no new direct cost associated with finalizing the transfer of the two Roseville generating units to the City of Roseville. Honorable Mayor and September 7, 2010 Members of the city council Page 3 of 3 RECOMMENDATION 1. Ratify the Public Utility Board's approval of the First Amendment for Construction, Operation and Financing of combustion Turbine Project Number One; 2. Ratify the Public Utility Board's approval of the Quitclaim Deed Form for the Roseville Combustion Turbine Units; 3. Authorize the General Manager of Alameda Municipal Power to execute the First Amendment for construction, Operation and Financing of combustion Turbine Project Number One; and 4. Authorize the Mayor to execute the Quitclaim Deed Form. Respectfully submitted, Z5 55 Girish Balachandran General Manager Exhibits 1 First Amendment to Agreement for construction, Operation and Financing of Combustion Turbine Project Number one 2. Quitclaim Deed Form to be approved and signed by Alameda cc: Public Utilities Board MRST AMEN--.f)iM.'F-,,NT TO AGREEMENT FOR CONSTRUCTION� OPERXHON ANtD F1NikNC1N;,G OF COMBUSTION TURBINF,'PROJEWT NWIL11BER ONE I 'b and amon N,0WFf1L?"RN CALWORNIA POWE-`R AGF-',NCY and CITY OF AL-/AiMEDA CITY OF BIGGS CITY 0144 GR-TDLEY CITY OF HEALDSBURG CrfY OF LDDI CITY OF LOMPOC CITY OF ROSr-WIT-11 CFrY OF SANTA CLARA CrfY OFUKJAH PLUMAS-SMiRRA RUR-AL,,E1,,fi,,CTR1C COOPFRATIV-Ci, Cit Council Exhibit 1 to Report Re: A Item #4-J 09-07-10 FIRST AMENDMENT TO AGREEMENT F C ONSTRUC 11 O-N, OPERATION ri, moncr NUAIBER ONE AND YINANCING OF COMRUSTION TURBEN This First tAjuendm, e to A "First Acne ndrnent") is niado b and between ffic Nbrth= CaEfornia Power A a joint powers a of the State of M 7NM ridle Healdsbur Lodi, Caorrua ('PA'") and the Cities of Alame da, Bi G I Lompoc, Rose.--1,,-vi11c, Santa Glees, anal Ukiah, �md Plinnas-Sierra Rural.Electnic Cooperative, crmd WrFNESSETH: WHEREAS, each of the parties to this First Amendment, other than 'the City of W Bi ("'Biggs") and t- e. Cit of 0idle ("Gn'die is a part to that certain "A for C onstniction., Operation, and Financin of Combustion Tii:rbM'c Pr Nwnber 0110 dated as o f July 1, 1984 ("the A and therefore constitutes a "Project Partic' IP ant," within thVe, meanirl of section 1 (g) of the A and WHE REA S, in addition to the Pr 0J 'ectParucy'pants the A ent fiidicates that '-Furlock Irrigation District ('Turlock�') was intended to be a part to the A Turlock never exeented the A and i's not a Pro Participant, and WHER,E,AS, pursuant to the A CPA- has constructed and operated, ,md ion TLffbine Rr ect Nwn.ber O n e ("the CT I Prof cof continues to operate, Combusd oJ ho'C"It of relo cat ed near t c onsistili g of five (5) sepanate units, two (2) of wWch a- lZosewfle, Calif-ornia ("the Roseville CT Units"), two (2) of which are located in the Cit of Alameda, Califorin'a "fl i e,Al am. eda CT I. and one (1 of which. is located in thOw Cit of Lodi, California ("the; Lodi CTI Unit"); and W11EREAS, each of the pal to this First Amend other than NCPA, Bi and Gridle owns -cw nndivi'dedsears or "Project Entitlement Percenta of the capacit and of the ener produced b the CTI trot t pursuant to t e A Tien t, vvihlch Project E'ntit .em ent Percenta is specified in art appendix to the A and WI-TEREAS, the Roseville CT Urdt.s, Al.awwda CT I U, -nits, and Lodi CT Unit are owned and operated b NCPA as a sir project on behalf of -those parties. owlu-n a Pros En-t-itlement Pereent.a and the P-roject Entitlement Percenta are riot stated wA reference to an parfic* ular I 11nit and WHERE S, t ject Entitlement A -lie Cit of Lodi ("Lodi") presentl oNNrns a Pro Percenta of 34.780% and the Cit of Roseville ("Roseville"') presentl owns a Project Entitlement Percentage of 1, 3, 5 84% and WH1`�.'R1i,'AS, P"Oseville currentl la off 0.118% of t1rle Pro ect E-i,�ftiltl ern ent Percenta to Bi and 0.210% of the Pr 0 "ectEiit.'Itici-nentPereentaaetoGn'dley, J 9913135-3 HETRRAS, the parties have entered into a "Agreement for Layoff and Sale of Proiect Entitlement Percentage Re ling to Combustion Turbine r0Ject Number One dated as of September 2007 ("the Layoff and Sale Agreement"), which provides am oth er matter that M Phase On e of said agreement: a. Lodi will layoff 26.41 of th Project En Percentage o Roseville; Roseville will assign its layoff`s to Biggs End Gridley to Lodi., and Lodi will ayoff those arnounts to t hose cities, c. RmovilleW11.1 make cortain pa to Lodi. and d; TNCPA and the Project Participants will treat .R su e's Proje E:n dement :percentage, r. u�.fi the a� ft rn Lod' d'ng solely at the two Rosev e CTS. Urats, and Roseville will relinquish any claim to capacity, e nergy or o ther rights to the Alameda CTI Units and the Udi d CrI Unit and W AREAS, the 1,ayoff and Sale Agreement pr vides t ra Phase I'wo of said a greement will not commcnee t mfil bonds previously sold for the construction and financIng of the CTS. Project have bcen retired,-. and 'WHE S� the Layoff and Sale Agr mcnt provides ea a m on, g other tte °s, that in Pha 'Fwo of said gree ent: NCPA will transfer fee ownership of the Roseville T Units t Roseville; arid. b, That the A.greement will be amonded to provide that: u Units .t� The CTI Pr J ect no lo fficl ides the Roseville CT 'i Biggs w.id Gridley shallbecome signat to the Agreement, a nd Project Participants in the CTI Pro based gpon the Project Entitlement Percentages previously subject to la o ff to eni: Ili. Roseville shall cease t6 be asignatory to the Agreement, and shall no longer be deemed a Prof (l i ant; n 0 iv. f Percentage f� all Project Part Cipa is (i ncluding Biggs wid Gridley and excluding Roseville) a b adj m...p op ort E� t iont Percent tang into accoimtffie addition of Big g's and Gridley P roject rt pa s, the exclusion of Roseville as Proj Participant, the sale of the Roseville T Units to Rosevitle. 903135.3 IIJOW; THEREFORE, the ParUes hereto a as BoIlows: IN I, This First Ame shall be offeotive concurrentl upon the commencement of Phase Two of the La and S e A It shall be. of no force or effect prior to that time. 2 Section I e of the A is amended to read: "Pro means a pr cansis tin g of fluce (3 24­ma combustion tarbine g eneratin g 1HU'ts, located two (2.) nr is in the Cit of Alanieda, Califonlia. ("the Alanied-a CT I I JnIts"") and one. (1) unit in the Cit of Lodi, California (�'the Lodi CTI UDit"" I Appendix "A" of the A 'i's amended to Include the follow Ei Proi ect Entitlemont Percenta ,PIt0JE PA. R"_CICIP.-kNNI" PWIA T ENTITI-EMENT PEM CENT AGE. 21,820 Cit of Alanieda I Lit f Bi� 0.197 Cit of Gridle 0.350 100%, TOTAL 4. Bi and Gfidle are Project Partici pant s­-,'ind are added as parties to the A Roseville ls.,no lon a Project Pafticipant and is deleted as a parL -to the A f -Furlock, b reason of 'not havin ext".Guted the A is not a g ail y to the A and is not a Project Participant., 5- Exoept as othenvise P rovided In this 17irst Amendmcn the A shall remain in ffill force and effect, 6. Each si tO this .diet Amendment represents and warrmits that he or she has been dut authorized to enter into it b the g ovemin g board of the part oil whose behalf he orho has executed it. 993135-3 7. This First Amcndri'-mritma be executed in several cou-,rft all oi- an of w1iich sal be re for all purposes as one ori and shall con.stitute and be but ono mid the same instrummt. INWUNESS WHERJ_ '.O.F. each part has executed tbis First Amendinent with ffie approval of its g overnin g bod and has caused its official seal to be affixed, and NCPA has executed this First _Amend� ent with the anthorization of its Commission, NORTH FIZNL CALIFMMA POWER AGFNCY Approved as to form.- Its. Attest& CrFY OF AL. MEDA B Its: CITY OF BIGGS 'B y Its: CITY OF GRIDLEY B :Ifs CITY OF HEALDSB'URG B Its: ApproVed as to onn-, By:­_­_­­­11'1__'­­ Attest: ,tkpproved as to form.* .B Attest:r Approved as to fonn:, B Attest: 9931 ­3 CITY OF L ODI B y: -.w Its: CITY OF LOMPOC t; CFFY OF OS LLE,' BY: Its: CITY OF S_.lVNTA CLARA B r ,H...- It a. CITY OF Ti.: .H By: v.•, ....n.i......- r. -r.... ..........i....» i .tA-,.pprovcd as to fonm B: Att est: jkpPr ve as to form At tes t: Approved as -to -fonu$- R ww.........................W... r Attest Approved as'to b' By: .............e.....�.M.k Attest Approved a 'to form.- Attest 09313 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO NAME City Clerk MAILING City of Roseville ADDRESS 311 Vernon Street CITY, STATE Roseville, CA 95678 ZIP CODE Exempt from recording fees pursuant to Govt. Code 27383 (SPACE ABOVE THIS LINE RESERVED FOR RECORDER'S USE) QUITCLAIM DEED WHEREAS, on September 1, 2007, Northern California Power Agency, a joint powers agency of the State of California "NCPA the Cities of Alameda, Healdsburg, Lodi, Lompoc, Roseville, Santa Clara, Biggs, Gridley and Ukiah, and the Plumas- Sierra Rural Electric Cooperative entered into the Agreement for I_,ayoff and Sale of Proj ect Entitlement Percentage Relating to Combustion Turbine Project Number One (the "Agreement WHEREAS, under the Agreement, the parties agreed to transfer ownership of the two Roseville CT Units to the City of Roseville upon the commencement of Phase Two; WHEREAS, Phase Two has commenced and its interest in the Roseville CT Units to the City of Roseville. now wishes to quitclaim. Now, THEREFORE, FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the does hereby remise, release, and forever quitclaim to the City of Roseville, a municipal corporation, all right, title, and interest has or may have in the real property located in the City of Roseville, County of Placer, State of California, described in Exhibit "A" and depicted in Exhibit "B" attached hereto and made a part hereof. 1341963.2 City council Exhibit 2 to Report Re: Agenda Item #4 -J v9 -v7 -1v IN WITNESS WHEREOF, of 1 2010. By: Mayor Attest. By: City Clerk Approved as to Form: By: City Attorney has executed this Quitclaim Deed as of the SIGNA TURES MUST BE NOTARIZED 13 4 963.2 STATE OF CALIFORNIA ss COUNTY OF On before me, a personally appeared ,who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is /are subscribed to the within instrument and acknowledged to me that he /she /they executed the same in his /her /their authorized capacity(ies), and that by his /her /their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY of PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS any hand and official seal. Signature (Seal) 134 19 63. 2 THE LAND DESCRIBED HEREIN IS SITUATED IN THE STATE OF CALIFORNIA., COUNTY OF PLACER, UNINCORPORATED AREA, AND IS DESCRIBED AS FOLLOWS: PARCEL [ENE: ALL THAT PORTION OF THE SOUTHEAST ONE QUARTER OF SECTION S, TOWNSHIP 1 I NORTH, RANGE 6 EAST, M.D. B &M., DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE NORTHEASTERLY RIGHT -OF -WAY LINE OF THAT CERTAIN 75 FOOT- WIDE EASEMENT GRANTED TO PACIFIC GAS AND ELECTRIC COMPANY, RECORDED IN BOOK 738, AT PAGE 426, OFFICIAL RECORDS OF PLACER COUNTY, AND THE SOUTHERLY LIME OF THE SOUTHEAST ONE- QUARTER OF SAID SECTION 8, AS SAID SECTION LINE IS SHOWN ON THAT CERTAIN PARCEL MAP FILED IN BOOK 20 OF PARCEL MAP, AT PAGE 126, PLACER COUNTY RECORDS, SAID INTERSECTION BEARS SOUTH 89 DEGREES 28 MINUTES 12 SECONDS 'BEST 758.88 FEET FROM THE SOUTHEASTERLY CORNER OF SAID SECTION 8; THENCE, FROM SAID POINT OF BEGINNING, ALONG THE NORTHEASTERLY RIGHT -OF -WAY LINE OF SAID PACIFIC GAS AND ELECTRIC COMPANY EASEMENT, NORTH 48 DEGREES 04 MINUTES 37 SECONDS WEST 180.00 FEET; THENCE, NORTH 33 DEGREES 40 MINUTES 43 SECONDS EAST 373.56 FEET; THENCE, SOUTH 48 DEGREES 04 MINUTES 37 SECONDS EAST 233.61 FEET; THENCE, SOUTH 41 DEGREES 55 MINUTES 23 SECONDS NEST 370.00 FEET TO THE POINT OF BEGINNING. EXCEPTING THEREFROM ALL OIL, GAS, MINERALS, HYDROCARBONS AND KINDRED SUBSTANCES LYING BELOW A DEprl I OF 500 FEET, AS CONVEYED TO NATIONAL RESOURCES EQUITIES CORPORATION BY DEED RECORDED NOVEMBER. 10, 1969, IN BOOK 1269 [OFFICIAL RECORDS, AT PAGE 62, PLACER COUNTY RECORDS. APN: 017- 061 -037 PARCEL TWO: AN EASEMENT FOR INGRESS, EGRESS AND PUBLIC UTILITIES, OVER., UNDER AND ACROSS A STRIP OF LAND THE UNIFORM WIDTH OF THIRTY (30.00) FEET, SITUATE IN SECTION 8 AND SECTION 9, TOWNSHIP I 1 NORTH, RANGE 6 EAST, M.D.B.&M., THE CENTERLINE OF WHICH IS DESCRIBED AS FOLLOWS BEGINNING AT THE INTERSECTION OF THE CENTERLINE OF SUNSET BOULEVARD, A PUBLIC STREET, WITH THE WESTERLY BOUNDARY OF SUNSET BUSINESS PARK UNIT NO. 1 AS SHOWN ON THE OFFICIAL MAP THEREOF, FILED IN BOOK 9 OF PARCEL. MAPS, PAGE 25, PLACER COUNTY RECORDS, SAID 1341963.2 INTERSECTION BEARS NORTH 81 DEGREES 16 MINUTES 59 SECONDS WEST 55.73 FEET FROM THE INTERSECTION OF THE CENTERLINES OF DULUTH AVENUE AND SAID SUNSET BOULEVARD; THENCE, FROM SAID POINT OF BEGINNING AND ALONG THE WESTERLY EXTENSION OF THE CENTERLINE OF SAID SUNSET BOULEVARD, NORTHWESTERLY ALONG THE ARC OF A CURVE TO THE RIGHT, CONCAVE NORTHEASTERLY HAVING A RADIUS OF 4000.04 FEET AND BEING SUBTENDED BY A CHORD BEARING NORTH 74 DEGREES 40 MINUTES 41 SECONDS WEST 1417.48 FEET; THENCE, SOUTH 33 DEGREES 23 MINUTES 12 SECONDS WEST 444.92 FEET TO A POINT ON THE NORTHEASTERLY LINE OF THE PARCEL OF LAND DESCRIBED HEREIN AND THE POINT OF TERMINATION OF THE EASEMENT DESCRIBED HEREIN, SAID POINT BEARS SOUTH 48 DEGREES 04 MINUTES 37 SECONDS EAST 15.17 FEET FROM THE MOST NORTHERLY CORNER OF SAID PARCEL OF LAND. THE SIDELINES OF SAID STRIP OF LAND TO BE LENGTHENED OR SHORTENED TO TERMINATE IN THE NORTHEASTERLY LINE OF THE PARCEL OF LAND DESCRIBED HEREIN AND IN THE WESTERLY BOUNDARY OF SAID SUNSET BUSINESS PARIS. UNIT NO. 1. 1341963.2 r r. Schedule 34b 2 w u) vxn C C C C.0 b CC CD M CD M ADC oo oo ��r'�rV N►V s f 1 WCF1 1 ..a CD 0 ��a Q 0 •4 m Y .;i, 0 F• L S3T n .j W Q as I ct E -s� F Ln LM F Iry cr. CD 1 Vti 3 F C r 7 y c) EXECUTION COPY FF 0 n �v Q m w {.Q Ui I ...s r m 1341963.2 CITY OF ALAMEDA RESOLUTION NO. RATIFYING THE PUBLIC UTILITIES BOARD'S APPROVAL OF THE 0 U. FIRST AMENDMENT TO AGREEMENT FOR CONSTRUCTION, 0 C11) OPERATION AND FINANCING OF CUMBUSTION TURBINE PROJECT NUMBER ONE AND THE QUITCLAIM DEED FORM FOR THE M ROSEVILLE COMBUSTION TURBINE UNITS, AND AUTHORIZING THE GENERAL MANAGER OF ALAMEDA MUNICIPAL POWER TO EXECUTE THE FIRST AMENDMENT AND AUTHORIZING THE k N��, I MAYOR TO EXECUTE THE QUITCLAIM DEED FORM WHEREAS, the Cit of Alameda is a participant in the Northern California Power A (NCPA) Combustion Turbine Project Number One (CT1), which consists of five separate g eneratin g units each rated at approximatel 24.5 me located in Roseville (two units), Alameda (two units) and Lodi (one unit) and WHERES, Alameda's pro entitlement percenta as specified in the A for Construction, Operation and Financin of Combustion Turbine Project Number One (CT1 Third Phase A dated as of Jul 1, 1984, is 13.092%, which amounts to 16.05 me and WHEREAS, at its September 17, 2007, public meetin the .Alameda Public Utilities Board the Board approved the A for La and Sale of Project Entitlement Percenta Relatin to Combustion Turbine Project Number One (La and Sale A between NCPA and each of the pro participants and recommended Cit Council ratification; and WHEREAS, the La and Sale A provides for thetransfer of full ownership of the two Roseville CT1 units, alon with associated propert and e to the Cit of Roseville upon the retirement of the bonds for the project and further provides that the CT1 Third Phase Agreement shall be amended to.- (i) remove Roseville as a project participant and (ii) remove the two Roseville CT units from the project description and WHEREAS, at its September 18, 2007, public meetin the Alameda Cit Council approved the La and Sale A between NCPA and each of the project participants and WHEREAS the, NCPA participants in the CT1 pro includin Alameda deem the transfer of ownership to be mutuall beneficial g iven that Roseville's electric load and the two Roseville CTs are located the SMUD/Western electric control area, whereas the two Alameda CTs, the Lodi C and each of the other Resolution #4-J CC OM M� 9-7-10 cT1 project participants are located in the control area administered by the California Independent system operator; and WHEREAS, the bonds for the cT1 project were retired on August 10, 2010, which triggers the need to amend the CT1 Third Phase Agreement as part of the transfer of ownership process; and WHEREAS, in order to complete the transfer, each remaining cT1 project participant will need to sign a Quitclaim Deed Form to Roseville for the two Roseville CT units; and WHEREAS, upon completion of the transfer process, Alameda's entitlement percentage will increase from 13.092% to 21.821% though the resulting megawatt entitlement remains constant at 10.05 MW. NOV\/, THEREFORE, BE IT RESOLVED by the council of the city of Alameda that: 1. The council ratifies the Public Utilities Board's approval of the First Amendment to Agreement for construction, operation and Financing of combustion Turbine Project Number one and the Quitclaim Deed Form for the Roseville combustion Turbine Units. Z. The General Manager of Alameda Municipal Power is authorized to execute the First Amendment without material change. 3. The Mayor is authorized to execute the Quitclaim Deed Fora. 1, the undersigned, hereby certify that the foregoing Resolution was duly and regularly adopted and passed by the Council of the City of Alameda in a regular meeting assembled on the 7th day of September, 2010, by the following vote to wit: AYES NOES: ABSENT: ABSTENTIONS: IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the seal of said City this 8th day of September, 2010. Lara Weisiger, City Clerk City of Alameda CITY OF ALAMEDA Memorandum To: Honorable Mayor and Members of the City Council From: Ann Marie Gallant Interim city Manager Date: September 7, 2010 Re: Adopt a Resolution Appointing Mayor Johnson as the city's Delegate for Voting Purposes at the League of California cities Annual Business Meeting BACKGROUND The League of California cities Annual Business Meeting will be held on Friday, September 17, during the Annual conference. At the Annual Business Meeting, designated voting delegates will be asked to consider six resolutions introduced by the deadline of Friday, July 16. DISCUSSION On June 15, the city council designated Councilmernber Tarn as the city's voting delegate at the League conference, and Vice Mayor deHaan as the alternate. Although neither Councilmernber Tarn nor Vice Mayor del -iaan is able to attend the conference, Mayor Johnson will be attending and can serve as the city's voting delegate at the Annual Business fleeting. FINANCIAL IMPACT There is no financial impact from adoption of the resolution. RECOMMENDATION Adopt a resolution appointing Mayor Johnson as the city's delegate for voting purposes at the League of California cities Annual Business Meeting. Respectfully submitted, Lisa Goldman Deputy city manager City Council Report Re Agenda item #4-K CITY OF ALAMEDA RESOLUTION NO. i' A l APPOINTING MAYOR JOHNSON AS THE CITY'S DELEGATE FOR VOTING PURPOSES AT THE LEAGUE OF CALIFORNIA CITIES ANNUAL BUSINESS MEETING WHEREAS, on September 17, the League of California Cities will hold its Annual Business Meeting in San Diego, California, at the conclusion of the Annual Conference; and WHEREAS, on June 15, the City Council appointed Councilmember Tam as the City's toting delegate for the Annual Business Meeting and Vice Mayor deHaan as the alternate; and WHEREAS, neither Councilmember Tam nor Vice Mayor deHaan is able to attend the League conference; and WHEREAS, Mayor Johnson will be attending the conference. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Alameda appoints Mayor Johnson as the City's delegate for voting purposes at the League of California Cities Annual Business fleeting. I, the undersigned, hereby certify that the foregoing Resolution was duly and regularly adopted and passed by the Council of the City of Alameda in a regular meeting assembled on the 7th day of September, 2010, by the following vote to wit: AYES NOES: ABSENT: ABSTENTIONS: IN WITNESS, WHEREOF, I have hereunto set nay hand and affixed the seal of said City this 8th day of September, 2010. Lara Weisiger, City Clerk City of Alameda Resolution #4 -K CC 9-7-10 CITY O A D A. Memorandum To: Honorable Mayor and Members of the City Council From: Ann Marie Gallant Interim City Manager Date: September 7, 2010 Re: Adopt a Resolution Stating the City's Positions on the League of California Cities Annual Business Meeting Resolutions BACKGROUND The League of California Cities Annual Business fleeting will be held on Friday, September 17, during the Annual Conference. At the Annual Business Meeting, designated voting delegates will be asked to consider six resolutions (Exhibit 1) introduced by the deadline of Friday, July 16. DISCUSSION The six resolutions have been referred to various League policy committees, which will meet at the Annual Conference and take action on the resolutions under their purview. Since there is no opportunity for the City Council to review the resolutions after the policy committees meet and before the Annual Business Meeting, the City Council is being asked to take positions on the resolutions in advance of the policy committees' work. Resolution 1: The first resolution, which has been referred to the Administrative Services Committee, stems from the work of the League's Bylaws Review Committee, which met four times in early 2010 to review policies related to the nomination and election of League Board members and officers. The Bylaws Review Committee developed amendments to the League's bylaws that would encourage all segments of League membership to pursue leadership within the League to advance the goal that the League Board of Directors reflects the diverse ethnic and social. fabric of California. The amendments also clarify the League Board's nomination procedures and expand Board membership by four positions; and provide guidance to avoid conflicts of interest for Board and policy committee members with the expectation that decisions should be in the best overall interests of cities statewide. Recommendation: Staff recommends a yes vote on this resolution. Resolution 2: The second resolution, which has been referred to the Community Services Committee, encourages cities to adopt preventative measures to fight obesity City Council Report Rev Agenda Item ##4-L ®9 -07 -1 Honorable Mayor and September 7, 2010 Members of the City council Page 2 of 5 as set forth by First Lady Michelle obarna's Let's Move! campaign. The Let's Move! campaign has an ambitious national goal of solving the challenge of childhood obesity within a generation so that children born today will reach adulthood at a healthy weight. The campaign is combating the epidermic of childhood obesity through .a. comprehensive approach that involves providing schools, families and communities with .simple tools to help children be more active, eat better, and get healthy. The League resolution encourages cities to sign up as Let's Move! cities through the Department of Health and Human Services, and it encourages cities to help parents make healthy family choices; create healthy schools; provide access to healthy and affordable foods, and promote physical activity. Recommendation: Staff recommends a yes vote on this resolution. Resolution 3: The third resolution has been referred to the Environmental Quality Committee, the Housing, Community and Economic Development Committee, the Revenue and Taxation committee, and the Transportation, Communication and Public Works Committee. It was sponsored by the League's Desert /Mountain Division. The Desert /Mountain Division introduced the resolution after the League's Board of Directors deferred taking action at its April meeting on recommended revisions to the League's current positions on AB 32 and SB 375. AB 32 is California's 20.05 landmark act addressing climate change. The League Board took no position on AB 32 when it was enacted. It subsequently adopted policy that states, "the League. recognizes the need for immediate actions to mitigate the sources of greenhouse gas ern.issions," and it adopted principles urging cities to take local actions to address climate change. (An initiative to suspend AB 32 until California's unemployment reaches 5.5% for four consecutive quarters is on the November statewide ballot as Proposition 23.) SB 375 is the 2008 bill that: (1) requires metropolitan planning organizations. to .include sustainable communities strategies in their regional transportation plans forthe purpose of reducing greenhouse gas emissions, (2) aligns planning for transportation and housing, and (3) creates specified incentives for the implementation of the strategies. The League Board supported SB 375. The changes to the League's positions on AB 32 and SB 375 had been recommended by a special League Task Force after study of the issue by multiple League policy committees. The changes recommended that the League request specific actions by Gov. Arnold Schwarzenegger and the California Air Resources Board (ARB) to delay certain AB 32 deadlines and to suspend or delay the implementation of SB 375 until state funding is provided for the implementation of its mandates. The Board of Directors voted to defer action on the Task Force's recommendations and directed League staff to continue monitoring the actions of ARB that affect city governments and the economy in general. In deferring action on the recommendations, the Board determined that it was imperative that the League as an organization focus its efforts solely on its statewide ballot initiative, Proposition 22. Honorable Mayor and September 7, 2010 Members of the City Council Page 3 of 5 Recommendation: Given the City's commitment to environmental sustainability and smart growth, staff recommends that the City oppose this resolution. Resolution 4: Resolution 4, which has been referred to the Housing, Community and Economic Development Committee and the Revenue and Taxation Committee, was sponsored by Councilmernber Richard Alarcon from the City of Los Angeles and City Treasurer Karen Avilla from the City of Carson. In Larch, the City of Los Angeles adopted a Responsible Banking Initiative that requires financial institutions with which the City contracts to provide an annual "report card" detailing investment and lending activity within Los Angeles. The purpose of the report card is to determine which institutions the City does business with are in turn reinvesting in the City, by extending credit to residents and businesses, and. investing capital in communities and development projects. The report card will allow policy makers to reward institutions with above average rates of impact in the City,. while decreasing business with those institutions that do not recycle dollars back into. the local economy. The "reward" comes in the form of adding extra points to these institutions' applications during the City's RFP process for financial service providers. The resolution before the League encourages cities to require transparent, responsible banking from financial institutions receiving city funds. The resolution also asks that the League. of California Cities serve as a clearinghouse of information on the responsible banking initiatives adopted by municipalities across the country in order to help California cities interested in taking steps to increase transparent, responsible banking in their own communities. Recommendation: staff recommends a yes vote on this resolution, which provides positive incentives for financial institutions seeking to do business with municipalities. Resolution 5: Resolution 5, which has been referred to the Revenue and Taxation Committee, was. sponsored by the City of Santa Clarita in Southern California. According to the resolution, unfunded mandates imposed upon local governments, including cities, counties and special districts, by the state of California place a tremendous financial burden upon local governments. In addition, some. of the mandates placed upon local governments are the result of actions by Boards and Commissions not directly accountable to the electorate. The resolution therefore proposes that. The League of California Cities work with its member cities and other local government partners to identify solutions in which local governments must increase fees or taxes to meet state mandated requirements; and The League of California Cities petition the Governor of the State of California and Legislature of the State of California to suspend or eliminate certain state mandates until improvement of the national and California economy results in substantially Honorable Mayor and Members of the city council September 7, 2010 Page 4 of 5 lower statewide unemployment and fiscal solvency of the state of California and local governments; and The League of California cities work with Members of congress and the government of the United States to suspend or eliminate certain federal mandates, passed along to the states for implementation, until the improvement of the national economy results in substantially lower national unemployment and fiscal solvency of the United States, the State of California and local governments; and The League of California cities support legislation to suspend, eliminate, or otherwise modify the negative impacts of state mandates on local agencies, particularly in which a new local tax or fee or tax or fee increase is necessary to implement the mandate." The city of Alameda's adopted legislative program Includes the following General Principle: The city of Alameda opposes any legislation or regulations that preempt local authority, negatively affect the city's budget, or impose unfunded mandates on the city. The city supports the use of incentives to encourage local government action, rather than the imposition of mandates. While the first and last bullet points above reflect the city's position on unfunded mandates, the second and third bullet points are vague. More specificity is needed as to which mandates should be suspended or eliminated. As written, the resolution does not provide enough guidance to League staff and Board members who may be lobbying the Governor, state Legislature, or Members of congress. Moreover, some mandates have improved the health and safety of residents and have had a positive impact on the environment. Recommendation: staff recommends the city support the resolution only if it is modified to eliminate the second and third bullet points. Resolution 6: Resolution 0, which was sponsored by the city of Elk Grove, has been referred to the Transportation, Community and Public Works committee. The resolution asks that the League of California cities encourage cities to promote safe driving across California and the education of the general public about the dangers of texting while driving. In 2008, the Governor signed into law a measure, SB 28, which prohibits any person from driving a motor vehicle while using an electronic wireless communications device to write, send, or read a text -based communication. SB 28 complements an existing law that Governor Schwarzenegger signed in 2000 requiring motorists to use hands -free devices while talking on a mobile phone when driving a motor vehicle. Recommendation: Staff recommends a yes vote on this resolution, which is intended to promote the safety of drivers as well as pedestrians and cyclists. Honorable Ma and Members of the Cit Council FINANCIAL IMPACT There is no financial impact from adoption of the resolution. RECOMMENDATION September 7, 2010 Pa 5 of 5 Adopt a resolution statin the cit positions on the Lea of California Cities Annual Business Meetin resolutions. Respectfull submitted, Lisa Goldman Deput Cit Mana Exhibit: 1. Annual Conference Resolutions Packet on file in the Cit Clerk's Office CITY OFALAMEDA RESOLUTION NO. STATING THE CITY'S POSITIONS ON THE LEAGUE OF CALIFORNIA CITIES ANNUAL BUSINESS MEETING RESOLUTIONS 0 WHEREAS, on September 17, 2010, the League of California cities will p hold its Annual Business Meeting in San Diego, California, at the conclusion of Conference and 2 the Annual Co WHEREAS, six resolutions have been introduced for consideration by the League's membership and referred to the appropriate League policy committees; and WHEREAS, each city's voting delegate will be asked to cast a vote for or against the various resolutions; and WHEREAS, staff recommends that the city support the following resolutions: 1) a resolution relating to amending the League. Bylaws; 2} a resolution relating to the National Let's Move campaign; 3) a resolution relating to responsible banking; 4) a resolution relating to enhancing public safety while driving a motor vehicle; and WHEREAS, staff recommends the city support the resolution related to unfunded mandates only if it is modified to remove the vague language; and WHEREAS, staff recommends the city oppose the resolution relating to the League Board of Director's decision to defer action on AB 32 and SB 375. Novo, THEREFORE, BE IT RESOLVED, that the city council of the city of Alameda adopts the positions stated above on the League of California cities Annual Business meeting resolutions. Resolution #4 -L CC 9-7-10 1, the undersigned, hereby certify that the foregoing Resolution was duly and regularly adopted and passed by the council of the city of Alameda in a regular meeting assembled on the 7th day of September, 2010 by the following vote to wit: AYES NOES: ABSENT: ABSTENTIONS: IN WITNESS, WHEREOF, I have hereunto set nay hand and affixed the seal of said city this 8th day of September, 2010. Lara Weisiger, City Clerk City of Alameda 2 CITY OF ALAMEDA RESOLUTION NO. APPOINTING MADELINE DEATON AS A MEMBER OF TIME PUBLIC UTILITIES BOARD BE IT RESOLVED b the Council of the City of Alameda that y y pursuant to p the provisions of Article x of the charter of the City of Alameda, and upon tt_ F 1� nomination of the Mayor, MADELINE DEATON is hereby appointed to the office of r member of the Public utilities Board of the city of Alameda for the term commencing September 7, 2010, and expiring on June 30, 2014, and to serve until her successor is appointed and is qualified. I, the undersigned hereby certify that the foregoing Resolution was duly and regularly adopted and passed b the council of the City of Alameda in regular meeting assembled on the 7 day of September, 2010, by the following vote to wit AYES: NOES: ABSENT: ABSTENTIONS: IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the official sea[ of said city this 8th day of September, 20 10. Lara Weisiger, city clerk City of Alameda Resol ution #6-A CC 9 -7 -10 CITY of ALAM EDA Memorandum To: Honorable Mayor and Members of the City council From: Ann Marie Gallant Interim city Manager Date: September 7, 2010 Re: Pursue Activation of the city of Alameda's Participation in the city of Oakland's Foreign Trade Zone #56 in Response to Appropriate Business Opportunities BACKGROUND The United States Department of Commerce (DOC) designates Foreign Trade Zones (FTZs) at sites in or near a U.S. Customs port of entry. Goods can be brought into an FTZ without formal customs entry or without incurring customs duties or excise taxes as long as the goods are not subsequently imported into the United States. FTZs are intended to promote U.S. participation in trade and commerce by eliminating or reducing the unintended costs or obstacles associated with U.S. trade laws, and encourages jobs that might normally be shifted to a foreign country, to remain in the U.S. Activation and operation of an FTZ is under the legal authority of the DOC's FTZ Board and the U.S. Customs Service. Given the recent expansion of the North American Free Trade Agreement (NAFTA), FTZs only apply to non -NAFTA nations. As a non -NAFTA country, businesses from China pose a particularly competitive opportunity for FTZs. An FTZ can be designated at one or multiple sites, a single building, all or a portion of an industrial park, at a deepwater port, or within an international airport. General purpose FTZs are commonly created and managed by one entity and shared by several different companies. These are usually FTZs focused on distribution and repackaging activities, not manufacturing. When a firm intends to utilize its own plant or cannot be accommodated within an existing Zone, It subzone" status may be granted to the site. As of January 1999 there were 234 FTZs in the U.S. FTZs involve three parties: a grantee, operator and user. The grantee, often a public, quasi public, or nonprofit entity, holds a grant from the FTZ Board of the DOC authorizing the activation of the FTZ. The operator of an FTZ operates the FTZ on a day today basis and is responsible for record keeping and managing the customs process. The user is the company or companies that use the FTZ. City Council Agenda Item ##6m13 09 -07,10 Honorable Mayor and Members of the city council DISCUSSION September 7, 2010 Page 2of2 The city of Oakland is a grantee of a general purpose FTZ #56. It also has two related subzones, each consisting of a single industrial company acting as its own operator and user. The general- purpose FTZ #56 in Oakland has authority for 500,000 square feet, of which only 100,000 square feet is currently being used. The general purpose FTZ is operated by Matson Global Distribution services. The city of Alameda is already considered part of the city of Oakland's FTZ #56 because it is part of the Oakland Port of Entry. The city's participation in FTZ #56 could be activated through completion of a relatively simple application to the Doc in cooperation with the City of Oakland. An application for activation of the City's participation in FTZ #56 would be site specific and not necessary until a FTZ business was identified and a specific location for a particular business within the city were selected Should the city elect to activate its participation in FTZ #56, it could represent an important tool for attracting international companies to the city, especially those from China. These business opportunities would create new jobs and spur business investment and activity in the city, potentially resulting in the long -term reuse of, and reinvestment in, existing structures at the former Naval Air station Alameda and in construction of new facilities at other locations within the city. The city has already been approached preliminarily by businesses from China interested in activating an FTZ in the city. FINANCIAL IMPACT There is no financial impact related to this action. RECOMMENDATION Pursue activation of the city of Alameda's participation in the city of Oakland's FTZ #56 in response to appropriate business opportunities. LAL:dc UNAPPROVED MINUTES OF THE REGULAR ALAMEDA PUBLIC FINANCING AUTHORITY (APFA) TUESDAY- -JULY 20 2010- -7:01 P.M. Chair Johnson convened the meeting at 2:12 a.m. Roil Cali Present: Authority Members deHaan, Gilmore, Matarrese, Tara and chair Johnson 5. Absent: None. KAIN I ITF.q 10- Minutes of the Special Joint city Council, Alameda Public Financing Authority, Alameda Reuse and Redevelopment Authority, and community Improvement Commission Meeting Held on June 24, 2010; and the Regular Alameda Public Financing Authority Meetings Held on July 6, 2010 and July 7, 2010. Approved. Board Member Matarrese moved approval of the minutes. Board Member deHaan seconded the motion, which carried by unanimous voice vote 5. Agenda Item Resolution No. 10 -22, "Authorizing the Issuance and Sale of Revenue Bonds to Refinance Installment Payment obligations of Alameda Municipal Power and Approving Related Documents and Actions." Adopted. Board Member deHaan moved adoption of the resolution. Board Member Matarrese seconded the motion, which carried by unanimous voice vote —5. Oral Communications None. Board Communications None. Ad�ournrnent There being no further business, Chair Johnson adjourned the meeting at 2:13 a.m. Respectfully submitted, Lara Weisiger Secretary The agenda for this meeting was posted in accordance with the Brown Act. Regular Meeting Alameda Public Financing Authority July 20, 2010 UNAPPROVED MINUTES OF THE SPECIAL JOINT CITY COUNCIL ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY (ARRA) AND COMMUNITY IMPROVEMENT COMMISSION CIC MEETING TUESDAY- -JULY 20 2010- -6:59 P.M. Mayor 1 Chair Johnson convened the meeting at 7 :29 p.m. ROLL CALL Present: Councilmembers 1 Board Members Commissioners deHaan, Gilmore, Matarrese, Tara and Mayor /Chair Johnson —5. Absent: None. 10- CCIAR.RA110- CIC Minutes of the Special Joint City Council, ARRA, CIC Meeting Held on June 19, 2010; the Special Joint City Council, Alameda Public Financing Authority, ARRA, and CIC Meeting Held on June 24, 2010; and the Special Joint CIC and Housing Authority Board of Commissioners Meeting Held on July 6, 2010. Approved. Councilmembers /Board Members /Commissioners Gilmore and Tam stated that they would abstain from voting on the June 19 minutes. Councilmember /Board Member /Commissioner Tamp provided corrections to page 14 of the June 24 meeting. Vice Mayor /Board Member /Commissioner deHaan moved approval of the minutes. Councilmernber /Board Member /Commissioner Matarrese seconded the motion. On the call for the question for the June 19 meeting, the motion carried by the following voice vote: Ayes: Councilrnernbers /Board Members /Commissioners deHaan and Matarrese and Mayor /Chair Johnson 3. Abstentions: Councilmembers /Board Members /Commissioners Gilmore and Tarn 2. Can the call for the question for the June 24 and July 6 th meetings, the motion carried by unanimous voice vote 5. Special Joint Meeting Alameda City Council, Alameda Reuse and Redevelopment Authority, and Community Improvement Commission July 20, 2010 10- CCIARRAI10- CIC Resolution No. Entitlement Application (MOEA), Including Amendment, Master Plan, and Development Point LLC. (PLN 10- 0012)." Adopted. 