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1999-07-17 CC minutes
MINUTESOFTHEREGULARCITYCOUNCILMEETING TUESDAY--AUGUST17,1999--7:30P.M. MayorAppezzatoconvenedtheRegularMeetingat8:13p.m. ROLLCALL-Present:CouncilmembersDaysog,DeWitt,Johnson, KerrandMayorAppezzato-5. Absent:None. AGENDACHANGES (99-401)continuationofPublicHearingtoConsider Introduction ofOrdinance AmendingAlamedaMunicipalCodeSubsection6-7.2to ExpandtheAlamedaBusinessImprovementAreaoftheCityofAlameda [paragraphno.99-417JtoOctober19,1999RegularCouncilMeeting. Mattertabled. MayorAppezzatoannouncedWestAlamedaBusinessAssociation submittedaletterwithdrawingtherequestforexpansionatthis time. (99-402)ContinuationofPublicHearingtoconsideraproposed NegativeDeclaration(IS-99-4)andFindingofNoSignificantImpact PursuanttotheCaliforniaEnvironmentalQualityAct[paragraphno. 99-418]toSeptember7,1999RegularCouncilMeeting. MayorAppezzatoannouncedthematterwouldbecontinued. (99-403)MayorAppezzatoannouncedadoptionoftheResolution ApprovinganAssignmentAgreementByandBetweentheCityandthe AlamedaPublicFinancingAuthority[paragraphno.99-415]wouldbe addressedfirstontheRegularAgendaiftherewasnoobjection fromCouncil.Noobjectionswereheard. PROCLAMATIONS,SPECIALORDERSOFTHEDAYANDANNOUNCEMENTS (99-404)MayorAppezzatoannouncedaBoyScoutTroopwasin attendance. LouisPappas,Scout,statedtheScoutsarefromTroop3. (99-405)CommendationtotheCityofAlamedafor participationintheAlamedaCountyLeadPoisoning Program. Exemplary Prevention steveSchwartzberg, Director,stateda Alameda large CountyLeadPoisoningPrevention grantfromHUDpaysforLead RegularMeeting AlamedaCityCouncil August17,1999 Rehabilitationinfourcities:Alameda,Berkeley,Oaklandand Emeryville;CouncilmembersKerrandDewittsitontheJointPowers Authority(JPA);theCityofAlamedahasspent$405,000toward rehabilitationprojects. CarinaKistler,AlamedaCountyLeadPoisoningPrevention,readthe commendationtotheCityofAlameda. councilmemberKerrstatedtheCityofAlamedastaffisdoinga wonderfuljob. CONSENTCALENDAR MayorAppezzatoannouncedtheawardofContractfordesignof TinkerAvenueextension[paragraphno.99-412]wasremovedfromthe ConsentCalendarfordiscussion. ViceMayorDaysogmovedapprovaloftheremainderoftheConsent Calendar. councilmemberDewittsecondedthemotion,whichcarriedby unanimousvoicevote5.[Itemssoenactedoradoptedare indicatedbyanasteriskprecedingtheparagraphnumber.] (*99-406)MinutesoftheSpecialandRegularcityCouncilMeetings heldonAugust3,1999.Approved. [Abstain:CouncilmemberJohnson-1.] (*99-407)RecommendationtoacceptQuarterlyInvestmentReportfor theperiodendingJune30,1999.Accepted. (*99-408)RecommendationtoacceptQuarterlySalesTaxReportfor thefirstquarterof1999.Accepted. (*99-409)RecommendationtoaccepttheworkofRubiconEnterprises forLandscapingMaintenanceofMedianStripsandSpecialAreas,No. P.W.03-97-05.Accepted. (*99-410)RecommendationtoaccepttheworkofTotalTreeCarefor PruningTreeswithintheCityofAlameda,No.P.W.03-97-06. Accepted. (*99-411)RecommendationtoaccepttheworkofRichardHeaps, ElectricalContractorforEastEndSignalCoordinationProject,No. P.W.07-97-18.Accepted. (99-412)RecommendationtoawardContractintheamountof $661,400toBellecci &Associates,Inc.fortheDesignofTinker AvenueExtensionProject,No.P.W.04-99-14. RegularMeeting AlamedaCityCouncil August17,1999 ViceMayorDaysogstatedtheprojectwilladdressextensionofa roadfromtheAlamedaPointFleetIndustrialSupplyCenterareato theMarinaVillageredevelopmentarea;thereisgreenspacein frontofseniorhousing[atMarinavillage];notedtheimportance ofsaidgreenspace. ViceMayorDaysogmovedacceptanceofthestaffrecommendation. councilmemberKerrsecondedthemotion,whichcarriedbyunanimous voicevote-5. (*99-413)IntroductionofOrdinanceApprovingandAuthorizingthe ExecutionofTemporaryConstructionEasementsBetweentheStateof California,DepartmentofTransportation,asGrantee,andtheCity ofAlameda,asGrantor,fortheSeismicRetrofitProjectforthe PoseyandWebsterStreetTubes.Introduced. (*99-414)Ratifiedbillsintheamountof$4,158,459.93. REGULARAGENDAITEMS (99-415)ResolutionNo.13134,"ApprovinganAssignmentAgreement ByandBetweenthecityandtheAlamedaPublicFinancingAuthority inConnectionwiththeIssuanceBytheAlamedaPublicFinancing AuthorityofItsRevenueBondstoFinancetheAcquisition, Construction,InstallationandEquippingofVariousCapital ImprovementstoAlamedaPoint(theFormerAlamedaNavalAir Station)andtoFinancetheAcquisition,Construction,Installation andEquippingofVariousCapitalImprovementsforthecityand ApprovingRelatedDocumentsandOfficialActions."Adopted. LenGrzanka,Alameda,requestedBondCounseltoaddresswhythe city'sparticipationintheBondunderwritingisessential; inquiredwhetherthefullfaithandcreditoftheCitywouldback bonds;statedifso,theGeneralFundmightnotbeoffthehook;if thefullfaithandcreditoftheCityisbeingputup,the taxpayersareonthehook;inreviewingthefinancingofthe projects,everythingisdependentonazero-costconveyancefrom theDepartmentofDefensetothe CitYi withzero-costconveyance, theCitywouldnothavetopayapennyforthelandtothe DepartmentofDefense(DOD);theClintonAdministrationwantszero- costconveyance,however,therearetwo[opposing]factionsin Congress;onefactionwantsDODpropertytobeconveyedatmarket value;anotherfactionwantsthepropertyatAlamedaPointand otherbasestobeconveyedatlessthanmarketvalue;urgedCouncil toreviewplans,projectionsandmeasuresrelatedtoBase conversioncarefully;statedthetaxpayerswillultimatelybeon thehook;zero-costconveyanceisnotguaranteed. AllanShore,Alameda,statedcomingupwithothertypesoffunding forinfrastructureisagoodinvestment;thecityshouldtakea RegularMeeting AlamedaCityCouncil August17,1999 reasonablegambletomakepropertyasignificantpotential investmentforAlamedaresidents;encouragedCounciltolookfor similaropportunitiesinthefuture. RichardNeveln,Alameda,inquiredwhetherfundingforPoliceand Firewillneedtoincreaseasthe[former]Basegrows;stated growthatthe[former]BasewillchangehowPoliceresourcesare deployed;inquiredhowextracostwillbeshiftedtoAlamedaReuse andRedevelopmentAuthorityfunds,ifthereisgreaterneed[for PoliceandFireservice]atAlamedaPoint;statedtherecouldbe