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1993-02-02 Regular CC Minutes24 MINUTES OF REGULAR COUNCIL MEETING OF THE ALAMEDA CITY COUNCIL FEBRUARY 2. 1993 The meeting convened at 7:45 p.m. (following the Annual Meeting of the Alameda Public Improvement Corporation Annual Meeting) with President Withrow presiding. The Pledge of Allegiance was led by Vice Mayor Roth. Reverend Doug Henderson gave the invocation. ROLL CALL - Present: Councilmembers Appezzato, Arnerich, Lucas, Roth, and President Withrow - 5. Absent: None. ANNOUNCEMENTS OF CLOSED SESSION ACTION(S) Mayor Withrow announced that Council convened in Open Session at 7:00 p.m. for staff review of the Agenda; at 7:05 p.m., the Council adjourned to Closed Session to consider: 93-049 Pending Litiaation, pursuant to Subsection (a) of Section 54956.9 of the Brown Act, Takeda v. City of Alameda: Mayor Withrow stated no action was taken. PROCLAMATIONS AND SPECIAL ORDERS OF THE DAY. 93-050 Proclamation declaring the City's support for a Midnight Basketball League in Alameda, and encouraging all citizens and businesses to provide support. Mayor Withrow read and presented the Proclamation to Michael Hastings-Smith; Mr. Hastings-Smith expressed appreciation and commented on the benefits of the program. CONSENT CALENDAR At the request of a citizen, the resolution 93-056 concerning Tree Planting Program Grant Application, was removed from Consent Calendar for discussion. Councilmember Lucas moved approval of the remainder of the Consent Calendar. Councilman Arnerich seconded the motion which was carried by unanimous voice vote - 5. Items so enacted or adopted are indicated by an asterisk. *93-051 Minutes of the Regular Council Meeting held on January 19, 1993, and Special Council Meetings of January 11, and January 19, 1993. Approved. *93-052 Report from Assistant City Manager regarding the Alameda County Paratransit Five-year Plan Revision. Accepted. *93-053 Report from the Assistant City Manager regarding the Americans with Disabilities Act (ADA) and Potential Effect on February 2, 1993 25 Traditional Paratransit Programs. Accepted. *93-054 Report from Finance Director transmitting Agreed upon Procedures Report on Compliance with the Proposition 111 1992-93 Appropriations Limit from Maze and Associates, External Auditors. Accepted. *93-055 Ratified Bills, certified by the City Manager to be true and correct, in the amount of $1,913,765.97. 93-056 Resolution No. 12366 "Authorizing a Grant Application to the California Department of Forestry and Fire Protection for the National Small Business Administration Tree Planting Program for 1993." Adopted. Christopher Buckley, Alameda, stated this Resolution and the Public Hearing on CDBG funding, 93-057, both involve Federal Grant monies, and he would like Council to consider using one, or both, of the sources to complete the City's Street Tree Master Plan, as a number of unresolved issues exist. The Public Works Director explained due to considerable cuts in the Capital Improvement Program for street tree maintenance, staff has been devoting the small amount of funds available to trimming trees; have not been ignoring direction given by Council [when the Plan was considered]; and when funds are available, the Master Plan will be finalized. President Withrow stated tree(s) at the corner of Central and Fernside, in front of the stop sign going outbound of the City, require trimming. The Public Works Director stated staff would look at it. Councilmember Lucas moved adoption of the Resolution. Councilman Arnerich seconded the motion which was carried by unanimous voice vote - 5. REGULAR AGENDA 93-057 Public Hearing to Obtain Citizens' Comments on Housing and Community Development Needs. Edwin Cooney, Alameda, Chair, Mayor's Committee for the Disabled; stated the Committee, submitted a letter in support of CDBG funding for the Mastick Senior Center for the purpose of enhancing disability access; noted the long term benefit to the community, and increasing need. Michael Hellman, Esq., Alameda, Member, Mayor's Committee for the Disabled, stated he was present to voice the need for CDBG funding for Mastick Senior Center and urged Council's sincere consideration of the proposal upon submission. February 2, 1993 Ginny Krutilek, Chair, Alameda Homeless Network, and Advisory Committee Member, Four Bridges Program, urged Council's continued support for the Homeless Network and Four Bridges programs. Jim Franz, Alameda, stated he encourages Community Development to consider a comprehensive homeless prevention program this year. Neil Patrick Sweeney, Alameda, commented on the Naval Air Station retention issue and Home Investment Partnership Program; suggested the City apprise citizens of the Community Reinvestment Act of 1977, Ginnie Mae Employer Assistance Program and Bank of America's Neighborhood Advantage Program. Christopher Buckley, Alameda, stated the comments he made on resolution (93-0561 concerning grant application also apply to this item. Councilman Arnerich stated comments have been well-taken and moved the report be accepted. Councilmember Lucas seconded the motion and stated she is concerned about how many of the City's historic buildings owned by low-income people cannot be properly maintained by the owners; and believes the City needs to look at the general maintenance of deteriorated properties owned by low income people. The motion carried by unanimous voice vote - 5. 