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2000-04-18 Regular CC MinutesMINUTES OF THE REGULAR CITY COUNCIL MEETING TUESDAY- -APRIL 18, 2000- -7:30 P.M. Mayor Appezzato convened the Regular Meeting at 8:20 p.m. ROLL CALL - Present: Councilmembers Daysog, DeWitt, Johnson, Kerr and Mayor Appezzato - 5. Absent: None. AGENDA CHANGES None. PROCLAMATIONS, SPECIAL ORDERS OF THE DAY AND ANNOUNCEMENTS (00 -186) Mayor Appezzato announced that he called a Task Force Meeting regarding anonymous graffiti and letters written related to the Columbine High School shooting April 20, 1999; that he will meet with the City Manager, Schools and the Police Department to ensure concerns are addressed; hopefully, individuals who wrote the graffiti and letters will be apprehended. (00 -187) Announcement of Library's Community Needs Assessment Workshop. Karen Butter, Member, Library Board and Library Needs Assessment Steering Committee, announced that there will be two Community Needs Assessment Workshops in May to listen to the Community on how the library can contribute to civic goals; fifty citizens will attend each meeting; broad and diverse representation is being sought; the Meetings will be on Thursday, May 18 and Monday, May 22. CONSENT CALENDAR Mayor Appezzato announced the recommendation to authorize the City Manager to submit an application and execute CalWORKS contract Employment Grant [paragraph no. 00 -1901 and the recommendation to approve proceeding with the Structural Stabilization, Restoration and Prevention of Deterioration Option of the Carnegie Building [paragraph no. 00 -1941 were removed from the Consent Calender for discussion Councilmember Kerr moved approval of the remainder of the Consent Calender. Councilmember DeWitt seconded the motion, which carried by Regular Meeting Alameda City Council 1 April 18, 2000 unanimous voice vote - 5. [Items so enacted or adopted are indicated by an asterisk preceding the paragraph number.] ( *00 -189) Minutes of the the Special Joint City Council and Alameda Board of Education Meeting held on March 28, 2000, the Special and Regular City Council Meetings held on April 4, 2000, and the Special Joint City Council and Alameda Reuse and Redevelopment Authority Meeting held on April 5, 2000. Approved. (00 -190) Recommendation to authorize the City Manager to submit an Application and execute a Contract for CalWORKS "Neighborhood Model" Employment Grant. Richard Neveln, Alameda, Member, Public Transit Committee and West Oakland Community Advisory Board, stated that in Oakland, there is a tremendous need to employ people through CalWORKS; approximately $240,000 of Oakland's grant is spent to enhance Ac Transit's late night and overnight transit service; funding transit is important to make employment a reality for people participating in the CalWORKS program; the City of Alameda should modify its program through CalWORKS to include public transit money; transportation to 1:00 a.m. jobs makes the training a reality. Councilmember DeWitt stated the City's money is used to operate a One -Stop Career Center at the College of Alameda; stated there is not enough money to assist with transportation. The Community Development Manager stated the CalWORKS grant Mr. Neveln is addressing is a special grant through the Alameda County Social Services Agency; CalWORKS typically has a transportation component; staff anticipates said funding will continue; staff has been working with the Metropolitan Transportation Commission on its welfare -to -work transportation funding program; there will be a separate Request for Proposal issued within the next several months; the matter will be reviewed to determine whether an application for additional funding should be submitted. Councilmember Johnson stated the matter has come before the Public Transit Committee; Oakland has had a substantial amount of funding which has been used to provide transportation from residential areas to areas where there are jobs; when applying for programs, the City should keep in mind the need for expanded transit service. The Community Development Manager stated the City of Oakland is under a separate funding source for its CalWORKS money; staff recognizes the importance of transportation to jobs. Councilmember Johnson stated Oakland established a route to the Oakland Airport; the City of Alameda does not have bus service to Regular Meeting Alameda City Council 2 April 18, 2000 the Oakland Airport; jobs [at the Airport] would be good for Alameda residents. Mayor Appezzato stated a number of local businesses have committed to participate if the program is funded. Councilmember Kerr stated the Alameda Housing Authority has a very successful welfare -to -work program, which has a very low dropout rate. Councilmember DeWitt moved approval of staff recommendation. Councilmember Kerr seconded the motion, which carried by unanimous voice vote - 5. * ** Mayor Appezzato called a recess at 8:30 p.m. and reconvened the Regular Meeting at 8:33 p.m. * ** ( *00 -191) Recommendation to award Contract in the amount of $319,194 to McGuire and Hester for Main Street Ferry Terminal Parking Lot Expansion Project, No. P.W. 09- 99 -23. Accepted. ( *00 -192) Recommendation to adopt Plans and Specifications and authorize Calling for Bids for Harbor Bay Parkway Extension Phase 4 and Landscape Improvements Phases 3 and 4, No. P.W. 07- 99 -19. Accepted. ( *00 -193) Recommendation to adopt Plans and Specifications and authorize Calling for Bids for Bay Farm Island Dike Repair Phase 2, No. P.W. 05- 99 -16. Accepted. (00 -194) Recommendation to approve proceeding with the Structural Stabilization, Restoration and Prevention of Deterioration Option of the Carnegie Building, and to allocate $160,000 in Escalated Certificates of Participation (COP) Money for the Carnegie Library Improvement Project, No. P.W. 08- 99 -22. Len Grzanka, Alameda, stated that he wonders why the total cost to completely renovate the Carnegie Library comes to more than $16 Million when a brand new, state -of- the -art library would cost only $20 Million, according to Library 2000 proponents; inquired whether the Public