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2008-01-02 Regular CC MinutesMINUTES OF THE REGULAR CITY COUNCIL MEETING WEDNESDAY- - JANUARY 2, 2008- -7:30 P.M. Mayor Johnson convened the Regular Meeting at 7:44 p.m. ROLL CALL - Present: Councilmembers deHaan, Gilmore, Matarrese, Tam, and Mayor Johnson - 5. Absent: None. AGENDA CHANGES (08 -002) Mayor Johnson announced that the Public Hearing [paragraph no. 08 -011] would be continued to January 15, 2008. PROCLAMATIONS, SPECIAL ORDERS OF THE DAY AND ANNOUNCEMENTS None. CONSENT CALENDAR Mayor Johnson announced that the Minutes [paragraph no. 08 -003] were removed from the Consent Calendar for discussion. Vice Mayor Tam moved approval of the remainder of the Consent Calendar. Councilmember deHaan seconded the motion, which carried by unanimous voice vote - 5. [Items so enacted or adopted are indicated by an asterisk preceding the paragraph number.] (08 -003) Minutes of the Special Joint City Council, Alameda Reuse and Redevelopment Authority, and Community Improvement Commission Meeting of December 4, 2007; Special City Council Meetings of December 5, 2007; Special City Council Meeting of December 11, 2007; and Special and Regular City Council Meetings of December 18, 2007. Vice Mayor Tam stated that Page 7 of the Special Joint December 4 minutes should state Vice Mayor Tam instead of Mayor Tam. Vice Mayor Tam moved approval of the minutes with said correction. Councilmember deHaan seconded the motion, which carried by unanimous voice vote - 5. ( *08 -004) Ratified bills in the amount of $2,511,250.80. Regular Meeting 1 Alameda City Council January 2, 2008 ( *08 -005) Recommendation to approve Amendment No. One to the Agreement between the Navy and the City for conveyance of the Fleet Industrial Supply Center (FISC) property attaching as a new "Exhibit J" a Memorandum of Agreement among the Navy, City and Palmtree Acquisition Corporation (PAC) allowing PAC to carry out remediation of the FISC property in order to construct the Alameda Landing Development. Accepted. ( *08 -006) Resolution No. 14163, "Approving an Amended Boundary Map for Community Facilities District No. 03 -1 (Bayport Municipal Service District)." Adopted. ( *08 -007) Resolution No. 14164, "Approving Revised Part -Time Classifications Salary Schedule Effective January 1, 2008." Adopted. ( *08 -008) Ordinance No. 2977, "Amending the Alameda Municipal Code by Adding Section 4 -4 to Article I (Littering and Maintenance of Property) of Chapter IV (Offenses and Public Safety) to Prohibit Polystyrene Foam Food Service Ware and Amending Section 1 -5.6 of Chapter I (General) to Authorize Additional City Employees to Serve as Code Enforcement Officers." Finally passed. REGULAR AGENDA ITEMS (08 -009) Resolution No. 14165, " Appointing Michelle Blackman as a Member of the Youth Commission." Adopted; (08 -009A) Resolution No. 14166, "Appointing Hannah Bowman as a Member of the Youth Commission." Adopted; (08 -009B) Resolution No. 14167, "Appointing Jordon Flores as a Member of the Youth Commission." Adopted; (08 -009C) Resolution No. 14168, "Appointing Ilya Pinsky as a member of the Youth Commission." Adopted; (08 -009D) Resolution No. 14169, "Appointing Anguli Sastry as a Member of the Youth Commission." Adopted (08 -009E) Resolution No. 14170, "Appointing Priscilla Szeto as a Member of the Youth Commission." Adopted; (08 -009F) Resolution No. 14171, "Appointing Ben Ulrey as a Member of the Youth Commission." Adopted; and (08 -009G) Resolution No. 14172, "Appointing Angela Sterling Vick as a Member of the Youth Commission." Adopted. Regular Meeting 2 Alameda City Council January 2, 2008 Councilmember Matarrese moved adoption of the resolutions. Councilmember deHaan seconded the motion, which carried by unanimous voice vote - 5. The City Clerk administered the Oath and presented certificates of appointment to Youth Commission Members. (08 -010) Public Hearing to consider Resolution No. 14173, "Amending Master Fee Resolution No. 12191 to Revise Permit Fees Charged for Installation of Photovoltaic Systems." Adopted. The Building Official made a brief presentation. Councilmember deHaan moved adoption of the resolution. Councilmember Matarrese seconded the motion, which carried by unanimous voice vote - 5. (08 -011) Public Hearing to consider an appeal of the Historical Advisory Board's denial of a Certificate of Approval (CA06 -0031) of demolition for 433 Taylor Avenue; and adoption of related resolution. [Continued to January 15, 2008] (08 -012) Recommendation to accept the Corica Golf Complex Operational Review and authorize staff to begin the process to secure a long -term operator for the Golf Complex. The City Manager gave a brief presentation. Richard Singer, National Golf Foundation (NGF) Director of Consulting Services, provided a Power Point presentation. Mayor Johnson inquired what was the extent of the Operational Review. Ed Getherall, NGF Project Manager, responded several days were spent at the site; stated