93-058 Report from the Public Works Director and the Community Development Director Recommending Approval of a Loan Agreement between the County of Alameda, Neighboring Jurisdictions, and Harbor Bay Isle Associates on Funding Start-up Costs of a Water Shuttle. Herbert Shelmadine, Alameda, Member, Inlandboatmen Union of the Pacific (IBU), Master, Mates & Pilots (MMP), stated IBU endorses funding of ferry system and will support the City in any manner it can; he commended Council for its efforts and Chief of Police for efficient police force. Stanford Shane, Chair, Finance Committee, suggested half of money realized by the Harbor Bay Business Park should be paid to the City, questioned staff report concerning signing of lease, and stated Council should discuss directly with UCSF Board of Regents. William Garvine, Executive Director, Alameda Chamber of Commerce, Member, Board of Education, stated he endorses staff recommendation to approve loan agreement; offered support of business community at large and Chamber of Commerce Board of Directors; commended staff; and looks forward to Council approval. Dennis Green, Alameda, stated he is confident that bringing any projects from UCSF to Harbor Bay would help stimulate and strengthen economy of the region, stimulate local school system in February 2, 1993 7 area of science and may provide employment opportunities for its students. John Barni, Sr., Alameda, stated he is opposed to the City becoming involved in any loan agreements to private enterprise, and requested information on security, repayment and interest. The City Manager, in reply to citizens' questions, stated .a copy of staff report and agreement are on display in the hallway as part of agenda packet; addressed security for the loan, interest, and the source of funding. In response to Vice Mayor Roth, the City Manager stated one-half of any additional amount of property taxes which are a result of additional construction after 1988, is devoted to Transportation Improvement Fund. Don Roberts, Alameda, stated he completely applauds the developer for efforts to get what is remarkable for Alameda, a University of California system; he does not think a private ferry boat is needed, and better negotiating with UCSF may have obviated the need to provide a ferry. Robert Wood, Alameda, Vice Chair, Economic Development Commission (EDC), stated EDC believes the terms of the loan represent a good risk the City should take; and that EDC had moved to recommend Council lead the County and neighboring city efforts to bring UCSF to Alameda, and authorize the City Manager to execute final Loan Agreement and Loan Repayment Covenant with Harbor Bay Isle Associates. Councilmember Lucas stated she believes Council has a good loan package, a good rate of interest, and she will support proposal; understands details with the other communities must still be worked out and her approval would be contingent upon everyone else agreeing to the same terms; and if there are other terms, we should have an opportunity to benefit from those too. Councilman Arnerich stated he does not believe there is any doubt of the benefits that would accrue to both the City and the University; he is concerned about the collateral of the loan, and would like that discussed; should the Business Park not build out, he would not want a building for collateral; he wants the project to succeed; if he could be guaranteed repayment, he would approve immediately. Councilmember Appezzato presented eleven questions regarding the matter [See City Manager's response to questions on the next page]; stated he supports the concept of UCSF coming to Alameda; however, has major concerns: the loan and the security thereon, provision of in-lieu fees to off-set any property taxes and business licenses not paid, and traffic mitigation; reiterated that he cannot support the loan [agreement] in its present form as he believes the City is being asked to pay more than it should, is putting up money first February 2, 1993 and getting paid last, there will be no payment until business permit is issued or land sold and that is not sufficient guarantee; the risk should not be borne totally by Alameda citizens but shared by those who reap most financial reward; he supports the concept of UCSF coming to Alameda, cannot support loan arrangement in current form, and suggests sending proposal back for review and direct staff to make changes adequately to protect the money of City taxpayers. President Withrow stated he would suggest that the matter be pulled until members of the Council have had opportunity to interact with the City Manager and City Attorney so they understand some of the basic issues in the document; and recommended if Councilmembers have concerns on basic