eventswhichrequirePoliceservice,e.g.atSkatePark;further inquiredwhetherthereisamechanisminthefinancingplan. TheDeputycityManagerstatedtheFinancingPlanisconsistent withtheBusinessPlan;oneofthecostcomponentsintheBusiness PlanforAlamedaPointisaprovisionforpublicsafety,both PoliceandFire;theprogramprovidesadequatefundstoprovidea levelofPoliceprotectionona24-hoursaday,7-daysaweek,52- weeksayearbasis;thePoliceChiefiscommittedtotheamountof fundingintheBusinessPlanforthenextfive-years. Mr.Nevelnfurtherinquiredwhetherfundingamountsaresubjectto change. TheDeputyCityManagerrespondedthebudgetforthefirstyearhas beenadopted;statedplansforthefollowingfouryearsaresubject toCouncilreviewandadjustmentasappropriate. councilmemberDewittmovedadoptionoftheResolution. councilmemberKerrsecondedthemotion,whichcarriedbyunanimous voicevote-5. (99-416)RecommendationtoacceptSocialServiceHumanRelations BoardReportontheFY1999-2000WorkProgramandallocatefunding tosupportBoard/WorkGroupActivities. EdDankworth,President,SocialServiceHumanRelationsBoard (SSHRB),statedSSHRBproposesabudgetincreaseof$11,636;aplan hasbeenputtogetheronhowtheBoardplanstospendthefunds; thefundsareneededtocompletetheprogram;urgedCouncilto approvethefunding. CouncilmemberDeWittstatedapprovalwillprovidefundsforthe Healthystartprogram,childcareandothereducationalprograms; theAlamedaYouthCollaborativewillbedoingexcitingthings;a greatdealofthefundingwillgotochildrenandteenagersin Alameda. councilmemberDewittmovedapprovalofthestaffrecommendation. RegularMeeting AlamedaCityCouncil August17,1999 councilmemberJohnsonsecondedthemotion. Underdiscussion,councilmemberKerrstatedtheSSHRBdoesagreat job,membersaregoodpeopleandtheirprojectsaregood;however, shehasaproblemwithfundingprogramsandactivitiesthrougha Board;theSSHRBshouldhaveitsprojectsconsideredalongwith otherswhenBlockGrantfundingisbeingprioritized;theBoard servestoadviseCouncilonotherprogramsandmightnotbeas favorabletowardsotherprojects,ifithaveitsown. MayorAppezzatostatedtheSSHRBhasanimportantfunction;Alameda isadiversecommunity;therearenotasmanyconfrontationsas otherplacesinthecountry;theSSHRBhasbeensomewhat responsibleforbringingharmonytothecityofAlamedaandis slightlydifferentthanotherBoardbecauseitdealswithhuman emotions. CouncilmemberJohnsonstatedthebulkofthemoneygoestoward staffsupport,notdirectlytotheBoard. Onthecallforthequestion,themotioncarriedbythefollowing voicevote:Ayes:CouncilmembersDaysog,DeWitt,JohnsonandMayor Appezzato-4.Noes:CouncilmemberKerr-1. ***MayorAppezzatoannouncedthathewasadvisedthecityCouncil needstomakeamotionregardingcontinuationofthePublicHearing toconsideranOrdinanceAmendingSubsection6-7.2[paragraphno. 99-417JandthePublicHearingtoconsideraproposedNegative Declaration(IS-99-4)[paragraphno.99-418J. *** (99-417)PublicHearing.toConsider IntroductionofOrdinance AmendingAlamedaMunicipalCodeSubsection6-7.2toExpandthe AlamedaBusinessImprovementAreaoftheCityofAlameda;and (99-417A)RecommendationsontheProposedWestAlamedaBusiness Association/BusinessImprovementAreaExpansion.Tabled. councilmemberKerrmovedthematterbetabled. councilmemberJohnsonsecondedthemotion,whichcarriedby unanimousvoicevote-5. (99--418)PublicHearingtoconsideraproposedNegative Declaration(IS-99-4)andFindingofNosignificantImpactPursuant totheCaliforniaEnvironmentalQualityAct,andaZoningText Amendment(ZA-99-2),toamendSubsection30-4.20oftheAlameda MunicipalCodetodeletetheMasterPlanrequirementforamarket analysisandphasingdiagramandallowforpreparationof DevelopmentStandards,GuidelinesandProceduresin-lieuof RegularMeeting AlamedaCityCouncil August17,1999 detaileddevelopmentplanswithintheMixedUsePlannedDevelopment (MX)District;[continuedtoSeptember7,1999RegularCitycouncil Meeting] (99-418A)AdoptionofResolutionAdoptingaN~gativeDeclaration, IS-99-4,foraZoningTextAmendmenttoDeletetheMasterPlan RequirementforaMarketAnalysisandPhasingDiagramandAllowfor PreparationofDevelopmentStandards,GuidelinesandProceduresIn- LieuofDetailedDevelopmentPlansWithintheMixedUsePlanned DevelopmentDistrict (MX)i [ContinuedtoSeptember7,1999Regular citycouncilMeeting] (99-418B)IntroductionofOrdinanceApprovingaZoningText Amendment(ZA-99-2)toAmendSubsection30-4.20oftheAlameda MunicipalCodetoDeletetheMasterPlanRequirementforaMarket AnalysisandPhasingDiagramandAllowforPreparationof DevelopmentStandards,GuidelinesandProceduresIn-Lieuof DetailedDevelopmentPlansWithintheMixedUsePlannedDevelopment District(MX).[ContinuedtoSeptember7,1999RegularCitycouncil Meeting] councilmemberKerrmovedthePublicHearing legislation]becontinuedtoSeptember7,1999. [andrelated councilmemberDewittsecondedthemotion,whichcarriedby unanimousvoicevote-5. (99-419)RecommendationtoauthorizeincreasingEastEndFerry FareseffectiveSeptember1,1999. councilmemberKerrmovedapprovalofthestaffrecommendation. CouncilmemberJohnsonsecondedthemotion,whichcarriedbythe followingvoicevote:Ayes:CouncilmembersDaysog,Johnson,Kerr andMayorAppezzato-4.Noes:CouncilmemberDeWitt-1. (99-420)RecommendationtoapproveSecondAmendmenttoPurchase andSaleAgreementofthe10.28AcreParcel,APN074-1339-32-1, LocatedwithintheHarborBayIsleBusinessPark,toHarborBay IsleAssociates. LenGrzanka,Alameda,stateditseemsofficialpolicyhasbeen:1) ifitisdisagreeable,dumpitintheWestEnd;2)ifitcosts money,gettheEastEndtopayforit;and3)byallmeans,give DoricDevelopmentandthecommunityatHarborBayIsleafreeride; thefreerideDoricDevelopmenthasreceivedoverschoolfeeswas documentedinhisrecent[AlamedaJournal]newspaperarticle;in 1997,MeasureCwouldhavetaxedeveryparcelofAlamedaland, exceptDoricDevelopment;Doricdonated$500.00tothepro-tax grouptosupportthetaxfromwhichitwouldhavebeenexempt; HarborBayRealtyalsodonated$500.00andthecommunityofHarbor RegularMeeting AlamedaCityCouncil August17,1999 Bay'sHomeowners'Associationgave$265.00tothepro-taxpeople, accordingtoFPPCfilings;thereareabouteightequitysharedlow- incomeresidencesatthecommunityofHarborBayIsle;perhapsa homelessencampmentisneededatHarborBayIsleaswellasthe