2001-08-21 Regular CC MinutesMINUTES OF THE REGULAR CITY COUNCIL MEETING
TUESDAY - - AUGUST 21, 2001 - - 7:30 P.M.
Mayor Appezzato convened the Regular City Council Meeting at 8:22
p.m.
ROLL CALL - Present: Councilmembers Daysog, DeWitt, Johnson,
Kerr and Mayor Appezzato - 5.
Absent: None.
AGENDA CHANGES
(01 -433) The Resolution Amending Resolution 11268 and Establishing
a Policy for Installation of All Aboveground Equipment Associated
with Cable Communications Services [paragraph no. 01 -443] was held
over.
PROCLAMATIONS, SPECIAL ORDERS OF THE DAY AND ANNOUNCEMENTS
(01 -434) Presentation of Certificates of Service to the former
Members of Various Boards and Commissions: Dominador Dicolen, Civil
Service Board; A. Baird Heffron, Housing and Building Code Hearing
and Appeals Board; Lou Baca, Housing Commission; Susan Correa,
Library Board; Nancy Lewis, Library Board; Paul Fossum, Planning
Board; Judith Guerra, Social Service Human Relations Board; Stephen
Winton- Henry, Social Service Human Relations Board; and Ann
Zukoski, Social Service Human Relations Board.
Mayor Appezzato presented Service Certificates to Dominador
Dicolen, Lou Baca and Nancy Lewis; requested staff to forward
Certificates to former Board and Commission Members not able to
attend the City Council Meeting.
(01 -435) Proclamation declaring September 16, 2001 as Bungalow Day
in the City of Alameda.
Mayor Appezzato read the proclamation and presented it to Robbie
Dileo, Chair of the Legacy Home Tour.
Ms. Dileo stated the Bungalow Tour will be a joint fund raiser with
the Alameda Museum; presented the Mayor and Councilmembers with
invitations.
(01 -436) Robert Wood, Alamedans Rebuilding the Tower, presented
the Mayor and Councilmember with invitations to the Alamedans
Rebuilding The Tower (ARTT) annual fund raiser; announced the event
would be held Sunday, September 9, from 4:00 to 7:00 p.m., at the
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August 21, 2001
Harrison Recreation Center in Lincoln Park; encouraged everyone to
attend.
(01 -437) Councilmember Kerr announced the Jackson Park Bandstand
Dedication would be Sunday, September 9, at 11:30 a.m.; encouraged
everyone to attend.
CONSENT CALENDAR
Mayor Appezzato announced that the recommendation to approve
Request For Proposals (RFP) for Solid Waste, Recyclable and Organic
Materials, and Solid Waste Disposal Services [paragraph no. 01 -441]
was removed from the Consent Calendar for discussion and the
Resolution Amending Resolution 11268 and Establishing a Policy for
Installation of All Aboveground Equipment Associated with Cable
Communications Services [paragraph no. 01 -443] was held over.
Councilmember Daysog moved approval of the remainder of the Consent
Calendar.
Councilmember Johnson seconded the motion, which carried by
unanimous voice vote - 5. [Items so enacted or adopted are
indicated by an asterisk preceding the paragraph number]
(01 -438) Minutes of the Special City Council Meeting (Closed
Session), the Special Joint City Council and Alameda Reuse and
Redevelopment Authority Meeting (Closed Session) and the Regular
City Council Meeting held on August 7, 2001. Approved.
(01 -439) Recommendation to approve Alameda Civic Light Opera
proposed repayment plan. Accepted.
(01 -440) Recommendation to authorize additional staff to support
the Urban Runoff Clean Water Program. Accepted.
(01 -441) Recommendation to approve Request For Proposals (RFP) for
Solid Waste, Recyclable and Organic Materials, and Solid Waste
Disposal Services and authorize solicitation of Proposals.
