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1994-09-20 Regular CC MinutesMINUTES OF THE REGULAR MEETING OF THE ALAMEDA CITY COUNCIL SEPTEMBER 20. 1994 The meeting convened at 7:30 p.m. with President Withrow presiding. Councilmember Lucas led the Pledge of Allegiance. Reverend Jack Buckley, First Presbyterian Church, gave the invocation. ROLL CALL - Present: Councilmembers Appezzato, Arnerich, Lucas, Roth and President Withrow - 5. Absent: None. PROCLAMATIONS AND SPECIAL ORDERS OF THE DAY, 94-530 Proclamation congratulating the Alameda Little League All Star Team, ages 9 and 10, for their outstanding achievement. Mayor Withrow read the proclamation and presented it to Gary Nelson with Certificates of Recognition for each of the team members. 94-531 Proclamation congratulating the Alameda Little League All Star Team, ages 11 and 12, for their outstanding achievement. Mayor Withrow read the proclamation and presented it to Reuben Fielder with Certificates of Recognition for the team members. 94-532 Proclamation congratulating the Babe Ruth World All Star Team, ages 14 and 15, for their outstanding achievement. Mayor Withrow read the proclamation and presented it to Reuben Fielder (accepting on behalf of Pat Bail, President, Babe Ruth Baseball League) with Certificates of Recognition for the team members. Councilman Arnerich commented Councilmember Appezzato was an umpire for some of the games; introduced three persons present who were outstanding athletes during their high school years, Don Sherratt, Gary Nelson, and Police Captain William Schmitz, and wished the teams well. Councilmember Appezzato congratulated the three teams, noting he expects to return to umpire some of their games next year. 94-533 Proclamation Declaring September 19-25, 1994, as "Pollution Prevention Week." Mayor Withrow read the proclamation and presented it to Public Works Director Robert Warnick. Regular Meeting, Alameda City Council September 20, 1994 CONSENT CALENDAR President Withrow announced that reports (94-540) regarding reimbursement of expenditure, (94-541) on Ferry Service Agreement, and (94-542) on Year End Financial Report, were removed from the Consent Calendar for discussion. Councilmember Lucas moved approval of the remainder of the Consent Calendar. Councilman Arnerich seconded the motion which carried by unanimous voice vote - 5. Items so enacted or adopted are indicated by an asterisk. *94-534 Minutes of the Regular Council Meeting of September 6, 1994, and Special Council Meeting of September 6, 1994. Approved. *94-535 Report from Public Works Director recommending acceptance of work by Mountain Cascade, Inc. for Infiltration and Inflow, Phase IV, Sanitary Sewer Replacements in Pacific Avenue from Fifth Street to Sixth Street, Sixth Street from Central Avenue to Pacific Avenue, and Pearl Street from Otis Drive to Central Avenue, No. P.W. 01-94-01. Accepted. *94-536 Report from Public Works Director recommending award of contract to Harold Hutson Construction for Minor Street Patching with Asphalt Concrete for Fiscal Year Ending June 30, 1995, No. P.W. 04-94-07. Accepted. *94-537 Report from Public Works Director recommending Acceptance of Work by Rich Himenez Concrete for Repair of Portland Cement Concrete Sidewalk, Curb, Gutter, and Driveway for the Fiscal Year Ending June 30, 1994, No. P.W. 4-93-09. Accepted. *94-538 Report from Finance Director transmitting Investment Portfolio for period ending August 31, 1994. Accepted. *94-539 Bills certified by the City Manager to be true and correct were ratified in the sum of $1,594,337.06. 94-540 Report from City Manager regarding reimbursement of expenditures for Mayor's trip to Washington, D.C. from September 12 through September 14, 1994. Don Bergen, Alameda, inquired if the Mayor should abstain on this matter. The City Attorney stated the Political Reform Act permits, for example, the State Legislature, to vote on salaries and reimbursements for themselves; and that ability falls on City Council who also can vote on salaries, reimbursements, and things of that general nature without a conflict of interest. Regular Meeting, Alameda City Council September 20, 1994 r-- Mr. Bergen commented the Mayor stated he would go to Washington, D.C., by invitation, even if he must pay to go; money does not need to be spent on this; and the Mayor could have seen Senator Feinstein and Congressman Dellums in California. Neil Patrick Sweeney, Alameda, stated he did not believe anyone would be negative on this subject; whoever is sent to Washington during this time of base conversion, the money will be well spent. Councilmember Lucas agreed with Mr. Sweeney, stating that because of the Naval Air Station, this is a time representation in Washington, and good ties to the federal government, are needed. Councilmember Lucas moved to support the recommendation [to reimburse]. Vice Mayor Roth seconded the motion. Councilman Arnerich stated whoever is Mayor has the responsibility to represent the City at the request of the President of the United States, with other Mayors throughout the country; we do not need negativism; the expenditure is justified, is a legitimate expense given Mayors in the past, and he will continue to support it in the future. The motion carried by unanimous voice vote - 5. 