14472 "Denying a Modified a General Plan Amendment Agreement Proposed by SCC Optional Zoning Alameda The Deputy City Manager— Development Services gave a Power Point presentation. Stan Brown, SunCal; Nick Cosla, SunCal; Jim Daisa, Kimley -Horn and Associates; gave a Power Point presentation; Phil Tagiarni and Skip Miller gave brief presentations. Mr. Brown stated page 2 of the staff report states: "Alameda did not want to. be committed beyond July 20, 2010 to development entities that prove incapable of utilizing the property SunCal has submitted a 2010 Alameda Point project and staff has deemed the submittal complete; SunCal has funded and the City has commenced the Environmental Impact Report (EIR), including retention of the EIR technical consultants; the City and SunCal have also had initial scoping meetings and completed the project description; this week, $x'20,000 has been deposited into the Escrow Account; the money covers City staff salaries, cost of the EIR, and other expenses associated with redevelopment; the application will be ready to be considered by the Planning Board and Council in the next fifteen to eighteen months; now is the time to complete.. the process; the draft resolution sets out the reasons why SunCal should be removed from the project and the application denied; clause A -4 states: "The modified oEA provides minimal certainly about how the property will ultimately be developed; many specifics about number, location, and density of residential units, amount, and type of commercial development, site design, the transportation system, and sustainabilty measures have not been provided the statement is not true; the plan is highly detailed, sophisticated plan use documents which include an exhaustive engineering analysis, transportation planning, adaptive reuse planning, commitment to the LEED neighborhood development goal, and green building standards; sustainability, design, unit layouts, and highly detailed land plans are before Council tonight; Clause A -5 states: 'There. is also substantial uncertainly regarding the relative timing of development.. of. the residential and commercial components of the project again, the statement is not true; detailed cash flogs that identify the timing of the project and project elements have been dome and shared with the City; the cash flows are part of the Disposition.and Development Agreement (DDA) and are included in the business plan; a detailed land plan clearly sets forth timing and how residential, commercial, parks, and transportation routes carne into the project; Clause A -7: states "a balance needs to be. struck between flexibility and provision of meaningful commitments to the community that he agrees the statement is correct; unfortunately, in all the weekly meetings he has attended, this is the first time he has heard that SunCal's plan is inadequate because. a balance has not been struck; an open, honest dialogue is part of the entitlement process that occurs as the project is made ready for public hearings; that is why the action is premature; Special Joint Meeting Alameda City Council, Alameda Reuse and 2 Redevelopment Authority, and Community Improvement Commission July 20, 2010 Clause C -4 indicates the economic development strategy for the development of commercial businesses within Alameda Point is a critical flaw in the Modified optional Entitlement Agreement (MOEA); SunCal agrees with the City that there is a well developed strategy for development of commercial businesses within Alameda Point; SunCal has advised staff several months ago of SunCal's retention of RCO, SunCal's child lesser company, to conduct a study and provide a Phase 1 report; however, at no time, until he read the staff report and resolution, has there been any indication that failure to include such a report would be a critical flaw in the 2010 Alameda Point project; staff found the application to be complete; Clause C addresses transportation; SunCal's transportation plan is robust; Clause D addresses the Biological opinion (B.0); over the past several years, SunCal has worked closely with staff, consultants, the Navy, and Veterans' Affair Department to review and amend the existing BO; the results of the process will determine appropriate mitigation of land uses adjacent. to the property; staff has been engaged in the process; full disclosure has been .provided with staff's concurrence; SunCal agrees that the 2010 Alameda Point project and. 2008 Master Plan are very similar in design; the 2008 Master Plan was submitted to the .Navy along with the joint project pro forma as the City's and SCC Alameda joint subrn .of 2008; the joint pro forma was submitted after exhaustive review by the City and SCC Alameda; the joint pro forma was prepared by Economic Planning Systems (EPS), the City's consultant; the City, SCC Alameda, and EPS reviewed and .discussed with the Navy the joint pro forma submitted for the first quarter of 2009, at which point.the City cut off any further contact between SCC Alameda and the Navy; in 2009, the City and EPS agreed with SunCal's plan, and a joint pro forma and plan were. submitted to the Navy; a year later, EPS and City staff claim that SunCal's assumptions are overly optimistic; in 2009, EPS and City staff agreed with SunCal's revenue assumptions. and now do not; inquired ghat has changed; stated in 2009, EPS and City staff agreed with SunCal's home construction costs and now do not; inquired what has changed; in 2009, City staff agreed with SunCal's revenue and cost escalation assumptions and now. do not; inquired ghat has changed; stated in 2009, EPS and City staff agreed. with SunCal's premium analysis and now do not; the change between the current and joint pro forma is that the sale has increased to $108,500,000 at the Navy's request; said amount is what the Navy wants and the amount that SunCal is committed to pay; that he is sure the City's consultants will point to the recession's impacts on the development industry; the recession started in early 2007 and was already a year old when the joint pro forma was prepared and submitted; the Lehman Brothers' bankruptcy occurred in September 2008, well before the joint pro forma was submitted to the Navy; the joint pro forma assumptions and 2010 Alameda Point project pro forma were reasonable and appropriate; the development will take twenty years to development; having the project pro forma reflect concerted, long -term trends is important; EPS and City staff agreed with assumptions that were appropriate and concerted in 2009; assumptions are still appropriate today; SunCal knows that serving government is a lot of work; the lave and the Exclusive Negotiating Agreement (ENA) specify a very critical Special Joint [Meeting Alameda City Council, Alameda Reuse and 8 Redevelopment Authority, and Community Improvement Commission July 20, 2010 process that has repeatedly been ignored and violated; the decision is Simple let the process continue. Mr. Miller stated that he is new [to the project]; he is a litigation lawyer; he read the ENA and he respectfully submits that terminating the ENA is premature; a vote should not take place today and would not be legally valid; the judgment is rushed; ENA's are legally enforceable in California; SunCal has spent almost four years and close to $15 million pursuant to the Agreement and relies on the Agreement; SunCal is entitled to the completion of a good faith negotiation process; the issue is about due process of law, fundamental fairness and providing an opportunity; the project is very important to the City; ultimately, Council would have the vote but the vote should not occur until the process has been completed; that he strongly believes the process has been set up; tonight's vote would not be legal or valid; that he wrote a letter last week saying that the term sheet with the Navy was frustrating because SunCal could not get cooperation from the City; City officials recognize that he is right; the milestone was prevented; the next step, after admitting that the milestone with the Navy was not met, has been to have a vote on the whole project; the E I R. and California Environmental Qualit y Act (CEQA) process is not complete; the matter has not gone through the Planning Board process; SunCal has bargained for a full, fair hearing on the development; SunCal has invested a tremendous amount of time and money; SunCal requests that the matter not be voted on today; the process should run its course; otherwise, SunCal will .be in court to enforce its rights under the Agreement seeking very substantial damages, if necessary; the choice is not his; SunCal will enforce its rights under the Agreement, if necessary; SunCal is entitled to the benefit of the deal and is not getting .any benefit by virtue of voting the project down tonight; the vote is premature; requested that .SunCal and SCC Alameda have the benefit of a full CEQA process and let everything a out; gp y the former Naval Base needs to be redeveloped; SunCal has done a lot of big land developments over the years; that he has represented SunCal for se,veral .years; he is hearing that one City official, who carne on the scene about a year ago, has voiced an opinion that having a public project, instead of a private developer, would be better; SunCal made a deal in the ENA to complete the full process, go the full gray, not to be truncated, and stopped in midstream; the decision is up to Council; Sun+Ca.l is entitled to go to the end of the road and should not be co -opted or prevented by somebody who wants to do things differently; the matter will be the subject of litigation, lawsuits, and claims if the resolution is adopted. Pro onents (In Favor of Staff Recommendation Denying MOEA Former Councilmember Barbara Thomas, Alameda; Jean Noroian, Alameda; Ashley Jones, Alameda; Robbie Delio, Alameda; Dorothy Freeman, Alameda; Bob Sikora, Alameda; Birgitt Evans, Alameda; Jean Sweeney, Alameda; Jim Sweeney, Alameda; Reyla Graber, Alameda; Eugenie Thomson, Alameda; Nancy Gordon, Alameda; Jay Ingram, Alameda; Mary Fetherolf, Alameda; Gretchen Lipow, Alameda (submitted document); Special Joint [Meeting Alameda City Council, Alameda Reuse and 4 Redevelopment Authority, and Community Improvement Commission July 20, 2010 Rosemary McNally, Alameda; Chuck Millar, Alameda; Former Councilmerrber Lil Arnerich, Alameda; Dave Needle, Alameda; Robb Ratto, Park Street Business Association; Michael Karayasales, Alameda; Karen Miller, Alameda; Karen Bey, Alameda; Janet Davis, Alameda; Gail deHaan, Alameda; Noel Folsom, Alameda; Adam Gillitt, Alameda; Alan Tubs, Alameda; Kevin Frederick, Alameda. Opponents Not In Favor of Staff Recommendation Denying MOEA Former Councilmember Tony Daysog, Alameda; Andreas Kluever, Building Trades Council; Andre Slivka, Carpenters Union Alameda County and Alameda Resident; Jon Spangler, Alameda; Richard Tren, ULl Swingrton Builders; Lois Pryor, Alameda; Irwin Huebsch, Alameda and Local 2850; Wilhelminia Slater, Alameda; Nischit Hegde, Local 2850; Auram Gurarye, Berkeley; Jeremy Madsen, Greenbelt Alliance and Alameda resident (submitted comments); Diane Lichtenstein, Alameda; Nit Rana, Alameda resident and Painters Local 3; Fernando Estrada, Laborers Union 304; Kathy Mo.ehring, Alameda; Honora Murphy, Alameda; DG Blackburn; Sally Fauilhaber, Alameda; Mike .Henneberry, Alameda and Local 5; Mark Chandler, veterans Administration and Alameda; Amy Freilich, SLL Alameda Point LLC (submitted letter); Carl Chan, Alameda; William Smith, Sierra Club and Reneged Hope; Bruce Knopf, Alameda. Neutral Irma Garcia Sinclair, Alameda. Mayor /Chair Johnson called a recess at 11:03 p.m. and reconvened the meeting at 11:32 p.m. Vice Mayor /Board Member /Commissioner deHaan stated SunCal wants to.retain only certain [historic]buildings, which is not want the Navy is recommending; removing the buildings would remove close to $2 million of lease revenue; the. Sports Complex became SunCal's centerpiece and is almost identical to the one built in 1997; the original study shows ghat type of resources would be needed; Council had the wisdom to put use of union labor in the Request for Proposal (RFP); Council is not anti union in any gay; long terra jobs should considered, not short -term jobs; traffic impact has always been a major concern; SunCal has not brought a consultant on board until five weeks ago; the community is brighter now and has made it loud and clear that it understands the process, desires, and needs; that he had been supportive of SunCal; later, he realized that he might be over his head; SunCal insulted hire by offering two tickets to the warriors playoff; staff and the community has gelled and has come a long gay. 10- CC /ARRA/ 10- CIC Councilmember /Board Member/Corn miss loner Matarrese moved approval of continuing the meeting past 12:00 midnight. Special Joint Meeting Alameda City Council, Alameda Reuse and 5 Redevelopment Authority, and Community Improvement Commission July 20, 2010 Councilmember /Board Member /Commissioner Gilmore seconded the motion, which carried by unanimous voice vote 5. Councilmember /Board Member /Commissioner Matarrese stated tonight's discussion has been good and spirited; the most important issue in the City is to maintain solvency; the next important issue is ghat to do with the future of one -third of .the island that still belongs to the Navy; that he sees the same flaws in the MOEA as..in the project Development Agreement (DA), Charter amendment, and General Plan Agreement change in Measure B; he would be willing to move forward if he thought an extension would provide some hope that issues could be resolved and there would be a downscaled project that would fit Alameda and be solvent; however, he does not see such a thing; that he does not have any faith the City will see anything carne out of the ground or jobs forthcoming within a reasonable amount of time; concurred with Vice Mayor /Board Member /Commissioner deF aan regarding the project labor agreement always being a condition of the project and always being a future condition; SunCal took three years to get on board regarding the matter; the fit is not good; that he would.like the City to go forward unencumbered; the BNA expires today because all mandatory milestone have not been met; the City has a chance to go forward and take a different direction that fits the times. Councilmember /Board Member /Commissioner Gilmore thanked everyone for the time, energy, effort, and passion regarding the issue; stated former Councilmember Arnerich stated that the decision is monumental for the City; ensuring that homework and due diligence is done is important; that she can satisfy herself as she gets ready.to take. the vote; many of the MOEA problems come down to financing; questioned when solid financial assurance would be provided and whether the assurance would be in writing; stated the City received a last, best, and final offer from SunCal last week.which she presumes has financial terms that could have some bearing on the matter; that s he has not seen the document, a staff report analyzing the document, or a staff recommendation regarding the document; financial assurances seem to have a hole on both sides. Mr. Brown responded this week, SunCal made another deposit to escrow; SunCal has never missed a payment; SunCal has spent a lot of time reviewing the DDA's terms and elements with City staff; the DDA provides a mechanism to ensure financial assurances are set forth prior to each stage of close of escrow so that the City would be assured that the money to acquire the property and develop the property would be available. to fully develop each phase of the property; said assurances are not in the last, best, final offer. The Deputy City Manager Development services stated SunCal's last, best, and final Special Joint meeting Alameda City Council, Alameda Reuse and 6 Redevelopment Authority, and Community Improvement Commission July 20, 2010 offer was delivered on July 15, 2010 after 6:00 p.m.; the offer was on file in the City Clerk's office by 3:00 p.m. the following day; the offer was reviewed over the weekend; nothing in the last, best and final offer changes staff's recommendation; inquired whether Councilmembers /Board Members /Commissioners want to focus on financial issues. Councilrnember /Board Member /Commissioner Gilmore responded in the affirmative; stated that she understands the timing but is uncomfortable with not having a chance to review the offer and ask questions; the public has not been able to review and digest the offer. The Deputy City Manager Development Services stated staff requested that the financing plan be attached to the DDA, including the pro forma; the pro forma submitted with the last, best and. final offer did not include the financing plan; the financing plan would be due before the close of Phase 1. Councilme nber /Board Member /Commissioner Gilmore inquired whether SunCal has made promises to pay without a document showing how payment would be made. The Deputy City Manager Development Services responded in the affirmative; stated the pro forma was the same as the pro forma attached to previous staff reports; Section 7.8 contains the financial assurances of the last, best, and final offer; staff wants to have financial assurances up front; SunCal has provided financial assurances that cover the period of time from the execution of the DDA up until the close of Phase 1; staff wants to ensure that SunCal has enough money to get through the project, not just the development period. Councilmember /Board Member/Commissioner Gilmore inquired how terms would be written to prevent land banking. The Deputy City Manager Development Services responded terms would be written in the DDA; stated scheduled performances would be included in addition to default provisions; fiscal neutrality would be guaranteed; SunCal would provide a guarantee from an entity that has a net worth of $100 million; the guarantee would not be for project implementation; staff wants more than guarantees for. fiscal neutrality; staff does not think the financial assurances are sufficient. Councilmember /Board Member /Commissioner Gilmore inquired who would the shortfall fall on if the project is fiscally neutral and there are no guarantees for the rest of the project. The Deputy City Manager Development Services responded the project might not be Special Joint Meeting Alameda City Council, Alameda Reuse and 7 Redevelopment Authority, and Community Improvement Commission July 20, 2010 built; stated nothing guarantees that milestones would be met; scheduled performances are not backed up with strong commitments to meet performance milestones; Footnote 4 of the scheduled performances addresses a milestone for vertical development that would apply to each water parcel in a phase and sixty months after the day the developer would transfer a lot or parcel to a vertical builder; stated there is no date for when the transfer has to occur; an initial phase could be taken down and a subsequent phase could be taken down but nothing requires SunCal to finish the first phase or to develop a commercial phase; timelines build off of phantom dates; force majeure, things beyond control, provisions are very broadly worded and allow way too much flexibility; Section 17.8.1 discusses changes in laws which could be broadly interpreted; a provision addresses actions of public agencies that regulate land use, development, or the provision of services to Alameda Point property that prevents, prohibits, or delays either the construction funding or development of the Alameda Point project under the conveyance of the property to developers; the City is a public agency that regulates land use; some of the provisions undermine the whole concept of the scheduled performance. Councilmember /Board Member /Commissioner Gilmore inquired whether SunCal would need to abide by whatever is in the last, best, and final offer if the City decides to accept said offer, to which the Deputy City Manager Development Services responded in the affirmative. Councilmember /Board Member /Commissioner Gilmore inquired whether the offer would need to be accepted or rejected, and there would be no room for negotiations. The Deputy City Manager Development Services responded DDA negotiations would continue if the MOEA is not denied and Councilmembers /Board Members /Commissioners direct staff to move forward and negotiate with SunCal, Councilmernber /Board Member /Commissioner Gilmore inquired whether the offer is a take-it-or-leave-it offer for the City. The Deputy City Manager Development Services responded not if the City Continues with SunCal; stated Section 7.6.1 2 addresses modifications to development phasing requested by the developer; the developer wants to be able to request modifications to the phasing plan; Section 7.6.1 2 further states that the DDA would continue to give SunCal broad authority to change both the phasing and the context of any particular phase in response to new information, change in market conditions, improved technologies or techniques, new funding strategies, and opportunities; "new information" is so broad; staff thinks that the City's ability to enforce certain commitments is underminded by the provisions. Special Joint Meeting Alameda City Council, Alameda Reuse and 8 Redevelopment Authority, and Community Improvement Commission July 20, 2010 The Interim City Manager /Executive Director stated there are very specific City expectations with respect to guarantees. The Deputy City Manager Development Services stated the DDA has hurdle rates whereby SunCal wants to be able to meet a 25% Internal Return Rate (IRR) and 25% profit; the CIC would not be participating in the profits until SunCal meets both the 25% I RR and 25% profit. The City Attorney /Legal Counsel stated Section 7.5.2.3.1 requires the CIC to make up the difference in the event that SunCal does not receive the 25% IRR. Mayor /Chair Johnson inquired whether the last, best, and final offer is a public document, to which the Deputy City Manager Development Services responded in the affirmative. Jim Musbach, EPS, stated five determination dates have been established; any cash flow over the 25% goes to the City; the City would get 30% of the cash flow; half would go to a reconciliation account; at the fifth reconciliation date, the City would have to remit money from the account to make SunCal whole at 25 the City would have a 15% participation subordinate to a 25% return with some upside potential to get to 30 Councilmember /Board Member /Commissioner Gilmore inquired whether the City would be corning up with new cash or cash would be coming out of the project, to which Mr. Musbach responded cash would come out of the project. Councilmember /Board Member /Commissioner Tam inquired ghat staff would like to see in the DDA. The Deputy City Manager Development Services responded staff would recommend starting to participate sooner than both of the 25% hurdle rates. Councilmember /Board Me mber /Commissioner Tam inquired whether said information has been communicated with SunCal. The Deputy City Manager— Development Services responded staff has not had detailed discussions with SunCal regarding profit participation; the pro forma attached to the DDA shows a 20% return, which would not meet the hurdle rates; provisions were incomplete in the first draft that staff received. The Public works Director stated staff expected to see the last, best and final offer sooner rather than later and expected that all concerns would be addressed; some concerns were addressed; the last, best, and final offer became more restrictive, is in Special Joint Meeting Alameda City Council, Alameda Reuse and g Redevelopment Authority, and Community Improvement Commission July 20, 2010 the best interest of SunCal, and is against what the City was negotiating for. Councillmember /Board Member /Commissioner Tangy requested clarification on SunCal's intent and interpretation. Mr. Brown stated the form is complicated and is based on a prior DDA; staff has a misunderstanding of many elements; SunCal's intent is to continue a process with the City to get to a final public hearing; the document could be modified through the process; completion bonds, subdivision bonds, cash collateral, firm financing commitments, capital stack of debt, equity, all come together to deliver financial security at the close of every escrow so that the property could be acquired and fully developed; the financing plan is contained in the document; the financial plan cannot identify the loaning bank two years in the future; the financial plan shows how much cash would be corning from equity and debt to acquire and make infrastructure improvements; SunCal has provided the best estimate at this time; figures may be different.down the road; the estimate is a good faith, solid estimate today; the scheduled performance states that the horizontal development would be completed within a specified time, that .all residential land would be transferred to builders within a specified timeframe, and that vertical builders, who would build residential and commercial buildings, would all build within five years of the time the property is acquired; all schedules build and tee. off one another in case of a delay or acceleration; SunCal cannot predict. unexpected events that would change the schedule; the penalty for not achieving the schedule would be that SunCal mould not have the right to proceed on the project; SunCal feels that providing for force majeure is fair. Councilmember /Board Member /Commissioner Tam stated it is difficult to give policy direction on the fly on a document that she has not seen based upon interpretations that seem different for each party. The Public works Director stated that infrastructure costs have not been agreed upon; the transportation plan is not detailed and is more of a transportation concept; the pro forma shows a plan based upon bus rapid transit used in Eugene, Oregon; staff has not been able to find out if the unit price for the bus rapid transit is applicable; SunCal added $a million because its engineer miscalculated the mileage; the water Emergency Transit Authority [WETA] has not agreed to a ferry terminal cost nor has agreed to relocating the ferry terminal to the seaplane lagoon; issues should have been addressed over the last three years. The Interim City Manager /Executive Director stated staff does not expect Council to be making decisions on policy without reviewing the document; tonight's focus is on the MOEA; SunCal has been with the City for three years; everyone knows what the agenda process is; submitting a comprehensive DDA at 6:00 p.m. on Thursday after the Special Joint Meeting Alameda City Council, Alameda Reuse and 10 Redevelopment Authority, and Community Improvement Commission July 20, 2010 agenda deadline and having an expectation that a staff report would be submitted in twenty -four hours is onerous. The City Attorney /Legal Counsel stated the DDA is not before the Councilmembers /Board Members /Commissioners tonight; Councilmember /Board Member /Commissioner Gilmore's questions regarding the DDA are relevant; staff does not believe that anything in the last, best, and final offer has a cure or changes staff's recommendation. Mr. Brown stated at a previous meeting, the Cou ncilmembers /Board Members /Commissioners discussed the intent to have a public hearing; the intent of the public hearing would be to discuss whether or not to continue with the. ENA, not to..deny the application; SunCal wants to work cooperatively with the City; the process needs .a partner; the partner [City] has been difficult to carne by over the last several months; SunCal wants to reestablish the relationship; that he is convinced that.the relationship can be reestablished to move forward to discuss the important project issues and to have the EIR analyze every element of the project; at the end of the. day, Councilmembers/ Board Members Commissioners may vote to deny the project; staff may generate EIR alternatives that would be studied and mould be the appropriate tune to make judgments regarding the DDA, EIR, and project itself; rushing judgment on. the application is inappropriate; SunCal would welcome dialogue with Councilmernbers /Board Members/Commissioners and staff regarding the. DDA and project itself; that he would like to engage in conversation with the Public Works .Director regarding cost estimates and where the line mould go; SunCal has a recommended bus rapid transit location in the plan which needs to be discussed; staff did not have .enough time to ask questions regarding the DDA; SunCal has achieved the goal of having the DDA meet the requirements under the ENA. The Deputy City Manager Development Services stated staff has..not changed its recommendation in response to letters provided by Skip Miller; the Councilmembers /Board Members /Commissioners and staff have been dlscussln th st potentially denying the MOEA for the last two months; May 18 June and July staff reports discuss the matter; staff does not think the EIR mould change any issues or recommendations noted tonight; findings for denial are related to the commitment to a transit oriented mixed -use development and comprehensive transportation development strategy that fully funds costs and operations, which is not something that an EIR would study. The Public works Director stated SunCal had three years to address the bus rapid. transit line; that he has tried to get SunCal to meet with WETA over the last year; he had to force SunCal to initiate dialogue with WETA; the issue is too little too late. Special Joint Meeting Alameda City Council, Alameda Reuse and Redevelopment Authority, and Community Improvement Commission July 20, 2010 Vice Mayor /Board Member /Commissioner deHaan inquired whether Mr. Brown stated that the last, best, and final offer is a complicated document that would take a long time to review, to which Mr. Brown responded in the affirmative. Vice Mayor /Board Member /Commissioner deHaan inquired why the last, best, and final offer was provided five days before the meeting, Mr. Brown responded SunCal has had weekly meetings with staff.on the entire Alameda Point project; stated numerous issues have been addressed; the DDA had to be written to meet the schedule and the schedule was achieved; two or three drafts have been shared with staff. Vice Mayor /Board Member /Commissioner deHaan inquired whether Mr. Brown has been privy to concerns. regarding the job /housing imbalance, economic development strategy, traffic, and endangered species prior to the staff report going out; stated SunCal knew ghat needed to be tackled; that he does not know whether a requested commercial study has been provided; SunCal's mode of operation has been the 11 th hour. Mr. Brown responded the traffic study has been an ongoing effort for the last four years; recently, the public has been engaged. Vice Mayor /Board Member/Commissioner deHaan inquired what is different from the traffic study developed from the Preliminary Development Concept (PDC). Mr. Brown responded that he does not know, but SunCal's Transportation Consultant would know. Vice Mayor /Board Member /Commissioner deHaan inquired when SunCal hired its Transportation Consultant. Jim Daisa, SunCal Transportation Consultant, responded he was hired approximately 9 months ago or longer. Vice Mayor /Board Member /Commissioner deHaan inquired when the traffic study was prepared. Mr. Daisa responded that he has not prepared a traffic study; however, he has developed a transportation strategy. Vice Mayor /Board Member /Commissioner deHaan inquired how the PDC traffic study d iffers. Special Joint Meeting Alameda City Council, Alameda Reuse and 12 Redevelopment Authority, and Community Improvement Commission July 20, 2010 Mr. Daisa responded the PDC study was an impact study, which is not what SunCal prepared; SunCal 's transportation strategy is consistent with, and has some level of change, from the City's 2008 transportation strategy, which has been based upon the evolution of Alameda Point over time; the City has hired other consultants; that he has worked on phase and stage implementation detail from a developer's prospective. Councilmember /Board Member /Commissioner Gilmore stated lawsuits were mentioned in last week's Alameda Journal headlines; tonight's discussions have included lawsuits potentially being an outcome of tonight's decision; three or four letters were received last week and came too late for the staff report; that she is not sure whether the letters would have been included in the staff report if the letters were received in time; requested feedback from the City Attorney on the matter. The City Attorney /Legal Counsel Inquired whether Councilmember /Board Member /Commissioner Gilmore is talking about the damages issue. Councilmember /Board Member/Commissioner Gilmore responded in the affirmative; stated that she is a little disturbed about the matter; she had the opportunity to review the City Attorney's opinion for the first time today; the opinion's existence became known to her about a week ago; that she requested a copy of the opinion from the City Attorney and was told to read the opinion in the City Attorney's office; the opinion had to be left at the City Attorney's office because it would not be given out in advance of the meeting; that she asked the City Attorney why she would not give the opinion to her; the City Attorney cited concerns regarding the white elephant in the room; she is disturbed by allegations regarding Councilmernber /Board Member /Commissioner Tarn, the Interim City Manager, City Attorney, Mayor, and SunCal; the situation has created an unnecessary, adversarial atmosphere around City ball and the City; at the end of the day, everyone is friends, neighbors, and colleagues' and everyone will have to learn to work together; that she has volunteered for the City for over fifteen years; she has .never seen the situation get this bad; the situation has been adversarial between the Councilmembers /Board Members /Commissioners even with general disagreements of opinion in addition to being adversarial between staff and the Councilmembers /B.oard Members /Commissioners; the whole process has bread an atmosphere of fear and suspicion that has driven some actions such as not letting her see the opinion; the implication that certain members of the Council /Board /Commission could .not be trusted with confidential material applied to all the Councilmembers /Board Members /Commissioner; that she wanted the opinion because the opinion is lengthy, and she did not know whether she would want to review the opinion again after reading the lengthy staff report; bouncing back and forth to the City Attorney's office is very inconvenient; the matter is a Charter issue because the Charter states that Councilrnernbers /Board Members/ Commissioners should be able to get an opinion from the City Attorney if requested in writing; the Charter does not state that an opinion Special Joint Meeting Alameda City Council, Alameda Reuse and 13 Redevelopment Authority, and Community Improvement Commission July 20, 2010 needs to be read in a certain place; requested the City Attorney to provide an opinion that she is comfortable stating in public; stated that she feels the complicated opinion is difficult to digest; a Closed Session was not held on the matter tonight because of a clerical error; that she does not have the benefit of her colleague's and legal team's thinking. Mayor /Chair Johnson stated no allegations have been directed toward her; she understands there have been claims and spins regarding the investigative reports. The City Attorney. /Legal Council stated SunCal's attorneys have threatened to sue the City if the City does not do what SunCal wants; having a litigation defense briefing would not change the situation and would have no bearing on the Councilmembers /Board Members' /Commissioners' .decision tonight; City staff, including a significant legal team of land use attorneys, CEQA attorneys, and litigators, have done a through analysis of the issues before the Councilrnernbers /Board Members /Commissioners tonight and have made a recommendation to. the Councilmembers /Board Members/Commissioners; SunCal also says that it is entitled to the benefit of the deal that SunCal has made; the deal is .the ENA; the ENA specifically states that damages would be limited to return of. SunCal's. $1 million deposit in the event of the City's breach of its obligation to negotiate diligently and in good faith. Council member/Board Member /Commissioner Gilmore inquired whether SunCal's damages would be limited to $1 million if SunCal sues the City and is successful. The City Attorney /Legal Counsel responded in the negative; stated the benefit of the bargain SunCal made set forth in black and white.. in the ENA specifically states SunCal's damages would be limited to a return of the .$1 million deposit; that she does not believe tonight's forum is a good time to get into a legal issue debate with SunCal's attorneys. Councilrnember /Board Member /Commissioner Matarrese stated. the ENA expired yesterday; the City does not have a Navy terra sheet; inquired whether the question on the agenda tonight is whether or not to accept the MOEA. The City Attorney /Legal Counsel responded the question on the agenda is whether or not to follow the staff recommendation. to deny the MOEA which could be done without prior CEQA review; stated Councilmembers /Board Members /Commissioners cannot approve the MOEA without CEQA review. Councilmember /Board Member /Commissioner Matarrese moved approval of the staff recommendation; stated the project has the same flaws as the project before the voters; the DDA would not change the issue; opening the process up would be beneficial to the Special Joint Meeting Alameda City Council, Alameda Reuse and 14 Redevelopment Authority, and Community Improvement Commission July 20, 2010 City. Vice Mayor /Board Member /Commissioner deHaan seconded the motion. Under discussion, Mayor /Chair Johnson stated the process was very thorough when SunCal was selected; that she did not vote for SunCal but supported the position of the majority of the Councilmembers /Board Members/Commissioners; Councilmembers /Board Member /Commissioner Matarrese did not vote for SunCal but also supported the selection of the majority of the Council /Board Members/Commissioners; four Councilmernbers /Board Members /Commissioners made an effort to accept the vote to work, support, and cooperate with SunCal; that she appreciates SunCal's community outreach; situations leading to Measure B took .a turn for the gorse; the relationship between SunCal and the City has gotten gorse; the community made an effort to work with SunCal; SunCal has not returned the community's good faith efforts; that she has had an open relationship with SunCal and has expressed community concerns; there is too much development; she does. not see how all the traffic could get through two lanes in the Tube in both directions; her family members lived in Alameda at the peak of the former Naval Base; that her grandmother could not get out of her driveway on the 1700 block of Versailles Avenue because Base workers would come over the 1= ruitvale Bridge; people accepted and supported traffic backups because of Alameda's contribution toward national security and military efforts; allowing an inappropriate development is different; she ran for Council twelve years ago to help guide the former Naval Base redevelopment;. the City needs a trustworthy partner; some of the things that SunCal has done questions. SunCal's trustworthiness; that she does not think SunCal's threats and bullying is appropriate, particularly when a decision has not been made; she never makes up her mind until there has been a public hearing; that she is very concerned about the project's financial feasibility; she does not think there could be a 25% I RR; now she is learning there would be a 25% profit in addition. Vice Mayor /Board Member /Commissioner deHaan stated one incident does not change a person's mind; that he has supported and given all to SunCal; having a developer spend more than $1.25 million on a campaign is bizarre; spending another $1.5 million on pre campaign efforts is equally bizarre; the community should be proud that it pushed back with less than $22,000; money does not buy loyalty and trust; money should not flow inappropriately. Councilmember /Board Member /Commissioner Tam stated that she is being attacked in her efforts to keep Alameda government open and honest; that she..wants to be clear that the correspondence in the documents and allegations, including the ones to the fire fighters, SunCal, and whoever has asked her questions, shows that she has diligently followed up on the tough questions with the Interim City Manager /Executive Director Special Joint Meeting Alameda City Council; Alameda Reuse and 15 Redevelopment Authority, and Community Improvement Commission July 20, 2010 and that she has pushed to have important questions answered; having said that, with the vote this evening, the MOEA may- not be the plan the City ultimately wants at Alameda Point; staff has made some assumptions on financial and environmental impacts; the historic resources group has made some findings that are part of the eligibility of being listed in the National Registry; doing nothing is not a good option; the issue is not really about SunCal in her mind; that she thinks of this as an EIR that should look at the bookends of a project; the EIR should look at doing nothing and doing the ultimate, which is the MoEA being considered this evening; that she thinks the EIR needs to analyze the full range of impacts, and then decide whether the City can afford to pay for the impacts and whether there is some threshold with respect to profit sharing; that she thinks the EIR is the most open, transparent, and fair process, which is what she is trying to underscore in terms of transparency and openness when it comes to communications with the community; she will be abstaining from the vote for said reasons. Councilmember /Board Member/Commissioner Gilmore stated that the transit plan is one of the most important things to her; everyone would suffer with an unsuccessful transit plan; that she is intrigued by the transit plan and she would like to see an EIR go forward and evaluate the transit plan and impacts; that she has problems with the financials; Alameda Point Community Partners (APCP) wanted a 25% I RR; that she voted down the 25% IRR because 25% seemed high and was something that the City and developer should have gone back to the drawing board to flush out before going down the path to a DDA; the financial assurances and I RR give her pause. Councilmernber /Board Member /Commissioner Matarrese stated in addition to traffic, another concern is the Albuquerque bankruptcy and how the City would protect itself from becoming another Albuquerque; that he does not think the City can protect itself; questioned whether the City wants to do business with a land investor; that he would like the process to be open and get the best deal for Alameda; the Councilmembers /Board Members /Commissioners have a lot of experience and can do better. On the call for the question, the motion carried by a roll call vote: Councilmembers Gilmore: Aye; Matarrese: Aye; Tam: Abstain; vice Mayor deHaan: Aye; and Mayor Johnson: Aye. Ayes: 4. Abstentions: 1. A W L I I" 61, 1 I 10, There being no further business, Mayor /Chair Johnson adjourned the meeting at 1:09 a.m. Respectfully submitted, Special Joint Meeting Alameda City Council, Alameda Reuse and 16 Redevelopment Authority, and Community Improvement Commission July 20, 2010 L_ara Weisiger, City Clerk Secretary, CIC The agenda for this meeting was posted in accordance with the Brown Act. Special Joint Meeting Alameda City Council, Alameda Reuse and 17 Redevelopment Authority, and Community Improvement Commission July 20, 2010 UNAPPROVED MINUTES OF THE SPECIAL JOINT CITY COUNCIL ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY (ARRA), AND COMMUNITY IMPROVEMENT COMMISSION (CIC) MEETING TUESDAY- -JULY 27,2010- -7:00 P.M. Mayor /Chair Johnson convened the meeting at 7.06 p.m. Councilrnernber /Board Member /Commissioner Gilmore led the Pledge of Allegiance. ROLL CALL Present: Councilmembers /Board Members /Commissioners deHaan, Gilmore, Matarrese, Tarn and Mayor /Chair Johnson —5. Absent: None. CONSENT CALENDAR. Mayor /Chair Johnson announced that the recommendation to appoint Michael Krueger [paragraph no. 10- was continued; and the recommendation to authorize the Interim Executive Director to sign a Letter of Agreement [paragraph no. 10- and the recommendation to approve an Agreement with the City of Inglewood [paragraph no. 10- were removed from the Consent Calendar for discussion. Councilmember /Board Member /Commissioner Matarrese moved approval of the remainder of the Consent Calendar. Councilmernber /Board Me nber /Commissioner Gilmore seconded the motion, which carried by unanimous voice vote 6. [items so enacted or adopted are indicated by an asterisk preceding the paragraph number.] *10-- CCIARRA110- CIC Minutes of the Special Joint City Council, ARRA and CIC Meeting Held on July 7, 2010. Approved. 