David Krueger, Waste Management Employee and Alameda resident,
stated the draft RFP contains good ideas for service improvements,
such as: composting food waste and expanded recycling; the City
does not need to go through the RFP process to receive service
improvements; service improvements can be achieved by negotiating
with Waste Management; in 1993, the City of San Jose replaced its
service provider and the transition period was a complete disaster;
the low bidder was not prepared to move into the district;
residents did not receive services for two to three weeks; urged
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Council to avoid similar risks and negotiate with Waste Management,
rather than going through the RFP process.
Dave Gilbert, Waste Management, urged Council to retain Waste
Management as the City of Alameda's disposal service provider.
Paul Beebout, Waste Management, stated approximately 42 Waste
Management employees live in Alameda and 32 retired Waste
Management employees reside in Alameda; employees enjoy serving
Alameda residents and businesses; specific areas could be
accommodated, rather than using a RFP; Waste Management is open to
creative ideas and service additions.
Barbara Frierson, Alameda, acknowledged City staff and consultants
undertaking the huge effort involved in preparing the RFP; stated
the brief Council report does not provide enough detailed
information, e.g., table describing how solid waste and recycling
in the RFP differ from existing services; that she has financial
questions; inquired how much of the new service is covered by
franchise fees; will only garbage be covered by franchise fees;
financial analysis did not indicate income the City will receive as
a result of franchise fees; the $10 Million contract cost was
included, but not the positive impact of the franchise; that she is
not clear how fees will be established and changed over time, e.g.
based on cost plus profit or CPI adjustments; questioned whether a
transfer facility is part of the RFP; further stated City
facilities will continue to receive "free" recycling service;
inquired whether street sweeping leaf pickup is included; whether
commercial recycling will remain open market or be restricted to
the franchisee; whether a ten -year franchise agreement meets the
requirements of the Alameda County Charter Amendment of 1991, to
allow the City to continue receiving Measure D funds; who will
administer the exemption process, which was a difficult and time -
consuming activity for City staff; what changes might be required
to the Municipal Code as a result of the items requested in the
RFP; how subsidizing rates for seniors works with Proposition 218
provisions; stated cost is a huge component of the evaluation
criteria; inquired whether a proposer could entirely fail the
qualifications and environmental criteria and still receive the
contract if it comes in at a lower cost.
Mayor Appezzato inquired whether staff took note of Ms. Frierson's
questions; stated the service provider is not being selected
tonight.
The Assistant City Manager, Operations responded staff will be
prepared to respond to said questions.
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Mayor Appezzato inquired whether there were hearings and
discussions with service providers prior to release of the RFP, to
which the Deputy Public Works Director responded there were three
public meetings with the different service operators.
John McCabe, Solid Waste Franchise Team Member and Alameda
resident, stated the RFP includes provisions for expanded business
recycling; in addition to having a guaranteed level of service from
the City's provider, businesses should have the opportunity to
select recycling providers; organics recycling could be increased;
expanded construction and demolition recycling is good; the RFP
includes provisions for public recycling containers downtown, at
bus stops and at Alameda Point; thanked staff for soliciting input;
inquired whether the RFP could be made available on the City of
Alameda's website.
Mayor Appezzato inquired whether the document [RFP] could be on the
City's website.
The Deputy Public Works Director responded major text can be placed
on the website; however, appendices cannot be posted on the
website.
Mayor Appezzato requested the website include a list of locations
where the full document is available, e.g., City Hall and
libraries.
Michael Torrey, Alameda, stated Waste Management staff pulls large
bins out of stalls to empty garbage and does not put bins back;
when bins are left in the driveway, cars cannot pass through; last
week, a para- transit bus driver was not able to get through due to
bins.
Mayor Appezzato encouraged Mr. Torrey to speak to Waste Management
employees after the meeting.
Robert Field, Park Webster Homeowners' Association, stated there
are 242 property owners at Park Webster; large scale service should
be addressed carefully; there are on -going missed pickups; it took
seven months to have broken equipment replaced; Waste Management
conducted an audit and increased costs by 25 -300, however, the
auditor miscounted the number of bins; automobiles have been
damaged as a result of equipment being left out; the use of large
trucks damages infrastructure.