westend;recommended:1)thecityselltheElmstreetproperty;2) affordablehousingfeesbeleviedonDoric's10.28Acres;and3) the$800,000fromaffordablehousingfeesandsaleoftheElm streethome,beusedtobuyafewunitsforthehomelessonSea ViewParkway. CharlesWard,Alameda,requestedtheCityCounciltoreviewthe information;statedifthereisawaytoincreaserevenuesforthe schoolsandcity,itshouldbedone. MayorAppezzatogaveanoverviewofthehistoryoftheproperty; statedHarborBayIsleAssociatesisrequestinganextension;the purchasepricehasbeenagreedupon;grantinganextensiontothe Agreementhasnothingtodowithschoolfees;thathewillsupport thestaffrecommendation. viceMayorDaysogstatedthatheisinfavorofmovingforwardwith thestaffrecommendation;seekingschoolfeeswoulddragdowna process;evenifthecitysoughtschoolfees,itwouldnotbe enoughtopayforaschool;theeffectivewaytopayforschoolsis throughaparceltax. ViceMayorDaysogmovedapprovalofthestaffrecommendation. councilmemberJohnsonstatedtheCityCouncilhasshownconcernfor schoolsinAlamedathroughon-goingdiscussionwiththeSchool Districtregardingschoolfees;•requestedthecityAttorneyto addresswhethertheliquidateddamageclauseintheAgreement ensurestheCitywillreceivethemoneyifthedealdoesnotgo through,aslongasthecityisnotresponsibleforitnotgoing through. ThecityAttorneystatedthattheclauseisenforceable;ifthe Councilwouldlikefurtherassurances,representativesofDoric couldberequestedtoverbalizetheircommitmentofpayment. councilmemberJohnsonstatedthereisconcernamongmembersofthe public,requestedDoricgoonrecordtonight,tosatisfyconcern. TimHoppen,PresidentandChiefOperatingOfficer,HarborBayand theDoricGroup,statedregardingthefundsdepositedinescrow, whichtotalabout$100,000assumingapprovaltonight,intheevent thatthetransactionmovesforward,the$100,000alongwithaccrued interestwouldbeappliedtothepurchaseprice;intheeventthe transactiondoesnotmoveforward,the$100,000andaccrued interestwillrevertbacktothecity. RegularMeeting AlamedaCityCouncil August17,1999 councilmemberJohnsonsecondedthemotion. Underdiscussion,CouncilmemberKerrstatedpenaltymoneyisnon- refundable;however,penaltymoneywillapplytothepurchase price;ifthesalegoesthrough,thecitywillnotreceiveextra money;6%intereston$2.2Millionis$120,000annually; negotiationshavegoneonforoverayear;theCityisnot receivinginterestonthemoney;thetransferof$200,000to generalfundismusicalchairs;theTrafficImprovementFund(TIF) wouldrelievetheAssessmentDistrictof$200,000ofCrossAirport RoadwayfundsandtheAssessmentDistrictwouldrelease$200,000 intotheGeneralFund;however,TIFwasdesignedtopayforCapital Projectswhichwouldrelievetrafficcausedbythedevelopmentof HarborBayIsleallovertheCity;essentially,HarborBayisdoing whatmorallyshouldhavebeendone,butinagreateramountthan $200,000 i CouncilwasinformedDoricDevelopmentpaidfortwo schools,however,theCityboughtthelandfromDoric;residentsof HarborBayIslehaveheavydutyMello-roosbondsandactuallypaid forschools;thereisagapintheresponsibilityofdevelopers payingforschoolsatHarborBay;thepurchasehasgoneonfora yearnow;theCitypaidforbarelandwithoutentitlements;the purchaseriswaitinguntilplansareapprovedbythePlanningBoard andonlywantstopayunentitledpriceforlandwithentitlements inplace;giventhat,shecannotsupporttherecommendation;the dealismovingnowhere. Onthecallforthequestion,themotioncarriedbythefollowing voicevote:Ayes:CouncilmembersDaysog,DeWitt,JohnsonandMayor Appezzato-4.Noes:CouncilmemberKerr-1. ***MayorAppezzatocalledarecessat8:53p.m.andreconvenedthe RegularMeetingat9:10p.m. *** (99-421)IntroductionofOrdinanceGrantingaNon-ExclusiveCable CommunicationsFranchisetotheCityofAlameda'Bureauof Electricity,d.b.a.AlamedaPower&Telecom,foraPeriodofFive Years.Introduced. GeneralManagerTomEvans,BureauofElectricity(BOE),a.k.a. AlamedaPower&Telecom(AP&T)statedaBusinessPlanwasdeveloped in1997toinvestigatethebusinessopportunitiesintheareaof providingcommunicationservicestoAlamedaresidentsand businesses;thePlanwasreviewedandcommenteduponbythe ConsultingFirmofSRI;baseduponsaidevaluation,thePublic utilitiesBoard(PUB)chosetomoveforward;thenextsteptaken wasavalidationaction;itsobjectivewastodeterminewhetheror nottheBOEhadtheauthoritytoenterintosaidlineofbusiness; aCityCharteramendmentwasdeterminedtobeneeded,and.was [approvedbythevoters]inNovember,1998;marketsurveyswere RegularMeeting AlamedaCityCouncil August17,1999 conductedtodeterminewhethertherewascustomerinterestin havingacompetitivecableproviderinAlameda,aswellasa companywhichwouldprovideInternetaccessonanopenbasis;20% ofsurveyrespondentsindicatedtheywerereadytoswitchproviders immediately;inAprilandMay,1999,BOEsentcardsofinterestto BOEcustomersandreceivedover1,600responses;whentheBOE's namechangetoAlamedaPower&Telecom(AT&P)wasannouncedatthe Art&WineFestival,anadditional1,200individualsexpressedan interestinpurchasingInternetorcabletelevisionservicesfrom AP&TiAP&Tisconfidentthecustomerdemandforservicesisfairly universalthroughoutAlamedaandcontinuestobuild.Oneofthe keyquestionsCouncilraisedishowsaidbusinessactivityrelates tothecorebusinessofprovidingelectricity:thecurrent transfertotheGeneralFundisapproximately$3Million;AP&T expectstheGeneralFundtransfertoincrease,basedonincreased businessgrowthintheelectricitybusinessoverthenexteight(8) toten(10)years.Inaddition,anissuewasraisedaboutthe effectofopenaccessorelectricderegulationonthecorebusiness oftheBOE:thePUBhasresolvedaa i.d issue,atleastona temporarybasis,bypostponingdirectaccessinAlamedaandby waitinguntilsuchtimewhenCongressresolvestheissuesof privateuserestrictionsonthetaxexemptbondsissuedtobuild powerplantsownedbyAP&TandNorthernCaliforniaPower Association(NCPA).Acompetitivepricingreservehasbeen establishedwhichcurrentlystandsat$23Million;reservewill continuetogrowsothatinmid-year2002,thestrandedinvestment indebtonthepowerplantswillbepaidoff,andelectricrates willbereducedbyatleast20%;movingintothetelecommunications businesswillnoteffectfundsdealingwiththestrandedcosts;an implementationofratesreductionwilloccurbeforethefirstbond paymentisrequiredinthetelecommunicationsbusiness. GeneralManagerEvansfurthernotedanotherquestionwasraised