10- CC Recommendation to Appoint Michael Krueger to the Oakland Chinatown Advisory Committee. Not heard. 10- CIC) Recommendation to Authorize the Interim Executive .Director to Sign a Letter of Agreement in the. Amount of $9,690 with the Greater Alameda Business Association for FY 10 -11; to Enter. into a Contract. in the Amount of $89,998 with the Park Street Business Association for FY 10 -11; and to Enter into a Contract in the Amount of $81,676 with the west Alameda Business Association for FY 10 -11. Commissioner Gilmore stated two of the business associates have contacted her regarding street maintenance and lighting; landscaping and lighting funds are in the Special Joint Meeting Alameda City Council, Alameda Reuse and Redevelopment Authority, and Community Improvement Commission July 27, 2010 budget; inquired whether a decision has been made for street maintenance and if so, how things are working. The Interim Executive Director responded the agreements are the same as in the past; stated this year, funds have been reduced by a nominal amount; the City did an Request for Proposal (RFP) to see if some of the landscape and maintenance services could be done at a reduced rate; the associations have had different views regarding whether the amount of coverage in the. RFP's were comprehensive; a vendor has agreed to work with the west Alameda Business Association (WABA) to bifurcate the bid so that the bid would work for wABA; the Park Street Business Association (PSBR) will continue to do its own thing; the landscape and lighting agreement funds are sufficient to cover whatever wABA and PSBA choose to do. Chair Johnson stated past discussions have addressed advertising at the Oakland Airport; that she thinks the idea is worth reviewing. The Interim Executive Director stated Alameda is very close to the airport, but nothing is advertised on the screen; advertising costs will be researched. Commissioner deHaan stated that he recalls the matter being addressed with the Chamber of Commerce. The Economic Development Business Development Division Manager stated the City has a Contract with the Chamber of Commerce for writing articles and public relations, not airport advertising. The Interim Executive Director stated the motion could include language regarding looking into airport advertising. Commissioner deHaan moved approval of the staff recommendation, with direction for the Interim Executive Director to review advertising in the Oakland Airport. Commissioner Matarrese seconded the motion, which carried by unanimous voice vote —5. 1 O CC Recommendation to Approve an Agreement with the City of Inglewood for Citation Processing and Collection Services. The Deputy City Manager Administrative Services gave a brief presentation. Mayor Johnson stated the service is provided to other cities; inquired whether staff has contacted other cities to get an idea of satisfaction. Special Joint Meeting Alameda City Council, Alameda Reuse 2 and Redevelopment Authority, and Community Improvement Commission July 27, 2010 The Deputy City Manager Administrative Services responded in the negative; stated the City of Inglewood advised her that its track record for renewing Northern California client contracts is good; in 2009, the City of Inglewood had 12 existing clients that reneged contracts and new clients came onboard, the City of Berkeley has renewed its contract. Councilmember Gilmore stated that she understands the efficiencies, but is having trouble with contract costs versus ghat would be saved. The Deputy City Manager Administrative Services stated currently, the parking citation program costs approximately $85- 90,000 for staff, which does not track the Supervising Accountant time for managing the program; the Supervising Accountant's time is charged elsewhere; the savings would be approximately $10,000 in terms of the program; an existing employee would be transferred as opposed to hiring a new employee which would result in another $80,000 or so in savings. Councilmember Tarn stated staff looked at the City of Inglewood when performing its due diligence regarding economies of scale; inquired why staff has not talked with the City of Oakland or City of Berkeley regarding exploring partnering opportunities in terms of the Duncan Solutions program. The Deputy City Manager Administrative Services responded both Berkeley and Oakland contract out and use different vendors; Duncan and Inglewood are the industry standard and have 05 clients in northern California. Councilmember Tam stated that she is not .clear on the processing center location; the location does not seem to be centralized, but spread out, The Deputy City Manager Administrative. Services. stated Duncan Solutions is based out of Milwaukee; Inglewood sought partnership with Duncan Solutions since it is the largest provided; handheld ticket writer support is provided from Carlsbad. Councilmember Tam 'inquired whether the $13,000 a year credit card processing costs would be included in the $75,000 [annual agreement cost], or whether the cost would be part of the convenience fee that the person getting the ticket would have to pay. The Deputy City Manager Administrative Services responded the person getting the ticket would pay the convenience fee as an added cost to the ticket. Speaker: Richard Hausman, Alameda. The Deputy City Manager Administrative Services stated developing a system would be a time consuming process and would be quite costly; some money would be given up for the privilege of having someone else do collections; staff could bring the Special Joint Meeting Alameda City Council, Alameda Reuse 3 and Redevelopment Authority, and Community Improvement Commission July 27, 2010 collections issue back as a separate item in September so Council Gould choose whether or not to pursue the issue. Mayor Johnson inquired whether the collection system would be used for tickets that are not paid, to which the Deputy City Manager Administrative services responded the collection system would be used for outstanding tickets that would go through the Franchise Tax Board. Mayor Johnson inquired ghat process is used now. The Deputy City Manager Administrative services responded letters are sent out four times a year; people do not necessarily. respond; eventually, something gets placed on a person's DMV record, which prevents re-registering a car. The Interim City Manager stated the City has an integrated. financial management system that does not have all the modules; having parking citations in an integrated ledger is usually part of accounts receivable; the existing financial management software systems more driven for school districts than for:cities; the average cost for a new module is between $85,000 to $120,000; the existing system has not been maintained or serviced; the City would. have to buy a separate parking citation module, program. and integrate the module. into the. existing system, and find someone to maintain the system; replacing the financial management system with integrated modules would cost approximately $1.2 million; a maintenance and service fee would be approximately $49,000 to $80,000 depending on the module. Vice Mayor. deHaan stated the issue is more than just personnel but involves software and maintenance. The Interim City Manager stated .the most efficient way.to handle the matter would be to start peeling away at the various modules little by little and budget going toward a hosted system or outsourcing a system. Vice Mayor deHaan inquired whether the Interim City Manager is looking at looking at outsourcing some of the components. The Interim City Manager responded different modules are being reviewed; stated the issue will be discussed under the budget item. Council.member Tangy inquired whether any. other services are available other than Inglewood Citation Management Services (ICMS); further inquired what the City of Oakland uses; stated that she is concerned with being tied to one system and having no recourse other than not renewing the contract if there is a problem. Special Joint Meeting Alameda City Council, Alameda Reuse 4 and Redevelopment Authority, and Community Improvement Commission July 27, 2010 The Deputy City Manager Administrative Services responded that she does not know ghat the City of Oakland uses; stated if a problem develops, the City could contract with another vendor once the existing Agreement expires. The Interim City Manager inquired whether the Agreement has a termination clause, to which the Deputy City Manager Administrative Services responded that she would need to check. Councilmember Gilmore inquired whether the software being used by the vendor is proprietary; further inquired whether the City would need to reprogram everything or get a whole new system when terminating the Contract, or whether someone else would know the system's functions. The Deputy City Manager Administratiye services responded the Agreement would be a three -year term with optional renewal; stated either party could. terminate the Agreement by providing 120 days written notice; everything would be hosted and would reside with ICMS, the City's data would be converted into. the data files; the City could sever the relationship six months down the road if it chooses; that she does not know whether the software is proprietary or not. The Interim City Manager clarified that the City would get its data back in some format but would not get the software. The Deputy City Manager Administrative Services stated. having an adversarial relationship with another local agency would not be in the best interest of the City of Inglewood. Councilmember Matarrese inquired whether hard information going into the database would be certified as being secure; whether data mould be retrievable to ensure that data would belong to the City at the termination of the Contract; and whether handheld validated information would go into the database. The City. Attorney confirmed security of information is included in the contract. The Supervising Accountant explained the data validation process. Councilmember Matarrese stated certification of validation, certification of secure database, and certification that the City would get data in a format that could be used at the end of the Contract is important. Vice Mayor deHaan inquired how long the City of Inglewood has been doing citation processing and collection services, to which the Deputy City Manager Administrative Services responded 20 years. 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City of Alameda, et al. BACKGROUND Council authorization is required for the city Attorney to employ special legal counsel when legal fees are estimated to exceed $35,000, pursuant to city of Alameda Resolution No. 13393. DISCUSSION SCC Alameda Point, LLC, filed and served a lawsuit against the city of Alameda, the Alameda Reuse and Redevelopment Authority, and the. Community Improvement commission in August 2010. The city Attorney's office retained David Newdorf of Newdorf Legal based on his experience defending a public entity against similar claims. He has 25 years of legal experience and worked as a trial lawyer for the city of San Francisco. Mr. Newdorf operates a small law office. Because of the breadth of material involved in the multi -year negotiations toward the development of Alameda Point, additional counsel is warranted. The City Attorney's office retained Geoff Robinson of the law firm Bingham McCutchen. Mr. Robinson is a land use litigator and has practiced law for more g than 25 years. The outside counsel for Alameda who participated in ne otiations with Suncal over the course of many months and provided transactional advice is with the same firm and Alameda will benefit from the law firm's familiarity with the subject matter. Legal fees have been incurred and are anticipated to exceed $35,000 in the months as the lawsuit goes forward. FINANCIAL IMPACT The cost of special legal counsel will be paid by the ARRA legal budget. City Council Agenda Item ##4 -C Honorable Mayor and Members of the City Council September 7, 2010 Page 2of2 MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE This action does not affect the Alameda Municipal Code. RECOMMENDATION Empower the City Attorney to employ special legal counsel Newdorf Legal and Bingham McCutchen to defend sCC Alameda Point, LLC, v. City of Alameda, Alameda Reuse and Redevelopment Authority, and the Community Improvement Commission of the City of Alameda. Respectfully submitted, Teresa Highsmith City Attorney By: Donna Mooney Acting City Attorney CITY OF ALAMEDA Memorandum To: Honorable Mayor and Members of the City council From: Ann Marie Gallant Interim City Manager Date: September 7, 2010 Re: Allocate $1,088,382 in Urban Runoff Funds and Award a Contract in the Amount of $1,088,382, Including Contingencies, to GSE .Construction for the U rades to the Northside Storm Drain Pump Station No. P.W. 02 -10 -08 BACKGROUND On April 0, 2010, the city Council awarded a contract in the amount of $9',978, including contingencies, to Schaaf Wheeler Consulting Civil Engineers for the design and preparation of plans and specifications for upgrades to the northside storm drain pump station. On July 20, 2010, the City council adopted plans and specifications and authorized a call for bids for the northside storm drain pump station, No. P.W.. 02.10 -00. The proposed project will install a new standby generator with enclosure and fuel.tank, replace the existing control panel, and upgrade the System Control and Data Acquisition (SCADA) system hardware/software. DISCUSSION To solicit the maximum number of bids and most competitive. price,. plans and specifications were provided to 19 separate builders exchanges throughout the Bay Area. A notice of bid was also published in the Alameda .journal. Ten cnntradtors.s!ibmitted bids, and the bids were opened on August 27, 2010. The list of qualified .bidders, from lowest to highest total project cost, is as follows: Bidder Location Base Enid CS l Construction Livermore $9.06. .00 Blocka Construction, Inc. Fremont $924,500.00. JMB construction South San Francisco $907,740.00 Conco West, Inc. Manteca $9.9.2,250.00 Manito Construction, Inc. Pleasanton $1,014,0.1 5.00 Valentine Corporation San Rafael $1,023,369.00 Pacific Infrastructure Pleasanton $1,035,000.00 Tico Construction Palo Cedro $1,047;100.00 Pacific Mechanical Corporation Concord $1,064;425.00 Steiny and Company, Inc. Vallejo $1 City Council Agenda Item #4- Honorable Mayor and September 7, 2010 Members of the City council Page 2 of 3 Public Works staff contacted several references provided by the low bidder and received positive feedback about the requirements and quality and timeliness of their work. Staff proposes to award a contract to GSE Construction for a total amount of $1,088,382, including contingencies. A copy of the contract is on file in the City clerk's office. The contract allows for annual extensions on a year -to -year basis, for up to four additional years, based on mutual agreement and satisfactory performance of all aspects of the contract. If extended, the contract would be for the same terms, and contract prices would be adjusted in accordance with the construction cost index reported in the Engineering News Record for the San Francisco Bay Area. FINANCIAL IMPACT Design and contract administration costs are budgeted in the capital Improvement Program (Project No. 99000) for the project; however, construction cost is not.bud 9 eted. Staff proposes to allocate $1,088,382 from the Urban Runoff fund for this project, which has sufficient funds. No General Fund monies are required. MUNICIPAL CODE /POLICY DOCUMENT CROSS REFERENCE This action does not affect the Alameda Municipal code. ENVIRONMENTAL REVIEW In accordance with the California Environmental Quality Act (CEQA), this project is Categorically Exempt under CEQA Guidelines, Section 15303, New Construction or Conversion of Small Structures. RECOMMENDATION Allocate $1,088,382 in Urban Runoff funds and award a contract in the amount of $1,088,382, including contingencies, to GSE Construction for the upgrades to the northside storm drain pump station, No. P.W. 02- 10 -00. Honorable Mayor and Members of the City Council Approved as to funds and account, h A, Fred Marsh Controller September 7, 2014 Page 3of3 Exhibit: 1. Contract (on file in the City Clerk's office) CITY of ALAMEDA Memorandum To: Honorable Mayor and Members of the City Council From: Ann Marie Gallant Interim City Manager Date: September 7, 2010 Re: Award a Contract in the Amount of $1,372,209, Including Contingencies, to WR Forde for the Cyclic Seger Replacement Project, Phase 8, No. P. W. 01- 10 -03 BACKGROUND On July 6, 2010, the City Council adopted plans and specifications and authorized a call for bids for the cyclic sewer replacement project, phase 8, No. P. W. 01- 10 -03. The proposed project will rehabilitate approximately 6,500 linear feet of existing sanitary sewer pipeline, 3,500 linear feet of service laterals, 29 manholes, and construct other associated work on Buena Vista Avenue, from Grand Street to Chapin Street, Lincoln Avenue, from Walnut Street to Willow Street, and Pacific Avenue, from Sixth Street to Webster Street. DISCUSSION To solicit the maximum number of bids and most competitive price, plans. and specifications were provided to 19 separate builders exchanges throughout the Bay Area. A notice of bid was also published in the Alameda Journal. Bight contractors submitted bids, and the bids were opened on August 17, 2010. The list of qualified bidders, from lowest to highest total project cost, is as follows: Bidder Location Base Bid WR Forde Richmond $1,189,425.00 Ran er Pipelines, Inc. San Francisco $1 Darcy Harty Construction, Inc. San Francisco $1,25.8,850.00 D &D Pipelines San Francisco $1;386,150.00 G h ilotti Construction Santa Rosa $1,489, Mountain Cascade, Inc. Livermore $1 MDF Pipelines Dublin $1 J &III, Inc. Livermore $1,590 Public Works staff contacted several references provided by the low bidder and received positive feedback on the ability of the company to meet the project requirements and the quality and timeliness of their work. City Council Agenda Item #4 -1E 09 -07 -10 Honorable Mayor and September 7, 2010 Members of the City council Page 2 of 2 The project specifications included an add alternate for the handling and disposal of hazardous materials encountered during the course of the project. Staff proposes to award a contract to wR Forde for a total amount of $1,372,209, including the add alternate for $3,300 and a 15% contingency. A copy of the contract is on file in the Cit y clerk's office. The contract allows for annual extensions on a year -to -year basis, for up to four additional years, based on mutual agreement and satisfactory performance of all aspects of the contract. If extended, the contract would be for the same terms, and contract prices would be adjusted in accordance with the construction cost index reported in the Engineering g g News Record for the San Francisco Bay Area. FINANCIAL IMPACT The project is budgeted in the CIP (Project No. 95 -02), with monies allocated from the Sewer Enterprise Fund. There is no impact to the General Fund. M CODE/POLICY DOCUMENT CROSS REFERENCE This action does not affect the Alameda Municipal code. ENVIRONMENTAL REVIEW In accordance with the California Environmental Quality Act (CEQA), this project is Categorically Exempt under CEQA Guidelines Section 15301(c), Existing Facilities, RECOMMENDATION Award a contract in the amount of $1,372,209, including contingencies, to WR Forde for the cyclic sewer replacement project, phase 8, No. P. W. 01- 10 -03. Approved as to funds and account, Fred Marsh Controller BH: PS:gc Exhibit: 1. Contract (on file in the City Clerk's office) CITY of ALAMEDA Memorandum To: Honorable Mayor and Members of the City Council From: Ann Marie Gallant Interim City Manager Date: September 7, 2010 Re: Award a Contract in the Amount of $88,500, Including contingencies, to Clean Lakes, Inc., for 'Vegetation Management, Debris Management, and Water Quality Monitoring for South Shore La oons No. P. W. 07 -10 -19 BACKGROUND On June 10, 2010, the Public Works Department issued a Request for. Bids (RFB)f0r vegetation management, debris management, and grater quality monitoring .for South Shore lagoons, Igo. P. W. 07-10 -19. The project includes maintaining the. lagoon system in 9 y accordance with all regulatory permits and clean grater requirements. Work includes: removing vegetation, litter, and debris, conducting water quality tests; meeting monthl y with Public Works staff and the Alameda vilest Lagoon Homeowners Association (AW and providing a monthly report on maintenance activities and budget status. DISCUSSION To solicit the maximum number of bids and most competitive price, the .AFB was provided to 19 separate builders exchanges throughout the Bay Area. A notice of bid .eras also published in the Alameda Journal. Three contractors submitted bids, and the. bids were opened on July 1, 2010. The list of qualified bidders, from lowest to highest total project g p cost, is as follows: Bidder Location Base Bid Clean Lakes, Inc. Martinez, CA $73 Terra Care Associates Loomis, CA $76 Aquatic Environments, Inc. Alamo, CA $106 Public Works staff contacted several references provided by the lour bidder and received positive feedback on the ability of the company to meet the project requirements and the quality and timeliness of their work. Staff proposes to award a contract to Clean Lakes Inc., for a total amount of $88,500, including contingencies. The contract allows for annual extensions on a year -to -year basis, for up to four additional years, based on mutual agreement and satisfactory performance of all aspects of the contract. If extended, the contract would be for the same terms,. and contract prices would City Council Agenda Item ##4 -F 09 -07-10 Honorable Mayor and Members of the City Council September 7, 2010 Page 2 of 2 be adjusted in accordance with the construction cost index reported in the Engineering News Record for the San Francisco Bay Area. A copy ofthe contract is on file in the City Clerk's office. FINANCIAL IMPACT The funds for this project are shared equally between the Urban Runoff fund and the AWLHOA. No General Fund monies are required. MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE This action does not affect the Alameda Municipal Code. ENVIRONMENTAL REVIEW In accordance with the California Environmental Quality Act (CEQA), this project is Categorically Exempt under CEQA Guidelines Section 15301(c), Existing Facilities. RECOMMENDATION Award a contract in the amount of $88,500, including contingencies, to Clean Lakes, Inc., for vegetation management, debris management, and water quality monitoring for south Shore lagoons, No. P. W. 07- 10 -19. Approved as to funds and account, Fred Marsh Controller JB :LSagc Exhibit: 1. Contract (on file in the City Clerk's office) CITY OF ALAMEDA Memorandum To: Honorable Mayor and Members of the City Council From: Ann Marie Gallant Interim City Manager Date: September 7, 2010 Re: Award a Contract in the Amount of $337,472, Including Contingencies, to Weber Tractor Service for the Repair of Portland Cement Concrete Sidewalk, Curb, Cutter, Driveway, and minor Street Patching, FY10 -11, Phase 11. No. P.W. 06- 10--14 BACKGROUND On July 20, 2010, the City Council adopted plans and specifications and authorized a call for bids for the repair of Portland Cement Concrete (PCC) sidewalk, curb, gutter, driveway, and minor street patching, FY10 -11, phase 11, No. P.W. 06- 10 --14. The proposed project will replace approximately 6,000 linear feet of sidewalk. During the construction, Public Works staff will work closely with a certified arborist to examine the trees .causing the sidewalk uplift and to determine the best course of action for the long terra viability of the trees and to minimize future sidewalk uplift. when required, the tree roots causing the uplift will be trimmed or shaved, as recommended by the arborist. DISCUSSION To Solicit the maximum number of bids and most competitive price, plans and specifications were provided to 19 separate builders exchanges throughout the. Bay Area. A notice of bid was also published in the Alameda Journal. Seven contractors submitted bids, and the bids were opened on August 19, 2010. The list of qualified bidders, from lowest to highest total project cost, is as follows: Bidder Location Base Bid Weber Tractor Service Redwood City $269,976.66 Golden Bay Construction Ha and $273,247.60 Nor -Cal Concrete Suisun $276,6'11.00 JJR Construction San Mateo $284,626.43 Sposeto Engineering Union City $312,91 0.20 Rosas Brothers Construction Oakland $326,066.00 SpenCon Construction Danville $329,586.75 City Council Agenda Item #4 -G 09-07-10 Honorable Mayor and September 7, 2010 Members of the city council Page 2 of 3 Public works staff contacted several references provided by the low bidder and received positive feedback on the quality and timeliness of their work. In addition, Weber Tractor Service has performed annual sidewalk repair and on -call concrete work for the cities. of Berkeley, Daly city, Los Altos, Redwood city, and Saratoga and, therefore, has the experience and ability to meet the project requirements. Staff proposes to award a contract to Weber Tractor Service for a total amount of $337,472, including a 25% contingency. The greater than normal contingency is requested because the bid price is competitive, there are sufficient funds available in the Capital improvement Program budget, and there is an extensive list of locations throughout the City that require sidewalk repairs. A copy of the contract is on file in the city clerk's office. The contract allows for annual extensions on a year -to -year basis, for up to four additional years, based on mutual agreement and satisfactory performance of all aspects of the contract. If extended, the contract would be for the same terms, and contract prices would be adjusted in accordance with the construction cost index reported in the Engineering News Record for the San Francisco Bay Area. FINANCIAL I M PACT The project is budgeted in the Capital Improvement Program (Project No. 98202.11), with monies allocated from Measure B and the Transportation Development Act. There is no impact to the General Fund. MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE This action does not affect the Municipal code. ENVIRONMENTAL REVIEW In accordance with the California Environmental Quality Act (CEQA), this project is Categorically Exempt under the CEQA Guidelines Section 15301(c), Existing Facilities. Honorable Mayor and Members of the City council RECOMMENDATION September 7, 2010 Page 3 of 3 Award a contract in the amount of $337,472, including contingencies, to Weber Tractor Service for the repair of PCC sidewalk, curb, gutter, driveway, and minor street patching, FY10 -11, phase 11, No. P.W. 06- 10 -14. Approved as to funds and accounts, Fred Marsh Controller BH:sP:gc Exhibit: 1. Contract (on file in the City Clerk's office) CITY of ALAS EDA Memorandum To: Honorable Mayor and Members of the City Council From: Ann Marie Gallant Interim City Manager Date: September 7, 2010 Re: Adopt Plans and Specifications and Authorize a Call for Bids for Sewer Point Repairs and Asphalt Concrete Replacement within the City of Alameda No. P. W. 07 -10 -20 BACKGROUND The Public Works Department maintains approximately 136 miles of sanitary sewer mains and 100 miles of sanitary sewer laterals within the City of Alameda. Part of the department's on -going maintenance program includes repairs to isolated areas of p i P e failure, known as sewer point repairs. Locations for point repairs are identified by the department based on routine maintenance and cleaning records, locations of previous sanitary sewer overflows, and resident calls. DISCUSSION The proposed project will complete sanitary server point repairs at various locations throughout the city. When a back -up of a sewer main or lateral occurs, the line is cleared and videoed. This identifies the location of the pipe failure and provides information to determine the extent of the repairs. The repair work is scheduled and the information describing the details of the repair is recorded and tracked for future reference. The project specifications allow for the annual extension of the contract on a year -to- year basis, for up to four additional years, based on mutual agreement and satisfactory performance of all aspects of the contract. If extended, the contract would be for the same terms, and contract prices would be adjusted in accordance with the construction cost index reported in the Engineering News Record for the San Francisco Bay Area. A copy of the plans and specifications is on file in the City Clerk's office. FINANCIAL IMPACT The project is budgeted in the Sewer Fund (602). There is no impact to the General Fund. City Council Agenda Item ##4 -H 09 -07 -10 Honorable Mayor and September 7, 2010 Members of the City Council Page 2 of 2 MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE This action does not affect the Municipal Code. ENVIRONMENTAL REVIEW In accordance with the California Environmental Quality Act (CEQA), this project is Categorically Exempt under the CEQA Guidelines Section 15302(c), Replacement or Reconstruction. RECOMMENDATION Adopt plans and specifications and authorize a call for bids for sewer point repairs and asphalt concrete replacement within the City of Alameda, No. P. W. 07- 10 -20. Approved as to funds and account, Fred Marsh Controller JB:LS:gc Exhibit 1. Plans and Specifications (on file with the City Clerk's office) CITY of ALAMEDA Memorandum To: Honorable Mayor and Members of the City Council From: Ann Marie Gallant Interim City Manager Date: September 7, 2010 Re: Adopt a Resolution Authorizing the Interim City Manager to File an Application for $837,000 in Federal Surface Transportation ra Pro ngy 0. and /or Congestion Mitigation and Air Quality Improvement Funding for the City of Alameda Certain Street Rehabilitation, No. P.W. 08 -10 -21 Otis Drive, Westline Drive to Willow Street), Appropriate $108,442 in Proposition 42 Funds for the Necessary Non-Federal. Match, and Stating the Assurance to Comr)lete the Proiect BACKGROUND The Metropolitan Transportation Commission (MTC) recently announced a new grant program known as the Congestion Management Agency (CMA) Block Program. The Block Grant Program anticipates funding for the first three years (Cycle 1) of a new six -year federal Transportation Authorization Act (TAA), ,which has yet to be approved by Congress. To provide funding for the new grant program until the TAA is enacted, the federal Safe, Accountable, Flexible, Efficient Transportation Equity Act: A.Legacy for Users (SAFETEA -LU) has been extended through December 31, 2010. The SAFETEA- LU authorized funding for the Surface Transportation Program (STP) and the Congestion Mitigation and Air Quality Improvement Program (CMAQ). Grants are available for three programs: guaranteed STP and/or .CMAQ fundin g based on the Local Streets and Roads (LSR) formula; and competitive fund for Transportation for Livable Communities (TLC) and the Regional Bicycle 'rogram (RBP). The City was unsuccessful in receiving either of the competitive funded block grants .but is eligible for the STP /CMAQ block grant. MTC plans to apply. for. funding from tl�e STP and/or CMAQ, for several sponsors, including the City of Alameda, as a p art of MTC Resolution No. 3025, "New Federal Surface Transportation Act TY09 -1 o, FY10 -11} Cycle 1 STP /CMAQ Program: Project Selection Criteria, Policy, Procedures. and Programming." DISCUSSION The City of Alameda proposes to use the STP /CMAQ funds for Otis Drive, from Westline Drive to the eastern intersection of Willow Street. This section of arterial is approximately one mile in length and serves both the local Southshore residents and City Council Report Rev Agenda Item ##4 I 0J -07-1 Honorable Mayor and September 7, 2010 Members of the City Council Page 2 of 2 the general city -wide population, including transit users. This project will reconstruct portions of the pavement and curb, and apply an asphalt surfacing to the entire street. The Cycle 1 STPICMAQ program requires a local match of 11.47% and adoption of a resolution of support by September 30, 2010. The local match is proposed to come from Proposition 42 funding. Pending approval by the federal government, the funds will be available for the upcoming federal fiscal year (FY10-1 1), which starts October 1, 2010. Construction is programmed for summer 2011. FINANCIAL IMPACT The funds for the City's annual resurfacing program are identified in the Capital Improvement Program (Project No. 82- 01 -30). The cost to resurface Otis Drive is estimated at $945,000. The project is to be funded with $837,000 in STP /CMAQ funds and $108,442 in local matching funds, to be taken from Proposition 42. No General Fund monies are required. MUNICIPAL CODE /POLICY DOCUMENT CROSS REFERENCE This action does not affect the Alameda Municipal Code. ENVIRONMENTAL REVIEW In accordance with the California Environmental Quality Act (CEQA), this project is Categorically Exempt under CEQA Guidelines Section 15301(c), Existing Facilities. In accordance with the National Environmental Protection Act (NEPA), this project is Categorically Excluded under 23 CFR 771.117(d), activity (d)(1) Highway Rehabilitation. RECOMMENDATION Adopt a resolution authorizing the Interim City Manager to file an application for $837,000 in federal STP and /or CMAQ funding for the City of Alameda certain street rehabilitation, fro. P.W. 08 -10 -21 (Otis Drive, Westline Drive to 'Willow Street), appropriate $.108,442 in Prop 42 funds as the necessary local match, and statin g the assurance to complete the project. Respectfuliv submitted, F Matthew T. Naclerio Public Works Director Approved as to funds and account, Fred )Marsh Controller Resolution of Local Support STPICMAQ Funding CITY OF ALAMEDA RESOLUTION NO. F �a AUTHORIZING THE INTERIM CITY MANAGER TO FILE AN APPLICATION FOR $837,000 IN FEDERAL SURFACE 0 TRANSPORTATION PROGRAM AND /OR CONGESTION C 0 /LITIGATION AND AIR QUALITY IMPROVEMENT FUNDING FOR THE CITY OF ALAMEDA CERTAIN STREET REHABILITATION, NO. P.W. 08- 10-21 (OTIS DRIVE, WESTLINE DRIVE TO WILLOW STREET), APPROPRIATE $1 08,442 IN PROPOSITION 42 FUNDS AS THE NECESSARY LOCAL MATCH, AND STATING THE ASSURANCE TO COMPLETE THE PROJECT WHEREAS, the City of Alameda (herein referred to as APPLICANT or SPONSOR) is submitting an application to the Metropolitan Transportation Commission (MTC) for $837,000 in funding from the federal Surface Transportation Program (STP) and/or Congestion Mitigation and Air Quality Improvement (CMAQ) program for the City of Alameda Certain Street Rehabilitation, No. P.W. 08 -10 -21 (Otis Drive, Westline Drive to Willow Street) (herein referred to as PROJECT) for the MTC Resolution, No. 3925, New Federal Surface Transportation Act (FY 2009 -10 FY 2010 -11 and FY 2011 -12) Cycle 1 STP /CMAQ Program: Project Selection Criteria, Policy, Procedures and Programming (herein referred to as PROGRAM); and WHEREAS, the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA) (Public Law 109 -59, August 10, 2005) authorized the Surface Transportation Program (23 U.S.C. 133) and the Congestion Mitigation and Air Quality Improvement Program (CMAQ) (23 U.S.C. 149) through September 30, 2009; and WHEREAS, SAFETEA has been extended through December 31, 2010 pursuant to Public Laver 111 147, /March 18, 2010 and may be subsequently extended pending enactment of successor legislation for continued funding; and WHEREAS, pursuant to SAFETEA, and the regulations promulgated thereunder, eligible project sponsors wishing to receive federal Surface Transportation Program and /or Congestion Mitigation and Air Quality Improvement Program (STP /CMAQ) funds for a project shall submit an application first with the appropriate Metropolitan Planning Organization (MPO), for review and inclusion in the MPO's Transportation Improvement Program (TIP); and WHEREAS, the MTC is the M PO for the nine counties of the San Francisco Bay region; and Resolution #4 -1 CC 9 -7 -10 WHEREAS, MTC has adopted a Regional Project Funding Delivery Policy (MTC Resolution No. 3606, revised) that sets out procedures governing the application and use of STP /CMAQ funds; and WHEREAS, APPLICANT is an eligible project sponsor for STP /CMAQ funds; and WHEREAS, as part of the application for STPICMAQ funding, MTC requires a resolution adopted by the responsible implementing agency stating the following: 1) the commitment of necessary local snatching funds of at least 11.47 and 2} that the sponsor understands that the STP /CMAQ funding is fixed at the programmed amount, and therefore any cost increase cannot be expected to be funded with additional STPICMAQ funds; and that the project will comply with the procedures specified in Regional Project Funding Delivery Policy (MTC Resolution No. 3606, revised and 4} the assurance of the sponsor to complete the project as described in the application, and if approved, as included in MTC's TIP; and 5) that the project will comply with all the project- specific requirements as set forth in the PROGRAM.; and 6) that the project (transit only) will comply with MTC Resolution No. 3866, which sets forth the requirements of MTC's Transit Coordination Implementation Plan to more efficiently deliver transit projects in the reg ion NOW, THEREFORE, BE IT RESOLVED that the APPLICANT is authorized to execute and file an application for funding for the PROJECT under the Surface Transportation Program (STP) and Congestion Mitigation and Air Quality Improvement Program (CMAQ) of SAFETEA, any extensions of SAFETEA or any successor legislation for continued funding; and be it further BE IT FURTHER RESOLVED that the APPLICANT by adopting this resolution does hereby state that: 1. APPLICANT will provide $108,442 Prop 42 local snatching funds; and 2. APPLICANT understands that the STPICMAQ funding for the project is fixed at the MTC approved programmed amount, and that any cost increases must be funded by the APPLICANT from other funds, and that APPLICANT does not expect any cost increases to be funded with additional STPICMAQ funding; and 3. APPLICANT understands the funding deadlines associated with these funds and will comply with the provisions and requirements of the Regional Project Funding Delivery Policy (MTC Resolution No. 3606, as revised); and 4. PROJECT will be implemented as described in the complete application and in this resolution and if approved, for the amount programmed in the MTC federal TIP; and 5. APPLICANT (for a transit project only) agrees to comply with the requirements of MTC's Transit Coordination Implementation Plan as set forth in MTC Resolution 3866; and 6. APPLICANT and the PROJECT will comply with the requirements as set forth in the program; and therefore be it further BE IT FURTHER RESOLVED that APPLICANT is an eligible sponsor of STPICMAQ funded projects; and be it further BE IT FURTHER RESOLVED that APPLICANT is authorized to submit an application for STP /CMAQ funds for the PROJECT; and be it further BE IT FURTHER RESOLVED that there is no legal impediment to APPLICANT making applications for the funds; and be it further BE IT FURTHER RESOLVED that there is no pending or threatened litigation that might in any way adversely affect the proposed PROJECT, or the ability of APPLICANT to deliver such PROJECT; and be it further BE IT FURTHER RESOLVED that APPLICANT authorizes its Interim City Manager, Executive Director, General Manager, or designee to execute and file an application with MTC for STPfCMAQ funding for the PROJECT as referenced in this resolution; and be it further BE IT FURTHER RESOLVED that a copy of this resolution will be transmitted to the MTC in conjunction with the filing of the application; and be it further BE IT FURTHER RESOLVED that the MTC is requested to support the application for the PROJECT described in the resolution and to include the PROJECT, if approved, in MTC's TIP. I, the undersigned, hereby certify that the foregoing Resolution was duly and regularly adopted and passed by the council of the city of Alameda in regular meeting assembled on the 7th day of September, 2g 1 O, by the following vote to twit: AYES: NOES: ABSENT: ABSTENTIONS: IN WITNESS, WHEREOF, I have hereunto set ray hand and affixed the official seal of said city this 8th day of September, 2010. Sara Weisiger, City clerk City of Alameda CITY of ALAMEDA Memorandum To: Honorable Mayor and Members of the City Council From: Ann Marie Gallant Interim city Manager Date: September 7, 2010 Re: Ratify the Public Utilities Board's Approval of the First Amendment for Construction, operation and Financing of combustion Turbine Project Number one and the Quitclaim Deed Form for the Roseville combustion Turbine Units, and Authorize the General Manager of Alameda Municipal Power to Execute the First Amendment and Authorize the Mayor to Execute the Quitclaim Deed Form (Four Affirmative votes Reauired) BACKGROUND Alameda Municipal Power is a member of the Northern California Power Agency (NCPA), a joint powers agency of the State of California. NCPA owns and operates five simple -cycle combustion turbine electricity generating units: two in Alameda, two in Roseville, and one in Lodi, each with a capacity of approximately 24.5 megawatts (MW). Together, these units constitute the NCPA Combustion Turbine Project Number One (CT1). Alameda Municipal Power (AMP) is a 13.092% participant in the CT1 project, which means that it has rights to and receives its share of the output of the generating units. The 123 MW project came online in 1985 -1986 and AMP's share of the project is 16.05 MW. This agenda item represents the final step for transferring ownership of the two electricity generating units located in Roseville to the City of Roseville. As more fully described below, this transfer of ownership process was initiated nearly three years ago when the Alameda Public Utilities Board approved the Agreement for Layoff and sale of Project Entitlement Percentage Relating to the combustion Turbine Project Number One (Layoff and sale Agreement) at its September 17, 2007 public meeting. The agreement was subsequently approved by the city council on September 18, 2007. The Layoff and sale Agreement set in motion a two-phase process for the city of Roseville to obtain outright ownership and title to the two Roseville generating units and 0.00% entitlement rights to the other three CT1 units, the ones in Alameda and Lodi. Phase I of the transfer process was initiated in 2007 upon execution of the Layoff and Sale Agreement. Phase 11 is triggered when the outstanding bonds sold for the project are retired on August 16, 2010. To complete Phase 11 and finalize the transfer of the two Roseville units to the city of Roseville, the First Amendment to Ag re. e m e n.t far 1 Honorable Mayor and September 7, 2010 Members of the City Council Page 2 of 3 Construction, Operation and Financing of Combustion Turbine Project Number One (the CT1 Third Phase Agreement) will need to be approved by the local governing boards of each of the CT1 project owners. Additionally, each project participant will need to approve and execute a Quitclaim Deed Form. The Public Utilities Board approved both the First Amendment to the CT1 Third Phase Agreement and the Quitclaim Deed Form at its August 10, 2010 public meeting. DISCUSSION In 2005, the City of Roseville joined the Sacramento Municipal Utility District (SMUD)Mestern Area Power Administration (western) electric control area, and the two combustion turbine units located in Roseville became subject to the SMUD] Western electric system operating rules. These rules are different than the rules applicable to the remaining three CT1 units located in Alameda and Lodi, which continue to be subject to the electric system operating rules of the California Independent System Operator (CAISO). Due to this difference in operating rules, the two Roseville generating units no longer provide maximum value to the owners whose service areas reside in the CAISO control area. Likewise, the Alameda and Lodi generating units no longer provide maximum value to the City of Roseville whose service territory is located in the SII1IUD/Western control area. This misalignment between ownership shares and project value led to an opportunity to realign ownership in the individual units for the mutual benefit of all project owners, including Alameda. Approval and execution of both the First Amendment of the CT1 Third Phase Agreement and the Quitclaim Deed Form by the remaining CT 1 participants will complete the transfer of ownership of the two Roseville generating units to the City of Roseville. The transfer will officially remove these two units from the NCPA CT1 project definition. Going forward the CT1 project will consist of two units in Alameda and one unit in Lodi, with a combined generating capacity of 74 MW. With the removal of the'two Roseville units from CT1, AIVIP's percentage share of the Alameda and Lodi units will increase from 13.002% to 21.820 Although AMP's project percentage share increases, its resulting generating capacity entitlement remains constant at 10.05 MW. This is because under the new arrangement, the CT1 project capacity decreases from approximately 123 MW (with five units) to 74 MW (with three units). FINANCIAL I III PACT There is no new direct cost associated with finalizing the transfer of the two Roseville generating units to the City of Roseville. Honorable Mayor and September 7, 2010 Members of the city council Page 3 of 3 RECOMMENDATION 1. Ratify the Public Utility Board's approval of the First Amendment for Construction, Operation and Financing of combustion Turbine Project Number One; 2. Ratify the Public Utility Board's approval of the Quitclaim Deed Form for the Roseville Combustion Turbine Units; 3. Authorize the General Manager of Alameda Municipal Power to execute the First Amendment for construction, Operation and Financing of combustion Turbine Project Number One; and 4. Authorize the Mayor to execute the Quitclaim Deed Form. Respectfully submitted, Z5 55 Girish Balachandran General Manager Exhibits 1 First Amendment to Agreement for construction, Operation and Financing of Combustion Turbine Project Number one 2. Quitclaim Deed Form to be approved and signed by Alameda cc: Public Utilities Board MRST AMEN--.f)iM.'F-,,NT TO AGREEMENT FOR CONSTRUCTION� OPERXHON ANtD F1NikNC1N;,G OF COMBUSTION TURBINF,'PROJEWT NWIL11BER ONE I 'b and amon N,0WFf1L?"RN CALWORNIA POWE-`R AGF-',NCY and CITY OF AL-/AiMEDA CITY OF BIGGS CITY 0144 GR-TDLEY CITY OF HEALDSBURG CrfY OF LDDI CITY OF LOMPOC CITY OF ROSr-WIT-11 CFrY OF SANTA CLARA CrfY OFUKJAH PLUMAS-SMiRRA RUR-AL,,E1,,fi,,CTR1C COOPFRATIV-Ci, Cit Council Exhibit 1 to Report Re: A Item #4-J 09-07-10 FIRST AMENDMENT TO AGREEMENT F C ONSTRUC 11 O-N, OPERATION ri, moncr NUAIBER ONE AND YINANCING OF COMRUSTION TURBEN This First tAjuendm, e to A "First Acne ndrnent") is niado b and between ffic Nbrth= CaEfornia Power A a joint powers a of the State of M 7NM ridle Healdsbur Lodi, Caorrua ('PA'") and the Cities of Alame da, Bi G I Lompoc, Rose.