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