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HomeMy WebLinkAboutMinutes 1988-02-10Mayor Jack Drago Counci 1: Mark N. Addiego Richard A. Haffey Gus Nicolopulos Roberta Cerri Teglia AGENDA CALL TO ORDER: (Cassette No. 1) ROLL CALL: PLEDGE OF ALLEGIANCE PRESENTATIONS Proclamation - Music In The Schools Week, March 13-19, 1988 Proclamation -Hall Fourth of Annual Fame of' sanW°men's~agq Mateo County AGENDA REVIEW ORAL COMMUNICATIONS MINUTES City Council Municipal Services Building Community Room February 10, 1988 ACTION TAKEN 7:35 p.m. Mayor Drago presiding. Council present: Council absent: Addiego, Haffey, Nicolopulos, Teglia, and Drago. None. The Pledge of allegiance was recited. PRESENTATIONS Councilman Nicolopulos read the Proclamation aloud and presented it to Mr. Attilio Tribuzi as the Band Director of South San Francisco High School. Ms. Dana Mitchell and Ms. Sherita Dunton described the various band activities, and the forthcoming trip to Canada. Vice Mayor Teglia read the Proclamation aloud. AGENDA REVIEW City Manager Lewis stated that he had nothing to add or delete from the Agenda. He introduced Mr. Joe Fernekes as the new Administrative Officer for the City. He stated that Ms. Pauline Marx had been hired as the new Finance Director. ORAL COMMUNICATIONS San Mateo County Supervisor Mary Griffin spoke of the County soliciting cities participation in curbside recycling. She stated that the County was facing a cri- ses for additional dump sites, and the present capacity was soon to be exceeded. She presented guidelines to the Council, and explained the County grant monies 2/10/88 Page I AGENDA ACTION TAKEN ORAL COMMUNICATIONS ORAL COMMUNICATIONS that cities could apply for to aid curbside recycling once a month, which must be continued for a year to be eli- gible for the grant of $25,000. She stated that it was projected that if all twenty cities embarked upon the program, that in the first year there could be a 14% savings in the volume of solid waste that is dumped on the land fill site. Mayor Drago stated that the Subcommittee, composed of Teglia and Addiego, was pre- sently negotiating with the Scavenger Co. and would explore this information. Discussion followed: that the curbside recycling could be offered with the regu- lar garbage pickup; that there was not a deadline for application for the grant; that the Council was very sincere in a follow through of this program, and the Scavenger Co. could be ready by May 1st to begin the program after further nego- tiations; that the City did have a drop- off for recycling, etc. Mr. Ken Henderson, Marketing Director for Richard Diodati, stated that he served on the Board of Directors of the Chamber of Commerce. He spoke of networking and seminars that the Chamber was holding to aid businesses to run more efficiently. He described the work being done to better serve small and medium sized busi- nesses, and wanted the City's support in an exchange of ideas. He proceeded to describe coming Chamber activities: a blood drive at Kaiser Hospital; Mayor Drago and Supervisor Griffin as luncheon speakers; Burlingame Councilman Pagiaro will speak at an April luncheon on the transportation issue affecting cities through sales tax; Congressman Lantos as a luncheon speaker in May, etc. 2/10/88 Page 2 COMMUNITY FORUM Vice Mayor Teglia Requested: - Add Item 9a. Discussion of the Expansion of Orange Park Measure. Councilman Addiego Requested: - Add Item 9b. Discussion of Park Maintenance Districts. COMMUNITY FORUM So ordered. So ordered. CONSENT CALENDAR Staff Report 2/10/88 recommending adoption of a Resolution approving the destruction of certain records of the South San Francisco Police Department in accordance with Government Code Section 34090, et seq. e A RESOLUTION APPROVING DESTRUCTION OF CERTAIN RECORDS OF THE SOUTH SAN FRANCISCO POLICE DEPARTMENT IN ACCORDANCE WITH GOVERNMENT CODE SECTION 34090 ET SEQ. Staff Report 2/10/88 recommending by Motion to accept the Linden Avenue Street Light Improvement, Project No. ST-83-1. ~a ~o Staff Report 2/10/88 recommending adoption of a Resolution authorizing approval and execution of Supplement No. 11 to Local Agency-State Agreement No. 04-5177 (Federal Aid Urban System Projects), related to Linden Avenue at Colma Creek -- BR. No. 35C-31. A RESOLUTION AUTHORIZING APPROVAL AND EXECUTION OF SUPPLEMENT NO. 11 TO LOCAL AGENCY-STATE AGREEMENT NO. 04-5177 (FEDERAL AID URBAN SYSTEM PROJECTS) CONSENT CALENDAR RESOLUTION NO. 18-88 So ordered. RESOLUTION NO. 19-88 M/S Nicolopulos/Haffey - To approve the Consent Calendar. Carried by unanimous voice vote. 2/10/88 Page 3 ~APPROVAL OF BILLS 4. Approval of the Regular Bills of 2/10/88. CITY MANAGER a Staff Report 2/10/88 recommending adoption of a Resolution author- izing the purchase and lease of property on South Airport Boulevard