Mayor Appezzato encouraged Mr. Field to speak to Waste Management
representatives present tonight.
Mayor Appezzato stated that he opposes the lobbying restriction; as
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August 21, 2001
an elected official, he will be accessible to anyone who wants to
talk to him; and inquired whether staff would provide a
recommendation on which provider should be selected.
The Assistant City Manager, Operations, responded in the
affirmative; stated the consultant will make a recommendation;
there will be a public hearing; proposals will be rated; the matter
will return to Council in January.
Mayor Appezzato inquired whether Councilmembers were interested in
handling the matter similar to Alameda Point Master Developer
selection; further stated the recycling RFP process became
emotional; hopefully, the same incivility will not occur; the RFP
process is a time - honored tradition.
Councilmember Johnson moved approval of the staff recommendation
[approval of the RFP and authorization to solicit Proposals] with
an amendment [to the RFP] to remove lobbying restrictions.
Councilmember Johnson stated Councilmembers and the public were
pleased with the Master Developer selection process, which included
analysis without an actual recommendation; that she is open to said
suggestion; Ms. Frierson raised some very good points; analysis
should include issues raised by Ms. Frierson.
Mayor Appezzato noted there is benefit to staff presenting a
recommendation.
Councilmember Kerr stated that she supports removal of the gag
order [lobbying restrictions]; the public should have access to
elected officials.
Mayor Appezzato stated the motion includes removal of the gag order
and does not include keeping staff from presenting a recommendation
[for award of Contract].
Councilmember Daysog stated people seldom complain about waste
removal and recycling services; inquired whether the scoring system
could include points for customer satisfaction; stated a low bid
might be submitted by a provider with questionable service.
Vice Mayor DeWitt stated that he has heard concerns from residents
about garbage no longer being picked up from backyards; residents
object to bringing garbage to the curb because it smells and is
unsightly; there are good reasons for having lobbying restrictions;
the period prior to submittal of proposals is a critical time when
Councilmembers and staff should not be in discussions with
potential providers; after RFPs are submitted, Council can discuss
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the matter with potential providers.
Councilmember Daysog inquired whether the RFP included points for
good service.
The Deputy Public Works Director responded under Proposer's
Qualifications, jurisdiction satisfaction is included within the 20
points; references will be checked and customer service will be
audited regardless of current jurisdiction.
Councilmember Daysog inquired whether outside jurisdictions would
be weighted as heavily as Alameda, to which the Deputy Public Works
Director responded in the affirmative.
Mayor Appezzato stated most people bring garbage cans to the curb
because they do not want workers going into backyards; that he
would like to receive the benefit of reduced price for bringing
garbage to the curb; there will be exceptions for seniors and
disabled.
Councilmember Kerr stated backyard collection can be provided upon
request; there are exceptions for seniors and disabled; inquired
whether the exception would apply to a senior responsible for
taking garbage to the curb for a four -plex.
The Deputy Public Works Director responded said person would
qualify for the exemption.
Councilmember Kerr further inquired whether the exemption would
apply to all four units, to which the Deputy Public Works responded
in the affirmative.
Mayor Appezzato stated each resident should be required to bring
their garbage to the curb; said requirement could be included in
the lease.
Councilmember Kerr stated if relying on tenants, often garbage is
not brought to the curb; landlords are responsible for ensuring
garbage is picked up.
Mayor Appezzato stated that he is not sure owners of four - plexes
should receive an exemption; the City should wait until the matter
comes forward.
Councilmember Daysog stated 50 points will be awarded for cost;
inquired whether there is a way to ensure proposers will not
underbid and receive 50 points.
The Deputy Public Works Director responded there is a pass /fail
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August 21, 2001
criteria; proposers not meeting minimum requirements will not be
scored; further stated reasonableness of cost will be rated.
Mayor Appezzato stated 540 of the citizens in Alameda are renters;
if rental property owners are provided exemptions, costs will be
borne by other residents.