94-541 Report from Public Works Director regarding Amendment to Alameda/Oakland Ferry Service Agreement between Blue & Gold Fleet and City of Alameda for fare increase and assignment of Pier 1/2 Mooring Rights. Allen Derr, Senior Citizens, Incorporated, stated when this issue was on agenda a couple of weeks ago, it was proposed to raise all fares, and now excludes fare increases for the seniors, disabled and military personnel; and thanked Councilmember Appezzato for taking that stand on the issue. Councilmember Appezzato stated he wanted to bring to the attention of citizens that Council took this issue off the Consent Calendar, and with approval of the entire Council, the City Manager had agreement modified and there will be no fare increases for seniors, handicapped and military; and he thanked Council for joining in, and City Manager for having changes made. Councilman Arnerich moved approval. By consensus of Council, the recommendation to execute Amendment to Agreement restructuring the fare schedule, and incorporating Pier 1/2 Mooring Rights, was approved. 94-542 Report from Finance Director transmitting Year End Financial Report - 1993-94 Fiscal Year. Regular Meeting, Alameda City Council September 20, 1994 5-1 Don Bergen, Alameda, stated it appears from revenue and expenditures figures in report, that only a small amount of money comes from parking meters, and we might as well not have them; and the Golf Course is not making the money it should. Councilman Arnerich moved acceptance of report. Vice Mayor Roth seconded the motion which carried by unanimous voice vote - 5. AGENDA ITEMS Actions Related to Base Conversion Process 94-543 Status Briefing on Base Conversion Process. The Base Conversion Project Manager reported on three items: 1) The budget, noting the OEA office assured that approval would be forthcoming well before the end of the current fiscal year which is October 31st; and a State grant request has also been submitted for reimbursement of City expenditures during the last fiscal year on base closure activities, 2) the BART car maintenance contract proposal, 3) the gun test facility and efforts to support the facility's transfer by a lease with the Reuse Authority to Concord Weapons Facility; the matter has been forestalled by a legal opinion, and final opinion will be coming from the Navy's General Counsel; and noted there is strong opposition in Washington, of transfer to Concord as they believe that function is better served by transfer to NAS China Lake. Councilmember Lucas stated there is a citizens' advisory committee, Restoration Advisory Board to the Naval Air Station on toxic cleanup, and inquired if BRAG works with that Committee. The Project Manager answered affirmatively; and that the head of the BRAG Environmental Subcommittee also serves on the Restoration Advisory Board so there is direct linkage, including staff. Councilman Arnerich stated Council is kept very well informed by the Project Director and City Manager, on what is taking place, whether in Washington, D.C., or California. Vice Mayor Roth stated perhaps it should be pointed out to the Navy that they do not have the money to pay for the cleanup and yet they are talking about transferring testing of guns to China Lake where they would need to build a facility, and they are prepared to spend millions of dollars for a new range and allow this [Alameda facility] be torn down. The Project Manager stated he has been told China Lake can be used satisfactorily; however, he does not know the condition of the facility so he cannot give a good response; and he will continue to Regular Meeting, Alameda City Council September 20, 1994 approach this [issue] from all angles. Neil Patrick Sweeney, Alameda stated the argument that the government does not want to close a base and transfer functions to another base is wrong because it is done throughout the country all the time; we want Concord to take over early so employees would not leave; and he would like all [conversion] information to be printed by newspapers. Betty Ballerini, Alameda, remarked why send something good elsewhere when we should be cleaning up the land; neither Alameda nor federal government have enough funds; someone should be sent to Washington to speak for Alameda; and stated our revenue should remain here. Councilman Arnerich stated, about a week ago, Council attended an Oakland meeting; everyone from various bases concluded, and Senator Feinstein stated, that the government badly miscalculated cleanup cost, and does not have money to do the job; we said, the base was clean when Navy came in 1937 and should be clean when it leaves; money is short but [Council] will try at every level to get City's share to put this [base] back in its former condition. Councilmember Appezzato moved acceptance of the report. Vice Mayor Roth seconded the motion which carried by unanimous voice vote - 5. 