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1996-12-04 ARRA MinutesD u APPROVED MINUTES OF THE REGULAR MEETING OF THE ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY Wednesday, December 4, 1996 The meeting convened at 5 :50 p.m. with Chair Appezzato presiding. ROLL CALL Present: Chair Ralph Appezzato, Mayor, City of Alameda; Vice-Chair Sandre Swanson, District Director, 9th Congressional District; Wilma Chan, Alameda County Board of Supervisors, District 3; Jay Leonhardy, Alternate to Henry Chang, Jr., Councilmember, City of Oakland; Kathy Ornelas, Alternate to Ellen Corbett, Mayor, City of San Leandro; Tony Daysog, Alternate to "Lil"Americh, Councilmember, City of Alameda; Albert DeWitt, Councilmember, City of Alameda; Greg Alves, Alternate to Karin Lucas, Councilmember, City of Alameda; Lee Perez, Ex-officio, Base Reuse Advisory Group; Berresford Bingham, Ex-officio, Alameda Unified School District. Absent: None. Resigned: Charles Mannix, Councilmember, City of Alameda. At the request of Chair Appezzato, item 3-C was pulled to be dealt with at a future meeting . CONSENT CALENDAR Chair Appezzato stated that item 2-A would be pulled for discussion. 2-A. Report from the Executive Director Recommending ARRA Approval of the BRAG Recommendation to Proceed with a Master Large Parcel Lease. Alternate Alves asked if there are any significant fiscal impacts, as sometimes with a master lease agreement there is some financial obligation on the part of the lessee. Executive Director Miller replied that in talks with the Navy, the ARRA has always been very clear that ARRA cannot take over the financial responsibility for this huge parcel and the buildings must remain the Navy's responsibility until they are subleased to tenants. Dave Ryan of EFA West concurred. Member DeWitt moved that the ARRA proceed immediately to obtain the Master Large Parcel Lease. Member Chan seconded the motion and it passed unanimously by the following voice vote: Ayes: 8. Noes: 0. Abstain: 0. Absent: 0. ACTION ITEMS 3-B. BRAG and ARRA Staff Recommendation to Accept Pan Pacific University's Fundraising Report and Begin Developing a Memorandum of Understanding between the ARRA and Pan Pacific University. Dr. Peter Sun was invited to repeat the presentation he previously made to the BRAG, which resulted in their recommendation that the ARRA go forward in working with Pan _Prinlcd on recycled paper Pacific University (PPU). Executive Director Miller stated that the ARRA staff recommendation goes a step further in recommending the ARRA move immediately to consummate a Memorandum of Understanding (MOU) detailing long-term lease provisions and ultimate conveyance. Dr. Sun thanked the ARRA for its continuing support and reported that there are three major financial commitments to date. He then explained that the concept for the PPU system involves an umbrella protection of individual colleges such as an international law school, a school of international commerce and business, and a school of physical education and sports medicine, with each group developing their respective college. Dr. Sun likened the college to a shopping mall, with different schools aimed toward international studies, particularly the Pacific Rim. He then discussed the financial commitments received to date and pledges for the future to renovate buildings and establish an international law school and an international commerce and business school, and to renovate and develop a medical and dental clinic. Dr. Sun reported that while PPU has not reached the $7 million goal at this time, they will comfortably reach their goal to renovate the needed buildings and provide for security and maintenance. In answer to questions from the ARRA governing body, Dr. Sun and staff made the following additions and clarifications. Negotiations are ongoing with the Alameda County Medical Clinic regarding sharing the Base medical clinic, at least initially. From the outset, the backbone of PPU's plan has been business, including law, language, and international relations. The school of physical education is business-oriented in that sports develops business. The medical school will focus on alternative or Oriental medicine, which will some day be considered a "bonafide medical field" in this country. PPU will promote a happy marriage between Western and Oriental medicine. Pan Pacific University will handle all legal requirements, accreditation, the central library, etc. When a consortium develops a college under the university umbrella, that consortium is not entirely free. It is like Claremont University in Southern California; there are different colleges but the central university controls everything. PPU will strictly control all legal requirements, accreditation, and quality. The idea of the law school and the concept of the alternative medical school are not new, as PPU has been talking about them from the beginning. Regarding accreditation, PPU is making contact with the appropriate state organizations and will apply for accreditation as time goes on. A catalog is being developed and PPU is currently working on its undergraduate program in cooperation with the College of Alameda (COA). PPU has five students at the College of Alameda campus