and Belle Air Road (Pyramid ~'~ Property). A RESOLUTION AUTHORIZING THE PURCHASE AND LEASE OF PROPERTY ON SOUTH AIRPORT BOULEVARD AND BELLE AIR ROAD (PYRAMID PROPERTY) APPROVAL OF BILLS M/S Haffey/Teglia - To approve the Regular Bills of 2/10/88 in the amount of $1,234,821.46. Carried by unanimous voice vote. CITY MANAGER City Manager Lewis stated that this Resolution would authorize an agreement to purchase the Pyramid property with a loan provided by the Price Company, and the City would lease the property back to the Price Club. He stated that the loan principal and interest would be deducted from the ren- tal payments the Price Club would pay from the percentage and additional rent portion of the current lease. He con- tinued, in the event the City Note has not been paid in full at the end of the lease term, any unpaid balance of prin- cipal and accrued interest shall be deemed forgiven. He stated that should the Price Club opt to purchase the land from the City, the Price Club would pay the City the sum total of the principal, and interest payments which have been made by the City. He stated that if for any reason the Price Club should decide to not do busi- ness in the City, the City would be repaid and the land would be the City's. Mr. Satz, Vice President General Counsel of the Price Club, stated that even though the Price Club had not been open a year yet, it had experienced a tremendous success in this City, and that the esti- mated sales tax revenue given to the City Manager during negotiations was far below the actual sales tax revenue realized. He stated that many customers could not come to the store because of the lack of parking, and that purchase of the Pyramid property would provide addi- tional parking for the site. 2/10/88 Page 4 CITY MANAGER 5. Staff Report - Continued. CITY MANAGER He stated that with the additional parking it was estimated that the sales tax would be in the multi-millions of dollars to the City. Vice Mayor Teglia stated that the Price Club had funded the money for the impro- vements to the site, and would be loaning the City money for the new property to increase the parking. She questioned the mechanism employed for the loan, and when it would repay the loan. Mr. Satz explained the following: the City only had to pay back the loan if the sales are at a sufficient percentage level; that the terms of the lease the City would be paying the Price Club back for certain construction for building the Price Club out of the percentage rates; that with the purchase of the Pyramid property the City's debt would be $4,500,000+ that would be paid out of the percentage above a given figure; that it was possible to repay the entire debt in ten years based on the current estimates, etc. Councilman Haffey stated that in future the Council should receive the com- pilations for anticipated revenues in the staff report, so as to peruse the detail before the meeting. Mr. Satz stated that the debt had to be repaid only if the Price Club was successful. Vice Mayor Teglia stated that the Price Club rent was $400,000 a year, and the percentage does not kick in until the Price Club sells $80,000,000 - then the percentage becomes effective. Mr. Satz stated that the Price Club had already exceeded the $80,000,000 in the first year. He stated that the lease had protections for the City: if the Price Club was not successful and did not pro- 2/10/88 Page 5 AGENDA ACTION TAKEN CITY MANAGER 5. Staff Report - Continued. CITY MANAGER/PERSONNEL ® Staff Report 2/10/88 recommending~.l~} adoption of a Resolution that amends the contract and extends Social Security coverage to City Council Members and selects the effective date of coverage. A RESOLUTION AUTHORIZING THE EXTENSION OF SOCIAL SECURITY COVERAGE TO CITY COUNCIL MEMBERS CITY MANAGER duce then the City is guaranteed a $1,000,000 over the sales tax. He stated that the Price Club had created jobs for the citizens, in addition to the people it brought into the City. M/S Addiego/Teglia - To adopt the Resolution. RESOLUTION NO. 20-88 Carried by unanimous voice vote. CITY MANAGER/PERSONNEL Coordinator of Personnel Services & Employee Development Gonzales stated that after Council request for this extension, it was determined that the contract could be amended to require all future CoUncil to have Social Security coverage. She recommended and described Option #2: Council approves a Resolution to request an election be held among current mem- bers; the Social Security Office will provide a packet of information on all of the pertinent details of the coverage; three months after information is distri- buted, an election would be held; coverage would be effective by resolu- tion date; all future members of Council would be required to have Social Security coverage, etc. Discussion followed: that the current Social Security rate was 7.5%; that the coverage would go back five years or to the date of eligibility; that the deduc- tion would be $270.40 per year; that Councilman Nicolopulos was not interested, in that he currently collects Social Security, etc. M/S Addiego/Nicolopulos - To select Option #2. Carried by unanimous voice vote. M/S Addiego/Teglia - To adopt the Resolution. 