Works Director's calculations are incorrect or whether Library 2000 is deliberately low- balling the numbers for its library; stated the cost for renovating and expanding the Carnegie in 1995 was about $6.6 Million, which would work out to about $10 Million today; prior to the [1998] Measure A vote, the City Regular Meeting Alameda City Council 3 April 18, 2000 indicated Alameda Power & Telecom's Cable TV proposal would only cost $7.9 Million; however, the City had to float $20.5 Million worth of bonds; that he wonders whether the City low -balls cost estimates for the projects it likes and high -balls estimates for the projects it does not like; last August, the Public Works Director recommended that the City sell 10.2 acres of land at the Harbor Bay Business Park to Harbor Bay Associates for $268,000 an acre, and eight months later recommended that the City purchase 2 acres from Harbor Bay Associates for $480,000 an acre; perhaps Harbor Bay Associates will be the General Contractor on the Carnegie renovation, which is what increased costs; stated the City should straighten out the matter. Dave Plummer, Alameda, stated City Hall cost around $7.5 Million to seismically strengthen and completely renovate; for the Carnegie Building, which is less than half the size of City Hall, to cost twice the amount to renovate is hard to believe; suggested a new, outside estimate be ordered or drawings be finished, the project be put out to bid and the City Hall contractor be invited to bid; stated it will take winning State bond money and passing a City- wide bond issue to get an improved library for Alameda; the Carnegie Library, in its present state and size, is inadequate; however, if the Carnegie Library building is renovated and expanded on its City -owned children's library land, Alameda could have a wonderful library of around 35,000 square feet, for half the cost of a Linoaks Library; people feel the temporary library in the [Historic Alameda] High School, which has two stories totaling 18,000 square feet, is working out; an expanded Carnegie Library on City -owned land could allow 35,000 square feet of well - designed library; unlike Alameda, the City of Berkeley just passed a large bond issue to renovate and expand its 1931 central library; for the City of Alameda to have an improved state -of- the -art library, Alameda is going to need to demonstrate to the State and the Alameda voters that it is acting most prudently by utilizing and working with what it has; destroying housing at the Linoaks and discouraging the rehabilitation and retention of the Carnegie Library will not win money and /or votes. Mayor Appezzato stated people against the Bond Measure a couple of years ago opposed new taxes, not the library; no matter what is done, renovation of the Carnegie or construction at the Linoaks, the same people are going to say no more taxes; inquired whether voters would approve a bond measure for the Carnegie. Mr. Plummer responded the less costly request will get the votes. Mayor Appezzato inquired whether it is okay to raise taxes for the Carnegie, but not to raise taxes for the Linoaks. Regular Meeting Alameda City Council 4 April 18, 2000 Mr. Plummer responded if it [Carnegie project] is a more moderate project. Mayor Appezzato inquired whether people would not have launched a "no new taxes" campaign if the project was for the Carnegie. Mr. Plummer responded the project would have had a much better chance and probably would have passed; Alameda should have an improved library that is within its means; it [Carnegie project] would stand a better chance of receiving State funding; of the cities which requested funding, the record shows lesser requested amounts [of funding] were granted. Mayor Appezzato stated if the City receives State funding, the matter will have to go to the voters whether the library is at the Linoaks or Carnegie. Mr. Plummer stated there is such a tremendous difference in money that the City cannot go to the State without choosing which site will be used. Mayor Appezzato agreed. Councilmember Kerr stated when the matter was before the voters [in 1996], she read the Berryman and Henigar Engineering Report which listed proposed assessments; there was great tax inequity; commercial properties were let off lightly; huge apartment buildings, like the Alameda Hotel, were in a very low tax bracket due to commercial zoning, while very small apartment houses were to pay far more than the entire Alameda Hotel; there was such great disparity that Council delayed the vote for two weeks upon her request; everybody was sure the Measure would pass and would not change the assessment method except for buildings with four units and under; a great movement started because the assessment procedure was unfair; whatever goes to the voters should not have the same flaw. Mayor Appezzato stated rental property owners thought the assessment was not fair; however, single- family homeowners were to pay the same amount as rental properties per unit; families use the library; the campaign [against the Measure] was no new taxes; the majority of people in Alameda are renters; that he supports a new library; if the City gets 650 of the funding to build a new library and renovate those which exist, the remaining 35% will have to be approved by the voters of Alameda; 740 of Alameda voters supported the State bond initiative [March 2000 Election]. Regular Meeting Alameda City Council 5 April 18, 2000 Councilmember Johnson requested the Public Works Director to clarify the amounts for each construction phase. The City Manager stated the staff report includes costs to make additional parts of the Library available for public use at different levels; the summary shows four phases; if Council were to authorize Phase 4, the total estimated cost would be $5.5 Million. Mayor Appezzato inquired whether the complete restoration estimate is $5.5 Million, to which the Public Works Director responded in the affirmative. Councilmember Kerr stated according to the Berryman and Henigar Report, the total cost for design and renovation, with all the bells and whistles, was $3.5 Million; four