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1991-09-17 Regular CC Minutes279 REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF ALAMEDA September 17, 1991 The meeting convened at 7:35 p.m., (following the meeting of the Community Improvement Commission) with President Withrow presiding. The Pledge of Allegiance was led by Councilmember Roth. Reverend Dorothy Kimbrell gave the invocation. ROLL CALL - Present: Councilmembers Arnerich, Camicia, Lucas, Roth, and President Withrow - 5. Absent: None. ANNOUNCEMENT OF CLOSED SESSION ACTION(S) President Withrow announced that at the Special Council Meeting held at 6:30 p.m., Council adjourned to Closed Session and took the following action: 91-657 Pending Litigation, pursuant to Subsection (a) of Section 54956.9 of the Brown Act: Mulvey v. City of Alameda and Shaeffer v. City of Alameda: no action was taken by Council; instructions were given to the City Attorney. 91-658 Personnel Matters - Employee Appointment Evaluation, pursuant to Subsection 54957 of the Brown Act: received a briefing by the City Manager; no action was taken by Council. PROCLAMATIONS AND SPECIAL ORDERS OF THE DAY. 91-659 Introduction by Mayor Withrow and School Board President Bill Garvine of Anton Lacap, Student School Board Member. Mayor Withrow noted Mr. Garvine was not yet present to introduce the Student School Board Member. [See insert following initial paragraph of Appeal 91-675.] 91-660 Presentation by Mayor of the Employee Excellence Award to Leslie Prado, Police Technician II. Mayor Withrow presented the Employee Excellence Award [plaque] to Leslie Prado, commending her, noting she will receive a day off with pay and her name will be added to the plaque in City Hall Rotunda. 91-661 Presentation of Certificate of Appointment to Francie Farinet as Member of the Navy Base Committee, Strategic Planning. Mayor Withrow presented the Certificate to Ms. Farinet. 91-662 Proclamation declaring September 22 through 28, 1991, as Rideshare Week. Mayor Withrow read the proclamation and presented it to the Public Works Director who accepted on behalf of the Traffic Systems September 17, 1991 280 Management, and challenged individuals to rideshare. CONSENT CALENDAR At the request of Councilmember Roth, (91-671) report from Economic Development Commission regarding Joint Committee, and (91-672) report from Planning Board regarding Joint Committee, were removed from Consent Calendar for discussion. At the request of Councilman Arnerich, (91-673) Year-end Financial Report, and (91-674) Sales Tax Report, were removed from Consent Calendar for discussion. Councilmember Camicia moved approval of remainder of Consent Calendar. Councilmember Lucas seconded the motion which was carried by unanimous voice vote - 5. Items so enacted or adopted are indicated by an asterisk. *91-663 Minutes of the Regular Council Meeting of September 3, 1991, and the Special Council Meeting of August 27, 1991. Approved. *91-664 Report from Public Works Director recommending stop sign installation for Palmera Court at Grand Street, Eagle Avenue at Sherman Street, and Minturn Street at Eagle Avenue. Accepted. *91-665 Report from Public Works Director recommending acceptance of work by Gateway Landscape Construction, Inc., for construction of Tilden Way Landscaping, No. P.W. 5-90-06. Accepted. *91-666 Report from Finance Director submitting Investment Portfolio for the period ending August 31, 1991. Accepted. *91-667 Report from Acting Chief of Police recommending date for Hearing on Appeal of Non-Renewal of Dance Permit for Establishment located at 1544 Webster Street. Accepted. *91-668 Resolution No. 12152 "Amending Resolution No. 11887 Adopting a Street Tree Master Plan, Thereby Modifying Condition No. 25 of Planning Board Resolution No. 1979 Pertaining to Paving of Planter Strips." Adopted. *91-669 Ordinance No. 2567t N.S. "Authorizing execution of lease between City, as Lessor, and Alameda Swimming Pool Association, as Lessee, for Swimming Pool Facilities at Lincoln and Franklin Parks. Adopted. *91-670 Bills, certified by the City Manager to be correct, were ratified in the amount of $984,020.29. 91-671 Report from Chair, Economic Development Commission, [EDC] recommending participation by a representative of the Historical Advisory Board on the Joint Committee for Development of Specific Plans. Councilmember Roth stated he requested this item and the next (91-672) be pulled from Consent Calendar for discussion so he could vote no; his concern is that involving more and more boards and September 17, 1991 commissions with this interaction slows down the effort Council is attempting to do on redevelopment, creates more work on staff in sending the documentation to support a meeting, and ends up going to all three boards/commissions; Council may as well make one large board or commission; he does not believe Council should [approve] this; and he will vote no. Councilman Arnerich concurred with Councilmember Roth. Councilmember Lucas stated both the EDC and Planning Board decided the Historical Advisory Board (HAB) can provide valuable input, and have been considering historic aspects of redevelopment so she believes the one representative from HAB cannot hold up the decision process but can contribute; and moved the recommendation. Councilmember Camicia seconded the motion and inquired if Councilmember Roth's basic concern was the paper flow. Councilmember Roth responded in the affirmative, and stated Boards should not be involved with other committees; a fiasco occurred between the Finance Committee and Golf Commission; [HAB] could provide input, questions could be asked, but the Board should not officially be part of the process in the capacity proposed. Councilmember Camicia withdrew his second. Councilmember Lucas stated the problem was that the Finance Committee and Golf Commission did not have