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CityCouncil,2011-04-12,1,"MINUTES OF THE SPECIAL CITY COUNCIL MEETING
TUESDAY--APRIL 12, 2011--7:00 - P.M.
Mayor Gilmore convened the meeting at 7:50 p.m. Councilmember deHaan led the
Pledge of Allegiance.
ROLL CALL -
Present:
Councilmembers Bonta, deHaan, Johnson, Tam and
Mayor Gilmore - 5.
Absent:
None.
AGENDA ITEM
(11-181) Discuss Options Related to the Future Operation of the Chuck Corica Golf
Complex and Provide Direction to the Acting City Manager on Next Steps.
Mayor Gilmore thanked staff for bringing all options forward; stated in some ways, the
process has been very long and drawn out, but in other ways things are moving quickly.
Ben Blake, Kemper Sports Management, gave a brief presentation.
Councilmember Tam stated at the January 25, 2011 presentation, Mr. Blake stated that
spending $5 million to $5.2 million for a 27-hole configuration would be more prudent
than for 36 holes; $7.6 million is a rough estimate for 36 holes; inquired whether $5.8
million would be needed for graduated improvements for 27 holes or 36 holes, to which
Mr. Blake responded 36 holes.
Councilmember Tam inquired what has changed.
Mr. Blake responded the original 27-hole proposal was the most fiscally responsible
way to configure the Golf Course as well as being the most efficient to generate the
highest profits; stated the community did not like the idea; as part of a new solution,
Kemper Sports is willing to consider 36 holes.
Councilmember Tam stated the January 25th presentation did not focus on the Mif
Albright Course.
Mr. Blake stated that Kemper Sports would not be involved in the Mif Albright Course
and considers the Course to be separate.
Councilmember Tam inquired whether Kemper Sports has looked at the Alameda
Junior Golf Association (AJGA) term sheet, to which Mr. Blake responded in the
negative.
Councilmember deHaan stated that he couldn't calculate how a 27-hole course could
make as much money, particularly on weekends; that he is glad Kemper Sports is
considering 36 holes; inquired what Kemper Sports would anticipate for the land use
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Alameda City Council
April 12, 2011",CityCouncil/2011-04-12.pdf
CityCouncil,2011-04-12,2,"thereafter.
Mr. Blake responded the land could be converted to field use or go fallow.
Councilmember deHaan inquired whether Kemper Sports has had any dialogue
regarding the current or past Harbor Bay Isle Associates (HBIA) proposal.
Mr. Blake responded that he found out about the current initiative via the newspaper;
stated Kemper Sports has had ongoing dialogue with Harbor Bay throughout the two-
year period.
Councilmember deHaan inquired whether Kemper Sports has been involved in Club
House discussions.
Mr. Blake responded Kemper Sports was involved two years ago; stated drawings still
exist for the 27 and 36 holes as well as moving the driving range.
Councilmember deHaan inquired whether any joint effort is being done now, to which
Mr. Blake responded in the negative.
Speakers: Tim Hoppen, Harbor Bay Isle; Peter Holmes, Alameda Soccer Club; Jim
Strehlow; Alameda; Larry Newman, Alameda; Tony Corica, Alameda; Eva Hom, North
Loop Business Group; Jane Sullwold, Alameda; Norma Arnerich, Alameda Junior Golf;
Lia Marshall; James D. Leach, Global Perspectives; Jack Boeger, Alameda; Pat Bail,
Alameda; Ron Salsig; Joe Van Winkle, Alameda; Jon Spangler, Alameda; Karen Bey,
Alameda; Ed Downing, Alameda; Jerry Ghiselli, Alameda; and Alexander Stevens,
Alameda.
Councilmember deHaan inquired whether reconfiguring the south course and
repositioning the Mif Albright Course for $6 million makes sense, to which Mr. Blake
responded that he would need to know the details.
Councilmember deHaan requested clarification on why Kemper Sports changed the
configuration to 36 holes.
Mr. Blake responded a 27-hole course did not fly with the community; stated Kemper
Sports wants to do what is best for the community.
Councilmember Johnson inquired whether the issue of not being able to get financing to
put in more upfront improvements is a Kemper Sports issue or a general golf issue.
Mr. Blake responded a golf issue; stated the golf business has been on a downward
trend for a number of years; two years ago, three companies got out of the golf course
financing business.
Councilmember Johnson inquired whether anyone has been able to get financing.
