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HomeMy WebLinkAboutMinutes 1970-12-213 REGULAR MEETING OF THE CITY COUNCIL Of THE CITY OF SOUTH SAN FRANCISCO HELD MONDAY, DECEMBER 21, 1970 TIME: PLACE: CALL TO ORDER: PLEDGE OF ALLEGIANCE AND INVOCATION: ROLL CALL: APPROVAL OF MINUTES: CLAIMS: PARKING DISTRICT NO. I CLAIMS: CABOT, CABOT & FORBES INDUSTRIAL PARK, UNIT NO. 2 CLAIMS:- CABOT, CABOT & FORBES INDUSTRIAL PAR~, UNIT NO. 2A CLAIMS: SO. MAPLE AVE.-SO. CANAL ST. RELIEF PUMP & STORM DRAINAGE ASSESSMENT DISTRICT CLAIMS: 8:00 p.m. Council Chambers, City Hall. The meeting was called to order by Mayor Ahern at 8:05 p.m. The Pledge of Allegiance to the Flag was recited after which the Invocation was given by Reverend Harry H. Larson of the First Baptist Church. Present: Absent: Councilmen Patrick E. Ahem, Frank J. Bertucelli, William A, Borba, F. Frank Mammini and Warren Steinkamp? None Mayor Ahern asked if there was a motion approving the Minutes of the adjourned regular meeting of November 30, 1970; the special meeting of December 3, 1970; the special meet- ing of December 4, 1970; and the regular meeting of December 7, 1970, City Clerk Arthur Rodondi requested that the Minutes of the adjourned regular meeting of November 30, 1970 be continued since they were not completed in time for the City Council's agenda. City Attorney Noonan suggested that the Minutes of the special meeting of December 3, 1970 be corrected to show that the City Council at 7:39 p.m. adjourned and continued the special meeting to December 12, 1970 to be further continued to December 19, 1970, if necessary, for the purpose of interviewing City Manager applicants. Councilman Bertucelli moved, seconded by Councilman Borba and regularly carried, that the Minutes of the adjourned regular meeting of November 30, 1970 be continued; that the Minutes of the special meeting of December .3, 1970 stand corrected; and that the Minutes of the special meeting of December 4, 1970 and regular meeting of December 7, 1970 be approved and accepted. Mayor Ahern then asked if there was a motion approving the regular claims as submitted for payment. Councilman Steinkamp moved, seconded by Councilman Mammini and regularly carried, that the claims, totaling $94,521.13, be approved for payment, Mayor Ahern asked if there was a motion approving the claims for Parking District No. ! as submitted for payment. Councilman Borba moved, seconded by Councilman Bertucelli and regularly carried, that the claims as submitted for Parking District No. I, in the amount of $10.37, be approved for payment. Cabot, Cabot & Forbes Industrial Park., Unit No. 2 Claims: (a) Pacific Gas and Electric Company claim in the amount of $18.32 for services from 8/6 to 9/15/70. (b) Wilsey & Ham claim dated November 24, 1970 in the amount of $480.22 for Invoice No. 0448 for Engineering Services through October 31, 1970, Councilman Bertucelli moved, seconded by Councilman Man~ini and regularly carried, that the claims as submitted for Cabot, Cabot & Forbes Industrial Park, Unit No. 2, be approved for payment. Cabot, Cabot & Forbes Industrial Park, Unit No. 2A Claims: (a) Pacific Gas and Electric Company claim in the amount of $18.33 for services from 8/6 to 9/15/70. (b) Wilsey & Ham claJ~ dated November 24, 1970 in the amount of $480.22 for Invoice No. 0448 for Engineering Services through October 31, 1970. Councilman Mammini moved, seconded by Councilman Steinkamp and regularly carried, that the clain~ as submitted for Cabot, Cabot & Forbes Indastrial Park, Unit No. 2A, be approved for payment. So. Maple Ave.