1993-02-08 Special CC MinutesMINUTES OF THE SPECIAL MEETING OF THE ALAMEDA CITY COUNCIL
FEBRUARY 8, 1993
The meeting convened at 7:35 p.m., with President Withrow
presiding. Councilmember Lucas led the pledge of allegiance.
ROLL CALL -
Present: Councilmembers Appezzato, Arnerich,
Lucas, Roth and President Withrow - 5.
Absent: None.
93-069 Report from the Public Works Director and the Community
Development Director Recommending Approval of a Loan Agreement
between the County of Alameda, Neighboring Jurisdictions, and
Harbor Bay Isle Associates for Funding Start-up Costs of a
demonstration Water Shuttle service for UCSF. (Continued from
February 2, 1993, Regular Council Meeting)
The City Manager noted the Community Development and Public Works
Directors provided written responses [to Council questions raised
at the Regular Council Meeting of February 2, 1993]; that staff
discussed with City's Bond Counsel, Jones, Hall, Hill & White, the
possibility of setting up additional security for loan; a letter is
in the Council Meeting packet from Bond Counsel regarding setting
up a Community Facilities District or an Assessment District to
give the City a co-first position [an equal first position with the
existing Assessment District] on the Harbor Bay Business Park
property, if Council wishes to proceed with either district to
provide security for the loan being considered.
Don Roberts, Alameda, stated UCSF may be using HBI proposal as
device to leverage what they really want from San Francisco; too
many unanswered questions exist; a decision should not be made
until there are answers and full protection of the City's money.
William Garvine, Alameda, Executive Director, Alameda Chamber of
Commerce, stated UCSF is a catalyst development, an investment in
the future; Council has protected the public's interest and it is
time to protect the public's future; requested Council support loan
of Traffic Improvement Fund monies.
John Barni, Sr., stated he favors UCSF coming to Alameda; however,
does not favor loan until questions have been answered to
satisfaction of citizens.
Sue Foulkes, Alameda, stated she works at Naval Air Station to
provide support services for military families; is concerned about
employment; noted possible employment opportunities that may occur
through UCSF; and urged Council vote for ferry service.
Stan Shane, Alameda, stated he agrees with Messrs. Roberts and
Barni; the decision should wait; many questions need to be answered
concerning UCSF and what may occur in the event of bankruptcy.
February 8 1993
At the request of President Withrow, the City Attorney addressed
the question of extra security to survive the event of bankruptcy,
noting the extra security is an assessment district; assessment
district and taxes are paid first, then mortgages, liens and at the
next level, general loans; assessment districts are first priority;
and bond counsel has stated the assessment district will survive
any type of foreclosure, will likely survive bankruptcy and knows
of no assessment districts that have not survived bankruptcy.
Diane Coler-Dark, Alameda, inquired concerning business credit
analysis, property indebtedness check, additional security by
Maratriton, ferry stipulation in lease, funding if other cities
choose not to participate, appraisals on project cost and if
attorney was contracted through City or developer.
The City Manager replied the attorney is City's bond counsel;
estimate of operating cost was done by developer, reviewed and
adjusted by City Staff; Maratriton Investment, Inc., which owns
Beriex Building, formerly Triton Building, will not benefit to
extent of other participants; Public Works did a Dun & Bradstreet
review of Harbor Bay credit and found nothing adverse; a bank loan
on the land is about $7 a square foot on existing land and $2
through prior Assessment District established by City, and the
proposal is to add about 30 cents per square foot; if some other
cities do not participate, the County has been working with other
agencies, and private individuals have indicated interest; everyone
is waiting to see if Alameda, who has the first and most to
benefit, will proceed; he has talked to the Vice-Chancellor, UCSF,
who stated a ferry is a Condition of UCSF's coming to Alameda.
President Withrow stated he had been told the same thing by members
of the University regarding Condition.
In response to Councilman Arnerich, the City Manager stated if all
the participants, including additional co-lenders, cannot raise the
amount of money that is needed, the project will not go; he does
not know who the private entities are; the County Economic
Development Manager stated he had conversations with private
companies who expressed interest.
Linda Larkin, Alameda, stated obtaining loans on commercial
property is difficult, but there is residentially zoned property to
look to protect those [invested] dollars; that the campus may have
radiation, and using the Negative Declaration, bothers her, the
planning process has been ignored, Council should wait 60 days;
Alameda has been without the campus and can do without it longer.