representation on each other's boards; if they had, the fiasco could have been avoided. Councilmember Roth moved to retain the Joint Committee as originally set forth, and not add a member of another Commission to it. Councilman Arnerich seconded the motion which carried by the following voice vote: Ayes: Councilmembers Arnerich, Camicia, Roth, and President Withrow - 4. Noes: Councilmember Lucas - 1. Absent: None. 91-672 Report from President, Planning Board, recommending participation by a representative of the Historical Advisory Board on the Joint Committee for Development of Specific Plans. Councilmember Roth moved to retain the Joint Committee as originally set forth, and not add a member of another Commission to it. Councilman Arnerich seconded the motion which carried by the following voice vote: Ayes: Councilmembers Arnerich, Camicia, Roth, and President Withrow - 4. Noes: Councilmember Lucas - 1. Absent: None. President Withrow stated he has mixed feelings; he understands concern about becoming overly encumbered in a bureaucratic way, but Council needs to be sure it does not inhibit communications, and that the views of the specialist Boards have a way of communicating values, ideas, concerns and interests to the EDC and Planning Board and to other Committees including Finance Committee; he believes Council is saying that will happen on a natural basis and that is why he supported the majority. September 17, 1991 Councilmember Roth agreed. 91-673 Report from Finance Director submitting Year-end Financial Report for Fiscal Year 1990-91. In response to inquiry from Councilman Arnerich, the Finance Director clarified that $1,718,853 was received from the Bureau of Electricity in Fiscal Year 1989-90; in 1990-91 the City did not receive a similar transfer; for the current year the City will receive $700,000 in excess of normal contributions, subject to the Council approving the debt issuance for the Bureau project; and while it appears the City might have a deficit of about 3 and 1/2 percent, actually, if there were not the revenues from the year before, the City would be up about a point and a half; the revenues for 1989-90 would be exceeded by about $500,000. Councilmember Roth moved acceptance. Councilman Arnerich seconded the motion which was carried by unanimous voice vote - 5. 91-674 Report from Finance Director transmitting Sales Tax Report for period ending June 30, 1991. In response to inquiry from Councilman Arnerich, the City Attorney stated staff will research letter [dated 6-27-91] from the Board of Equalization's Senior Tax Counsel, John Abbot, asking cities discontinue publishing the lists of the top 25 taxpayers. Councilmember Roth commented he does not believe what a specific business pays in Sales Tax should be made public; believes what the Board of Equalization is asking is reasonable, City on a confidential basis should know that, but the public does not need to know how much a particular business, e.g., restaurant, pays; what has been made public by categories, by the City, is sufficient to guide Council. Councilman Arnerich stated he finds no fault in that; but the City has been receiving the top 25 producers, and Abbot's opinion should come before Council. Councilmember Roth stated, when the matter is reviewed, business licenses should be reviewed also because business owners are informed gross sales figures are confidential. Councilman Arnerich moved acceptance of the report. Councilmember Roth seconded the motion which carried by unanimous voice vote - 5. AGENDA ITEMS 91-675 Appeal of a Planning Board denial of Use Permit UP-91-184 for an unenclosed play structure at the McDonald's Restaurant, 715 Central Avenue. Don Roberts, Alameda, urged support of Appellant, including proposed colors, and that the Planning Board decision be overturned. September 17, 1991 Return to SPECIAL ORDERS OF THE DAY, paragraph 91 -659. President Withrow introduced Anton Lacap, Student School Board Member, commenting that Mr. Lacap is the representative to the School Board, a non - voting but active member, who attends Board Meetings, and is in a position to influence decisions made; and congratulated him. Mr. Lacap stated since he has been appointed, he is more aware of Board of Education activity; and encouraged people to attend Board Meetings to the same degree as attending Council Meetings. * Return to Appeal paragraph 91 -675. Patty Jarrat, Alameda, stated she represents West Alameda businesses who express support of proposed playground at McDonald's Restaurant on Central Avenue; submitted letters of support from Belinda and Michael Knight, owners of Fort Knox [store]; David and Mary Duffy, Duffy's Diner; Sylvia Perry, West Alameda Business Association Board; Ken Rosenblum, Providence Veterinary Medical Clinic. Kimberley Byrne, Applicant, Alameda, stated she and her husband were present to request Council overturn the Planning Board decision to deny a playland at their restaurant at 715 Central Avenue; believes playland fits in well with changes and trends in area toward family- oriented image; the structure is attractive and made of safest material possible; discussed sign and awning details, and requested Council approve [the Byrnes's] original proposal and overturn the Planning Board denial of the Use Permit. Councilman Arnerich discussed with Mrs. Byrne, the hours of use of the play structure and fencing; Mrs. Byrne stated the structure is fenced off and the area can be locked. To Councilmember Camicia's question, Mrs. Byrne stated another color option is available which she does not feel would be appealing to children as it is very subdued, and provided a sample of the color. In answer to Councilmember Roth, Mrs. Byrne stated hours from 8:00 a.m. to 9:00 p.m. would be preferred. Replying to Councilmember Lucas, Mrs. Byrne stated bike racks will be relocated, planting strips are and /or will be landscaped; a light will illuminate the area during the night but is no brighter than parking lot lights; the flag pole would be removed; and the awning will be lowered three feet. Tom Byrne, Alameda, requested Council reverse the Planning Board decision; reviewed Board findings; stated he does not understand something blocked by buildings on either side, can impact visual character of the area; McDonald's is nestled among trees; sign will be replaced with smaller sign; described structure and its safety factors; requested Council allow structure which will increase business, desireability of Webster Street area, help generate September 17, 1991 business to West End and incremental income in the form of tax, and provide tangible example of commitment to business without the need for public funds. Councilmember Roth stated his concerns that this is an example that the City needs to work toward specific guidelines so business owners will know what to expect while allowing flexibility; he has no problem with the Conditions except Condition 5 which should be changed to 14.5 feet, and Condition 8 to read from "8:00 a.m. to 9:00 p.m.," with no usage after dark in winter; the proposed use favorably relates to the General Plan, is compatable to other land uses in the general area, and will not require additional public services; additional Conditions Council sets forth can be complied with, and will not affect other property in vicinity; and moved to overturn the Planning Board decision; allow the use with Findings and Conditions mentioned. Councilmember Camicia seconded the motion. Councilmember Roth included the deletion in the motion of Condition No. 6 [regarding color] because all the parks in the City use bright colors. The motion carried by unanimous voice vote - 5. 91-676 Report from Finance Director regarding Oakland Scavenger's Rate Application for 1992, 1993, and 1994. Stan Shane, Alameda, commented on a Wall Street Journal article (9/10/91) regarding garbage firms' antitrust woes; article reports Waste Management Inc. (WMI) keeps prices artificially high; recommended City acquire bids from other companies. John Barni, Sr., Alameda, agreed with Mr. Shane; believes the last WMI increase was not justified; compared Alameda's rates with City of Chico's lower rates [provided handout to Council]; and recommended Council seriously consider the matter before granting any increases. Don Roberts, Alameda, stated after the WMI rate increase passed by previous Council, garbage rates were found to be lower in Oakland; and requested investigation of the possibility that Alameda pay lower rates as the operation is easier than Oakland's. Councilmember Camicia stated he cannot support the increase; and moved the recommendation to refer the Rate Application to the Joint Refuse Rate Review Committee [JRRRC], and direct City's representative [Finance Director] to onpose the increases. Councilmember Lucas seconded the motion. Councilman Arnerich commented on WMI's assets, and expressed displeasure that it has returned so quickly for a 36% rate increase over the next three years. Upon request by President Withrow, the City Manager explained the 20-year garbage franchise with Oakland Scavenger, and the functions September 17, 1991 8 of JRRRC. Councilman Arnerich named cities in the Joint Powers Authority; and believes the City of Chico rates cited by Mr. Barni are more reasonable. Councilmember Lucas stated she would like the City's representative to verify the [WMI] rates for other cities; and to see Alameda's rates lower than others. The City Manager responded the Committee has been requested to do a cost of service analysis for each jurisdiction; one factor to be aware of is that some cities have more commercial and industrial waste pickup with higher rates which offsets other factors. President Withrow suggested the City's representative [Finance Director] convey Council's opposition to any substantial increase whatsoever, nothing higher than a standard gauge, e.g., the cost of inflation. Councilmember Camicia included that [direction] in his motion. President Withrow inquired what would happen if the Council denied rate increases, considering the fact a 20-year agreement exists. The City Manager stated the Scavenger Company could then make a response which could include non-performance. President Withrow questioned whether the Company could leave Alameda if it reached a point where it was no longer profitable to collect garbage in Alameda, and what would happen if the City denied increases and pulled out of the Joint Powers Agreement to deal directly with WMI. The City must be receiving Alameda. President the part reasonable Manager responded the City could pull out, but a finding made by Council that, without raising the rates, WMI is a reasonable rate of return on its investment within Withrow clarified that is to be a subjective evaluation on of the Council with respect to what it considers to be a rate of return, to which the City Manager agreed. To Councilman Arnerich's questions for further clarification, the City Manager stated the first step to follow, as part of the JRRRC, as specified by the Joint Powers Authority, is to refer this increase to that Rate Committee for review; after their recommendation, if the City does Aot agree, it need not follow it; the City can provide its own review and finding that WMI need not have an increase based upon its rate of return on Alameda operations. Councilmember Roth noted a company can expand its costs by spending more money on fancier equipment, personnel, etc., to justify a return. The City Manager replied the job of the Committee is to make sure September 17, 1991 8 6 that does not happen. President Withrow commented the [JRRRC] is a fact finding body, which is advisory and the Council can make the decision. Councilmember Roth stated he would like to have added to the motion, that when rate comparisons are made, comparisons be made of cities where the garbage cans are placed at the curb and where they are not. Councilmember Camicia agreed. The motion carried by unanimous voice vote - 5. 