1994-07-05 Special CC Meeting4 ti
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MINUTES OF SPECIAL MEETING OF THE ALAMEDA CITY COUNCIL
JULY 5, 1994
The meeting convened at 11:08 p.m., with President Withrow
presiding.
ROLL CALL -
Present: Councilmembers Appezzato, Arnerich,
Lucas, Roth and President Withrow - 5.
Absent: None.
94-392 Report from Public Works Director regarding written
communication from the City of Oakland seeking action which will
allow the use of Tax-Exempt Bonds by the Port of Oakland for the
portion of their Dredging Project within the City of Alameda.
(Mayor Withrow)
John Beery, Alameda Gateway, Alameda, stated the Port has moved
their dredging project including the turning station, to Alameda;
that has two affects on Alameda: it removes a portion of two piers
amounting to over a thousand feet, which generate income for the
City through a percentage lease with Alameda Gateway; more
importantly, the turning basin takes Alameda's private property,
Alameda Gateway, and City property, for a total of about 300,000
sq. ft.; they [Port] do not want it in Oakland because they have
further expansion projects that will allow them to put in more
piers and docks.
Mr. Beery stated no benefit will accrue to Alameda in supporting
the Port in this matter; adversely, it hurts the City; and he
suggests the City state that if the Port wants support, we [City]
want some concessions, the Port does not have the money to go
forward because of economic problems in Oakland, and are asking for
something with nothing in return, other than City loss of revenues
that are being generated; that the Port sit down and work out
differences with both the City and Alameda Gateway to acquire
easements that will allow them to make the turning basin a reality;
if City supports them, that will not only take away his [Beery's]
rights as property owner, but takes away a major card in
negotiations in other areas.
President Withrow requested information on revenues Mr. Beery
addressed.
The Public Works Director replied provisions are in the lease that
he [Beery] pay a certain minimum amount per year and some
provisions for when gross revenues are over a certain amount.
Tom Gwyn, Director of Government Affairs, Port of Oakland, stated
he is not able to comment with any specificity about Mr. Beery's
concerns and obligations; he presumes that they are being worked
Special Meeting, Alameda City Council
July 5, 1994
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out in the process between the United States Corps of Engineers,
the Port, and Mr. Beery; the dredging project would require the
taking of some Alameda property; however, the reason for the letter
from Mayor Harris is that, in order for the Port to use tax-exempt
bond financing [the Port] needs to get the approval of the highest
elected official in any jurisdiction within which the project takes
place. A similar letter was sent to Mayor Frank Jordan, San
Francisco, for his direction and ultimate approval.
Mr. Gwyn further noted that [Mayor Harris's] letter also requests
the designation of a hearing officer to participate in the August
12th hearing; the basis of that hearing is to issue an approval for
the Port to proceed with this project and to use taxes and bond
financing; the project will go forward but Alameda's approval would
allow the Port to use the less expensive form of financing; he
cannot address Mr. Beery's situation but can get back to it; and
could come back and provide information on the extent of what
property might be taken in this project.
Councilmember Appezzato commented that apparently the process has
been going on for some time; and does not understand why the City
was not previously notified; and Mr. Gwyn replied he presumes the
EIR process provided notices to the City; [the Port] received
comments from the City Planning Director; and he cannot explain why
there was not some earlier specific notice on this TEFRA [Tax
Equity and Fiscal Responsibility Act of 1982] aspect of the law.
In response to Councilember Appezzato, Mr. Gwyn explained that the
Corps of Engineers has the authority of navigational servitude;
which is somewhat akin to eminent domain power, and gives them
authority to acquire the lands necessary to maintain, and in this
case expand, navigation channels.
To Councilmember Appezzato's query if everything has been taken
care of to begin the process, Mr. Gwyn replied [the Port] still
needs certification of a final EIR, must come to agreement with the
City of Oakland on the use of Galbraith Golf Course, a number of
steps in .the process with the Corps of Engineers; however, most of
the procedural roadblocks are behind them.
In response to Councilmember Appezzato, Mr. Gwyn clarified the Port
is asking the Mayor to notice the hearing and sign the approval if
he is satisfied; he understands Council interprets its Charter City
status as one that requires Council to give the Mayor that
authority or take that action; what is needed is an approval of the
highest elected official in Alameda to ultimately approve this
project to go forward for the purposes of tax-exempt financing, not
to approve whether or not the project goes forward.