years later, the cost has risen to over $5 Million; inquired whether said increase is due to inflation. The Public Works Director stated that he was not familiar with the previous study's cost estimates; his staff has not reviewed the study; based on current good engineering judgement, the estimate is $5.5 Million. The City Manager stated the same level of detail was not provided previously; part of the problem is that the City did not go into the engineering detail to develop accurate cost figures; it is probably a combination of cost escalation over the past four years, and the fact that the City did not provide numbers in specific details; there is no record which explains why said detail was not provided. Councilmember Kerr stated the matter that went to the voters listed amount very specifically; further stated Capital Improvement Projects (CIPs) were approved for renovation of the Carnegie in December of 1996; inquired whether the philosophy on CIPs is first come first serve. The City Manager stated the Public Works Director was charged with creating logic to the CIP program, to stretch it globally, enlarge it, and think more strategically looking to the future; the Public Works Director put together a 5 -year CIP Plan, which will be expanded to 10- years; staff is trying to create some level of understandability and present priorities to the City Council that have been raised in the community through Boards and Commissions. The Public Works Director stated there was no prioritization of CIPs before he began working at the City; he developed a prioritized list; there is a monthly status report of CIPs; the Regular Meeting Alameda City Council 6 April 18, 2000 Carnegie Library project has been included in said report; the project has remained mostly on schedule; there have been delays due to the fact that there was a lapse in the grant, while the City hired a new Chief Building Official; his staff checked with the Office of Emergency Services (OES) to ensure that the grant would be reactivated. Councilmember Kerr stated the Main Library does not have a place to go; the rent at the [Historic Alameda] High School is about to rise sharply; the City is depending upon a favorable vote in November and acquisition of Proposition 14 [March 2000 Election] funds; the ability to use the Carnegie as a library has been eliminated unless said matter is also placed on the ballot; the City is up a creek unless [a Bond Measure for] the Linoaks passes in November and the City receives Proposition 14 funds. Councilmember Johnson stated the matter before Council is consideration of Phase 1, which is structural stabilization, restoration and prevention of deterioration of the Carnegie; most residents probably do not want to see further deterioration of the Carnegie building. Councilmember Johnson moved approval of the staff recommendation. Councilmember DeWitt seconded the motion. Mayor Appezzato stated for $500,000 more, the first floor of the building could be used; inquired whether the City should decide what will be done with the Carnegie before spending the additional $500,000. The Public Works Director stated the funds available for CIPs are very limited; additional funding for Phase 2 is not available. The City Manager stated Heating Ventilation and Air Conditioning system for Mastick Senior Center, which is a substantial project, is the number one [CIP] recommendation to the Council [for FY 2000- 01] . Mayor Appezzato inquired whether first floor occupancy would cost only an additional $500,000 if funds become available. The Public Works Director responded in the affirmative. Councilmember Kerr inquired why the staff report has $3,289,160 listed under Phase 2. Councilmember Johnson responded that Phase 2 includes the amount for Phase 1 and Phase 2. Regular Meeting Alameda City Council 7 April 18, 2000 Councilmember Johnson stated the motion could include the preference to open up the Carnegie building and make it useable; making the Carnegie available is a priority of residents. Councilmember Kerr inquired whether making complete restoration an unfunded CIP addresses Councilmember Johnson's request. The City Manager responded that staff can consider the matter when preparing the recommendation and presenting the CIP list to Council. The Public Works Director stated the staff report indicates that the City will look for grants from the Carnegie foundation as well as from the State and federal government. Mayor Appezzato inquired whether OES indicated it may come up with additional funds. The Public Works Director responded that OES might provide for escalated monies; as the City is escalating the Certificates of Participation, the City needs to apply for said funding; if the funding is available, OES will provide it to the City. Vice Mayor Daysog thanked the Public Works Director for his effort. On the call for the question, the motion carried by unanimous voice vote - 5. Mayor Appezzato called a recess at 9:04 p.m. and reconvened the Regular Meeting at 9:17 p.m. (00 -195) Resolution No. 13207, "Appreciation to the Volunteers for the City of Alameda." Adopted. (00 -196) Ratified bills in the amount of $ 2,336,388.69. REGULAR AGENDA ITEMS (00 -197) Public Hearing to consider Ordinance No. 2829, "Urgency Ordinance Placing a Moratorium on Certain Permitted and Conditionally Permitted Uses in C -2 and C -M Zoning Districts within the Park Street and Webster Street Business Areas." Adopted. The Economic Development Manager gave a brief presentation. Mayor Appezzato opened the public portion of the Hearing. Regular Meeting Alameda City Council 8 April 18, 2000 Proponents: Jim Sweeney, Alameda; Michael Dugan, Elders Inn; Robb Ratto, Park Street Business Association (PSBR); Timmie Chesler, Alameda. Opponents: Keith Nealy, Alameda; Sam Koka, Alameda; Linda Bradford; Carl Searway, Alameda; Marilyn Schumacher, Alameda; Moti Koka, Alameda; Bill Smith, Alameda. Requesting exemption: Elbin Chiu, Bay View Investment Group, Inc.; Tony Chiu, Alameda; Nelson Ng, Alameda; Wendy Yang, Alameda; Alice Teo, Alameda; Sam Chan, Alameda; Chelito Mercado, Alameda; Amy Chiu, Alameda; Dennis