1999-02-16 Special and Regular CC Minutes50
MINUTES OF THE SPECIAL CITY COUNCIL MEETING
TUESDAY- -FEBURARY 16, 1999- -7:10 P.M.
Mayor Appezzato convened the Special Meeting at 7:10.
Roll Call - Present: Councilmembers Daysog, DeWitt, Johnson,
Kerr and Mayor Appezzato - 5.
Absent: None.
The Special Meeting was adjourned to Closed Session to consider:
(99-73) Conference with Legal Counsel - Anticipated Litigation;
Initiation of litigation, pursuant to Subdivision (c),
Section 54956.9; Number of potential cases: 1.
Following the Closed Session, the Mayor reconvened the Special
Meeting and announced that Council gave direction to Legal Counsel.
Adjournment
There being no further business before the City Council, Mayor
Appezzato adjourned the Special Meeting at 7:40 p.m.
Respectfully submitted,
e B Felsch,
City Clerk
The agenda for this meeting was posted in accordance with the Brown
Act.
Special Meeting
Alameda City Council
February 16, 1999
MINUTES OF THE REGULAR CITY COUNCIL MEETING
TUESDAY- - FEBRUARY 16, 1999- -7:30 P.M.
Mayor Appezzato convened the Regular Meeting at 8:00 p.m.
Councilmember DeWitt led the Pledge of Allegiance. Pastor Robert
Broekema, First Christian Reformed Church gave the Invocation.
ROLL CALL - Present: Councilmembers Daysog, DeWitt, Johnson,
Kerr and Mayor Appezzato - 5.
sent: None.
AGENDA CHANGES
(99 -74) Councilmember Johnson moved that Alameda Historical
Museum matter [paragraph no. 99 -84] be addressed first on the
Regular Agenda.
Councilmember DeWitt seconded the motion, which carried by
unanimous voice vote - 5.
PROCLAMATIONS, SPECIAL ORDERS OF THE D4Y AND ANNOUNCEMENTS
None.
Vice Mayor Daysog moved approval the Consent Calendar.
Councilmember DeWitt seconded the motion, which carried by
unanimous voice vote 5. [Items so enacted or adopted are
indicated by an asterisk preceding the paragraph number.]
( *99 -75) Minutes of the Special and Regular City Council Meetings
held on February 2, 1999. Approved.
( *99 -76) Recommendation to approve the Bureau of Electricity Out -
of -Town Travel Budget Supplement for Fiscal Year 1999 -2000.
Accepted,
( *99 -77) Recommendation to accept Quarterly Financial Report for
the period ending December 31, 1998, including midyear adjustments;
and
( *99 -77A) Recommendation to authorize two full -time positions, a
Management Analyst and an Intermediate Typist Clerk, for the
Housing Development Division. Accepted.
( *99 -78) Recommendation to accept Quarterly Investment Report for
Regular Meeting
Alameda City Council
February 16, 1999
ro
0 4
the period ending December 31, 1998. Accepted.
(*99-79) Recommendation to accept the work of McGuire & Hester for
the Maintenance Service Center Urban Runoff Control Project, No.
P.W. 06-98-15. Accepted.
(*99-80) Recommendation to accept the work of Gallagher & Burk,
Inc. for Repair and Resurfacing of Certain Streets, Phase 19, No.
P.W. 03-98-06. Accepted.
(*99-81) Resolution No. 1309, "Supporting the City and County of
San Francisco's Resolutions to Work with the Metropolitan
Transportation Commission (MTC), and CalTrans to Retain the Current
Transbay Transit Terminal as the Terminus for AC Transit Inter-City
Bus Service and Provide for Future Passenger Rail Service in the
Design of the Bay Bridge." Adopted.
(*99-82) Ordinance Approving and Authorizing the Execution of
Lease Agreement between GTE Mobilnet, as Lessee, and the City of
Alameda, as Lessor, for the Installation of a Telecommunication
Transmission Facility within the Chuck Corica Golf Complex.
Introduced.
(*99-83) Ratified bills in the amount of $3,925,584.62.
014
(99-84) Written Communication from the Alameda Historical Museum
requesting Council to consider a Mid-Year Budget Adjustment to
provide funding for rent for the month of June, 1999 and Fiscal
Year 1999-2000; and
(22m84A) Recommendation regarding request from the Alameda
Historical Museum for Council to consider a Mid-Year Adjustment to
provide funding for rent for June, 1999 and Fiscal Year 1999-2000.
Jane Felker, Library 2000, stated Library 2000 would like a new
main library; if Library 2000 succeeds, the Carnegie building would
house the Museum beautifully.
Bill Galli, Alameda Historical Museum Vicc, President, stated
storage costs would be more expensive than the Museum's current
rent; 1/3 of the Museum's collection belongs to the City; the
Museum and its supporters have contributed to the community
greatly; urged Council to vote for [staff report] Option 4 [reject
the mid-year request for June rent of $3,200 and appropriate money
in FY 1999-2000 for annual rent in the amount of $38,400 from
general fund reserves].
Herb Shelmadine, Alameda, stated the Museum does a fine job; the
Museum is a nice place to take out-of-town visitors.
Regular Meeting
Alameda City Council
February 16, 1999
Diane Coler -Dark, Alameda Historical Museum President, stated all
historical museums she contacted were city supported; cities
support museums because they contain the cities' histories;
foundations are not interested in supporting a particular city's
history; the City of Hayward funds their museum under the City's
promotional budget; inquired whether the Alameda Historical Museum
could be funded under the City's Park & Recreation Department in
the same fashion as the Meyers House; a Court Order precluded the
Museum from spending reserves; the Museum had to provide its own
operating and fundraising expenses; operating monies were scarce;
the majority of emergency money came from generous members; the
Museum has gone to that well and cannot go there again; to become
stable the Museum must expand fundraising and membership levels;
urged Council to accept staff Option 4.
Mayor Appezzato stated in honor of the Millennium, the U.S.
Conference of Mayors has requested cities to join in activities;
the goal is to challenge the community to enter the Millennium with
enthusiasm; that he would like the Alameda Historical Museum,
Library 2000, the Alamedans Rebuilding The Tower Committee, and the
Parade Committee to join in planning challenges for the community;
requested the City Manager to provide copies of the Millennium
Communities Handbook to saia organizations; inquired wether the
Museum would be willing to begin planning challenges for the
community, to which Ms. Colder -Dark responded in the affirmative.
Mayor Appezzato suggested the Museum have displays; further
inquired whether the Museum would consider being the possible focal
point where the group meets; stated that he needs a committee to
begin the planning how Alameda can enter the new Millennium with
the theme "Honor the Past, Imagine the Future ", and bring Council
a plan, in the middle of the year, to which Ms. Coler -Dark
responded it is a given.
Vice Mayor Daysog stated spending $6,000 or $38,000 is a paultry
sum to preserve and celebrate the City's identity; encouraged
Council to consider [staff report] Option 4.
Councilmember Johnson moved approval of [staff report] Option 4
[reject the mid -year request for June rent of $3,200 and
appropriate money in FY 1999 -2000 for annual rent in the amount of
$38,400 from general fund reserves].
Vice Mayor Daysog seconded the motion.
Under discussion, Councilmember DeWitt stated that he has always
supported the Alameda Historical Museum; cities need museums; the
budget for the Museum is $63,000 per year; the City is being
requested to pay only the rent; that he supports the
recommendation.
Regular Meeting
Alameda City Council
February 16, 1999
54
Councilmember Kerr stated the Alameda Historical Museum undertakes
worthwhile goals, e.g., expansion of its role as an art center,
without consulting the people they expect to pay their rent; there
are other groups which would like to be, and are, working to become
the City's Cultural Center for the Arts; paying the rent endorses
the Alameda Historical Museum and leaves other art groups out in
the cold; none of the other groups, except the Civic Light Opera,
have asked for [financial] help; that she would be willing to
support paying rent for one more month to get the Museum through
this fiscal year, however, she does not support including payment
of the Museum's rent in the next fiscal year.
Councilmember DeWitt stated that during 1999, the Island Alliance,
high school art students, and Alameda women artists will have
exhibits at the Museum; the Museum has city -wide participation.