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Alameda City Council
April 12, 2011",CityCouncil/2011-04-12.pdf
CityCouncil,2011-04-12,3,"David Sams, Golf Consultant, responded the golf business has been on a downward
trend since 1999; stated the trend for golf is very stagnant; gross revenue is down
almost 45%.
Mayor Gilmore inquired whether the City's option for getting an influx of cash would be
through some type of bond financing or finding a golf operator who is blessed with cash
and would be willing to put cash upfront.
Mr. Sams responded having a golf operator invest $5 million in a municipal golf course
is non-existent; stated golf will come back, but it will be very slow.
Councilmember Johnson stated older golf courses need capital improvements; inquired
how improvements would be accomplished.
Mr. Sams responded some cities put away money for golf operations; stated the
majority of cities are behind; that he does not know how improvements could be
accomplished.
Councilmember deHaan inquired whether Mr. Sams is impressed with the Golf Course,
to which Mr. Sams responded Kemper Sports is doing a very good job.
Councilmember deHaan inquired whether Mr. Sams sees another way of tackling the
Golf Course without heavy revenue infusion.
Mr. Sams responded the greens have a lot of deferred maintenance; stated San
Leandro closed down its golf course and spent $5 million building a new course.
Councilmember deHaan inquired whether the Golf Course can be competitive now, to
which Mr. Sams responded in the negative.
Councilmember deHaan inquired what the maximum rounds would be for 18-holes on a
weekend, to which Mr. Sams responded on a busy summer day, the golf courses could
have 350 players per day.
Councilmember deHaan inquired whether Mr. Sams is aware that said maximum was
not met five years ago, to which Mr. Sams responded in the affirmative.
In response to Councilmember deHaan's inquiry, Mr. Sams stated a lot of rounds are
lost on weekdays; in 1997 and 1998, 200,000 rounds were played on the two golf
courses.
Vice Mayor Bonta encouraged Council to support the idea of exploring the HBIA
proposal further; stated the proposal is cautiously intriguing; tonight, legitimate
questions and concerns have been raised; suggested that representatives of different
stakeholder groups talk through the matter in good faith.
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Alameda City Council
April 12, 2011",CityCouncil/2011-04-12.pdf
CityCouncil,2011-04-12,4,"Mayor Gilmore stated that she is intrigued with the HBIA proposal also; she has no idea
whether the proposal would work; that she insists on looking at 36-holes; she likes Mr.
Blake's suggestion to hire a golf course architect; in December, the City set aside
$100,000 as matching funds for the Mif Albright and Wadsworth Foundation grants;
there has to be room for the Mif Albright Course; thresholds need to be discussed; the
other part of the equation is what would go on the Golf Course land and whether part of
the proposal would be to swap out the land for potential all weather fields on North Loop
Road; Council needs to know whether the dirt portion of the land could be used; the
issue cannot be dragged out forever; a timeline needs to be set.
Councilmember Tam stated the issue has many complex, moving parts; time is needed
to understand the HBIA proposal; commitments have been made to the AJGA; the City
has been in active negotiations with Kemper Sports; inquired what is the critical
timeframe for the City responding to the Wadsworth Foundation.
Mr. Van Winkle responded the Wadsworth Foundation has not provided a specific date
in which to respond because positive progress has been made; stated the Wadsworth
Foundation is very pleased that the Acting City Manger negotiated a term sheet.
Councilmember deHaan stated the Mif Albright Course provides opportunities to do
different things, one being housing; a lot of other hurdles would need to be addressed if
there is feasibility; the timeframe could take six months to a year; a new Request for
Proposal (RFP) would need to go out to see if there could be a better deal; the HBIA
proposal is not new; the proposal has been in the background for a long time; the AJGA
term sheet needs to be solidified.
Mayor Gilmore inquired whether an RFP would not go out until July because of the
workload involved with the budget, to which the Acting City Manager responded her
time is dedicated to the budget.
Mayor Gilmore inquired whether the Acting city Manager could turn her attention to an
RFP starting in late June or early July, to which the Acting City Manager responded in
the affirmative.
Mayor Gilmore inquired what would be the timeline once the RFP is drafted, to which
the Acting City Manager responded that the process would take several months to draft,
issue, and receive responses.
Mayor Gilmore stated that her preference would be to go out with an RFP, have the
RFP open to everyone, and be a transparent and competitive process; golf is important
to everyone, but the budget is more important to the City as a whole.
