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SUMMARY: Approve Actions Related to Proposed Alameda Open Space Fiscal Responsibility Measure
Recommendation to Consider Options Pertaining to the Alameda Open Space Fiscal Responsibility Ordinance Pertaining to the Initiative Measure to Amend City of Alameda General Plan Including the 2007-2014 Housing Element and the Zoning Ordinance to Classify Approximately 3.899 Acres of Land Adjacent to McKay Avenue to Open Space: Option 1 - Adopt the Ordinance; Option 2 - Adopt a Resolution Submitting the Measure to the Voters, Decide Interest in Drafting Arguments and Direct City Attorney to Prepare Impartial Analysis; or Option 3 - Take No Action. (City Attorney 2310)
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To: Honorable Mayor and Members of the City Council
From: Janet C. Kern, City Attorney
Re: Consider Options Pertaining to the Alameda Open Space Fiscal Responsibility Ordinance Pertaining to the Initiative Measure to Amend City of Alameda General Plan Including the 2007-2014 Housing Element and the Zoning Ordinance to Classify Approximately 3.899 Acres of Land Adjacent to McKay Avenue to Open Space: Option 1 - Adopt the Ordinance; Option 2 - Adopt a Resolution Submitting the Measure to the Voters, Decide Interest in Drafting Arguments and Direct City Attorney to Prepare Impartial Analysis; or Option 3 - Take No Action
BACKGROUND
There is a 3.899 acre parcel of real estate located south of Central Avenue and to the west of McKay Avenue which is owned by the Federal Government (the "Site"). In 2011, the Federal Government consolidated certain of its operations in Alameda and decided to sell the Site.
The East Bay Regional Park District ("EBRPD") has indicated an interest in acquiring and developing the Site and represented to Alameda residents that it would allocate over $6 million in Measure WW funds for that purpose. Measure WW was approved by the voters in 2008 providing EBRPD with funds to acquire and develop parks and supporting facilities including the Site.
On June 1, 2011, the General Services Administration ("GSA") conducted a public online auction to sell the Site. As a result, GSA entered into a purchase agreement for the Site with STL Company LLC of Roseville, California, obtaining a sales price of $3,075.000. The Site is included in the City's 2007-2014 Housing Element as part of the inventory of sites available for possible housing development. It is currently zoned for multi-family and single-family residential uses. That zoning does not preclude converting the Site for park purposes should EBRPD acquire ownership of the Site.
On February 10, 2014, a Notice of Intent to Circulate a Petition was filed in the City Clerk's Office with the intent of gathering sufficient voter signatures to place a measure on the November ballot to change the General Plan and Zoning Ordinance designations for the Site to Open Space. On April 30, 2014, the petition was filed with the City Clerk and transmitted to the Registrar of Voters to examine the signatures. Based on a random sample examination, the Registrar determined that the initiative petitions contain sufficient valid signatures. Copies of the Initiative and related documents are available as attachment to Item 6-F on today's agenda.
On June 3, 2014, the City Council directed City staff to prepare an Impacts Analysis pursuant to California Elections Code Section 9212 which would provide information as to the potential impacts of the Initiative, if passed, on the City (the "Impacts Report"). At the same time, the City Council directed City staff to bring forward a possible companion measure aimed at insuring that scarce City financial resources would be protected from possible legal actions spawned by the Initiative. There is precedent for such protective action as a similar companion measure had accompanied the Alameda Belt-Line Open Space Initiative placed before the voters in 2002. As a result of that 2002 election, both the open space initiative and the companion fiscal responsibility measure were approved by a majority of the votes cast by Alameda voters.
DISCUSSION
The City Attorney drafted an "Alameda Open Space Fiscal Responsibility Measure" (the "Measure") (Exhibit 1) to provide a measure of protection from the possibility that the adoption by the electorate of the "Initiative for Measure to Amend City of Alameda General Plan including the 2007-2014 Housing Element and the Zoning Ordinance to Classify Approximately 3.899 acres of Land adjacent to McKay Avenue to Open Space" (the "Initiative") will not impose on the City of Alameda (the "City") an unfunded liability relating to the Site. As described in the Impacts Report which is an attachment to Item 6-F on today's agenda, there is a risk that if the Initiative is passed, the City could be subject to litigation from property owners of the Site who would assert that the down-zoning caused them financial and compensable harm. To protect against the possibility of the City being forced to divert potentially millions of dollars of City revenues currently used for City parks, libraries, police, fire and other City services to defend and pay a judgment if such a legal claim was brought and the City did not prevail, this Measure should be considered.
This Measure is designed to be operative and provide the City options in the event that legal action is brought against the City as a result of the Initiative and the City is unsuccessful in defending against that legal action. The Measure does not modify or alter the Initiative. The Measure only seeks to provide fiscal security to the City. The City Council may: 1) adopt the ordinance (Exhibit 2); or 2) approve the resolution (Exhibit 3) submitting the measure to the voters on the November ballot; or 3) simply do nothing.
If the City Council adopts a resolution placing the measure on the ballot, State election law allows the City Council to determine its interest in authoring an argument for printing in the sample ballot. Direct arguments can be no more than 300 words and signed by no more than five registered voters. Rebuttal arguments cannot exceed 250 words and can also be signed by five registered voters. If the City Council wishes to draft an argument, there are options regarding the preparation of direct and rebuttal arguments. The City Council may: 1) draft an argument as a whole body in open session; 2) authorize up to two Councilmembers to draft an argument and have the entire Council sign; 3) authorize up to two Councilmembers to draft an argument and have a combination of Councilmembers and other eligible voters sign; or 4) authorize up to two Councilmembers to draft an argument and have up to five eligible voters sign. Additionally, the City Attorney is required to prepare an impartial analysis not exceeding 500 words in length to be printed in the ballot.
FINANCIAL IMPACT
The estimated cost of placing the Measure on the November 4, 2014 ballot is approximately $5,000 for the translation, typesetting and printing the measure. The funds for the election are budgeted in the City Clerk's election account (2220-61060).
ENVIRONMENTAL REVIEW
Adoption of the Open Space Fiscal Responsibility Ordinance is exempt from the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines Section 15378(b)(4) which excludes from the definition of "project" fiscal activities that do not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. As a separate and distinct ground, the action is also exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3) which provides that a project is exempt from CEQA where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.
RECOMMENDATION
Consider Options Pertaining to the Alameda Open Space Fiscal Responsibility Measure Pertaining to the Initiative Measure to Amend City of Alameda General Plan Including the 2007-2014 Housing Element and the Zoning Ordinance to Classify Approximately 3.899 Acres of Land Adjacent to McKay Avenue to Open Space:
Option 1 - Adopt the Ordinance;
Option 2 - Adopt a Resolution submitting the Measure to the voters, decide interest in drafting arguments and direct City Attorney to prepare Impartial Analysis; or
Option 3 - Take No Action
Respectfully submitted,
Janet C. Kern, City Attorney
Financial Impact section reviewed,
Fred Marsh, Finance Director
Exhibits:
1. Alameda Open Space Fiscal Responsibility Measure
2. Ordinance enacting Alameda Open Space Fiscal Responsibility Measure
3. Resolution submitting the Measure to the voters