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1994-01-04 Regular CC MinutesREGULAR MEETING OF THE ALAMEDA CITY COUNCIL JANUARY 4, 1994 The meeting convened at 7:34 p.m. (following the Quarterly Meeting of the Housing Authority Board of Commissioners) with President Withrow presiding. Councilmember Lucas led the Pledge of Allegiance. The Venerable Wilfred H. Hodgkin, Archdeacon of Episcopal Diocese of California gave the invocation. ROLL CALL - Present: Councilmembers Appezzato, Arnerich, Lucas, Roth and President Withrow - 5. Absent: None. ANNOUNCEMENTS OF CLOSED SESSION ACTION. None. PROCLAMATIONS AND SPECIAL ORDERS OF THE DAY 94-001 Presentation of Award for Outstanding Achievement in the American Automobile Association Pedestrian Protection Program, to the City of Alameda. Charles Kank, District Manager, American Automobile Association, presented the Award to the City. President Withrow expressed appreciation, and called the Acting Chief of Police forward to receive plaque on behalf of City. The Police Chief stated he would share award with Public Works Director due to his efforts. 94-002 Presentation of Certificate of Service to Pamela DeSimone, former Member of the Civil Service Board. Ms. DeSimone was unable to attend and the matter was held over. CONSENT CALENDAR Mayor Withrow announced 94-003 Minutes, had been pulled from the agenda. Vice Mayor Roth moved approval of the remainder of the Consent Calendar. Councilman Arnerich seconded the motion which carried by unanimous voice vote - 5. 94-003 Minutes of the Regular Council Meeting of December 21, 1993. Held over. *94-004 Report from Public Works Director recommending Authorization to Advertise Bids for Alameda/Oakland Ferry Service. Minutes of Regular Meeting, Alameda City Council January 4, 1994 Accepted. *94-005 Ordinance No. , N.S. "Authorizing Grant of Access Easement to Peter R. and Trijntje Kluitenberg of the Property Adjacent to 211 Beach Road." Introduced. *94-006 Bills, certified by the City Manager to be true and correct, were ratified in the amount of $184,283.49. AGENDA ITEMS Actions Related to Base Conversion Process. 94-007 Status Briefing on Base Conversion Process. The City Manager noted the Project Director had a conflict and could not attend; and reported on the meeting which he and Project Director attended with Mr. Sandre' Swanson, Aide to Congressman Dellums; and Carl Anthony, Executive Director of East Bay Conversion and Reinvestment Commission [EBCRC], on City and Commission cooperation and questions of responsibility for specific items of work. Vice Mayor Roth shared information concerning the issue of proposed demolition of properties at the Presidio that relate to problems the City may face at NAS. Councilmember Lucas requested a staff report be provided to Council concerning discussion at a meeting to be held January 5th, by request of EBCRC, regarding proposed Reuse Authority Joint Powers Agreement. Neil P. Sweeney, Alameda, stated more people should attend conversion meetings; City has a good Base Reuse Advisory Group [BRAG]; and suggested uses for NAS property. 94-008a Public Hearing to consider Ordinance No. . N.S. "Amending the Alameda Municipal Code by Amending Subsections 5-2.2 (Separate License for Each Place of Business); 5-2.6 (License for Less Than Full Period); 5-3.8 (Transfer of License; Procedure); 5- 3.10 (Lost License); 5-4.1(H) (Established) ;5-4.2 (Minimum Tax); 5- 5.2 (Veterans); 5-7.2 (License a Debt); and Adding Subsections 502.7 (Subsections 5-2.7 (Evidence of Doing Business); 5-3:11 (No Bill Required); 5-7.6 (Collection of Delinquent Charges and Fees) to Chapter V (Licenses and Permits) Pertaining to City of Alameda Business Licenses." Introduced. [See 94-008b for action.] 94-008b Resolution No. 12491 "Amending Master Fee Resolution No. 12191 Setting Various Fees for Alameda Business Licenses." Adopted. Minutes of Regular Meeting, Alameda City Council January 4, 1994 The following persons addressed tax changes in rental units: Frank Terranova, Alameda, Opponent. Irene Hanson, Alameda, Opponent. The City Manager explained the changes concerning single family and multiple dwelling units: multiple units are currently taxed at $20 per unit per year; that was converted at the same rate to a gross- receipts basis, resulting in reduced tax payments for units under $700 per month, and more for those over $700 a month if all units are rented all the time; if vacancies occur, the tax would decrease and a credit would be given for the unit for whatever time it was vacant, as gross receipts would be less; noted persons in the past have requested credit for vacancies; and advantages are a credit for when the units are vacant, and the amount of tax is less for rentals under $700 per month. In response to Councilman Arnerich's inquiry, the City Manager explained enforcement