94 -544 Report from Assistant City Manager regarding City's Regulation of Mobile Ice Cream Vendors. (Vice Mayor Roth) Allen Derr, Alameda, stated he wanted to be sure Council was aware of fatalities in Oakland caused by an ice cream truck; and before ordinances or resolutions are passed, that Council be sure City is covered in case a similar thing happens in Alameda. Don Bergen, Alameda, stated he is aware of the Oakland incident; vendors are pleasant, hard - working and not asking for handouts; this is a non -issue and could have been handled quietly, and not enlarged out of proportion. David Plummer, Alameda stated he has lived across from Lincoln Park for 19 years, has never seen a problem on his end of the park; his neighbors remember ice cream trucks from when they were little children; and ice cream trucks with music is like an announcement of summer; he does not see how anyone can have any problems with it and he would like to see Council go after street people who steal recyclable items as that is a problem in the City. Vice Mayor Roth stated the matter was put on as a safety issue, and a noise issue and now is the time to address it so that next summer, City should not have a problem; 4 or 5 trucks stop at one time; Council has always been concerned about businesses not paying Regular Meeting, Alameda City Council September 20, 1994 business licenses; and the safety of little children requires enforcement of law that the trucks must pull in to the curb; if we do not enforce, the City might be liable. Councilmember Lucas stated trucks are required to pull up to the curb, and is not always done; the problem is that a Police Officer is not always present; and licensing also needs policing which requires manpower. Captain Schmitz reported inspections made by Police Department on ice cream trucks over the weekend, were found to be within all regulations, had appropriate licenses, and only two minor issues were cited; stated issue of stopping away from the curb, and double - parking is well- taken; the Department can deal with drivers, once they understand that if that violation is observed again, they will be cited; any double - parking, whether an ice -cream truck or someone dropping off a child going to school, creates a traffic hazard, and police officers will take an enforcement action when they see that violation. In response to Vice Mayor Roth, Captain Schmitz stated, according to the Assistant City Manager's report, the ice cream truck music is not in violation of the current noise ordinance. Vice Mayor Roth stated he believes if truck(s) circled a park, or sat stationary at a park all day with music playing, that could be irritating. Following brief discussion on the noise ordinance, Councilman Arnerich stated the noise is not annoying when the trucks move; and suggested when trucks are parked in an area for a prolonged amount of time, the music should be turned off. Vice Mayor Roth moved that staff 1) write a letter to all mobile ice cream vendors, 2) make sure they are licensed, 3) inform them they must pull over to the curb as the law already requires, 4) that City will be enforcing law, and ask for comment on shutting off music when they are stopped; and if they do not want to cooperate, staff can bring the matter back. Councilmember Lucas seconded the motion. Councilman Arnerich stated he sees nothing wrong with [the motion] and commented that even without a letter, good public relations, may be for the Police Department to sit down and talk to them personally which may go a lot further than a cold letter, either way [letter or chat], staff handle it. The motion carried by unanimous voice vote - 5. 94 -545 Report from Public Works Director regarding Approval of Regular Meeting, Alameda City Council September 20, 1994 an Indemnification Agreement with the City of Oakland and the Port of Oakland and Setting a Public Hearing for consideration of Allowing the Port of Oakland to Use Tax-Exempt Bonds for the Portion of their Dredging Project within Alameda. The Mayor announced this item has been pulled from the agenda. 94-546 Report from Community Development Director recommending Approval of Amended Grant Agreement with American Red Cross Alameda Service Center for Purchase of Emergency Shelter Bednights for the Homeless. The Mayor announced this item has been pulled from the agenda. 