Mayor Appezzato stated a museum is vital to any community; the
first place any mayor takes a visitor is a city's museum; museums
express a community's art and culture, recognize history, and teach
newcomers and children about the community; a study presented at
the U.S. Conference of Mayors showed that children involved with
the arts are less prone to get into trouble; that he challenges the
Alameda Historical Museum to embrace all art groups in the
community; stated the photographic society is displaying photos in
City Hall; there should be more artwork displayed in public
buildings, e.g. second floor foyer at City Hall; the Museum is the
heart and soul of the community and reminds the young about their
past; the good of Alameda can be well represented in the Alameda
Historical Museum.
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.
(99 -85) Public Hearing to consider the cost of nuisance abatement
on property at 617 -B Pacific Avenue, Alameda, California, and
impose a special assessment on the property; and
(99 -85A) Resolution No. 13094, "Confirming the Costs of Abatement
on Property at 617 -B Pacific Avenue, Alameda, California, and
Imposing a Special Assessment on the Property." Adopted.
Mayor Appezzato opened the Public Hearing.
There being no speakers, the Mayor closed the public portion of the
Hearing.
Councilmember Kerr moved adoption of the Resolution.
Vice Mayor Daysog seconded the motion, which carried by unanimous
voice vote - 5.
Regular Meeting
Alameda City Council
February 16, 1999
55
(99-86) Consideration to award the Alameda/Oakland Ferry Service
Contract to Hornblower Marine Services. As an Alternate Option,
Council may decide to: reject all Proposals and direct staff to
enter into Open Market Negotiations with all three Proposers and
Harbor Bay Maritime to operate both the East and West End Services
and the West End Service only.
John Waggoner, Hornblower Marine Services (HMS) President,
submitted letters to Council; stated at the previous [Council]
Meeting [January 19, 1999] there were statements that HMS is
opposed to organized representation of labor and will pay wages
below the prevailing wage--this is not the truth; HMS has had a
good working relation with Local #399, Operating Engineers, which
represents deckhands and oilers on a HMS vessel; HMS is currently
negotiating with American Maritime Officers; HMS is very concerned
with the preservation of jobs and has offered priority hiring to
B&G employees on the Alameda/Oakland Ferry Service (AOFS); HMS has
met with Masters, Mates & Pilots (MMP), the union which currently
represents AOFS employees; Captain Raymond Shipway, MMP, is willing
to answer questions; HMS's legal counsel has informed him that if
over 50% of the employees hired are current B&G employees
represented by MMP, HMS will have a successor employer relation;
after being awarded the contract and hiring the appropriate number
of crew members, HMS will negotiate in good faith with the union to
reach a collective bargaining agreement; HMS has provided a letter
which states HMS is willing to pay prevailing wages and benefits;
HMS used the current B&G wages when preparing their budget; there
has been discussion about whether HMS back-up vessels would be
sufficient; HMS chartered the Flyer, a 92-foot, 149-passenger, 22-
knot vessel; it is not true that this vessel would be leased only
in the summer; the vessel has been leased and is undergoing
interior modifications in Hood River, Oregon; said vessel will be
delivered here [Alameda] before HMS begins operations; HMS is still
negotiating on a vessel similar to the Ohlone Spirit, a 212
passenger catamaran, operating at 22 knots; in response to concerns
regarding passenger capacity, HMS entered into a charter agreement
with Catalina Cruises to charter the Catalina Monarch, an 800-
passenger, 18-knot ferry; there has been concern that a vessel
similar to the Ohlone Spirit would be insufficient capacity; City
records indicate that only 7 times last year, all of which were
weekends, the passenger loads exceeded back-up vessel capacity of
361 passengers; the probability of the Encinal being down during
one of these days is remote; however, HMS has a contingency plan,
a letter from Tom Escher, Red & White (R&W) President, states R&W
would be glad to provide any backup needed; additionally, in the
event of a disaster or strike, HMS through Hornblower Dining
Yachts, has access to the largest passenger vessels in the Bay: the
California Hornblower, which carries 1000 passengers; the Monte
Carlo, which carries 600 passengers; and the Empress which carries
600 passengers; with three ferry boats and the three backup dinner
boats, HMS could transport 2,911 passengers per hour; at this
Regular Meeting
Alameda City Council
February 16, 1999
point, infrastructure, not the number of vessels, becomes a
problem, e.g. boarding ramps, parking; R&W is also available to
provide any backup capacity; with all this, HMS has more capacity
than anyone on the Bay; there have been rumors HMS has never
provided ferry service; HMS operates a ferry for the City of
Jacksonville which runs more trips than the AOFS; said service runs
daily, non-stop service from 6:00 a.m. until 10:15 p.m. with
vessels departing every 15 minutes; it runs 66 trips per day, 365
days per year which is 2,490 trips annually; the staff survey
revealed on-time departures are priority for riders; last year, the
Jacksonville run was not late and/or did not miss a single run on
363 days of the year; following a mechanical failure one morning,
it took two hours to get the backup vessel in place; also, due to
fog one morning, the ferry was not operative for three hours; only
20 trips out of 2,400 were late or missed which is less than 1 in
every 1,000 trips; said record is hard to compete with; the City of
Jacksonville provided a letter endorsing HMS which states: "It is
with pleasure that I recommend your company to any company seeking
marine management services. When the City of Jacksonville chose
HMS to operate the St. John's River Ferry Service, we had high
expectations of your ability to improve the efficiency of the
service, generate increased revenues through marketing, and set new
standards for customer service. The evidence that we have to date
justifies our choice. The Ferry is running great". Mr. Waggoner
further stated Pier 39 access is a big issue; in the RFP,
Fisherman's Wharf war defined as Pier 33 to Marina Green; HMS
submitted Pier 33 [landing]; to address this concern, HMS entered
into an agreement with R&W; negotiations are currently underway
which will provide access to Pier 43 1/2 which is located in the
heart of Fisherman's Wharf; regarding safety issues, HMS has made
a name for itself by setting the standard for safety; a letter from
Eric Christensen [of the U.S. Coast Guard] explains that HMS's
tremendous growth is due to their commitment to safety and the
professionalism HMS brings to the marine community; a letter from
Jennifer Bell, Executive Vice President of Aon Risk Services, which
insured more passenger vessels than anyone else in the nation,
states: "HMS is the preeminent marine operator of passenger vessels
in the nation". Mr Waggoner outlined HMS's actions; stated HMS: 1)
responded to the City's RFP with a very competitive response; 2)
chartered a [backup] vessel, the Flyer; 3) reviewed 5 other backup
vessels and has a lease option for one; 4) received approval from
the bank to purchase a second backup vessel; 5) obtained a
performance bond for $1 Million; 6) obtained landing rights to Pier
43 1/2; 7) obtained backup vessels from R&W which are operated by
organized labor; 8) met with representatives from MMP and assured
them of preferential hiring; 9) is committed to prevailing wages
and benefits; 10) filed a Public Utilities Commission permit which
will be granted on March 17th; and 11) spent a considerable amount
of time and energy considering these issues and working with [City]
staff. Mr. Waggoner requested Council give HMS a chance; the same
chance that B&G was given 5 years ago; promised HMS would not let
Regular Meeting
Alameda City Council
February 16, 1999
57
the City down.
In response to Councilmember Kerr vs inquiry regarding when the
Jacksonville Ferry Service was started, Mr. Waggoner stated July,
1997.
Councilmember Kerr stated HMS and B&G have similar crew cost,
however HMS's administration costs are lower; inquired reason for
low administration cost, to which Mr. Waggoner responded HMS built
the exact wages B&G currently pays [into HMS's Proposal]; stated
HMS cbtained a copy of the current contract from the union an
calculated the same benefits, e.g. pension, medical; since Roger
Murphy was a founder of B&G, he [Murphy] had that information at
his fingertips; one of the reasons HMS has been so successful
throughout the nation is the economies of scale in management; the
Proposal shows Roger Murphy will be the General Manager, Sandra
Stuart will be Controller and the person in charge of marketing
will be Lisa; only 25% of Sandra's and Lisa's time will be
allocated to this project and the remainder of their time will be
spent on other projects; HMS has over 200 marine professionals and
uses them on various projects as needed; the only allocation [of
time] is what is used on that job; rather than 3 full-time staff
members, there is 1 full time and 2 quarter-time employees; there
are other in-house resources; it is simply good management.
Councilmember Kerr stated Harbor Bay Maritime lowered its
administration costs; HMS's management costs are similar to Harbor
Bay Maritime.
Mayor Appezzato stated HMS's management fee is $1/4 Million less
than B&G [management costs]; both R&W and HMS have the same
management fee.