--1,,-vi11c, Santa Glees, anal Ukiah, �md Plinnas-Sierra Rural.Electnic Cooperative, crmd WrFNESSETH: WHEREAS, each of the parties to this First Amendment, other than 'the City of W Bi ("'Biggs") and t- e. Cit of 0idle ("Gn'die is a part to that certain "A for C onstniction., Operation, and Financin of Combustion Tii:rbM'c Pr Nwnber 0110 dated as o f July 1, 1984 ("the A and therefore constitutes a "Project Partic' IP ant," within thVe, meanirl of section 1 (g) of the A and WHE REA S, in addition to the Pr 0J 'ectParucy'pants the A ent fiidicates that '-Furlock Irrigation District ('Turlock�') was intended to be a part to the A Turlock never exeented the A and i's not a Pro Participant, and WHER,E,AS, pursuant to the A CPA- has constructed and operated, ,md ion TLffbine Rr ect Nwn.ber O n e ("the CT I Prof cof continues to operate, Combusd oJ ho'C"It of relo cat ed near t c onsistili g of five (5) sepanate units, two (2) of wWch a- lZosewfle, Calif-ornia ("the Roseville CT Units"), two (2) of which are located in the Cit of Alameda, Califorin'a "fl i e,Al am. eda CT I. and one (1 of which. is located in thOw Cit of Lodi, California ("the; Lodi CTI Unit"); and W11EREAS, each of the pal to this First Amend other than NCPA, Bi and Gridle owns -cw nndivi'dedsears or "Project Entitlement Percenta of the capacit and of the ener produced b the CTI trot t pursuant to t e A Tien t, vvihlch Project E'ntit .em ent Percenta is specified in art appendix to the A and WI-TEREAS, the Roseville CT Urdt.s, Al.awwda CT I U, -nits, and Lodi CT Unit are owned and operated b NCPA as a sir project on behalf of -those parties. owlu-n a Pros En-t-itlement Pereent.a and the P-roject Entitlement Percenta are riot stated wA reference to an parfic* ular I 11nit and WHERE S, t ject Entitlement A -lie Cit of Lodi ("Lodi") presentl oNNrns a Pro Percenta of 34.780% and the Cit of Roseville ("Roseville"') presentl owns a Project Entitlement Percentage of 1, 3, 5 84% and WH1`�.'R1i,'AS, P"Oseville currentl la off 0.118% of t1rle Pro ect E-i,�ftiltl ern ent Percenta to Bi and 0.210% of the Pr 0 "ectEiit.'Itici-nentPereentaaetoGn'dley, J 9913135-3 HETRRAS, the parties have entered into a "Agreement for Layoff and Sale of Pro�ect Entitlement Percentage Re ling to Combustion Turbine r0Ject Number One dated as of September 2007 ("the Layoff and Sale Agreement"), which provides am oth er matter that M Phase On e of said agreement: a. Lodi will layoff 26.41 of th Project En Percentage o Roseville; Roseville will assign its layoff`s to Biggs End Gridley to Lodi., and Lodi will ayoff those arnounts to t hose cities, c. RmovilleW11.1 make cortain pa to Lodi. and d; TNCPA and the Project Participants will treat .R su e's Proje E:n dement :percentage, r. u�.fi the a� ft rn Lod' d'ng solely at the two Rosev e CTS. Urats, and Roseville will relinquish any claim to capacity, e nergy or o ther rights to the Alameda CTI Units and the Udi d CrI Unit and W AREAS, the 1,ayoff and Sale Agreement pr vides t ra Phase I'wo of said a greement will not commcnee t mfil bonds previously sold for the construction and financIng of the CTS. Project have bcen retired,-. and 'WHE S� the Layoff and Sale Agr mcnt provides ea a m on, g other tte °s, that in Pha 'Fwo of said gree ent: NCPA will transfer fee ownership of the Roseville T Units t Roseville; arid. b, That the A.greement will be amonded to provide that: u Units .t� The CTI Pr J ect no lo fficl ides the Roseville CT 'i Biggs w.id Gridley shallbecome signat to the Agreement, a nd Project Participants in the CTI Pro based gpon the Project Entitlement Percentages previously subject to la o ff to eni: Ili. Roseville shall cease t6 be asignatory to the Agreement, and shall no longer be deemed a Prof (l i ant; n 0 iv. f Percentage f� all Project Part Cipa is (i ncluding Biggs wid Gridley and excluding Roseville) a b adj m...p op ort E� t iont Percent tang into accoimtffie addition of Big g's and Gridley P roject rt pa s, the exclusion of Roseville as Proj Participant, the sale of the Roseville T Units to Rosevitle. 903135.3 IIJOW; THEREFORE, the ParUes hereto a as BoIlows: IN I, This First Ame shall be offeotive concurrentl upon the commencement of Phase Two of the La and S e A It shall be. of no force or effect prior to that time. 2 Section I e of the A is amended to read: "Pro means a pr cansis tin g of fluce (3 24­ma combustion tarbine g eneratin g 1HU'ts, located two (2.) nr is in the Cit of Alanieda, Califonlia. ("the Alanied-a CT I I JnIts"") and one. (1) unit in the Cit of Lodi, California (�'the Lodi CTI UDit"" I Appendix "A" of the A 'i's amended to Include the follow Ei Proi ect Entitlemont Percenta ,PIt0JE PA. R"_CICIP.-kNNI" PWIA T ENTITI-EMENT PEM CENT AGE. 21,820 Cit of Alanieda I Lit f Bi� 0.197 Cit of Gridle 0.350 100%, TOTAL 4. Bi and Gfidle are Project Partici pant s­-,'ind are added as parties to the A Roseville ls.,no lon a Project Pafticipant and is deleted as a parL -to the A f -Furlock, b reason of 'not havin ext".Guted the A is not a g ail y to the A and is not a Project Participant., 5- Exoept as othenvise P rovided In this 17irst Amendmcn the A shall remain in ffill force and effect, 6. Each si tO this .diet Amendment represents and warrmits that he or she has been dut authorized to enter into it b the g ovemin g board of the part oil whose behalf he orho has executed it. 993135-3 7. This First Amcndri'-mritma be executed in several cou-,rft all oi- an of w1iich sal be re for all purposes as one ori and shall con.stitute and be but ono mid the same instrummt. INWUNESS WHERJ_ '.O.F. each part has executed tbis First Amendinent with ffie approval of its g overnin g bod and has caused its official seal to be affixed, and NCPA has executed this First _Amend� ent with the anthorization of its Commission, NORTH FIZNL CALIFMMA POWER AGFNCY Approved as to form.- Its. Attest& CrFY OF AL. MEDA B Its: CITY OF BIGGS 'B y Its: CITY OF GRIDLEY B :Ifs CITY OF HEALDSB'URG B Its: ApproVed as to onn-, By:­_­_­­­11'1__'­­ Attest: ,tkpproved as to form.* .B Attest:r Approved as to fonn:, B Attest: 9931 ­3 CITY OF L ODI B y: -.w Its: CITY OF LOMPOC t; CFFY OF OS LLE,' BY: Its: CITY OF S_.lVNTA CLARA B r ,H...- It a. CITY OF Ti.: .H By: v.•, ....n.i......- r. -r.... ..........i....» i .tA-,.pprovcd as to fonm B: Att est: jkpPr ve as to form At tes t: Approved as -to -fonu$- R ww.........................W... r Attest Approved as'to b' By: .............e.....�.M.k Attest Approved a 'to form.- Attest 09313 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO NAME City Clerk MAILING City of Roseville ADDRESS 311 Vernon Street CITY, STATE Roseville, CA 95678 ZIP CODE Exempt from recording fees pursuant to Govt. Code 27383 (SPACE ABOVE THIS LINE RESERVED FOR RECORDER'S USE) QUITCLAIM DEED WHEREAS, on September 1, 2007, Northern California Power Agency, a joint powers agency of the State of California "NCPA the Cities of Alameda, Healdsburg, Lodi, Lompoc, Roseville, Santa Clara, Biggs, Gridley and Ukiah, and the Plumas- Sierra Rural Electric Cooperative entered into the Agreement for I_,ayoff and Sale of Proj ect Entitlement Percentage Relating to Combustion Turbine Project Number One (the "Agreement WHEREAS, under the Agreement, the parties agreed to transfer ownership of the two Roseville CT Units to the City of Roseville upon the commencement of Phase Two; WHEREAS, Phase Two has commenced and its interest in the Roseville CT Units to the City of Roseville. now wishes to quitclaim. Now, THEREFORE, FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the does hereby remise, release, and forever quitclaim to the City of Roseville, a municipal corporation, all right, title, and interest has or may have in the real property located in the City of Roseville, County of Placer, State of California, described in Exhibit "A" and depicted in Exhibit "B" attached hereto and made a part hereof. 1341963.2 City council Exhibit 2 to Report Re: Agenda Item #4 -J v9 -v7 -1v IN WITNESS WHEREOF, of 1 2010. By: Mayor Attest. By: City Clerk Approved as to Form: By: City Attorney has executed this Quitclaim Deed as of the SIGNA TURES MUST BE NOTARIZED 13 4 963.2 STATE OF CALIFORNIA ss COUNTY OF On before me, a personally appeared ,who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is /are subscribed to the within instrument and acknowledged to me that he /she /they executed the same in his /her /their authorized capacity(ies), and that by his /her /their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY of PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS any hand and official seal. Signature (Seal) 134 19 63. 2 THE LAND DESCRIBED HEREIN IS SITUATED IN THE STATE OF CALIFORNIA., COUNTY OF PLACER, UNINCORPORATED AREA, AND IS DESCRIBED AS FOLLOWS: PARCEL [ENE: ALL THAT PORTION OF THE SOUTHEAST ONE QUARTER OF SECTION S, TOWNSHIP 1 I NORTH, RANGE 6 EAST, M.D. B &M., DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE NORTHEASTERLY RIGHT -OF -WAY LINE OF THAT CERTAIN 75 FOOT- WIDE EASEMENT GRANTED TO PACIFIC GAS AND ELECTRIC COMPANY, RECORDED IN BOOK 738, AT PAGE 426, OFFICIAL RECORDS OF PLACER COUNTY, AND THE SOUTHERLY LIME OF THE SOUTHEAST ONE- QUARTER OF SAID SECTION 8, AS SAID SECTION LINE IS SHOWN ON THAT CERTAIN PARCEL MAP FILED IN BOOK 20 OF PARCEL MAP, AT PAGE 126, PLACER COUNTY RECORDS, SAID INTERSECTION BEARS SOUTH 89 DEGREES 28 MINUTES 12 SECONDS 'BEST 758.88 FEET FROM THE SOUTHEASTERLY CORNER OF SAID SECTION 8; THENCE, FROM SAID POINT OF BEGINNING, ALONG THE NORTHEASTERLY RIGHT -OF -WAY LINE OF SAID PACIFIC GAS AND ELECTRIC COMPANY EASEMENT, NORTH 48 DEGREES 04 MINUTES 37 SECONDS WEST 180.00 FEET; THENCE, NORTH 33 DEGREES 40 MINUTES 43 SECONDS EAST 373.56 FEET; THENCE, SOUTH 48 DEGREES 04 MINUTES 37 SECONDS EAST 233.61 FEET; THENCE, SOUTH 41 DEGREES 55 MINUTES 23 SECONDS NEST 370.00 FEET TO THE POINT OF BEGINNING. EXCEPTING THEREFROM ALL OIL, GAS, MINERALS, HYDROCARBONS AND KINDRED SUBSTANCES LYING BELOW A DEprl I OF 500 FEET, AS CONVEYED TO NATIONAL RESOURCES EQUITIES CORPORATION BY DEED RECORDED NOVEMBER. 10, 1969, IN BOOK 1269 [OFFICIAL RECORDS, AT PAGE 62, PLACER COUNTY RECORDS. APN: 017- 061 -037 PARCEL TWO: AN EASEMENT FOR INGRESS, EGRESS AND PUBLIC UTILITIES, OVER., UNDER AND ACROSS A STRIP OF LAND THE UNIFORM WIDTH OF THIRTY (30.00) FEET, SITUATE IN SECTION 8 AND SECTION 9, TOWNSHIP I 1 NORTH, RANGE 6 EAST, M.D.B.&M., THE CENTERLINE OF WHICH IS DESCRIBED AS FOLLOWS BEGINNING AT THE INTERSECTION OF THE CENTERLINE OF SUNSET BOULEVARD, A PUBLIC STREET, WITH THE WESTERLY BOUNDARY OF SUNSET BUSINESS PARK UNIT NO. 1 AS SHOWN ON THE OFFICIAL MAP THEREOF, FILED IN BOOK 9 OF PARCEL. MAPS, PAGE 25, PLACER COUNTY RECORDS, SAID 1341963.2 INTERSECTION BEARS NORTH 81 DEGREES 16 MINUTES 59 SECONDS WEST 55.73 FEET FROM THE INTERSECTION OF THE CENTERLINES OF DULUTH AVENUE AND SAID SUNSET BOULEVARD; THENCE, FROM SAID POINT OF BEGINNING AND ALONG THE WESTERLY EXTENSION OF THE CENTERLINE OF SAID SUNSET BOULEVARD, NORTHWESTERLY ALONG THE ARC OF A CURVE TO THE RIGHT, CONCAVE NORTHEASTERLY HAVING A RADIUS OF 4000.04 FEET AND BEING SUBTENDED BY A CHORD BEARING NORTH 74 DEGREES 40 MINUTES 41 SECONDS WEST 1417.48 FEET; THENCE, SOUTH 33 DEGREES 23 MINUTES 12 SECONDS WEST 444.92 FEET TO A POINT ON THE NORTHEASTERLY LINE OF THE PARCEL OF LAND DESCRIBED HEREIN AND THE POINT OF TERMINATION OF THE EASEMENT DESCRIBED HEREIN, SAID POINT BEARS SOUTH 48 DEGREES 04 MINUTES 37 SECONDS EAST 15.17 FEET FROM THE MOST NORTHERLY CORNER OF SAID PARCEL OF LAND. THE SIDELINES OF SAID STRIP OF LAND TO BE LENGTHENED OR SHORTENED TO TERMINATE IN THE NORTHEASTERLY LINE OF THE PARCEL OF LAND DESCRIBED HEREIN AND IN THE WESTERLY BOUNDARY OF SAID SUNSET BUSINESS PARIS. UNIT NO. 1. 1341963.2 r r. Schedule 34b 2 w u) vxn C C C C.0 b CC CD M CD M ADC oo oo ��r'�rV N►V s f 1 WCF1 1 ..a CD 0 ��a Q 0 •4 m Y .;i, 0 F• L S3T n .j W Q as I ct E -s� F Ln LM F Iry cr. CD 1 Vti 3 F C r 7 y c) EXECUTION COPY FF 0 n �v Q m w {.Q Ui I ...s r m 1341963.2 CITY OF ALAMEDA RESOLUTION NO. RATIFYING THE PUBLIC UTILITIES BOARD'S APPROVAL OF THE 0 U. FIRST AMENDMENT TO AGREEMENT FOR CONSTRUCTION, 0 C11) OPERATION AND FINANCING OF CUMBUSTION TURBINE PROJECT NUMBER ONE AND THE QUITCLAIM DEED FORM FOR THE M ROSEVILLE COMBUSTION TURBINE UNITS, AND AUTHORIZING THE GENERAL MANAGER OF ALAMEDA MUNICIPAL POWER TO EXECUTE THE FIRST AMENDMENT AND AUTHORIZING THE k N��, I MAYOR TO EXECUTE THE QUITCLAIM DEED FORM WHEREAS, the Cit of Alameda is a participant in the Northern California Power A (NCPA) Combustion Turbine Project Number One (CT1), which consists of five separate g eneratin g units each rated at approximatel 24.5 me located in Roseville (two units), Alameda (two units) and Lodi (one unit) and WHERES, Alameda's pro entitlement percenta as specified in the A for Construction, Operation and Financin of Combustion Turbine Project Number One (CT1 Third Phase A dated as of Jul 1, 1984, is 13.092%, which amounts to 16.05 me and WHEREAS, at its September 17, 2007, public meetin the .Alameda Public Utilities Board the Board approved the A for La and Sale of Project Entitlement Percenta Relatin to Combustion Turbine Project Number One (La and Sale A between NCPA and each of the pro participants and recommended Cit Council ratification; and WHEREAS, the La and Sale A provides for thetransfer of full ownership of the two Roseville CT1 units, alon with associated propert and e to the Cit of Roseville upon the retirement of the bonds for the project and further provides that the CT1 Third Phase Agreement shall be amended to.- (i) remove Roseville as a project participant and (ii) remove the two Roseville CT units from the project description and WHEREAS, at its September 18, 2007, public meetin the Alameda Cit Council approved the La and Sale A between NCPA and each of the project participants and WHEREAS the, NCPA participants in the CT1 pro includin Alameda deem the transfer of ownership to be mutuall beneficial g iven that Roseville's electric load and the two Roseville CTs are located the SMUD/Western electric control area, whereas the two Alameda CTs, the Lodi C and each of the other Resolution #4-J CC OM M� 9-7-10 cT1 project participants are located in the control area administered by the California Independent system operator; and WHEREAS, the bonds for the cT1 project were retired on August 10, 2010, which triggers the need to amend the CT1 Third Phase Agreement as part of the transfer of ownership process; and WHEREAS, in order to complete the transfer, each remaining cT1 project participant will need to sign a Quitclaim Deed Form to Roseville for the two Roseville CT units; and WHEREAS, upon completion of the transfer process, Alameda's entitlement percentage will increase from 13.092% to 21.821% though the resulting megawatt entitlement remains constant at 10.05 MW. NOV\/, THEREFORE, BE IT RESOLVED by the council of the city of Alameda that: 1. The council ratifies the Public Utilities Board's approval of the First Amendment to Agreement for construction, operation and Financing of combustion Turbine Project Number one and the Quitclaim Deed Form for the Roseville combustion Turbine Units. Z. The General Manager of Alameda Municipal Power is authorized to execute the First Amendment without material change. 3. The Mayor is authorized to execute the Quitclaim Deed Fora. 1, the undersigned, hereby certify that the foregoing Resolution was duly and regularly adopted and passed by the Council of the City of Alameda in a regular meeting assembled on the 7th day of September, 2010, by the following vote to wit: AYES NOES: ABSENT: ABSTENTIONS: IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the seal of said City this 8th day of September, 2010. Lara Weisiger, City Clerk City of Alameda CITY OF ALAMEDA Memorandum To: Honorable Mayor and Members of the City Council From: Ann Marie Gallant Interim city Manager Date: September 7, 2010 Re: Adopt a Resolution Appointing Mayor Johnson as the city's Delegate for Voting Purposes at the League of California cities Annual Business Meeting BACKGROUND The League of California cities Annual Business Meeting will be held on Friday, September 17, during the Annual conference. At the Annual Business Meeting, designated voting delegates will be asked to consider six resolutions introduced by the deadline of Friday, July 16. DISCUSSION On June 15, the city council designated Councilmernber Tarn as the city's voting delegate at the League conference, and Vice Mayor deHaan as the alternate. Although neither Councilmernber Tarn nor Vice Mayor del -iaan is able to attend the conference, Mayor Johnson will be attending and can serve as the city's voting delegate at the Annual Business fleeting. FINANCIAL IMPACT There is no financial impact from adoption of the resolution. RECOMMENDATION Adopt a resolution appointing Mayor Johnson as the city's delegate for voting purposes at the League of California cities Annual Business Meeting. Respectfully submitted, Lisa Goldman Deputy city manager City Council Report Re Agenda item #4-K CITY OF ALAMEDA RESOLUTION NO. i' A l APPOINTING MAYOR JOHNSON AS THE CITY'S DELEGATE FOR VOTING PURPOSES AT THE LEAGUE OF CALIFORNIA CITIES ANNUAL BUSINESS MEETING WHEREAS, on September 17, the League of California Cities will hold its Annual Business Meeting in San Diego, California, at the conclusion of the Annual Conference; and WHEREAS, on June 15, the City Council appointed Councilmember Tam as the City's toting delegate for the Annual Business Meeting and Vice Mayor deHaan as the alternate; and WHEREAS, neither Councilmember Tam nor Vice Mayor deHaan is able to attend the League conference; and WHEREAS, Mayor Johnson will be attending the conference. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Alameda appoints Mayor Johnson as the City's delegate for voting purposes at the League of California Cities Annual Business fleeting. I, the undersigned, hereby certify that the foregoing Resolution was duly and regularly adopted and passed by the Council of the City of Alameda in a regular meeting assembled on the 7th day of September, 2010, by the following vote to wit: AYES NOES: ABSENT: ABSTENTIONS: IN WITNESS, WHEREOF, I have hereunto set nay hand and affixed the seal of said City this 8th day of September, 2010. Lara Weisiger, City Clerk City of Alameda Resolution #4 -K CC 9-7-10 CITY O A D A. Memorandum To: Honorable Mayor and Members of the City Council From: Ann Marie Gallant Interim City Manager Date: September 7, 2010 Re: Adopt a Resolution Stating the City's Positions on the League of California Cities Annual Business Meeting Resolutions BACKGROUND The League of California Cities Annual Business fleeting will be held on Friday, September 17, during the Annual Conference. At the Annual Business Meeting, designated voting delegates will be asked to consider six resolutions (Exhibit 1) introduced by the deadline of Friday, July 16. DISCUSSION The six resolutions have been referred to various League policy committees, which will meet at the Annual Conference and take action on the resolutions under their purview. Since there is no opportunity for the City Council to review the resolutions after the policy committees meet and before the Annual Business Meeting, the City Council is being asked to take positions on the resolutions in advance of the policy committees' work. Resolution 1: The first resolution, which has been referred to the Administrative Services Committee, stems from the work of the League's Bylaws Review Committee, which met four times in early 2010 to review policies related to the nomination and election of League Board members and officers. The Bylaws Review Committee developed amendments to the League's bylaws that would encourage all segments of League membership to pursue leadership within the League to advance the goal that the League Board of Directors reflects the diverse ethnic and social. fabric of California. The amendments also clarify the League Board's nomination procedures and expand Board membership by four positions; and provide guidance to avoid conflicts of interest for Board and policy committee members with the expectation that decisions should be in the best overall interests of cities statewide. Recommendation: Staff recommends a yes vote on this resolution. Resolution 2: The second resolution, which has been referred to the Community Services Committee, encourages cities to adopt preventative measures to fight obesity City Council Report Rev Agenda Item ##4-L ®9 -07 -1 Honorable Mayor and September 7, 2010 Members of the City council Page 2 of 5 as set forth by First Lady Michelle obarna's Let's Move! campaign. The Let's Move! campaign has an ambitious national goal of solving the challenge of childhood obesity within a generation so that children born today will reach adulthood at a healthy weight. The campaign is combating the epidermic of childhood obesity through .a. comprehensive approach that involves providing schools, families and communities with .simple tools to help children be more active, eat better, and get healthy. The League resolution encourages cities to sign up as Let's Move! cities through the Department of Health and Human Services, and it encourages cities to help parents make healthy family choices; create healthy schools; provide access to healthy and affordable foods, and promote physical activity. Recommendation: Staff recommends a yes vote on this resolution. Resolution 3: The third resolution has been referred to the Environmental Quality Committee, the Housing, Community and Economic Development Committee, the Revenue and Taxation committee, and the Transportation, Communication and Public Works Committee. It was sponsored by the League's Desert /Mountain Division. The Desert /Mountain Division introduced the resolution after the League's Board of Directors deferred taking action at its April meeting on recommended revisions to the League's current positions on AB 32 and SB 375. AB 32 is California's 20.05 landmark act addressing climate change. The League Board took no position on AB 32 when it was enacted. It subsequently adopted policy that states, "the League. recognizes the need for immediate actions to mitigate the sources of greenhouse gas ern.issions," and it adopted principles urging cities to take local actions to address climate change. (An initiative to suspend AB 32 until California's unemployment reaches 5.5% for four consecutive quarters is on the November statewide ballot as Proposition 23.) SB 375 is the 2008 bill that: (1) requires metropolitan planning organizations. to .include sustainable communities strategies in their regional transportation plans forthe purpose of reducing greenhouse gas emissions, (2) aligns planning for transportation and housing, and (3) creates specified incentives for the implementation of the strategies. The League Board supported SB 375. The changes to the League's positions on AB 32 and SB 375 had been recommended by a special League Task Force after study of the issue by multiple League policy committees. The changes recommended that the League request specific actions by Gov. Arnold Schwarzenegger and the California Air Resources Board (ARB) to delay certain AB 32 deadlines and to suspend or delay the implementation of SB 375 until state funding is provided for the implementation of its mandates. The Board of Directors voted to defer action on the Task Force's recommendations and directed League staff to continue monitoring the actions of ARB that affect city governments and the economy in general. In deferring action on the recommendations, the Board determined that it was imperative that the League as an organization focus its efforts solely on its statewide ballot initiative, Proposition 22. Honorable Mayor and September 7, 2010 Members of the City Council Page 3 of 5 Recommendation: Given the City's commitment to environmental sustainability and smart growth, staff recommends that the City oppose this resolution. Resolution 4: Resolution 4, which has been referred to the Housing, Community and Economic Development Committee and the Revenue and Taxation Committee, was sponsored by Councilmernber Richard Alarcon from the City of Los Angeles and City Treasurer Karen Avilla from the City of Carson. In Larch, the City of Los Angeles adopted a Responsible Banking Initiative that requires financial institutions with which the City contracts to provide an annual "report card" detailing investment and lending activity within Los Angeles. The purpose of the report card is to determine which institutions the City does business with are in turn reinvesting in the City, by extending credit to residents and businesses, and. investing capital in communities and development projects. The report card will allow policy makers to reward institutions with above average rates of impact in the City,. while decreasing business with those institutions that do not recycle dollars back into. the local economy. The "reward" comes in the form of adding extra points to these institutions' applications during the City's RFP process for financial service providers. The resolution before the League encourages cities to require transparent, responsible banking from financial institutions receiving city funds. The resolution also asks that the League. of California Cities serve as a clearinghouse of information on the responsible banking initiatives adopted by municipalities across the country in order to help California cities interested in taking steps to increase transparent, responsible banking in their own communities. Recommendation: staff recommends a yes vote on this resolution, which provides positive incentives for financial institutions seeking to do business with municipalities. Resolution 5: Resolution 5, which has been referred to the Revenue and Taxation Committee, was. sponsored by the City of Santa Clarita in Southern California. According to the resolution, unfunded mandates imposed upon local governments, including cities, counties and special districts, by the state of California place a tremendous financial burden upon local governments. In addition, some. of the mandates placed upon local governments are the result of actions by Boards and Commissions not directly accountable to the electorate. The resolution therefore proposes that. The League of California Cities work with its member cities and other local government partners to identify solutions in which local governments must increase fees or taxes to meet state mandated requirements; and The League of California Cities petition the Governor of the State of California and Legislature of the State of California to suspend or eliminate certain state mandates until improvement of the national and California economy results in substantially Honorable Mayor and Members of the city council September 7, 2010 Page 4 of 5 lower statewide unemployment and fiscal solvency of the state of California and local governments; and The League of California cities work with Members of congress and the government of the United States to suspend or eliminate certain federal mandates, passed along to the states for implementation, until the improvement of the national economy results in substantially lower national unemployment and fiscal solvency of the United States, the State of California and local governments; and The League of California cities support legislation to suspend, eliminate, or otherwise modify the negative impacts of state mandates on local agencies, particularly in which a new local tax or fee or tax or fee increase is necessary to implement the mandate." The city of Alameda's adopted legislative program Includes the following General Principle: The city of Alameda opposes any legislation or regulations that preempt local authority, negatively affect the city's budget, or impose unfunded mandates on the city. The city supports the use of incentives to encourage local government action, rather than the imposition of mandates. While the first and last bullet points above reflect the city's position on unfunded mandates, the second and third bullet points are vague. More specificity is needed as to which mandates should be suspended or eliminated. As written, the resolution does not provide enough guidance to League staff and Board members who may be lobbying the Governor, state Legislature, or Members of congress. Moreover, some mandates have improved the health and safety of residents and have had a positive impact on the environment. Recommendation: staff recommends the city support the resolution only if it is modified to eliminate the second and third bullet points. Resolution 6: Resolution 0, which was sponsored by the city of Elk Grove, has been referred to the Transportation, Community and Public Works committee. The resolution asks that the League of California cities encourage cities to promote safe driving across California and the education of the general public about the dangers of texting while driving. In 2008, the Governor signed into law a measure, SB 28, which prohibits any person from driving a motor vehicle while using an electronic wireless communications device to write, send, or read a text -based communication. SB 28 complements an existing law that Governor Schwarzenegger signed in 2000 requiring motorists to use hands -free devices while talking on a mobile phone when driving a motor vehicle. Recommendation: Staff recommends a yes vote on this resolution, which is intended to promote the safety of drivers as well as pedestrians and cyclists. Honorable Ma and Members of the Cit Council FINANCIAL IMPACT There is no financial impact from adoption of the resolution. RECOMMENDATION September 7, 2010 Pa 5 of 5 Adopt a resolution statin the cit positions on the Lea of California Cities Annual Business Meetin resolutions. Respectfull submitted, Lisa Goldman Deput Cit Mana Exhibit: 1. Annual Conference Resolutions Packet on file in the Cit Clerk's Office CITY OFALAMEDA RESOLUTION NO. STATING THE CITY'S POSITIONS ON THE LEAGUE OF CALIFORNIA CITIES ANNUAL BUSINESS MEETING RESOLUTIONS 0 WHEREAS, on September 17, 2010, the League of California cities will p hold its Annual Business Meeting in San Diego, California, at the conclusion of Conference and 2 the Annual Co WHEREAS, six resolutions have been introduced for consideration by the League's membership and referred to the appropriate League policy committees; and WHEREAS, each city's voting delegate will be asked to cast a vote for or against the various resolutions; and WHEREAS, staff recommends that the city support the following resolutions: 1) a resolution relating to amending the League. Bylaws; 2} a resolution relating to the National Let's Move campaign; 3) a resolution relating to responsible banking; 4) a resolution relating to enhancing public safety while driving a motor vehicle; and WHEREAS, staff recommends the city support the resolution related to unfunded mandates only if it is modified to remove the vague language; and WHEREAS, staff recommends the city oppose the resolution relating to the League Board of Director's decision to defer action on AB 32 and SB 375. Novo, THEREFORE, BE IT RESOLVED, that the city council of the city of Alameda adopts the positions stated above on the League of California cities Annual Business meeting resolutions. Resolution #4 -L CC 9-7-10 1, the undersigned, hereby certify that the foregoing Resolution was duly and regularly adopted and passed by the council of the city of Alameda in a regular meeting assembled on the 7th day of September, 2010 by the following vote to wit: AYES NOES: ABSENT: ABSTENTIONS: IN WITNESS, WHEREOF, I have hereunto set nay hand and affixed the seal of said city this 8th day of September, 2010. Lara Weisiger, City Clerk City of Alameda 2 CITY OF ALAMEDA RESOLUTION NO. APPOINTING MADELINE DEATON AS A MEMBER OF TIME PUBLIC UTILITIES BOARD BE IT RESOLVED b the Council of the City of Alameda that y y pursuant to p the provisions of Article x of the charter of the City of Alameda, and upon tt_ F 1� nomination of the Mayor, MADELINE DEATON is hereby appointed to the office of r member of the Public utilities Board of the city of Alameda for the term commencing September 7, 2010, and expiring on June 30, 2014, and to serve until her successor is appointed and is qualified. I, the undersigned hereby certify that the foregoing Resolution was duly and regularly adopted and passed b the council of the City of Alameda in regular meeting assembled on the 7 day of September, 2010, by the following vote to wit AYES: NOES: ABSENT: ABSTENTIONS: IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the official sea[ of said city this 8th day of September, 20 10. Lara Weisiger, city clerk City of Alameda Resol ution #6-A CC 9 -7 -10 CITY of ALAM EDA Memorandum To: Honorable Mayor and Members of the City council From: Ann Marie Gallant Interim city Manager Date: September 7, 2010 Re: Pursue Activation of the city of Alameda's Participation in the city of Oakland's Foreign Trade Zone #56 in Response to Appropriate Business Opportunities BACKGROUND The United States Department of Commerce (DOC) designates Foreign Trade Zones (FTZs) at sites in or near a U.S. Customs port of entry. Goods can be brought into an FTZ without formal customs entry or without incurring customs duties or excise taxes as long as the goods are not subsequently imported into the United States. FTZs are intended to promote U.S. participation in trade and commerce by eliminating or reducing the unintended costs or obstacles associated with U.S. trade laws, and encourages jobs that might normally be shifted to a foreign country, to remain in the U.S. Activation and operation of an FTZ is under the legal authority of the DOC's FTZ Board and the U.S. Customs Service. Given the recent expansion of the North American Free Trade Agreement (NAFTA), FTZs only apply to non -NAFTA nations. As a non -NAFTA country, businesses from China pose a particularly competitive opportunity for FTZs. An FTZ can be designated at one or multiple sites, a single building, all or a portion of an industrial park, at a deepwater port, or within an international airport. General purpose FTZs are commonly created and managed by one entity and shared by several different companies. These are usually FTZs focused on distribution and repackaging activities, not manufacturing. When a firm intends to utilize its own plant or cannot be accommodated within an existing Zone, It subzone" status may be granted to the site. As of January 1999 there were 234 FTZs in the U.S. FTZs involve three parties: a grantee, operator and user. The grantee, often a public, quasi public, or nonprofit entity, holds a grant from the FTZ Board of the DOC authorizing the activation of the FTZ. The operator of an FTZ operates the FTZ on a day today basis and is responsible for record keeping and managing the customs process. The user is the company or companies that use the FTZ. City Council Agenda Item ##6m13 09 -07,10 Honorable Mayor and Members of the city council DISCUSSION September 7, 2010 Page 2of2 The city of Oakland is a grantee of a general purpose FTZ #56. It also has two related subzones, each consisting of a single industrial company acting as its own operator and user. The general- purpose FTZ #56 in Oakland has authority for 500,000 square feet, of which only 100,000 square feet is currently being used. The general purpose FTZ is operated by Matson Global Distribution services. The city of Alameda is already considered part of the city of Oakland's FTZ #56 because it is part of the Oakland Port of Entry. The city's participation in FTZ #56 could be activated through completion of a relatively simple application to the Doc in cooperation with the City of Oakland. An application for activation of the City's participation in FTZ #56 would be site specific and not necessary until a FTZ business was identified and a specific location for a particular business within the city were selected Should the city elect to activate its participation in FTZ #56, it could represent an important tool for attracting international companies to the city, especially those from China. These business opportunities would create new jobs and spur business investment and activity in the city, potentially resulting in the long -term reuse of, and reinvestment in, existing structures at the former Naval Air station Alameda and in construction of new facilities at other locations within the city. The city has already been approached preliminarily by businesses from China interested in activating an FTZ in the city. FINANCIAL IMPACT There is no financial impact related to this action. RECOMMENDATION Pursue activation of the city of Alameda's participation in the city of Oakland's FTZ #56 in response to appropriate business opportunities. LAL:dc UNAPPROVED MINUTES OF THE REGULAR ALAMEDA PUBLIC FINANCING AUTHORITY (APFA) TUESDAY- -JULY 20 2010- -7:01 P.M. Chair Johnson convened the meeting at 2:12 a.m. Roil Cali Present: Authority Members deHaan, Gilmore, Matarrese, Tara and chair Johnson 5. Absent: None. KAIN I ITF.q 10- Minutes of the Special Joint city Council, Alameda Public Financing Authority, Alameda Reuse and Redevelopment Authority, and community Improvement Commission Meeting Held on June 24, 2010; and the Regular Alameda Public Financing Authority Meetings Held on July 6, 2010 and July 7, 2010. Approved. Board Member Matarrese moved approval of the minutes. Board Member deHaan seconded the motion, which carried by unanimous voice vote 5. Agenda Item Resolution No. 10 -22, "Authorizing the Issuance and Sale of Revenue Bonds to Refinance Installment Payment obligations of Alameda Municipal Power and Approving Related Documents and Actions." Adopted. Board Member deHaan moved adoption of the resolution. Board Member Matarrese seconded the motion, which carried by unanimous voice vote —5. Oral Communications None. Board Communications None. Ad�ournrnent There being no further business, Chair Johnson adjourned the meeting at 2:13 a.m. Respectfully submitted, Lara Weisiger Secretary The agenda for this meeting was posted in accordance with the Brown Act. Regular Meeting Alameda Public Financing Authority July 20, 2010 UNAPPROVED MINUTES OF THE SPECIAL JOINT CITY COUNCIL ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY (ARRA) AND COMMUNITY IMPROVEMENT COMMISSION CIC MEETING TUESDAY- -JULY 20 2010- -6:59 P.M. Mayor 1 Chair Johnson convened the meeting at 7 :29 p.m. ROLL CALL Present: Councilmembers 1 Board Members Commissioners deHaan, Gilmore, Matarrese, Tara and Mayor /Chair Johnson —5. Absent: None. 10- CCIAR.RA110- CIC Minutes of the Special Joint City Council, ARRA, CIC Meeting Held on June 19, 2010; the Special Joint City Council, Alameda Public Financing Authority, ARRA, and CIC Meeting Held on June 24, 2010; and the Special Joint CIC and Housing Authority Board of Commissioners Meeting Held on July 6, 2010. Approved. Councilmembers /Board Members /Commissioners Gilmore and Tam stated that they would abstain from voting on the June 19 minutes. Councilmember /Board Member /Commissioner Tamp provided corrections to page 14 of the June 24 meeting. Vice Mayor /Board Member /Commissioner deHaan moved approval of the minutes. Councilmernber /Board Member /Commissioner Matarrese seconded the motion. On the call for the question for the June 19 meeting, the motion carried by the following voice vote: Ayes: Councilrnernbers /Board Members /Commissioners deHaan and Matarrese and Mayor /Chair Johnson 3. Abstentions: Councilmembers /Board Members /Commissioners Gilmore and Tarn 2. Can the call for the question for the June 24 and July 6 th meetings, the motion carried by unanimous voice vote 5. Special Joint Meeting Alameda City Council, Alameda Reuse and Redevelopment Authority, and Community Improvement Commission July 20, 2010 10- CCIARRAI10- CIC Resolution No. Entitlement Application (MOEA), Including Amendment, Master Plan, and Development Point LLC. (PLN 10- 0012)." Adopted. 