pertainingtoexitstrategy,componentsofthesystemand technologicalobsolescence;statedthemajorityoftheexpenditure relatestoinvestmentinconstructionofthefiberopticandco- axialcablesystemthroughoutAlameda;thenextmajorcomponent relatestotheheadendunitwhichhassomeelementof technologicalobsolescence;theBusinessPlanprovidesfor reinvestinginthatpieceinthefifthyearofoperation;whenthe unitisinitiallyinstalled,itwillbenewerthantheother systemsprovidingcableservicethroughouttheBayArea.The Public,EducationalandGovernmentalAccessstudiocostisabout$1 Millioniasmallpercentagewill·requirechangesduetotechnologYi BOEispreparedtoinvestaccordingly.UndertheBusinessPlan, AP&Twillfinancethefirstthreeyearsofoperationthroughthe saleofbonds:financethecashflowandpostponethefirstbond paymentforthreeyears;duringthatperiod,BOEcanbuildupthe numberofcustomersandnotbeconfrontedwithbondpaymentsof approximately$3Millionperyear.BOE'sgoalistoreach8,000 customerstoachieveabreak-evenpointiifBOEisnotatthat RegularMeeting AlamedaCityCouncil August17,1999 levelinthreetofiveyears,theexitstrategyindicatesBOEwill bepreparedtoliquidatetheentiresystem--tosellit:the estimatedvalueisabout$8Million;BOEwouldbeconfrontedwith payingofftheremaining$8-to$10Millionprincipalonthebonds, which,withinthefinancialstructure,AP&Twouldbecapableof doing,ifnecessary.BOEhascontinuedtoworkwithSIGCORP Communications;ifBOEdoesnotwanttobeinthisbusinessatthe endoffiveyears,forwhateverreason,SIGCORPhascommittedto payBOE$16Million--essentiallypayofftheexpenditure;in addition,iftheSystemisworthmorethan$16Million,SIGCORP wantsthefirstrightofrefusal;staffisworkingwiththecity Attorney,BondCounselandSIGCORP'sattorneystofinalizematter; BOEbelievesitnowhasafinancialbackstopthataddressesthe concernofwhathappensifthenumberofcustomersneededisnot achieved.Anotherquestionraisedwas:whatisthesenseof urgency?Fundamentally,therearetworeasons:1)thecurrent interestratesarefavorabletorefinanceBOE'scurrent certificatesofParticipationandblendwithadditionalfinancing forthetelecommunicationsservices;AP&Twouldbeissuingtwo typesofbonds:refinancingtax.exempt,aswellasataxable component;financingratesarefavorableatthistimeandBOEwants totakeadvantageofopportunity;and2}marketdemand:3,000 individualshavestatedtheywanttobuyfromAP&T;thereis continuinginterestfromcorporationsseekingexpansioninAlameda thatneedhightechnologyinfrastructure;thetimetomoveforward isnow;therearesignificantcommunitybenefitsbesidesthe opportunityforincreasingthetransfertotheGeneralFund:ahigh technologyinfrastructurethatwillbebeneficialtoadvance technologyfirmsandfirmswhodependuponafiberoptic infrastructurefortheircommunicationanddatamovementneeds;BOE believespursuingthisopportunitymakessenseatthistime. MayorAppezzatoinquiredwhatthepotentialcustomerbasetotalis, towhichGeneralManagerEvansrespondedapproximately31,000to 32,000customers. MayorAppezzatostatedmarketpenetrationiscurrentlyunderfifty percent;TCIisat43%-47%. GeneralManagerEvansstatedTClcurrentlyhas15,000customers. MayorAppezzatostatedtheBureau's8,000customerswouldcomefrom eithernewcustomersorTCl. councilmemberJohnsonquestioned,inregardtoexitstrategy, whetherpurchaseofthesysteminfiveyearswouldbe"asis". GeneralManagerEvansrespondedintheaffirmative. InresponsetoMayorAppezzato'sinquiryregardingSIGCORP's commitmenttopurchasesystemafterfiveyearsshouldAP&Tdecide RegularMeeting AlamedaCityCouncil August17,1999 tosell,GeneralManagerEvansstatedSIGCORPwouldpay$16Million forthesystem,whichwouldcoverconstructioncosts;depending uponwhatisfinallyworkedoutintermsofbondfinancingcosts, theremaybecostsaround$2MillionAP&Tmayhavetopay. MayorAppezzatoinquiredwhySIGCORPwouldpurchaseaSystemAP&T couldnotmakework. GeneralManagerEvansrespondedSIGCORPhasconfidencetheSystem willworkasaprivateentryintothemarket. InresponsetoCouncilmemberKerr'sinquiryregardingexit strategy,GeneralManagerEvansaffirmedthatiftheSIGCORP alternativewasnotused,AP&Tcouldsellexistingcableequipment for50centsonthedollar,andtheCitywouldbeleftwitha possibledebtbetween$8Millionto$10Million. LenGrzanka,Alameda,statedthataccordingtoAP&TGeneralManager Evans'graph,1997projectionsforbuildout.were$16Million; duringthelastelection,aflyersentoutinsupportofMeasureA statedthecostforbuildingafullservicemunicipal communicationsnetworkwouldbe$7.9Millionwhichwouldbebacked bytheBureau'sreserves;thatheispleasedtheBureauhas implementedabackdoorstrategytoselloutassetsifthebusiness fails,however,hestillhasuncertaintyanddoubt;negotiations [withSIGCORP]shouldbeheldpublicly;theremustbeagood,firm dealtoensurethecitywillgetthe$16Millionback. KenHansen,Member,PublicutilitiesBoard(PUB),.statedAP&Tstaff haveworkedwithvigor,intelligenceandduediligenceinpreparing forthisaction;theyarereadytogoandhavedonetheirhomework; theventurewillmakemoney;thereisaneedforcompetition; citizensaresupportive;havingacity-ownedcablenetwork televisionsystemwillbethekeystonefortheCitytoenterinto othertelecommunicationprojects. SebastianBladassarre,VicePresident,PUB,statedthePUBandAP&T preparedthefranchiseapplicationandbusinessplanwithagreat senseofresponsiblityandacautiousapproach;thesamestandard ofqualityserviceandcompetitivepricingarecornerstone ingredientsinthetelecommunicationsplan;AP&Twouldmake significantcontributionstothecityofAlamedaGeneralFund; since1914,theBureauhasreturnedover$17Millioninsupportof Cityservices,e.g.PoliceandFire;anadditionaleconomicbenefit isAP&TwillsupportlocalbusinessbypurchasinginAlameda; issuanceofthefranchisewillbe·amajorsteptoaccommodatethe needsofadvancedtechnologybusinessesandwillprovideacritical andeffectivetooltorecruitnewbusinessestoAlameda;thatheis confidentthefinancialplanissolidandminimizesrisk;electric rateswillnotbeincreased;Alamedaresidentsorbusinessestax dollarswillnotbeusedtofundtheCableTVbusiness;thePUBhas RegularMeeting AlamedaCityCouncil August17,1999 incorporatedCouncil'sconcern;itistimetoact. LanceRussum,Chair,PUB,statedlastNovember,MeasureApassed eventhoughsupportersonlyspentasmallamountofmoneyagainst aubs