concentration was given to major operational issues. Mr. Singer stated line items were reviewed; the review was extensive. Mayor Johnson stated the report is more of an overview and not a detailed description of operational issues. Mr. Singer stated detail was provided; significant, bottom line Regular Meeting 3 Alameda City Council January 2, 2008 issues were reviewed. Mayor Johnson stated Council needs to have detailed information regarding Golf Course management issues; all options should be considered; inquired whether the Golf Course could turn around given management issues over the past several years. Mr. Singer responded the issue was not addressed; stated bigger issues were found; labor costs are 13% higher than the standard; turning the Golf Course around would be very difficult under the current management scenario. Mr. Getherall stated many things could have been done better; the big picture is the numbers; the NGF would be irresponsible in saying that better management would bring back 180,000 to 190,000 rounds; decisions need to be made based on reality; everyone is fighting for market share; the expense side is a problem. Mayor Johnson stated the cost per round is $38.67 and is based on current operating costs; inquired what impact a fee increase would have on the Golf Course. Mr. Getherall responded fees would need to be raised significantly; stated the facility is priced appropriately for the product. Mr. Singer stated more rounds would be lost if fees were raised. Mayor Johnson concurred with Mr. Singer. Councilmember Gilmore inquired when the General Fund would start subsidizing the Golf Course under the "as -is" scenario. Mr. Singer responded that he is not sure; stated a decision would need to be made regarding whether making money or serving the community is more important. Mr. Getherall stated a $4 million loss is projected over the next five years. Mr. Singer stated that three to five years [for the General Fund to start subsidizing the Golf Course] is a fair estimate. Vice Mayor Tam inquired whether employees are represented by organized labor at profitable golf courses. Mr. Getherall responded there is every type of scenario. Mr. Singer stated some golf facilities are self operated by a Regular Meeting 4 Alameda City Council January 2, 2008 municipality with unionized labor and earn more in green fee revenue than is needed to spend on facility maintenance; all municipalities are facing the same wage and benefit increases; expenses are being cut and positions are being reduced to make ends meet. Vice Mayor Tam stated the report itemizes a series of improvements in year one and two that add up to approximately $10 million; noted that Mr. Singer mentioned that golfers only care about the condition of the greens; the banquet facility is listed as the last priority; inquired which improvements are necessary. Mr. Singer responded improvements were categorized according to those which would lead to increased revenue; stated better drainage and irrigation are high priority issues; golfers care about the greens, but fairways, tees, and sand traps are important also. Mr. Getherall stated non - resident golfers are important; resident golfers will play regardless [of conditions]; people travel to play golf; a Master Plan is needed. Councilmember deHaan stated the report brought to light a lot of what was already known; inquired whether an analysis has ever been made on a successful, local golf course. Mr. Singer stated the NGF worked with the cities of Concord, Livermore, and San Francisco. Councilmember deHaan stated Alameda's cost per round is lower or in the middle compared to other listed golf courses; inquired whether other courses will be in trouble, to which Mr. Getherall responded many golf courses are in trouble. Councilmember deHaan stated there has been a steady decline after 1996. Mr. Singer stated municipalities find it difficult to self operate a golf facility with the current wage situation. Councilmember deHaan stated a leasing option is not a cure all. Mr. Singer stated leasing is not a cure all but is the best opportunity in terms of revenue to the City. Councilmember deHaan stated all three scenarios have risk. Councilmember Matarrese stated San Mateo's golf course is the closest type to Alameda's; San Mateo's per round production cost is Regular Meeting 5 Alameda City Council January 2, 2008 $10 less than Alameda's; inquired what San Mateo is doing differently. Mr. Getherall responded some municipalities included debt service, others did not. Councilmember Matarrese stated San Mateo is operating under the same constraints as far as salaries, etc; he has a hard time understanding how San Leandro produces rounds at $6.40. Mr. Getherall stated $6.40 is the cost to San Leandro; maintenance expenses accrue to the lessee. Councilmember Matarrese stated that there is money to be had so breaking even should be possible; management affects the bottom line. Mr. Singer stated some municipal golf