2/10/88 Page 6 A6E NBA ACT'[ON TAKEN CITY MANAGER/PERSONNEL 6. Staff Report - Continued. COMMUNITY DEVELOPMENT & ADMINISTRATION Staff Report 2/10/88 recommending: 1) Motion to waive further reading of an Ordinance; 2) Motion to ~a~ adopt the Ordinance. ~ 2nd Reading/Adoption AN ORDINANCE AMENDING CHAPTER 20.71 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE TO ALLOW PATIO ENCLOSURES IN REAR YARD SETBACKS ITEMS FROM STAFF Letter from the Chairperson of the 1988 Italian American Games III £1~~ scheduled for 9/25/88. CITY MANAGER/PERSONNEL RESOLUTION NO. 21-88 Carried by unanimous voice vote. COMMUNITY DEVELOPMENT & ADMINISTRATION City Clerk Battaya read the title of the Ordinance in its entirety. M/S Teglia/Haffey - To waive further reading of the Ordinance. Carried by unanimous voice vote. M/S Haffey/Teglia - To adopt the Ordinance. ORDINANCE NO. 1029-88 Carried by unanimous voice vote. ITEMS FROM STAFF Mayor Drago stated that Mr. Bettucchi had another meeting to attend and was unable to remain for the discussion. City Manager Lewis stated that staff had been meeting with Mr. Bettucchi to iron out any problems that might occur during the games, and then Mr. Bettucchi had written the letter to Council outlining the events. He stated that staff had itemized the City costs related to the event, and that after reimbursement of Police costs would entail $776.00. Discussion followed: that the overall costs related to the games were $3,076.00; that last year the City had been reimbursed the Police costs; City guidelines for participation in various events; the games were run by a non- profit organization; that the Council should set a policy on requests of this type; that the Council take each request on its own merits, etc. 2/10/88 Page 7 AGENDA ACTION TAKEN ...... ITEMS FROM STAFF 8. Letter - Continued. ITEMS FROM COUNCIL Appointment of Nancy Hale to the Liaison position on the Peninsula Library System Advisory Board by~a~ the City Council. 9a. Discussion of Orange Park Measure. ITEMS FROM STAFF M/S Teglia/Haffey - To approve a level of City participation in the Italian American Games that are not to exceed $776,00, Carried by unanimous voice vote. ITEMS FROM COUNCIL M/S Haffey/Addiego - to appoint Nancy Hale to the Liaison position on the Peninsula Library System Advisory Board. Carried by unanimous voice vote. Ms. Hale expressed her appreciation to the Council for the appointment. She stated that 1989 would be the 75th anni- versary of the Grand Avenue Library and if Council was going to plan a celebra- tion, she would like to participate. Vice Mayor Teglia stated that she had met with Councilman Addiego to discuss his previously expressed concerns about the viability of the bond measure being placed before the public. She stated that in the last few weeks after listening to concerned citizen input, and the risk taking with respect to the one piece of property the City had waited so long to acquire; and given the limited time to do the measure justice to bring it to the people the way it should be done had reversed her opinion and had come full circle to Councilman Addiego's viewpoint. She stated that she wanted the Council to consider the possibility at this time to pull the entire measure off the ballot. Councilman Addiego stated that there had been some uneasiness at the last meeting about not having time to educate the public on the measure and get them to be enthusiastic. He stated that a Committee meeting had been scheduled for 2/20/88 and it had been noted that from that point on there were only fifty-one 2/10/88 Page 8 AGENDA ACTION TAKEN - - ITEMS FROM COUNCIL 9a. Discussion - Continued. ITEMS FROM COUNCIL days before the election. He stated that he was concerned about the possibility of losing the election by a hair, however, no one should doubt the sincerity of the Council to acquire additional park land. He stated that if the measure did not pass it would not just be a matter of funding, but would restrict the Council from looking at other sources to acquire the property. He continued, because it could be seen as advice from the public not to expand the park. Mayor Drago questioned if there was time to remove it from the ballot. City Attorney Armento stated that there actually were no provisions in the law that discussed removal, but she had con- ferred with the District Attorney's Office and their recommendation was that the Council adopt resolutions and ordi- nances