2004-08-04 CIC MinutesMINUTES OF THE SPECIAL COMMUNITY IMPROVEMENT COMMISSION MEETING
WEDNESDAY- -AUGUST 4, 2004- -5:35 P.M.
Chair Johnson convened the special meeting at 6:36 p.m.
ROLL CALL - Present: Commissioners Daysog, Gilmore, Kerr,
Matarrese and Chair Johnson – 5.
Absent: None.
AGENDA ITEM
(04-042) Update on the Catellus/Bayport Project.
The Base Reuse and Redevelopment Manager gave a Power Point
presentation.
Commissioner Kerr stated the insurance company has indicated that
the Navy should pay for unknown environmental contamination;
inquired what is preventing the insurance company from paying the
City.
The Base Reuse and Redevelopment Manager responded the insurance
company is being extraordinary thorough in requests for information
to justify the $3.4 million claim; the City has been put through a
number of hoops to gather information; 95% of requested
documentation has been provided; staff is working on the last few
items; although the claim has not been paid, the insurance company
has already sued the Navy; the City will be reimbursed by the
insurance company regardless of whether the insurance company
receives money from the Navy.
In response to Chair Johnson’s inquiry about the length of the time
of the claim process, the Base Reuse and Redevelopment Manager
stated twelve months; partial reimbursement has been received.
Chair Johnson inquired whether the insurance company is paying
interest during the time the claim is being processed, to which the
Base Reuse and Redevelopment Manager responded in the negative.
Chair Johnson stated the City should ensure a date is set for
payment.
Commissioner Matarrese stated the insurance company cashed the
City’s premium check; that he has a hard time understanding why the
City cannot demand payment.
The Base Reuse and Redevelopment Manager responded the City has
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August 4, 2004 1
submitted documentation; the insurance company reviews the
documentation and requests more information; the process has been
lengthy; however, the insurance company has not indicated payment
will not be made.
Legal Counsel stated insurance companies require extensive
documentation; the insurance company has been cooperative; the
claim has been accepted; the company will pay; the $90,000 premium
was an excellent investment; the claim was filed within six months
of establishing the policy; cleanup took time.
Chair Johnson inquired when payment could be expected.
The Base Reuse and Redevelopment Manager responded before the end
of the year; stated demolition work took six months; the
construction contractor had to be paid before the City could
provide proof of incurring cost; in addition, the insurance
company’s environmental scientists have to review all
documentation.
Chair Johnson inquired whether undisputed portions could be paid,
to which Legal Counsel responded the claim could be segmented;
however, there are only a few more items which the City has to
submit; the City will be paid the full amount within the next
several months.
Commissioner Matarrese inquired what are the chances of being able
to procure insurance for the next project, the Base Reuse and
Redevelopment Manager stated the City has environmental insurance
at both Alameda Point and the Fleet Industrial Supply Center.
The Base Reuse and Redevelopment Manager continued her Power Point
presentation.
Commissioner Kerr inquired the number homes that have been sold
prior to construction, to which the Base Reuse and Redevelopment
Manager responded sixty homes.
In response to Commissioner Kerr’s inquiry regarding the prices,
the Base Reuse and Redevelopment Manager stated the lowest price
was $690,000 and the highest was $917,000.
Chair Johnson inquired the number of homes in the first phase, to
which the Base Reuse and Redevelopment Manager responded Catellus
purchased 197 lots; permits have been issued for 75 homes; homes
are being sold by lottery; the demand is overwhelming.
Commissioner Matarrese inquired whether the Navy is aware of the
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August 4, 2004 2
home sale prices.
The Base Reuse and Redevelopment Manager responded in the
affirmative; stated the land sale proceeds have been spent very
appropriately on planning, infrastructure improvements, and
demolition.
In response to Chair Johnson’s inquiry of how many homes would be
occupied by the end of the year, the Base Reuse and Redevelopment
Manager stated thirteen units would be absorbed in October.
ADJOURNMENT
There being no further business, Chair Johnson adjourned the
special meeting at 7:08 p.m.
Respectfully submitted,
Lara Weisiger
Secretary
The agenda for this meeting was posted in accordance with the Brown
Act.
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August 4, 2004 3