91-677 Resolution No. 12153 "Supporting Regulation and Competition in Cable TV." Councilmember Camicia moved the resolution be adopted with amendment; commented the last sentence speaks to introducing telephone competition and he is not sure that is a good idea from the consumers' standpoint; and suggested deleting the word "telephone." Councilmember Lucas seconded the motion. Councilmember Roth inquired why it matters to Council if the telephone company is used, to which Councilmember Camicia replied that the City does not receive a franchise fee, if the telephone company is brought in. President Withrow stated [the telephone company] is included in the word "competition" anyway. Councilmember Camicia stated if the telephone company went into the Cable television business, he is concerned the City might not get a franchise fee, because the telephone company might consider Cable service an extension of service. Councilmember Lucas inquired if the City receives a franchise fee from the gas and telephone companies, to which the City Manager replied the City receives a 5 percent franchise fee in addition to the utility users tax. Councilman Arnerich agreed with Councilmember Camicia; the option should be kept open for the future. The motion was carried by unanimous voice vote - 5. 91-678 Resolution No. 12154 "Supporting Harbor Bay Maritime's Application to the California Public Utilities Commission for a Certificate of Public Convenience and Necessity for Ferry Service." - * Oral Status Report by City Attorney on Proposal for City to Operate the Harbor Bay Maritime Ferry Service. (Councilmember Roth) Graham Claytor, Alameda, Alameda-Oakland Committee for Aquatic Transit September 17, 1991 [AOCAT], stated AOCAT is a group dedicated to supporting existing ferry, and increased use of ferrys on San Francisco Bay; when [Harbor Bay] filed with Public Utilities Commission (PUC), the intent to apply for public monies was stated; AOCAT is concerned the Ferry will cost taxpayers a lot of money, is concerned about ridership numbers as the Ferry will not be convenient for Main Island residents; and concerned that Alameda can lose the ferry [Blue and Gold] that works and end up with a subsidized ferry that does not work; therefore AOCAT has filed a Protest with the PUC and is looking for specific protective conditions that will allow the two ferries to operate in a complimentary fashion, and that the Harbor Bay ferry operate with no public money, and not compete with the existing ferry. President Withrow stated the City of Alameda has no intent of funding any ferry operation. Mr. Claytor questioned if the Blue and Gold subsidy comes from the City, to which the City Manager stated the funding is from the Metropolitan Transportation Commission [MTC] and Measure B funds and no General Fund money from Alameda. President Withrow commented on the Blue and Gold owners based in Texas, and their considerable assets. Councilmember Lucas expressed appreciation for Mr. Claytor's volunteer efforts, finds some inconsistent statements, and inquired why Mr. Claytor finds using the Harbor Bay Ferry inconvenient when he lives on Regent Street. Mr. Claytor stated he lives closer to the Harbor Bay Ferry but must drive a long way around to use the Ferry; AOCAT is asking the PUC for a temporary Certificate for Harbor Bay Ferry to [allow time to] study ridership loss. Councilmember Lucas stated she would like to see the West End ferry succeed, has problems because it does not run often enough; and she would like more ferry service. Mr. Claytor stated AOCAT is asking the PUC to force Harbor Bay Ferry, through the Certificate process, to run a complimentary service. Councilman Arnerich clarified AOCAT's position, stating it wants the two ferries to succeed, does not want the City to incur expenses now or in the future, and would like Council to approach the PUC. Mr. Claytor agreed and stated if the City would join AOCAT in asking that the Harbor Bay Ferry not seek public funding for three years, that would please the organization. The City Manager clarified that the Ferry service was a City requirement upon Harbor Bay when approval was given to develop Village V; AOCAT is concerned Harbor Bay will apply for a subsidy with MTC, but the City is the only entity that can request a MTC subsidy; secondly, Harbor Bay Assessment District funds were used to construct the Ferry service, no General Funds were used. September 17, 1991 28 At President Withrow's request, the City Manager named the property owner involved, Harbor Bay Business Park. The City Manager clarified the City required a separation between the Business Park and the residential area; so Bay Farm Island homeowners go in one gate and the public, from other areas, go through another gate via Harbor Bay Parkway. President Withrow stated the rationale for separate gates is for traffic mitigation for development in Bay Farm Island. Stan Shane, Alameda, stated taxpayers pay for everything; the grant comes from someplace and [taxpayers] are paying for it; and there are no experts, particularly in transportation. President Withrow stated taxpayers are subsidizing transportation, for years have subsidized cars, the intent to move people into mass transportation is a conscious intent and is essential in the Bay Area. Councilmember Lucas stated Alameda is fortunate to be where a ferry service is a good alternate to congested freeways, agrees with the resolution and believes Council should take the opportunity and push the ferry service. Councilmember Lucas moved adoption of the resolution. Councilmember Camicia seconded the motion. Councilmember