courses lease or have some type of management contract in place; private vendors bring in management expertise. Councilmember Matarrese inquired whether some management agreements do not have a fixed fee but are performance based where gain is shared if rounds go up, and pain is shared if rounds go down, to which Mr. Singer responded in the affirmative. Jane Sullwold, Golf Commission Chair, gave a brief presentation. Mayor Johnson inquired whether consideration was given to moving the Par 3 to the 4th nine -hole course. Ms. Sullwold responded possibly; stated another idea would be to increase fees and have the increase be dedicated to capital improvements. Councilmember Matarrese inquired whether Council would be getting an official recommendation from the Golf Commission. Mayor Johnson requested that Ms. Sullwold go through the recommendations. Ms. Sullwold stated recommendations were to: 1) use half of the current Enterprise Fund for the banquet facility and driving range improvements; 2) explore leasing out five to six acres behind the south course; 3) consider closing and leasing out the Mif Albright land; 4) advertise; 5) mothball nine holes of the Jack Clark Course and run the Course as a twenty -seven hole facility; and 6) have the City stop taking Payment in Lieu of Taxes (PILOT) , Return on Regular Meeting 6 Alameda City Council January 2, 2008 Investment (ROI), and surcharges. Councilmember Matarrese stated tough decisions need to be made; the Mif Albright recommendation would be helpful. Councilmember deHaan stated the banquet facility, driving range priorities, and cost savings that could be derived from alternative methods were discussed. Ms. Sullwold stated the Golf Commission feels that the banquet facility and driving range were potential revenue generating improvements. Councilmember Gilmore thanked the Golf Commission for creative, out -of- the -box thinking; inquired whether the Golf Commission's recommends continuing on a parallel course; stated Council could decide to issue an RFP and also explore other options. Ms. Sullwold responded exactly; stated recommendations may not be feasible after hard cost estimates are obtained. Mayor Johnson inquired what the Golf Commission thought of NGF's priority to put money into the Golf Course first. Ms. Sullwold responded most of NGF's scenarios assume the banquet facility first; stated other recommendations follow. Opponents: (Not in favor of the staff recommendation): George Humphreys, Alameda; Joe Williams, Alameda; Alan Elnick, Alameda City Employees Association; James D. Leach, Global Perspectives; Don Peterson, Alameda; Connie Wendling, Alameda; Norma Arnerich, Alameda; Ron Salsig, Alameda; Former Councilmember "Lil" Arnerich, Alameda; and Dan Gonzalez, Alameda. Mayor Johnson stated the Golf Course needs to be run like a business; businesses advertise; there is a lot of room for improvement in managing the Golf Course. Councilmember Matarrese stated a decision should not be made tonight; he does not like the idea of leasing out the operation completely; the difference between what an outside company can make and what the City can make is made on the backs of the benefits provided to employees; he reviewed labor cost increases versus raises given to each bargaining unit; benefits are the issue; someone will not have health insurance without benefits; he would like to see a breakdown to illustrate hard facts; San Mateo can produce a round for $28; the issue should be studied; everyone agrees that City facilities suffer from deferred maintenance and Regular Meeting 7 Alameda City Council January 2, 2008 that [deferred maintenance] was how the City was able to transfer the PILOT and ROI to the City's General Fund; the Golf Commission did a great job in pulling together top priorities; a Master Plan is needed before moving forward with anything. Councilmember Gilmore concurred with Councilmember Matarrese; stated it is important to follow up and explore the Golf Commission's ideas regardless of an RFP; money should be allocated for a Master Plan; the golfing public needs to have a better understanding of transfers from the Golf Fund to the General Fund; the General Fund pays for services such as public safety, libraries, and parks; currently, there is no money in the General Fund to run the Golf Enterprise as a public service; a community discussion may be instructional to find out whether the community feels that the ability to play golf Is important enough to be willing to pay increased fees or more taxes; she is not advocating more taxes but the matter should be discussed. Councilmember deHaan stated that he was at the Mif Albright Course on Christmas Eve; seeing fathers play with sons and daughters was rewarding; the Junior Golf Program is a model; there is no substitute for good management; challenges are there; formulating priorities is rewarding; the banquet facility is all important. Mayor Johnson inquired what percentage of golfers are full fee, non - resident