1992-02-11 Special CC Minutes4
SPECIAL MEETING OF THE ALAMEDA CITY COUNCIL
FEBRUARY 11, 1992
The meeting convened at 7:01 p.m., with President Withrow presiding.
ROLL CALL - Present: Councilmembers Arnerich, Camicia, Lucas, Roth,
and President Withrow - 5.
Absent: None.
92-125 Report from Public Works Director recommending approval of
contract for Alameda/Oakland Ferry Service.
The Public Works Director explained the background of the matter,
noting recommendation is for the contract to be awarded to Blue &
Gold Fleet, and noted reasons for choice.
James Manues, Vice-President, Operations, Seajet Cruise Lines, Chula
Vista, stated Seajet protests the bid and selection process used to
determine the highest qualified bidder; noted reasons Seajet should
have been awarded the contract; requested Council reevaluate the
bidders or resubmit the Request for Proposal (RFP) with selective
information.
Councilmember Lucas expressed concern that Blue & Gold has been
anti-competitive; inquired if Seajet opposes additional ferry
service by another provider [Harbor Bay Maritime] in Alameda, to
which Mr. Manues stated they do not.
Councilmember Roth stated this matter has been handled in a rush and
discussed marketing commitment of Seajet with Mr. Manues, who noted
$12,000 would be given to the Alameda/Oakland Ferry Service Task
Force Committee, and an additional $250,000 to be handled separately.
Councilman Arnerich stated he is not as concerned about money as
service, responded to Mr. Manues's comments; noted Seajet did not
call Council and discuss any problem with bidding process; Alameda
wants service.
President Withrow stated marketing funds address the prime issue of
concern with ferry operation since its inception; if marketing is
done effectively, it is a substantial investment for the City.
Councilmember Camicia stated he wanted the matter put out to bid to
save money and get better service; and it appears the City will be
$142,000 or $286,000 better off because of the process.
Responding to President Withrow, the City Manager stated he does not
know of any privileged information given to any bidder, but if
questions are received on City's Requests for Proposal, clarification
is provided.
Mr. Manues stated comments were not meant to indicate staff was
secretly meeting with other bidder; but Seajet was competing against
bidder who had extensive negotiations with City for new contract.
The City Attorney stated she does not see any problem with the RFP
process; her understanding is that staff used a RFP for flexibility
February 11, 1992
46
in order to provide the best possible service to the City.
Councilmember Lucas stated she questions whether she can vote foi
Blue & Gold on the basis of facts she has at this time.
Councilmember Camicia agreed and inquired if matter can be held over
two weeks.
The City Manager stated staff's only concern is the existing contract
expires at end of March, 1992; if Council decides on a different
carrier than Blue & Gold, that carrier needs time to provide
necessities to continue ferry service when other contract expires.
Steven Herman, Attorney, Blue & Gold Fleet, stated new contract does
not permit action that is anti-competitive to other City-sponsored
transportation services; Blue & Gold's bid includes more runs,
extension of runs, $200,000 cash to City for marketing; he is aware
of no special information given Blue & Gold; and further compared
the Blue & Gold and Seajet proposals.
Steven Hanson, Staff Member, Port of Oakland, stated Port and City
have Agreement, are partners in [ferry service] venture; appreciates
Alameda has been lead agency, Port works closely with City staff,
Blue & Gold has demonstrated corporate experience; Port staff
supports City staff recommendation, and believes process is fair.
Rob Rhodes, Alameda, stated he spoke at last meeting urging approval
of Blue & Gold [contract]; and, again, asked Council to award
contract to Blue & Gold.
Councilmember Camicia noted Council wanted best deal possible for the
City and because of [bid process], the contract will be much better
for the City.
President Withrow stated Council must provide best ferry operation at
lowest cost.
Nancy Chapman, President, Alameda/Oakland Committee for Aquatic
Transit [AOCAT] stated AOCAT protested Harbor Bay Ferry last summer
in the interest of large ridership, to ensure continued funding this
year; she [endorses] a stable, reliable, proven service; and the
current provider has shown that commitment.
Christine Peterson, Alameda, stated she is a rider; Blue & Gold has
been reliable and helpful; and a local supplier who has been
excellent should be supported.
Linda Lowe, Alameda, stated Blue & Gold has done a good job; she
does not want another ferry service about which nothing is known.
Graham Claytor, Alameda, Vice-President, AOCAT, stated time is
running out; encouraged Council to listen to staff and do what is
best for City.
President Withrow agreed City is out of time; Council must select a
contractor that could cost the City $250,000, or run risk of not
having continuation of service; Council has been put into position
of making a decision that financially, it would prefer not to do.
February 11, 1992
47
Herb Severns, Alameda, stated speedy, modern vehicles sell well, on
land or water, which promotes ridership and efficiency.
Councilmember Roth stated he opposed requesting proposals partly
because a major commitment cannot be rushed; Council put staff in
difficult position of putting comprehensive package together quickly;
Council must determine when City wants to go to bid again, which
should be when City obtains new boat, in 18 months, to give staff and
bidders time to study issue and submit good proposals.
Councilmember Camicia stated Seajet's proposal is superior but he
wants no gap in service, suggested Council reapprove Blue & Gold,
shorten contract term to 18 months; provide well-established
criteria; in 12 months, start bid process; make decision at end of
18 months.
Councilmember Roth agreed, except decision must be prior to deadline,
as three-month period is necessary to allow contractor to gear up for
continued service.
Councilmember Camicia moved that, at end of 12 months, RFP should go
out; at end of 15th month an award of contract be made; the winner
should be ready at the end of 18 months; and Blue & Gold will
[currently] be [awarded] 18-month [contract]. Councilmember Roth
seconded motion.
Councilman Arnerich stated RFP was for one year with 4-year option,
no one has spoken against Blue & Gold, Council knows nothing about
Seajet, Seajet can promise everything and give nothing; and he will
not vote for it.
Councilmember Lucas stated at this point, she knows nothing about
Seajet, is not convinced Blue & Gold is best permanent ferry service
at best price, wants much more ferry service on Bay; and will vote
for Councilmember Camicia's motion as it is best temporary solution.
The motion was carried by the following voice vote: Ayes:
Councilmembers Camicia, Lucas, Roth, and President Withrow - 4.
Noes: Councilman Arnerich - 1. Absent: None.
ADJOURNMENT
The meeting was adjourned by President Withrow at 8:10 p.m.
R ectfully sub 'tt
DIANE B. FE SCH, C C
City Clerk
The agenda for this meeting was posted in advance in accordance with
the Brown Act.
February 11, 1992