-So. Canal St. Relief Pump and Storm Drainage Assessment District Claim: Abbot A. Hanks claim dated December I, 1970 in the amount of $108.00 for Sampling and Soil Tests. Councilman Borba moved, seconded by Councilman Bertucelli and regularly carried, that the claims as submitted for South Maple Avenue-South Canal Street Relief Pump and Storm Drainage Assessment District be approved for payment. PUBLIC HEARING SO. AIRPORT BLVD. IMPROVEMENT: 5-0 0 The next item was the continued Public Hearing - South Airport Boulevard Improvement - Produce Avenue to Utah Avenue. There being no objections, Mayor Ahern continued the Public Hearing to the. next City Council meeting. PUBLIC HEARING NOTICE OF PROPOSED FORMATION OF WILLOW GARDENS PARKS & PARK- WAYS MAINTENANCE DIST.: The next item was the Public Hearing - Notice of Proposed Formation of Willow Gardens Parks and Parkways Maintenance District. Mayor Ahern declared the Public Hearing opened, asking if any written protests had been received to which the City Clerk replied that none had been received by his office. Mayor Ahern asked if anyone present in the audience wished to speak on the matter. There being none, Mayor Ahern declared the Public Hearing closed. PUBLIC HEARING PROPOSAL TO FORM STONEGATE RIDGE PARKS AND PARKWAYS MAINTENANCE DISTRICT: The Public Hearing on the Notice of Improvement regarding Proposal to Form Stonegate Ridge Parks and Parkways Maintenance District, was the next matter for Council's attention. Mayor Ahern declared the Public Hearing opened, asking if any written protests had been received to which City Clerk Rodondi replied that none had been received. Mayor Ahern then asked if anyone in the audience had anything they wished to offer. There being none, Mayor Ahern declared the Public Hearing closed. PUBL I C HEAR I NG DOWNTOWN MERCHANTS BUS INESS IMPROVEMENT AREA: The next item was the Public Hearing on the Downtown Merchants Improvement Area of the City of South San Francisco. Mayor Ahern declared the Public Hemming opened, asking if any written protests had been received to which City Clerk Rodondi replied that a letter of protest had been received from D. W. Ratto dated December 19, 1970. Mayor Ahern asked if anyone in the audience wished to speak. There being none, Mayor Ahern declared the Public Hearing closed. Discussion followed at which time, City Attorney Noonan commented on portions of Mr. Ratto~ letter as it affected the Downtown area. PROCLAMATION NATIONAL BLOOD DONOR MONTH - JAN. 1971: RESOLUIION NO. 5469 DETERMINING UNPAID ASSESSMENTS & PROVID- ING FOR ISSUANCE OF BONDS TANFORAN AVE. SHAW RD. STORM DISJOIN- AGE PROJECT ASST. DIST.: RESOLUTION NO. 5470 AWARDING SALE OF BONDS TANFORAN AVE. SHAW RD. STORM DRAINAGE ASST. DISTRICT: The next item for Council's consideration was the Proclamation designating the month of January, 1971, as NATIONAL BLOOD DONOR MONTH. Mayor Ahern so proclaimed. City Attorney Noonan explained the first resolution determining unpaid assessment and providing for issuance of bonds in the Tanforan Avenue-Shaw Road Storm Drainage Project Assessment District after which Councilman Steinkamp introduced the resolution entitled: "A RESOLUTION DETERMINING UNPAID ASSESSMENTS AND PROVIDING FOR ISSUANCE OF BONDS TAN- FORAN AVEN~SHAW ROAD STORM DRAINAGE PROJECT ASSESSMENT DISTRICT." Roll call vote was as follows: Ayes, Councilmen Patrick E. Ahern, Frank J. Bertuce~.li, William A. Borba, F. Frank Mammini and Warren Steinkamp, Noes, none. Absentt none, City Attorney Noonan stated that the next resolution awarding ~ale of bonds in the assessment district was ready for introduction after declaration of bid~. City Clerk Arthur Rodondi declared the bids received, stating that the Bond Counsel recommended award be made to Euphrat Securities Company as the highest responsible bidder. Councilman Bertucelli introduced the resolution entitled: "A RESOLUTION AWARDING SALE OF BONDS TANFORAN AVENUE-SHAW ROAD STORM DRAINAGE PROJECT ASSESSMENT DISTRICT." Roll