would be on the same basis as for other businesses, whereby a form is filled out on gross receipts for the prior year and multiplied by the rate; and possibly someone could provide inaccurate information; however, most people are honest. Noel Folsom, Alameda, Opponent. Harold Griego, Alameda, Opponent. Barbara Kerr, Alameda, Opponent. Michael Grappo, Alameda, Proponent. Maewood Zarbach, Alameda, stated she is not opposed to the tax; inquired how much tax would be charged if unit rented for $10,000 per year, to which the City Manager replied $26.00. Edward Payne, Alameda, Opponent. The City Manager noted no additional staff is proposed. Responding to Councilmember Lucas's concerns regarding confidentiality if gross receipts must be considered, the Finance Director stated the information is confidential and an ordinance contains penalties for officers of the City if they violate that confidentiality; however, Federal or State government can request information from the City; and information is provided to the State Franchise Board for a cross-check. Vice Mayor Roth stated every business in Alameda provides gross receipts to calculate license fees and there has been no problem of confidentiality; a gross receipts basis is fair as a person renting a unit for $300 a month will pay less than one renting for $1000 per month; small businesses paying minimum fee of $96 will only need to pay $50 per year; and the (proposed) ordinance is fairer. Councilmember Appezzato stated he empathizes with some persons present but believes some misunderstanding exists; fees are not Minutes of Regular Meeting, Alameda City Council January 4, 1994 being raised; changes are being made in the way fees are computed; owners will no longer need to pay on vacant properties; a major change is that business owners of single family dwellings will now be required to pay $2.60 per $1000 of gross revenue, which would be $31.20 for $12,000 of income per year; this is not an issue of profit but fairness; if a multiple unit business owner must pay, a single family unit business owner should be required to pay the same fee; it is basically minimal; and he will support the change. Councilman Arnerich stated this is not the time to increase fees, money will be eaten up by administrative costs; too many categories are grouped together; everyone should pay fair share but he is not sure this is the way to do it; persons doing business in Alameda should obtain licenses and pay fair share; however, he cannot support this ordinance. President Withrow stated, on the single family rental issue, he thinks money is being raised to collect the tax; it is not an efficient tax and does not make sense to him, and he will not support it; the other [multiple dwelling unit] tax is too complicated; and he cannot support that either. Councilmember Lucas agreed that imposing tax on single family dwellings does not make sense; does not agree single family-homes are a business; and because of privacy issue, she prefers to stay with old way of collecting business license tax for multiples. Vice Mayor Roth stated on State income tax, Schedule E, rentals are called business income; [government] already knows what a person's income is. Councilmember Lucas stated there are more opportunities for error; and moved to retain the old ordinance concerning single family and multiple dwelling rentals; and accept the remainder of staff's recommendation. The City Manager clarified the action would be to introduce the ordinance, excluding the items Councilmember Lucas noted. Councilmember Appezzato commented that, after analysis, multiple homeowners may well agree that, if this [proposal] had passed, it would have been in their favor. The motion carried by the following voice vote: Ayes: Councilmembers Arnerich, Lucas and President Withrow - 3. Nayes: Councilmembers Appezzato and Roth - 2. Absent: None. * * * * Council recessed to reconvene at 8:55 p.m. * * * * 94-009 Public Hearing to consider Resolution No. 12492 Minutes of Regular Meeting, Alameda City Council January 4, 1994 "Establishing Garbage Rates for 1994." Adopted. Michael Grappo, Alameda, Opponent. Stanford Shane, Alameda, Opponent. John Scott Graham, Alameda, Opponent. The City Manager explained the current subject is not a bid situation; the Waste Management of Alameda County has a 20-year franchise agreement with the City entered into in 1982; the City does not have the ability to request bids for other firms to come in; must review their expenses and revenues on an annual basis and their requests for rate increases or decreases and determine if we are providing a reasonable rate of return, as required by the Franchise Agreement and State law. Councilman Arnerich stated City Manager is correct; City has an agreement entered into by a previous Council. Dave McDonald, Waste Management of Alameda