Roth noted he asked this be on the agenda as an interim report for the City operating the ferry service, the City cannot; he is concerned with what will happen with the ferry service at the end of three years; is concerned about the Blue and Gold; if the ferry service does not have the funds or chooses not to fund, he does not expect the City to operate the ferrys. President Withrow stated that has been his position for the last three years; he sees no reason why any General Fund monies should go toward regional transportation. Councilman Arnerich stated part of the condition with Harbor Bay was that they would be solely responsible for the operation of the ferry; it is now before the PUC; the City must be protected; he has no qualms about sending a letter stating that Council supports the ferry service only, and let the PUC conduct its own hearings. The motion was carried by unanimous voice vote - 5. Councilman Arnerich stated for the record that there will never be monies given to Harbor Bay; he will support the resolution. Following a brief recess, President Withrow stated he learned that some persons were in attendance to address the Consent Calendar item regarding the hearing on Appeal (91-675); the item has been acted September 17, 1991 489 upon and approved and there is no further opportunity to address the matter; explained persons could talk in a general sense about issues of concern but the document and the basic issues are not available at this meeting; the Hearing at the October 1, 1991 Council Meeting will allow for expression of views. The City Attorney stated since there is a hearing on the Appeal, any testimony or evidence pertaining to the subject should properly be the scope of that Appeal, and be taken at the October 1st Meeting. NEW BUSINESS AND UNFINISHED BUSINESS 91 -679 Discussion on Billboard Removal. Councilmember Camicia stated he requested the matter go on the agenda to see if Council can reach some accommodation with the billboard companies before this goes to court; would like to try to find a way to have billboards removed without having the City go to court for what he believes will be a long expensive battle; he has put together some options which range from removal by December 1996. President Withrow stated there is, surrounding this issue, a lot of rumor, unknowns, emotion; would like to poll the Council; has spoken to the City Attorney, and it is legal; and asked if Councilman Arnerich is in favor of the billboards in Alameda being taken down. Councilman Arnerich stated he will be voting the billboards come down in effect, per the agreement signed in 1980; if there is litigation, he is prepared to proceed with the judgment rendered 10 years ago. President Withrow stated the citizens need to know the status and position of each of the Councilmembers, including himself, with respect to the billboards coming down. Councilmember Roth stated he has no problem with that, but President Withrow stated several questions would be asked, and he [Roth] would like to know what those questions are, and he declined to answer the question about whether or not he wanted the billboards to come down. Councilmember Lucas stated she felt the same as Councilmember Roth; she believes all Councilmembers want the billboards to come down. President Withrow stated that is the only point he is trying to make because some confusion seems to exist in the City that some persons on the Council do not want the billboards to come down; inquired if Councilmember Camicia would like the billboards to come down; and Councilmember Camicia replied affirmatively. President Withrow stated he also would like the billboards to come down and intends to do whatever is necessary to see the billboards are taken down; the City has a Settlement and a Court Order. The City Attorney explained the judgment was entered in 1980, the City entered into a Settlement Agreement staying the enforcement of the judgment for ten years; now, if the City wants to enforce the judgment, it must go back to the Court in a contempt hearing to get September 17, 1991 an order. President Withrow stated the question as to whether Council wants the Agreement to be complied with has been answered: Yes Councilmembers want the Agreement to be complied with; the fact the companies were not going to take down the billboards was quite evident; no permits were taken out by the companies for removal of the billboards; he commented on the issue of the First Amendment, a loophole in the Agreement, the possibility of going back to Court again, and the cost of litigation. President Withrow inquired how much Councilman Arnerich would be willing to commit [by vote] to put aside any reserves in a legal fund to fight in Court to have the billboards taken down. Councilman Arnerich stated Council should not need to fight; the Agreement was signed ten years ago and the companies should abide by the Agreement; he reviewed the related activity and stated he is willing to commit to spend a million dollars of the City's money so that people cannot come in and break a promise to the people of Alameda. Councilmember Roth stated money does not enter into principle; all of Council want the signs down, and only a question of when, is the issue; and stated he would like to hear from the speakers, and he does not have a price. Councilmember Lucas stated she did not think it fair to ask for the total sum City wants to spend at this point; she wishes to take this matter in stages, as the City Attorney described. Councilmember Camicia stated he does not know what to say about the amount of money; to him, what is most important is that he does not want to go back to court and risk losing something that has already been won; Paragraph 7, Settlement Agreement, on the decision that was won, states "In the event that California State Legislature enacts legislation which