Councilmember Kerr noted the exemption would only be for up to four
units; not all rental property is owned by seniors.
Mayor Appezzato requested staff to provide a report on the ratio of
rental units owned by seniors.
Councilmember Johnson stated the economics should be reviewed;
allowing exemptions causes some Alameda residents to subsidize
other residents; exemptions should be considered for disabled
homeowners, however, there could be different consideration for
rental property, which generates income; large areas of Alameda
have been bringing garbage to the curb for years; people already
bring recycling to the curb; bringing cans to the curb allows
trucks to get in and out faster, which benefits everyone.
Councilmember Johnson inquired whether people will be provided with
wheeled garbage cans, to which the Deputy Public Works Director
responded in the affirmative.
Councilmember Johnson inquired whether residents who do not qualify
for the exemption could pay an extra fee [to have backyard pickup].
The Deputy Public Works Director responded in the affirmative;
stated for an extra fee, backyard service can be provided.
In response to Mayor Appezzato's inquiry regarding the amount of
the fee, the Deputy Public Works Director stated it depends upon
the proposals, however, staff approximates it will be a couple of
dollars.
The Deputy Public Works Director inquired whether Council would
agree to not lift lobbying restrictions on staff and the selection
committee; stated the restriction only applies to specifics of the
proposal and was included to ensure consistent information is
provided regarding the interpretation of the proposal; the City's
consultant is the single point source responsible for taking
questions, interpreting the proposal and providing written
information back to each proposer; the restriction is not meant to
prevent Councilmembers from communicating with anyone, rather it is
to protect the process and ensure proposers are not provided
differing interpretations.
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Mayor Appezzato stated restrictions should be lifted for elected
officials, not staff.
Councilmember Johnson agreed lobbying restrictions should remain in
place for staff and the selection committee.
The Deputy Public Works Director stated timing is a key issue; the
contract is included in the proposal; proposers will essentially be
signing a contract which must be submitted with only minor
exceptions; there will not be time to negotiate; the intent is to
bring a recommendation, with a contract signed by the proposer, to
Council for approval.
Mayor Appezzato agreed to proceed in said manner, as long as the
rest of the Council concurred.
Councilmember Johnson inquired whether Council would have an option
to select a provider other than the one recommended by staff.
The Deputy Public Works Director responded staff will recommend the
top -rated proposer based on the evaluation criteria; Council has
the option to reject the staff recommendation.
Councilmember Johnson inquired whether the recommendation could be
written to allow Council to reject it and vote for another provider
at the same meeting.
The City Attorney responded in the affirmative; stated Brown Act
requirements should not be confused with Council's discretion; the
Brown Act merely requires public notice be given; public notice
would indicate a vendor will be selected; staff's recommendation,
in the report, will be for a specific entity; Council will not be
prevented from exercising discretion, as provided by the Brown Act,
to reject the recommendation and select whomever desired.
Mayor Appezzato stated Council is going forward except with lifting
the gag order for elected officials.
Councilmember Daysog seconded the motion, which carried by
unanimous voice vote - 5.
(01 -442) Recommendation to approve the Purchase of One (1) AKZO
Nobel TP -4 Pothole Patching Unit in Accordance with Section 2 -61.7
of the Alameda Municipal Code. Accepted.
(01 -443) Adoption of Resolution Amending Resolution 11268 and
Establishing a Policy for Installation of All Aboveground Equipment
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August 21, 2001
Associated with Cable Communications Services. Held over.
(01 -444) Resolution No. 13384, "Authorizing the Filing of an
Application for Federal Surface Transportation Funds through the
Metropolitan Transportation Commission's Transportation for Livable
Communities Program for the Webster Renaissance Project and
Committing the Necessary Local Match for the Project and Stating
the Assurance of the City of Alameda to Complete the Project."
Adopted.
(01 -445) Ratified bills in the amount of $7,782,950.09
REGULAR AGENDA ITEMS
(01 -446) Resolution No. 13385, "Appointing Floyd Hibbits as a
Member of the Social Service Human Relations Board." Adopted.