Hut, Alameda; Rena Rickies, Representing John Ng; Kimberley Wong, Alameda. There being no further speakers, Mayor Appezzato closed the public portion of the Hearing. Following Nelson Ng's comments, Vice Mayor Daysog requested the City Attorney to clarify whether it is technically and legally feasible to allow exemption as requested. The City Attorney responded Section 15 of the Ordinance provides a procedure for requesting exemption. Vice Mayor Daysog inquired whether Council could provide an exemption tonight. The City Attorney responded in the negative; stated the Council must apply the moratorium equally throughout all uses; if Council wants to exempt a specific business from the moratorium, the procedures set forth in Section 15 must be followed. Councilmember DeWitt stated the particular proposal [Bay View Regular Meeting Alameda City Council 9 April 18, 2000 Investment Group, Inc.] should not be subject to the moratorium; inquired whether it is possible to not include the proposal in the moratorium. The City Attorney stated she could ask questions and there could be an evidentiary hearing to establish a factual basis to differentiate the particular project from others; inquired whether the project has been deemed complete. The Development Review Manager stated the application has been processed and has gone to the Planning Board. The City Attorney stated that [being deemed completed] could be established as a criteria [for exemption]. Mayor Appezzato inquired whether Council could decide that if it [Bay View Investment Group, Inc. project] is in the pipeline, it could be exempt and anything not in the pipeline could come under the moratorium, to which the City Attorney responded in the affirmative. Following Rob Ratto's testimony, Councilmember DeWitt inquired whether churches could be added on later if left out tonight. The City Attorney stated an additional urgency ordinance could be adopted to have a separate moratorium on churches; however, in 45 days Council will consider continuing the urgency ordinance before Council tonight. Following Linda Bradford's comments, Vice Mayor Daysog inquired whether the liquor store issue was resolved. The Development Review Manager stated liquor stores are to be precluded; the Business Associations would like liquor stores deleted [from Conditionally Permitted Uses]. The City Attorney stated that when Council makes a motion, she would suggest: 1) under Section 8, Conditionally Permitted Uses, Item No. 7 [Liquor Stores], be deleted, which was the request from the Business Associations; and 2) to accommodate the Wienerschnitzel [Bay View Investment Group, Inc. Project], there can be an additional section added to the Ordinance. Vice Mayor Daysog inquired whether Item No. 3 [Liquor Stores] under Section 6 of the Ordinance should be deleted as well, to which the City Attorney responded in the affirmative. Following Marilyn Schumacher, Mayor Appezzato stated the Christian Regular Meeting Alameda City Council 10 April 18, 2000 Science Reading Room would be considered retail. Councilmember Kerr inquired whether the Christian Science Reading Room would fall under Item No. 6 [in Section 5 of the Ordinance] bookstores and rental libraries. The Planning Director stated there is a section in the [Alameda Municipal] Code which states: "or similar uses "; the Christian Science Reading Room functions like a bookstore or rental- library- type of retail activity, as opposed to a church with a traditional congregational space; therefore, the interpretation that the Reading Room would be treated as retail space; the difficulty is that the moratorium is intended to be drawn very narrowly and does not provide the flexibility which is otherwise provided to the Planning Director to identify other uses of a similar character; items on the list are the only permitted businesses. Mayor Appezzato inquired how the Planning Director can be provided said option to keep the City from being too onerous. The Planning Director stated that the wording could be; however, the ordinance was drafted to be narrow; staff could look at wording which can be written in a way clear enough to include the Christian Science Reading Room relocating within the commercial area. Vice Mayor Daysog inquired how churches were added because [Alameda Municipal Code] Section 30 -4.9 does not include churches under uses permitted or uses requiring a use permit. The Planning Director stated the Alameda Zoning Ordinance is prymidal; one of the first provisions in the C -2 District is all uses permitted in C -1; churches are permitted in C -1 and are carried forward by reference. Councilmember DeWitt stated that he would support better wording for the exclusion of churches. Following Bill Smith, the last public speaker, Councilmember Johnson stated there are visioning processes going on for downtown districts; when the vision process is in place, the City will have something to work with; as a matter of equity, it is fair to let the Wienerschnitzel process go forward; if the Council votes in favor of said matter, the project will not be approved tonight, it will be allowed to go through the Appeal process which began before the moratorium; the timeframe [of the moratorium] can be further discussed; the moratorium should not be in place for 45 days and an additional 22 months; the process should be as quick as possible; that her motion would include wording to make an allowance for the Christian Science Reading Room. Regular Meeting Alameda City Council 1 1 April 18, 2000 Councilmember Johnson inquired whether language should be provided for the record. The City Attorney responded in the affirmative; stated the action is first- and second - reading and takes effect in thirty days. Councilmember Kerr suggested Item Number 6 [in Section 5 of the Ordinance] be changed to read: "Bookstores, rental libraries and reading rooms;" staff indicated said language would allow the Christian Science Reading Room to relocate. Councilmember Johnson moved amendment and adoption of the Ordinance as follows: 1) Section 12, add: "Any business that has requested a use permit, has been deemed