Ron Lappa,
the [loan]
in advance
if Council
more time;
Alameda, stated he looks at the possibility of getting
money back as a fifty-fifty gamble; is concerned how far
of meeting the documentation was available for citizens;
wants community to support project, City must provide
perhaps UCSF will contribute to the loan.
Roselyn Jones, Alameda, Filipino-American Community Services
February 8, 1993
35
Agency, stated she favors UCSF project which will create jobs and
generate revenue for businesses.
Reverend Lawrence VanHook, Alameda, stated he came from a meeting
at UCSF where he and Clayton Guyton inquired what Alamedans will
receive [in terms of jobs] for money invested; for the most part
they did not know; if Alameda brings in UCSF, the City must be sure
of something in return and some commitment: at least the number of
jobs for Alameda, and what training is needed.
President Withrow stated Council must go on the offensive to keep
Alameda from going into financial recession; Fortune magazine
noted that California recently lost 250,000 jobs and estimated at
least 750,000 will be lost before the bottom is reached;
biosciences and medical instrumentation are the science of the
future and if Alameda can gain a strong foothold now, the recession
can be blunted in Alameda and Alameda County; and [the project]
will be of benefit to the whole region, including San Francisco.
Councilman Arnerich stated he agrees with President Withrow's
comments; however, he still wants $400,000 secured to the best of
Council's ability, and wants repayment when other entities receive
theirs.
Councilmember Appezzato stated he fully supports the concept of
UCSF coming to Alameda; concerning the loan agreement, suggested,
[for security] recording a blanket deed of trust on Village V; as
homes are sold, a fixed amount of dollars would be repaid the City
to service the loan; he does not feel comfortable with the City
embarking alone into a special assessment district that may have
some ethical considerations; Alameda is loaning the most money
because it receives the most benefit; he can accept that; however,
in all other aspects of the project, participating parties should
be treated equally, loan shares should not be rounded up or down,
should be contributed at the same time, and should be repaid
equally.
Councilmember Lucas stated the Bay Area is in economic trouble;
addressed decrease in household income in Alameda; while Alameda
would benefit most, and has a traffic mitigation fund, other
communities are making commitments which come from other funds,
perhaps police services; likes approach [use] of a ferry service;
Council would be remiss to not approve a project that provides
jobs potential in a field that has a future; staff and counsel have
assured the security will be better than a deed of trust, so
Council has done its duty to ensure public funds are secure; she
will support project and hopes Council will.
Vice Mayor Roth stated he agreed with Councilmember Lucas; he
looked at four basic considerations: 1) concept of University
coming to Alameda, 2) agreement with other agencies; the agencies'
staffs negotiated terms and agreed terms were fair and equitable;
3) the loan to Harbor Bay; and has concluded the loan is feasible
and fair, a good method of payback exists, the process is workable
February 8, 1993
for developer and City; and 4) security; the City can use the
assessment district as a levy of taxes; he is satisfied with the
four [considerations]; in the long-term range: 1) the City is not
buying a ferry, only paying operating costs; 2) EIRs will be done
in the future on a second campus for UCSF and that is probably two
years away; many cities grant money; Alameda, on a smaller scale,
provides grants, e.g., facade grants; in this case, the loan will
be repaid.
Vice Mayor Roth moved Council: 1) finds additional environmental
documentation is not required, 2) authorizes City Manager to
execute final Loan Agreement and Loan Repayment Covenant,
consistent with terms of the draft agreements; and 3) instructs
staff to work on forming the financing district, to be brought back
to the City Council. Councilmember Lucas seconded the motion.
In response to Councilman Arnerich, the Public Works Director noted
a 45-knot boat should make the trip from Harbor Bay to China Basin
in 10 to 12 minutes; and buoys mark the areas where a slower speed
is necessary.
Motion carried by the following voice vote: Ayes: Councilmembers
Lucas, Roth and President Withrow - 3. Noes: Councilmembers
Appezzato and Arnerich - 2. Absent: None.
ADJOURNMENT
The meeting was adjourned by President Withrow at 8:55 p.m.
Respectfully submitted,
DIANE B. FELSCH, CMC
City Clerk
The agenda for this meeting was posted in advance in accordance
with the Brown Act.
February B, 1993