golfers, to which the Recreation and Park Director responded that he did not know. Mayor Johnson stated that a lot of non - resident golfers have been lost. The Recreation and Park Director stated non - resident golfers have gone down from 21% to 15.50. Mayor Johnson stated full fee golfers are not going to pay to play under current conditions; a balanced budget is needed while taking time to review the issue; Council needs to direct staff to review the budget; loosing $40,000 to $50,000 per month is eating away at the reserve; the reserve was not set aside for operation but was set aside for capital improvements; the fund cannot continue to dwindle; the fund needs to be preserved to every extent possible. Councilmember Gilmore inquired what would be the timeframe for an RFP, to which the Recreation and Park Director responded nine months to a year. Councilmember Gilmore inquired whether Council would have approximately nine months to explore other options if a two -track Regular Meeting 8 Alameda City Council January 2, 2008 approach was considered, to which the Recreation and Park Director responded in the affirmative. Councilmember Matarrese inquired how much an RFP would cost, to which the Recreation and Park Director responded approximately $15,000 to $20,000 according to the NGF. Councilmember Gilmore inquired how much a Master Plan would cost. The Recreation and Park Director responded a Master Plan was investigated for the Recreation and Park Department four years ago; stated the cost was approximately $50,000 to $100,000. Councilmember deHaan stated an RFP would be a learning process and would help set priorities; inquired when the PILOT was put into place, to which the Recreation and Park Director responded approximately three years ago. Councilmember deHaan inquired when the ROI was put into place, to which the City Manager responded the ROI was implemented in 2004 and was reduced during the budget process. Councilmember deHaan stated additional burdens were placed on the PILOT and ROI within the last couple of years in order to balance some budget shortfalls within the General Fund. The City Manager clarified that the PILOT has been in place since 1993. Councilmember deHaan stated that the issue should be brought back into proper context; cost allocation is a percentage of operation and support; an expert would be needed to oversee a contract if the Golf Course was leased. Mayor Johnson stated Golf Course administrative expenses have increased substantially over the last ten years because of added positions; the matter needs to be reviewed; a bloated bureaucracy is being funded at the Golf Course. Vice Mayor Tam stated that she is hearing that a City managed alternative is worth pursuing to fruition; the Golf Commission has suggested renovating the back of the Clubhouse in lieu of building a new, clubhouse; making driving range improvements; advertising; looking at leasing five to six acres of the south course for revenues; and potentially leasing ten to twelve acres of the Mif Albright Course; it would be very helpful to get the NGF's help in coming up with hard numbers for said suggestions. Regular Meeting 9 Alameda City Council January 2, 2008 The Recreation and Park Director stated staff could work with the NGF to attach a value to the options; a Master Plan would take approximately nine months by the time community outreach was done. Councilmember Matarrese stated nine months seems excessive; a lot of work has been done already; a plan is essential even if the operation is leased out entirely; otherwise, a blank slate would be given to proposers; developing a Master Plan and attaching values to all ideas for reducing costs per round need to be done as quickly as possible; he would like to include a breakdown of labor costs and true costs of a lease operation; the RFP would address operating the Golf Course in the current configuration. The Recreation and Park Director stated the RFP would address operating the Golf Course and completing desired capital improvements. Mr. Getherall stated the City could solicit alternatives from potential operators. Councilmember Gilmore stated that she does not like the idea of having a potential operator tell the City want the City wants; a Master Plan should be provided to potential operators indicating what the City wants. Councilmember Gilmore moved approval of allocating money for staff to start on a Master Plan, requesting the NGF to help the Golf Commission explore options discussed and potentially starting the RFP process that would provide enough wiggle language so that bidders understand that the City would have a Master Plan upon which to build. Councilmember Matarrese stated that he seconds the first part of the motion regarding allocating money to put a Master Plan together and getting the value assignment for all suggested ideas for implementation; the RFP process should be a separate motion. Councilmember Gilmore agreed to address the RFP later; stated