County, addressed comments made by speakers concerning Waste Management; stated the company is protesting the level of profit allowed by the Joint Refuse Rate Review Committee [JRRRC], and, however, encourages Council to proceed with the rate process. President Withrow inquired about property noted by Speaker Michael Grappo, and Mr. McDonald stated 247 acres existed at Davis Street, the company was running out of landfill space, was working on obtaining approval for a transfer station, which has been approved and built on the remaining 53 acres; the 194 acres were donated to East Bay Regional Park District in exchange for two additional years of filling that site which is on the Bay, has a general common use by the general public, has worked out well as company had a place to put garbage and filled it to park specifications; received no money from it, it was a donation to the park district; concerning landfills in general, the speaker refered to the increase in value of filling the landfill, and actually, the opposite is true; when a landfill is filled, no value attachs to it, continual monitoring must be done, a long-term liability results, 20 to 25 years are necessary for the landfill to "settle out." Councilman Arnerich commended Mr. McDonald for being a fair person to work with, and stated he appreciates all his efforts. In response to Vice Mayor Roth, the Public Works Director stated the overall amount Waste Management needs to reach the operating level is what the JRRRC provides. Vice Mayor Roth discussed the drop box charges and cubic yard rates with the Public Works Director and Public Works Management Analyst. Minutes of Regular Meeting, Alameda City Council January 4, 1994 Councilman Arnerich discussed, with the Public Works Management Analyst, the higher cost for a second can, noting the practice was started several years ago as an incentive to reduce waste stream. President Withrow commented Alameda had substantial drop-off on second cans, and is achieving society's goal to reduce waste stream; drop-off was so fast, revenues dropped off and figures needed adjustment; commended JRRRC for pursuing lower Return on Equity [ROE]; City should obtain contract with about 9.5% ROE. Vice Mayor Roth discussed efficiency at the transfer station. Mr. McDonald noted, due to legal requirement and liability involved, change in laws, and new environmental laws, more people are required at transfer station. Councilmember Appezzato commended Mr. McDonald for the service level of Waste Management; stated the only question is what level of profit there should be, and discussed difference in profit among cities. The Management Analyst replied the proposed rates include a 93.25 return for Waste Management. Discussion followed concerning e.g., rates in various cities, the affect of proximity to landfills, residential waste stream. Councilman Arnerich suggested more footnoting to further illuminate information in charts and diagrams. Councilmember Appezzato expressed his interest in knowing what the rate of return would be if Alameda did not raise rates on the 32- gallon can $.40, and extra dollar on [additional] 32-gallon can. The Management Analyst noted the increases on the 32-gallon can only covers the cost of annual cleanup and has nothing to do with any increases for Waste Management. Vice Mayor Roth discussed affect on rates for curbside pickup. Councilmember Lucas discussed affect of reduction of waste, and regulatory requirements, on rates. Councilmember Appezzato stated he would like to know what the operating ratio would be if rates were not raised on just the residential; and inquired if a vote tonight is imperative. The City Manager stated when Council decides what the proper rate of return is, staff must generate within the calendar year, that much revenue; if a raise in rates is postponed to February or Minutes of Regular Meeting, Alameda City Council January 4, 1994 March, the longer the matter is postponed, the more the rates must be increased or the more the City goes into the hole, or the more that must be borrowed from Oakland Scavenger, and the more that must be paid in the following year; so the answer is, you do not need to do it tonight, but the longer you wait, the more you are going to need to pay. Councilmember Appezzato inquired if there has ever been a time when the balance sheet has been in our favor, when they have made more than the rate of return. Mr. McDonald replied affirmatively; stated there was no rate increase for about seven years; and there was a favorable balance to the cities; in 1985, an 11% reduction in rates to commercial occurred. Councilman Arnerich inquired how much is saved with automatic service; and Mr. McDonald noted automatic service would not work too well in Alameda because of e.g., traffic, parked cars. Councilman Arnerich noted