94-547 Report from Community Development Director regarding Status of Proposal to UCSF for a Build-to-Suit Lab and Strategy for Disposition of Parcel 5. (Councilmember Appezzato) David Plummer, Alameda, stated the Mayor commented a couple of weeks ago that the renovation of City Hall should be of paramount concern but there is no money; if the land purchased for UCSF was such a good deal, perhaps it could be sold for twice the amount. Neil Patrick Sweeney, Alameda, stated the UCSF research hospital expansion and their second campus should be located on NAS property; thousands of jobs would be created; someone should be found to do nothing but work on bringing in UCSF. Don Bergen, Alameda, expressed his views on options to dispose of property. Don Roberts, Alameda, stated Bond Counsel's letter states after the beginning of 1994, UCSF decided not to purchase the land, and in another paragraph that [before the end of 1993] "...there was no reason to conclude UCSF would not honor its commitment..."; and he [Roberts] does not recall any indication UCSF made any commitment to lease or purchase the land. John Scott Graham, Alameda, inquired, since there was no deal submitted from UCSF and Council, can we sell land to another buyer? The City Manager responded the City has the ability to sell the land; the letter from Bond Counsel outlines the requirement to get an IRS ruling if we sell to a private party; and, it can be sold to another government entity. Mr. Graham stated perhaps a trade-off could be made with Encinal Terminals for land of almost the same value, which could be made into a beautiful marina. Councilmember Appezzato stated one reason for placing this matter Regular Meeting, Alameda City Council September 20, 1994 on the agenda is to discuss disposal of the land; when Council bought this land, it obviously had no concrete knowledge of the financial condition of Harbor Bay Isle Associates [HBIA] nor were advised of any potential federal or tax implications restricting use or sale of the land; and now before Council is new information; referred to foreclosure of parcels of land owned by Harbor Bay Village V Associates, and stated it was more obvious to him than ever that this land deal was made to keep the developer afloat; the Assessment District is the same one that contained the 10 acres Council bought; read portions of letter from bond counsel Stephen Casaleggio which he [Appezzato] stated addresses tax consequences and contains an inaccuracy as it states, "...after the beginning of 1994, UCSF decided not to purchase land..." and "... there was no reason to conclude that UCSF would not honor its commitment..." and Council must make it clear that UCSF never agreed to purchase any land; and there was no commitment. Councilmember Appezzato moved that bond counsel Stephen Casaleggio be provided, by the City Attorney, the UCSF proposal that sets forth conditions and the letter from Harbor Bay developer where they indicated that we should purchase the land, and see if that would change his opinion regarding the tax consequences; and that we proceed no further with sale of this land until we receive an IRS ruling as Mr. Casaleggio has advised. Councilman Arnerich stated he agrees with Mr. Roberts and Councilmember Appezzato; bond counsel, an expert lawyer, did make a bad choice of words about concluding UCSF would not honor its commitment as it is true that there was never a commitment; he has talked to Mr. Casaleggio and if Council wishes, he can be available at the October 4th Council Meeting, he and his firm will stand by their opinion at the time the contract was let and their opinion on the bonds issued. Councilmember Appezzato stated, if their's is a poor choice of words or based on their ruling that they thought there was a commitment or purchase, he is asking that Bond Counsel clarify matter as this is a technical subject and the IRS ruling may be affected; and to get an IRS ruling before trying to sell the land. President Withrow stated there is no question in his mind that there are two factual errors in the statement by Mr. Casaleggio and Councilmember Appezzato's motion is fair in requesting clarification of understanding at the time legal guidance was provided this Council. Councilmember Lucas stated Mr. Casaleggio's letter recommends that Council obtain the private ruling regardless, and it may be irrelevant whether there is a commitment by UCSF or not, and she would like the City Attorney's opinion on that. Regular Meeting, Alameda City Council September 20, 1994 The City Attorney stated bond counsel has, among other things, informed her that the decision of the Council in 1993 was correct and at that time, the IRS's position was to allow a subsequent transfer to a