Roger Murphy, HMS, stated that he has been in the maritime business
since 1959; he started B&G Fleet in 1978; B&G was under his contrel
until the Loma Prieta earthquake; during which time, there were
quite a few ferry projects; when the Aircraft Carrier Enterprise
was in Hunters Point, there were extensive ferry runs--sometimes 50
trips a day from Alameda Naval Air Station to Hunters Point for
about 50 months; B&G also ran a Berkeley Ferry Service and special
services for Golden Gate Ferry District; after the earthquake, B&G
took over AOFS; that he was responsible for all of its [AOFS's]
operations until March/April 1997; currently, he is the President
of Passenger Vessel Association which is a trade organization or
almost 500 members responsible for carrying over 200 million people
last year.
In response to Mayor Appezzato's inquiry regarding why Mr. Murphy
left B&G, Mr. Murphy responded that he wished he could answer;
loves the business.
Regular Meeting
Alameda City Council
February 16, 1999
08
Mayor Appezzato stated everyone owes former Mayor Chuck Corica a
thank you; after the earthquake, he [Corica] put the ferry service
into operation; also, former Mayor Bill Withrow's Council and this
Council came up with subsidies to keep ferry boats operating, which
is not easy; Alameda, the Port of Oakland and San Francisco have
managed to keep ferry boats operating at huge subsidy to the tax
payers; tomorrow, there will be a conference at San Francisco City
Hall on ferries in the Bay; also Senator Don Perata will carry a
Bill forward; everyone owes a debt of thanks to the people who had
the foresight and tenacity to have a ferry service in 1989/90; the
City supports ferry service every step of the way.
Steve Hanson, Port of Oakland, stated the Port is 50% partner in
the ferry operation; after the earthquake, R&W dumped 10,000 people
on Jack London Square; until the earthquake, the Port was not
involved; Port staff and City of Alameda staff worked together on
the selection process; Port staff found HMS to be the most
responsive bidder and concurs with the City staff's recommendation
to award the contract to HMS; said recommendation will be presented
to the Port of Oakland Board on March 2nd; Port staff has no
additional subsidy and opposes any fare increase at this time.
In response to Mayor Appezzato s inquiry regarding whethe_ the Port
would support the City's decision, Mr. Hanson stated the Contract
cannot move forward if the Port does not concur [with the City of
Alameda's decision].
Kelly Kearney, Alameda, stated that she was disturbed to hear about
the disparity between the subsidies for the West End and East End
ferry services; the City spends $9.17 per passenger for the Harbor
Bay Ferry Service and $1.25 for AOFS; it was discouraging that the
City had not been in contact with the Port of Oakland, San
Francisco or Transit Authorities at the Council Meeting one month
ago [January 19, 1999]; the RFP was thrown together with full
knowledge that the current provider was operating at a loss of
$150,000 per year; it seemed the City waited until the last minute;
a letter [from Public Works dated February 12, 1999] states the
City can enter into negotiations for docking rights; however, the
City cannot justify raising subsidy for the existing carrier;
[potential] start up problems are not similar to B&G start up
problems because HMS is not a ferry service provider; when B&G
performs vessels maintenance, riders are informed ahead of time;
that she wrote 15 letters: 7 to the Mayor, members of the City
Council, City Manager, and Assistant City Manager; 8 to the Port of
Oakland Members and Director Foster; she also sent e-mails to
[Oakland] Mayor Jerry Brown, [San Francisco] Mayor Willie Brown and
Senator Don Perata; that she only received 2 responses.
Kevin Kearney, City Auditor, stated that he is disturbed over the
process; inquired about the cost involved with staff negotiating
the landing at Fisherman's Wharf; the existing service has the
Regular Meeting
Alameda City Council
February 16, 1999
59
premiere landing at Pier 39; the staff letter states "both B&G and
R&W stated they would consider granting [Pier 39] dock rights to
the City"; inquired about the dollar impact of said docking rights;
stated before Council can make a decision, said cost should be
compared to the $291,000 [subsidy requested by B&G]; Council should
have information on hard dollar cost; there is also cost involved
with riders not getting what they get today.
Carolyn Horgan, Blue & Gold (B&G), yielded her time.
Pip Ellis, B&G, stated that ctaff, Council and riders agree B&G has
provided a fine level of service since 1991; Council has two
options: 1) to accept HMS's Proposal, or 2) reject all Proposals
and enter into negotiation with the proposers; HMS's Proposal
should be re-analyzed; ferry service is underfunded; B&G shows a
$291,000 [funding] deficit; R&W's Proposal shows a $425,000 annual
operating deficit; the renegotiated HMS budget shows an operating
deficit of $20,000 annually; all three proposals show a deficit;
HMS's budget is still not accurate; HMS estimates $205,000 more in
revenue than B&G; $140,000 of HMS's revenue comes from snack bar
concession sales which is not realistic; there is a $65,000
difference in crew costs [between HMS and B&G], HMS plans to offer
more service and more runs at less cost with the same conditions of
wages and benefits--that is not possible; the reason HMS shows less
expense is because they are proposing to man the vessels with fewer
crew members; 3 crew members is prudent; the original HMS budget
showed $124,000 less [than B&G] in maintenance costs; it is not
clear where additional docking fees are included in HMS's budget;
B&G's general administrative line of $442,000 includes a $100,000
marketing budget; said marketing budget is not clear in the budgets
of HMS and R&W; B&G's budget is even; profit was included in B&G's
administration costs; since 1991, staff has struggled to keep this
service operating; there is difficultly in marketing; increased
ridership is part of a long-term solution; the [HMS] labor
situation is an unresolv.c.d issue; HMS has agreed to unionize this
portion of their operation, however, HMS will have difficulty using
its other boats in backup situations because union personnel cannot
be shifted into non-union lines of service; there will be a cost
inefficiency and labor unrest; historically, HMS has not been a
union friendly company; the RFP called for a minimum of 2 years of
service; HMS has less than the 2-year experierr-c. rlinimum required
in the RFP; the Jacksonville ferry service has only been in service
18 months, HMS has operated the New York ferry, which has run
sporadically since its inception, for less than 18 months; staff
has interpreted some of HMS's manager's experience as sufficient to
qualify for 2-years operating experience; Roger Murphy is an
excellent manager and resource for setting up a ferry service,
however, one man does not make a cohesiva team to provide ferry
service; HMS runs an excellent dinner cruise company, but does not
have the extensive experience of running ferries; the Staff Report
conceded there will be inherent start up problems; HMS does not
Regular Meeting
Alameda City Council
February 16, 1999
60
have the same maintenance or PUC experience as B&G; in the RFP
process, HMS matched B&G and was scored a full 10 points for
experience; if experience points were revisited, B&G would match or
exceed HMS's [overall] points; HMS received a total of 99 points;
B&G received 94 points; R&W received 78 points. Ms. Ellis further
stated B&G central docking is the best; docking shifts could cause
a loss in mid-day and weekend ridership, which is essential to
sustain the commute service; HMS is still negotiating for a second
backup boat; even with 3 vessels, the Encinal and two backups,
HMS's backup capacity is still insufficient; if any vessel breaks
down or goes down for maintenance, HMS will look to R&W or B&G for
backup; B&G has told City staff they would provide support in the
event of an emergency; however, said service would be more
efficient if B&G has the Contract; there is a shortfall [in
funding]; urged the Council to review said shortfall with the
experienced carrier--B&G; further stated the funding shortfall
cannot be solved tonight; B&G has offered to extend service for 6
months beyond the Contract deadline of March 28th at the existing
subsidy; B&G is committed to extend service for 4 weeks with no
change in subsidy; however, if negotiations go beyond 1 month and
less than 6 months, B&G would ask for the additional subsidy of
$585 per day; if Council pursues Option 2 which is to open the
process back up, B&G would offer to maintain the current fare,
schedule and subsidy rate for 6 months from the Contract deadline;
during the 6 month period, B&G would help craft a short-term
transit plan needed to steer the service beyond its marginal
status; the City of Vallejo, which is slightly different because
they operate their own transit system, put together a plan and was
able access $15 Million of funds from Proposition 116; Vallejo
purchased brand new high-tech vessels at $7.5 Million each and
increased ridership by 400%; those dramatic changes are needed [in
Alameda]; operating and capital monies are needed; B&G partnered
with the City to renovate and re-power the Encinal, which is a fine
boat, to put it into service; B&G can partner with the City to have
the quantum leap in service that the East Bay needs; there will be
CalTrans mitigation funds from the Bay Bridge retrofit which B&G
will help the City access; B&G will go to State and federal
representatives to find discretionary dollars; the Metropolitan
Transportation Commission [MTC] has a program called Transportation
for Livable Communities--those monies can be had in a competitive
grant process; a dynamic marketing scheme needs to be implemented;
Ernest Sanchez has been involved with marketing since 1991; he
needs a budget and direction; requested Council to look long and
hard at B&G which has provided good service; urged Council to use
time [6 months] to find a long-term solution.
