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HomeMy WebLinkAboutMinutes 1982-12-13Mayor Roberta Cerri Teglia Vice Mayor Mark N. Addiego Council: Ronald G. Acosta Emanuele N. Damonte Gus Nicolopulos ADJOURNED REGULAR MEETING CALL TO ORDER: (Cassette l) 1. Items of mutual concern. MINUTES CITY COUNCIL Oyster Point Yacht Club Oyster Point Marina December 13, 1982 ADJOURNED REGULAR MEETING 7:00 p.m. Mayor Teglia presiding. Council present: Acosta, Nicolopulos, Addiego, Damonte and Teglia. Council absent: None. Oyster Point Policy Board Members Present: Boerio, Farnow, Flocks, Fuller and Lee. Absent: None. Chairman Flocks requested that the General Manager give an overview on the Concept Plan of the Marina. General Manager McClellan presented a redrawn Master Plan which incorporated all of the changes made in the Project since November 1977. He cited in detail all of the changes: the inclusion of a hotel or motel; new street names that need to be approved by the City; the island just completed by Mr. Diodati; access for the public to the restaurants and commercial complex to be controlled; the Rod and Gun Club site being designated as a restaurant; a park adjacent to the restaurant; parking accommodations; relocating the dock area to tie in with the boat repair; parking for the fishing pier; landscaping; pathway system; BCDC requirements; breakwater configuration; fishing gear lockers; the bulb area; master road; pilings for the harbor to be funded by a separate California loan; boat storage, leachate control, etc. Mayor Teglia stated that she understood the need for revenues, however the Board could trade the restaurant for a hotel and still have a park without losing revenues. General Manager McClellan spoke of 12/13/82 Page 1 AGENDA ACTION TAKEN 1. Items of mutual concern - Cont. Councilman Nicolopulos left the meeting at 7:30 p.m. the problems with the ground and that where the hotel was projected was a site that was above the old shore line. He stated that the parking or smaller buildings would be on garbage hill. Discussion followed on higher density in putting the motel in the hotel complex; the bid process; using the site for a park; a 200 foot hotel; the project being a marina park with places to walk, fishing pier, trees ~ rather than a wild life sanctuary; the original cost estimate of the project; funding available and the sources that were ear-marked; the various phases of the project; the leachate problems and resultant costs; sources of revenue from the on-going project; operating expenses; debt service for the loans existing, etc. Discussion followed on alternatives to the project: condos, office space, residential units, creating another Marina Del Mar, etc. Chairman Flocks stated that in view of the permit process it would be very difficult to solicit people as developers when there was not a feeling from the City of concurrence in the Master Plan or design of the project. She spoke of the flood conditions in the parking lot and the leachate problems which would be costly due to inflation. General Manager McClellan spoke of the economic projections; operating costs; maintaining roads, etc. Councilman Acosta stated that in that the District was not selling the land to a developer but leasing it - how would control be maintained. General Manager McClellan stated that a clause would be put in the lease 12/13/82 Page 2 AGENDA ACTION TAKEN 1. Items of mutual concern - Cont. that the Harbor District would control the Project until it was turned over to the City and then the City would administer the Project as the leasor. Discussion followed on the DENOD loan; funds needed to repay the loan; interest payments being allowed to accumulate; foreclosure and a take over of the operation; the State pouring more money into the Project to make it viable; the deterioration of the breakwater; the parking lot sinking; building facilities to bring in revenues; having a boaters park for picnics; the City's review process; the amount of open space in the Project and potential sites for picnic tables; landscapping had been planned to make natural areas, etc. Board Member Lee stated that BCDC had reviewed the plan and minor changes had been made in the plan to comply with questions BCDC had discussed. He stated that the more important issue to be discussed was in providing security for the development. He stressed the importance of proceeding with the Project. City Manager Birkelo stated that the only alternative was to apply a Specific Plan and then Council would be the only body to act on the Plan. He stated that right now it was under the General Plan process. Mayor Teglia stated that the Harbor Commission could do that and requested an outline of the applications and the Public Hearing and appeal process would be subject to the City Council. Chairman Flocks expressed concern over the delays and stated she wanted to resolve the problems. General Manager McClellan passed out a sheet on the Joint Powers Agreement for later discussion. 12/13/82 Page 3 AGENDA 1. Items of mutual concern - Cont. (Cassette 2) ACTION TAKEN Board Member Boerio stated that the Commission's main concern.was that the Agency did not recognize special police. He stated that a request had been made for a radio for a security guard at the Marina which had been denied because the City did not want the guards using their radio frequencies. Police Chief Datzman stated that it was difficult to deal with one group that requested a radio, when in other cases the requests were denied because of other alternatives available. He stated that there had been discussions on using a portable telephone, combined with the security gate, and he felt that this would do the job. He spoke in detail of the crimes in the area which appeared to be minimal, one instance a week, with the regular police patrol in the area. Discussion followed on patrol frequency; a larger need for patrol units when the development was completed; the guard shack and the portable tele- phone; newspaper coverage of the crime in the area, without alerting the Police to the problem; the Council not being aware of the problems in the Marina; that information on the Harbor District should come from the Council members on the Policy Board; using Staff to respond to questions on the Marina from the citizenry; the request by a citizen to the Mayor for the Harbor District's financial statements year by year; that the Harbor District took control of the Marina in 1977; budget problems after the Harbor District took over the project and delays; problems with electrical wiring at the Marina not meeting City Code after it was installed and the additional cost of riping it