call vote was as follows: Ayes, Councilmen Patrick E. Ahern, Frank J. Bertucelli, William A. Borba, F. Frank Mammini and Warren Steinkamp. Noes, none. Absent, none. RESOLUTION NO. 5471 City Attorney Noonan explained the next resolution which concerned the Agreement with AUTHORIZING AMENDMENT TO regard to Common Greens in Westborough-West Park Unit No. 3A-F after which Councilman AGREEMENT SUBDIVISION IMP. Steinkamp introduced the resolution entitled: "A RESOLUTION AUTHORIZING AMENDMENT OF & COMMON GREENS, WESTBO- AGREEMENT ENTITLED ' AGREEMENT-SUBDIVISON IMPROVEMENTS AND COMMON GREENS, WESTBOROUGH ROUGH WEST PARK 3^-F: WEST PARK UNIT NO. 3A-F.'" ~__~o~J Roll call vote was as follows: Ayes, Councilmen Patrick E. Ahern, Frank J. Bertuceili, William A. Borba, F. Frank Mammini and Warren Steinkamp. Noes, none. Absent, none. RESOLUTION NO. 5472 AUTHOR I Z I NG CANCELLAT I ON OF TAXES ON PROPERTY ACQU I RED FOR PUBL I C USE: The next resolution authorizing cancellation of taxes on property acquired by the City was next explained by City Attorney Noonan after which Councilman Mammini introduced the resolution entitled: "A RESOLUTION AUTHORIZING CANCELLATION OF TAXES ON PROPERTY ACQUIRED FOR PUBLIC USE." Roll call vote was as follows, Ayes, Councilmen Patrick E. Ahem, Frank J. Bertucelli, William A. Borba, F. Frank Mammini and Warren Steinkamp. Noes, none. Absent, none. RESOLUTION NO. 5473 ORDER:J~G FORMATION OF WILLOW GARDENS PARKS & PARKWAYS MAINTENANCE DISTRICT: City Attorney Noonan explained the next resolution ordering the formation of Willow Gardens Parks and Parkways Maintenance District after which Councilman Borba introduced the resolution entitled: "A RESOLUTION ORDERING THE FORMATION OF WILLOW GARDENS PARKS AND PARKWAYS MAINTENANCE DISTRICT." RESOLUTION NO. 5473: PARKWAYS MAINTENANCE DISTRICT: Roll call vote was as follows: Ayes, Councilmen Patrick E. Ahem, Frank J. Bertucelli, William A. Borba~ F. Frank Mammini and Warren Steinkamp. Noes, none, Absent, none. City Attorney Noonan explained the similar resolution ordering the formation of Stonegate Ridge Parks and Parkways Maintenance District after which Councilman Bertucelli introduced the resolution entitled: "A RESOLUTION ORDERING THE FORMATION OF STONEGATE RIDGE PARKS AND PARKWAYS MAINTENANCE DISTRICT." Roll call vote was as follows: Ayes, Councilmen Patrick E. Ahem, Frank J. Bertucelli, William A. Borba, F. Frank Mammini and Warren Steinkamp. Noes, none. Absent, none. ORDINANCE NO. 610 AMENDING ORD, NO, 261 BUSINESS LICENSE ORD. Ist Reading/Adoption Emergency Ordinance City Attorney Noonan at this time stated, while not appearing on the evening's agenda, the ordinance concerning the formation of the Downtown area was ready for Council's consideration, He described the ordinance and advised the Council that it takes effect immediately as it is an emergency matter, is an ordinance relating to taxes for the usual and current expenses of the'~rea" and provides for timely collection of same and is related to improvements of streets and other public places in the "area." Mayor Ahern ordered the title of the ordinance read. City Attorney Noonan then read the title of the ordinance as follows: "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO AMENDING ORDINANCE NO. 261 ENTITLED, "AN ORDINANCE PROVIDING FOR LICENSING OF BUSINESS, PROFESSIONS, TRADES, C~LL~NGS AND OCCUPATIONS IN THE CITY OF SOUTH SAN FRANCISCO." Councilman Borba stated that he felt this was not the solution to the Downtown problem and would only crea~e dissatisfaction and Council should proceed with due caution. Councilman Bertucelli remarked that only one party responded from the 180 letters sent from the Chamber of Commerce and stated that Council should go along with the consent of the majority. Counci~man