Mayor Appezzato inquired whether Proposition 116 was a local
initiative, to which Ms. Ellis responded it was a State-wide bond,
called "Blueprint for Transportation", which was passed in 1990; $30
Million of ferry monies were involved--all of which might not have
been spent.
Regular Meeting
Alameda City Council
February 16, 1999
Mayor Appezzato thanked Ms. Ellis for her comments regarding staff;
stated staff has done an outstanding job; rhetorically asked who is
to blame ?; further stated it makes one wonder why a RFP was done- -
the Contract just should have been awarded to B &G; if the City
opens negotiations and still selects HMS, would Council go through
same discussions again; HMS put up a $1 Million bond; inquired
whether B &G captured Contract from R &W
Ms. Ellis responded the best proposer won in 1991; stated that she
is asking Council who the best proposer is now.
In response to Councilmember Kerr's inquiry regarding Vallejo
forming a transit district, Ms. Ellis stated Vallejo has a transit
district because they run City buses; ferries were blended into the
existing transit district.
Councilmember Kerr further inquired whether Vallejo could access
sales tax, to which Ms. Ellis responded in the affirmative; stated
Vallejo can access Transportation Development Act (TDA), Article 4
monies which is a 1/4 cent of sales tax earmarked for
transportation; without a City agency, the money goes to regional
agencies.
Ron Duckhorn, B &G President, stated the Council has two options;
the most sensible option is to extend B &G's Contract for 6 months
while funding options are explored; the Blue Ribbon Task Force is
in the process of unveiling a new study with issues relative to
funding; to muddy the waters prior to knowing what will be learned
from said process is getting the cart before the horse; everyone is
on the verge of discovering the future of water transit on the Bay;
B &G is willing to extend its service for 6 months which gives time
to resolve the funding issue.
In response to Mayor Appezzato's inquiry regarding whether Mr.
Duckhorn is expecting the Contract will be awarded to B &G in 6
months, Mr. Duckhorn stated that he is not expecting anything;
everyone will be smarter in 6 months.
Mayor Appezzato further inquired what Mr. Duckhorn envisions for
the next 6 months, to which Mr. Duckhorn responded the focus would
be on three areas: the fare issue, the subsidy issue and staff
negotiating hard with existing and proposed operators; stated the
funding issue has had a blanket over it; there were no points in
the RFP for funding.
Mayor Appezzato stated all mass transit is taxpayer subsidized; any
funding comes from the taxpayers; grants are from the taxpayers; no
matter where funding comes from, it is the taxpayers; that he
supports ferry riders being subsidized; however, no one should
forget the money comes from the taxpayers; the 75,000 residents of
the City own the ferry services, not just the riders.
Regular Meeting
Alameda City Council
February 16, 1999
In response to Councilmember DeWitt's inquiry regarding concrete
funding sources, Mr. Duckhorn stated there is nothing solid; there
are many options and much discussion; as part of the Blue Ribbon
Task Force, he has reviewed a two -page document with sources of
funding; the funding issue has to be resolved; the City and Port
cannot jump from provider to provider with a frozen subsidy; the
subsidy or fares have to increase; staff has to choose a competent
and cost effective operator.
Ms. Ellis requested to discuss funding sources; stated there are
avenues for increase revenues from State and federal sources; there
has been an increase in the surplus of the federal gas tax which
will provide money to regional transit agencies; CalTrans will have
mitigation funds from the Bay Bridge retrofit project; MTC has
bridge toll mitigation funds -- currently, 90% goes to the South
District ferries and a discretionary 10% of over $100,000 per year
is available; Transportation for Livable Communities money is
available; the State legislature has a surplus - -some of which will
go to transportation through California Transportation Commission;
in order to access some funds, the City of Vallejo informed her a
Ferry Transportation Plan is needed.
Councilmember DeWitt requested the City Manager to explain whether
any of the funds outlined by Ms. Ellis are viable for the City, to
which the City Manager stated not to his knowledge.
The Public Works Director stated funding sources suggested [by Ms.
Ellis] are not available for operation and are not available at
this time; in order to access funds which the City of Vallejo
accessed, the City would need to be its own transit district; the
City would have to secede from A.C. Transit to establish a transit
district; solutions being brought up are not available today; the
Public Works Department pursues any grants which can be obtained.
In response to Councilmember Kerr's inquiry regarding whether the
City can only be a member of one transit district, the Public Works
Director stated the City cannot operate its own transit district
while remaining a member of A.C. Transit.
Councilmember Johnson inquired whether a Ferry Transportation Plan
would be useful, to which the Public Works Director responded a
Plan would be needed if the City were its own transit district;
requested the Deputy Public Works Director to further explain.
Deputy Public Works Director Cheri Sheets stated a short -range
Transportation Plan would help if the City had its own Transit
District; it is required that an agency be its own transit district
[to have a Plan]; a study was conducted to determine whether the
City should become its own Transit District; it was determined that
the City would have to annex from the A.C. Transit District; the
option to give the ferry service to A.C. Transit was also reviewed-
Regular Meeting
Alameda City Council
February 16, 1999
-it did not seem viable and A.C. Transit was not interested.
In response to Vice Mayor Daysog's inquiry regarding the Blue
Ribbon Task Force's ability to access funds and how new State
legislation plays into ferry service funding, the Deputy Public
Works Director stated MTC is responsible for regional ferry
planning for the Bay; Senator Lee came up with a bill which
established the [Blue Ribbon Task Force] Committee to determine the
future of ferry service and how funding can be found; the larger,
broader scope of ferry services on the Bay is being reviewed.
Councilmember Kerr inquired whether the Bay-wide system involves
forming a ferry transit district, to which Deputy Public Works
Director stated one of the proposals is to for a ferry district;
however, there are complications, e.g., the Golden Gate Ferry
Transit District was formed under federal funding regulations and
might not be able to be absorbed into a district; another issue is
the various agencies power.
In response to Councilmember Kerr's inquiry regarding said
district's formation requiring Alameda to secede from A.C. Transit,
the Deputy Public Works Director stated formation would require
legislation which would be a part of the Blue Ribbon Task Force.
Councilmember Kerr stated a letter from Harbor Bay Maritime states
they are willing to discuss a merger of the two services; inquired
how Mr. Duckhorn feels about said proposal, to which Mr. Duckhorn
responded possible merger is part of Option 2; stated
theoretically, it makes sense; two companies are serving the same
area; although operating costs would not change, there must be
duplications in management; it might be cost effective to collapse
the two into one Contract; B&G would be willing to explore the
benefits and how merging would work.
Mayor Appezzato stated that he presumes HMS would feel the same, to
which Mr. Waggoner [HMS President] stated after being awarded the
Contract, HMS would be willing to review said matter.
Mayor Appezzato stated that he sits on the Blue Ribbon Task Force;
tomorrow in San Francisco, there will be a meeting and, hopefully,
an announcement regarding progress; that he was appointed to
represent the 14 cities in Alameda County on the MTC; that he hopes
to be a help to mass transit riders and workers; the Blue Ribbon
Task Force believes gridlock is here to stay unless something is
done; the water has unlimited potential; the Task Force is
reviewing: interlocking cities, fast ferry boats, buses to get
people to and from ferries, and on-time, cost-effective ferry
service; Senator Perata will be working on ferry service; the age
old question is the funding; many believe it is cheaper to create
a ferry transit system because more freeways cannot be built and
extending BART is expensive.
