HomeMy WebLinkAboutMinutes 1988-02-17 Mayor Jack Drago
Council:
Mark N. Addiego
Richard A. Haffey
Gus Nicolopulos
~Roberta Cerri Teglia
MINUTES
City Council
Sewage Treatment Plant
195 Belle Air Road
February 17, 1988
0057
AGENDA
ADJOURNED REGULAR MEETING
CALL TO ORDER: (Cassette No. i Side A)
ROLL CALL:
AGENDA REVIEW
Vice Mayor Teglia arrived:
Motion to waive further reading
of the Ordinance; motion to intro-
duce the Ordinance; adoption of
a Resolution cancelling the
4/12/88 Special Municipal Election
for the Orange Park Expansion;
adoption of a Resolution.
1st Reading/Introduction
AN ORDINANCE REPEALING ORDINANCE
NO. 1027-88 AND CANCELLING THE
SUBMISSION OF A PROPOSITION OF
INCURRING BONDED DEBT FOR THE
PURPOSE OF THE ACQUISITION,
CONSTRUCTION AND COMPLETION OF
ORANGE MEMORIAL PARK IMPROVEMENTS TO
THE QUALIFIED VOTERS OF THE CITY OF
SOUTH SAN FRANCISCO
A RESOLUTION RESCINDING PREVIOUSLY
ADOPTED RESOLUTIONS CONCERNING A
SPECIAL MUNICIPAL ELECTION FOR THE
PURPOSE OF SUBMITTING TO THE VOTERS
A PROPOSITION CONCERNING ISSUING
GENERAL OBLIGATION BONDS FOR
ORANGE MEMORIAL PARK
®
Discussion of the Park Maintenance
District Funds. (Cassette I Side B)
ACTION TAKEN
ADJOURNED REGULAR MEETING
7:09 p.m. Mayor Drago presiding.
Council present:
Council absent:
Addiego, Halley,
Nicolopulos, and Drago.
Tegl i a.
AGENDA REVIEW
City Manager Lewis stated that he had
nothing to add or delete from the agenda.
Vice Mayor Teglia arrived at 7:11 p.m.
City Clerk Battaya read the title of the
Ordinance in its entirety.
M/S Haffey/Addiego - To waive further
reading of the Ordinance.
Carried by unanimous voice vote.
M/S Teglia/Haffey - To introduce the
Ordinance.
Carried by majority voice vote, Haffey
voted no.
M/S Addiego/Nicolopulos - to adopt the
Resolution.
RESOLUTION NO. 22-88
Carried by majority voice, Halley voted
no,
Deputy City Manager/City Engineer Yee
stated that there were four Common Greens
Districts: West Park i & 2 (10.7 acres),
West Park 3 (28 acres), Stonegate Ridge
2/17/88
Page i
2. Discussion - Continued.
(3 acres), and Willow Gardens (2.4
acres). He stated that the maintenance
of the four districts was $442,000 with a
total revenue of $54,000 from the
Augmentation Fund.
He spoke of a meeting he and the City
Attorney had attended with the County
Assessor to determine the augmentation
formula and City options. He explained
the various problems after Proposition 13
had been enacted: that it stopped indi-
vidual district funding, and put all of
the money into a County Fund; that it
established the augmentation fund; that
the Council had to hold a public hearing
to distribute the augmentation funds to
the districts that needed the money, etc.
He stated that the City did not have a lot
of reserves to balance the expenditures
and only had enough to deal with the
yearly expenditures. He spoke of repair
problems within the common greens, such
as irrigation, lighting, concrete paths,
structures, and the replacement of trees
that could amount to $1,000,000 or more.
Councilman Nicolopulos stated that each
homeowner in a district had been assessed
to maintain the common greens, and
questioned if that was still true.
Deputy City Manager/City Engineer Yee
stated that since Proposition 13 the City
was prevented from further assessing the
homeowners.
City Attorney Armento stated that pre-
viously the Council had set a rate each
year based on the property evaluation, 5~
per thousand or whatever, and that after
Proposition 13 came in and talked about
ad valorem taxes, the County revamped the
system based on their understanding of
the ad valorem taxes. She stated that
since that time there had been additional
laws and case laws that said, when you
have special districts you can still
impose taxes on the special district, but
it must be done based on the estimated
benefit to the parcel as opposed to ad
2/17/88
Page 2
AGENDA ACTION TAKEN
Discussion - Continued.
valorem. She proceeded to cite methods
to impose a tax equally on all parcels
that are a benefit to the entire
district, rather than to the City.
Discussion followed: how the deter-
mination of an assessment would be made
and by whom; that staff would give input
on the needed improvements to Council,
who in turn would make the determination
- if the improvement would uniformly
effect everyone; improvements to stair-
ways, pathways and green areas that may
not be of benefit to the entire
district; that staff wanted Council
direction on this item to solicit bids,
because the contractor was on a month to
month basis without a contract; that
staff was suggesting that the special
district augmentation funds be distri-
buted, as well as making many recommen-
dations, i.e., 1) continue with the
present landscape contractor month to
month; 2) call for bids for a new
contract for all the common greens; 3)
call for separate bids for each of the
common greens or for two or more
together; 4) consolidate the districts
into one district.