out and replacing it; why the building inspector did not notice the wiring before it was installed, etc. 12/13/82 Page 4 AGENDA 1. Items of mutual concern - Cont. ACTION TAKEN Mayor Teglia stated that when the plans were in the pencil stage it would have been better for the District to come to the City and state that some things had to be added and then the City could have come forward with the District to BCDC. Member Boero stated that the District had gone to the Planning Department with an application that had been denied and an appeal had been made and the permit was issued. Councilman Acosta stated that the Harbor District wanted to borrow more money, and in order to do that there must be an ability to pay the money back with additional structures. He continued, the statement was made to the effect that there was a possi- bility that a loan would be made and the District needed a guaranty of some sort that the loan could be amortized in 30+ years at 7½% interest and that the hotel or motel would allow that to happen. He questioned what the District needed from the City to facilitate the additional borrowing of money. Member Boero stated that the drawing must be taken to the Planning Commission and an application filed to get the Master Plan amended. Mayor Teglia questioned why Staff had not advised Council of the existing problems. City Manager Birkelo stated that on two occasions this had been brought before Council that this was under discussion at the Policy Board and that it had been clear that the matter had to go before the planning process in the City. 12/13/82 Page 5 AGENDA ACTION TAKEN 1. Items of mutual concern - Cont. GOOD AND WELFARE Discussion followed on the time frame in completing the leachate control; the funding for the landscapping; fixing the old basin; the need to develope in order to amortize the loans; the City picking up the street sweeping and park maintenance to help the District's finances; to discuss a counter-proposal if the Planning Commission found a flaw in the plan; the parking lot sinking into the bay; the District needing cooperation of the City; the Joint Powers Agreement, etc. General Manager McClellan stated that the old agreement gave some money back to the City and placed a hardship on the District because of a payoff not coming for 60 or 70 fears. Chairman Flocks stated that the District had put in $800,000 when the Joint Powers Agreement was formed and that now the District had put in $3,600,000. She stated that the District could not keep pouring money in the Project unless, when there were revenues the District be allowed to recover some operating revenues from the Project. Discussion followed on the amendment conditions on the $800,000 was without interest; the money invested in Pillar Point vs. the Marina; funds taken from Pillar Point Project and put in the Marina which had to be replaced; having joint annual meetings between the two bodies. GOOD AND WELFARE Mr. Walter Finney questioned the priorities of the Harbor Commission in that the Commission had had the harbor for five years and few improvements had been made. He spoke of the flooding of the parking lot; chuck holes; leachate problems. Chairman Flocks stated that an entire new breakwater water had been constructed and that the leachate control had been prioritized; the Commission having a full year delay in funding; work had been done on the basin; tonight an attempt was being made to get the funds to complete the parking lot and address the basins. 12/13/82 Page 6 AGENDA ACTION TAKEN GOOD AND WELFARE GOOD AND WELFARE Mr. Finney stated that the $300,000 that the Commission was going to use for landscapping could be used for more important improvements. Chairman Flocks stated that the funding had been granted for landscapping and must be completed by April or lose the funding. She stated that in the report it was shown that the Commission needed 3.7 million dollars to improve the old parking lot and finish the basin and trench. She stated that the sewer had to be moved and the utilities had to be underground in order to do the parking lot properly so that it would last. Discussion followed on the leachate problem; what would happen to the marina if the Harbor Commission was dissolved, etc. Mr. Jim Keegan questioned how the 3.7 million dollar figure had been derived for the new basin and the rest of the Project. General Manager McClellan stated that he said for the rest of the basin and that he and Mr. Jim March had come up with the figures. Mr. Keegan stated that if it is assumed that the figure is $4,000,000 could the Commission amortize the loan and he had heard the Manager say that the debt service would be $3,000,000 and he questioned that figure. He further questioned if the Commission could earn $300,000 a year from the hotel complex. He stated that since 1973 he had been listening to the financial projections of 3 million dollars and felt it would end up to be more like 7 million dollars. He said that he remembered that the original concept had been Marina/Park and that the Park had been the concept that had sold the City on the Project. Mr. Fassarelli stated that being this is a County issue he understood that 12/1 3/82 Page 7 AGENDA ACTION TAKEN GOOD AND WELFARE GOOD AND WELFARE the County was supposed to sustain the cost and questioned the amount of money that had been expended to date on the Project; and what would be the final cost. Mr. Rene Duzak stated that the presenta- tion of the Master Plan and the high rise hotel were really unimportant unless the marina itself is build to attract developers for the complex. He stated that he had slides of a marina that the Harbor District had built and felt it was one of the poorest he had ever seen. He stated that in appearance it seemed the Harbor District had more interest in other harbors than in the marina harbor. A lengthy discussion ensued on the various harbors of the District; material and labor used on each; enterprise funds; getting the users to pay for the harbor; raising the lessees rent; the City wanting a fishing pier and a park that would not make money, etc. M/S Addiego/Acosta - To adjourn the meeting. Carried by unanimous voice vote. ADJOURNMENT Time of adjournment 10:02 p.m. RESPECTFULLY SUBMITTED, City of South San Francisco APPROVED: ~KoDer~;a berrl leg/la, ~yor City of South San Francisco The entries of this Council meeting show the action taken by the City Council to dispose of an item. Oral presentations, arguments, and comments are recorded on tape. The tape and documents related to the items are on file in the office of the City Clerk and are available for inspection, review and copying. 12/13/82 Page 8