Regular Meeting
Alameda City Council
February 16, 1999
4
Nick Melas, B &G, stated that he has been employed with B &G since
1984 and currently works on AOFS; that he will not work for HMS
even if he is offered a position; there will be wage disparities;
that he worked for Roger Murphy before - -there were never the same
wages for employees who worked for the company the same number of
years; that he has a four day work week with Friday, Saturday and
Sunday off; however, he would work [for B &G] on Friday, Saturday,
Sunday and Monday and have terrible days off to keep the same
benefits, wages, and area standards that he currently enjoys; any
agreements with HMS and the union were not brought to him or other
employees; thanked the current B &G administration for presenting a
fair Proposal and I.B.U. for supporting them [B &G employees] in
solidarity.
Mayor Appezzato stated the City of Alameda is a prevailing wage
city; the City has 11 unions with Contracts; there was one major
labor conflict which was resolved 4 weeks ago; Alameda is a union
city and will not tolerate labor abuses by anyone.
Mr. Melas responded that he appreciates the Mayor's sentiment;
however, there have been abuses in the past when the ferry service
was operating.
* * *
Mayor Appezzato called a recess at 9:37 p.m. and reconvened the
Regular Meeting at 9:45 p.m.
* * *
Ray Shipway, Masters Mates & Pilots (MMP), stated collectively, B &G
MMP members employed on the AOFS would like to stay B &G employees;
there have been no agreements between MMP or anyone else with the
exception of the on -going collective bargaining agreements on San
Francisco Bay at this time.
In response to Mayor Appezzato's inquiry regarding whether Mr.
Shipway would represent union members at HMS if the Contract were
awarded to HMS, Mr. Shipway responded in the affirmative.
Matthew Ballin, Alameda, stated B &G has provi9cr exemplary service
in day -to -day service and emergencies, e.g. BART strike; if ferry
service is expanding, a larger administration should be in place.
Mayor Appezzato stated there is really no question about the
service B &G has provided.
Marina Secchitano, I.B.U., stated modifications to the RFP were
inappropriate; HMS's rezponse to experience [requirement] was not
examined until I.B.U. raised questions; allowing the manager to
carry the ball for the company [regarding experience] is not the
Regular Meeting
Alameda City Council
February 16, 1999
65
way the RFP was setup; inquired how the experience requirement
would be impacted, if the manager [Murphy] left the company [HMS];
stated when R&W operated the ferry service, there were wage freezes
which were not brought to Council; HMS has promised they will
provide more service due to marketing; the City, Ernest Sanchez,
R&W and B&G have been involved in marketing and have not increased
ridership; if the question of wages was not raised, the employer
[HMS] would not have paid [prevailing] wages; [Dan McSweeney
yielded his time]; when an employer has manning above U.S. Coast
Guard requirements, additional costs are suffered because safety is
elemental; HMS claimed they will increase ridership, however, the
vessel capacity is 149 passengers; inquired which boats would be
used for increased ridership; stated HMS refused to participate in
operating Labor Day weekend Treasure Island ferry runs because
boats were required to be union operated, now, HMS's [non-union]
boats will be available for backup, however, will they use union
crews?; there is not enough funding available for the ferry
service; there is discussion about changes in ferry service
[expansion]; however, the people operating the service [HMS] are
not going to measure up to current provider [B&G]; if the Contract
is awarded to HMS, next time [the City puts out RFP] the Contract
will go to company which underbids HMS; after operating the
service, HMS will have same e-penditures as B&G; a docu-lent dated
January 29th explained HMS reworked their numbers; [Victoria Farr
yielded her time]; B&G did not receive any points for backup
vessels because they have a 16-knot vessel; stated the Monarch is
a 15-knot vessel; legal counsel informed her there is no guarantee
who the union will be; HMS will be required to have an election
with the National Labor Board; the ferry service HMS currently
operates in Jacksonville runs the same distance as Pier 33 to Pier
43, inquired about why offers which seek less than the maximum
subsidy would be given priority if AOFS and Harbor Bay Maritime are
combined; [Felix Thieirt yielded his time]; if ferry services are
combined, staff is urging companies to say they do not need the
entire subsidy; staff has stated subsidy increases will not be
acceptable under any conditions; inquired if funds were identified,
whether the City would refuse to take it; further stated I.B.U. is
committed to finding funding sources; the City should demand that
current crews be hired; vacation and sick leave will not be carried
over to the new employer; elderly or disabled people will not have
a leisurely stroll [to Pier 39] if HMS lands at Pier 33 or Pier 43;
the best case would be for B&G to keep the Contract; [Roxanne Mead
yielded her time]; the process has seemed slanted, everything has
been massaged to make HMS look great; stated if Council selects
Option 2, providers are encouraged to bid less than the subsidy
which should be reviewed; if Council does not select Option 2,
HMS's responsiveness [to RFP] should be reviewed, e.g, points for
carrier experience and backup vessels.
In response to Vice Mayor Daysog's inquiry regarding deficiencies
in the RFP being addressed before companies responded to ot, Ms.
Regular Meeting
Alameda City Council
February 16, 1999
66
Secchitano stated HMS's two-years of experience was not an issue
until staff recommended the Contract be awarded to HMS; it was not
disclosed that staff would interpret "carrier experience" as
something other than the company's experience.
In response to Ms. Secchitano's comments regarding selection of the
lowest bidder, Mayor Appezzato stated the City uses the RFP process
because of its fiduciary responsibility to the citizens of Alameda.
Al Lewis, B&G, stated that he has worked for B&G for 13 years; the
RFP process impacts people's lives; that he would work for HMS
because of Roger Murphy; the [current] provider [B&G] should be
kept; urged Council to consider B&G employees.
Robert Irminger, I.B.U., stated that he is a B&G employee; urged
Council to accept B&G's offer to extend service for the next 6
months; stated said time will allow Council to review HMS's
qualifications; requested Council to insist B&G employees be hired
by whichever company is awarded to Contract; further stated that he
has concerns regarding HMS's relations with unions; there is more
of a possibility for labor problems if the Contract is awarded to
HMS.
Charles Ward, Alameda, stated HMS won the RFP through a sealed bid
[process]; B&G is now trying to come in the back door by explaining
they will come up with different funding sources; said funding
should have been included in the first bid [submitted by B&G]; the
Council should ensure jobs are guaranteed and possibly have HMS
grandfather vacation and sick leave; the union would be stabbing
itself in the back if it did not work with HMS; unions might have
the opportunity to make non-union divisions of HMS unionized; HMS's
marketing skills might exceed other companies--they do an excellent
job marketing.
John Rogers, Alameda, stated that he previously worked for B&G;
Roger Murphy [HMS Manager] has never been anti-union; many people
present are in the union because of Mr. Murphy; competition is good
for the [ferry service] industry; the people of Alameda could not
pick a better person than Roger Murphy to run a ferry service; AOFS
is what it is today because of Roger Murphy.
Tom Palsak, Alameda, stated the City Council and staff spent time
establishing the RFP and selecting HMS; there is no reason the
Contract should not be awarded [to HMS]; at the [January 19, 1999]
Council meeting, there were threats that HMS would not be able to
dock in certain areas; another company should be given a chance to
run the ferry; more than one provider is needed in the Bay Area;
urged Council to award the Contract to HMS.
Carl Friedrich stated HMS has exaggerated many things; HMS defeated
MMP in an election; HMS has agreed to hire 50% [B&G employees]
Regular Meeting -
Alameda City Council
February 16, 1999
67
which would be an easy percent to defeat in an election; HMS does
not pay prevailing wages now; Roger [Murphy] did not pay prevailing
wages when he operated B&G; urged Council to take 6 months to
review the matter.
In response to Mayor Appezzato's inquiry regarding whether
companies working for the City must pay prevailing wages, the
Acting City Attorney responded in the affirmative.
Mayor Appezzato inquired whether unions would take the matter to
court if there is an unfair labor practice, to which Mr. Friedrich
responded the matter was legal--the National Labor Relations Board
ruled in favor of HMS.
Susan Lewter, Alameda, stated Update No. 3 [from Public Works
Director dated February 12, 1999] reads like a marketing flyer for
HMS; said letter states "draft proposal from B&G increases fares by
20%"; B&G did not commit to fare increases--a proposal is simply a
proposal; letter further states "there was a 20% decrease in
weekend ridership for 1998"; that she believes El Nino was a
greater deterrent than the $0.50 fare increase; HMS's experience
pales in comparison to B&G years of experience; riders are not
concerned regarding captain and crew attire; riders main concern is
safely getting across the Bay; that she believes the RFP process
was biased; requested the Council to begin the process over.
Jackie Pasquali yielded her time.