Further discussion followed: the augmen-
tation formula used by the County; that
in reality there were five special
districts in the City - not four; that
the Parking District would also qualify
under the guidelines mentioned; compli-
ments to the City Attorney on finding
ways to increase revenue; types of
assessment formulas used in the four
districts; set levels of service in each
district according to what the property
owners needed before setting tax rates;
having Willow Gardens revert to the pro-
perty owners; changing the boundaries of
a district; that the maintenance
districts fund balance was $6,000 short
and needed augmentation funds; that
$1,000,000 was needed to update all of
the districts for sidewalks, irrigation,
play equipment; that staff must identify
the needs in service levels in each of
the districts, and the sources to
2/17/88
Page 3
Discussion - Continued.
increase revenues; the type of additional
tax needed to raise the service levels in
the districts; that the common greens had
deteriorated, etc.
Mr. Barnes, Cagwin & Dorward, spoke of
the work being done by his company on the
common greens; keeping the laws green and
mowed, pruning on a routine basis, and
making improvements to the various plant
material within the confines of the
budget.
Superintendent of Facility Maintenance
Bordi spoke of the common greens being
easier to maintain when the area was new
and the standards were high. He stated
that after Proposition 13 the staff had
been cut, and that over the years things
had gotten out of hand. He stated that
this was when Cagwin & Dorward had taken
over the contract, and had five men to
handle 42 acres.
Deputy City Manager/City Engineer Yee
stated that the Council needed to give
direction on the augmentation fund in
order to close out this fiscal year.
Councilman Haffey stated that he could
not go along with that without infor-
mation from staff on the levels of ser-
vice, as well as, what tax rate should be
set for the districts to establish reser-
ves for maintenance service.
Discussion followed: that if there was
input from the homeowners on the service
levels, there could be an endorsement of
a tax being set; that the County notified
the City in September as to what the
augmentation funds were, and the Council
could have taken action in November - and
the City Attorney encouraged Council to
take action on the funds before the end
of the fiscal year; that a public hearing
had to be called, wherein Council must
decide on the distribution of the funds
to the four districts; that staff should
provide information to Council before the
public hearing was held.
2/17/88
Page 4
AGENDA ACTION TAKEN
0 O ,'?
Discussion of needed improvements
to the Sewage Treatment Plant.
(Cassette 2 Side A)
Deputy City Manager/City Engineer Yee
described in detail several major pro-
jects being considered for the near
future: Shaw Road Pump Station
Diversion; Co-Generation (Gas
Utilization); Sludge Thickener;
Dechlorination Conversion; Titlo (Sludge
Disposal); that the funding for improve-
ments could come from the sewer fund or
from bond obligations (the documentation
of the proposed expenditures, and sewer
fund balance projects are a permanent
file in the City Clerk's Office for
public inspection).
He spoke of the age of various equipment
to be replaced in different phases which
in total would cost $5,000,000 over a
five year period. He stated that because
money was a problem for the improvements,
the two alternatives for funding had been
presented.
Discussion followed: that the needed
improvements could encompass $7,000,000;
that the downtown parking would also be
an expenditure issue in the future; that
the sewer fund was an enterprise fund;
that the sewer expenditures were a
necessity; that toxicity at the plant was
an important issue, as well as, the
sewage discharge being safe environmen-
tally;.that the Merck Co. had changed
their chemical composition; that the
Tillo process had been patented, and the
patent had expired; that Tillo took care
of all of the sludge, and as a result the
City did not have to use the centrifuge;
that the Tillo contract had expired
12/31/86; that there was a proposal for a
new five year contract with Tillo for the
removal of sludge from the Plant -- that
Tillo would be responsible for all
operating costs incurred including
purchase of rice hulls, and the City
would pay Tillo $220,000 with an increase
of 3% per year, etc.
Discussion followed: a breakdown between
residential and commercial sewer revenue
sources; the Capital Improvement Budget
in relation to small sewer plant improve-
2/17/88
Page 5
AGENDA ACTION TAKEN
Discussion - Continued.
GOOD AND WELFARE
CLOSED SESSION
Closed Session for the purpose of
the discussion of personnel
matters, labor relations, property
negotiations and litigation.
RECALL TO ORDER:
ADJOURNMENT:
ments; raising sewer rates 14.5% for each
of the projected five years; that the
sewer fund reserves were $2,000,000 for
1986-87, and $1,001,000 for 1987-88
fiscal years; borrowing $5,000,000
through a twenty year revenue bond issue
which would amount to a 62% increase for
sewer rates; raising sewer connection
fees; the reserve capacity of the system;
concern over sewer funds being diverted
to M.O.U.s.
GOOD AND WELFARE
No one chose to speak.
CLOSED SESSION
Council adjourned to a Closed Session at
9:30 p.m. to discuss the items noticed.
Mayor Drago recalled the meeting to
order at 10:10 p.m., all Council present,
no action taken.
M/S Addiego/Haffey - To adjourn the
meeting.
Carried by unanimous voice vote.
Time of adjournment was 10:11 p.m.
RESPECTFULLY SUBMITTED ,
Barbara A. Batt~erk
City of South San Francisco
APPROVED.
//~ity of South San Francisco
The entries of this Council meeting show the action taken by the City Council to dispose
of an item. Oral communications, 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.
2/17/88
Page 6