14472 "Denying a Modified a General Plan Amendment Agreement Proposed by SCC Optional Zoning Alameda The Deputy City Manager— Development Services gave a Power Point presentation. Stan Brown, SunCal; Nick Cosla, SunCal; Jim Daisa, Kimley -Horn and Associates; gave a Power Point presentation; Phil Tagiarni and Skip Miller gave brief presentations. Mr. Brown stated page 2 of the staff report states: "Alameda did not want to. be committed beyond July 20, 2010 to development entities that prove incapable of utilizing the property SunCal has submitted a 2010 Alameda Point project and staff has deemed the submittal complete; SunCal has funded and the City has commenced the Environmental Impact Report (EIR), including retention of the EIR technical consultants; the City and SunCal have also had initial scoping meetings and completed the project description; this week, $x'20,000 has been deposited into the Escrow Account; the money covers City staff salaries, cost of the EIR, and other expenses associated with redevelopment; the application will be ready to be considered by the Planning Board and Council in the next fifteen to eighteen months; now is the time to complete.. the process; the draft resolution sets out the reasons why SunCal should be removed from the project and the application denied; clause A -4 states: "The modified oEA provides minimal certainly about how the property will ultimately be developed; many specifics about number, location, and density of residential units, amount, and type of commercial development, site design, the transportation system, and sustainabilty measures have not been provided the statement is not true; the plan is highly detailed, sophisticated plan use documents which include an exhaustive engineering analysis, transportation planning, adaptive reuse planning, commitment to the LEED neighborhood development goal, and green building standards; sustainability, design, unit layouts, and highly detailed land plans are before Council tonight; Clause A -5 states: 'There. is also substantial uncertainly regarding the relative timing of development.. of. the residential and commercial components of the project again, the statement is not true; detailed cash flogs that identify the timing of the project and project elements have been dome and shared with the City; the cash flows are part of the Disposition.and Development Agreement (DDA) and are included in the business plan; a detailed land plan clearly sets forth timing and how residential, commercial, parks, and transportation routes carne into the project; Clause A -7: states "a balance needs to be. struck between flexibility and provision of meaningful commitments to the community that he agrees the statement is correct; unfortunately, in all the weekly meetings he has attended, this is the first time he has heard that SunCal's plan is inadequate because. a balance has not been struck; an open, honest dialogue is part of the entitlement process that occurs as the project is made ready for public hearings; that is why the action is premature; Special Joint Meeting Alameda City Council, Alameda Reuse and 2 Redevelopment Authority, and Community Improvement Commission July 20, 2010 Clause C -4 indicates the economic development strategy for the development of commercial businesses within Alameda Point is a critical flaw in the Modified optional Entitlement Agreement (MOEA); SunCal agrees with the City that there is a well developed strategy for development of commercial businesses within Alameda Point; SunCal has advised staff several months ago of SunCal's retention of RCO, SunCal's child lesser company, to conduct a study and provide a Phase 1 report; however, at no time, until he read the staff report and resolution, has there been any indication that failure to include such a report would be a critical flaw in the 2010 Alameda Point project; staff found the application to be complete; Clause C addresses transportation; SunCal's transportation plan is robust; Clause D addresses the Biological opinion (B.0); over the past several years, SunCal has worked closely with staff, consultants, the Navy, and Veterans' Affair Department to review and amend the existing BO; the results of the process will determine appropriate mitigation of land uses adjacent. to the property; staff has been engaged in the process; full disclosure has been .provided with staff's concurrence; SunCal agrees that the 2010 Alameda Point project and. 2008 Master Plan are very similar in design; the 2008 Master Plan was submitted to the .Navy along with the joint project pro forma as the City's and SCC Alameda joint subrn .of 2008; the joint pro forma was submitted after exhaustive review by the City and SCC Alameda; the joint pro forma was prepared by Economic Planning Systems (EPS), the City's consultant; the City, SCC Alameda, and EPS reviewed and .discussed with the Navy the joint pro forma submitted for the first quarter of 2009, at which point.the City cut off any further contact between SCC Alameda and the Navy; in 2009, the City and EPS agreed with SunCal's plan, and a joint pro forma and plan were. submitted to the Navy; a year later, EPS and City staff claim that SunCal's assumptions are overly optimistic; in 2009, EPS and City staff agreed with SunCal's revenue assumptions. and now do not; inquired ghat has changed; stated in 2009, EPS and City staff agreed with SunCal's home construction costs and now do not; inquired what has changed; in 2009, City staff agreed with SunCal's revenue and cost escalation assumptions and now. do not; inquired ghat has changed; stated in 2009, EPS and City staff agreed. with SunCal's premium analysis and now do not; the change between the current and joint pro forma is that the sale has increased to $108,500,000 at the Navy's request; said amount is what the Navy wants and the amount that SunCal is committed to pay; that he is sure the City's consultants will point to the recession's impacts on the development industry; the recession started in early 2007 and was already a year old when the joint pro forma was prepared and submitted; the Lehman Brothers' bankruptcy occurred in September 2008, well before the joint pro forma was submitted to the Navy; the joint pro forma assumptions and 2010 Alameda Point project pro forma were reasonable and appropriate; the development will take twenty years to development; having the project pro forma reflect concerted, long -term trends is important; EPS and City staff agreed with assumptions that were appropriate and concerted in 2009; assumptions are still appropriate today; SunCal knows that serving government is a lot of work; the lave and the Exclusive Negotiating Agreement (ENA) specify a very critical Special Joint [Meeting Alameda City Council, Alameda Reuse and 8 Redevelopment Authority, and Community Improvement Commission July 20, 2010 process that has repeatedly been ignored and violated; the decision is Simple let the process continue. Mr. Miller stated that he is new [to the project]; he is a litigation lawyer; he read the ENA and he respectfully submits that terminating the ENA is premature; a vote should not take place today and would not be legally valid; the judgment is rushed; ENA's are legally enforceable in California; SunCal has spent almost four years and close to $15 million pursuant to the Agreement and relies on the Agreement; SunCal is entitled to the completion of a good faith negotiation process; the issue is about due process of law, fundamental fairness and providing an opportunity; the project is very important to the City; ultimately, Council would have the vote but the vote should not occur until the process has been completed; that he strongly believes the process has been set up; tonight's vote would not be legal or valid; that he wrote a letter last week saying that the term sheet with the Navy was frustrating because SunCal could not get cooperation from the City; City officials recognize that he is right; the milestone was prevented; the next step, after admitting that the milestone with the Navy was not met, has been to have a vote on the whole project; the E I R. and California Environmental Qualit y Act (CEQA) process is not complete; the matter has not gone through the Planning Board process; SunCal has bargained for a full, fair hearing on the development; SunCal has invested a tremendous amount of time and money; SunCal requests that the matter not be voted on today; the process should run its course; otherwise, SunCal will .be in court to enforce its rights under the Agreement seeking very substantial damages, if necessary; the choice is not his; SunCal will enforce its rights under the Agreement, if necessary; SunCal is entitled to the benefit of the deal and is not getting .any benefit by virtue of voting the project down tonight; the vote is premature; requested that .SunCal and SCC Alameda have the benefit of a full CEQA process and let everything a out; gp y the former Naval Base needs to be redeveloped; SunCal has done a lot of big land developments over the years; that he has represented SunCal for se,veral .years; he is hearing that one City official, who carne on the scene about a year ago, has voiced an opinion that having a public project, instead of a private developer, would be better; SunCal made a deal in the ENA to complete the full process, go the full gray, not to be truncated, and stopped in midstream; the decision is up to Council; Sun+Ca.l is entitled to go to the end of the road and should not be co -opted or prevented by somebody who wants to do things differently; the matter will be the subject of litigation, lawsuits, and claims if the resolution is adopted. Pro onents (In Favor of Staff Recommendation Denying MOEA Former Councilmember Barbara Thomas, Alameda; Jean Noroian, Alameda; Ashley Jones, Alameda; Robbie Delio, Alameda; Dorothy Freeman, Alameda; Bob Sikora, Alameda; Birgitt Evans, Alameda; Jean Sweeney, Alameda; Jim Sweeney, Alameda; Reyla Graber, Alameda; Eugenie Thomson, Alameda; Nancy Gordon, Alameda; Jay Ingram, Alameda; Mary Fetherolf, Alameda; Gretchen Lipow, Alameda (submitted document); Special Joint [Meeting Alameda City Council, Alameda Reuse and 4 Redevelopment Authority, and Community Improvement Commission July 20, 2010 Rosemary McNally, Alameda; Chuck Millar, Alameda; Former Councilmerrber Lil Arnerich, Alameda; Dave Needle, Alameda; Robb Ratto, Park Street Business Association; Michael Karayasales, Alameda; Karen Miller, Alameda; Karen Bey, Alameda; Janet Davis, Alameda; Gail deHaan, Alameda; Noel Folsom, Alameda; Adam Gillitt, Alameda; Alan Tubs, Alameda; Kevin Frederick, Alameda. Opponents Not In Favor of Staff Recommendation Denying MOEA Former Councilmember Tony Daysog, Alameda; Andreas Kluever, Building Trades Council; Andre Slivka, Carpenters Union Alameda County and Alameda Resident; Jon Spangler, Alameda; Richard Tren, ULl Swingrton Builders; Lois Pryor, Alameda; Irwin Huebsch, Alameda and Local 2850; Wilhelminia Slater, Alameda; Nischit Hegde, Local 2850; Auram Gurarye, Berkeley; Jeremy Madsen, Greenbelt Alliance and Alameda resident (submitted comments); Diane Lichtenstein, Alameda; Nit Rana, Alameda resident and Painters Local 3; Fernando Estrada, Laborers Union 304; Kathy Mo.ehring, Alameda; Honora Murphy, Alameda; DG Blackburn; Sally Fauilhaber, Alameda; Mike .Henneberry, Alameda and Local 5; Mark Chandler, veterans Administration and Alameda; Amy Freilich, SLL Alameda Point LLC (submitted letter); Carl Chan, Alameda; William Smith, Sierra Club and Reneged Hope; Bruce Knopf, Alameda. Neutral Irma Garcia Sinclair, Alameda. Mayor /Chair Johnson called a recess at 11:03 p.m. and reconvened the meeting at 11:32 p.m. Vice Mayor /Board Member /Commissioner deHaan stated SunCal wants to.retain only certain [historic]buildings, which is not want the Navy is recommending; removing the buildings would remove close to $2 million of lease revenue; the. Sports Complex became SunCal's centerpiece and is almost identical to the one built in 1997; the original study shows ghat type of resources would be needed; Council had the wisdom to put use of union labor in the Request for Proposal (RFP); Council is not anti union in any gay; long terra jobs should considered, not short -term jobs; traffic impact has always been a major concern; SunCal has not brought a consultant on board until five weeks ago; the community is brighter now and has made it loud and clear that it understands the process, desires, and needs; that he had been supportive of SunCal; later, he realized that he might be over his head; SunCal insulted hire by offering two tickets to the warriors playoff; staff and the community has gelled and has come a long gay. 10- CC /ARRA/ 10- CIC Councilmember /Board Member/Corn miss loner Matarrese moved approval of continuing the meeting past 12:00 midnight. Special Joint Meeting Alameda City Council, Alameda Reuse and 5 Redevelopment Authority, and Community Improvement Commission July 20, 2010 Councilmember /Board Member /Commissioner Gilmore seconded the motion, which carried by unanimous voice vote 5. Councilmember /Board Member /Commissioner Matarrese stated tonight's discussion has been good and spirited; the most important issue in the City is to maintain solvency; the next important issue is ghat to do with the future of one -third of .the island that still belongs to the Navy; that he sees the same flaws in the MOEA as..in the project Development Agreement (DA), Charter amendment, and General Plan Agreement change in Measure B; he would be willing to move forward if he thought an extension would provide some hope that issues could be resolved and there would be a downscaled project that would fit Alameda and be solvent; however, he does not see such a thing; that he does not have any faith the City will see anything carne out of the ground or jobs forthcoming within a reasonable amount of time; concurred with Vice Mayor /Board Member /Commissioner deF aan regarding the project labor agreement always being a condition of the project and always being a future condition; SunCal took three years to get on board regarding the matter; the fit is not good; that he would.like the City to go forward unencumbered; the BNA expires today because all mandatory milestone have not been met; the City has a chance to go forward and take a different direction that fits the times. Councilmember /Board Member /Commissioner Gilmore thanked everyone for the time, energy, effort, and passion regarding the issue; stated former Councilmember Arnerich stated that the decision is monumental for the City; ensuring that homework and due diligence is done is important; that she can satisfy herself as she gets ready.to take. the vote; many of the MOEA problems come down to financing; questioned when solid financial assurance would be provided and whether the assurance would be in writing; stated the City received a last, best, and final offer from SunCal last week.which she presumes has financial terms that could have some bearing on the matter; that s he has not seen the document, a staff report analyzing the document, or a staff recommendation regarding the document; financial assurances seem to have a hole on both sides. Mr. Brown responded this week, SunCal made another deposit to escrow; SunCal has never missed a payment; SunCal has spent a lot of time reviewing the DDA's terms and elements with City staff; the DDA provides a mechanism to ensure financial assurances are set forth prior to each stage of close of escrow so that the City would be assured that the money to acquire the property and develop the property would be available. to fully develop each phase of the property; said assurances are not in the last, best, final offer. The Deputy City Manager Development services stated SunCal's last, best, and final Special Joint meeting Alameda City Council, Alameda Reuse and 6 Redevelopment Authority, and Community Improvement Commission July 20, 2010 offer was delivered on July 15, 2010 after 6:00 p.m.; the offer was on file in the City Clerk's office by 3:00 p.m. the following day; the offer was reviewed over the weekend; nothing in the last, best and final offer changes staff's recommendation; inquired whether Councilmembers /Board Members /Commissioners want to focus on financial issues. Councilrnember /Board Member /Commissioner Gilmore responded in the affirmative; stated that she understands the timing but is uncomfortable with not having a chance to review the offer and ask questions; the public has not been able to review and digest the offer. The Deputy City Manager Development Services stated staff requested that the financing plan be attached to the DDA, including the pro forma; the pro forma submitted with the last, best and. final offer did not include the financing plan; the financing plan would be due before the close of Phase 1. Councilme nber /Board Member /Commissioner Gilmore inquired whether SunCal has made promises to pay without a document showing how payment would be made. The Deputy City Manager Development Services responded in the affirmative; stated the pro forma was the same as the pro forma attached to previous staff reports; Section 7.8 contains the financial assurances of the last, best, and final offer; staff wants to have financial assurances up front; SunCal has provided financial assurances that cover the period of time from the execution of the DDA up until the close of Phase 1; staff wants to ensure that SunCal has enough money to get through the project, not just the development period. Councilmember /Board Member/Commissioner Gilmore inquired how terms would be written to prevent land banking. The Deputy City Manager Development Services responded terms would be written in the DDA; stated scheduled performances would be included in addition to default provisions; fiscal neutrality would be guaranteed; SunCal would provide a guarantee from an entity that has a net worth of $100 million; the guarantee would not be for project implementation; staff wants more than guarantees for. fiscal neutrality; staff does not think the financial assurances are sufficient. Councilmember /Board Member /Commissioner Gilmore inquired who would the shortfall fall on if the project is fiscally neutral and there are no guarantees for the rest of the project. The Deputy City Manager Development Services responded the project might not be Special Joint Meeting Alameda City Council, Alameda Reuse and 7 Redevelopment Authority, and Community Improvement Commission July 20, 2010 built; stated nothing guarantees that milestones would be met; scheduled performances are not backed up with strong commitments to meet performance milestones; Footnote 4 of the scheduled performances addresses a milestone for vertical development that would apply to each water parcel in a phase and sixty months after the day the developer would transfer a lot or parcel to a vertical builder; stated there is no date for when the transfer has to occur; an initial phase could be taken down and a subsequent phase could be taken down but nothing requires SunCal to finish the first phase or to develop a commercial phase; timelines build off of phantom dates; force majeure, things beyond control, provisions are very broadly worded and allow way too much flexibility; Section 17.8.1 discusses changes in laws which could be broadly interpreted; a provision addresses actions of public agencies that regulate land use, development, or the provision of services to Alameda Point property that prevents, prohibits, or delays either the construction funding or development of the Alameda Point project under the conveyance of the property to developers; the City is a public agency that regulates land use; some of the provisions undermine the whole concept of the scheduled performance. Councilmember /Board Member /Commissioner Gilmore inquired whether SunCal would need to abide by whatever is in the last, best, and final offer if the City decides to accept said offer, to which the Deputy City Manager Development Services responded in the affirmative. Councilmember /Board Member /Commissioner Gilmore inquired whether the offer would need to be accepted or rejected, and there would be no room for negotiations. The Deputy City Manager Development Services responded DDA negotiations would continue if the MOEA is not denied and Councilmembers /Board Members /Commissioners direct staff to move forward and negotiate with SunCal, Councilmernber /Board Member /Commissioner Gilmore inquired whether the offer is a take-it-or-leave-it offer for the City. The Deputy City Manager Development Services responded not if the City Continues with SunCal; stated Section 7.6.1 2 addresses modifications to development phasing requested by the developer; the developer wants to be able to request modifications to the phasing plan; Section 7.6.1 2 further states that the DDA would continue to give SunCal broad authority to change both the phasing and the context of any particular phase in response to new information, change in market conditions, improved technologies or techniques, new funding strategies, and opportunities; "new information" is so broad; staff thinks that the City's ability to enforce certain commitments is underminded by the provisions. Special Joint Meeting Alameda City Council, Alameda Reuse and 8 Redevelopment Authority, and Community Improvement Commission July 20, 2010 The Interim City Manager /Executive Director stated there are very specific City expectations with respect to guarantees. The Deputy City Manager Development Services stated the DDA has hurdle rates whereby SunCal wants to be able to meet a 25% Internal Return Rate (IRR) and 25% profit; the CIC would not be participating in the profits until SunCal meets both the 25% I RR and 25% profit. The City Attorney /Legal Counsel stated Section 7.5.2.3.1 requires the CIC to make up the difference in the event that SunCal does not receive the 25% IRR. Mayor /Chair Johnson inquired whether the last, best, and final offer is a public document, to which the Deputy City Manager Development Services responded in the affirmative. Jim Musbach, EPS, stated five determination dates have been established; any cash flow over the 25% goes to the City; the City would get 30% of the cash flow; half would go to a reconciliation account; at the fifth reconciliation date, the City would have to remit money from the account to make SunCal whole at 25 the City would have a 15% participation subordinate to a 25% return with some upside potential to get to 30 Councilmember /Board Member /Commissioner Gilmore inquired whether the City would be corning up with new cash or cash would be coming out of the project, to which Mr. Musbach responded cash would come out of the project. Councilmember /Board Member /Commissioner Tam inquired ghat staff would like to see in the DDA. The Deputy City Manager Development Services responded staff would recommend starting to participate sooner than both of the 25% hurdle rates. Councilmember /Board Me mber /Commissioner Tam inquired whether said information has been communicated with SunCal. The Deputy City Manager— Development Services responded staff has not had detailed discussions with SunCal regarding profit participation; the pro forma attached to the DDA shows a 20% return, which would not meet the hurdle rates; provisions were incomplete in the first draft that staff received. The Public works Director stated staff expected to see the last, best and final offer sooner rather than later and expected that all concerns would be addressed; some concerns were addressed; the last, best, and final offer became more restrictive, is in Special Joint Meeting Alameda City Council, Alameda Reuse and g Redevelopment Authority, and Community Improvement Commission July 20, 2010 the best interest of SunCal, and is against what the City was negotiating for. Councillmember /Board Member /Commissioner Tangy requested clarification on SunCal's intent and interpretation. Mr. Brown stated the form is complicated and is based on a prior DDA; staff has a misunderstanding of many elements; SunCal's intent is to continue a process with the City to get to a final public hearing; the document could be modified through the process; completion bonds, subdivision bonds, cash collateral, firm financing commitments, capital stack of debt, equity, all come together to deliver financial security at the close of every escrow so that the property could be acquired and fully developed; the financing plan is contained in the document; the financial plan cannot identify the loaning bank two years in the future; the financial plan shows how much cash would be corning from equity and debt to acquire and make infrastructure improvements; SunCal has provided the best estimate at this time; figures may be different.down the road; the estimate is a good faith, solid estimate today; the scheduled performance states that the horizontal development would be completed within a specified time, that .all residential land would be transferred to builders within a specified timeframe, and that vertical builders, who would build residential and commercial buildings, would all build within five years of the time the property is acquired; all schedules build and tee. off one another in case of a delay or acceleration; SunCal cannot predict. unexpected events that would change the schedule; the penalty for not achieving the schedule would be that SunCal mould not have the right to proceed on the project; SunCal feels that providing for force majeure is fair. Councilmember /Board Member /Commissioner Tam stated it is difficult to give policy direction on the fly on a document that she has not seen based upon interpretations that seem different for each party. The Public works Director stated that infrastructure costs have not been agreed upon; the transportation plan is not detailed and is more of a transportation concept; the pro forma shows a plan based upon bus rapid transit used in Eugene, Oregon; staff has not been able to find out if the unit price for the bus rapid transit is applicable; SunCal added $a million because its engineer miscalculated the mileage; the water Emergency Transit Authority [WETA] has not agreed to a ferry terminal cost nor has agreed to relocating the ferry terminal to the seaplane lagoon; issues should have been addressed over the last three years. The Interim City Manager /Executive Director stated staff does not expect Council to be making decisions on policy without reviewing the document; tonight's focus is on the MOEA; SunCal has been with the City for three years; everyone knows what the agenda process is; submitting a comprehensive DDA at 6:00 p.m. on Thursday after the Special Joint Meeting Alameda City Council, Alameda Reuse and 10 Redevelopment Authority, and Community Improvement Commission July 20, 2010 agenda deadline and having an expectation that a staff report would be submitted in twenty -four hours is onerous. The City Attorney /Legal Counsel stated the DDA is not before the Councilmembers /Board Members /Commissioners tonight; Councilmember /Board Member /Commissioner Gilmore's questions regarding the DDA are relevant; staff does not believe that anything in the last, best, and final offer has a cure or changes staff's recommendation. Mr. Brown stated at a previous meeting, the Cou ncilmembers /Board Members /Commissioners discussed the intent to have a public hearing; the intent of the public hearing would be to discuss whether or not to continue with the. ENA, not to..deny the application; SunCal wants to work cooperatively with the City; the process needs .a partner; the partner [City] has been difficult to carne by over the last several months; SunCal wants to reestablish the relationship; that he is convinced that.the relationship can be reestablished to move forward to discuss the important project issues and to have the EIR analyze every element of the project; at the end of the. day, Councilmembers/ Board Members Commissioners may vote to deny the project; staff may generate EIR alternatives that would be studied and mould be the appropriate tune to make judgments regarding the DDA, EIR, and project itself; rushing judgment on. the application is inappropriate; SunCal would welcome dialogue with Councilmernbers /Board Members/Commissioners and staff regarding the. DDA and project itself; that he would like to engage in conversation with the Public Works .Director regarding cost estimates and where the line mould go; SunCal has a recommended bus rapid transit location in the plan which needs to be discussed; staff did not have .enough time to ask questions regarding the DDA; SunCal has achieved the goal of having the DDA meet the requirements under the ENA. The Deputy City Manager Development Services stated staff has..not changed its recommendation in response to letters provided by Skip Miller; the Councilmembers /Board Members /Commissioners and staff have been dlscussln th st potentially denying the MOEA for the last two months; May 18 June and July staff reports discuss the matter; staff does not think the EIR mould change any issues or recommendations noted tonight; findings for denial are related to the commitment to a transit oriented mixed -use development and comprehensive transportation development strategy that fully funds costs and operations, which is not something that an EIR would study. The Public works Director stated SunCal had three years to address the bus rapid. transit line; that he has tried to get SunCal to meet with WETA over the last year; he had to force SunCal to initiate dialogue with WETA; the issue is too little too late. Special Joint Meeting Alameda City Council, Alameda Reuse and Redevelopment Authority, and Community Improvement Commission July 20, 2010 Vice Mayor /Board Member /Commissioner deHaan inquired whether Mr. Brown stated that the last, best, and final offer is a complicated document that would take a long time to review, to which Mr. Brown responded in the affirmative. Vice Mayor /Board Member /Commissioner deHaan inquired why the last, best, and final offer was provided five days before the meeting, Mr. Brown responded SunCal has had weekly meetings with staff.on the entire Alameda Point project; stated numerous issues have been addressed; the DDA had to be written to meet the schedule and the schedule was achieved; two or three drafts have been shared with staff. Vice Mayor /Board Member /Commissioner deHaan inquired whether Mr. Brown has been privy to concerns. regarding the job /housing imbalance, economic development strategy, traffic, and endangered species prior to the staff report going out; stated SunCal knew ghat needed to be tackled; that he does not know whether a requested commercial study has been provided; SunCal's mode of operation has been the 11 th hour. Mr. Brown responded the traffic study has been an ongoing effort for the last four years; recently, the public has been engaged. Vice Mayor /Board Member/Commissioner deHaan inquired what is different from the traffic study developed from the Preliminary Development Concept (PDC). Mr. Brown responded that he does not know, but SunCal's Transportation Consultant would know. Vice Mayor /Board Member /Commissioner deHaan inquired when SunCal hired its Transportation Consultant. Jim Daisa, SunCal Transportation Consultant, responded he was hired approximately 9 months ago or longer. Vice Mayor /Board Member /Commissioner deHaan inquired when the traffic study was prepared. Mr. Daisa responded that he has not prepared a traffic study; however, he has developed a transportation strategy. Vice Mayor /Board Member /Commissioner deHaan inquired how the PDC traffic study d iffers. Special Joint Meeting Alameda City Council, Alameda Reuse and 12 Redevelopment Authority, and Community Improvement Commission July 20, 2010 Mr. Daisa responded the PDC study was an impact study, which is not what SunCal prepared; SunCal 's transportation strategy is consistent with, and has some level of change, from the City's 2008 transportation strategy, which has been based upon the evolution of Alameda Point over time; the City has hired other consultants; that he has worked on phase and stage implementation detail from a developer's prospective. Councilmember /Board Member /Commissioner Gilmore stated lawsuits were mentioned in last week's Alameda Journal headlines; tonight's discussions have included lawsuits potentially being an outcome of tonight's decision; three or four letters were received last week and came too late for the staff report; that she is not sure whether the letters would have been included in the staff report if the letters were received in time; requested feedback from the City Attorney on the matter. The City Attorney /Legal Counsel Inquired whether Councilmember /Board Member /Commissioner Gilmore is talking about the damages issue. Councilmember /Board Member/Commissioner Gilmore responded in the affirmative; stated that she is a little disturbed about the matter; she had the opportunity to review the City Attorney's opinion for the first time today; the opinion's existence became known to her about a week ago; that she requested a copy of the opinion from the City Attorney and was told to read the opinion in the City Attorney's office; the opinion had to be left at the City Attorney's office because it would not be given out in advance of the meeting; that she asked the City Attorney why she would not give the opinion to her; the City Attorney cited concerns regarding the white elephant in the room; she is disturbed by allegations regarding Councilmernber /Board Member /Commissioner Tarn, the Interim City Manager, City Attorney, Mayor, and SunCal; the situation has created an unnecessary, adversarial atmosphere around City ball and the City; at the end of the day, everyone is friends, neighbors, and colleagues' and everyone will have to learn to work together; that she has volunteered for the City for over fifteen years; she has .never seen the situation get this bad; the situation has been adversarial between the Councilmembers /Board Members /Commissioners even with general disagreements of opinion in addition to being adversarial between staff and the Councilmembers /B.oard Members /Commissioners; the whole process has bread an atmosphere of fear and suspicion that has driven some actions such as not letting her see the opinion; the implication that certain members of the Council /Board /Commission could .not be trusted with confidential material applied to all the Councilmembers /Board Members /Commissioner; that she wanted the opinion because the opinion is lengthy, and she did not know whether she would want to review the opinion again after reading the lengthy staff report; bouncing back and forth to the City Attorney's office is very inconvenient; the matter is a Charter issue because the Charter states that Councilrnernbers /Board Members/ Commissioners should be able to get an opinion from the City Attorney if requested in writing; the Charter does not state that an opinion Special Joint Meeting Alameda City Council, Alameda Reuse and 13 Redevelopment Authority, and Community Improvement Commission July 20, 2010 needs to be read in a certain place; requested the City Attorney to provide an opinion that she is comfortable stating in public; stated that she feels the complicated opinion is difficult to digest; a Closed Session was not held on the matter tonight because of a clerical error; that she does not have the benefit of her colleague's and legal team's thinking. Mayor /Chair Johnson stated no allegations have been directed toward her; she understands there have been claims and spins regarding the investigative reports. The City Attorney. /Legal Council stated SunCal's attorneys have threatened to sue the City if the City does not do what SunCal wants; having a litigation defense briefing would not change the situation and would have no bearing on the Councilmembers /Board Members' /Commissioners' .decision tonight; City staff, including a significant legal team of land use attorneys, CEQA attorneys, and litigators, have done a through analysis of the issues before the Councilrnernbers /Board Members /Commissioners tonight and have made a recommendation to. the Councilmembers /Board Members/Commissioners; SunCal also says that it is entitled to the benefit of the deal that SunCal has made; the deal is .the ENA; the ENA specifically states that damages would be limited to return of. SunCal's. $1 million deposit in the event of the City's breach of its obligation to negotiate diligently and in good faith. Council member/Board Member /Commissioner Gilmore inquired whether SunCal's damages would be limited to $1 million if SunCal sues the City and is successful. The City Attorney /Legal Counsel responded in the negative; stated the benefit of the bargain SunCal made set forth in black and white.. in the ENA specifically states SunCal's damages would be limited to a return of the .$1 million deposit; that she does not believe tonight's forum is a good time to get into a legal issue debate with SunCal's attorneys. Councilrnember /Board Member /Commissioner Matarrese stated. the ENA expired yesterday; the City does not have a Navy terra sheet; inquired whether the question on the agenda tonight is whether or not to accept the MOEA. The City Attorney /Legal Counsel responded the question on the agenda is whether or not to follow the staff recommendation. to deny the MOEA which could be done without prior CEQA review; stated Councilmembers /Board Members /Commissioners cannot approve the MOEA without CEQA review. Councilmember /Board Member /Commissioner Matarrese moved approval of the staff recommendation; stated the project has the same flaws as the project before the voters; the DDA would not change the issue; opening the process up would be beneficial to the Special Joint Meeting Alameda City Council, Alameda Reuse and 14 Redevelopment Authority, and Community Improvement Commission July 20, 2010 City. Vice Mayor /Board Member /Commissioner deHaan seconded the motion. Under discussion, Mayor /Chair Johnson stated the process was very thorough when SunCal was selected; that she did not vote for SunCal but supported the position of the majority of the Councilmembers /Board Members/Commissioners; Councilmembers /Board Member /Commissioner Matarrese did not vote for SunCal but also supported the selection of the majority of the Council /Board Members/Commissioners; four Councilmernbers /Board Members /Commissioners made an effort to accept the vote to work, support, and cooperate with SunCal; that she appreciates SunCal's community outreach; situations leading to Measure B took .a turn for the gorse; the relationship between SunCal and the City has gotten gorse; the community made an effort to work with SunCal; SunCal has not returned the community's good faith efforts; that she has had an open relationship with SunCal and has expressed community concerns; there is too much development; she does. not see how all the traffic could get through two lanes in the Tube in both directions; her family members lived in Alameda at the peak of the former Naval Base; that her grandmother could not get out of her driveway on the 1700 block of Versailles Avenue because Base workers would come over the 1= ruitvale Bridge; people accepted and supported traffic backups because of Alameda's contribution toward national security and military efforts; allowing an inappropriate development is different; she ran for Council twelve years ago to help guide the former Naval Base redevelopment;. the City needs a trustworthy partner; some of the things that SunCal has done questions. SunCal's trustworthiness; that she does not think SunCal's threats and bullying is appropriate, particularly when a decision has not been made; she never makes up her mind until there has been a public hearing; that she is very concerned about the project's financial feasibility; she does not think there could be a 25% I RR; now she is learning there would be a 25% profit in addition. Vice Mayor /Board Member /Commissioner deHaan stated one incident does not change a person's mind; that he has supported and given all to SunCal; having a developer spend more than $1.25 million on a campaign is bizarre; spending another $1.5 million on pre campaign efforts is equally bizarre; the community should be proud that it pushed back with less than $22,000; money does not buy loyalty and trust; money should not flow inappropriately. Councilmember /Board Member /Commissioner Tam stated that she is being attacked in her efforts to keep Alameda government open and honest; that she..wants to be clear that the correspondence in the documents and allegations, including the ones to the fire fighters, SunCal, and whoever has asked her questions, shows that she has diligently followed up on the tough questions with the Interim City Manager /Executive Director Special Joint Meeting Alameda City Council; Alameda Reuse and 15 Redevelopment Authority, and Community Improvement Commission July 20, 2010 and that she has pushed to have important questions answered; having said that, with the vote this evening, the MOEA may- not be the plan the City ultimately wants at Alameda Point; staff has made some assumptions on financial and environmental impacts; the historic resources group has made some findings that are part of the eligibility of being listed in the National Registry; doing nothing is not a good option; the issue is not really about SunCal in her mind; that she thinks of this as an EIR that should look at the bookends of a project; the EIR should look at doing nothing and doing the ultimate, which is the MoEA being considered this evening; that she thinks the EIR needs to analyze the full range of impacts, and then decide whether the City can afford to pay for the impacts and whether there is some threshold with respect to profit sharing; that she thinks the EIR is the most open, transparent, and fair process, which is what she is trying to underscore in terms of transparency and openness when it comes to communications with the community; she will be abstaining from the vote for said reasons. Councilmember /Board Member/Commissioner Gilmore stated that the transit plan is one of the most important things to her; everyone would suffer with an unsuccessful transit plan; that she is intrigued by the transit plan and she would like to see an EIR go forward and evaluate the transit plan and impacts; that she has problems with the financials; Alameda Point Community Partners (APCP) wanted a 25% I RR; that she voted down the 25% IRR because 25% seemed high and was something that the City and developer should have gone back to the drawing board to flush out before going down the path to a DDA; the financial assurances and I RR give her pause. Councilmernber /Board Member /Commissioner Matarrese stated in addition to traffic, another concern is the Albuquerque bankruptcy and how the City would protect itself from becoming another Albuquerque; that he does not think the City can protect itself; questioned whether the City wants to do business with a land investor; that he would like the process to be open and get the best deal for Alameda; the Councilmembers /Board Members /Commissioners have a lot of experience and can do better. On the call for the question, the motion carried by a roll call vote: Councilmembers Gilmore: Aye; Matarrese: Aye; Tam: Abstain; vice Mayor deHaan: Aye; and Mayor Johnson: Aye. Ayes: 4. Abstentions: 1. A W L I I" 61, 1 I 10, There being no further business, Mayor /Chair Johnson adjourned the meeting at 1:09 a.m. Respectfully submitted, Special Joint Meeting Alameda City Council, Alameda Reuse and 16 Redevelopment Authority, and Community Improvement Commission July 20, 2010 L_ara Weisiger, City Clerk Secretary, CIC The agenda for this meeting was posted in accordance with the Brown Act. Special Joint Meeting Alameda City Council, Alameda Reuse and 17 Redevelopment Authority, and Community Improvement Commission July 20, 2010 UNAPPROVED MINUTES OF THE SPECIAL JOINT CITY COUNCIL ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY (ARRA), AND COMMUNITY IMPROVEMENT COMMISSION (CIC) MEETING TUESDAY- -JULY 27,2010- -7:00 P.M. Mayor /Chair Johnson convened the meeting at 7.06 p.m. Councilrnernber /Board Member /Commissioner Gilmore led the Pledge of Allegiance. ROLL CALL Present: Councilmembers /Board Members /Commissioners deHaan, Gilmore, Matarrese, Tarn and Mayor /Chair Johnson —5. Absent: None. CONSENT CALENDAR. Mayor /Chair Johnson announced that the recommendation to appoint Michael Krueger [paragraph no. 10- was continued; and the recommendation to authorize the Interim Executive Director to sign a Letter of Agreement [paragraph no. 10- and the recommendation to approve an Agreement with the City of Inglewood [paragraph no. 10- were removed from the Consent Calendar for discussion. Councilmember /Board Member /Commissioner Matarrese moved approval of the remainder of the Consent Calendar. Councilmernber /Board Me nber /Commissioner Gilmore seconded the motion, which carried by unanimous voice vote 6. [items so enacted or adopted are indicated by an asterisk preceding the paragraph number.] *10-- CCIARRA110- CIC Minutes of the Special Joint City Council, ARRA and CIC Meeting Held on July 7, 2010. Approved. 