Mayor Johnson stated time should be taken to explore the HBIA proposal; swimmers
were not able to finish the water polo season; broader issues need to be addressed;
more people should be involved with the process; swim groups should be included.
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Alameda City Council
April 12, 2011",CityCouncil/2011-04-12.pdf
CityCouncil,2011-04-12,5,"Mayor Gilmore stated that she has a problem with the ""renovate as you go"" approach
because the process would be slow; renovations would need to be done again within
ten to fifteen years.
Councilmember deHaan stated the focus should not only be on the HBIA proposal;
urged Council to visit the Golf Course on a weekend; money should have been set
aside for maintenance; all proposals should be reviewed; the process will be long; the
proposal to build 104 homes never came to Council because the proposal was rejected
by the Planning Board; the Planning Board and neighborhood had major concerns;
questioned whether placing 104 homes on the Mif Albright Course or another portion of
the Golf Course would be a concern; stated other golf courses always have surrounding
open space.
Mayor Gilmore stated the Planning Board would have to go through the entire zoning
and hearing process if homes were considered.
Councilmember deHaan stated the process could take a year and the golfing
community would be in dire straits; an RFP could be put together in thirty days,
responses would take up to sixty days, and a decision could be made within the
following thirty days.
Councilmember Johnson stated Council has been going down a path to preserve the
Golf Course for years; the biggest change is that no one has financing for the golf
industry.
Mayor Gilmore stated community members advocate for whatever the particular interest
is at the time; unfortunately, Council has to look out for the best interest of the broader
City; due diligence needs to be done for a win-win outcome; everyone wants what is
best for the youth.
Vice Mayor Bonta stated Council should go through the exploration process first and
then decide on the RFP process; Kemper Sports could be part of the discussion for
developing the concept going forward.
Councilmember Johnson stated some people are disappointed with the Kemper Sports
proposal, but people are very satisfied with how Kemper Sports runs the Golf Course.
Mayor Gilmore inquired whether the Kemper Sports proposal was a starting point and
subject to negotiations, to which the Acting City Manager responded in the affirmative.
Mayor Gilmore inquired whether aspects of the proposal that Council was not wild about
could be explored further with Kemper Sports, to which the Acting City Manager
responded in the affirmative.
In response to Vice Mayor Bonta's inquiry regarding the term sheet, the Acting City
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Alameda City Council
April 12, 2011",CityCouncil/2011-04-12.pdf
CityCouncil,2011-04-12,6,"Manager stated Council does not have to make a decision on the term sheet tonight;
tonight, Council needs to provide direction on whether to go forward with 36 holes.
Vice Mayor Bonta stated AJGA might want to explore tweaking the term sheet; the staff
report notes the term sheet requires an operator agreement, which has not been agreed
upon yet.
The Acting City Manager stated the Leased Facilities section of the term sheet
proposes that the Norma Arnerich Teaching Center and driving range practice stalls
would be available for the Alameda Junior Golf Academy, which would be run by the
new operator; however, AJGA would need to secure someone to maintain the Mif
Albright Course.
Mayor Gilmore stated Council would assume that all interested entities would have a
voice.
The Recreation and Park Director stated bringing the term sheet back after determining
the location makes sense.
Vice Mayor Bonta inquired how long it would take to craft a lease after a term sheet is
agreed upon.
The Acting City Manager responded not long; stated Mr. Van Winkle has worked on a
model.
Mayor Gilmore inquired whether the term sheet would come back for Council discussion
after the exploration phase, to which Councilmember Johnson responded in the
affirmative.
Councilmember deHaan inquired how long the exploration phase would be, to which
Mayor Gilmore responded sixty days.
Councilmember Tam stated sixty days has been requested.
Vice Mayor Bonta inquired what Council wants as a deliverable.
Mayor Gilmore responded that she would like a staff report regarding what the
consensus would be and what the 45 holes would look like in order to have a
meaningful, public discussion, and see what the proposed ball fields would look like.
Councilmember Tam stated that she would like to have all of tonight's questions
answered, in addition to those that have been emailed; she would like to know whether
stating 14.4 acres can be shoe horned into 8 acres is factual and should be considered
and how issues regarding the Kemper Sports proposal would dovetail with the Golf
Course configuration in terms of the operation.
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Alameda City Council
April 12, 2011",CityCouncil/2011-04-12.pdf
CityCouncil,2011-04-12,7,"The Planning Services Manager stated the HBIA proposal will be posted on the
Community Development page of the website; getting to a final decision point and doing
all of the environmental studies for the Mif Albright Course, Golf Course, and the Village
6 site would take approximately one year.