t.arrt.i.a L financialopposition;thepeopleofAlamedaspoke [votedforMeasure];the1996TelecommunicationsActisabouta levelplayingfield;accordingtosteveKlein,Superintendentof CommunicationsatTacomaPower,onlyone-yearafterimplementation ofTacoma'scommunications/cableplan,there.are7,000ormore customers;Tacomaexceedsprojectionswithoutmarketing;thesystem cannotbebuiltfastenoughtosignuppeopleonwaitinglist; therehasbeenvirtuallynolossofcustomersreturningto AT&T/TCl;TacomaPowerspentover$100Millionandthesystem's valuehasdoubled;CouncilwasprovidedendorsementfromTacoma's Mayor. KarinLucas,formerCouncilmember,statedtheCityCouncilwanted tolookforothersourcesofrevenue;MayorAppezzatoandshemet withtheBOEtoexplorecontributionstocityfunds;theplancame outofsaidmeetings;fouryearslater,thecityhastheoptionto obtainadditionalfundsfortheCitybudget;thereareadditional benefitsforthecitizensofAlameda;thequalityoflifefor Alamedaresidentswillbebetterbecausetheywillhavetheoption ofservicetotheirhome;theCitywillalsobeamoreattractive communitytobusinesses;requestedtheBureaubegiventhe opportunity. BenTilos,Alameda,urgedCounciltosupportthefranchise;stated theBureauhasalwaysbeencourteousandhastreatedhimlikean owner;membersofthePUBhavealwaysrespondedpositivelytohis needs;theBureauhasprovidedasignificantamountofmoneytothe GeneralFund;thecablebusinesswillprovidealargertransfer[to theGeneralFund];AP&Twillofferanotherchoice;priceswillbe basedoncompetition;andtherewillbelocalcontrolof programming. GeorgeEdwards,Alameda,statedthathehasatelecommunication companywhichhasbeeninAlamedaforanumberofyears;the digitalrevolutionhaschangedcommunications;Alamedaownsahigh- capacityfiberopticnetworkwhichhasthecapacitytohandlecable television,internetaccess,upgradedtelecom.services,videoon demandandhighspeeddatatransfers;homesandbusinesseswould haveincreasedtelecommunicationservices;<911systemswouldbe improved;thesystemisgoodfromatechnicalstandpoint. TracyMcKean,Alameda,urgedpassageofthefranchise;stated organizationsintowncouldbenefitfromcompetition,e.g. donations;thatshewouldliketohaveachoice;thereisa tremendousopportunitytomakeCityofAlamedaabetterplace. RuthBrumfield,formerPresident,HarborBayTelecom,statedthat RegularMeeting AlamedaCityCouncil August17,1999 shesupportsAP&T'sfranchiserequest;havingcompetitionforces companiestoworkharderoncustomerserviceandimprovepricing; cablepenetrationwillincrease;AP&Twillbeabletoprovide betterserviceatmoreaffordableratesandhastheknowledge, resourcesandskillsnecessarytoprovidetheservice. TomReiman,President,BroadBandGroup±nSacramento,statedthe BroadBandGrouprepresentsover600,000homesincommunities similarinsizetoAlameda;therehasbeenverysignificant improvementindevelopmentoftelecommunicationsnetworks;theBOE isfacingsignificanthurdlestoretainbaseascoreelectric serviceprovider;Americanconsumersareaskingforbundled service;networksbuiltfiveyearsagodonotmeetneedsoftoday; infrastructurewillbecomeabenefit;anon-exclusivefranchise encouragescompetition;inFlorida,thelargestcorporate relocation,AmericanAutomobileAssociation,occurredduetophone andcabletechnology;thereareeconomicdevelopmentincentives. MayorAppezzatoinquiredwhetherAT&Twillbeabletobundle services,towhichMr.Reimanrespondedintheaffirmative;stated thecityshoulddemonstratethereiscompetition. InresponsetoMayorAppezzatolsfurtherinquiryregarding maintainingstateoftheartequipmenttenyearsdowntheline comparedtoAT&T,Mr.Reimanstatedcorporategiantsoftenarenot agile;thereisaplaceforwirelineandwirelessservicestoco- existnicely;fiberopticnetworksmeetgrowthneedsofindustry; thereisaformidablecompany,however,thereisnoreasontonot haveasecondaryplayer;thecityshouldnotbelievehavingagiant intownisgoodenough. Billsmith,Alameda,discussedthesignificanceoftechnological advancements. JamesHauer,Alameda,statedAT&T/TCIhasarguedAP&Tshouldnotgo intobusinessbecausebadthingswillhappentoAlameda;AT&T/TCI isdrivenbyprofit;withAP&T,thecitizensofAlamedawillown thebusiness;Alamedansshouldbegivenachoice;relativesin Tacomainformedhimrateswentdownduetocompetition. AllanShore,Alameda,statedthereisalotofdissatisfactionwith TCI;theBureauhasahistoryofinvolvementinthecommunity; peoplerelyontechnology;benefitswillcomeifprovidersallow accesstomorethancabletelevisionbasicbroadcast. Mrs.JimThomas,Alameda,statedlastNovember,shevotedyeson MeasureAtosupporttheBOE'spublicly-owned,revenue-generating businessplans;Teltriedtobuyelection;voiceofpeople prevailed;CityCouncilisonrecordsupportingplans;urged counciltoapprovefranchise. RegularMeeting AlamedaCityCouncil August17,1999 stanLichtenstein,Chair,CableTVAdvisoryCommittee,statedthree yearsagothecommitteedidacablesurveyandfound dissatisfactionwithprogramming,spiralingrates,billingand service;lastspring,theCommitteeunanimouslyapprovedtheBOE's plan;CedarFalls,Iowahasatwo-yearprogramindirect competitionwithTCI;inspiteofTCI'soppositionefforts,Cedar Fallsisaheadofprojectionsinprivateuseofthefiberoptic system. IrvHamilton,Alameda,statedWestAlamedaBusinessAssociation supportsthediversificationforAP&Twhichwillofferanimportant amenityandeconomicdevelopmenttool;asaresident,hesupports competition;cabletvservicewillbeimproved;AP&Tisan importantcommunityresource;AP&Tisinincreasinglycompetitive market;diversificationwillallowAP&Ttheopportunitytocompete. DickHood,Massachusetts,statedthatheworksforasmallfiber opticmanufacturingcompanyoutsideofBoston;fiberopticswill notbeobsoletedbyothertechnologies;mosttechnologyinnovations willenhancefiberoptics;theCitywillbeprovidingaconduitfor services,otherthancable;iftheCityweregoingtofail,the incumbent[TCI]wouldnotbetryingtoconvinceagainstmoving forwardandtherewouldnotbesomeonewaitinginthewingstobuy thebusiness. steveGardner,Alameda,statedthetechnologyisupgradeableand therearenotlimitations;willbeahugeassettotheCityof Alameda. JohnKopchik,AT&T,statedAT&TiseagertoserveAlameda;AT&T offersawide-rangeofvideoanddigitalservicesandproducts,and highspeeddigitalaccessthroughcablemodems;intheverynear future,AT&Twillbeofferingtelephoneserviceoverhybrid fiber/co-axialsystem;acquisitionofTCIbyAT&Tmeansnothing butgoodthingsfortheBayAreaandAlameda;thevideoand telecommunicationsbusinessismovingatlightspeed;competition iseverywhere;AT&Tispreparingitsnetworkandworkforceforthe uncertainmarketsahead;uncertaintyshouldgivepauseforconcern beforeputtingpublicfundsatriSk;urgedCounciltobecautious beforecommittingtensofmillionsofdollarsrequiredtobuildand startuptheservice;furtherstatedalldetailsshouldbe carefullyreviewed;AT&Tbelievescompetitionisgoodfor customers;AT&T'sregulator.