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HomeMy WebLinkAboutMinutes 2008-12-22MINUTE S ~o~ .,,,,,. ~,~ zx s~ SPECIAL MEETING CITY COUNCIL ~. ° OF THE c'~LIFOR~1~ CITY OF SOUTH SAN FRANCISCO CITY HALL CONFERENCE ROOM X100 GRAND AVENUE. SOUr1,H SAN FRANCISCO ANI~ 13Y 'hELECONFFIZF.NC1~: Art, 270 LOS RANCHI'hOS ROAD SAN RAFAEL, CA 94903 MONDAY, DECEMBER 2'2, 2008 CALLED TO ORDER: 5:30 p.m. ROLL. CALL: Present Gouncilmcn Garbarino, Gonialcr and Mullin, Vice Mayor Addic~o * , and Mayor Matsumoto. Absent: None. * Vice Mayor Addiego participated by teleconference and was located at 270 Los Ranchitos Road San Rafael, CA 91903 Public Comments -Comments are limited to Items on the Special Meeting Agenda and will be taken from both locations specified in this notice. 2. Consideration of Resolution No 121-2008 Approving an Amended and Restated Ground Lease and License by and among the San Mateo County Harbor District, the City of South San Francisco and the Water Emergency Transportation Authority and approving a budget amendment. City Attorney Mattas advised the proposed amendment pertained to a lease for land that was immediately under the location of the proposed Ferry Terminal. A similar lease was approved in December of 2007. This version included updates reflecting the administrative name change from WTA to WETA and revised rent payment schemes. The lease affirmed that WETA's right to entry on the premises begins only aftE;r rent is fully paid. It further included Council's right to terminate the lease if WETA failed to operate ferry service on the site. Due to the application of Homeland Security grant funds, however, the facility might be used for emergency response. Council was requested to act on the lease in the current year so that various payments could be minimized. Councilman Garbarino questioned who would operate the ferries if WETA dissolved. City Attorney Mattas responded that in the case WETA dissolved, potentially no one would operate the ferries. The facilities could possibly be conveyed or transferred to someone else, but the City would continue to retain ownership of the terminal itself. Since a good portion of the terminal was to be built on piers, the possibility of moving it existed. Mayor Matsumoto questioned reconciliation of the fact that WETA would have to forego the terminal if service was not continued for a minimum of five (5) years. City Attorney Mattas advised another agreement including a five (5) year provision would be forthcoming. Vice Mayor Addiego questioned a term in the lease describing the anticipated Ferry Service run. He noted that if the service was successful, the lease would have to be amended to add points of service beyond Jack London Square. City Attorney Mattas confirmed this reading of the lease. Mayor Matsumoto noted the proposed resolution. authorized an amendment to the 08/09 CIP to appropriate monies for construction that had already been done. She questioned why this appropriation was characterized as rent. She further questioned whether RDA funds could be used for rent. City Attorney Mattas advised the appropriation was rent in the sense that a portion of the payment was being use to secure WETA's right to occupy the space. Regarding the use of RDA funds, the resolution specifically noted the appropriation as capital cost reimbursement for dredging. However, he stated the resolution could be stated so as to create a clear record with respect to the capital purchases being supported by RDA funds. Mayor Matsumoto requested the clarification. Vice Mayor Addiego added the second "whereas" clause in the resolution should include the year 1977 as opposed to 1997. City Attorney Mattas confirmed the recommended changes would be made. Mayor Matsumoto inquired about the use of RDA bond funds to support the 1.34 million allocation. Finance Director Steele advised using bond funds because they weren't as flexible as tax increment funds, which might be saved and used for an alternative purpose. City Attorney Mattas added the allocation was programmed in when the bond was put out. Mayor Matsumoto observed the soil in the area was highly subject to toxic potential and questioned who would be liable if new toxins were discovered on the site. SPECIAL CITY COUNCIL MEETING DECEMBER 22, 2008 MINUTES PAGE 2 City Attorney Mattas advised WETA was only leasing the land under which the viewing platform would sit. Accordingly, a very limited amount of land was subject to the lease. WETA would be responsible for any contamination it caused. Additionally the Harbor District would be responsible for toxins encountered in areas it was responsible for. The City might have potential remediation costs associated with collection systems which might exist for the entire Harbor Area in any event. Mayor Matsumoto further stated she would like the agreement to include language clarifying that the City is not responsible for contamination in the Bay caused by WETA. City Attorney Mattas advised the lease included absolute maintenance requirements for the premises leased by WETA. In addition, the storm water prevention systems applicable in the City generally would bind WETA. Mayor Matsumoto questioned who would be responsible for' upgrading roads in the area. She further questioned whether anyone had seen a business plan for the Ferry Services. City Attorney Mattas advised that under the current JPA, the Harbor District maintained the roads past the gate. Regarding a business plan, Councilman Gonzalez advised that a 2004 study based on estimated ridership was done. Mayor Matsumoto stated she was uncomfortable with the project without seeing a business plan and had concerns about Measure A funding. City Attorney Mattas advised that from staff's standpoint, the 1.34 million was reflective of valuable improvements that were already made. He further advised that absent an unavoidable circumstance, the termination provision in the ].ease would provide relief in the event of nonperformance by WETA. City Manager Nagel added the City was obligated only to the 1.34 million. He noted the dredging would benefit the City irrespective of the outcome with respect to Ferry Service and whether WETA ultimately complied with the TA's requests. Vice Mayor Addiego suggested reviewing some of the studies done in the past pertaining to Ferry Service in the Oyster Point Area. Councilman Garbarino recalled a multicolored map of the Bay Area showing employee concentrations and a potential ridership base. Councilman Gonzalez commented on the need to keep the ferry project moving along. City Attorney Mattas stated the proposed resolution would be modified so that the date on the second "whereas" clause would reflect 1977. He further noted the Resolution would be clarified as follows: "[A]uthorizes an amendment to the 2008-2009 Capital Improvement Budget to appropriate $1,310,000 from the Redevelopment .Agency 2006 Bond Funds for the dredging and breakwater capital improvement cost reimbut-sement rent payment SPECIAL CITY COUNCIL MEETING DECEMBER 22, 2008 MINUTES PAGE 3 specified in the lease." Motion- Councilman Garbarino/Second- Councilman Gonzalez: to adopt Resolution 121-2008 as modified. The motion was approved by the following roll call vote: AYES: Councilmen Garbarino, Gonzalez and Mullin, Vice Mayor Addiego and Mayor Matsumoto. NOES: None. ABSTAIN: None. ABSENT: None. 3 . Adjournment. Being no further business, Mayor Matsumoto adjourned the meeting at 6:23 p.m. Submitted by: Krista Ci --'ci~ City Clerk Appr ve Karyl atsumoto, Mayor City of South San rrancisco SPECIAL CITY COUNCIL MEETING DECEMBER 22, 2008 MINUTES PAGE 4