Mayor Gilmore suggested that the word ""golf"" be included in the title of the information
placed on the website.
Councilmember deHaan stated that he would like to be provided with detailed
information on what HBIA would plan to do with the Golf Course; information received
tonight is not adequate.
Vice Mayor Bonta stated an interim plan needs to be provided on how the Mif Albright
Course would stay open the entire time, and how golf would be interrupted the least
amount of time possible.
Councilmember Tam stated it is important to be clear that Council is not making any
decisions regarding swapping the Mif Albright Course for the North Loop Road project
but is looking at whether the moving parts fit together; there is no commitment to trade
open space for development property.
Mayor Gilmore stated open space is very precious to the City because of the limited
amount; the only reason Council is willing to entertain the HBIA proposal is because of
the potential, upfront infusion of capital cash and the potential benefit to the rest of the
Alameda sporting community.
The Acting City Manager stated staff would bring the Mif Albright term sheet back to
Council after the 60-day exploration phase of the HBIA proposal; the deliverable that
Council expects to see come out of the exploration phase is the layout of how the South
Course plus the new Mif Albright Course would work as well as the athletic facilities;
Council wants a championship golf course on the South Course; environmental
constraints, finances, and capital improvements need to be addressed; an interim plan
needs to be provided; HBIA, Kemper Sports, the golf community, and other sport
groups need to be involved.
Councilmember deHaan stated AJGA should be part of the discussion.
Mayor Gilmore stated the workload sounds very ambitious; perhaps an Off Agenda
Report could be provided; Council could give direction to increase the time line.
The Acting City Manager stated the burden would be on HBIA and community
members.
Councilmember deHaan stated the Mif Albright Course property should have a
residential appraisal.
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Alameda City Council
April 12, 2011",CityCouncil/2011-04-12.pdf
CityCouncil,2011-04-12,8,"Mayor Gilmore inquired whether an appraisal could be done in sixty days, to which
Councilmember deHaan responded in the affirmative.
Councilmember Johnson stated sixty days [to accomplish all Council direction] seems
very optimistic.
Mayor Gilmore stated Council wants to light a fire under HBIA; any extended time would
be for staff.
Councilmember Tam stated the matter has a bearing on the budget; information should
be obtained in sufficient form to ensure that it would be reflected in the budget.
Vice Mayor Bonta stated the Kemper Sports portion of the proposal would be taken out
of the equation if HBIA provides the financing for capital improvements; Council would
be able to continue to think about what the proposal would look like if Kemper Sports
were present.
The Acting City Manager stated the new Kemper Sports proposal includes contributing
$500,000 upfront for improvements; unfortunately, improvements would be made over
time.
***
Mayor Gilmore called a recess at 10:20 p.m. and reconvened the meeting at 10:27 p.m.
***
BOARD REFERRAL
(11-182) Golf Commission Report to Council
Speakers: Jane Sullwold, Golf Commission; Adam Strue; Joe Van Winkle, Alameda;
and Jon Spangler, Alameda.
Mayor Gilmore stated the Golf Course is an asset for the entire City; in the past, some
Golf Course charges were instituted because of shortfalls in the General Fund; Alameda
Municipal Power (AMP) has made transfers into the General Fund to support City
services, mainly public safety; people want to call 911 and have police or fire show up
within the usual four to six minute time frame; the Acting City Manager has addressed
some of the issues in terms of the budget plans going forward.
The Acting City Manager stated in late July, 2010, the City adopted the Fiscal Year
2010-2011 budget and a forecast for Fiscal Year 2011-2012; the Return on Investment
(ROI) went away in Fiscal Year 2010-2011, the Payment in Lieu of Taxes (PILOT)
zeroed out, and the surcharge continued to be charged for Fiscal Year 2010-2011;
initially, she was hoping that the City would have a deal by now and the Golf Complex
would be privately leased and managed, which is not the case; Council has requested
moving forward with an exploration phase; staff time would still be devoted to the Golf
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Alameda City Council
April 12, 2011",CityCouncil/2011-04-12.pdf
CityCouncil,2011-04-12,9,"Complex; eliminating the cost allocation entirely would not be prudent; appropriate
levels should be reviewed; a cost allocations study has not been done for a couple of
years; said study is on tap for Fiscal Year 2011-2012.