[City]maybetheircompetitorwhichis ofconcern;AT&Tplanstocontinuetoworkwiththecitytobuild out.theirnetworkwhichwillprovidebetterandfasterserviceto Alameda. CharlesWard,EconomicDevelopmentCommission,statedthereis economicviabilityofaCity-ownedtelecommunicationandcable network;themarketiscompetitiveandthereismoneytobemade; urgedCouncilapproval;statedthequalityoflifeinAlamedawill RegularMeeting AlamedaCityCouncil August17,1999 improve. DionGriffin,ExecutiveDirector,HarborBayBusinessPark Association,statedsimilarinfrastructureprojectshavebeen occurringthroughouttheunitedstates;AP&Thasassuredthe BusinessParkthattheywouldbeanintegralpartofplans;AT&T hasnot[contactedBusinessPark];andcurrently,HarborBaydoes nothavehighspeedinternetaccess. JohnPiziali,Alameda,statedthathetruststhePUBandAP&T's staff;urgedCouncilapproval. DennisChacones,superintendent,AlamedaUnifiedSchoolDistrict, statedwhentheBoardofEducationendorsedtheBallotMeasureto allowbusinessexpansion,theimportanceofmaximizingthevalueof publicassetstobringbenefittothecommunitywasnoted;cable serviceprovidesbenefitstotheSchoolDistrictandcommunity-at- large;benefitsofcompetitioncanbeseeninTClupgrading servicesandofferingassistancetotheSchoolDistrict;the opportunitytousepublicownershiptoensureequalaccessto informationresourcesiscritical;themunicipalcablesystemwould bringtheadvantageofadigitalnetworktomoreAlamedahomes, businessesandlearningcenters,thananyprivatelyownedcompany; citizenswouldbeshareholdersandprofitscouldbereturnedinthe formofcostsavings;Alamedaisinauniquesituationtoprovide fast,expandable,reliablenetworksforentertainment,information andeducation;heandtheBoardofEducationurgeCounciltomove forward. DebraArbuckle,Alameda,statedthatshewasnotcertainofthe proposal,however,afterthoroughreviewoftheinformationsheis convinceditisagreatidea;urgedCounciltomoveforward. GeorgeOliver,Alameda,statedthathedoesnothavecable,buthe wouldreceivetheserviceifhecouldgetitfromAP&T. JohnDiDomizio,SlGCORPCommunicationsServices,statedSlGCORP's businessisbaseduponworkingwithmunicipalitiestoprovidea networkforthefutureofthecommunity;theproposalisnotabout addingcablechannelsorverybasicservice,itisreallyaboutthe community'srighttoself-determinationinaninformationage;the cityhasanopportunitytoprovideeffectivecompetition; communitiesthroughoutthecountryaremovingforward;thesystem willnotfail;SlGCORPiswillingtoputatriskthepossibilityof writinga$16Millioncheckinfiveyearstobuythesystembecause thereisalowprobabilityofpayout;otherentitiesareputting largecapitalatrisktobeinthebusinessbecausethereare inherentopportunitiesofthetechnology;SlGCORPisastrong partner;offeredtodemonstrateSlGCORP'scommitmentbydonating 150personalcomputerstobeusedintheschoolsystem,community collegeandcitylibrarysystem,providedtheCouncilmoves RegularMeeting AlamedaCityCouncil August17,1999 forward. InresponsetoMayorAppezzato'sinquiryregardingSIGCORP'ssize, Mr.DiDomiziorespondedSIGCORPisovera$1Billioncorporation andisintheprocessofamergerwhichwillmakeitan approximately $2.5 Billioncorporation. MayorAppezzatoinquiredwhetherSIGCORPwouldbewillingto purchasethesystembeforefiveyears,towhichMr.DiDomizio respondedthesystemhastobecompletelybuiltout;thesystem willtakefouryearsforcompletion. InresponsetheMayorAppezzato'sinquirywhetherSIGCORPwould purchasethesystemfor$16Millioninfive-years,Mr.DiDomizio respondedintheaffirmative. MayorAppezzatoannouncedtherewerenomorespeakers. ViceMayorDaysoginquiredhowmanypublicutilitycompaniesarein CableTelevisionbusinesscurrently. MarkHanna,formerCouncilmemberandcurrentPUBMember,stated thereare 75 publicutilitycompanieswhohavethereowncable televisionbusinessrightnow;infirstyearbudget,AP&Texpects tohavemoremoneycomeinfrombroadbandserviceratherthancable TV. PUBChairLanceRussumstatedcommunitiesarejumpingonthe bandwagontodoexactlywhatAlamedaisdoing;manycommunitiesare behindAlameda;thenumberPUBMemberHannaquotedwillincrease overthenextyearortwo;theincreaseofdata,broadbandand internetusewillquadrupleeveryyearforthenextfiveyears;the revenuegeneratingopportunityisenormous. ViceMayorDaysogstatedtheBOEispartoftheNorthernCalifornia PowerAssociation(NCPA)andpoolsresourcestoinvestorpurchase thingsrelatedtotheutilitiesindustry;inquiredwhetherthere hasbeendiscussionoractiontocreatepooledresourcesamongthe 75 publicutilityagencies,similartotheNCPA,todealwith large,significantcostissues. PUBChairRussumrespondedtocutdownprogrammingcosts,thereare anumberofcooperativesinexistence;saidcooperativesareone reasonmunicipalitieshavetheabilitytocompetewell. ViceMayorDaysogstatedthereisconcernabouttechnological obsolescencefive-totenyearsdowntheroad;inquiredhowthe citycanpositionitselftotakeadvantageofchangesinarapidly changingenvironment;statedperhapspoolingresourceswithother utilitycompaniesisonewaytoaddresschangingtechnologies. RegularMeeting AlamedaCityCouncil August17,1999 PUBChairRussumstatedlocalalliancescanbecosteffective. GeneralManagerEvansstatedoneofthereasonsAP&Tbrought SIGCORPonwastotakeadvantageofthebrainpowerofthe organization;thereisasubtledifferencewiththefranchise;the franchiseisbasedoninclusiveness;openaccesswillbeprovided tootherinternetserviceprovidersorotherswhowouldliketouse andrideonthebroadbandnetwork;otherswillbetakingtherisk andinvestinginthetechnologytotakeadvantageofthe infrastructure;AT&T'sapproachisexclusive;AT&Twantstobethe onlyuser;AT&Tisinacourtcase·inPortlandtopreventother usersfrombeingabletakeadvantageoftheirsystem. viceMayorDaysoginquiredwhetherallowingotherusersaccessto