can be asserted as a defense to the proceedings contemplated. .; that happened and it makes this Agreement virtually worthless; he wants to get the billboards down, and does not care about going back to court and risk losing. President Withrow stated the only reason for the poll is to communicate to the citizens that the Council is united in the goal of bringing down the billboards; the second issue is not whether Council is willing to spend whatever amount, but it's not going to be free; there is a risk; if the City loses in Court, it will cost money to pay the legal costs; nothing is risk-free in the legal arena. Elizabeth Roth, Alameda, questioned the process [of the poll], and she believes it poor practice to set out how far Councilmembers will go in court when potential court opponents are in the audience. George Broder, Patrick Media Group, commented, for the record, the two companies are new, not Foster & Kleiser and Eller Outdoor with whom the Agreement was made; the 1980 agreement did allow for the September 17, 1991 91 change in State law which does allow for just compensation for the forced removal of billboards; a proposal has been offered to the City for the systematic removal of structures [billboards]. Steve Shinn, Gannett Outdoor Co., noted the company is only a small subsidiary of the Gannett newspaper chain, concurred with Mr. Broder's comments; stated it is the intent of his company to work with Alameda; does not wish costly litigation; but the Agreement does state the right to review the Agreement and consider other legal means, and which steps they have taken. Don Roberts, Alameda, stated the companies have received millions of dollars of income from the signs, which covers just compensation, and concurs with Councilman Arnerich's comments. Patty Jarratt, Alameda, stated she wants the billboards down because as she walks her children to school, they see billboards promoting cigarettes, etc.; also some businesses cannot be seen because of the billboards; and some billboards do not appear to be earthquake - proof; and she would like to know who determines which billboards come down and at which time. Rosemarie Bremann, Alameda, stated the billboard companies should live up to the Agreement, and inquired into Councilmember Camicia's reasoning. Councilmember Camicia stated the 1980 Agreement is not worthwhile and believes the billboards could come down if a new Agreement is written, and secondly the new Agreement should require a performance bond. Mrs. Bremann stated she presented a petition from Park Webster Homeowners to Council to stand by the Agreement and do whatever possible to enforce the Agreement and get the billboards down and secondly, the pledge is that those persons will buy nothing advertised on those billboards. Councilmember Lucas stated Council should follow Ms. Roth's advice and not comment on the legality of the Agreement as it is not good practice. The City Attorney stated that since the City may go into litigation on this matter, perhaps litigation strategies and like matters should be reserved for Closed Session. President Withrow agreed; and stated he is willing to permit some disadvantage in order to allow the citizens to understand what is happening. James Sweeney, Alameda, stated he would like context; Redevelopment Plan and General Plan for the West End; the City must proceed; cannot be separated from general welfare; the litigation to remove billboards; the City has and now must move ahead. to put the matter into set out what is desired aesthetics, economics one promising avenue is been patient ten years; September 17, 1991 9 Kurt Stein, Alameda, stated Councilmembers who are sincerely interested [in removal of billboards], and those who have other motives, can be discerned, and will be remembered during an election. Stephen Freitas, Alameda, Patrick Media, stated billboards are the masterpiece medium of advertising, are handpainted artwork, should never come down, are part of Americana; and read a letter from South Shore Travel noting increase in business since advertising on billboards. Diane Coler-Dark, Alameda, stated the billboard companies are refusing to honor past commitments so why would anyone believe they would honor a new one; noted a citation that an ordinance prohibiting existing billboards may be enforced as a constitutionally valid exercise of the States police power which does not require compensation if a reasonable amortization period for discontinuance of the use is provided. Robert M. Wood, Alameda, stated pride was what he felt in August when he read the billboards would be coming down; Alameda is not banning billboards but enforcing a law, the sign ordinance; is exercising its rights as a community to uphold some design standards, the sign ordinance does not ban billboards, allows them, but within certain parameters; if Council decides the billboard companies need not live by the ordinance, the ordinance must be discarded for other businesses; the City is within its rights and must proceed. Stan Shane, Alameda, stated Tahoe Regional Planning Agency won an appeal to remove billboards, signed September 6, 1991, and talk of First Amendment rights was not heard from anyone; suggested attorneys and billboard persons drop legalese and comply with the Agreement. Don Patterson, Alameda, stated billboards directly affect the City, are citizens' image of their community, their aesthetics, psychological and emotional being, and most importantly, the business climate of this community and the ability to not only keep but attract new businesses; and questioned what message Council is sending to citizens and business community at this point. Councilmember Camicia stated he wants the billboards down; has options put together: First Option) all the billboards should be removed by end of December, 1991, Second Option) a phased removal of