to rescind their action to put it on the ballot. She stated that as far as any activity that the County had under- taken, the City would have to reimburse the County with regard to the costs for the election. She stated that her understanding was that any costs were minimal. Councilman Addie§o stated that the City Clerk would know how far along the pro- cess had gone, and was in the best posi- tion to respond to any expenses incurred. City Clerk Battaya stated that the costs were incidental at this point from the printer she had engaged, as well as, having had the County set up the precinct workers and polling places. She stated that the Council would need to take formal action to cancel the elec- tion, however, if the Council indicated a consensus tonight to cancel the election she could then cancel any further action being taken by the printer and the County. She stated that there would be a 2/10/88 Page 9 AGENDA ACTION TAKEN ITEMS FROM COUNCIL 9a. Discussion - Continued. ITEMS FROM COUNCIL written follow-up of Council action after adoption of the Resolution and Ordinance to formally cancel the election. She stated that letters would be sent to the precinct workers to inform each one that the election had been cancelled. Mayor Drago expressed concern on how this would effect the negotiations on the Mazzanti property agreement, and whether it would remove the obligation. City Manager Lewis stated that the agreement would expire and if the City wanted to do anything further it would have to renegotiate. City Attorney Armento stated that the language of the agreement provided that the Council would put the measure on the ballot prior to July 1st of this year, and wherein the June ballot had pretty much been excluded, and the April ballot cancelled there was no way to comply with that condition. She continued, therefore it would be necessary to renegotiate something with the Mazzantis if we wanted to pursue purchase of the property, otherwise the Mazzantis would be free to sell the property as they saw fit. Vice Mayor Teglia stated that if the City found another mechanism to address the Mazzanti property, i.e., the City pro- perty at the corner of Chestnut and Grand, which just this week a letter had been received from the County indicating they were no longer interested in its purchase, which would allow the City to go out on the open market. She stated that it was conceivable that by April there could be a deal on that property, which may not be the exact amount to purchase the Mazzanti property - but could be close enough. She stated that she didn't believe the Mazzantis were interested in how the City got the money, but only in the City meeting the time frame. 2/10/88 Page 10 AGENDA ACTION TAKEN ITEMS FROM COUNCIL 9a. Discussion - Continued. ITEMS FROM COUNCIL Mayor Drago stated that he had received a correspondence from San Mateo County that formally concluded discussions on Grand and Chestnut, and questioned if this concluded all negotiations for that property. City Manager Lewis stated that yes the County had come to the conclusion that to go ahead with the project, they had to go ahead with an increase of density. He stated that he had indicated that because of prior Council commitments on that pro- perty it was unlikely that the Council would consider a zoning increase. Councilman Haffey questioned how the Council had come to where they were tonight from a week ago: talking about selling Grand and Chestnut and in exchange buying the Mazzanti property - if it could be negotiated. He stated that this was all based upon a meeting between Councilmembers Teglia and Addiego without any of the public or the rest of the Council being a part of the meeting. He stated that the damage has been done, and there could not be a bond issue in April at this point. He stated that only today the Mayor had said that there might be a concern tonight on the bond issue, and the other concern raised by Councilman Addiego had been done at the eleventh hour. He con- tinued, he now felt it was the thirteenth or fourteenth hour. He stated concern on the amount of time, energy and money that had been spent for naught, and now the Council gets cold feet. He stated that he wished the Council had the will to follow through, and he apolo- gized to the citizens that were in sup- port of the bond measure. He stated that he realized that it was difficult to get sixty-six and two-thirds vote, yet wished the Council had tried the challenge. 