heavy -duty items are picked up on cleanup days, and perhaps that should be looked at. The Public Works Director explained the City surcharges. Councilman Arnerich stated a lot of work on this matter has been done; the minican rate stays the same, the 32- gallon only increases $.40 and, if the matter is delayed, we may be further in the hole, and moved to accept recommendation to adopt resolution. Councilmember Lucas seconded the motion which carried by the following voice vote: Ayes: Councilmembers Arnerich, Lucas, Roth and President Withrow - 4. Nayes: Councilman Appezzato - 1. Absent: None. 94 -010 Report from Acting Chief of Police concerning Police Services to South Shore Shopping Center, and Mel's Bowl. (Councilmember Lucas) Councilmember Lucas stated she requested this matter agendized as she was concerned about security. Council discussed questions of security with Robert Leste and John W. Warren, representing South Shore Shopping Center, who provided statistical information, procedures used, described the recruitment and training given to security officers and expressed their concerns to provide adequate security. Councilman Arnerich noted concerns shared with Mr. Leste a number of months ago and is confident he [Leste] will stay on top of the situation. Minutes of Regular Meeting, Alameda City Council January 4, 1994 Mr. Leste submitted copy of article to Council regarding provision of security at shopping malls. Councilmember Lucas thanked Messrs. Leste and Warren for coming to the meeting, and the interest they have exhibited; and noted the new protection service at the mall. Councilman Arnerich moved acceptance. Councilmember Lucas seconded the motion which carried by unanimous voice vote - 5. 94-011 Resolution No. 12493 "Adopting the Alternate Method of Property Tax Allocation." Adopted. (Continued from December 21, 1993, Council Meeting) In response to Councilmember Appezzato, the City Manager explained the program; noting the State has given the County a one-time opportunity to reduce school district transfer and use the money to purchase city property tax delinquencies and, in the future, receive money back in the form of penalties and interest; and is a five year program. In response to Mayor Withrow, the City Manager stated staff recommendation is to pledge the money received go into reserves and be invested. Council discussion followed concerning current investment policy, and the process to be followed within the program; participation by other cities, * * * * Councilman Arnerich moved to extend meeting past 11:00 p.m. Vice Mayor Roth seconded the motion which carried by unanimous voice vote - 5. * * * * Following further discussion concerning the nuances of the program, and explanation by the Finance Director, Vice Mayor Roth stated we cannot lose by the program. Councilmember Lucas moved adoption. Councilmember Appezzato seconded the motion which carried by the following voice vote: Ayes: Councilmembers Appezzato, Lucas, Roth and President Withrow - 4. Nayes: Councilman Arnerich - 1. Absent: None. 94-012 Ordinance No. 2654. N. S. "Reclassifying and Rezoning Certain Properties within the City of Alameda by Amending Zoning Ordinance No. 1277 for those properties located at 2300 and 2306 Alameda Avenue and 1218 Oak Street." Adopted. Vice Mayor Roth moved final passage. Councilmember Lucas seconded the motion which carried by unanimous voice vote - 5. ORAL COMMUNICATIONS. NON-AGENDA Minutes of Regular Mceting, Alameda City Council January 4, 1994 9 94-013 Neil Patrick Sweeney, Alameda, suggested uses for NAS, including Kaiser Permanente. 94-014 Gordon Christopherson, Alameda, discussed problems concerning neighbor, including garbage, rat infestation. Councilman Arnerich suggested staff could meet with Mr. Christopherson, and report back to Council at a later date with analysis of problems, noting where Mr. Christopherson is correct or incorrect; and take care of the matter. Councilmember Lucas stated staff has met with Mr. Christopherson; perhaps should agendize and Council make decision. Mayor Withrow stated report should be on agenda. Councilman Arnerich requested, if City Manager cannot resolve matter, bring it back to Council or handle matter in whatever way he considers best. NEW BUSINESS AND UNFINISHED BUSINESS 94-015 Mayor Withrow stated he would like staff report on a strategy to pursue, as a City, to recruit Kaiser Permanente into Alameda to NAS or any other appropriate, available, location in the City. 94-016 Councilman Arnerich commended City Clerk's Office and Council concurred. ADJOURNMENT President Withrow adjourned the meeting at 11:28 p.m. Respectfully submitted, Patricia Calbreath Deputy City Clerk The agenda for this meeting was posted in advance in accordance with the Brown Act. Minutes of Regular Meeting, Alameda City Council January 4, 1994