Councilmember Lucas inquired if some compensation is being planned
for the taking of either privately owned or City-controlled, land
Special Meeting, Alameda City Council
July 5, 1994
or tidelands, Mr. Gwyn stated he can only assume that if the Corps
of Engineers acquire private or public lands, there would be
compensation.
Vice Mayor Roth stated he thinks Mr. Beery is right that the City
is holding the card [for negotiating], and he [Roth] thinks we
should play it.
The City Manager stated both City staff and Port representative are
correct that the Port is going to proceed with the project the way
they want to; 18.8% of this project is in Alameda, so by granting
approval, Council allows them to finance less expensively; they
want to do tax-exempt bonds and what the City can do is make a
portion of them not-tax-exempt, but that will not make them change
the project; what we might want to do is talk to them about things
in a variety of areas: the airport, negotiations on Cross-airport
Roadway, the impact of the turning basin on Mr. Beery's project; if
Council will give staff conditional approval to proceed subject to
our ability to negotiate something with them and perhaps get the
best possible approvals of some things we are pushing for with the
Port, coincident with our approval of this [dredging project], and
subsequent to that, bring this matter back.
Vice Mayor Roth discussed with the City Manager the authority of
the Corps of Engineers to take whatever is needed for navigational
rights of waters of the United States.
Council discussed with the City Attorney the process and necessity
of letter requesting the Mayor's approval to come before the
Council.
President Withrow clarified what we are doing is facilitating a
lower cost of money to do a project and the other issue has to do
with the EIR process and subsequent negotiation with the Corps of
Engineer with respect to compensating for property taken, if in
fact they do that; he sees one other tradeoff and that has to do
with the one Mr. Beery was talking about in terms of the turning
basin swinging in one direction or the other taking Alameda
property or Schnitzer Steel.
The City Manager confirmed the issue is financing; the Port will go
ahead with the project; he would recommend Council remember two
things: interests in Alameda need to be protected, not only Mr.
Beery's interest, but the interests on the East end of the island;
and Vice Mayor Roth is right that the Port has not been as
cooperative as they could be and perhaps we should remind them this
is an area where we need to cooperate a little more; we may need to
go to the Port or the City of Oakland and discuss some changes but
in a cooperative way because we are part of a region where we may
be requesting their signature at some point.
Special Meeting, Alameda City Council
July 5, 1994
President Withrow stated the City Manager had recommended Council
provide authorization for him [City Manager] to negotiate on behalf
of the City; and queried if there would be time for a report back,
and can the hearing date of August 12th be met.
The City Manager responded he thinks there would be enough time.
Vice Mayor Roth stated he does not have a problem in allowing them
[Port] to have the hearing; he wants a report back and at the same
time have the report back on our negotiations.
President Withrow stated that makes sense.
Councilmember Lucas stated more staff input is needed for the next
Council Meeting.
Following discussion on authorizing staff to negotiate and come
back at the next Council meeting, and a timeline that would be
involved, Councilmember Appezzato stated Vice Mayor Roth had a good
point; why not notice the hearing and authorize the City Manager to
begin to negotiate.
The City Attorney stated that with bond financing rules, the
leverage could be lost.
The City Manager agreed Council could lose leverage; he would not
[recommend] authorizing that [approval of Notice] tonight.
Councilmember Appezzato stated he will accept that.
The City Manager suggested Council hold off [approval of Notice].
Councilmember Appezzato inquired if information could be provided
to substantiate or refute what Mr. Beery said.
The City Manager stated we will try to do that; and the City
Attorney stated she will look at the issue on timing for
negotiation also.
Mr. Beery noted his attorneys could provide information on the
status of his case with the Port.
Councilmember Lucas stated she would also like to know what happens
after the hearing on the financing, the different steps that would
normally follow, and how the land will be taken over from the City.
Councilman Arnerich moved the suggestion of the City Manager.
Councilmember Lucas seconded the motion which carried by unanimous
voice vote - 5.
Special Meeting, Alameda City Council
July 5, 1994
ADJOURNMENT
President Withrow adjourned the meeting at 11:50 p.m.
Respectfully submitted,
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Patricia Calbreath
Deputy City Clerk
The agenda for this meeting was posted in advance in accordance
with the Brown Act.
Special Meeting, Alameda City Council
July 5, 1994