10- CC Recommendation to Appoint Michael Krueger to the Oakland Chinatown Advisory Committee. Not heard. 10- CIC) Recommendation to Authorize the Interim Executive .Director to Sign a Letter of Agreement in the. Amount of $9,690 with the Greater Alameda Business Association for FY 10 -11; to Enter. into a Contract. in the Amount of $89,998 with the Park Street Business Association for FY 10 -11; and to Enter into a Contract in the Amount of $81,676 with the west Alameda Business Association for FY 10 -11. Commissioner Gilmore stated two of the business associates have contacted her regarding street maintenance and lighting; landscaping and lighting funds are in the Special Joint Meeting Alameda City Council, Alameda Reuse and Redevelopment Authority, and Community Improvement Commission July 27, 2010 budget; inquired whether a decision has been made for street maintenance and if so, how things are working. The Interim Executive Director responded the agreements are the same as in the past; stated this year, funds have been reduced by a nominal amount; the City did an Request for Proposal (RFP) to see if some of the landscape and maintenance services could be done at a reduced rate; the associations have had different views regarding whether the amount of coverage in the. RFP's were comprehensive; a vendor has agreed to work with the west Alameda Business Association (WABA) to bifurcate the bid so that the bid would work for wABA; the Park Street Business Association (PSBR) will continue to do its own thing; the landscape and lighting agreement funds are sufficient to cover whatever wABA and PSBA choose to do. Chair Johnson stated past discussions have addressed advertising at the Oakland Airport; that she thinks the idea is worth reviewing. The Interim Executive Director stated Alameda is very close to the airport, but nothing is advertised on the screen; advertising costs will be researched. Commissioner deHaan stated that he recalls the matter being addressed with the Chamber of Commerce. The Economic Development Business Development Division Manager stated the City has a Contract with the Chamber of Commerce for writing articles and public relations, not airport advertising. The Interim Executive Director stated the motion could include language regarding looking into airport advertising. Commissioner deHaan moved approval of the staff recommendation, with direction for the Interim Executive Director to review advertising in the Oakland Airport. Commissioner Matarrese seconded the motion, which carried by unanimous voice vote —5. 1 O CC Recommendation to Approve an Agreement with the City of Inglewood for Citation Processing and Collection Services. The Deputy City Manager Administrative Services gave a brief presentation. Mayor Johnson stated the service is provided to other cities; inquired whether staff has contacted other cities to get an idea of satisfaction. Special Joint Meeting Alameda City Council, Alameda Reuse 2 and Redevelopment Authority, and Community Improvement Commission July 27, 2010 The Deputy City Manager Administrative Services responded in the negative; stated the City of Inglewood advised her that its track record for renewing Northern California client contracts is good; in 2009, the City of Inglewood had 12 existing clients that reneged contracts and new clients came onboard, the City of Berkeley has renewed its contract. Councilmember Gilmore stated that she understands the efficiencies, but is having trouble with contract costs versus ghat would be saved. The Deputy City Manager Administrative Services stated currently, the parking citation program costs approximately $85- 90,000 for staff, which does not track the Supervising Accountant time for managing the program; the Supervising Accountant's time is charged elsewhere; the savings would be approximately $10,000 in terms of the program; an existing employee would be transferred as opposed to hiring a new employee which would result in another $80,000 or so in savings. Councilmember Tarn stated staff looked at the City of Inglewood when performing its due diligence regarding economies of scale; inquired why staff has not talked with the City of Oakland or City of Berkeley regarding exploring partnering opportunities in terms of the Duncan Solutions program. The Deputy City Manager Administrative Services responded both Berkeley and Oakland contract out and use different vendors; Duncan and Inglewood are the industry standard and have 05 clients in northern California. Councilmember Tam stated that she is not .clear on the processing center location; the location does not seem to be centralized, but spread out, The Deputy City Manager Administrative. Services. stated Duncan Solutions is based out of Milwaukee; Inglewood sought partnership with Duncan Solutions since it is the largest provided; handheld ticket writer support is provided from Carlsbad. Councilmember Tam 'inquired whether the $13,000 a year credit card processing costs would be included in the $75,000 [annual agreement cost], or whether the cost would be part of the convenience fee that the person getting the ticket would have to pay. The Deputy City Manager Administrative Services responded the person getting the ticket would pay the convenience fee as an added cost to the ticket. Speaker: Richard Hausman, Alameda. The Deputy City Manager Administrative Services stated developing a system would be a time consuming process and would be quite costly; some money would be given up for the privilege of having someone else do collections; staff could bring the Special Joint Meeting Alameda City Council, Alameda Reuse 3 and Redevelopment Authority, and Community Improvement Commission July 27, 2010 collections issue back as a separate item in September so Council Gould choose whether or not to pursue the issue. Mayor Johnson inquired whether the collection system would be used for tickets that are not paid, to which the Deputy City Manager Administrative services responded the collection system would be used for outstanding tickets that would go through the Franchise Tax Board. Mayor Johnson inquired ghat process is used now. The Deputy City Manager Administrative services responded letters are sent out four times a year; people do not necessarily. respond; eventually, something gets placed on a person's DMV record, which prevents re-registering a car. The Interim City Manager stated the City has an integrated. financial management system that does not have all the modules; having parking citations in an integrated ledger is usually part of accounts receivable; the existing financial management software systems more driven for school districts than for:cities; the average cost for a new module is between $85,000 to $120,000; the existing system has not been maintained or serviced; the City would. have to buy a separate parking citation module, program. and integrate the module. into the. existing system, and find someone to maintain the system; replacing the financial management system with integrated modules would cost approximately $1.2 million; a maintenance and service fee would be approximately $49,000 to $80,000 depending on the module. Vice Mayor. deHaan stated the issue is more than just personnel but involves software and maintenance. The Interim City Manager stated .the most efficient way.to handle the matter would be to start peeling away at the various modules little by little and budget going toward a hosted system or outsourcing a system. Vice Mayor deHaan inquired whether the Interim City Manager is looking at looking at outsourcing some of the components. The Interim City Manager responded different modules are being reviewed; stated the issue will be discussed under the budget item. Council.member Tangy inquired whether any. other services are available other than Inglewood Citation Management Services (ICMS); further inquired what the City of Oakland uses; stated that she is concerned with being tied to one system and having no recourse other than not renewing the contract if there is a problem. Special Joint Meeting Alameda City Council, Alameda Reuse 4 and Redevelopment Authority, and Community Improvement Commission July 27, 2010 The Deputy City Manager Administrative Services responded that she does not know ghat the City of Oakland uses; stated if a problem develops, the City could contract with another vendor once the existing Agreement expires. The Interim City Manager inquired whether the Agreement has a termination clause, to which the Deputy City Manager Administrative Services responded that she would need to check. Councilmember Gilmore inquired whether the software being used by the vendor is proprietary; further inquired whether the City would need to reprogram everything or get a whole new system when terminating the Contract, or whether someone else would know the system's functions. The Deputy City Manager Administratiye services responded the Agreement would be a three -year term with optional renewal; stated either party could. terminate the Agreement by providing 120 days written notice; everything would be hosted and would reside with ICMS, the City's data would be converted into. the data files; the City could sever the relationship six months down the road if it chooses; that she does not know whether the software is proprietary or not. The Interim City Manager clarified that the City would get its data back in some format but would not get the software. The Deputy City Manager Administrative Services stated. having an adversarial relationship with another local agency would not be in the best interest of the City of Inglewood. Councilmember Matarrese inquired whether hard information going into the database would be certified as being secure; whether data mould be retrievable to ensure that data would belong to the City at the termination of the Contract; and whether handheld validated information would go into the database. The City. Attorney confirmed security of information is included in the contract. The Supervising Accountant explained the data validation process. Councilmember Matarrese stated certification of validation, certification of secure database, and certification that the City would get data in a format that could be used at the end of the Contract is important. Vice Mayor deHaan inquired how long the City of Inglewood has been doing citation processing and collection services, to which the Deputy City Manager Administrative Services responded 20 years. Special Joint Meeting Alameda City Council, Alameda Reuse 5 and Redevelopment Authority, and Community improvement Commission July 27, 2010 Vice Mayor deHaan stated that staff would not be considering hiring the City of Inglewood if there were unhappy customers in the past. Vice Mayor deHaan moved approval of the staff recommendation with Councilmember Matarrese's clarifying issues regarding certification requirements. Councilrnember Matarrese seconded the motion, which carried by unanimous voice vote 5. *10- CC Resolution No. 14478, "Authorizing the City of Alameda and the Alameda Fire Department to Access Federal Level Summary Criminal History for Emergency Medical Technicians." Adopted. (*10- CC) ordinance No. 3020, "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 Vill (Traffic, Motor vehicles and Alternative Transportation [Lodes)." Finally passed. (10- CCIARRA/10- CIC) Mayor /Chair Johnson announced that agenda items would be taken out of order and provided the revised order. AGENDA ITEM (10- CC) Recommendation to Approve Reimbursement Agreement with VF Outdoor (SRM Associates). The Planning services Manager gave a Power Point presentation; and the Interim City Manager gave a brief presentation. Vice Mayor deHaan left the dais at 7:48 p.m. and returned at 7:53 p.m. Councilrnelmber Tangy stated that she wants to be clear that VF outdoor would be a great company to welcome to Alameda; inquired whether half of the subsidies would be recovered by year four. The Interim City Manager responded other property transfer taxes are not being projected in future years phasing; stated the only number put in is the number that would be reimbursed for that year; assumptions should have been made regarding the next phases; as other phases are sold in future years there would be more property transfer tax. Special Joint Meeting Alameda City Council, Alameda Reuse 8 and Redevelopment Authority, and Community Improvement Commission July 27, 2010 Vice Mayor deHaan inquired whether concessions would be made for other phases, to which the Interim City Manager responded in the negative, only Phase 1. Councilmember Tam stated generating $3 million over twelve years is approximately $250,000 per year; Exhibit 3 shows a different estimate of net revenues to the General Fund; inquired whether the recovery would seem to be more like eight years. The Interim City Manager responded eight years seems about right; stated 50% of the property tax would be going into the special fund, not the General Fund. Mayor Johnson inquired how VF outdoor would compare to other businesses in Alameda. The Business Development Manager responded the best comparison would be Abbott Diabetes Care; stated having 600 plus employees would be similar. Mayor Johnson inquired what would be the next step down in terms of employees, to which the Business Development Manager responded wind River. Mayor Johnson inquired how many employees Wind River has, to which the Business Development Manager responded 300 to 400. Mayor Johnson stated that she wants to make the scale apparent to the public; VF outdoor wvuld be a s bus1ness for Alameda. Speakers Steve Rendle, VF outdoor; Marilyn EZZy Ashcraft, Planning Board; and Lorre Zuppan, Alameda. Councilmember Tam moved approval of the staff recommendation. Councilmember Matarrese seconded the motion. Under discussion, Councilmember Matarrese stated VF outdoor would be a great company corning to Alameda; Alameda is a safe community; the proposed design meets bay view requirements. Mayor Johnson stated that she likes the bay friendly landscaping plan; Peet's coffee has similar landscaping. Vice Mayor deHaan commended SRM; stated five years ago, the city considered relocating a warehouse in the area; that he cannot say enough about the evolution of the Harbor Bay Business Park; supporting transportation is important. Special Joint Meeting Alameda city Council, Alameda Reuse 7 and Redevelopment Authority, and Community Improvement Commission July 27, 2010 Councilrnember Gilmore thanked staff and SRM for all the hard work; stated that she is very impressed with the campus design; putting parking in the rear adds a lot to the front. On the call for the question, the motion carried by unanimous voice vote 5. CITY MANAGER /EXECUTIVE DIRECTOR COMMUNICATION 10- CC Correspondence to the United States Department of Transportation Requesting Denial of Alameda County's Proposal to Modify the Hours of operation to Estuary Drawbridges. The Public works Director gave a brief presentation. Mayor Johnson stated now is a good time to bring the issue before Council; that she is very disappointed with the process the County and Supervisor Lai- Bitker have used; past discussions involved closing bridges for a few hours during the middle of the night; the County did not have any public process before providing a proposal to lock bridges down at 4:30 p.m.; encouraged Alameda residents to express concern and outrage to Supervisor Lai- Bitker; that she is offended that Alameda residents' interest have been disregarded; the Coast Guard has confirmed its policy that economics is not a justification for shutting off waterways. Speakers: Ed Payne, Alameda and Alameda waterfront Homeowners Association; and Torn Charron, Alameda. Councilmernber Tarn left the dais at 8 :32 p.m. and returned at 3:34 p.m. Following Mr. Payne's comments, Mayor Johnson stated people need to be vocal regarding- the issue and continue to send communications to the Coast Guard; concurred that property values would be significantly affected because bridge closure would turn a navigable waterway into a non navigable waterway. The Interim City Manager stated that the Public works Director has spent a lot of time researching the issue, particularly in terms of safety conditions; that she has not done all the work. Mayor Johnson stated that she is very discouraged with the lack of transparency and meaningful public input; encouraged yacht club members to write letters to the Coast Guard. The Public Works Director stated the three options noted in the press release are to send letters: 1 to the Federal E Rue Making Portal at www.regulations. ov; 2} via fax to Special Joint Meeting Alameda City Council, Alameda Reuse 3 and Redevelopment Authority, and Community Improvement Commission July 27, 2010 (202) 493 -2251, or 3) to the docket facility for the United States Department of Transportation in Washington, D.C. Mayor Johnson inquired whether staff would be sending a letter to the Coast Guard. The Public Works Director responded sending a letter to the Coast Guard is not one of the options; stated letters sent to the Department of Transportation would eventually get to the Coast Guard. Mayor Johnson inquired whether the Coast Guard is recommending such procedure, to which the Public Works Director responded in the affirmative. Mayor Johnson stated letters should be very strong in stating that the City does not support any change to current bridge operations since the County has not worked with the City; the County has not used a good faith process; the City should oppose any changes and force the County to work with the City. Councilrnember Tam stated that she attended a forum at Aeolian Club on the issue; inquired ghat is the City's financial contribution to the bridges and whether the City has the option to take over the bridges. The Public Works Director responded the Park Street and Miller Sweeney Fru.itvale Bridges are owned by the County; stated the City has no financial responsibility; County sales tax is earmarked for maintenance; the.City has no responsibility to pay for bridge rr� i r► r� r, n n t n h A 1 1 M'7 k n ow n �-s r■., l r. costs r. jai �e� �c�a� (3e, e Cou t y s h oul d ld i 1 av e ni"�u►P�r n t I t Ica Lhct G ou to ue- o goi g costs to maintenance when it accepted ownership; the Coast Guard would not be interested in reducing services that would reduce maritime use. Captain Payne stated the County collects money for bridge operation through road .Ind gas taxes and is reimbursed for half of the Miller Sweeney Fruitvale) Bridge operation from the Federal government. Councilrnernber Tara stated that she is interested in ghat Alameda contributes from its share of the gas or sales tax; the situation is similar to when the City closed Fire Station 5; economics and probability drove the closure; constructive solutions should be considered rather than criticisms. The Public Works Director stated gas tax is based upon population and miles of roads for the entire County; focus should not be on costs; the Coast Guard stated that costs should not be addressed; the Coast Guard is concerned that maritime service not be unreasonably impacted; that he thinks maritime service would be impacted. Councilrnember Tam stated that she does not have a dispute with writing letters on behalf of the community underscoring the need for the 24/7 operation; other options, Special Joint Meeting Alameda City Council, Alameda Reuse 9 and Redevelopment Authority, and Community Improvement Commission July 27, 201 other than operating at a loss, should be reviewed if the County and City do. not have funding. The Public works Director stated the County needs to figure out funding. Mayor Johnson stated that she attended two meetings; one meeting was with Coast Guard and County staff; the other meeting was with .County staff; the first meeting was after the newspaper noticed that the .County was proposing to lock the bridges; the County did not answer economic questions regarding operations and maintenance; the County should have come back and worked with the community; the County .will not meet or discuss the matter with people who would be most impacted with the proposed change; the County did not outreach to the City regarding the 4:30 p.m. closure; the County has not fulfilled its responsibility. Councilmember Matarrese moved approval of authorizing the Interim City Manager to send a letter rejecting the County's proposal; stated a solution is out there somewhere; there is a chance to reset the issue. Councilmember Tam seconded the motion. Under discussion, Mayor Johnson inquired whether Counc.ilmernber Matarrese's motion includes that the City does not support any changes .to the current schedule, to which Councilmember Matarrese responded in the affirmative. Vice Mayor del -laan stated the community was willing explore other gays at an Aeolian Club meeting in February or March. The Public works Director stated staff met with the County and reviewed options with the County Public works Director; she was not interested; the solution would be her way or no way. Mayor Johnson encouraged people to continue communicating with the Coast Guard and Supervisor Lai- Bitker; inquired whether proposed language regarding no changes to the current schedule is acceptable to Councilmember Tam, to which Councilmember Tarp responded said language is ghat the letter currently states. Mayor Johnson requested the language be made stronger. The Interim City Manager stated language would be firmed up. Councilmember Matarrese stated the letter can start with the City not wanting any changes. On the call for the question, the motion carried by unanimous voice vote 5. Special Joint Meeting Alameda City Council, Alameda Reuse 10 and Redevelopment Authority, and Community Improvement Commission July 27, 2010 AGENDA ITEMS 10- CCIARRAI o- CIC Recommendation to Approve the City of Alameda's Real Estate Asset Management Policy. The Interim City Manager gave a brief presentation. Speakers Jon Spangler, Alameda; and Leslie Cameron, Bay Ship and Yacht. Following Mr. Spangler's comments, the Interim City Manager stated the policy is a Council policy; the Authorities and Responsibilities sections have citations in terms of policy administration; the City Manager would make administrative decisions as to ghat the policy means. Councilmember Tam stated for clarity, language should be added stating: "before recommending to the City Council for final approval The Interim City Manager inquired where the inserted language should go. Councilmember Tangy responded on Page 5 of the Real Estate Asset Management Policy] under organizational Responsibilities X -1 where it states: "the City Manager's office is the ultimate decision maker with respect to administrative interpretation of this City Council policy. All transactions under this policy must be approved by this office #"'!1 /'�!'1 Y1�"A f"Y'7 �"N 1"'Z t"1 F"1i 11"1 �A'1 "I1 �^t1 ,1'►t+� M^Y'w rA R"1 Y� T rA the a s N r1 A �IA fw• fin a c�u� lei ded A i� sel i g ue U1 1 e r eCo iii u did ig o e amity gout lt�11 of gal appr oval after the word "office In response to Mr. Spangler's comment regarding the policy including the City's commitment to making older City -owned buildings Leadership Energy and Environmental Design (LEED) certified or green buildings, the Interim City Manager stated the idea sounds good. Following Ms. Cameron's comments, Mayor Johnson stated that the City wants to continue to work with Bay Ship and Yacht and appreciates all the work that Bay Ship and Yacht has done. Councilmember Matarrese thanked the Interim .City Manager, businesses that provided input, as well as staff; stated the policy is exactly ghat he hoped for when he put in the Council Referral; the earlier policy was not working; the new policy is comprehensive and dynamic; changes and adjustments might be needed; that he wants to stay focused on a long terra approach; taking lease revenues up to the front end to the exclusion of others is not the way to do things. Special Joint Meeting Alameda City Council, Alameda Reuse and Redevelopment Authority, and Community Improvement Commission July 27, 2010 Councilmember Matarrese moved approval of staff recommendation; stated the policy could be evaluated in six months or after "x" number of negotiated leases to ensure that the City is on target or adjustments need to be made. Councilmember Tam seconded the motion with the modification to include additional language she proposed [before recommending to the city Council for final approval. Councilmember Matarrese agreed to amend the motion. Under discussion, Councilmember Gilmore inquired whether including efforts to become greener would be included, to which Councilmember Matarrese responded in the affirmative. Councilmember Matarrese and Tara concurred with amending the motion. The Interim City Manager stated Council would approve the ultimate lease. On the call for the question, the motion carried by unanimous voice 5. 10- CCIARRA Recommendation to Approve a. Cooperation Agreement between the City of Alameda, Alameda Reuse and Redevelopment Authority and the Alameda Bast Bay Miracle League; and 10- A CC Resolution loo. 1 4479 "Supporting the Alameda Fast Bay Miracle League Efforts to Construct Miracle Park, Which Will Provide Special Deeds Persons with the opportunity to Play Baseball as Team Members in a Formally Organized Baseball League in the city of Alameda." Adopted. The Deputy City Manager Development Services gave a brief presentation. Councilmember /Board Member Matarrese inquired whether the resolution of support would identify and commit the City to the site; further inquired whether the resolution would be strong enough to state that there would be a site and money would be provided. The Deputy City Manager Development Services responded staff provided the Miracle League.with the draft resolution for review; stated the Miracle League believes that the resolution is sufficient; staff coordinated with the Miracle League to ensure that needs would be meet. Speakers John Pecson, Alameda Soccer club; Roberta Rockwell, Miracle League; and Mina Borsoni, Miracle League. Mayor /Chair Johnson thanked the Miracle League and staff for putting together a project that would go forward in the foreseeable future, rather than at an unknown time Special Joint Meeting Alameda City Council, Alameda Reuse 12 and Redevelopment Authority, and Community Improvement Commission July 27, 2010 in a certain phase of development fifteen years from now; congratulated everyone on putting things together. Councilmember /Board Member Gilmore moved approval of the staff recommendation; stated everyone's hard work and perseverance has paid off. Councilrnember /Board Member Matarrese seconded the motion. Under discussion, Vice Mayor deHaan stated the commitment has always been there; tinning has been everything; site control is all important with fundraising. On the call for the question, the motion carried by unanimous voice vote 5. 10- CC Resolution loo. 14480 "Authorizing the Sale of 2210 Lincoln Avenue, Approving a Purchase and Sale Agreement Between the City of Alameda and Community Improvement Commission, and Authorizing the Interim City Manager to Execute the Agreement and Related Documents." Adopted; and 10- CIC Resolution No. 10 -169 "Authorizing the Purchase of 2216 Lincoln Avenue, Approving a Purchase and Sale Agreement Between the City of Alameda and Community Improvement Commission, and Authorizing the Interim executive Director to Execute the Agreement and Related Documents." Adopted. The Housing Development and Programs Manager gave a brief presentation. Mayor /Chair Johnson stated the project is very positive for Alameda; affordable housing would be a great use for the site and the location is good because it is near City facilities and transportation. Councilmember /Commissioner Tangy stated the location is great and the proposed use is sorely needed; the City would be selling the property to itself; inquired how staff arrived at the $735,000 purchase price. The Housing Development and Programs Manager responded two appraisals were performed and the difference was split. Councilmember /Com missioner Tarn stated the proposal would be to put 19 units on half an acre; inquired how Measure A or Article 20 of the City Charter would apply. The Housing Development and Programs Manager responded the Cuyton exemption is a settlement agreement that allows the Housing Authority to develop a number of affordable units exempt from Measure A as long as the Housing Authority is the owner; stated the project would be built pursuant to the Guyton exception and settlement agreement. Special Joint Meeting Alameda City Council, Alameda Reuse 13 and Redevelopment Authority, and Community Improvement Commission July 27, 2010 Councilmember /Commissioner Tam inquired whether the process would include Planning Board design review and site planning, and whether Council would have final approval. The Housing Development and Programs Manager responded absolutely; stated additional outreach would be done because the community usually has questions regarding affordable housing. Council member /Com mission er Tara inquired what would be the funding source, to which the Housing Development and Programs Manager responded the Business and Waterfront Improvement Plan (BWIP) Affordable Housing Fund. Council member /Com mission er Tam inquired ghat is the fund balance, to which the Housing Development and Programs Manager responded the fund exceeds $3 million and may be closer to $4 million. Vice Mayor /Commissioner deHaan stated the site has been used for employee parking; the parking structure is being used now. The Interim City Manager /Executive Director stated employees who were parking in the lot have been relocated to the top floor of the parking structure; approximately 100 spaces have been earmarked for employee parking. 'dice Mayor /Commissioner deHaan inquired whether the. proposed affordable housing site would be the first move forward in the Civic Center vision plan, to which the Interim City Manager /Executive Director responded absolutely. Vice Mayor /Commissioner deHaan stated the process for the proposed project has been rapid and well thought out; hopefully, the rest of the Civic Center plans do so as well. The Housing Development and Programs Manager stated identifying funding would come next. Councilmember /Commissioner Matarrese stated that he is impressed that plans have been implemented, appreciates leadership and direction, and hopes the project moves rapidly. Councilmember /Commissioner Matarrese moved adoption of the resolutions. Vice Mayor /Commissioner del laan seconded the motion, which carried by unanimous voice vote 5. CITY MANAGER/EXECUTIVE DIRECTOR COMMUNICATION Special Joint Meeting Alameda City Council, Alameda Reuse 1 4 and Redevelopment Authority, and Community Improvement Commission July 27, 2010 (10- CC /ARRA/10- CIC) Operational Budget Highlights The Interim City Manager /Executive Director gave a Power Point presentation. Speaker: Richard Hausman, Alameda. Mayor /Chair Johnson inquired whether the budget discussion would answer Mr. Hausman's questions regarding the Alameda Free Library being almost $500,000 in the red at the end of Fiscal Year 2011; the civic center garage having $500,000 going out, leaving $6,000 at the end of Fiscal Year 2011; Section 227.1 appearing to be a duplication and being listed as Theater Parking structure with different figures; and the Alameda /Oakland Ferry Service being almost $1 million in the red at the end of Fiscal Year 2011, to which the Interim City Manger /Executive Director responded in the affirmative. 10- CC Capital Budget Highlights The city Engineer gave a Power Point presentation. Mayor Johnson inquired whether the City still does street crack sealing, to which the City Engineer responded in the affirmative; continued the presentation. Councilmember Gilmore inquired whether Public Works. stripes red curbs from the corner; stated the paint wears off and people are out in traffic is before making a left turn. The city Engineer responded the city has one striping program for target areas and another program for on -call; stated red curbs are refreshed if there is enough money left over in the target program; Pubic Works tries to add red curb painting to address the issue; continued the presentation. Councilmember Matarrese inquired how closely traffic flow and signage improvements are integrated with other projects such as the Webster Street Planning Project; stated people living on Eighth Street have been suffering with additional Webster Street traffic, which Webster Street wants, since Constitution. Way gent in twenty years ago; further inquired whether coordination has been performed. The city Engineer responded in the affirmative; stated staff has met with the west Alameda Business Association (WABA); the Congestion Management Authority (CMA) has a signal interconnect program; deciding how to set signal controls is a balancing act. Councilmember Matarrese stated the city is spending money on attracting people to Webster Street; inquired how closely staff is working with WABA. Special Joint Meeting Alameda City council, Alameda Reuse 15 and Redevelopment Authority, and Community Improvement Commission July 27, 2010 The City Engineer responded the Supervising Civil Engineer is working with WABA and CIA; stated everything depends upon signal tuning. Councilmember Matarrese inquired whether the forth Pump Station would fix the lake that occurs next to the Tube every time there is a little rain. The City Engineer responded last year, water started backing up from the Pump Station throughout the entire west End; stated the lake next to the Tube is more localized; a Capital Improvement Project (CIP) could be done and would cost approximately $125,000; water hits the hump and never gets to the inlet; grinding down the hump would not provide needed elevation to have a flog line; the whole area would need to be ground out and the grade would need to be reestablish to match the inlet. Councilmember Matarrese stated there are no curbs on Grand Street between Buena Vista Avenue, Eagle Avenue, and Clement Street; that he noticed a commercial truck pulled up to the dirt where a sidewalk and curb should be; oil was spilling out of .the bottom of the truck; inquired whether there are plans to have curbs and gutters throughout the City. The City Engineer responded development is conditioned to include curbs, landscape strips, and sidewalks for new construction; stated gutters and curbs are part of the resurfacing program. Councilmember Matarrese stated the site he is referencing seems as though there has never been a curb; inquired whether the issue would be addressed. The City Engineer responded curbs would be put in as the project comes forward through entitlement or resurfacing. The Public Works Director stated the site that Council Matarrese is referencing was Beltline property now owned by the City; perhaps some of the lease revenue could be put into capital improvement projects as part of the asset management process. Vice Mayor deHaan inquired whether ponding on Otis Drive is handled by the City. The City Engineer responded the matter would need to be sent to CalTrans; stated the City does not work on any State highway segments. Vice Mayor deHaan stated staff needs to notify CalTrans, particularly regarding the situation above Broadway; that he is concerned about not having funding available for trees along Appezzato Parkway; inquired how the matter would be addressed. The Public Works Director responded the City has two types of capital improvement Special Joint Meeting Alameda City Council, Alameda Reuse 16 and Redevelopment Authority, and Community Improvement Commission July 27, 2010 projects; stated the City Engineer addressed the traditional capital improvement program, which includes extending the life of a public infrastructure; the other type is annual capital improvement projects, which tend to be maintenance functions; street tree planning falls under annual capital improvement projects; funds would be increased by $10,000 if the proposed budget is approved; the amount could be increased more. The Interim City Manager stated that staff has discussed having a tree nursery which is not part of the budget adoption tonight; the matter could be presented at the first City Council meeting in October. Councilmember Tam stated that she needs help in reconciling the capital improvement program; expenditures have a huge variability; inquired whether the Krusi Park Feasibility Plan, court resurfacing, and Tillman Park improvements would absorb all of the $2.1 million in the first year and no funding would be left over. The City Engineer responded projects are based upon when funding is made available; stated staff did not know whether the City mould have Measure ww funds when preparing the Fiscal Year 2010 -2011 budget; hopefully, grants will be available for park improvements next year. Councilmember Tarn inquired whether the same applies to pedestrian /bicycle improvements. The City Engineer responded pedestrian /bicycle improvements are included in the Park Street Streetscape federal' funding and specifically earmarked for lights, sidewalk, and tree work. Councilmember Gilmore requested clarification of the Harbor Bay Parkway resurfacing. The Public works Director stated Harbor Bay Parkway is one of the Americans Recovery and Reinvestment Act (ARRA) federal funding projects; a second round of ARRA funding became available; the City provided paperwork for Doolittle Drive to Ron Cowan Parkway; the City was in the top ten [to receive federal funding] and then federal funding stopped; the City should be eligible once funding is freed up. The City Engineer stated rumor has it that some funding might be available in September. Vice Mayor deHaan stated that he is concerned with zero park funding for Fiscal Year 2011 -2012; inquired whether Measure WW is the only source available for parks, to which the City Engineer responded a new fund, Roberti -Z -Berg, has been established. Vice Mayor deHaan stated the City is at the mercy of receiving periodic funds to keep parks together; inquired where funding would be generated if federal funding is not Special Joint Meeting Alameda City Council, Alameda Reuse 17 and Redevelopment Authority, and Community Improvement Commission July 27, 2010 available. The Interim City Manager responded the base level would be parcel fees; stated the next level would be State grants such as Roberti -Z -Berg or State bond initiatives; the majority of cities are able to contribute to park improvements from impact fees; the City is lucky to generate $10,000 to $50,000 in park impact fees; hence, the City should focus on upgrading the development impact fee study; another option would be using property sale proceeds; a Capital Improvement. Discretionary Fund has been established this year which is not a recurrent revenue source; the. City has an opportunity to put $2 million to $4 million into the fund; the City has an unfunded liability in terms of capital improvements for streets, curbs, and gutters in addition to the park shortfall; impact fees are not going to be substantial for the City. Vice Mayor deHaan stated parks and libraries will be severely impacted given the State's condition; the City will need to provide its own funding mechanism. The Interim City Manager stated a recurrent revenue source would have to go to taxpayers. Vice Mayor deHaan stated that he is bothered by a zero balance [for Fiscal Year 2010- 2011]. The Interim City Manager stated cities are going to be forced to finance capital improvements and do maintenance; discretionary State and federal dollars might not be available. Vice Mayor deHaan stated street funding has dropped from $3.5 million to $1 million. The Interim City Manager stated the City has to leverage opportunities to do joint venture with non profits so that maintenance dollars can be redeployed. Vice Mayor deHaan stated things are not going to get better; that he is concerned about how the mechanism might work. Mayor Johnson inquired whether there is an update on the State budget. The Deputy City Manager Administrative Services responded the budget is at a standstill; stated the Governor stated that he will not deal with the issue, but will let the next governor deal with the issue; no one seems to be in a hurry. Vice Mayor deHaan inquired whether the State deficit is at $19 billion and holding, to which the Deputy City Manager