Vice Mayor DeWitt moved adoption of the Resolution.
Councilmember Johnson seconded the motion, which carried by
unanimous voice vote - 5.
The Acting City Clerk administered the Oath of Office and presented
Mr. Hibbits with a Certificate of Appointment.
(01 -447) Resolution No. 13386, "Appointing Patricia A. Simmons as
a Member of the Social Service Human Relations Board." Adopted.
Councilmember Daysog moved adoption of the Resolution.
Councilmember Johnson seconded the motion, which carried by
unanimous voice vote - 5.
The Acting City Clerk administered the Oath of Office and presented
Ms. Simmons with a Certificate of Appointment.
(01 -448) Public Hearing to consider an Appeal of a Planning Board
decision approving Use Permit, UP 01 -13, to allow the use of an
outdoor dining area, and to operate a restaurant from 7:00 a.m. to
2:00 a.m. The proposed use is located in the Historic Croll's
Building located at 1400 Webster Street, within the C -C, Community
Commercial Zoning District. Appellant: Jason Lucey.
(01 -448A) Resolution No. 13387, "Denying the Appeal of Jason Lucey
and Upholding the Planning Board's Approval of Use Permit, UP 01-
13, for an Outdoor Dining Area, and to Allow a Business to Operate
Between the Hours of 10:00 p.m. and 7:00 a.m." Adopted.
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Mayor Appezzato opened the Public Hearing.
Proponents:
Jason Lucey, Appellant;
Tony Lucey, Alameda; and
Robert Field, Park Webster Homeowners' Association.
Opponents:
Bob Brown, Alameda;
James York, Alameda;
John Cueller, Alameda;
Ann Channin, Alameda;
Sarah Sykes, West Alameda Business Association (WABA);
Mark Neiman, Alameda;
Michelle Fredrick, WABA;
Georgia Madden, WABA;
Erma Garcia- Sinclare, Alameda;
David Hart, Alameda;
Peter Saw;
Mytien Nguyen;
Dr. Leslie Hilger, Alameda; and
Puttaswamy Kumar, Applicant.
There being no further speakers, Mayor Appezzato closed the public
portion of the Hearing.
Vice Mayor DeWitt inquired whether Mr. Kumar's request for a hard
liquor license violates the Municipal Code.
The City Attorney responded having two bars would violate the
Municipal Code, however, the Planning Department has processed this
as a restaurant, not a bar; if the Planning Board and staff had
interpreted the use to be a bar, it would not have been allowed.
Councilmember Kerr stated bars and restaurants are defined
differently in the Development Code; recently, there have been
hassles about the definition.
Councilmember Johnson stated that she spoke with the Lucey's, who
are interpreting the use to be a bar; as long as the City does not
consider the use to be a bar, the 1,000 foot rule does not apply;
people refer to Mr. Kumar as a five -star chef; that she is
convinced, it will be a restaurant, not a bar; having a bar, in
conjunction with a restaurant, is not unusual; many restaurants in
town have bars; hopefully, testimony put the Lucey's concerns at
ease; Planning Board conditions are strong enough to ensure it will
be a restaurant.
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Councilmember Johnson moved adoption of Resolution denying the
Appeal.
Councilmember Daysog seconded the motion.
Under discussion, Councilmember Kerr stated that she was concerned
about noise; Restriction No. 8 requires any noise emanating from
the use shall not be clearly audible across the street or at the
property line of any residentially zoned area within the proximity
of the restaurant; the City should ensure the restriction is
followed.
Vice Mayor DeWitt stated the Planning Board set up thorough
restrictions which should address concerns.
Mayor Appezzato stated the site is in a business district; the
Planning Board voted unanimously to approve the application; that
he will support the Planning Board.
On the call for the question, the motion carried by unanimous voice
vote - 5.
Mayor Appezzato called a recess at 10:32 p.m. and reconvened the
Regular Meeting at 10:41 p.m.