complete, has been heard by the Planning Board and has appealed to the City Council is declared as exempt from this Ordinance "; 2) Item Number 6, Section 5, Permitted Uses, add: "and non - denominational reading rooms." Councilmember Kerr stated the reading room is denominational. The City Attorney stated the motion could be revised by adding "reading rooms" [to Item Number 6, Section 51. Councilmember Johnson agreed to amend her motion. Mayor Appezzato stated the City has to be fair and equitable to business owners; that he is concerned about property owners; the City has to be judicious when development is not permitted. Councilmember Kerr inquired whether the language was revised to "Bookstores, rental libraries, and reading rooms." Councilmember Johnson responded in the affirmative. Vice Mayor Daysog stated Councilmember Johnson's motion should be amended to remove Item Number 3 [Liquor Stores] of Section 6 of the Ordinance, and Item Number 7 [Liquor Stores] of Section 8 of the Ordinance. Councilmember Johnson agreed to amend her motion. Councilmember Johnson requested staff to discuss the timeframe. The City Manager stated staff will return to the City Council within 45 days with a report identifying a timeline; Council will have an opportunity to address the matter prior to extension of the moratorium. Regular Meeting Alameda City Council 12 April 18, 2000 Mayor Appezzato urged business and property owners to continue to participate in the process and look into joining the business associations; stated a letter from the West Alameda Business Association (WABA) supports the Wienerschnitzel project application; the applicant should work closely with WABA to ensure it continues to support the project; it behooves the business associations to assist the Planning Board and City Council, however, input should be provided at the beginning of the process to ensure huge amounts of money are not spent developing [projects] that everybody wants thrown out when the matter is before Council; it [project's merit] should be addressed long before it is before Council; the community needs to be more definitive on making decisions that are fair and equitable to everyone; there are property rights. Councilmember Kerr seconded the motion. Under discussion, Vice Mayor Daysog stated hopefully the revolving door of liquor stores on Webster Street will be stopped. Councilmember DeWitt stated property and business owners should be informed of rules early to ensure money is not spent on blueprints and soil samples only for the project to be turned down; Webster Street has different problems than Park Street; the moratorium began because of the cigarette and check cashing stores; requests have been denied on Webster Street because there are many of the same types of businesses; Webster Street has bars, liquor stores, and automobile shops; Neptune Plaza started the problem; three businesses, which already existed, were permitted; there was already a laundromat, pizza parlor and video store; the request for the Webster Square Walgreens was permitted when there were two drugstores down the street; there was a request for an auto repair shop; there are seven auto repair shops and part stores in the area; there is a fast food request; there are many fast food stores on Webster Street; the problem with Webster Street is redundancy; the upcoming Appeal [Wienerschnitzel] might not be considered fast food. Mayor Appezzato stated there should be competition; if Alameda citizens do not shop at a store, it will go out of business; businesses exist to serve the community; those doing a good job will stay in business; those not serving the public well should not have the luxury of the City turning down similar businesses on the same street; the City should not create vacant lots all over the community because people do not like the types of proposed businesses. On the call for the question, the motion carried by unanimous voice Regular Meeting Alameda City Council 13 April 18, 2000 vote - 5. (00 -198) Recommendation to adopt FY 2000 -01 through FY 2004 -05 Five Year Strategic Plan; FY 2000 -01 Community Development Block Grant (CDBG) Action Plan; Amendment No. 2 to FY 1999 -00 Community Development Block Grant Action Plan; and authorize execution of Related Documents, Modifications and Agreements; and (00 -198A) Recommendation to approve the Community Development Block Grant FY 2000 -01 Public Service Funding Allocations. Len Grzanka, Alameda, stated the Federal Hatch Act restricts the political activities of organizations receiving CDBG funds; organizations which receive taxpayer funds, including the City Council, should not try to affect the vote of the electorate with sponsorship of funds; that he wrote a letter to the Inspector General of the U.S. Department of Housing and Urban Development and the Regional Administrator for Community Planning & Development funds, which states: "As you know, Congress passed the Hatch Act restrictions on organizations receiving public funds so that taxpayers agreeing or disagreeing with one side of a political measure before the electorate would not be funding political activity on the other side of the measure. A week and a half ago, I called Mr. Art Agnos, HUD Regional Administrator, and discussed an Alameda Organization which received $26,186 in HUD CDBG funds last year and subsequently took an active role in opposing two measures on the March 7, 2000 Ballot. Mr. Agnos concurred with my opinion concerning this organization's eligibility to receive federal funds and recommended I send this complaint and substantiating documents to Mr. Sachs and the Regional Inspector General. While such activity should make the organization ineligible to receive CDBG funding, the Alameda City Council will vote on Tuesday, April 18, 2000 to award to organization $25,893 in CDBG funds for the 2000 -01 fiscal year. I request that you investigate this matter and rule the Alameda Multi - Cultural Center (AMCC) ineligible to receive federal funds due to numerous violations of the Hatch Act. To receive CDBG funds, the AMCC signed an agreement with the City of Alameda which