W. Graham Claytor, Alameda, submitted letters handed out on the
ferry; stated B&G distributed a document outlining their position,
therefore many ferry riders will take the same position as B&G;
this is a bidding process; if the City of Alameda wants to get fair
and competitive bids from other tenderers, the rules must be clear
up-front; putting together a bid costs a lot of money; the process
was started and should be followed through with; all other issues
are simply the losing bidder looking for ways to offer the Council
bait in order to get back into it [being considered]; there is a
low bidder [HMS] and the other company [B&G] is trying to overturn
the bidding process; B&G has provided excellent service; B&G
started with three boats and everyone questioned what the company
would be able to do; when R&W was purchased, everything collapsed;
B&G service deteriorated when Roger Murphy left and went to work
for HMS; if Roger Murphy says there will be backup boats and
service will run on time, he [Mr. Claytor] believes him [Mr.
Murphy]; Mr. Murphy managed to provide the ferry service for 7
years under incredible circumstances; there were maybe only 3
missed runs.
Patrick Fiammetta, Alameda yielded his time.
Herb Shelmadine, Alameda, stated that he has 50 years experience in
Regular Meeting
Alameda City Council
February 16, 1999
the marine industry; maintenance is very important and should be
focused on daily; B&G has the shop and mechanics which maintain its
boats; B&G's maintenance is the reason they operate an excellent
service; boats must slow down traveling up the estuary; whether HMS
will arrive 2 or 3 minutes earlier is not important; track record
means a lot.
Sandra Stuart, HMS yielded her time.
Red Wetherill, Alameda, commended the Mayor for participating in
regional transit issues; commended Council for voting to delay the
matter in January; stated the issue should be reviewed regionally;
expansion and strengthening of ferry service should be the goal;
Council should replace this flawed selection process and negotiate
with all qualified proposers.
John Gatewood stated speakers have called this a bid process; the
first letter received from staff in December stated: "what is the
RFP process? A RFP is not a bid. Unlike the bid process, the RFP
process allows the City to incorporate various evaluation criteria
that emphasize passengers' needs and concerns"; this is not a
closed bid; HMS had the opportunity to resubmit its Proposal;
inquired whether other carriers were given the same opportunity;
stated is does not seem fair to provide only one proposer the
opportunity to resubmit; the broader issue is increased ridership;
selecting a carrier with less capacity seems to be going backwards;
inquired whether additional funding could be generated from selling
advertisements on the ferry; stated there should be a coordinated
marketing campaign directed at BART riders, e.g. posters at
stations and on trains; when the Encinal was brought on-line, it
was stated, if 1% of BART riders rode the ferry once a week, the
number of boats and runs could be increased.
Melissa Parlee, Alameda, stated if marketed effectively, ferry
service could expand; there is increased need for this convenient,
reliable form of tran=portation; BART is often delayed or has no
parking; bus fares just went up; there is traffic on the Bay
Bridge; with the Bay Bridge retrofit approaching, things will get
worse; if the experienced service [B&G] is used, commuters could be
converted to happy ferry riders; putting the service in the hands
of people who have no experience running a ferry in this Bay [HMS]
could jeopardize the future of ferry service; a nice business plan
with neat numbers does not get people to work in the morning; means
of gathering rider input is que5tionable; Ernest Sanchez only spoke
to four passengers; the Public Works Director's discussions on the
dock did not involve many riders; requested Council to vote against
HMS and negotiate with B&G; inquired why HMS was eligible with less
than the required 2-years experience; further inquired why HMS and
B&G were awarded the same points for experience.
The Public Works Director stated the City viewed HMS's experience
Regular Meeting
Alameda City Council
February 16, 1999
not only as a carrier, but considered the operator, Roger Murphy
has over 5 years experience; based on that alone, HMS would have
qualified under the 5 year requirement; experience was modified
from 5 years to 2 years because 5 years was inconsistent with the
two previous RFPs; the addendum was not written to only address the
experience issue.
Jumoke Horton stated many things have been said which he is not
sure are true; that he is in the uninformed majority; many people
working for B &G will not express their opinions because they are
afraid they will not get a job [with HMS]; that he enjoys his job;
[Monica Barry yielded her time]; read a letter stating the position
of current AOFS employees: "The current crew feels neglected and
their pivotal roles have been overlooked. Crews and passengers are
directly effected. HMS has not secured a contract with the current
crews. HMS cannot secure Agreements until the service Contract has
been awarded; however, the crew is not confident HMS will maintain
service and wages. The crew requests Council to acknowledge their
position "; stated on behalf of those afraid to speak, he would like
to say many are happy working for B &G.
Mayor Appezzato called a recess at 10:47 p.m. and reconvened the
Regular Meeting at 10:58 p.m.
Russ Hobung stated that he has been a captain on the Bay for over
30 years; that he is not comfortable with the way the experience
issue was handled; Roger Murphy is the only full -time employee;
inquired who would handle the job if Mr. Murphy were forced out;
B &G has the boats to step in if there are emergencies; when more
than the usual number of boats are in service, landing facilities
get tight; B &G has floats which could be pressed into service [as
landings] in the event of an emergency.
Willard Thau yielded his time.
Michael Probst, B &G Employee, stated if it is not broken why fix
it; Roger Murphy's experience was used as criteria, however, he
[Mr. Probst] has never seen Mr. Murphy drive a boat.
C. Billington, I.B.U., stated a ferry service is responsible for
maintaining vessels and docking /Pier facilities to ensure passenger
and crew safety; parts work together; B &G management has done an
excellent job coordinating 6 different ferry services throughout
the Bay area; B &G is a safe, reliable commodity which has proven
itself in disasters; the management team provided a school to train
crews; B &G believes in safety first, not economics; during the 1989
earthquake, over 10,000 commuters were safely transported;
Regular Meeting
Alameda City Council
February 16, 1999
operations were not ceased until all stranded commuters were
delivered to their destination; there are always options, however,
in this case the only solution is B &G.
Lisa Zenner, Alameda, stated that she is a happy ferry commuter;
the RFP was worthwhile because it brought the issue of funding to
the table; urged Council to take Option 2 and assist B &G in
accessing transit funds and finding a long -term plan; stated
awarding the Contract to HMS would be taking a short -term view and
missing the opportunity to address the issue of funding; that she
is not willing to put up with down time; B &G provides safe and
reliable service.
Patrick Robles, B &G, stated at the last meeting [January 19, 1999],
there was concern about whether the ferry service, would operate
after the [current] Contract expires; there are still issues which
need to be resolved; this decision affects people's lives; Option
2 guarantees there will be ferry service for 6 more months ar.:
gives Council a chance to examine the issues; thanked ferry riders
for their support.
Daniel Curry, MMP, stated that he is concerned: 1) all current
[AOFS] employees remain employed by whichever company is awarded
the Contract; and 2) there are 3 deckhands on each boat.
Richard Mead, ILWU Local 10, stated the long -term solution is the
issue; 6 months time might be sufficient to find a solution that is
best for the citizens, passengers and workers; even non -union
companies in the Bay area pay prevailing wages; however, they do
not follow area standards, e.g. benefits, crew sizes; if HMS does
not provide area standards, the ILWU will be there with an area
standard picket line which will affect the passengers; it is not a
matter of the lowest bidder; a long -term solution needs to be
found.
Vice Mayor Daysog stated the decision is not easy; there are the
passions voiced by residents, workers and management .ersus some of
the p's and q's raised by staff and HMS; the Blue Ribbon Task Force
is studying systematizing the ferry system throughout the region;
Senator Don Perata is considering legislation for funding; there is
also an opportunity to consider combining the East End and West End
Ferries; all of the issues are somehow linked to one another;
timeout should be taken; it is incumbent upon the City to take six
months to determine how its ferry system fits into the larger
picture; there is no guarantee that at the end of six months, Blue
& Gold will get the bid [contract], or HMS; inorder to move
forward, the City must consider how it can be part of a system and
how the pieces fit into the larger whole; there is something to be
said about continuity: rewarding quality service over a period of
time; there is also something to be said about making sure the
company that is most efficient dollar -wise and most reliable
Regular Meeting
Alameda City Council
February 16, 1999
1
service-wise gets the reward; however in that context, the City can
not really judge who is the most efficient or the most qualified
given the shifting nature of the whole ferry system; Council should
view the matter from that perspective; and a six-month reprieve,
Option 2, taken.