background information, they should pull the item to afford opportunity for the Councilmember to interact with staff; and entertained a motion to withdraw. Councilmember Appezzato stated he understands the package; did not have opportunity to meet with City Manager. Councilmember Lucas moved to withdraw and schedule another Council Meeting for this matter. President Withrow stated he would like to amend the motion that each of the items brought up by Mr. Appezzato be addressed in writing by the City Manager and distributed to each Councilmember. Councilmember Lucas concurred, and in addition, stated the City Attorney's input could be included. President Withrow seconded the motion. The vote on the motion was as follows: Ayes: Councilmember Lucas and President Withrow - 2. Noes: Councilmembers Arnerich and Roth - 2. Motion failed. [Councilmember Appezzato did not cast a vote.] Councilmember Appezzato inquired why Councilman Arnerich and Vice Mayor Roth voted no. Vice Mayor Roth replied he believed Councilmember Appezzato may have misunderstood some things. The City Manager stated he could respond to some of the issues raised by Councilmember Appezzato. President Withrow requested the City Manager proceed and stated he would also like to have the items in writing and available so the public has a clear understanding on each one. The City Manager responded the first issue was security: security runs with building permits that run with the land and owner of the land, a charge of 60 cents per square foot of development; question was raised what happens if there is no development: if not paid February 2, 1993 within ten years, they will be in default and all will be due and payable to all entities; the question why is City contributing $400,000 rounded up [from formula amount], because the City is the primary beneficiary, the development will come to Alameda first, will benefit the City first by sales tax, additional employment and construction of ancillary businesses and homes, and will not benefit other jurisdictions; the question why put in money first and get paid last: because Alameda would be first beneficiary, need to be fair to other jurisdictions or they will not participate and this [project] will not proceed; question concerning Covenant surviving bankruptcy: City believes it can get security for current and successive owners for foreclosure but issue of bankruptcy cannot be guaranteed to Council; question regarding loan agreement concerning ferry: Harbor Bay's plan is to bring up ferry for initial test period of two to three months, if they prove they can cross the Bay in a short time another ferry, built to specifications may be substituted however the ferries currently in use would not qualify; concerning the lead agency designation: Alameda County is the umbrella agency, the City would probably continue because it deals with the developer with Traffic Improvement Fund [TIF] requirements and collect money on building permits, then remit to County; on reduction of loan as other co- lenders join: Alameda is considered by other jurisdictions as primary and first beneficiary; concerning TIF eligibility: both City and developer must determine eligibility, it [service] would need to be very different than it is now to qualify, this is a demonstration and carries few people; concerning "without limitation:" the phrase is used because other security is included in the loan agreement under project budgets on page 10, which indicates that if they [Harbor Bay Maritime] submit a report that is not acceptable to the City, the City has the right to not advance funds until satisfied, and the items are not limited because at some future point something that should have been included may not have been; we prefer to be able to control on a quarterly basis and have the right to withhold funds. In response to a question from Councilmember Lucas, the City Manager clarified the [loan] money does not come from the taxpayers generally; it comes from taxes and fees paid by the Harbor Bay Business Park development only, and from only two sources, one- half of property taxes generated beyond 1988, incremental taxes, and the one percent construction improvement tax; other sources of tax monies generated by that development come to the City's General Fund and are not affected by this. In response to President Withrow, the City Manager stated that the Development Agreement approved in 1989 specified the TIF would be created; taxes were specifically spelled out to be only one-half of the incremental tax generated from additional development of Harbor Bay Business Park after 1988 and specific construction improvement taxes generated from that time on from the Business Park building projects; funds can only be spent on traffic mitigation projects that are approved by the City Council and the developer. February 2, 1993 Vice Mayor Roth stated over a period of years the City has spent hundreds of thousands of dollars for economic development; funds may not have been necessarily General Fund monies but were taxpayers' money expended because of a recognition of