under the COA's supervision (this is the second year). PPU is currently negotiating with an existing law school to either branch out or relocate here. The consortium will have its own Administrative Board, not a Board of Trustees, because the consortium will not hold any property; it will be owned and operated by PPU. However, it has freedom in terms of operating its college because its Administrative Board will appoint faculties (with PPU approval of appointments), obtain tuition, etc. The consortium will pay fees to the University to support central services like the library. Funding: Regarding the Cewon letter, rather than giving $2 million at once, Cewon wanted scheduled payments. Regarding the Korean Fellowship Mission letter, Dr. Park is the Senior Vice _Printed on recycled paper I I . n c u President in charge of the medical center. The Korean Fellowship Mission is a nonprofit group that is certified as a 501(c)3 organization in the U.S. PPU will need its funding in May or June, not now because the Navy has now rescheduled its departure from certain buildings on April 30, 1997 to December 1996. Also, the original renovation project is building #17, the CBQ . It is now estimated that the CBQ may not be available until the end of September 1997 . In light of this , it is necessary for PPU to be flexible on the renovation project. The necessary funds will be available by early 1997. In response to a concern about PPU leasing the Officers ' Club, Chair Appezzato commented that despite an extensive effort to locate someone to operate the Officers' Club, the City has been unsuccessful. The Navy has offered approximately $1 million of bowling alley equipment, bar fixtures, etc . but the City does not have the money to acquire it to keep those facilities open. Dr. Sun is in a fall-back position. Executive Director Miller added that from the beginning there was an understanding between the City and Pan Pacific that whoever operated the Officers' Club would do so as a public facility . The City issued an RFP to find an operator for the facility under the condition it remain available to the public at a nominal cost. That RFP did not result in any bids. At that point, ARRA asked Pan Pacific to operate it under the noted conditions . Chair Appezzato requested the assessment and understanding of Lee Perez, BRAG Chair and Helen Sause , BRAG Vice -Chair. Mr. Perez stated that Dr. Sun has been extremely amenable and the PPU project is do-able and will not put the City in a liability position. While the facilities have history and character, they do not offer much in terms of proper design, utilization, etc. PPU has the BRAG ' s support. Ms. Sause added that Cewon flew three or four people here to meet with BRAG to discuss their commitment to education both here and in Korea where they have put large sums of money into a similar university there. There is a strong indication that this company is able to deliver but the BRAG is in the process of obtaining the facts and figures with Dr. Sun. Vice-Chair Swanson stated that in July, the ARRA made the decision to support the public conveyance request from Pan Pacific University and it is inappropriate to reopen the question as to whether or not they should be given a conveyance. The legitimate criteria today is to ask if Pan Pacific's objective ofraising $7 million is real. It is only fair to Pan Pacific for ARRA to stick to the July 5th request that they provide evidence of their progress toward the funding goal, adding that a three-month extension is reasonable. He further stated that other criteria must be developed through negotiation and a Memorandum of Understanding, and presented for evaluation. He stated his concern with the tone of some questions as the public relations issues are important to the fundraising effort of PPU. Member Chan stated she would feel more comfortable proceeding with the MOU with three things being addressed. First, obtain basic background information on the funders. Second, she expressed concern with the plans for accreditation because this is different from what was previously presented. Third, she requested ARRA obtain the projected student recruitment and enrollment figures . Chair Appezzato directed Staff and the BRAG to note all of those items because an MOU could not be signed without all of those concerns being addressed. He added that he would not approve any conveyance unless he is assured it has a chance of succeeding, that the City is held harmless, and that the benefit is going to be attained. _Print ed on recycl ed paper Regarding title transfer, Executive Director Miller stated that the ARRA is not proceeding with the public benefit conveyance because we concluded with the Department of Education that, while PPU was eligible, it is the community's preference to keep control of the property. Also, because it is Tidelands Trust property, it can only be leased. She further stated that it was made clear to Dr. Sun that if he needs to have title to the property, he needs to pursue it himself, as it is not the City's obligation to free it from the Trust. Alternate Daysog relayed concerns from Councilman Arnerich regarding PPU's funders, that PPU has not met its funding obligations, and