fiberopticshasapotentialtogeneraterevenue,towhichGeneral ManagerEvansrespondedintheaffirmative;statedcompetitionand accesswouldbefosteredbasedoncustomers'needsanddemands ratherthanthenarrowerportfolioAP&Twouldofferifthesystem wereexclusive. councilmemberJohnsonstatedtheheadendpartoftheunitismost likelytobecomeobsolete,requestedGeneralManagerEvansto addressthematter,aswellasthelikelihoodofthefiberoptics portionofthenetworkinfrastructurebecomingobsolete. GeneralManagerEvansstatedthevastmajorityoftheinvestmentis inthefiberopticco-axialcablenetworkitself,whichhaslow probabilityofbeingrenderedobsoletewitheventhelatesthigh speedcomputer;awirelesssystemwouldbeacompetitor;thehead endismorelikelytorequirecontinuedinvestmenttobe competitive;theBusinessPlanprovidescontinuedinvestinginthe [headend]systeminthefifthyeartoensureitremains competitive;depreciationwasbuiltintotheBusinessPlanto generateafundforreinvestment. councilmemberDewittstatedhisquestionsdealtwithrisksandexit strategies;withSIGCORPcomingforward,theriskforthetaxpayers isalmostcompletelyeliminated;hisquestionshavebeenanswered. InresponsetoMayorAppezzato'sinquiryregardingtheremaining amountofthefinancialcost,afterfiveyearsandassumingthere isa$16MillioncheckfromSIGCORP,theGeneralManagerstatedthe costis$2-to$4Milliondependingupontheactualfinancingcosts andoverheadassociatedwiththefinancing;thefirstthreeyears ofinterestpaymentsarebeingbuiltintothefinancing;AP&Twould befacedwithpayingsaidcostswhichwouldexceedthe$16Million. PUBChairRussumstatedtherearecriteriawhenasystemsells; whenTacomacompletedtheirsystem,itwasworthtwiceitscost;if thereare8,000customers,at$5,000percustomer,orhigher,the citywouldreceiveatleast$40Millionforthepackage;therisk RegularMeeting AlamedaCityCouncil August17,1999 issosmallandthebenefitsaresoenormous. councilmemberKerrstatedwhenderegulationwasfirstannounced, therewasconcernaboutthesurvivaloftheBOE,however,theCity hasfoundouttheBureaucouldoperateinaprotectedenvironment foralimitedperiodoftime;thePUBhaselectedtodosotohelp payforstrandedcosts;theBureaustaffbegandiscussingan alternatewaytomakemoney;nowthatthecitycanoperateina protectedenvironment,theCitydoesnotneedtotaketheriskto savetheBureau;communicationsfromstaffhaveindicateditis acceptablefortheBOEtotakeriskbecausetheprotected environmentoftheelectricbusinessexists;duetoprotected environment,theBOEcouldaffordtopayoff$8-to$10Millionin debtincurrediftheventurefails;saiddebtwouldbedownto between$2-to$4MillionifSlGCORPputsinap~rchaseoffer;one documentindicatesonlythecableassetswouldbeatrisk,however, anotherdocumentindicatesboththeelectricandcablebusiness wouldbeusedascollateral;thequestioniswhytheCityshould moveforward;theriskisnotneededtoprotectassetswhichbelong tothepeopleofAlameda;thereisrisk;thefirstBusinessPlan had5,000subscribersasthebreakevenpoint;thelatestfigureis 8,000;projectionseventuallyreach.amuchhighernumberofpeople thanhavecablecurrently;theCityisaline.-of-sitecity;the transmittercanbeseen;peopledonotwantmoretelevisionthan theygetiTCl/AT&Toffersservice;veryhigh-speedinternetaccess isavailabletothepeopleofAlameda;theCitydoesnothaveto putinthesystemforthepeopleandcompaniesinAlamedatohave accesstohightechnology;theremustbeareasonnootherprofit- makingcompanyiscompetingwithTCl/AT&T;acoalitionsimilarto theNCPAmightnotbebeneficialbecauseNCPAhasanenormous amountofdebtofwhichtheCityisobligatedtopayacertain percent;gettingintocoalitionshasprovedtonotnecessarilybe agoodidea;MeasureAwasavotetoallowtheBureautogointo otherbusinesses,notspecificallycable;thecitycontrols grantingoffranchisesandisnotdeprivingpeopleofhaving access;Councilisbeingtolditisgreattotaketherisk; however,theCityisnotaprivatecompanyandisriskingthe assetsofthepeopleofAlameda. MayorAppezzatostatedmanypeoplearesupportive;thefinancial commitmentofSlGCORPtoholdthecityfinanciallyharmlessafter fiveyearsisnewtonightandhasnotbeenreviewedbythecity Attorney,CityManagerandFinanceDirector;thatheiswillingto waituntilstaffinformsCouncilthis[agreementwithSlGCORP]is thewaytogo;hemetwithAT&T;AT&Trequestedthematterbe delayedfor30daysto.allowpresentationofapackagewhichwould providefinancialbenefitstothecommunityorareductionincost; waitingonadecisionofthismagnitudeisacceptabletohim;AT&T isnotacompanytotakelightly. councilmemberJohnsonstatedthatshewasawareofAT&T'srequest RegularMeeting AlamedaCityCouncil August17,1999 forcontinuance,however,itwasnotmentionedbyAT&T's representativetonight. MayorAppezzatostatedAT&Twantstoprepareafinancialpackage. councilmemberJohnsonstatedtherewasnofurtherrequestfora continuance[byAP&T]ionewaytoresolvethemattertonightis councilcouldvoteontheissueconditioneduponsatisfactory negotiationofaCityAttorney-approvedagreementwithSIGCORP; Councilcouldgivedirectiontostafftocontinuediscussionsand negotiationswithAT&TiifAT&Tisseriousaboutwantingtopartner withAlameda,Council'svotewouldnotpreventsuchdiscussions. councilmemberJohnsonfurtherstatedtheissuehasnotbeentaken lightly;thatshehasbeenverycautiousandtakenavery conservativeapproach;shehashadmanymeetingswithmany differentpeople;shewasveryconcernedabouttheBOEandCity goingintosaidbusinessagainstwhathasbeenheardstatedbythe giantsintheLndus t.ry:shehasdoneagreatdealofresearch, gatheredinformation,andspokentomanyknowledgeablepeople;City Councilhasaresponsibilitytotakethematterveryseriously becausetheassetsbeingriskedareassetsoftheCityofAlameda andresidents;thisisnotthelaststepintheprocedure;atthis point,cityCouncilshouldvoteyesornoontheFranchise applicationwithdirectiontostafftocontinuenegotiationswith AT&T,conditioneduponasatisfactoryagreementwithSIGCORP;the offerbySIGCORPeliminatessomuchoftheriskbeingtaken, CouncilshouldvotetonightontheFranchiseAgreement. councilmemberKerrinquiredwhetherCouncilwouldbegrantingBOE therighttoissuebondsiftheygranttheFranchise. TheCityAttorneyrespondedtherewouldbeaseparatehearingon theissuingofdebtandfinancing;thematterbeforeCouncilis merelyanApplicationtograntAP&Ttheabilitytodothebusiness; andCouncilhastheobligationtoconsiderwhetherornotitwill