billboards through 1994, 9 of the 30 structures by end of 1991, and phasing out remainder through 1994, and the company provide a surety bond for non-compliance in the amount of $500,000 if the signs are not removed; and requesting $25,000 by the end of this year; Third Option) essentially is the same option and just extends the time through 1995; Fourth Option) again, is essentially the same, extends it through 1996. Councilmember Roth inquired which option is favored and Councilmember Camicia replied he favors Option No. 1, otherwise No. 2; he would like to see the boards down by the time Redevelopment starts moving, about 1994-95. September 17, 1991 9 Councilmember Roth inquired if Messrs. Shinn and Broder could express an opinion on it. President Withrow stated Council cannot negotiate; and requested the City Attorney to address the matter. The City Attorney stated the majority of Council can discuss anything in open session, as there is no legal prohibition but a policy decision. By consensus, Council agreed to extend the Meeting past 11:00 p.m. Councilman Arnerich moved the City proceed very quickly and "do whatever is necessary to have the billboards removed, and go to court; and do whatever is necessary to keep the Agreement that was made with the people of the City of Alameda." Councilman Arnerich [restated his previous motion] that the billboards come down in agreement with the Settlement Agreement between the billboard company and the City. Councilmember Lucas seconded the motion. Councilmember Lucas stated she considers the chances of the City in Court to be much greater that what was discussed tonight; the City Attorney has secured the services of an attorney from the City of Santa Cruz which was successful in getting rid of all their billboards; believes the City has a chance of prevailing at a very reasonable cost; it is amazing to hear the billboard supporters speak of art and First Amendment rights; the profit figures have been so high, that may also be a motivation to keep the billboards; regarding amortization, the Judgment in the City's favor stated the billboards had been amortized in 1980, so there is no basis to request additional amortization; and that is why she is a strong supporter of Mr. Arnerich's motion. Councilmember Camicia stated the motion is appropriate, but he would like to find a way to get the signs down without going to Court; the chance of winning is great, but there is also a good chance of losing. Councilmember Roth stated three current billboard lawsuits exist, two filed by billboard companies, one by the City; it appears Council and citizens want the boards down; believes the City has a strong case and will win; believes billboard company knows it will lose, and that matter can be dragged out in court; the Agreement is already broken because billboards were not down by September 1st; the matter is going to court October 7; money is not an issue its principle; the two representatives in the audience can tell Council what will be necessary to get the billboards down; the companies have made an offer not acceptable to Council; their recent offer has not been voted on; Councilmember Camicia has proposed, Option 1, that the City September 17, 1991 receive no money, billboard companies pay City's legal fees and associated costs, and all signs come down by December 31, [1991]; that may be the earliest the Court could affect billboard removal, so why not ask them if the billboard companies are willing to do that. Councilmember Lucas stated she has no objection to Councilmember Roth querying the two representatives whether they are willing to take the billboards down by December 1991. Mr. Broder stated at this time, he would not make that commitment to comply with Option 1: removal of all billboards by December 31, 1991. President Withrow questioned how Mr. Broder justifies not taking the billboards down on September 1st. Mr. Broder stated there are several reasons why; the City Attorney did contact the companies numerous times; the City was contacted; in June, a letter was written to the Mayor referencing the September 1, 1991, deadline for the Agreement, requesting a meeting with the Mayor or appropriate members of Council or City Officials to discuss September 1st deadline in detail; brought to the attention of Council and City, the changes in State law, that there were new successor interest companies involved now, and that the objective was to resolve the Settlement Agreement without litigation; the 1980 Agreement allowed for possible changes in State law which did occur; the initial proposal discussed with Councilmembers Camicia and Arnerich failed to receive Council's approval, so on the Friday before September 1st deadline, the companies went to Court to protect their legal rights, seeking declaratory relief, asking the Judge to explain the companies' rights, obligations and responsibilities under the Agreement, given the changes in State law; compliance with the September 1st deadline did not occur because of the reasons set forth; the companies continue to be present, seeking to resolve the matter but he cannot commit for his company, to comply with Option 1. Councilmember Lucas requested for the record, to hear Mr. Shinn's statement on Option 1. Mr. Shinn, Gannett Outdoor, stated, for his company, Option 1 would not be acceptable at this time, but would be willing to discuss Options 2, 3 and 4. Councilmember Roth stated if the City goes to Court, and the case lasts 3 years, during that period the company will gross approximately $750,000; if the company lost the case, [the company would] pay the City the $86,000 the contract calls for, and legal fees. If the company took down eleven signs by October 1st, agreed to take down eleven signs in six months, and the remainder by the end of one year, the company would gross $117,000, with $35,000 gross profit