options should be explored and dollar values established; she is not sure whether ideas should be implemented before a report is received. Councilmember Gilmore amended the motion to move approval of allocating money to start a Master Plan for the Golf Course as soon as possible and exploring the Golf Commission options and any other ideas, with the assistance of the NGF. Councilmember Matarrese seconded the motion. Regular Meeting 10 Alameda City Council January 2, 2008 Under discussion, Mayor Johnson stated that she would like to include looking at the issue of tightening up the budget; she does not want to put everything on hold for a year and deplete the reserve fund every month because of the unwillingness to review what needs to be done in the interim; she would like to direct staff to look at staffing, particularly administrative, to see whether cuts can be made to help balance the budget so that the reserve fund is not depleted on a month -by -month basis. Councilmember Matarrese amended the motion to include directing staff to look at balancing the budget, particularly the administrative area. Councilmember deHaan concurred with Mayor Johnson; stated cost savings is a concerning factor; inquired whether a contractor would be able to service a debt such as the banquet facility; further inquired whether a contractor would encumber any City property. Mr. Getherall responded that the banquet facility would be encumbered by the contractor. Mr. Singer responded a contractor would not be able to encumber against any City property. Vice Mayor Tam inquired what a private lessee would bring in terms of resources that the City could not. Mr. Singer responded capital; stated operation funds have been depleted. Vice Mayor Tam stated a private vendor would try to recoup the capital through management. Councilmember Gilmore inquired how long it would take a contractor to recoup said costs, to which Mr. Singer responded ten years and perhaps longer. Mayor Johnson stated another arrangement would be a public /private partnership. Mr. Singer stated a hybrid arrangement would be possible but would require the City to come up with a portion of the capital. Councilmember deHaan inquired when the Master Plan would need to be done. Councilmember Gilmore responded nine months to a year; staff needs Regular Meeting Alameda City Council January 2, 2008 to initiate tasks as soon as humanly possible. Mayor Johnson stated a balance budget is needed as soon as possible. Councilmember Gilmore stated that she understands that the Golf Fund would have a small profit without the ROI and surcharge; the consultant's projections show that a dip into the reserves would be necessary if operations continued as is even without the ROI and surcharge. Vice Mayor Tam stated the concern is allocating funding into a depleting fund; a fund is being depleted right now to off set operating losses at the Golf Course and would be used to pay for a Master Plan. Councilmember deHaan stated that an advertising plan needs to be reviewed. Mayor Johnson stated $70,000 or $80,000 was allocated when the budget came to Council in June; allocations have increased to approximately $200,000; measures need to taken now. The City Manager stated that efforts needed to balance operational efficiencies; 2) Plan process and bring back the Golf Commission list to savings. the motion is three fold: 1) identify the current year budget through work with staff to identify a Master the costs and process; and 3) review identify the feasibility and costs Mayor Johnson inquired how much of the reserve fund was approved for operational shortfalls, whether a cap was set for last fiscal year, and whether a cap has been set now. The City Manager responded a cap has not been set but is something that has been identified in terms of a monthly report. Mayor Johnson stated it is important to be aware of how much money is spent every month. The City Manager stated expenditures are on track; revenue is down; there have been 8,000 fewer rounds than last year; the Golf Manager position has not been filled. Mayor Johnson stated that the Recreation and Park Director is doing a great job. On the call for the question, the motion carried by unanimous voice Regular Meeting 12 Alameda City Council January 2, 2008 vote - 5. Councilmember deHaan stated the Recreation and Park Director spends part time at the Golf Course; the intensity of management oversight has to be ongoing; he leaves the possibility of a part -time Golf Complex Manager up to the City Manager; Recreation and Park Department land has certain leasing restrictions; the legal aspect needs to be reviewed. Councilmember Gilmore stated that she would like to be prepared for any eventuality; she hopes that the City can continue to operate the Golf Course in a more prudent manner. Councilmember Gilmore moved approval of pushing forward with an RFP so that there is an option if it becomes apparent that there are things the City cannot do; the RFP should