Councilmember Kerr stated that she has problems with the RFP point
system; one service received full points for the experience of one
person, and the day-by-day, boat-by-boat experience of the other
[service provider] was ignored; she questions HMS's farebox
recovery figures; HMS Ilaz a large amount of money in farebox
recovery for concessions, yet only wants to carry two crew members
per boat; whenever on the Encinal [ferry,] there has been one
deckhand on the upper deck selling tickets, one deckhand on the
lower deck selling tickets and one deckhand at the concession
stand; she does not know if HMS cut personnel on board, how
concessions would be increased; Council must take some
responsibility; when the PFP issue came to Council last fall,
Council approved staff issuing a RFP but did not request to review
it; the RFP was not in the Council packet; Council should have
discussed the RFP and made decisions about point valuation at that
time; the Survey was very good but did not cover tourist trade
which pays more per ticket than commuters; there are no points
awarded for safety; from browsing through Coast Guard records, both
providers are about equal in regard to safety; staff did well in
negotiating; HMS's proposal changed quite dramatically in certain
instances; under the RFP process, the City was allowed to
negotiate with HMS, but could not negotiate with Blue & Gold; the
best that can be done for Alameda's taxpayers and commuters is to
approve Option 2, and allow open market negotiations with both
[providers] for the best proposal.
Councilmember Kerr moved approval of Option 2.
Councilmember DeWitt stated the situation is a choice between HMS
and Blue & Gold; Option 2 appears to be something that is neither;
Option 2 provides no tangible benefit; Option 2 just puts
[decision] off in hopes of finding a long term solution. Which is
what?; questioned whether there are any specifics for funding or
tangible [benefits] of Option 2; stated the Port of Oakland
indicated it is not interested in any proi---al which increases
rates; HMS states it can provide experience, service and union
people, etcetera, without a fare increase; that he does not want to
raise fares; he has sat back as a non-politician and watched A.C.
Transit bus fares, garbage rates, and BART tickets go up;
government, leaders, and boards are raising prices every time you
look around; HMS provided a RFP without a fare increase; HMS is
putting up a $1 Million bond; if HMS dues not perform, the City
could take HMS to task; experience, service and union contracts do
not register with him; he will not vote for a fare increase; the
long-term life of the ferry service depends upon the ridership,
Regular Meeting
Alameda City Council
February 16, 1999
which has a direct relationship to fare increases; Option 2 does
not provide anything except delay; if there were any tangible
benefits, he would be willing support Option 2; six months from
now, the City may be in the same position; he accepts the staff
recommendation to award Contract to HMS.
Councilmember Johnson thanked staff; stated staff did an excellent
job; matter is a very difficult issue; that she does not want fare
increases; the two ferry operators have been very forthright with
the City in providing information and willing to meet with Council
to answer questions; the City would be rushing into [matter] if
Council made a decision tonight without exploring all the available
options; the combination of the two ferries, the Harbor Bay ferry
and West End ferry, is a potential; the City needs to explore said
matter; it [combining ferry services] was not taken into
consideration when the City provided the RFP; Council should
consider it; considering all regional issues, opportunities could
be missed; she will support Option 2.
Mayor Appezzato stated that he does not support Option 2; read two
letters:
1) "I am a daily rider to San Francisco on the ferry that
leaves the West End of Alameda; the main purpose of this
letter will be simple, logical and to the point; I and my
friends cannot stand another fare increase. . ."
Mayor Appezzato commented that the letter goes on to state that
they [letter author, Teresa Baker, and friends] will no longer ride
the ferry if there is a fare increase;
2) "Those of us that ride the ferry daily don't give a
hoot about who operates the ferry; Blue & Gold or HMS, or
Union members or not; your priorities as leaders of this
City is to provide service at the best possible price for
public paying passengers; awarding contracts to unions
vs. non-unions is none of the City's business, as long as
prevailing wages acceptable to the City are being paid
the workers; that is all that has to be considered; the
purpose of A.C. Transit and BART and the ferries is to
relieve traffic congestion by providing mass
transportation; the ferry, at the least minimum, is $2 to
$3 more to ride daily than either A.C. Transit or BART;
another fare increase at the box for ferry service will
put many of us back in our cars, thus rendering mass
transportation a severe setback to its stated objectives
and goals of getting people off the roads; it is
comforting to ride the ferry and not have to put up with
road rage and pollution, but not at the expense of higher
and higher rates; please give the matter serious
consideration when it comes up for discussion and the
Regular Meeting
Alameda City Council
February 16, 1999
awarding of a new contract. /s/ John Raymond McIntyre ";
Mayor Appezzato further stated that he would like to compliment
Blue and Gold; B &G did a wonderful job; matter is not about service
provided by B &G; Mr. Duckhorn and he work on the Blue Ribbon Task
Force; complimented staff; criticism of staff is unfounded; HMS was
the low bidder; HMS has agreed to be represented by organized
labor; Masters, Mates & Pilots, a union, is comfortable with HMS;
union conflicts are not the responsibility of the City; he is
convinced that HMS has met union concerns; prevailing wages will be
paid; the City of Alameda is a prevailing wage city; [there will
be] preservation of jobs for existing crews; there will be
preferential hiring; crew size will be determined by the U.S. Coast
Guard; labor concerns have been addressed; HMS has operated
successful ferries in Florida and Connecticut; Roger Murphy,
Operations Manager for HMS, has been in the business for years and
founded Blue & Gold; a new addendum is not an issue; there were
three people on the selection committee: one from the City, one
from the Port of Oakland, and a third person; everyone was
represented; the system was fair; to challenge the RFP process is
saying the City should not have done it in the first place; B &G
required an additional subsidy of almost $300,000; the [B &(] RFP
did not meet the RFP standard for providing twelve weekday runs
within the existing fare and subsidy structure without additional
subsidy; even though B &G did not meet the RFP criteria, staff did
not disqualify them; no one should say there was favoritism; [the
matter of] Fisherman's Wharf access, backup vessels, etcetera was
covered and adequately so; the management fee structure was
discussed: there was a quarter of a million dollars difference;
there is a performance bond of $1 Million from HMS; the City can
call upon the Bond at its discretion; ferry rider input is
important; the ferries belong to all of the citizens of Alameda,
the City of Oakland, and anyone else who pays taxes; recently there
was a dispute between the City's two newspapers as to whom should
get [legal ad] contract; Council went with the low bidder, even
though one newspaper had a larger circulation; that he is concerned
about the RFP process; the subsidy for the ferry boat does not come
from just the riders, it comes from all of the citizens of the
City; Council's responsibility is to everyone; Council talks about
fiscal responsibility; some need to look at [the matter of] fiscal
responsibility; even if the subsidy of $291,000 is found, it is
really $600,000 [needed]; if fares go up because of an additional
subsidy, it could be $2 per round trip per day under the [B &G]
proposal; the Port of Oakland is opposed to a fare increase, he is
opposed to a fare increase, and he is sure everyone is opposed;
there are no additional subsidies at this time; fare increases will
not makeup for the subsidies; a proposal by HMS with a $1 Million
Bond avoids additional subsidies without a fare increase; he will
support Option 1: awarding the contract to HMS, even though he
knows that there are three votes to go with option 2; it would be
a lot easier for him to go with the majority; however, he believes
Regular Meeting
Alameda City Council
February 16, 1999
the process was fair; a lot of the concerns raised are invalid;
Council will be back again in six months; the primary obligation of
Council is to the citizens who pay taxes that maintain the
subsidies.
The Acting City Attorney stated before Council takes action, she
would like to clarify one legal point; she has heard a lot of
reference to the six month delay; Blue and Gold's proposal to
Council this evening to extend their existing contract for an
additional six months is not a matter that is on the Agenda
tonight; Council may consider the offer in making its decision
toward one of the proposals, but that is not an action on the
Agenda tonight.
Councilmember Kerr stated there was a motion on the floor, and
questioned whether there was a second.
Councilmember Johnson seconded the motion.
On the call for the question, the motion carried by the following
voice vote: Ayes: Councilmembers Daysog, Kerr and Johnson - 3.
Noes: Councilmember DeWitt and Mayor Appezzato - 2.
(99-87) Recommendation to form Economic Development Strategic
Plan Task Force.
Frank Matarrese, Economic Development Commission [EDC] Chair,
stated the EDC recommended putting a Strategic Plan together in
December; Council charged the EDC with: 1) determining the makeup
of a Task Force; 2) setting a time frame to accomplish the task; 3)
assigning a dollar figure to the task; tonight the EDC is
submitting its findings; that he can answer any questions.