2/10/88 Page 11 AGENDA ACTION TAKEN ITEMS FROM COUNCIL 9a. Discussion - Continued. (Cassette No. 2) ITEMS FROM COUNCIL Mayor Drago stated that he shared Councilman Haffey's views completely and did not feel it was to late or that it would fail. He stated that he had asked for a unanimous vote on the bond measure at the last meeting, because he realized that unless there was unison it could not be achieved. Vice Mayor Teglia stated that she did not have cold feet, however, she felt that to go ahead was a crap shoot and could not take that gambling risk to lose a piece of property that the City had coveted for a number of years. She stated that this way the property could be salvaged for the future. Councilman Nicolopulos stated that he also agreed with Councilman Haffey, and was disappointed in the way things had turned around with the Council not in agreement. Councilman Addiego stated that the members of the Council who were willing to take the risk should have taken more time about bringing a hasty campaign to the people. He stated that the Council should not be behind a measure - it should be in front of it to take it to the people. Vice Mayor Teglia stated that she had come up with one alternative to purchase the property, which had already been agreed to purchase over a five year period. She suggested that staff come up with other alternatives to purchase the property. Councilman Haffey felt that it was opti- mistic to think that the Chestnut and Grand property could be sold by April. He stated that there had been other plans for the revenue from the sale of that property. 2/10/88 Page 12 AGENDA ACTION TAKEN ~ 9a. Discussion - Continued. 9b. Discussion of the Park Maintenance Districts. ~9 Consensus of Council - To advise the City Clerk that the Council at the next meeting would seriously look at can- celling the bond election. Consensus of Council - To direct the City Manager to put the necessary documents to cancel the election on the next meeting agenda. Councilman Addiego stated that yearly the City had been co-mingling funds from the Common Greens to pay for the maintenance contracts, and questioned when that contract would expire. Deputy City Manager/City Engineer Yee stated that the contract had been expired for quite some time, and is on a month to month basis. Councilman Addiego stated that at the public hearing he would like a discussion of the concept of sliding funds to dif- ferent homeowners groups into others, and maybe it was time landowners, especially in some of the rental facilities take more responsibility for the grounds around their property rather than drawing down reserves. He stated that there were some people in Westborough that did not believe that the level of maintenance was as high as it should be - if the City was in fact siphoning monies off, then the level of maintenance could be higher just through monies generated from their pro- perty tax. He wanted the Council to eva- luate this premise, and have a full discussion at the hearing. He also wanted staff to think of a single contractor for the individual Districts, because there had been very little com- petitive bidding because of the volume of the four Districts together. Councilman Halley stated that Councilman Addiego had been very concerned over this for many years, and this was the first time that it had been learned that the City had an option. He stated that in the past the funds had been slid from the 2/10/88 Page 13 AGENDA ACTION TAKEN ITEMS FROM COUNCIL 9b. Discussion - Continued. GOOD AND WELFARE CLOSED SESSION 10. Closed Session for the purpose of the discussion of personnel matters, labor relations, property negotiations and litigation. RECALL TO ORDER: ADJOURNMENT: ITEMS FROM COUNCIL wealthy Districts to the poorer Districts. City Manager Lewis requested a work session meeting to discuss the sewer plant improvements, and that this item could also be discussed further. He suggested a meeting on Wednesday, 2/17/88 at 7:00 p.m. Vice Mayor Teglia suggested that docu- ments for the cancellation of the elec- tion be on the agenda for the adjourned meeting, and staff should address alter- natives to fund the acquisition of the Mazzanti property. She also requested that documentation start for the sale of the Chestnut and Grand property. City Manager Lewis stated that on Thursday and Friday he would be attending a City Manager conference in San Diego, and would return Friday evening. GOOD AND WELFARE No one chose to speak. CLOSED SESSION Council adjourned to a Closed Session at 9:15 p.m. to discuss the items noticed. Mayor Addiego recalled the meeting to order at 10:35 p.m., all Council present, no action taken. M/S Addiego/Haffey - To adjourn the meeting to Wednesday, 7/17/88, 7:00 p,m., to the Sewage Treatment Plant, 195 Belle Air Road, for the discussion of the following: Cancellation of the 4/12/88 election; Park Maintenance Districts; and Sewer Treatment Plant improvements. Carried by unanimous voice vote. Time of adjournment was 10:36 p.m. 2/10/88 Page 14 AGENDA ACT]'ON TAKEN RESPECTFULLY SUBMITTED, Barbara A. Battaya, City ~lerk 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. 2/10/88 Page 15