(01 -449) Introduction of Ordinance Approving and Authorizing
Execution of Lease Agreement Between Grand Edibles, Inc., as
Lessee, and the City of Alameda, as Lessor, for the Lease of Real
Property at 300 Island Drive. Introduced.
John Abrate, Alameda, stated the Bay Fairway Hall can be turned
into a beautiful building and venue to hold events in the City;
Grand Edibles owner, Mr. Krauland, will turn the hall into the
perfect gateway for the Harbor Bay /Bay Farm Island area; citizens,
corporations and non - profits will be able to hold events in
Alameda; urged Council to allow Grand Edibles to be the new tenants
at Bay Fairway Hall.
The City's Consultant, Dick Rudloff, stated the existing lease
terminated in March, 1999; the facility has been operated on a
month -to -month basis; RFQ's were sent to every business in the City
with a catering or restaurant business license; the City received
six proposals; staff entered negotiations with the top three
proposers regarding improvements and revenue; Harbor View
Restaurant withdrew its proposal; Grand Edibles was selected in
May; the City completed negotiations and has a signed lease
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August 21, 2001
outlining terms and conditions.
Mayor Appezzato stated both Applicants submitted plans to use the
outdoor patio area; inquired whether the tent must go through the
Planning Department design review process.
Consultant Rudloff responded only the lease is being considered;
language could be added; nothing in the lease indicates approval of
tent; Grand Edible's expansion of service requires addition to the
structure, e.g. tent or lattice work.
Mayor Appezzato requested confirmation that said improvements will
go through a review process.
The City Attorney responded Council is wearing its landlord hat
tonight; the Planning Board will wear the regulatory hat, which
will approve or deny various entitlements, including tents or Use
Permits.
Mayor Appezzato inquired whether the second and third extension are
at the sole discretion of the tenant.
Consultant Rudloff responded in the affirmative; stated if the
tenant has not met sales projections after five years, the City has
the right to terminate the lease; if the tenant has met sales
projections at the end of ten years, the tenant has the right to
renew the lease.
Mayor Appezzato inquired why the City does not have the right to
terminate the lease at the end of ten or fifteen years.
Consultant Rudloff responded the tenant is making an investment and
would like a long -term commitment from the City.
The City Attorney stated Paragraph 27 of the lease requires no
defaults continuing under the lease at the time of exercising the
commencement of the applicable extension term; there are a number
of other conditions outlining the tenant's option to extend the
lease as long as there is no default.
Councilmember Johnson inquired whether said requirement applied to
all extensions, to which the City Attorney responded in the
affirmative.
Mayor Appezzato stated the City can use the facility for one event
per month; inquired whether a non - profit could use the facility if
the City does not use it during a month.
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Consultant Rudloff responded in the affirmative; stated the lessee
could confirm his interpretation of the clause.
The Assistant City Manager stated if the City chooses not to use
the facility once during a month, a non - profit could use it.
Mayor Appezzato noted the event should not be at the expense of the
tenant.
Councilmember Kerr stated that she is concerned about the lease
being renewable only at the tenant's option, assuming there is no
default; leases running for 50 years have turned out to be
sweetheart leases; the City is not collecting fair market rent and
cannot terminate leases because tenants have the right to continue
the lease as long as they meet requirements; as landlords, the City
should not create similar situations; the City should be able to
renegotiate the lease from time to time; the City cannot terminate
leases on tideland trust due to conditions in the lease.
Consultant Rudloff stated tideland leases from the 1980's did not
anticipate rent increases over the years; the proposed lease has a
5% increase in fixed rent each year and a clause which allows the
City to participate in the tenant's revenue; as the tenant builds
revenue, the City will receive a portion of the revenue; the City
should stay with inflation and the increase in business.
Councilmember Kerr stated the lease does not protect the City from
a higher and better use of the property; the only guaranteed rent
is $36,000 per year from Grand Edibles and $50,000 per year from
McGee's; the other payment assumes revenue will increase; the Golf
Course is being redesigned and the Club House might relocate to the
Bay Fairway Hall area; the City should not tie itself into a non -
City use of land forever.