explains that non - profit organizations financed in whole or in part by federal loans or grants may not use official authority or influence for the purpose of interfering with or affecting the results of an election. Subsequently, the AMCC newsletter Vol. II, #1, January 2000, contained a full -page message dominated by a "No on Knight Proposition 22" graphic opposing Proposition 22 on the March ballot. The organization also put up several signs opposing Proposition 22 at its facility at 842 Central Avenue, Alameda. The AMCC newsletter Vol. II, #3, March 2000, also contained a full -page message opposing Proposition 21 on the March ballot. These political messages were intentional violations as the March message Regular Meeting Alameda City Council 14 April 18, 2000 from Mariano Juaco, AMCC Director, explained: `At our recent board of directors meeting, the board had discussed whether to speak out for or against certain propositions. Most agreed that as long as the propositions affected or challenged our mission statement as a center, we felt that it was our obligation to do so.' By doing so, the organization made itself ineligible for CDBG funds as well as for IRS 501(c)3 non - profit status." [Mr. Grzanka submitted a copy of his complaint and substantiating documentation for distribution to the City Council.] Irene Arroyo, BANANAS, thanked the Mayor and City Councilmembers for supporting child care; stated subsidized child care is in short supply in the City of Alameda; the City of Alameda currently has two centers: Woodstock Child Care Development Center which has 216 subsidized spaces and over 100 people on the waiting list, and Alameda College has 105 subsidized spaces with a very long waiting list; welfare reform will effect low- and moderate - income working families; lack of spaces will make it difficult for families to continue working and some will have to consider returning to welfare; BANANAS has been administering the Alameda Child Care Vendor Program with CDBG funds since 1985 and has serviced over 500 children; the service is cost effective; the program assists low - income working families to become stable and self - efficient by providing $150 per month per child for 9 months; urged continued funding. Allan Shore, Xanthos, stated that he supports the proposal for centrally located child care programs; surveys have established the need for child care facilities in the central part of Alameda; it is unfortunate that CDBG funding could continue to decrease while other funding increases. Mayor Appezzato inquired whether there are no new programs. The Community Development Manager responded in the affirmative; stated public service programs are a portion of the annual allocation; other projects are new, but do not fall within the public services cap. Mayor Appezzato inquired the amount of funding which was cut by the federal government, to which the Community Development Manager responded $40,000 over two years. In response to Mayor Appezzato's inquiry whether cuts were applied across the board, the Community Development Manager stated essentially, however, it is a little more complex. Councilmember Kerr inquired whether East Bay Asian Local Regular Meeting Alameda City Council 15 April 18, 2000 Development Corporation's [EBALDC's] funding is contingent upon it obtaining a use permit. The Community Development Manager responded the Multi - Cultural Center needs to get a use permit to remain in its current location; staff's recommendation is to support funding related to apportion of rent, therefore, it [Use Permit] would be a condition; EBALDC has been the fiscal and administrative agent for the Multi - Cultural Center as it was working through the process of becoming a non- profit; the Multi - Cultural Center has received its non - profit status and 501(c)3; therefore, a contract with EBALDC is not recommended, rather a direct contract with the Multi - Cultural Center is recommended once it has met the fiscal and administrative management requirements. Councilmember Kerr stated Council receives petitions from people who have been sold by the EBALDC performa on East Housing; citizens are being provided inaccurate information; that she has met with people from the group [EBALDC] and explained that things must be brought up to civilian code; EBALDC either does not want to hear or tells people something which is not true; hundreds of people believe that something fiscally impossible is possible. Mariano Jauco, Director, Alameda Multi - Cultural Community Center, stated the Multi - Cultural Center is a young organization formed to promote diversity; the Center spoke out on propositions; City staff member Kathy Quick informed him of the Hatch Act; he removed signs and understands the Center cannot take positions on propositions; it will not happen in the future; the Center just received its 501 (c) 3 status March 30, can stand alone as a non- profit organization, and will be separating from EBALDC; the Center will separate as quickly as possible. Councilmember Kerr inquired whether the Multi - Cultural Center has received positive response from its outreach to National Association for the Advancement of Colored People (NAACP), Filipino American Community Services Agency (FACSA) and United Philippians of America (UPA). Mr. Jauco responded in the affirmative; stated the NAACP is interested in holding meetings at the Center; the number of organizations using the facility is growing; the facility is being provided free of charge to community -based organizations; e.g., AUSD has used the facility for training, and a Welfare Reform Taskforce has been holding meetings at the Center; the Multi - Cultural Center's primary concern is outreach to undeserved within community. Regular Meeting Alameda City Council 16 April 18, 2000 In response to Councilmember Kerr's inquiry regarding sewing classes, Mr. Jauco stated the Central American Refuge Committee has been conducting sewing classes since the Center opened; there are 4 or 5 sowing machines; clothes and materials made are sold to fund the program; the group focuses on latino community refuges. Councilmember