Administrative Services responded $19 billion sounds rig ht. Special Joint Meeting Alameda City Council, Alameda Reuse 18 and Redevelopment Authority, and Community Improvement Commission July 27, 2010 AGENDA ITEMS 10- CC Public Hearing to Consider Establishing the Proposition 4 (Appropriations) Limit for Fiscal Year 2010 -2011; 10- A CC Resolution loo. 14481 "Establishing Appropriations Limit for Fiscal Year 2010-2011." Adopted; 10- B CC Resolution loo. 14482 "Approving and Adopting the Operating and Capital Budget and Appropriating Certain Moneys for said Expenditures in Fiscal Year 2010 2011." Adopted; 10- CIC Resolution No. 10 -170 "Approving and Adopting the operating and Capital Budget and Appropriating Certain Moneys for Said Expenditures in Fiscal Year 2010- 2011." Adopted, and 10- ARRA Resolution Flo. 48 "Approving and Adopting the operating and Capital Budget and Appropriating Certain Moneys for Said Expenditures in Fiscal Year 2010 2011. Adopted. The Interim City Manager /Executive Director gave a presentation. Mayor /Chair Johnson requested clarification on call provisions. The Interim City Manager /Executive Director stated call provisions are structured and indentured when bond holders are able to be paid off; sometimes call provisions are limited and conditions are structured In a municipal debt as an incentive to the buyer of the municipal debt because no one wants to take x amount of dollars if the bond will be called; the debt service term has not been expanded. Mayor /Chair Johnson inquired whether doing .that kind .of debt .made sense at the time; stated the 2000 AMP bonds that are being refinanced did not make sense even in 2000; policies need to be in place to ensure that bad debt is not done. The Interim City Manager /Executive Director stated a lot of cities do dirt bonds [Community Facilities Districts]; the best ratio is 1 of debt for every $4 of land value; the City needs more elaborate financial policies; municipal debt has variations. Mayor /Chair Johnson stated the issue with the 2000 bonds is that the bonds were taxable. The Interim City Manager /Executive Director stated in general, taxables have been at a higher rate; nowadays, cities can get taxables that are less than a municipal rate because city tax credit is not as good as some taxables; government can no longer budget for just a year. Special Joint Meeting Alameda City Council, Alameda Reuse 19 and Redevelopment Authority, and Community Improvement Commission July 27, 2010 Mayor /Chair Johnson inquired whether the bond that Council did not like a couple of years ago and sent back a number of times cannot be refunded. The Interim City Manager /Executive Director responded the bond would be difficult to refund in today's market; at the time, the bond probably made sense to relieve the pressure in the General Fund. Mayor /Chair Johnson stated Council sent the bond back at least three times and then reluctantly agreed to move forward; Council would not have gone forward if the provisions were know. The Interim City Manager /Executive Director stated refunding the bond over the time period left in the initial bond would result in higher debt service payments; payments would spike by not extending the debt service term beyond what was initially done on the debt. Mayor /Chair Johnson stated policies need to be development to avoid mistakes that have happened in the past, The Interim City Manager /Executive Director stated the City has very low debt ratio; debt is in the future; standards and policies need to be in place before debt is issued. Councilmember /Board Member /Commissioner Matarrese stated the policy approach is the same approach that is being taken with asset managerne balancing the budget is necessary; revenue needs to be generated to fill the budget gap and long term affect; a long team approach should be included as policies are developed. The Interim City Manager /Executive Director stated that she will come back before the holidays with a financial policy similar to the asset management policy. Vice Mayor /Board Member /Commissioner deHaan stated the Interim City Manager /Executive Director stated refinancing cannot be done and that the General Fund would be needed; inquired hove long the bleeding would last. The Interim City Manager /Executive Director responded there is no long -term funding out of the Library; General Fund dollars would be used on a recurring basis until 2014, unless another way is found. Councilmember /Board Member/Commissioner Matarrese inquired whether the $12.1 million [General Fund balance] would drop. The Interim City Manager /Executive Director responded the $1.7 million transfer to the Library would go up to $2.1 million and $2.2 million; stated staff will work very hard to find a solution; another part of the policy would be what would be financed with a thirty Special Joint Meeting Alameda City Council, Alameda Reuse 20 and Redevelopment Authority, and Community Improvement Commission July 27, 2010 year debt; that her first reaction would be to see if some of the bonds could be called to reduce debt service and lower the balance; however, she has not looked far enough in the indenture; right now, her feeling is not to refund something unless money could be saved because the cost of issuance would be too high. Councilmember /Board Member /Commissioner Gilmore stated there is approximately a $10 million difference in Special Revenue Funds (SRF) from Fiscal Year 2010 -2011 to Fiscal Year 2011-2012; reduced revenues are expected; inquired what expenses would be cut. The Interim City Manager /Executive Director responded a number of the SRF are grants, bond proceeds, and CI P Funds, which will have draw downs; expenditure reductions need to be reviewed because revenues have been reduced, in terms of the gas tax and Measure B, which are corning down 10% 20 redevelopment funds are also in the SRF. Councilmember /Board Member /Commissioner Gilmore inquired whether the SRF drop is the result of what the State is doing to the City. The Interim City Manager /Executive Director responded in the affirmative; stated interest would go down; the State is taking redevelopment money and the City is drawing down on capital improvement funds to pay bills and finish projects. Councilmernber /Board Member/Commissioner Matarrese inquired whether the drop includes last year's regular property tax reassessments that will hit the tax roles this year. The Interim City Manager /Executive Director responded in the affirmative for the redevelopment agency and General Fund. In response to Councilrnernber /Board Member /Cornmi.ssioner Tam's inquiry regarding Fire and Police Department expenditures, the Interim City Manager /Executive Director responded in Fiscal Year 2008 -2009, the City did not fully fund all Police positions; netting out salaries is not uncommon if a city knows there will be a large delay in vacancies; Fiscal Year 2008 -2009 figures reflected the Reduction in Force (RIF) and did not include fully funding the positions; in Fiscal Year 2049 -2010, all positions were funded in the Police Department; approximately $800,000 in Police personnel costs were not fully funded in the Fiscal Year 2008 -2009 budget; personnel sheets have been redone to ensure that positions are fully funded; in the year now closing, departments need to absorb additional costs; medical insurance increases have been a common theme across all departments; the Fire and Police Departments have 92 sworn personnel, which will not change this year. Vice Mayor /Board Member /Commissioner deHaan stated one fire station closed which Special Joint Meeting Alameda city Council, Alameda Reuse 21 and Redevelopment Authority, and Community Improvement Commission July 27, 2010.. resulted in a 20% loss in activity; inquired hoar the loss is reflected. The Interim city Manager /Executive Director responded closing the Fire Station is parallel with the number of positions cut in the Fire Department; stated the assessment for Police and Fire will be different and will be based .on ghat makes sense; the goal is not to reduce staffing absent circumstances. beyond. control; that she does not know what the State will do with some of the issues; she thinks revenues are very solid and will stay firm; the City is in a no growth period until 2014. Mayor /Chair Johnson stated federal government projections are 9.5% unemployment until 2014. The Interim city Manager /Executive Director stated California is at 14.6% unemployment; the Bay Area is particularly high; continued the presentation. Vice Mayor /Board Member /Coma ission.er deHaan stated contingency plans need to be in place. The Interim city Manager /Executive Director stated finding gays to protect services is important; sometimes the easiest things. to cut ghat some people believe are nonessential services that are quality of life services; staff is trying to come up. with strategic ways, such as working with consortiums to do non profit, school opportunities, and outsourcing non -core services so that.existing employees can be redeployed someplace else like filling a position in another department; the process is of managing resources is constant. Councilmember /Board Member/Commissioner Matarrese stated an item on tonight's agenda. is a project that would bring revenue and jobs to the City; the leasing program at the former Naval base and the Alameda Point plan will help with the revenue stream so.. that the City can stay steady; the proposed. budget looks good and reflects maintaining a plan that is well thought out, is tight, and is .very conservative; a gray needs to be found to strengthen the revenue stream so that the city can stay steady when the economic experiences deepens. The Interim City Manager /Executive Director stated new revenues are not included in the projections, which are conservative; the city has projects coming forward that are generating jobs in the dead economy; staff has had to revisit some things because generating jobs and property tax makes sense right now; the situation is a give and take. Mayor /Chair Johnson stated Mr. Hausman had some questions [regarding the civic Center garage and theatre /parking structure]. The Interim city Manager /Executive Director stated Special Revenue Funds that have a Special Joint Meeting Alameda city council, Alameda Reuse 22 and Redevelopment Authority, and Community improvement commission July 27, 2010 .1, .2, etc. following the fund number are sub funds; 224 is the Parking Meter Fund; funds pay for the citation process; 224.1 is the Civic Center Garage Fund and contains all parking structure revenue, administration costs through out sourcing, paying for staff, and any debt with respect to the parking structure; a lot of capital is not kept in the fund to pay for debt service. The Deputy City Manager Development Services stated the fund also includes rental income. The Interim City Manager /Executive Director stated the fund also pays for a Dousing and Urban Development (HUD) debt service loan; the fund will be closed when the HUD loan is paid off; the Council /Commission /Board Member's would then need to figure out ghat to do with the excess revenue. C+ouncilmember /Board Member/Commissioner Matarrese stated excess revenues could be used for maintenance. The Interim City Manager /Executive Director stated Fund 621.2 is the Alameda /Oakland Ferry Service fund which has a negative projected cash fund balance; the service is being packaged up to send to WETA; the 000 series are Enterprise Funds; numbers are merged assets and liabilities and are not necessarily negative cash but depreciation; in the very near future, the City will only have two enterprise funds: serer and golf. 10- CC /ARRA /10- CIC Councilmernber Matarrese moved approval of continuing the meeting past 12:00 midnight. Vice Mayor /Board Member /Commissioner deHaan seconded the motion, which carried by unanimous voice vote 5. Councilmember /Board Member /Commissioner Gilmore stated previous discussions have involved surveying the Beltline property; that she has discussed the potential for having a fire station on one of the pieces or property with the Interim City Manager /Executive Director; $400,000 has been set aside for soft costs for a fire station; inquired whether the idea is still being pursued. The Interim City Manager /Executive Director responded in the affirmative; stated a corner piece of the Beltline property could be a good spot for relocation of Fire Station 3; that she thinks looking at a complete site analysis .and location would be warranted; using existing City property for buildings is important because buying property and building the structure costs too much; constructing a building on City -owned land could easily be done with some onetime monies in the CIP Fund; the CIP Discretionary Fund does not include dollars discussed earlier regarding the sale of the employee parking lot Special Joint Meeting Alameda City Council, Alameda Reuse 23 and Redevelopment Authority, and Community Improvement Commission July 27, 2010 but does include two hits of one -time revenues, which are. AMP back payments in the amount of $1.2 million and approximately $800,000 of administrative dollars that had not been charged to the refinanced. assessment districts. for approximately ten years; the CI P Discretionary Fund has. approximately a $2. million projected balance; expenses have not been projected; six to eight months ago, Public Works sold a small portion of property which generated approximately $200,000; at .the tune her recommendation was to put the money into a facility maintenance reserve; the policy is to take one -time property sale revenues and put the money into. an open space. fund; a small amount was used to pay for. the final purchase of the Be property; the question is ghat to do with the money when the City decides to liquidate property. Councilmember /Board Member /Commissioner. Tam inquired whether the $400,000 [set aside for a fire station] is in the General Fund. The Interim City Manager /Executive Director responded the $400,000 is in a reserve fund in the General Fund and is not included in the $12 million General Fund balance. Councilmember /Board Member/Commi.ss Gilmore. stated .the. City is paying a lot of rent to house. fire fighters next to a fire station that is not earthquake safe; a lot of money would. be needed for expensive repairs in order to use the .fire station; the City could spend money on something that could be constructed and City owned instead of putting money into something that the City does not own and would not use long terns; that she is trying the nudge the process along. The Interim City ManagerlExecutive Director stated site location .is not easy, especially because location impacts response tune. Councilmember /Board Member /Commissioner. Gilmore stated a letter has been received. frorn SunCal regarding a development. program; there have been disagreements on hoer things have been charged; that she assumes staff would come back with explanations when discrepancies are reconciled. The Interim City Manager /Executive Director stated that she would review the accounts and ensure that everything is reconciled. Vice Mayor /Board Member /Commissioner deHaan inquired whether the City needs to get some answers from SunCal also. The Deputy City Manager Development Services .responded the City would need. to get information on eligible pre development expenses; however, the point is moot now. Councilmember /Board Member /Commissioner Matarrese moved approval of the budget as presented [adoption of the resolutions]; stated that he appreciates the clarity, sacrifices, and hard work of the entire workforce; he does not expect the budget to be Special Joint Meeting Alameda City Council, Alameda Reuse 24 and Redevelopment Authority, and Community Improvement Commission July 27, 2010 static but moveable through quarterly updates. 'dice Mayor/Board Member /Commissioner deHaan seconded the motion. Under discussion, vice Mayor/Board Member /Commissioner deHaan stated that he is impressed with the work plan; staff has carne a long way; the rainy day is not over; the $12 million [General Fund reserve] is in jeopardy the longer the econom y stays s as is. Mayor /Chair Johnson complimented staff for continuing to refine the budget and make the budget more transparent and understandable; stated the budget [format] gets better and better each year. CouncilmemberlBoard Member /Commissioner Gilmore inquired whether all of tonight's Poorer Points would be posted to the website; further inquired whether a hard copy would be on file at the Library. The Deputy City Manager Administrative Services responded a hard copy is already at the Library; stated staff is figuring out hoer to technologically break the budget into smaller pieces. Vice MayorlBoard Member /Commissioner deHaan stated tonight's meeting has been the most productive meeting in a long time. The Interim city Manager /Executive Director stated a year's worth of planning, concepts, and drafted policies have culminated into something tangible; agendas should be very active in the next year. The Deputy city Manager Administrative Services requested that the Proposition 4 limit be adopted before the budget. Councilrnember Gilmore moved adoption of the resolution. Councilrnember Matarrese seconded the motion, which carried by unanimous voice vote 5. On the call for the question, the original motion carried by unanimous voice vote 5. 10- CC Resolution No. 14483 "Reappointing Ian Couwenberg to the dousing Commission." Adopted. Councilmember Matarrese moored adoption of the resolution. Councilrnember deHaan seconded the motion, which carried by unanimous voice vote 5. Special Joint Meeting Alameda City Council, Alameda Reuse 25 and Redevelopment Authority, and Community Improvement Commission July 27, 2010 10- CC Public Hearing to Consider Adopting a Report on the Collection of Sewer Service Charges on the Tax Roll for Fiscal Year 2010-2011. The Public works Director gave a brief presentation. Councilrnerrber deHaan moved approval of the staff recommendation. Councilmember Matarrese seconded the motion, which carried by unanimous voice vote 5. 10- CC Adoption of Resolution Calling a Consolidated municipal Election in the City of Alameda on November 2, 2010, for the Purpose of Submitting to the Electors a Proposal to Amend the City of Alameda Charter by Repealing Article XXVII on Compulsory Arbitration for Firefighters; and Proposing Said Charter Amendment. Not adopted; 10- A CC Adoption of Resolution Calling a Consolidated Municipal Election in the City of Alameda on November 2, 2010, for the Purpose of Submitting to the Electors a Proposal to Amend the City of Alameda Charter by Adding Sections 3 -20, 17 -18 and 21 -2 regarding Budget Authority of the City Manager and City Council; and Proposing Said Charter Amendments. Not adopted; and 10- B CC Adoption of Resolution Calling a Consolidated Municipal Election in the City of Alameda on November 2, 2010, for the Purpose of Submitting to the Electors a Proposal to Amend the City of Alameda Charter by Section 3 -18 to Allow the City Clerk to Reject All Legal Advertising Bids; by Amending Section 10 -3 to Add a Member to the Public Utilities Board and Convert the City Manager into a Nonvoting Member; By Amending Section 12 -1(C) to Add Restrictions to Public Utilities Board Contracting; and By Repealing Section 22 -8 Regarding the Hours of City offices; and Proposing Said Charter Amendments. Not adopted. (City Attorney) The City Clerk and Interim City Manager gave a brief presentation. Councilmerrber Tam stated that when she was on the Charter Subcommittee, thirty -two different amendments were on the 2008 election; one section relating to specified hours relegated that Council could adopt a schedule. The City Clerk stated there was a measure regarding the Council meeting. Councilrnember Tam stated the measure also addressed to hours of operation because the Planning Department opens at 7:00 a.m. and the Library is open on Saturdays; Council did not want to be prescriptive in City Halls hours of operation. The City Clerk stated that she would double check. Special Joint Meeting Alameda City Council, Alameda Reuse 20 and Redevelopment Authority, and Community Improvement Commission July 27, 2010 Councilmember Gilmore stated that she recalls the measure included hours of operation; previous hours of operation did not meet what is in the Charter; discussions included departments having different hours of operation. The Interim City Manager inquired whether the issue actually went on the ballot or was just discussed. Mayor Johnson, Councilmember Tarn, and Councilmember Gilmore stated the issue gent on the ballot. Mayor Johnson stated all measures passed and perhaps the Charter has not reflected the change yet. Speakers Jon Spangler, Alameda; Ann Spanier, League of Women Voters; and Domenick Weaver, IAFF. The City Clerk stated Section 22 -8 was modified; the following language was struck: "to increase such hours for the necessary accommodations of the public"; the section after the 2008 election reads: "All public offices except for otherwise provided by law shall be open for business every day, except holidays from 9:00 a.m. to 5:00 p.m. subject to modification by Council Councilmember Gilmore stated the Subcommittee thought subject to modification by Council would mean Council could pass an ordinance to modify hours. The Interim City Manager stated her interpretation is different; inquired whether the language allows Council to amend hours by ordinance or resolution. The City Attorney responded in the negative; stated that she recalls that the section was modified in 2008 because the way the Charter read, Council could only increase hours, not decrease hours; what is being suggested now is to repeal the section entirely so that Council would have more flexibility and hours could be set by resolution, ordinance, or policy; making a change now would require a Charter amendment. In response to Councilmember Tam's regarding repealing the section in 2008, the City Attorney stated the matter was not discussed. Mayor Johnson requested the City Clerk to read the section again. The City Clerk read the section again. Mayor Johnson stated that it sounds as though Council can modify the schedule, including Saturdays and Sundays. Special Joint Meeting Alameda City Council, Alameda Reuse 27 and Redevelopment Authority, and Community Improvement Commission July 27, 2010 Councilmember Gilmore stated the Subcommittee's intent was to enable Council to change hours; the Subcommittee had discussions regarding departments having different operating hours and did not want to have a Charter amendment every time Council wanted to change a department's hours; despite what the Charter said prior to the amendment, some departments did not have the correct hours. Councilmember Tarn stated the Subcommittee process eight months; the Subcommittee consulted with all departments; the issues [proposed tonight] did not come up; the proposed amendments have not gone through a fully transparent process and with a meaningful opportunity for public input; that she has not had a full briefing on the implications of the Seal Beach issue [noted by Mr. Weaver]. The City Attorney stated that she can provide a briefing; in addition, Mr. Wiley, the City's Labor Attorney, is also here to provide input. Councilmember Gilmore stated that she appreciates the City Attorney's foresight in having Labor Counsel available for a briefing,whieh does not solve her biggest issue; the Subcommittee went through an exhaustive .process to the point of polling different departments to see if anything .else should be added; that she does not think the issue should be taken lightly; the public needs .to have .the opportunity to ask questions and be educated; amending the Charter should .not be rushed; 2008 was the first time that the Charter was amended; amending the Charter without having the same process the first time around is not good public policy. The Interim City Manager stated that she addressed the proposed Public Utilities Board (PUB) amendment in the past. Councilmember Matarrese stated that he would like to see the proposed PUB amendment go forward because of the inherent conflict of interest; people have time to discuss the issue between now and November; the PUB item is the simplest one. Councilmember Tara stated that she disagrees that the PUB issue is simple. Councilmember Gilmore inquired why the City Manager was put on the PUB; further inquired why the City Manager would be a PUB member if not a voting member. The Interim City Manager responded the Alameda Municipal Power General Manager thought that having the City Manager be an ex- officio would be helpful; stated that she is not aware of any instance where the City Manager has.voted; the Charter is a living, breathing document; the opportunity to amend the Charter only comes around every couple of years unless a special election is called, which would be pricey. Councilmember Gilmore inquired how long staff has been working on the amendments. Special Joint Meeting Alameda City Council, Alameda Reuse 28 and Redevelopment Authority, and Community Improvement Commission July 27 2010 The City Attorney responded some of the proposed amendments have been in the works for over a year; stated the language has not sprung up overnight; the language is a product of concerted staff effort; unfortunately, the Charter Subcommittee declined to meet this year; the General Election would be the cheapest opportunity to do any Charter amendments; the proposed amendments have been brought forth administratively; tonight, no policy action would be taken on any of the resolutions; Council would be letting voters decide. Councilmernber Gilmore stated not having the Subcommittee meet ahead of time should not Have prevented staff from corning forward with the ideas prior to the eleventh hour; staff is requesting Council to take an action tonight at the last possible minute to allow the matter to go forward on the November election; staff could have brought the matter forward administratively a month or two ago; that she is not imputing any bad motive by staff; however, from a public policy standpoint, the matter appears rushed and ill considered to be brought up at the eleventh hour. Vice Mayor deHaan inquired when would be the next window of opportunity [to address the issues]. The City Clerk responded for a General Election, two years; stated the issues could be consolidated with countywide elections. Councilmernber Tarn inquired whether the fire fighter initiative was relegated to November, 2011. The City Clerk responded in the affirmative; stated the election would not be a General City election. Councillmember Gilmore inquired whether putting more issues on the ballot would help cost -wise. The City Clerk responded costs would not be significantly more; stated the City would already be bearing the cost of the election. The Interim City Manager stated the only new resolution is regarding delaying the effective date of any ordinance that would require an expenditure of funds until funds are identified; the issue is something that the city should consider because initiatives spring up left and right. Councilrnernber Tangy stated the binding arbitration resolution is new to her; the issue was not brought up when she served on the Charter subcommittee. The Interim City Manager stated the issue has been a major discussion as long as she has been Interim city Manager; the city has an opportunity to move forward on Special Joint Meeting Alameda City Council, Alameda Reuse 29 and Redevelopment Authority, and Community Improvement Commission July 27, 2010 something that would reflect the Fiscal Sustainability Committee's theme, which would allow voters to decide whether or not to have binding arbitration given today's economic reality; putting the measure on the ballot would involve a through public process; that she does not think management should not be able recommend something that is vital to the City. Councilmember Matarrese noted the reason the [fire fighter initiative] issue has been scheduled for November 2011 is because the city had been waiting to see what PERS would do. Councilmember Gilmore seconded the motion. Under discussion, Vice Mayor deHaan stated. Mr. Weaver noted that binding arbitration was established for fire fighters in 980; a poison pill was added to include that funding would be necessary in order to occur. The City Attorney stated the original binding arbitration provision was not put on the ballot by the city but was sponsored by the union; the city put on a companion measure which stated that if binding arbitration is invoked and .the arbitrator gives an award that is beyond ghat the city has been paying, then the City can also invoke it's right to send the award to the voters; the issue is outlined in Section 17-17. Vice Mayor deHaan stated the basic concern is why there is binding arbitration for one union and not others; inquired how existing negotiations would be affected if the proposed resolution gent forward. Joe Wiley, Labor Negotiator, responded the. ground. rule would be predicated on the existence of the charter amendment; stated binding interest arbitration could be bargained if council gave authority to do so; the issue would be a non mandatory subject of bargaining. Vice Mayor deHaan inquired whether the issue has been done for any other unions, to which Mr. Wiley responded not to his knowledge. The City Attorney stated parties could always elect to go to arbitration when there is a dispute; arbitration does not have to be mandatory or binding. Vice Mayor deHaan inquired why one bargaining unit would have something that others would not. Councilmember Tam responded fire fighters are precluded from striking. Mr. Wiley stated that fire fighters and police officers are precluded from striking; the Seal Beach decision stated having a strike that would create an impact to public health Special Joint Meeting Alameda City Council, Alameda Reuse 30 and Redevelopment Authority, and Community Improvement Commission July 27, 2010 and safety would be unlawful and would be subject to being enjoine; the Seal Beach case does not apply to the city's circumstances; the Seal Beach case addressed a mandatory subject of bargaining in which .an employee would be fired without review if engaged in the conduct [strike]; a mandatory subject bargaining cannot be placed on the ballot without first having a meet and confer; two decisions have been handed down on whether binding interest. arbitration is a mandatory, permissive subject of bargaining; both the Public Employment Relat Board.and District court of Appeal found interest arbitration is a permissive, non mandatory subject of bargaining and expressly held that meeting and conferring with the union first is not necessary prior to putting the matter on the ballot. The city clerk restated Councilmember Tam's motion: to move approval to reconstitute the Charter Subcommittee in preparation for the November.2011 election, Councilmember Tam stated that her motion includes beginning discussion in 2011. Councilmember Matarrese inquired whether there is a March election next year. The City Clerk responded elections are held in March in odd numbered years and in June and November every year. Councilmember Matarrese stated the three proposed amendments are critical and need to be put before the public because of serious budget implications and good government. Councilmember Tara stated that her motion remains the same; in all fairness to the proposed fire fighter initiative, it should be juxtaposed against each other and should not separately preempt the measure. Councilmember Matarrese inquired whether the matter would not be discussed until November. Councilmember Tarn stated that her notion is to have discussions starting in 2011 in preparation for the November 2011 election and to reconstitute the council charter Subcommittee because the Subcommittee might change after the November 2010 election. Mayor Johnson inquired whether the Subcommittee could start working on the matter before January, 2011; stated the start time should. be flexible so that the current council Subcommittee could start working on the matter sooner. Councilmember Tam stated under the Mayor's advisement, the Subcommittee would have the option to work on the matter sooner rather than later. Special Joint Meeting Alameda city council, Alameda Reuse 31 and Redevelopment Authority, and Community Improvement Commission July 27, 2010 Mayor Johnson stated the Subcommittee should start earlier because more cleanup language might be needed. Councilmember Gilmore stated the same process should be resurrected regarding asking Department Heads for suggestions; inquired whether the City Attorney's staff could be utilized, to which the City Attorney responded in the affirmative. Vice Mayor deHaan inquired whether Councilmember Tam modified her motion to include starting discussions earlier. Councilmember Tam responded that she has not modified her original motion; under advisement from the Mayor, the Subcommittee would have the option of starting discussions earlier than 2011 if schedules work out; that she thinks it would be very hard pressed for Councilmember Gilmore and her to find time to work with the departments because of going dark in August, having a full. schedule in September, October being the election season, and the election is in November; however, every effort will made to do so. Can the call for the question, the motion carried by unanimous voice vote 5. ORAL COMMUNICATIONS (10- CC) Melody Marr, Alameda Chamber of Commerce, stated that she was present to wish the Council farewell. COUNCIL REFERRALS (10- CC) Consider Directing the Interim City Manager to Prioritize an Alternative Process and Plan for Alameda Point. Councilmember Matarrese gave a brief presentation. SI)eakers: Jon Spangler, Alameda; and Pat Keliher, SSC Alameda. Mayor Johnson stated that the item is Councilmember Matarrese's referral, not something that comes from staff. Councilmember Matarrese stated that he always looks for alternatives; he submitted the Council Referral on July 21, 2010 as a proposal for where to go. next; new elements have arisen, particularly, taking a look at the Regional Housing Deeds Assessment, which is a good place to start; the City would always work with the Navy, Veteran's Administration, and State Tidelands Trust; that he wants a specific plan on how the City will move forward post the Exclusive Negotiating Agreement (ENA). Special .point Meeting Alameda City Council, Alameda Reuse 32 and Redevelopment Authority, and Community Improvement Commission July 27, 2010 Mayor Johnson stated some items on the Council Referral] have already been done; that her preference would be to have staff come back with options; Council would need to talk about a process; a broader look needs to be taken before specific direction is given. Councilmember Gilmore stated that she agrees with a lot of the points made tonight; Council needs to take a deep breath; staff should look at a broad set of options and bring the matter back to Council for discussion so the public can come forward and provide ideas; that she has heard several different ideas from the public; some of the ideas do not include jobs or housing; Council should be very deliberate and listen to the public; encouraged the public to contact Council or staff with preferred options. Councilmember Tam stated that she concurs with Councilmember Gilmore' s. and Mayor Johnson's comments; she feels that the wheel has been reinvented right after .th.e wheel seemed not to be working; everything listed on Councilmember Matarrese's referral has been evaluated in the course of getting to a Master Plan; redeveloping Alameda Point is important, is a goal in the budget, but is not as important as developing a project that can be supported by the community and is financially and environmentally sustainable; the financial part is a big deal; the federal government does not think the world revolves around her and Alameda; having funding to get the project going is important; that she thinks providing direction is premature until the City can identify a funding source for conveyance of the property. Vice Mayor deHaan stated that he is appalled that people are accusing Council of having secret plans; Councilmember Matarrese's Council Referral is logical; local, non- profit development corporations have been used; Councilmember Matarrese is suggesting looking into the matter and nothing more than that; everyone has different thoughts; Councilmember Matarrese has set a baseline; a lot of caveats need to be included to provide leeway in order to put the issue in property context; Council and staff are not starting at square one. Mayor Johnson stated that she does not want staff to be limited what options are brought to Council. Councilmember Matarrese stated limiting options is not the point; the first point would be to focus on job creation and commercial development; the focus has always been housing; that he is advocating local control; he wants to give direction on maximizing leases and building a commercial community which has always been lacking. Mayor Johnson stated staff should come back to Council with a full range of options; the ideas are fine to consider; consequences would not be known by giving specific direction in a very narrow area; comprehensive options need to be brought back. Councilmember Matarrese stated that he is proposing a comprehensive plan for job Special Joint Meeting Alameda City Council, Alameda Reuse 33 and Redevelopment Authority, and Community Improvement Commission July 27, 2010 creation and commercial development at Alameda Point, including, but not limited to, points listed in the Council Referral. Mayor Johnson suggested that staff come back with options in September regarding how to proceed. Councilrne r ber Gilmore stated staff should take a reasonable amount of time; that she would like to see a full blown discussion on the full range of options and include the public; she has heard options that include a public land trust which seems to be diametrically opposed to things discussed tonight; that she does not want to give specific direction to start down one path and limit options. Vice Mayor deHaan stated the Preliminary Development Concept (PDC) and Su ncal plans have had commonalities; the core is very common and could be developed; the marketplace should be reviewed. Councilrnemlber Tarn stated that her preference is to give direction on finding a funding stream and getting a project that is fundable as opposed to trying to decide the project direction. Vice Mayor deHaan stated funding streams are extremely important; funding streams could be created by developing large parcels= understanding the overall project is important. Councilrnember Tarn stated the City had a master developer, Alameda Point Community Partners, who lost financing; another developer. has looked at a potential maximum build out of over 4 units; staff came .back with negative rates of return; inquired whether Vice Mayor deHaan thinks. there...is some magic fundable project, to which Vice Mayor deHaan responded in the affirmative. Mayor Johnson stated Council cannot provide specific direction tonight; options need to be reviewed; giving specific direction on component parts would be a mistake. The Interim City Manager inquired whether the direction is to include council Referral items, but not limit the options, to which Mayor Johnson responded in the affirmative. Councilmember Matarrese stated staff should consider the items and come back in September or October. Vice Mayor deHaan stated that he does not see anything revolutionary in the Council Referral. Councilrnember Matarrese stated that he wants the broadest possible point as long as the council Referral items are included. Special Joint Meeting Alameda city Council, Alameda Reuse 34 and Redevelopment Authority, and Community Improvement Commission July 27, 2010 Councilmember Gilmore stated nobody wants financial analysis; that she looks forward to staff's insight on the matter. Councilmember Gilmore moved approval of incorporating everything discussed. Vice Mayor deHaan noted transportation is missing. The motion carried by consensus. 