In response to Councilmember Kerr's inquiry regarding
representatives from Alameda neighborhoods being on the Task Force
to evaluate impacts on neighborhoods, Chair Matarrese stated [Staff
Report] Attachment A lists categories; the list includes
representatives with residential interests; read from Attachment A:
"the EDC is looking for individuals to represent a diversity of
interests, including but not limited to business associations,
developers, educational interests, residential interests, the
maritime industry, high-tech companies, manufacturing, real estate
industry, public transportation interests, financial concerns, and
environmental interests.' Chair Matarrese further stated the EDC
formed these categories to solicit nominations and/or applications.
Councilmember Kerr inquired about the Resource Team outlined in
[Staff Report] Attachment B, to which Chair Matarrese responded the
members of the Resource Team would not have voting rights.
Councilmember Kerr stated at the last Planning Board meeting,
Regular Meeting
Alameda City Council
February 16, 1999
approval to stack containers near a West End neighborhood was on
the Consent Calendar of the Agenda; said example shows
insensitivity to West End neighborhoods; staff has recommended 25
people serve on the Task Force of which none represent the
livability of Alameda's neighborhoods and have voting rights; also,
staff recommends the 75% residency requirement be eliminated;
essentially, most of the [Task Force] composition could be out -of-
town business interests.
In response to Councilmember Kerr's comments, Chair Matarrese
stated the EDC recommended a 75% residency requirement; the City
Council can decide whether to follow the EDC's recommendation,
staff's recommendation or a combination thereof; the EDC
recommended the Task Force begin meeting in May and present a Plan
to Council at the end of the year.
Councilmember Kerr stated that she is disappointed the staff
recommendation does not include the EDC's recommendation to have
voting members of the Task Force represent Alameda neighborhoods.
Chair Matarrese stated Council should review the recommendation,
ensure concerns are met, and decide the Task Force membership.
The City Manager stated staff wanted a balance of community
businesses represented; there should not be discretion over whether
Task Force members F e business property owners or residential
property owners; there should be representation from both
[residential and business property owners]; if Council is
concerned, staff could eliminate several categories and include
several neighborhood representatives.
Mayor Appezzato stated all members of the group should be concerned
about the livability of neighborhoods; however, Council could
include two representatives from Homeowners' Associations - -from the
West End and the East End; suggested: 1) the representative from a
computer/ electronics /,oftware firm and the representative from
bioscience /pharmaceutical firm be combined into one representative
from a high -tech firm; 2) the representative from the
manufacturing /assembly firm be eliminated; and 3) two positions be
filled by Homeowners' Associations representatives.
Councilmember DeWitt stated the Task Force is heavily weighted to
the business community because it is forming an economic strategy;
however, it would be useful to have residential interests
represented on the Task Force; that he agrees with the changes
[suggested by the Mayor].
Vice Mayor Daysog stated that he is pleased Alameda Unified School
District is represented on the Task Force; an article in the
Examiner Newspaper commented on high -tech companies in Oakland,
Emeryville and the City of Alameda; Jerry Fiedler of Wind River was
Regular Meeting
Alameda City Council
February 16, 1999
quoted as saying one of the key reasons Wind River located in
Alameda, rather than Oakland, was because of the educational
system; involving schools in economic development activity
acknowledges the symbiotic relationship of the two; that he is not
concerned whether neighborhoods are involved.
* * *
Councilmember Kerr moved that the meeting continue past midnight.
Councilmember DeWitt _7,:ccnded the motion, which carried by
unanimous voice vote - 5.
* * *
Chair Matarrese further stated the EDC has proposed to help screen
and sort applications ac the Council's pleasure.
Charles Ward, EDC Member, tated the EDC drafted its recommendation
to allow members from each point of interest to apply and a
selection committee recommend individuals for appointment.
Councilmember Kerr so moved. [acceptance of the staff
recommendation with changes outlined by Mayor Appezzato].
Councilmember DeWitt seconded the motion, which carried by
unanimous voice vote - 5.
(99-88) Ordinance No. 2793, "Amending the Alameda Municipal Code
by Adding Subsection 4-10.2(h) to Subsection 4-10-2 (Definitions),
of Section 4-10 (Noise Control), Article II (Noise Regulations),
Chapter IV (Offenses and Public Safety) Pertaining to Noise
Disturbance." Finally passed.
Albert Gaster, Alameda, stated that he is opposed to the change;
chronic offenders' noise is permitted if it is under 200 feet;
inquired about people under the 200-foot limit; stated a neighbor
approximately 80-feet from his residence makes noise which shakes
his house; [Municipal Code] Article 4-10 does not nail down: 1)
what the Police Department should do; 2) what a nuisance is; or 3)
how to take care of nuisances; the entire [M11:-.1-ipal Code] section
should be reviewed; stereo and car noise is a disturbance; that he
is opposed to the revision because it does not make sense; a
solution is to have the City Manager, Police Department, District
Attorney and residents meet to figure out how to eliminate noise.
Councilmember Kerr stated none of the existing noise controls are
eliminated by the proposed amendment; use of a decibel meter is
still in the Municipal Code; noise meters are in the Planning
Department and are not available on weekends; the existing Code has
a 50-foot rule for car radios; the proposed amendment is not a
Regular Meeting
Alameda City Council
February 16, 1999
solution to everything; that she met with the City Attorney and
Police Chief to establish regulations which would not require the
Police Department to get a noise meter; noise meters require a
minimum of 35 minutes to measure decibel levels; the purpose of the
revision is to simplify enforcement and not require the Police to
sit around for 35 minutes with a noise meter.
In response to Vice Mayor Daysog's inquiry pertaining to criteria,
the Acting City Attorney stated no noise disturbance could satisfy
all criteria.
Councilmember Johnson stated a noise disturbance could exist
without violating any of the criteria.
In response to Mayor Appezzato's inquiry in regard to the number of
citations issued by the City, Mr. Gaster [Public Speaker] stated
for the month of January, 4 citations were issued for noise
violation [following the Council meeting, Mr. Gaster informed the
City Council that there were no citations for noise violations over
the past three months].
Councilmember DeWitt stated tile ordinance is proposed ',I allow a
person without a noise meter to issue a citation; the disturbance
has been put into number of feet; said regulation might not work
for everyone; inquired why Mr. Gaster finds this method so
objectionable.
Mr. Gaster responded that he does not understand why Police
Officers are not enforcing regulations; the Police Chief needs to
inform Officers to issue citations.
Councilmember Kerr moved final passage of the Ordinance.
Councilmember DeWitt seconded the motion, which carried by
unanimous voice vote - 5.
oZ4
•VIviik • kok 114
(99-89) Charles Ward, Alameda, stated [regarding the Ferry
Service Contract] that the Council has proved itself to be somewhat
unfriendly tonight; if HMS walks away [from their
Proposal], the City might be left with a company which may not be
able to provide the service without additional subsidy; if the Port
of Oakland chooses HMS, it would raise the question of where
Alameda fits in; the RFP process needs to be air tight; Council
followed emotion over process; the City needs to make sure
businesses are not scared away.
(99-90) John Fee, Alameda, commented on various issues.
Regular Meeting
Alameda City Council
February 16, 1999
(99-91) Councilmember DeWitt stated the City of Alameda's
relationship between homeless providers, local public agencies and
the community was listed in the Housing and Urban Development [HUD]
publication entitled, "Guidebook on Military Base Reuse and
Homeless Assistance"; HUD cites the reuse planning process at
Alameda's [former] Naval Air Station as a model program.
(99-92) Councilmember Kerr requested the City Manager to provide
Council with an off-agenda report regarding any possible
landscaping plans on the eastern side of Constitution Way between
Atlantic Avenue and Marina Village Parkway [east side of
Constitution Way at the Atlantic Avenue/Marina Village Parkway
interchange]; e.g. tall trees.
ADJOURNMENT
(99-93) There being no further business, Mayor Appezzato
adjourned the Regular City Council meeting at 12:25 p.m. in memory
of Kay Hickox, the City's former Cable Television Technician.
Respectfully submitted,
Di re:Cf3.tgsc C
City Clerk
The agenda for this meeting was posted in accordance with the Brown
Act.
Regular Meeting
Alameda City Council
February 16, 1999