Consultant Rudloff stated the lease has a buy out provision; the
City and the tenant each present a buy out amount and if an
agreement cannot be reached, a mediator would choose one of the two
amounts.
Councilmember Kerr stated the City should have periodic
opportunities to terminate the lease for good cause without having
to buy out the lease; the current lease nets the City $30,000 per
year; Grand Edibles is guaranteeing an additional $6,000 per year;
McGee's guarantees a minimum of $50,000 per year; the amount of
money which the two businesses will put into the facility differs:
Grand Edibles proposal is for $221,000 in improvements and McGee's
would spend $1.4 Million; however, McGee's proposals requests a
larger commitment from the City; an escape clause should be
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included in the lease which allows the City to terminate every ten
years.
Councilmember Johnson inquired whether the [revenue] projections
provided by the proposed tenants were evaluated by staff as
reasonable estimates based on business plans, to which Consultant
Rudloff responded in the affirmative.
Councilmember Johnson stated if the City wants a quality facility,
the tenant will have to put in money up- front; the tenant cannot
spend money up- front, if the City could step in and terminate the
lease without allowing the tenant to earn a return on the
investment; a reasonable buy out provision is the best way to
proceed.
Mayor Appezzato inquired whether the current lease fixed rent was
$1,000 per month, to which Consultant Rudloff responded the current
tenant did not have a minimum rent.
In response to Mayor Appezzato's inquiry regarding the current
tenant paying a percent of gross or net, Mr. Rudloff stated the
current tenant paid a percent of gross; for the last five years,
the average was between $25,000 and $30,000.
Frank Krauland, Grand Edibles, Inc., stated that he opened Grand
Catering and the Grand Gourmet Restaurant in 1981; the Bay Fairway
Hall could be a premier event facility in Alameda; with Council's
blessing, he will have the opportunity to operate the facility.
The City Attorney stated paragraph 30 of the lease discusses
landlord events on the premises; inquired whether the right of one
City event per month could be assigned to a non - profit group.
Mr. Krauland responded in the affirmative.
Mayor Appezzato stated said event should not cost the tenant.
Mr. Krauland stated that he would be willing to donate it [event
cost].
The City Attorney stated the existing provision is that the tenant
pays food and beverage and donates the rest of the cost.
Councilmember Johnson stated the matter can remain open; Mr.
Krauland should not have to commit at this point.
Jeff Goodman, McGee's Bar and Grill, stated there are two ways to
look at the Bay Fairway Hall: 1) special events and 2) a
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restaurant; the lease [with Grand Edibles] is a sweetheart lease;
the City will receive $154,696 based on $3 Million in projected
revenue; $3 Million in revenue for a catering business is far
fetched; catering businesses are not open every day of the week,
restaurants are; catering events are only for people invited, not
the average citizen; minimum rent is only $36,000; inquired who
will be responsible for auditing the books; how often the books
will be audited; whether the City has experienced problems with
under revenue reporting in the past; whether revenues from the Bay
Fairway Hall and the potential tenant's current business [Grand
Catering] could be co- mingled; how the City will differentiate
where revenues are derived; whether the potential tenant could sell
product to the new business at a lower price to decrease revenues;
Council should question the potential tenant's projections of
$63,000 a week in sales every week of the year, with an average as
high as $43.00 per person; catering banquets do not happen
everyday; the City will receive 20 only and the industry standard
is 50; Council should determine whether a banquet facility or
restaurant would better serve the community.
Mayor Appezzato stated both businesses [Grand Edibles and McGee's]
are good quality.
Councilmember Johnson stated it is a tough decision between two
excellent, long -term successful food businesses in Alameda; Council
has to decide whether a restaurant or catering business is the best
use and what will generate the most revenue for the City; the
highest revenue and lowest up -front investment from the City will
be the catering facility, not the restaurant; Mr. Rudloff has
confidence in the projections provided [by Grand Edibles].
Councilmember Johnson moved approval of awarding the lease to Grand
Edibles [introduction of the Ordinance].