that by requesting more sufficient documentation we are fulfilling our due diligence obligations. Member DeWitt moved to accept Pan Pacific University's fundraising report and begin developing an MOU between the ARRA and Pan Pacific University. Vice-Chair Swanson seconded the motion and it passed by the following vote: Ayes: 5. Noes: 2 -Daysog and Alves. Abstain: 1 -Chan. Absent: 0. Speakers: Ron Basarich, Alameda resident, spoke against Pan Pacific University, suggesting that these properties be opened to the brokerage community. Anne Mitchum, Emeryville resident, suggested involving nonprofit organizations from around the Bay Area, adding that Pan Pacific University was the only organization made aware of the property. Bill Smith, Emeryville businessman, spoke in support of Pan Pacific University, stating it has a viable concept, is putting its financing together, and is meeting City requirements. The vote was called for again and passed by the following vote: Ayes: 5. Noes: 2 -Daysog and Alves. Abstain: 1 -Chan. Absent: 0. 3-C. Proposed Amendment to the Membership Section of the Base Reuse Advisory Group (BRAG) Rules and Procedures and Recommendation on Appointment of Economic Development and Land Use Chairs. Pulled-to be addressed at a later meeting. 3-D. Resolution Amending Resolution No. 004, Conflict of Interest Code, to Include Members of the Base Reuse Advisory Group (BRAG). Assistant General Counsel McLaughlin stated that this is a "housekeeping" item to amend the conflict of interest code to include the BRAG as required by the FEPC rules. This is necessary because, over the year, the ARRA Governing Body generally accepts the BRAG's recommendations. Therefore, FEPC rules require them to be included in the ARRA conflict of interest code that will require the BRAG to disclose any financial interests . _Printed on recycled paper I : 'I n c u Alternate Leonhardy moved to amend Resolution No. 004 to include members of the Base Reuse Advisory Group (BRAG). Member DeWitt seconded the motion and it passed by the following voice vote: Ayes: 7. Noes: 0. Abstain: 0. Absent: 1 -Swanson [temporarily absent]. 3-E. Report from the Executive Director Recommending Endorsement of the Proposed Grant Proposal for the Alameda Reuse and Redevelopment Authority to the Office of Economic Adjustment for the 1997/98 Fiscal Year. Executive Director Miller stated that this is a request to endorse a formal request to OEA for next year 's funding, which is substantially less than ARRA has requested in the past. It is ARRA 's intention to apply for a $125,000 matching grant from the State of California with the rest of the match to consist of in-kind contributions from the City; no cash match will be required from the City if we get the State funds .. Alternate Leonhardy moved to endorse the proposed grant proposal for OEA for the 1997/98 fiscal year. Member Chan seconded the motion and it passed unanimously: Ayes: 8. Noes: 0. Abstain: 0. Absent: 0. ORAL REPORTS 4-F. Report from the BRAG Updating the ARRA on Current Activities. Chair Lee Perez reported that the BRAG is working on the master lease. The BRAG is concerned with the declining budget for the Navy for maintenance after they leave . While it is initially well funded, it drops dramatically within three years, so it is necessary that we start generating some money to pay for these services and maintenance. The BRAG is currently working on the Science Feasibility Study, the commissary proposal , the recreation and parks requests , and the limited use airfield. Regarding closure, with the Navy leaving in a few months, we need to decide what kind of sendoff celebration we are going to provide. Mr. Perez added that BRAG would like the City to have a ceremony that would honor the Base and the contribution it has provided to the community and the United States . He proposed the closing ceremony be a joint venture between civilians and the military, and hopes the County will assist us in presenting a memorable ceremony. 4-G. Report from the Executive Director Updating the ARRA. Executive Director Miller reported on the letter received from Secretary Garamendi indicating their decision that the wildlife refuge will be 525 acres. Staff is awaiting further guidance from the Navy on how to proceed. An all-day session with Navy Environmental people and Fish and Wildlife Service is scheduled December 5 to discuss how t o get the EIS back on track. ARRA staff and consultants will be investigating financial and fiscal analyses on alternative scenarios for configuring the Northwest Territory. The Fish and Wildlife Service indicates that we could develop 75 acres along with a golf course. The BRAG has worked with the Recreation and Park Department on an additional acreage request. Staff will do the fiscal analysis and report to ARRA before any decisions are made. A motion was made by Alternate Alves to appeal the Fish & Wildlife Service's recommendation of 525 acres and bring up the topic again with U.S. Senators. Chair Appezzato stated that he could not support the motion, knowing that it will be a fruitless waste of time and money. Executive Director Miller stated that the decision on the 525 acres is unchallengeable and _Print ed on recycl ed pa