need for strong economy in Alameda as otherwise the burden shifts to the homeowner; having a University in this City is an honor; five entities are working together in a common effort; if anyone provides a better idea, all will benefit; until all parties sign, it [agreement] is not a complete document. Vice Mayor Roth moved to accept the agreement with the one condition, that Council instruct staff to pursue additional security for the loan in either deeds of trust or assessment districts or some suitable mechanism to where, upon default, we [City] would have a way to collect the money. Councilmember Lucas seconded the motion. Councilman Arnerich stated he agrees with Councilmember Appezzato on many points; many were valid and he addressed the points in a meeting with the City Manager; he believes Vice Mayor Roth is correct, there should be unity; he [Arnerich] wants secured collateral for the monies and if it takes another meeting to give City Manager and staff time to tighten up the contract, he would like to bring the matter back. Councilmember Appezzato agreed with reagendizing the matter until the issues are addressed; the security of the $400,000 should be addressed; he fully supports UCSF but cannot support the agreement in its current form. Councilmember Lucas noted the motion to reagendize failed. Councilmember Appezzato stated he did not vote, because he was asked for a clarification. The City Attorney stated a substitute motion is on the floor. Vice Mayor Roth called for the question on the motion he [Roth] made: to accept agreement with the condition that [City] get additional security. The motion failed by the following voice vote: Ayes: Councilmembers Lucas and Roth - 2. Noes: Councilmembers Appezzato, Arnerich, and President Withrow - 3. Absent: None. President Withrow moved to table the matter, directed the City Manager and City Attorney to work with members of the City Council who have questions and issues surrounding document(s). Councilman Arnerich seconded the motion. The motion was carried by the following voice vote: Ayes: Councilmembers Appezzato, Arnerich, Lucas and President Withrow - February 2, 1993 31 4, Noes: Vice Mayor Roth - 1. Absent: None. ORAL COMMUNICATIONS. NON-AGENDA 93-059 Ted S. Hall, Alameda, Encinal High School Boosters, thanked Council for efforts in acquiring a grant for the Willie Stargell Baseball Field, and presented Councilman Arnerich with a plaque for his, and Council's, support. 93-060 Gerhard Degemann, Alameda, stated he wished to address the Council on the Public Hearing on Housing and Community Development Needs; President Withrow reminded him that the matter before Council was Oral Communications, Non-Agenda and suggested he address the issue at the next Council Meeting. 93-061 Noel Folsom, Alameda, stataed that he, too, had wished to address the Public Hearing matter; commended Councilmember Appezzato for his questions on the Report regarding funding of a Water Shuttle. 93-062 Joseph Camicia, Chair, Airport Operations Committee, stated he would like to call a meeting next week to begin discussing the City's possible strategy for dealing with Oakland Airport expansion plans; the three areas of concern are safety, noise, and east end traffic. 93-063 Don Roberts, Alameda, stated he attended a Cable Television Oversight Committee last week; a proposal by the Assistant City Manager to abolish the Committee and to allow the Public Utilities Board to assume any rate setting duties that might accrue to the City as a result of a new Cable Act, was rejected; and urged Council to pursue the Assistant Manager's suggestion. Mr. Roberts also commended Councilmember Appezzato for his homework, dedication, and forthrightness [regarding Water Shuttle issue]. 93-064 Raymond Stanton, Alameda, East Bay Municipal Utility District [EBMUD], Oakland, alerted Council of the recently released EBMUD Updated Water Supply Management Program; stated a draft Environmental Impact Report is available, public comment period extends to March 15th, and the District is interested in Council's comments on the Plan. NEW BUSINESS AND UNFINISHED BUSINESS 93-065 Councilmember Lucas requested a staff report on the Cross Airport Roadway project. 93-066 Councilmember Appezzato provided to staff and Mr. Camicia, for review and comment, a report from David R. Baker, Esq., Alameda, regarding ten-year development program for Oakland International Airport. [Report suggests expansion of the Oakland Airport onto the Alameda Naval Air Station.] February 2, 1993 32 93-067 Councilmember Appezzato provided to staff, for review and comment, a letter from Anthony Poggio, DPM, that suggests a City facility be established to receive garden debris. ADJOURNMENT 93-068 At the request of Councilman Arnerich, Mayor Withrow adjourned the Council Meeting, at 9:50 p.m., in memory of Marvin "Stretch" Pearson, an athletic director and former school teacher at Alameda High School, and member of the Alameda Men's Club. Respectfully submitted, DIANE B. FELSCH, CMC City Clerk The agenda for this meeting was posted 72 hours in advance. February 2, 1993