issuedebttosupportit. councilmemberKerrstatedtheCityperhapscouldgetabetterdeal withAT&Tifthereisnotapositivevotetonight. councilmemberDewittmovedthatCouncil:1)grantAlamedaPower& Telecomtheauthoritytohaveafive-yearcommunicationsfranchise, contingentuponanagreementwithSIGCORPwithregardto financing;and,2)[direct]negotiationscontinuewithAT&T. TheCityAttorneyclarifiedCouncilmemberDewitt'smotionas follows:[council]introducetheOrdinanceandmakethefour findingsrecommendedintheStaffReport,subjecttothetwo(2) conditionsrequestedbyCouncilmemberJohnson. councilmember Dewitt concurredwiththeCity Attorney's RegularMeeting AlamedaCityCouncil August17,1999 clarification. councilmemberKerrinquiredwhetherCouncilmemberJohnson's conditionsincludedacquiringawrittenstatement/commitmentfrom SIGCORP. CouncilmemberJohnsonresponded[conditionsinclude]awritten agreement[fromSIGCORP]approvedbytheCityAttorney'sOffice. councilmemberKerrcommentedthattheCityAttorney'sOffice approvesthelegalityofdocumentsanddoesnotmakejudgementson thegoodsenseofadocument. councilmemberJohnsonstatedtheCityAttorney'sOfficeshould ensurethattheContractdrafted:1)reflectswhatCouncil discussedand,2)isanoffertopurchasethesystemfor$16 Millioninfiveyears,ifforanyreason.theCitychoosesnotto continueinthebusiness. MayorAppezzatostatedthedocumentshouldprotecttheCity's financialliability. PublicutilitiesBoardChairLanceRussumstatedthepurchaseprice shouldbe"notlessthan$16Million". MayorAppezzatostatedtheBureaushouldreviewthedraftdocument, aswellasanyoneelse. councilmemberJohnsonstatedsaidreviewcouldbeaddedtothe condition(s). MayorAppezzatostatedBOEshouldalsohaveanopportunityto provideinput. MayorAppezzatocommentedtheMotion[onthefloor]istogo forward,withoptions .t.o negotiatewithAT&Tandreviewthe SIGCORPdocumentastowhethertheCityisfinanciallyheld harmlessatleast$2-to$4Million;statedthereisanopportunity tostopifthereisdisagreement,orsomethinghappenslater; theCity'sabilitytocompeteisofconcern;andthathewill "Abstain"[ontheMotion]untiltheDocumentisreviewed,and possibly[thereis]apackagewithAT&T. councilmemberJohnsonsecondedthemotion. Underdiscussion,CouncilmemberDaysogstatedtherearetwo criticalpoints:1)policyissues,and2)businessissues;froma policyissue,thequestionofaccessshouldnotbeunderestimated, particularlyforaCitydeclaringitselftobeSiliconIsland; accessshouldbeevaluatedonmeans,notaspirations,andshouldbe abusinessdecision;thereisthecapacitytoprovidebusinesses RegularMeeting AlamedaCityCouncil August17,1999 withfiberopticsinaprudentfashion;thatheissupportiveof themove;thefactthatquestionshavebeenraisedonhowto concretelyfollowthroughonSIGCORP'sofferandonpulling resourcestoreducecost,demonstratesprudence;nothingisrisk free;andclearlythis[thematterbeforeCouncil]isjustthe firstportionofmanymoresteps. MayorAppezzatostatedthesearecriticaldecisionsandcitizens shouldbearwithCouncilastheyworkthroughthedifficulties;it [matter]isnottakenlightly. councilmemberKerrstatedthatshewillvote"no"ontheMotion, however,shewouldbedelightedifstaffcamebackwithaniron- cladrisk-freeagreement. MayorAppezzatostatedthathewillnotbevoting"no"[onthe Motion];thereisalwaysariskineverythingyoudo,butriskmust becalculated;thathewilllookforthecalculatedriskifit comesback;ifthemajorityoftheCouncilgoesforwardand supportsproposal,andhejoinslater,fine;but,ifhedoesnot andthemajoritywantstogoforward,theywillhavehissupport; helooksforwardtothenext30days,orwhateverittakestolook atthedocument. Onthecallforthequestion,themotioncarriedbythefollowing voicevote:Ayes:CouncilmembersDaysog,DewittandJohnson-3. Noes:CouncilmemberKerr-1.Abstentions:MayorAppezzato-1. ORALCOMMUNICATIONS.NON-AGENDA (99-422)BillSmith,Alameda,commentedonopportunitiesinthe cityofAlameda. COUNCILCOMMUNICATIONS (99-423)ConsiderationofMayor'snominationforappointmentto theRecreationCommission. MayorAppezzatonominatedJayL.IngramandChristineJohnsonfor appointmenttotheRecreationCommission. (99-424)ConsiderationofMayor'snominationforappointmentto theSocialServiceHumanRelationsBoard. MayorAppezzatoheldmatterover. (99-425)ConsiderationsofMayor'sappointmentstothePublic TransitCommittee. MayorAppezzatoappointedCarlaM.Moreno,RichardP.Neveln,Eric B.SchatmeierandAllanD.Shoreasthecitizens-At-Largeonthe RegularNeeting AlamedaCityCouncil August17,1999 PublicTransitcommittee. (99-426)MayorAppezzatostatedtherewasanewspaperarticle regardingAlamedaCountybeingamongtheslowesttoanswer911 calls;theremighthavebeenmisunderstandingthearticlewasabout thecityofAlameda;readastatementfromtheChiefofPolice:"In achancethattheremaybesomeconfusionaboutAlamedaCountyand thecityofAlamedapublicsafetyansweringsystem,Iwouldliketo informyouthattheCity'ssystemratesabovethestateaveragein everycategory,e.g.theourCommunicationsCenteranswers911 callsin0-5secondsin72.46%ofthecallsvs.72%fortheaverage ofallothersinthestate;additionalourCenteranswers96%of 911callsinlessthan11secondsvs.thestateaverageof95%";if thereisanyconfusion,thearticledidnotapplytothecityof Alameda;problemsareintheCountysystem. (99-427)CouncilmemberDewittannouncedthatthePublicTransit CommitteewillhaveitsfirstmeetingonWednesday,September1, 1999at7:30p.m.followingtheAlamedaReuseandRedevelopment AuthorityMeeting. (99-428)ViceMayorDaysogstatedtheCityofAlamedahasalotof programsemergingtodealwiththequestionofhousing affordability,e.g.first-timehomeownershipprograms, establishmentofnon-profithousingorganization(s);thereare differentwaystodealwithissuesregardingAlamedaPoint; requestedthecityManager'sOffice,inconjunctionwithstaff,to thinkofwaystobringalloftheelementstogether,e.g..work forceandaffordablehousing;differentideasshouldbebrought togethertoprovideacoherentstrategytodealwithissuesraised byRenewedHopeandothers. ADJOURNMENT TherebeingnofurtherbusinessbeforethecityCouncil,Mayor AppezzatoadjournedtheRegularMeetingat11:18p.m. Respectfullysubmitted, D ne B.tJ;e1fl.~ cityClerk TheagendaforthismeetingwaspostedinaccordancewiththeBrown Act. RegularMeeting AlamedaCityCouncil August17,1999