per 5 the best decision to be made now is what to do with the acreage left. The motion failed for lack of a second. Executive Director Miller reported that approximately 35 acres of the area that Fish & Wildlife is taking for the refuge overlaps into the land that BCDC has claimed for Port Priority Designation. Fish and Wildlife has agreed that this is an incompatible use and they have committed to be fully engaged in discussions with BCDC on this issue. Executive Director Miller reported that the Developer's Panel resulted in a lot of interesting feedback. Videotapes of the public presentation will be available for checkout at the ARRA offices and TCI cablevision taped the public presentation and will be running it on public television several times. In the next few weeks, a summary report of the findings prepared by Bay Area Economics will be available . The EBCRC has obtained funding for the Feasibility Study for Port Priority Designation, the RFP has been let, and two bid proposals have been received. The interviews will be held on December 16 and a selection will be made so that by the end of January or mid-February, the results of the study can be taken back to BCDC . BCDC has asserted that we should be looking at other issues and Will Travis will be invited to the January meeting to discuss them. Public Trust Appraisal: the bids are all in excess of the amount that we have to spend for the appraisals so we may have to send out another RFP in order to find an appraisal firm. In January, Staff will be bringing ARRA the issue of closing the Posey/ Webster tubes for seismic retrofits. This item will go to the Alameda City Council on December 17. Caltrans is proposing to close one tube and run two-way traffic through the other tube. City staff will be proposing night closures instead. Please note that due to the January 1 New Year's holiday falling on the regular ARRA meeting date, the meeting has been moved to January 6. In closing, Ms. Miller introduced Norma Bishop, NAS Alameda Base Transition Coordinator. BTC Bishop stated that the EF A West environmental staff has spent a great deal of time and effort revising the Base cleanup plan, which is instrumental to the long-term remediation and cleanup of the Base and its subsequent redevelopment. It discloses the condition of the property, characterizes the IR sites, talks about proposed remediation, and provides general criteria for how that is to happen. It also contains some very specific schedules that are important to redevelopment. The plan will be mailed to the members of the RAB on December 13; it will also be available in the NAS library, in the main library, and at the ARRA offices. Ms. Bishop encouraged members of the community to take an interest in it. From December 13 until January 30, there will be a public review and comment period, after which the Navy will rework the final report with all productive community input to ensure that it is workable and usable for the community. Speaker: Mr. Floyd Hibbitts, Hibbitts Consulting, questioned the fact that the RFP asked for a bid on appraisals without specifying the parcels to be appraised or their sizes. He asked what the budget is and how realistic the budget is to deal with the work proposed in the RFP. Executive Director Miller agreed that the RFP should have specified the budgeted amount available for the work. Consequently, all bids received were much higher than the $45,000 budget, which was based on a _Printed on recycled paper 6 .J "' n c u grant from the State of California. She further stated that ARRA may have to go back out to bid with a tighter RFP. ORAL COMMUNICATIONS, NON-AGENDA (PUBLIC COMMENT) Neil Patrick Sweeney, Alameda resident, stated that Barbara Boxer, who is on the Appropriations Committee, should be directly contacted regarding Alameda NAS. Chair Appezzato advised Mr. Sweeney that Senator Boxer has already toured the Base and received a comprehensive briefing. Mr. Sweeney requested that all ARRA and BRAG meetings be televised for community information and that additional transportation methods, including the addition of a Bullet Train in West Oakland, be pursued. COMMUNICATIONS FROM GOVERNING BODY Vice-Chair Swanson commented that Alameda can be justly proud of its open process and citizen participation in both the BRAG and the ARRA. The BRAG is very open to any citizen who wants to express an opinion, and the ARRA pays particular attention to the wishes of the BRAG and the community. Given limited resources, Staff has been able solicit lease opportunities and work through the bureaucracy. Alameda has actually been successful in changing precedent and federal regulations to speed up the leasing process, which will help other base conversion efforts. When the President came here in 1993, he committed $2 .5 million in funding; to date, OEA has given Alameda County more than $15 million for this planning process. Mr. Swanson stated that Congressman Dellums' office has appreciated being a part of this process and gives a lot of credit for success to date to the ARRA Governing Body and the BRAG. ADJOURNMENT The meeting was adjourned by Chair Appezzato at 8:14 p.m. Respectfully submitted, b~yt. ARRA Secretary _Printed on recycled paper 7