Mayor Gilmore inquired whether the only anticipated Golf Course charge going forward
in Fiscal Year 2011-2012 would be some number for cost allocation.
The Acting City Manager responded in the affirmative; stated an Internal Service Fund
transfer would not make sense; at one time, plans were to write off the $300,000 loan to
the Alameda Reuse and Redevelopment Authority (AARA); however, the loan will be
paid back this Fiscal Year.
Vice Mayor Bonta inquired what is being done with the PILOT and surcharge going
forward.
The Acting City Manager responded the forecast for Fiscal Year 2011-2012 zeroed out
the PILOT and surcharge, which would continue unless Council directs otherwise.
Councilmember Tam stated the Comprehensive Annual Financial Report (CAFR) is
audited every year; that she does not recall that specific transfers between the Golf
Enterprise Fund and the General Fund were flagged.
The Acting City Manager stated that she does not recall either.
Councilmember Tam stated the City has three major Enterprise Funds: Sewer, Golf and
AMP; the overall budget is approximately $208.6 million; the auditors look very carefully
regarding how fund transfers; the Golf Course is an asset for the entire City and the Golf
Enterprise Fund is treated the same as every other Enterprise Fund; money does not
disappear just because it moves from fund to fund; that she is not sure whether the
issue is a problem that she can immediately discern as requiring a solution.
Mayor Gilmore suggested forwarding the Golf Commission report to the City Auditor for
comment.
Councilmember deHaan suggested that AMP be included also.
ADJOURNMENT
(11-183) - There being no further business, Mayor Gilmore adjourned the meeting at
10:48 p.m. in a moment of silence in memory of Jesus Campos, owner of Otaez
Restaurant
Respectfully submitted,
Lara Weisiger
City Clerk
Special Meeting
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Alameda City Council
April 12, 2011",CityCouncil/2011-04-12.pdf
CityCouncil,2011-04-12,10,"The agenda for this meeting was posted in accordance with the Brown Act.
Special Meeting
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Alameda City Council
April 12, 2011",CityCouncil/2011-04-12.pdf
CityCouncil,2011-04-12,11,"MINUTES OF THE SPECIAL JOINT CITY COUNCIL,
ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY (ARRA),
AND COMMUNITY IMPROVEMENT COMMISSION (CIC) MEETING
TUESDAY-APRIL 12, 2011 - -5:30 P.M.
Mayor/Chair Gilmore convened the meeting at 5:30 p.m.
ROLL CALL -
Present:
Councilmembers / Board Members / Commissioners
Bonta, deHaan, Johnson, Tam and Mayor/Chair
Gilmore - 5.
Absent:
None.
Speakers: Jane Sullwold, Alameda; Pat Bail, Alameda; Joe Van Winkle, Alameda.
The meeting was adjourned to Closed Session to consider:
(11-177 CC) Conference with Real Property Negotiators (54956.8); Property: 1
Clubhouse Memorial Drive; Negotiating parties: City of Alameda and Kemper Sports
Under negotiation: Price and terms.
(11-178 CC) Conference with Labor Negotiators (Gov. Code Section 54957.6); Agency
designated representatives: Mayor Gilmore and Vice Mayor Bonta; Unrepresented
employee: City Manager.
(11-179 CC/11-041 ARRA/11-021 CIC) Conference with Legal Counsel - Existing
Litigation (54956.9); Name of case: SCC Alameda Point, LLC, et al V. City of Alameda
et al, U.S. District Court, case number CV 10-5178.
(11-180 CC/11-042 ARRA/11-022 CIC) Conference with Legal Counsel - Existing
Litigation (54956.9); Name of case: SCC Alameda Point, LLC. et al V. City of Alameda
et al, Alameda County Superior Court, case number RG 10537988.
Following the Closed Session, the meeting was reconvened and Mayor/Chair Gilmore
announced regarding Labor, Council provided direction on salary; regarding CV 10-
5178, direction was given to the attorneys, regarding RG 10537988, direction was given
to the attorneys, regarding Property, Council discussed price and terms of payment.
Adjournment
There being no further business, Mayor/Chair Gilmore adjourned the meeting at 7:48
p.m.
Respectfully submitted,
Lara Weisiger, City Clerk
Secretary, CIC
The agenda for this meeting was posted in accordance with the Brown Act.
Special Joint Meeting
Alameda City Council, Alameda Reuse and
Redevelopment Authority, and Community
Improvement Commission
April 12, 2011",CityCouncil/2011-04-12.pdf