private entity; the reason for concern is that, because of the state of the economy, a number of properties financed by public bonds are being sold to private entities and IRS has modified its position, and property must now be held five years or sold to a government entity, unless a private ruling is obtained, on a case-by-case basis, and the ruling costs $3,000 as does any opinion requested from them, and takes about six months. In response to President Withrow, the City Attorney stated Bond Counsel said the downside risk is if the IRS enforced provision, bonds are taxable. Councilmember Lucas stated, if we obtain the private ruling and it is favorable, we can sell the property; if unfavorable, we can hold the property for five years; the City Attorney added that it could be transferred to another public use; and Councilmember Lucas noted the difference in interest could be calculated and a decision made. The City Attorney agreed, however, she related Bond Counsel stated that because of complexities in dealing with the tax returns of each bond person, he did not recommend it [selling it to private entities without IRS approval]. President Withrow and City Attorney commented that bond counsel covers City's liability and any damages that might accrue on the basis of advice provided to the City. Councilmember Appezzato stated his concern is that there are inaccuracies in the letter and he wants to be sure when Bond Counsel submits the document to the IRS that the information is accurate and does not state that UCSF made a commitment to buy or purchase land, and that the requirement to purchase land came from Doric Development. Vice Mayor Roth stated he would prefer the City keep two acres for the soccer field, and lease remainder of property to private enterprise to build. President Withrow concurred with Councilmember Appezzato that there was a misstatement of fact. Councilmember Lucas stated Council can trust City Attorney to clarify facts with Bond Counsel and Mr. Casaleggio need not attend; she would like to obtain ruling as a backup position so City can proceed without delay; understands Vice Mayor's position but would like IRS's position and whether City has option to sell without waiting for 5-year period, believes that option is worth $3,000 [for IRS ruling]; and will support the motion. Regular Meeting, Alameda City Council September 20, 1994 Councilmember Appezzato stated his motion is to clarify the bond counsel's letter; he does not necessarily need the bond counsel's attendance at the meeting, he [Casaleggio] may draft another letter so that it is absolutely clear where he stands on the ruling, that he understands the position of UCSF vis a vis Doric; and then go forward with a request for an IRS ruling. Councilmember Lucas seconded the motion. The City Manager requested clarification concerning marketing the property, and that if an offer comes in, it be made contingent upon a favorable ruling from the IRS. Councilmember Appezzato further clarified that the marketing of the property can proceed, and if an offer comes in, it be made contingent upon a favorable ruling from the IRS. Councilman Arnerich stated he would like in addition to Councilmember Appezzato's motion, to direct the City Manager to obtain the tape of the Council Meeting when the discussion with bond counsel took place, and have it available in his [City Manager's] office for Council's review, as well as the material in the packet that evening. The City Manager stated he would provide the copy of the transmittal and report; the tape would be kept by the City Clerk's Office. The City Manager stated he has heard citizens say perhaps the money could be spent for City Hall and/or other good projects; however, this money cannot be spent for those purposes; this money has been paid by surrounding property owners in an assessment charged to them by the City at their request and was to be used for a project within the assessment district for benefit of those adjacent property owners; and we cannot spend that public trust on other things. Vice Mayor Roth stated he would like to have staff go ahead and proceed with the three options with the consideration that we retain enough acreage for two soccer fields in each option. President Withrow inquired if that amendment to the motion is acceptable. Councilmember Appezzato agreed they may proceed on those other options. In response to Councilmember Appezzato, the City Manager noted if the land is sold and a surplus occurs, that money can be used elsewhere; if we get exactly what we paid for it, that must go back to the assessment district. Regular Meeting, Alameda City Council September 20, 1994 Councilmember Lucas noted the appraisals of the land were $8 and $9-$11 per square foot, and City paid $4, so hopefully there will be surplus. Councilmember Appezzato stated these are public funds, subject to public trust, and he voted no [on the UCSF proposal) because he did not believe funds should have been spent in the manner they were. Councilmember Appezzato's motion, including amendment, carried by unanimous vote - 5. 