Daysog moved approval of the staff recommendation. Councilmember Johnson seconded the motion, which carried by unanimous voice vote - 5. Mayor Appezzato called a recess at 11:11 p.m. and reconvened the Meeting at 11:25 p.m. (00 -199) Response to Association of Bay Area Governments (ABAG) Regional Housing Needs Determination 1999 -2006 and Request to Appropriate $95,000 for Housing Element Update. The Development Review Manager gave a presentation; stated the regional housing needs determination process is a State mandate; according to ABAG, Alameda's anticipated growth is 1,559 units for the period January 1, 1999 through July 30, 2006; the units must be planned for during said time, not constructed; housing programs and development potential throughout the City and Alameda Point were reviewed to determine whether 1,559 could be reached; the adopted Housing Element and General Plan were reviewed; units which were anticipated in both [Housing Element and General Plan] have not been achieved; table C reflects estimated potential which may be achieved at Alameda Point and the Northern Waterfront; said projects are speculative because they require legislative actions by the City; the staff recommendation states 1,559 units could be achieved at sometime, however, constraints, including legislative actions, demonstrate that the City cannot reach numbers within the seven - and -a- half -year time period allocated; the three major constraints are: legislative requirements, Base transfer and cleanup, and traffic constraints; staff evaluated the number of units in each income category provided by ABAG and cannot achieve amounts; current funding levels and anticipated growth in funding levels, would allow staff to achieve the [required] units in the very low- income category, but the amount in the low- to moderate - income categories cannot be achieved; staff is recommending that Council appropriate $95,000, provided by the State, for the purpose of preparation of the Housing Element. Mayor Appezzato inquired whether the City can take credit for the Bruzzone project, to which the Development Review Manager responded Regular Meeting Alameda City Council 17 April 18, 2000 in the affirmative. Mayor Appezzato stated Coast Guard Housing units are owned by the Navy; requested staff to review whether said units could be counted [toward meeting ABAG requirements] when the City takes control [receives ownership]. The Planning Director responded staff would review the matter. Mayor Appezzato stated the deadline to respond is April 30; at the request of ABAG, the legislature has been asked to extend the timeframe to the end of the year; a new procedure for counting jobs and homes could be established; the City of Alameda's submittal could change substantially. The Development Review Manager stated if ABAG reallocates the number of units and changes its formula, State law requires all jurisdictions be provided 90 days to respond. Councilmember Kerr stated infill units are listed at 26 per year; the City has never achieved close to said amount; inquired whether said figure could be added to the "doubtful of ability to achieve" list. The Development Review Manager stated staff lowered said figure down to ten per year. Councilmember Kerr stated there have not been ten per year; Community Development has offered incentives, however, the City has only achieved three per year. The City Manager stated the three units on Santa Clara Avenue are an example of filling in a vacant neighborhood lot. Vice Mayor Daysog stated the staff report indicates there are 131 moderate - income units which could be achieved; requested said number be clarified. The Development Review Manager stated the staff report is addressing the allocations by income category; the Housing Development Division provided projections based on current programs. Vice Mayor Daysog inquired whether said number is reflected on Table A, B or C attached to the staff report. The Development Review Manager stated Tables A, B, and C reflect estimates from the Housing Element, the General Plan and transitioning [northern] waterfront; however, the numbers mentioned Regular Meeting Alameda City Council 18 April 18, 2000 in the staff report were reached in the abstract using current programs available. Vice Mayor Daysog stated Table A reflects Housing Element figures, including four different sites which should accommodate 138 moderate - income homes; if amounts for moderate - income housing in Tables B and C are added, it equals about 350 units; inquired how said number relates to the projection of 131 moderate - income homes listed in the staff report. The Development Review Manager stated Tables A and B are projections in the Housing Element and General Plan; said projections are discounted in footnotes; the City has not been achieving said numbers; therefore, the totals do not match projections in the staff report; 131 is a more reasonable number based on available programs. Vice Mayor Daysog inquired whether the City could reach the goal of 350 moderate - income homes if programs were available. The Development Review Manager responded in the affirmative; stated funding sources are being cited as one of the constraints which is keeping the City from achieving the number of units it is supposed to achieve. Vice Mayor Daysog stated moderate - income homes in Alameda range from $60,000 to $80,000 for a family of four; legislative changes are identified as a constraint; inquired what legislative changes are required. The Development Review Manager responded in order to achieve additional housing units at the Base and [Northern] Waterfront area, the City has to go through General Plan Amendments, Specific Plans, and rezoning; said legislative processes have not been completed and are subject to referendum. Vice Mayor Daysog inquired whether any changes to Measure A [1973] are implied, to which the Development Review Manager responded in the negative. Councilmember Kerr inquired whether ABAG has been informed that tideland trust land is not available for housing. The Planning Director stated the allocation provided by ABAG is not based