be tied to the Master Plan; wiggle language should be added to the RFP so that the City can tell the potential operator what the City would like done; the City needs to have something to hold the potential operator's feet to the fire. Councilmember deHaan inquired whether the RFP could be deferred to a month or so. Councilmember Gilmore inquired what type of information would be provided in a month from now that is not available now. Councilmember deHaan responded Council would have quite a bit more information; strong facts would be coming from the Golf Commission. Mayor Johnson stated that she thinks that the Golf Commission viewed the matter in a two prong process: 1) looking what the City can do and 2) moving forward with an RFP; the RFP should have flexibility; concurred with Councilmember Gilmore regarding more information not being available in a month. Councilmember deHaan stated the parameters of the RFP have changed. Mr. Singer stated an open ended RFP is an option which would allow potential vendors to propose what should be done. Mayor Johnson inquired whether preferences could be included in the RFP. Mr. Singer responded in the affirmative; stated all four items could be managed as one project simultaneously over the next three or four months. Regular Meeting 13 Alameda City Council January 2, 2008 Mayor Johnson stated that she would not like to go through an RFP process and have all responses be for long -term leases if that is not what the City intends to do. Councilmember Matarrese stated that he does not think the City should be in the business of leasing out the Golf Course entirely; he supports an RFP that solicits various portions; he cannot believe that someone holding the Master Lease would lay $10 million on the table, make a profit, pay people decently, and be successful. Mayor Johnson stated she would like the RFP to include the possibility of a hybrid public /private partnership idea; questioned why the City should put out all the money to build a banquet facility and whether the caterer could provide funding. Councilmember Gilmore stated the consultant has been given a lot of ideas regarding the RFP; the consultant should go forward with the Master Plan and RFP and come back to Council with some language for Council review; Council's goal is to improve the Golf Course asset and play, and hopefully attract full fee, outsider golfers. Councilmember deHaan stated a marketing plan is needed. Mayor Johnson inquired whether a marketing plan could be part of the Master Plan, to which Councilmember deHaan responded in the affirmative. Councilmember Matarrese moved approval of directing the City Manager to oversee the preparation of an RFP for Council review, which would include a variety of options with the stated preference not to lease out the entire facility. The City Manager stated the action is to prepare an RFP with a variety of options. Mayor Johnson stated the RFP should indicate that Council's preference is not to lease out the entire facility. The City Manager stated the RFP would include a facility Master Plan; staff would get back to Council regarding scope, cost, and timing. Councilmember deHaan inquired whether not wanting to lease out the whole operation would cause problems with candidates. Mr. Singer responded the issue is a big unknown; stated the NGF could work with the City to craft what Council wants. Regular Meeting 14 Alameda City Council January 2, 2008 Councilmember deHaan stated contracting out the management portion was reviewed and did not pencil out; inquired why the other portion would pencil out. The City Manager stated that the other portion did not pencil out on a short -term basis. Councilmember Matarrese stated long -term management was never explored. Mr. Singer stated a lot would be learned from an RFP. Ms. Sullwold inquired whether the motion included having the NGF help cost out some of the Golf Commission's recommendations, to which Councilmember Gilmore responded in the affirmative. Councilmember Gilmore seconded the motion, which carried by unanimous voice vote - 5. Councilmember Gilmore thanked the Golf Commission and members of the golfing public for coming tonight; encouraged everyone to play more rounds of golf. ORAL COMMUNICATIONS, NON- AGENDA (08 -013) Ricardo Lopez and Diana Wong discussed the Homeowner and Bank Protection Act. COUNCIL REFERRALS None. COUNCIL COMMUNICATIONS (08 -014) Consideration of Mayor's nominations for appointment to the Youth Commission. Mayor Johnson nominated Lamant Carter, Vincent Margado and Bhaani Singh. (08 -015) Councilmember deHaan thanked Public Works for removing tires from the San Leandro Bay. ADJOURNMENT There being no further business, Mayor Johnson adjourned the Regular Meeting at 11:11 p.m. Regular Meeting 15 Alameda City Council January 2, 2008 Respectfully submitted, Lara Weisiger City Clerk The agenda for this meeting was posted in accordance with the Brown Act. Regular Meeting 16 Alameda City Council January 2, 2008