94-548 Ordinance No. 2675, N.S. "Amending the Alameda Municipal Code Section by Amending Subsection 2-63.10 (Retention for Public Use) of Section 2-63 (Lost, Stolen and Unclaimed Property), of Article V (Administrative Procedures and Policies), Chapter II, (Administration) Relating to Disposition of Unclaimed Property to Non-Profit Corporation Providing Public Service." Finally Passed. Don Bergen, Alameda, stated this money is supposed to go to the homeless; noted money that has already been spent on the homeless; and stated if small amounts expended by the City could be saved, we could open up City Hall again on Fridays. The City Manager advised that this agenda item refers to providing unclaimed property to non-profit organizations. Vice Mayor Roth moved adoption. Councilman Arnerich seconded the motion which carried by unanimous voice vote - 5. ORAL COMMUNICATIONS, NON-AGENDA 94-549 Don Bergen, Alameda, commented concerning the Crime Bill, a Chronicle article stated provision will be made for 20,000 police officers, not 100,000; the matter is very complicated; the money is not there; much will be deficit spending, and will be used for many programs. 94-550 Neil Patrick Sweeney, Alameda, commented an Alameda newspaper noted HUD's accusations were retracted and he hopes everyone noticed that; and he encouraged City employees and citizens who are renting, to attend the Alameda Homebuyers' Fair. 94-551 Betty Ballerini, Alameda, stated, for about 2 years, a Webster Street property between Buena Vista and Lincoln, on which there had been a gas station or a house, makes the area look shabby and she would like something done. President Withrow requested the City Manager to provide a report for the next Council Meeting on that property. Vice Mayor Roth noted the City has been working on several options; Regular Meeting, Alameda City Council September 20, 1994 and something will be done soon. Councilman Arnerich described some of the City's actions, the owner's financial problems in proceeding; and the need to proceed legally. Councilmember Lucas stated the owners have agreed to clear the weeds and trash within fifteen days; the fence was repaired at one time, however, it is down again, and needs attention. The City Attorney stated she is sure the matter will be brought back as a properly agendized item for discussion. 94-552 David Plummer, Alameda, stated it is upsetting to see people come by and feel they have license to steal from recycling containers; he would like to see the Police Department consider stolen recycled items as stolen property, and confiscate those goods. 94-553 John Scott Graham, Alameda stated that his physician provided information on Section 8 housing to him which Housing [Authority] had not given him; he believes something should be done for those who are disabled; and commented, if the Veterans Administration built a hospital on Laney College property, veterans would benefit, and Laney and Merritt Colleges could have student nurse training. COUNCIL COMMUNICATIONS 94•554 Councilmember Appezzato stated that he was called by a Times-Star reporter, advised the Alameda County Board of Supervisors voted to take away one shift from the bridges and are awaiting a ruling from the Coast Guard, and that may be an agenda item for the near future to consider power and sailboat owners' input. 94-555 Councilmember Lucas discussed HUD's dismissal [of matter concerning] President Withrow and herself; and pointed out that she believes it was due to the reporting of William Brand, Oakland Tribune, who picked up the issue, the Associated Press picked it up, it became a national issue, and 60-Minutes reporters discussed the matter with her; and only after it became a national issue and reporters made inquiries with top management of HUD, was it dismissed. Councilman Arnerich commented that was a frivilous action by HUD. 94-556 Councilman Arnerich stated he noted in today's newspaper, the State of California received $5,000,000 from PG&E because of the fire incident; and he wants to be sure proper billings are sent in for everyone involved in that fire; and that we receive our fair Regular Meeting, Alameda City Council September 20, 1994 amount just as the State did; and requested information be informally provided to Council. ADJOURNMENT The meeting was adjourned by President Withrow at 9:48 p.m. Respectfully sub ' ted, DThNE B. FELSCH, CMC City Clerk The agenda for this meeting was posted in advance in accordance with the Brown Act. Regular Meeting, Alameda City Council September 20, 1994