10- CC Discuss /Take Action on the City Attorney Policy of Not Providing Legal Opinions to Councilmembers in Advance of Meetings. Councilmember Gilmore gave a brief presentation. Mayor Johnson inquired what Section 8 -2 of the Charter states, The City Attorney responded the last phrase of the last sentence of section 8 -2 states "The City Attorney shall be the legal advisor of and attorney and counsel for the City and for all officers and boards thereof in all matters relating to their official duties, and whenever requested in writing by any of them, he shall give his or her legal advice in writing"; a legal opinion was given in writing; that she advised ..each individual Councilmember that the legal opinion would be handed out in Closed.Session which has been done many tunes before; that she needs to have some discretion as to how best to do her j ob to protect Council and the City; she made it clear that the opinion was going to be provided in Closed Session, but that any Councilmember could carne to her office to read the opinion in advance; the opinion was to be collected at the end of the Closed Session as has often been done which is not a violation of the City Attorney's duties under the Charter. Councilmember Gilmore stated the opinion was particularly lengthy as well. as the staff report; she went to the City Attorney's office to read the opinion within an hour before the Meeting started; the lengthy opinion was hard to digest; the City Attorney's procedure assumes that she would only read the opinion once; the City Attorney made some vague comments regarding concerns with leaks coming out of Closed Session; that she has not been accused of a leak; she does not understand .why she could not have a copy of the opinion to read at her leisure; that she advised the City Attorney that she had no problems with giving the opinion. back; she has no interest in keeping confidential materials; the City Attorney is making it hard for her to do her job; the Charter does not state that a Councilmember needs to go to the City Attorney's office to read an opinion. Mayor Johnson inquired whether Councilmember Gilmore's intent is to put the matter on an agenda for discussion, to which Councilmember Gilmore responded in the Special Joint Meeting Alameda City Council, Alameda Reuse 35 and Redevelopment Authority, and Community Improvement Commission July 27, 2010 affirmative. Mayor Johnson stated the matter is hard to discuss at 1:45 a.m.; that she does not think that the City Attorney has violated the terms of the Charter; perhaps Councilmember Gilmore is looking for clarification on document handling. Councilmember Gilmore stated that she wants consensus to bring the matter back for a full -blown discussion. Mayor Johnson stated that she would prefer to bring the matter back rather than discussing the matter at 1:45 a.m. Councilmember Gilmore stated that she is in concurrence. Councilmember Tam moved that the matter be brought back. Councilmember Gilmore seconded the motion. Under discussion, vice Mayor deHaan stated past practices have been to bring legal opinions to Closed session. Councilmember Gilmore stated this time, she found out about the existence of the opinion beforehand. Vice mayor deHaan stated a hard copy has never been provided to Council [to keep] in the past. Mayor Johnson stated the City Attorney has followed past practices; Councilmember Gilmore runts to discuss the issue. Counciimember Matarrese inquired whether the intent would be to discuss the matter or provide a policy for handling confidential documents. Mayor Johnson stated the discussion and/or policy would need to be addressed when the matter is heard. Councilmember Gi stated that she wants the matter agend.ized for further discussion, and wants some sort of direction to come out of the discussion. Mayor Johnson stated the process followed by the City Attorney has been consistent with past practices. Councilmember Gilmore stated Council has not affirmed policy and direction. Special ,point Meeting Alameda City Council, Alameda Reuse 36 and Redevelopment Authority, and Community Improvement Commission July 27, 2010 Mayor Johnson stated a policy is nowhere to be found if there is one. On the call for the question, the motion carried by the following voice vote: Ayes: Councilmembers Gilmore, Matarrese, Tara and Mayor Johnson 4. Noes: Vice Mayor deHaan 1. COUNCIL COMMUNICATIONS 10- CC Consideration of Mayor's nomination for .appointment to the Public Utilities Board Mayor Johnson nominated Madeline Deaton for appointment to the Public Utilities Board 1 g CC Councilmember Gilmore inquired why Council did not find out about the documentation given to the District Attorney on May 26, 2010 until sic weeks later. The City Attorney responded the District Attorney's office requested that the matter be kept confidential pending their investigation; stated it was only at the insistence of the attorneys for the City and Interim City Manager given the fact that it was necessary to hold a Closed Session regarding Suncal, that precipitated the need to make the matter public. ADJOURNMENT There being no further business, Mayor /Chair Johnson adjourned the meeting at 1:47 p.m. Respectfully submitted, Lara Weisiger, City Clerk Secretary, C I C The agenda for this meeting was posted in accordance with the Brown Act, Special Joint Meeting Alameda City Council, Alameda Reuse 37 and Redevelopment Authority, and Community Improvement Commission July 27, 2010 CITY of ALAMEDA Memorandum To: Honorable Mayor and Members of the City Council Honorable Chair and Members of the Community Improvement Commission From: Ann Marie Gallant Interim City Manager/interim Executive Director Date: September 7, 2010 Re: Authorize the Community Improvement Commission of the. City of Alarneda to Enter into an Exclusive Negotiation Agreement.. w.ith Warmington Residential for Redevelopment of the City's Corporation Yard Located at 1515 Fortmann Ifl!'ay and the City's Animal Shelter Located at 1590. Fortmann Way Approve an Exclusive Negotiation Agreement by and between the Community Improvement Commission and Warmington Residential for Redevelopment of the City's Corporation Yard Located at 16.16 Fortmann Way and the City's Animal Shelter Located at 1590 Fortmann Way BACKGROUND The City of Alameda recently adopted amendments to the City's General Plan and Zoning Ordinance to encourage the redevelopment of underutilized industrial properties in the Northern Waterfront area in .a manner consistent with community values and priorities. The City Council adopted .the Northern Waterfront General Plan Amendment (Northern Waterfront GPA) in 2008 and amendments to the Zoning Ordinance in 2009, which changed the predominant industrial and warehouse land uses designations within the .City's Northern Waterfront GPA area to a mix of residential, commercial, office, marina and open space .uses. The Nort hern Waterfront GPA area is also located _within the Community Improvement Commission of the. -`City of Alameda (CIC) Business and Waterfront Improvement Project (BW I P) redevelopment area due to its physically and economically blighted properties. In accordance with the City's Northern Waterfront .GPA, Zoning Ordinance, :and. BWIP plan, the City Council adopted the Grand Marina Master Plan proposed by Warmington Residential (Warmington), which includes redevelopment of 3.5 cores of property along the waterfront. The Warmington project consists of 40 detached single- family housing units,. including six below market rate units, 0.43 .acres of waterfront park, and improvements to the public access waterfront path (Grand..Marina Village ..Project). The Grand Marina Villa a Pro ect has sold nits to data a,d rAantle► n art buildin, g A. Honorable Mayor and September 7, 2010 Members of the City Council Page 2 of 5 Honorable Chair and Members of the Community Improvement Commission permits for 10 more units. The improvement of the waterfront path is near completion and the park space is scheduled for construction this month. The City's Corporation Yard located at 1616 Fortmann Way and the C.ity's Animal Shelter located at 1690 Fortmann Way (City Sites) are situated adjacent to the Grand Marina Village Project within the Northern Waterfront GPA and B'tl11IP areas .and are designated as specified Mixed use in the Northern Waterfront GPA and as Neighborhood Residential Planned Development District in the city's honing Ordinance. The Northern Waterfront GPA (Land Use Program Policy C- 111..6) states that the Grand Marina site, consisting of the Grand Marina Village Project area, existing Animal shelter, Corporation Yard, and Pennzoil property, should. be redeveloped with a mix of new uses, which may include.. residentil and. open space, among other uses. The Grand Marina Master Plan also contemplated redevelopment of the City Sites as residential, although it did not include. detailed plans or approvals for it. The City's current fiscal year budget includes $376,4.00 to study the relocation of the City sites, including the identification of new locations more compatible .with these uses, preliminary site planning and design, and cost estimates. A summary of the potential benefits to the City and CIC of the redevelopment of.the City Sites include: Implementing the redevelopment of the City Sites in accordance with the desires of the citizens of Alameda, the City's Northern Waterfront GPA and the CIQ's planning goals and rules; Increasing the potential for new. revenues to the CIC's BWIP area by redeveloping key properties consistent with the CIC's BWIP redevelopment plans; Facilitating the relocation of the City sites to other more appropriate locations within the City; Acquiring the City Sites from the City by the CIC at fair market value, creating one -time revenues for the City's General Fund; Disposing of City Sites at values. which are consistent with and in furtherance of California redevelopment laws and the CIC's BWI P plan; Improving local infrastructure within the BWIP area, such as streets and landscaping, without generating additional maintenance costs to the City; and Creating momentum for the potential redevelopment of other sites within the Grand Marina area, including the Pennzoil property. Honorable Mayor and September 7, 2010 Members of the City Council Page 3 of 5 Honorable Chair and Members of the Community Improvement Commission DISCUSSION Staff recommends that the City authorize the CIC to enter into an Exclusive Negotiation Agreement (ENA) with Warmington to redevelop the City Sites as housin g p comparable to Warmington's adjacent Grand Marina Village Project, in order to.further the stated goals and policies of the Northern Waterfront GPA, zoning Ordinance, and. B'l IP (Attachment 1). The ENA provides a roadmap for negotiations b.et e.en :the C.IC and Warmington, which is intended to result in the execution of: a Disposition and Development Agreement (DDA) for the .acquisition and development of the Cit Sites b y y Warmington. Prior to the execution of .the DDA, the City would have to. approve, by ordinance, sale of the City Sites to the CIC upon an affirmative vote of:four members of the City Council. Upon acquisition of the City sites by the CIC at fair market value, the CIC would then transfer the City Sites to. Warmington for development accordin g to the terms of the DDA and consistent with the City's and C IC's stated policies, plans and goals. The following summarizes the major terms of the proposed ENA: Project Description. Warmington proposes building 25-27.:. market rate. and affordable single family detached housing units, as well as p ublic infrastructure and amenities (Project). Warmington's proposed conceptual site plan is Exhibit 1 of the ENA (The ENA and its exhibits. are attached as Exhibit .1 Subject of Negotiations. The subject of negotiations between the CIC and Warmington will include timing and assurances related to..site acquisition and relocation; site investigations; financing commitments; regulatory. approval s and design, construction, and completion of the Project. Term. The initial terra of the ENA is 18 months with potential for an administrative extension of 90 days at the sole discretion.... of the Executive Director. Exhibit 2 of the ENA includes an ENA Milestone Schedule. Developer studies and Investigations. Upon execution. of the. ENA, Warmington will commence.geotechnical and environmental testing f the City y Sites. The results of the. testing will be delivered to the CIC by December 3, 2010. Depending on the results, Warmington. will make a determ nation by December 13, 2010, as. to whether.. to proceed with the entitlement and implementation of the. Project. If 11Varmington proceeds .with the Project, the will J y make the required good. faith and cost. recovery deposits. (described in more detail below) and negotiation of the DDA will commence. Because these studies are of great value to the City and CIC in redevelopin the fit sites if g y Warmington elects not proceed with the Project and terminates the ENA, the CIC will reimburse Warmington within 60 days for.the actual costs of the g eotechnical and environmental testing for a not -to- exceed amount of $100,000. Honorable Mayor and September 7, 2010 Members of the City Council Page 4 of 5 Honorable Chair and Members of the Community Improvement Commission Good Faith Payment. On December 13, 2010, Warmington. shall submit to the CIC a good faith payment of $25,000 unless the ENA has.. been previously terminated by Warmington. The good faith payment is intended to ensure that Warmington will proceed diligently and in good faith to perform their obligations under the ENA and can be used by the CIC to underwrite community events aimed at furthering the City's economic development goals. CIC Cost Recovery. On or before December 13, 2010, 1111'armington will deposit. an additional $25,000 to reimburse the CIC for its staff, consultant and .legal costs associated with negotiating the DDA and is required to. replenish the post recovery account whenever it falls below $5,000 for a total. not -to- exceed amount of $50,000. CIC staff is not obligated to perform its obligations under the ENA until this deposit has been received. FINANCIAL IMPACT As described above, the ENA includes a provision for the reimbursement of staff, consultant, and legal costs associated with negotiating the DDA fora total not -to- exceed amount of $50,000, and CIC staff is not obligated to perform its obligations under the ENA until this deposit has been received. There is no financial impact to the City as a result of this recommended action. MUNICIPAL CODE /POLICY DOCUMENT CROSS REFERENCE The proposed ENA is consistent with the City's Northern waterfront OPA, Zoning Ordinance, and the CIC's BWIP plan. ENVIRONMENTAL REVI At this time, environmental review is not .required as the proposed ENA is a preliminary agreement that is needed in order for parties to gather additional information about_ the feasibility of the project. This action is exempt. from CEQA _pursuant to .section .15262 (feasibility and planning studies as well as sections .15306 (information collection) and 15061(b)(3) (general rule) of the CEQA Guidelines. CEQA review of any actual development proposal will occur once there is sufficient information about the proposed project to allow for meaningful evaluation of the project's environmental impacts. If the parties enter into a DDA, such approval will be subject to CEQA. RECOMMENDATION 1) Authorize the Community Improvement Commission of the City of Alameda to enter into an Exclusive Negotiation Agreement with Warmington Residential for Honorable mayor and September 7, 2010 Members of the City Council Wage 5 of 5 Honorable Chair and Members of the Community Improvement Commission redevelopment of the City's Corporation Yard located at 1615 Fortmann Way and the City's Animal Shelter located at 1590 Fortmann Inlay 2} Approve an ENA by and between the CIC and Warmington for redevelopment of the City's Corporation Yard located at 1515 Fortmann Way and the City's Animal Shelter located at 1590 Fortmann Way. spe fully submitted, Je ifett De uty dity Manager Exhibit: 1) Exclusive Negotiation Agreement by and between the Community Improvement Commission of the City of Alameda and Warmington Residential for Redevelopment of the City's Corporation Yard Located at 151.6 Fortmann Way and the City's Animal Shelter Located at 1590 Fortmann Way cc: Michael W. McClellan, Warmington Residential EXCLUSIVE NEGOTIATION AGREEMENT THIS EXCLUSIVE NEGOTIATION AGREEMENT (the "Agreement is entered into this day of September, 2010 by and between the COMMUNITY IMPROVEMENT COMMISSION OF THE CITY of ALA,MED.A, a public body corporate and politic, "Commission and Warmington Resident California, a California corporation. THIS AGREEMENT is entered into on the basis of the following facts, intentions and understandings of the parties: The purpose of this Agreement is to initiate and provide a roadmap for negotiations exclusively between the Commission and the Developer related to ultimately entering into a Disposition and Development Agreement "DDA for the acquisition and developm of certain City owned property located at 16 Fortnum. Way and 1590 Fortmann Way (the "City Sites This Agreement will also address funding and reimbursement understandings between the parties. including terms and conditions for reimbursement whereby the Developer agrees to reimburse the Commission for certain Commission staff and consultant costs and the Commission agrees to reimburse Developer for certain Developer funded studies related to the City Sites in the event Developer elects not to enter into a DDA. 1) Identify the components of the development plan and the public b enefits, Th e components include a) Site Acquisition and Relocation b) Market Date Mousing C) Affordable Housing d) Public Infrastructure and .Amenities e} Phasing 2) The tinging an assurances that the current City uses on the City Sites can be relocated in a timely manner and the tinning related to the Commission" s acquisition of the City Sites from City. 1) The tinning, scope, and method for providing site related studies, constraints analysis, consideration and financing commitments, 4) The process for 'ensuring compliance with a li d 1 3.i I l aws, 1 WC-14-3820 v4 5 The timing and manner the Developer will provide drawings, elevations, and other depictions of the design and construction details for the development; 6) The timing, scope, and method for securing all required regulatory approvals; and 7) The tinning and method by which completion of the development will be secured= C HISTORY of ACTIVITIES TO DATE The City Sites are currently used for a corporation yard and an animal shelter. Immediately to the east of the City Sites, Developer is in the process of developing a multi -phase project redeveloping and converting former industrial lands to residential and open space uses in furtherance of the City's Northern waterfront General Plan amendment and the Grand Marina Master Plan (the "-rand Marina Pro ect The City and Commission planning documents adopted during 2006 -2007 contemplate the removal of the current uses on the City Sites and the removal of the current industrial uses on the Pennzoil facility located adjacent to and immediately westerly of the City Sites. The Staff Report dated April 20, 2010 for a Special Joint Session of the Commission, the City Council and the Alameda Reuse and Redevelopment Authority (ARRA) states: "The success of the [Grand Marina] project will strengthen the local economy by generating construction jobs and increasing property values, and is likely to have a positive effect on the viability and tuning of redevelopment of the adjacent Shell /Pennzoil property and Chipman Warehouse site, as well as other properties such as the Del Monte building and Encinal Terminals site." Recently, Developer commenced site work and residential development of the Grand Marina Project and the parties have been working cooperatively to improve this area for the past several years. Loth the Commission and Developer desire to continue on the path of facilitating high quality, residential development within redevelopment areas. D PROJECT DESCRIPTION The Developer is proposing to build both new market rate and affordable housing on the City Sites, as well as public infrastructure and certain amenities (the "Project The parties acknowledge that the Conceptual Site Plan attached hereto in Exhibit I and incorporated by reference (which identifies approximately 25-27 single family detached homes), has been prepared prior to Developer conducting due diligence of the City Sites and is for illustrative and preliminary discussion purposes only, as hirther described in Section 8. E BENEFITS TO THE COMMISSION AND CITY The Commission and City would realize potential public benefits by entering into this Agreement, and ultimately entering into the DDA for the sale and conversion of the City Sites for residential uses. Economic development and fiscal benefits would include land sale proceeds, public infrastructure improvements, new tax revenues from placing new and higher value residential units on the tax rolls, utility user taxes, solid waste fees; one -time construction improvement taxes; and real estate transfer taxes from the initial and future sale of hones. In 2 Nvc- 143820 v4 addition, the conversion of former industrial, and municipal uses to residential and mixed uses proximate to the City's attractive waterfront will accelerate additional economic activity and create a more sustainable and livable community favorably impacting nearby properties. F INTERESTS of THE PARTIES l Commission Interests are to: a) Facilitate the orderly redevelopment of the Grand Marina Master Plan in accordance with the desires of the citizens of Alameda, and the Commission's planning goals and rules; b) Increase the potential for new revenues to the Conu plan areas by redevelopin key properties consistent with the Commission's Redevelopment .Plans and the City's Northern waterfront General Plan. Amendment: C) Facilitate the relocation of the City Corporation Yard and Animal Shelter to other more appropriate locations within the City; d) Upon acquisition of the City Sites by the Commission, dispose of Commission land at values as part of a DIVA which are consistent with and in furtherance of California's Redevelopment laws and its redevelopment rules; and e) Improve local infrastructure within Commission areas, such as streets and landscaping, without generating additional costs to the Commission z or city. 2) Develgpe Interests are to: a) Conduct and Band "up front" preliminary due diligence investigations and studies of environmental and geotechnical constraints of the City Sites during the team of this Agreement to better assist the parties in reducing Project risks, formulating feasible Pro ect tinning benchmarks and structuring the teams of the DDA to address updated site constraint and cost information. b) Establish a successful business plan that is based on and achieves an industry accepted rate of return on the investment for the development and construction of a high quality residential neighborhood. C) Provide for the improvement of public infrastructure to erffiance the value of the Property for the benefit of the proposed residential neighborhood, waterfront visitors, and the residents of the City of Alameda. d) Achieve certain timing assurances that the City will be able to relocate the current municipal uses on the City Sites and convey the 'City Sites to the Commission within a reasonable timeframe. .3 we- 43820 v4 e) Initiate its own efforts to ne its private part ac of the Pe moil site, as part of its assessment of the viabilit of a more comprehensive conversion of the current industrial uses proximate to its Grand Marina Project, THE COMMISSION AND DEVELOPER AGREE as follows: Section 1. Good Faith Negotiations The Commission and the Developer, acknowled that time is of the essence., a to the Ne Period set forth in Section 2 of this A and to ne dili and in g ood faith within that Ne Period. Section 2. The Negotiatin Period !M (a) Initial Term. The initial term of this Exclusive Ne A (the "Initial Necrotiation Period") shall be ei (l 8) months commencin on the date of full �n execution of the A P Extensions of the Initial Neg.o.tiatin Period. If upo expiration of the Initial Ne Period, the Developer and the Commission have not executed a DDA, then the Commission's Executive Director ma at the written re of the Developer, or at her sole discretion, approve a first administrative extension of the Initial Ne Period for a period of ninet 90 da Such administrative extension ma be g ranted if and onl if, in the sole determination of the Executive Director sufficient pro has been mad An extension of the Th e Initial Ne Period shall be in writin r I -I ne; Neorotiation Period as it ma be extended 2� t:� 4:� t� pursuant to the First Extension, if applicable, is referred to in this A as the "Neer o tiatio 11 Period." (e) Termination. Consistent with Section 14 5 l this A shall automaticall terminate upon the expiration of the Ne Period, unless the parties mutuall a to an additional extension period, the second extension of which must be approved b the Commission. Section 3. Roles of the Parties Durin the Ne Period Developer and Commission shall ne the terms of a DDA in accordance with a performance milestone schedule ("Milestone Schedule") attached hereto in Exhibit 2 and incorporated b reference. The Developer shall complete the due dili necessar to enter into the proposed DDA in accordance with this Milestone Schedule. Section 4. Good Faith Payment (a) Pqynient i imin. On or before December 13, 2010, unless this A has been previousl terminated b Developer, the Developer shall submit to the Commission a g ood faith pa (the `good Faith Pa in the amount of Twent Five Thousand Dollars ($25,000) to ensure that the Developer will proceed dili and in g ood 4 wc-143820 v4 faith to perform all of the Developer's obligations under this Agreement. This Good Faith Payment is in the form of cash, certified or cashier's check.. (b) Uses The Good Faith Payment can be used by the Commission/ City to underwrite community events aimed in part at furthering economic development and for which Developer, if it so elects, will receive corporate sponsorship credit, and for other appropriate Commission/City purposes. Section 5. Failure of De -vela ear to Nevtlate in Good. Faith In the event the Developer fails to negotiate in good faith, the Commission shall give written notice thereof to the Developer specifying in reasonable detail the grounds for the Commission's determination that the Developer has failed to negotiate in good faith. Following the receipt of such notice, the Developer and the Commission shall have ten (10) working days to resume good faith negotiations. If the Developer is not then negotiating in. good faith in the determination of the Executive Director, the Commission may terminate this Agreement. In the event of such termination by the Commission, none of the parties shall have any further rights against or liability to the other under this Agreement. Section 6. Failure of Commission to l ecrot a.te in Good Faith In the event the Commission fads to negotiate in good faith, the Developer shall give written notice thereof to the Commission specifying in reasonable detail the grounds for the Developer's determination that the Commission has faded to negotiate in good faith. Following the receipt of such notice, the Commission and the Developer shall have ten 10) working days to resume good faith negotiatio ns. If the Commission is not then negotiating in good faith, the Developer may terminate this Agreement. In the even of such termination by the .Developer, none of the parties shall have any further rights against or liabilit to any other party or parties under this Agreement. Section 7. Commission Cost Recoye- lReimbursernent (a) Developer-Funding of Studies Investigations. Consistent with the Milestone Schedule, the parties contemplate that Developer shall initialler .undertake, at its own cost and expense, 1) preliminary geotecl and soils studies, including but not limited to an assessment of the bay mud liquefaction feasibility of constructing on the City Sites, and 2) a phase I environmental site assessment, and if needed, a phase 2 environmental assessment, covering the City Sites ("'Developer Funded Studies (b) Developer Funding of Staff and Consultant Costs. Consistent with the Milestone Schedule, the parties contemplate that DDA negotiations will substantially* occur subsequent to the .Developer's completion of its Developer Funded Studies. Accordingly, concurrent with and independent of its payment of the Good Faith Payment described in Section 4, but in no event later than December 13, 2010, the Developer shall make an initial deposit in the amount of twenty -five thousand dollars ($25,000) to reimburse the Commission for a limited scope of identified Commission and City staff and consultant costs, as provided in this Section 7 ("Negotiating Costs Deposit"). Subject to receipt of notice from Commission, Developer shall within five (5) warping days, replenish the cost recovery account ("Negotiating Costs Account we -143820 v4 whenever it falls below five thousand dollars ($5,000), but in no event shall Developer be obligated to deposit into the Negotiating Costs Account a total sum in excess of fifty thousand dollars ($50,000) for the reimbursement covered by this Section 7. (c) Scone of Funded Staff and Consultant Services. The Negotiating Costs Account shall be applied to certain Commission/City staff and consultant services covering: 1 meetings with Developer to negotiate the DDA, and 2) processing of environmental review or processing in furtherance of the City's consideration of the DDA., or .3) allowable consultant services. Specifically, the Co ni nission/City costs incurred pursuant to this Agreement are limited to actual and reasonable costs of staff salary and benefits for the Deputy City Manager, er, g the Assistant City Attorney and the Planning Services Manager, and do not include other staff officials, including but not limited to the City Attorney or City Manager. The allowable consultant services shall be limited to the services for special redevelopment counsel and an economic consultant to assist Commission with the DDA. Also, Developer's costs of processing land use entitlements and environmental review are costs are to be funded by Developer outside of this Agree ment. Commission/City staff are under no obligation to perform obligations under this Agreement until Developer has made the Negotiatin Costs Deposit. (d) Account Dis ute Resolution. The Developer's Negotiating Costs Account shall be exclusively used by the Commission to pay the actual costs incurred by the Commission/City identified in subsection (c) above. Upon reasonable prior notice to Commission, Developer may review the Negotiating Costs Account hedger to determine whether invoices and charges to the Ne gotiating Costs .Account reflect actua permissible staff Commission/City Costs. if the Developer disputes any invoice or charge to the Negotiating Cost Account, Developer shall notify Commission, and if the parties so agree that an invoice or charge has been inappropriately charged against the account, Commission shall deduct the amount of the inappropriate invoice(s) or charge(s) from the sum it is entitled to draw fr the Negotiation Cost .Account, or if such inappropriate invoice or charge is identified after the termination of this Agreement, Commission shall promptly pay such amount to Developer. (e) Refunds and Reimbursements Upon the termination of this Agreement for any reason, the Commission shall refund to the Developer within sixty(60) days, the excess funds from the Negotiating Costs Account that are not needed to reimburse the CommissionXity for permi ssible costs it has incurred pursuant to this Agreement. Furthermore, ore, in recognition of the value to the Commission of obtaining the Developer Funded Studies covering the City Sites upon the termination or expiration of this Agreement for any reason excepting a failure to negotiate in good faith pursuant to Section 5, the Corn mission shall, within sixty (b0) days reimburse Developer for its actual costs of the Developer Funded Studies, in are amount not to exceed one hundr Thousand dollars 100,000). Commission shall not be obligated to reimburse Developer unless and until it has previously been provided the written completed Developer Funded Studies, and in no event shall Developer be entitled to reimbursement for the Developer Funded Studies if the parties ultimately execute a DADA. covering the City Sites. Section 8. Environmental Review It is understood that the development concept set forth in the Conceptual Site Plan is not being approved by or with the execution of this Agreement, nor has any aspect been approved or selected as a preferred alternative, but are the subject of negotiations descr in this 6 Nvc- 1 43 8? a v4 Agreement. It is explicitly understood that environmental review of feasible project alternatives must be completed in accordance with applicable environmental laws before the Commission approves any development proposal or otherwise grants any discretionary approval with regard to development of the site. Section 9. No Change in De e o er• loo .Assignments or `transfers The parties agree there shall be no change in the Developer or any interest of Developer therein by transfer, assignment or otherwise, nor any transfer or assignment for the duration of this Agreement, or any interest therein or any part thereof, to any person or entity without the prior written consent of the Commission in its sole discretion, as authorized by its Community Improvement Commission; provided, however, that the entities constituting the development team may transfer to wholly -owned subsidiaries, entities or affiliates without the prior consent of the Commission as long as Developer or its subsidiaries or Affiliates retains a fifty one percent (5) 1 interest. Developer shall promptly provide notice of any such transfer to Con Section 10. Confidentiality of Information and Ne otiations The Commission. and Developer enter this Agreement with the understanding that the Commission may require anal, if so, then the Developer will have to provide, certain information of a pr and confidential nature during the negotiation and other tasks. outlined in this ueement. Such information may be necessary for the Commission to verify information. that is relevant to the negotiation of the DDA. Commission and Developer agree that they will keep confidential and not disclose any information submitted by Developer in the course of the negotiations or preliminary drafts of transactional documents or other negotiation pr liminary draft documents, including financial analysis, that are identified as privile ed or confidential under the lavy unless ordered to do so by a final order of court. Developer agrees to bear all costs of any litigation that is filed to determine the applicability of public records law to documents submitted by Developer in furtherance of negotiating a DDA, or any other related agreement contemplated in the Agreement. Notwithstanding the provisions of this Section., in no eve nt shall any party be required to disclose to any other party information that is protected by the attorney client privilege. Notwithstanding anything in this Agreement to the contrary, in the event Developer is concerned about the public records status of potentially sensitive corporate, proprietary or financial information, it may elect to submit such information to a third party redevelopment advisor, satisfactory to Commission, which would instead submit a written summary report of such information to Commission. Section It. Beal Estate Commissions The parties shall not be liable for any real estate commissions or brokerage fees that may arise from any transaction that tapes place because of or in any way related to this Agreement. The Commission represents that it has engaged no broker, agent or finder in connection with this transaction, and agrees that Developer shall not be liable for any such commission or fee arising from any transaction related to a conveyance of the City Sites, or portion thereof, from City to the Commission. Developer agrees to hold the Commission harmless from any claim by any broker, agent or finder retained by the Developer. 7 we- 143820 v4 Section 12. Representatives of the Parties a The Commission Representative. For the purpose of administerin the provisions of this A the Commission shall be represented b its Executive Director or such member of the Commission staff desi to act for a particular matter in writin b the Executive Director. (b) The Developer Representative. For the purpose of administerin the provisions of this A the Developer shall be represented b Michael W. McClellan, or such other emplo emplo a or a of the Developer as are desi to act for a particular matter in writin Section 13. Limitations of this Agreement B executin this A the Commission is not corn mittincy itself to or a to Z-) Z:� undertake: 1) disposition of land to the Developer or (2) an other acts or activities re the subse independent exercise of discretion b the Commission or an a or department- thereof. Section 14. Termination All of the provisions of this A excludin Section 11, Section 18, and Section 19 shall terminate and be of no further force and effect upon the earlier of (i execution of a DDA, or such other substantive a that documents the parties' a ne durin the Ne Pero (ii) termination of this A reement and the Ne Period. lt� 9 If a DDA has not been executed b the respective parties b the expiration of the Ne Period or if this A has otherwise been terminated in accordance with the provisions set forth herein., none of the parties shall have an further ri or obli under this A except as set forth in Section 7: Commission Cost Recover Section 11: Real Estate Commissions., Section 17: Non-liabilit of the Conu-nission, Section 18: Hold Harmless and Indemnit Developer ma in its discretion, elect to terminate this A durin the Ne Period if it determines thal it is infeasible for it to proceed with the Project, subject to providin ten (10) da notice to Commission in accordance with Section 19. Section IS). Approval of Disposition and Development Afyreement If ne culminate in a DDA between Developer and Commission, such actions become effective onl after and upon the approval of the Communit Improvement Commission of the Cit of Alameda and its execution b the Executive Director pursuant to direction of the Communit Improvement Commission. Section 16. Commission Rialit to Obtain Information and to Consult with Others The Commission reserves the rialit to obtain inforn-iation. cancer the transaction ZD 9 described in this A from an person, entit or g roup however, that exceptin consultants retained b Commission to assist in the ne process contemplated in this 8 wc-143820 v4 Agreement, Commission shall not reveal to any such persons or groups confidential or proprietary information or other infor mation kept confidential as provided in Section 10 of this Agreement. Section 17. Non liability of the Commission (a) Developer Warrants That Her She Has No Clain Against Commission. The Developer agrees that it does not now have. and shall not at any time, whether before or after its execution of this Agreement, have or make any claim or claims against the Commission or against the City Sites, directly or indirectly, by reason of any or all of the causes set forth in paragraph (c) of this section. (b) Non-liability of the Commission. The Developer agrees that the Commission shall not have any liability whatsoever of any kind or character, directly or indirectly, by reason of any or all of the causes set for in paragraph (c) of this section. (e) Causes to which Non liability Apply. The causes to Nv hich the provisions of paragraphs (a) and (b) of this section apply include the following: (1) The rejection of any offer to enter into this .Agreement, including this Agreement upon its presentation by the Developer; The acceptance by the Commission of any offer to enter into this Agreement including this Agreement upon its presentation by the Developer; (3) Entering into and thereafter engaging in exclusive negotiations, extension thereof; result thereof; (4) The s LIspension or termination of exclusive negotiations; (5) The expiration of a Negotiating Period, whether Initial or an (6) Entering into any DDA, or other instrument or document or as a (7) Any statement, representations, acts or omissions of the C011111 in connec ion with all or any of the foregoing, except for Commission's sole negligence or willfl misconduct; (8) The exercise of any Commission discretion, decision and judgment set forth in this .Agreement, except for Cone- ission's sole negligence or willful misconduct; (9) Any and all other natters arising out of or directly or indirectly cor ected with any or all of the foregoing. (d) Claim or Claims. The Developer further expressly and absolutely waives any and all Claim or Claims against the Commission, the City Sites, directly or indirectly arising out of or in any way connected with any or all of the platters set forth in paragraph (c) of this section. 9 wc-- 43s` o v4 (c) Definitions For purposes of this section, the wor defined in this paragraph shall have the meanings asc to them. herein: "'Commission" and "City of Alameda" includes their respective members, officers employees, agents, consultants, successors, and assigns. "Claim or Claims" shall mean any and a protests, r ights, remedies. interests, obj ections, clair s, demands, actions or causes of action of every hind or character whatsoever, in law or in equity, for money or otherwise, including but not limited to Claims for injury, loss, expense or damage, Claims to property, real or personal, or rights or interest therein, and Claims to contract or development rights or development interests of any kind or character, in any Commission and City Sites, or Claims that might be asserted against or cloud title to the City Sites. Section 18. H old. Hai mle a an d. lndemn t� The Developer shall defend, hold harmless and indemnify the Commission from and against any and all Claims directly or indirectly arising out of this Exclusive Negotiation Agreement and including but not limited to Claims if any, made by Developer or by anyone connected or associated through Developer, except to the extent that such Claim arises from the willful misconduct or sole and active negligence of Commission. Section 19. Notices Formal notices, demands and communications between the Parties shall be sufficiently given if, and shall not be deemed given unless, dispatched by certified mail, postage prepaid, retur receipt r or sent by an expr delivery or overnight cour service that maintains written delivery records, to the office of the parties shown as follows, or such other address as the parties may designate in writing from time to time: COMMISSION: Community fi-nproveme:nt Commiss of the City of Alameda 2263 Santa Clara Avenue, Room 320 Alameda, California 94501 Attention: Jennifer Ott, Deputy City Manager with co ies to. City of Alameda 2263 Santa Clara Avenue, Room 280 Ala meda, California 94-501 Attention: fari rah Fait, Assistant General Counsel DEVELOPER Warmington Homes Northern California Division 2400 Canino Ramon, Suite 234 San Ramon, CA 9458-3 Attention: Mile McClellan Such written notices, demands, and communications shall be effective on the date shown on the written delivery record as the date delivered or the date on which delivery was refused. Io wc- 43 8? o v4 Notwitla.standing the foregoing, Commission may respond to Developer requests for information by delivering requested information to only the address of the requesting representative of the Developer. Section 20, Governing I f nii i in I. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Section 21. Entire Agreement This Agr eement contains the entire agreement of the parties. This Agreement may be modified only by written agreement signed by the parties hereto. Section 2. Captions Captions at the beginning of each section of this Agreement are for reference only and shall in no way define or interpret any provision hereof. Seeti.on 2. Construction The provisions of this Agreement have been jointly drafted by the parties and shall be constructed as to the fair meaning and not for or against any party based upon any attr ibution of such party as the sole source of the language in question. Section 24. Co!!nterEarts This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the sane agreement. �l we- I43820 v4 IN WIT iNESS WHEREOF, the parties, who have had the opportunit to consult with their attorne with respect hereto and who full and completel understand the terms and provisions hereof, have executed this A g reement as of the date set opposite their si The effective date of this A shall be the date the A is si b the Commission. COMMISSION: DEVELOPER: B B Executive Director Tit Date Da RECOMMENDED FOR APPROVAL: Jermifer tt Deput t vNIaaer z::> Date: U f3b Zo 1 0 APPROVED AS TO FORi%4: IV\ Farimah fait Assistant General Counsel Date: Exhibits: Exhibit 1: Exhibit 2: Conceptual Site Plan Milestone Schedule 12 we --143 82 0 v4 EXHIBIT I CONCEPTUAL SITE PLAN Cos m mo cn Ln C--4 afl 4� A-4 P-1 ILL 14 PC al p OF J. MU LAI o.. 111 JM. I L i i 715 f fk L11 14 F _j we-143820 v4 MILESTONE SCHEDULE 09/07/10 ENA a pproved by CIC 0 09/10/10 CIC /City to i ssue site access permits for testing 09/1��1Q Warmington to commence site testing 11/12/10 Initial site investigation and testing completed 12/03/10 Reports and analysis of site testing provided to CIC 12/10110 Pr site plan and financial f deter 12/13/10 Negotiation of the DDS. commences. CIC /City provides Warmington with assurances, timeline for both the relocation of City uses and conveyance from C ity to CI C. War mingto n deposits Good Faith Payment and Negotiating Costs Deposit with CIC. 43/15/11 New City yard and animal shelter relocation sites identified by City CIC 05/13/11 City Council approves transfer of City Sites to CIC 06/10/11 CIC App of DDA 2 -1 we -143 8? o v4