and no lawyer fees to pay; signs would be gone; lawsuits would be dropped; the Good Faith [effort] is that eleven would be down by October 1st, and by the October 7th court appearance, the Judge would know the City agreed to the phase-out and would take care of the contempt [proceeding]. September 17, 1991 995 Councilmember Lucas requested dates be repeated; and Councilmember Roth clarified by October lst, 11 signs would be down and an Agreement would be signed that 11 more would be down in six months and the remainder in one year. There would be no money changing hands; the attorneys could work out the agreement if the companies are willing to do that. Mr. Broder asked to be excused for a moment, stating there is a technical aspect of this discussion that relates to the physical ability of the removal of those structures. Councilman Arnerich referred to letters dated January 20, 1990, written by the City Attorney to the new companies, to let the companies know that the City intends to enforce the Settlement Agreement and requires removal of the advertising displays on or before September 1, 1991; stated the first letter City received back was in August, 1991, and inquired what took the companies so long to respond. Mr. Shinn stated until June, it was true a response was not sent. [Time was given for the technical aspect to be considered by the companies as requested.] Mr. Broder suggested the following: 10 billboards down by December 1, 1991; 10 by April 1, 1992 [from October 1, 1991] and 10 by October 1, 1992. Councilmember Lucas requested the City Attorney obtain a continuance in order to keep the contempt proceeding pending until some compliance can be seen. The City Attorney stated the City could have an agreement for the next Council Meeting or get a continuance for the contempt proceeding, perhaps jointly stipulate to continue for a month. Councilmember Lucas stated she did not want to withdraw the until 10 billboards are down. Councilmember Roth agreed, stating that is why he asked October 1st [Council] meeting; that the agreement needs to out and Council could review it. Councilmember Lucas stated the companies say they cannot billboards down by October 1st. Councilmember Roth stated the process could be accelerated City government, e.g., permit fees could be waived. The City Attorney stated an agreement could be brought back for the Council whereby the Settlement Agreement could be further amended, also agree to a further continuance date, or to not object to a continuance date after December 2nd; some type of legal agreement could be worked out. contempt for the be worked have the within the September 17, 1991 e President Withrow inquired if the City Attorney is comfortable regarding the intent, to which the City Attorney replied she understands the intent. Councilmember Lucas withdrew her second to the motion and inquired if Councilmember Roth wished to make a new motion. Councilmember Lucas stated she would like to hear for the record that Mr. Shinn agrees for his company. Mr. Shinn stated for the record, he agrees for Gannet Outdoor to the same guidelines as Mr. Broder outlined. Councilman Arnerich stated the process has been watered down, he cannot deviate from his original motion, and he will not support any motion. Councilmember Roth moved the companies start taking down ten structures; to be down by December 1, 1991; ten structures by April 1, 1992; and by October 1, 1992, all structures to be down; an agreement will be entered into by October 1, 1991, and the lawyers would determine the legalese protecting rights as to holding contempt; they would drop their lawsuits and Council would review [Agreement] at the October 1st Meeting. Councilmember Lucas stated the contempt proceeding would be kept intact until after the first ten structures come down. Councilmember Roth responded the whole agreement should be written that at any time they want to break [Agreement], the contempt [proceeding] can be entered into. Councilmember Camicia seconded the motion, commended Councilmember Roth and the company representatives for the great job; and commented Council is bringing the billboards down and saving a large expenditure in legal fees. The motion carried by the following voice vote: Ayes: Councilmembers Camicia, Lucas, Roth and President Withrow - 4. Noes: Councilman Arnerich - 1. Absent: None. 91-680 Consideration of a nomination for appointment to the Golf Commission. Mayor Withrow noted 27 applications were received for the two Commissions, he interviewed all but two people and has attempted to reach those two by telephone. Mayor Withrow nominated Edward W. Trevathan to the Golf Commission. Councilman Arnerich seconded the nomination. 91-681 Consideration of two nominations for appointment to the Recreation Commission. The City Clerk requested Applicant Lawrence Arnolie be disqualified as he is not a resident of Alameda, though he works at the Navy Base. September 17, 1991 297 Mayor Withrow nominated Toby Chavez for reappointment, Gail Wetzork for appointment, to the Recreation Commission. 91-682 Councilmember Lucas requested a resolution on the next Agenda requesting the Post Office to provide a drop mailbox in the West End, and suggested Central Avenue and 4th Street traffic island. ADJOURNMENT 91-683 President Withrow announced that Tom Matthews, Executive Director of the Housing Authority, is recuperating from a very serious operation and Council wishes him the very best and a speedy recovery; the Deputy City Clerk's husband is seriously ill, and Council wishes her the best and a speedy recovery to her husband; and, at the request of Councilmember Camicia, adjourned the meeting in memory of Franz Collischonn, former Mayor of Alameda, at 11:45 p.m. Respectfully submitted, DI E B. FELSCH, CMC City Clerk The agenda for this meeting was posted 72 hours in advance. September 17, 1991