on examination of local land use, it is based on projections and forecasting of jobs and population growth, and allocation of a proportionate share; the numbers are not based on reviewing empty land and determining whether housing can be placed on said land; a Regular Meeting Alameda City Council 19 April 18, 2000 formula has been provided to Council as an attachment to the staff report. Richard Neveln, Alameda, stated the reduction of the allocation of low- and moderate - income units is disturbing and may squeeze out some businesses; working class units are needed, which could be provided by East Housing; market -rate housing will add to congestion; more housing for people working in Alameda, e.g., teachers, will satisfy housing advocates and reduce traffic. Allan Shore, Alameda, stated using traffic issues as a reason the City is not able to deal with housing issues is not a good message; private property rights impact issues around housing, not traffic and transportation; the transit problem in Alameda can be fixed; urged Council to put forth the message that something is being done about transit, rather than use it as an excuse for housing problems not being solved. Vice Mayor Daysog stated the City of Alameda is doing okay in meeting ABAG's goals; Alameda can meet the very low- income goal; the problem is in the moderate - income range; ABAG states Alameda should come up with 437 units, while the City thinks it could only come up with 131 units; there is no financing available; ABAG should assist with finding financing to meet said goal; land dedicated for housing would allow Alameda to produce 320 units for moderate - income families; however, the City cannot reach said goal due to lack of financing; the City should view meeting the goal as a challenge; the moderate - income housing goal of 320 in areas throughout Alameda could be met without keeping East Housing; the City Manager should emphasize that financing is preventing the City from assisting moderate - income families, and ensure that the City is not opening itself up for ABAG to challenge Measure A [1973] Charter Amendment. Councilmember Kerr moved that the meeting be continued past 12:00 midnight. Vice Mayor Daysog seconded the motion, which carried by consensus. Councilmember Kerr stated the City is surviving the Clayton Guyton lawsuit and should not make promises of housing which cannot be built; to meet the court - ordered 34 -35 units the City had to build, affordable housing money was thrown out the window; 4- plexes were rehabilitated at between $250,000 to $350,000 per unit; staff should ensure restraints are documented and understood by ABAG; Council receives a stack of petitions each day on East Housing; Regular Meeting Alameda City Council 2 0 April 18, 2000 there is a proposal to purchase land, which is worth between $50- and $60 Million, for $4.5 Million; said money would be taken from the people of Alameda; the East Housing share of infrastructure is approximately $12.5 Million; when the property comes into civilian hands, civilian codes must be met below the ground; East Bay Municipal Utility District will not take custody of the Navy water mains; there would be no running water; an agreement with the Homeless Collaborative was signed which involves sending a great amount of tax increment to the Collaborative; said agreement cannot be met unless East Housing is redeveloped to produce the tax increment; the City cannot withdraw from the Agreement unilaterally; retaining East Housing does not pencil out; there is no way that units could be sold or rented for prices listed in the proforma; people are being fed smoke; the proposal is not based on solid financial legs. Councilmember DeWitt moved approval of the staff recommendation. Councilmember Johnson seconded the motion, which carried by unanimous voice vote - 5. (00 -200) Ordinance No. 2830, "Reclassifying and Rezoning Property at 2415 and 2455 Mariner Square Drive from M -2 General Industrial /Manufacturing Zoning District to M -2 /PD General Industrial /Manufacturing with a PD Planned Development Combining Zoning District." Finally passed; and (00 -200A) Resolution No Modifying Planning Board Use Permit UP 99 -27 and Living Facility, a Dry with Piers at Mariner S John Beery Jr. /Mariner S 13208, "Revising Resolution No. 13196 Approval of Planned Development PD 99 -04, Design Review, DR -99 -74 for an Assisted Boat Storage Building and Floating Docks quare, for Aegis Assisted Living and for quare." Adopted. Councilmember DeWitt moved final passage of Ordinance and adoption of the Resolution. Councilmember Johnson seconded unanimous voice vote - 5. ORAL COMMUNICATIONS, NON- AGENDA the motion, which carried by (00 -201) Richard Neveln, Alameda, stated Ac Transit will hold a Public Hearing on proposed service changes; line 50 will be extended up to the Chabot Observatory and past the Ferry Terminal to the USS Hornet; expanded service will assist with development at Alameda Point; urged Councilmembers DeWitt and Johnson to attend the Public Hearing and extend the City's gratitude and support of Regular Meeting Alameda City Council 21 April 18, 2000 AC Transits's proposed action. (00 -202) Dan Reidy, Attorney representing Harbor Bay Business Park, submitted a letter; stated a new company, Covance Research Products, Inc., would like to locate to the Harbor Bay Business Park; the company does research, which is a permitted use; a Final Development Plan and Design Review application have been submitted; medical devises are tested using some animals, including pigs; the Alameda Municipal Code prohibits more than one pig per acre and requires pigs be 300 feet away from any other structure; requested the matter be placed on an agenda for Council's consideration. (00 -203) Bill Smith, Alameda, commented on housing issues. COUNCIL COMMUNICATIONS None. ADJOURNMENT There being no further business, Mayor Appezzato adjourned the Regular Meeting at 12:09 p.m. Respectfully submitted, Diane B. Felsch, CMC City Clerk The agenda for this meeting was posted in accordance with the Brown Act. Regular Meeting Alameda City Council 22 April 18, 2000