Councilmember Daysog seconded the motion.
Under discussion, Councilmember Kerr stated business tenants are
required to make substantial investments in other people's
property, e.g. Southshore Shopping Center has fixed term leases,
which are renewable and can be renegotiated, and tenants are
required to make improvements to building interiors; the City
should not enter into a lease which cannot be renegotiated at
reasonable periods of time; leases go with the land; the City does
not know whether Grand Edibles will hold the lease after a period
of time; inquired whether the lease included provisions for a
change of tenant.
The City Attorney stated Section 4 on assignment and subleasing,
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Alameda City Council
August 21, 2001
which is three pages long, indicates the facility shall not be
occupied by anyone other than the tenant without the prior written
consent of the landlord in each instance which shall not be
unreasonably withheld or delayed; the lease outlines criteria for
landlord consent, e.g. financial strength, business reputation, use
percentage, rents and managerial operation skills.
Councilmember Kerr stated the tenant could sell the lease to a new
perspective tenant with a good set of books.
The City Attorney stated the tenant has the option of coming to the
City Council to request a transfer, which shall not be unreasonably
withheld or delayed; there are a number of specific criteria.
Councilmember Kerr stated that she is doubtful about the projected
income; the Alameda Civic Light Opera provided projections, which
were not met; anyone might not be able meet projections.
Councilmember Johnson stated if the tenant does not meet revenue
projections, the City can terminate the lease; there are provisions
for increases in the fixed rental amount; if the tenant does not
comply with provisions of the lease, the City can terminate; both
operators have experience in the field, which is a reason to have
confidence in the figures.
Mayor Appezzato stated there is a five -year termination clause if
projections are not met; both firms are reputable and have been in
business in the City for quite a while; that he would be
comfortable with either proposer.
On the call for the question, the motion carried by the following
voice vote: Ayes: Councilmembers Daysog, DeWitt, Johnson and Mayor
Appezzato - 4. Noes: Councilmember Kerr - 1.
ORAL COMMUNICATIONS, NON- AGENDA
None.
COUNCIL COMMUNICATIONS
(01 -450) Consideration of Mayor's nominations (3) for appointment
to the Economic Development Commission.
Mayor Appezzato nominated John L. Abrate and Pattianne N. Parker
for reappointment to the two Community -at -large Seats and Robert F.
Kelly for appointment to the Marine /Waterfront Seat on the Economic
Development Commission.
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Alameda City Council
August 21, 2001
(01 -451) Councilmember Daysog stated the Department of Housing and
Urban Development has funds available for housing search assistance
programs; the Housing Authority should review the matter; Sentinel
Fair Housing's Executive Director is interested in partnering with
the City; the program requires partnership with a non - profit which
provides housing counseling; only 15 entities will receive funds;
possibly a consortium could be formed with other Housing
Authorities; requested staff to review the matter and contact
Sentinel Fair Housing and other interested Housing Authorities in
Alameda County.
(01 -452) Mayor Appezzato stated that he heard compliments about
Public Works Supervisor Rick Paiva's attention to trees and
sidewalks; encouraged staff to keep up the good work.
(01 -453) Mayor Appezzato stated that he received a letter
complimenting Fire Station No. 4 Paramedic's response to a call on
July 7.
(01 -454) Mayor Appezzato noted the amount of energy used by staff
at City Hall during the first six months of 2001, was 200 lower
than the amount of energy used during the first six months of 2000.
(01 -455) Mayor Appezzato stated on Sunday [August 19], the San
Francisco Chronicle Newspaper Magazine included an article on
Alameda; recently, the City has received a lot of publicity.
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Alameda City Council
August 21, 2001
ADJOURNMENT
There being no further business, Mayor Appezzato adjourned the
Regular Meeting at 11:23 p.m.
Respectfully submitted,
Lara Weisiger
Acting City Clerk
The agenda for this meeting was posted in accordance with the Brown
Act.
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Alameda City Council
August 21, 2001