Borba commented that the answer was not in more taxation bUt in the improve- ments by remodeling of the existing buildings. Discussion followed concerning the mailing of notices to all affected and the amounts of the additional levies. Mayor Ahern stated that if this did not resolve the Downtown area's problem, City Council could rescind the ordinance but it should be given the opportunity to be tried. Councilman Steinkamp moved that reading of the ordinance in its entirety be waived and the ordinance be introduced and read for the first time by reading of the title only, seconded by Councilman Bertucelli and passed by a unanimous vote. Councilman Borba voted "No." Councilman Mammini moved that the ordinance so entitled, reading the entirety of which has been duly waived, be introduced, seconded by Councilman Steinkamp and passed by unanimous vote, Councilman Borba voting "No." Councilman Bertucelli moved that the ordinance so entitled, reading of which in its entirety has been duly waived and introduction which has been made, be passed and adopted, seconded by Councilman Mammini and passed by the following roll call vote. Roll call vote was as follows: Ayes, Councilman Patrick E. Ahern, Frank J. Bertucelli, F. Frank Mammini and Warren Steinkamp. Noes, Councilman William A, Borba. Absent, none. REQUEST OF OROWEAT The next item was the communication dated December 11, 1970 'from Oroweat Baking Company BAKING CO., RE: ALTERNATE of San Francisco requesting consideration to alternate screening of four flour tanks SCREENING OF FOUR FLOUR on their property. TANKS: ~-(~)~-(~ Councilman Steinkamp moved, seconded by Councilman Mammini and regularly carried, that the alternate screening of the four flour tanks as discussed at the Study Session and recommended by the Architectural Committee be approved and accepted. CITY PLANNER'S REPORT: ? The next item was the City Planner's Report to the City Council with respect to Use and Variance Requests considered on December 14, 1970. There being no objections, Mayor Ahern ordered the Report accepted and placed on file. APPOINTMENT OF D.P.W. The next matter was the consideration of the appointment of Director of Public Works Louis TO REPRESENT CITY - WATER Goss to represent the City as a member of the San Mateo Water Quality Committee. QUALITY CONTROL BOARD: Councilman Steinkamp so moved, seconded by Councilman Mammini and regularly carried. Discussion followed concerning the appointment of Director of Public Works Goss and the City's willingness to support the concept of the Waste Water Treatment Committee to which Mr. Goss was appointed and which w~uld be determined by his attendance at their meeting the following day. REQUEST TO PROMOTE TWO FIREMENT TO POSITION OF LINE CAPTAINS FROM PROMOTIONAL LIST: AWARD OF CONTRACT PARK DEPARTMENT VEHICLE: The next item was the Inter-Office Memorandum dated December 10, 1970 from Acting City Manager Laurence Ross recommending permission be granted to Fire Chief Marchi to promote two Firemen to the position of Line Captains from the existing promotional list. Councilman Bertucelli moved, seconded by Councilman Steinkamp and regularly carried, that the recommendation of the Acting City Manager and Fire Chief be approved and acc~ted. The next item was the Inter-Office Memorandum dated December 9, I970 from theEquipment Maintenance Supervisor submitting compilation of bids and recommendation for a vehicle for the Park Department. AWARD Of CONTRACT PARK DEPARTMENT VEH I CLE: (CONTINUED) 5-1 AWARD OF CONTRACT TREATMENT PLANT VEHICLE: BEAUT ! F I CAT I ON PROJECT ENTRANCES TO THE CITY REPORT: MUNICIPAL SWIMMING POOL CONTRACT SUMMARY: MONTHLY REPORTS: DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL: L_- I l& PROPOSAL OF ORDINANCE BY STUDENTS OF SO. S. F. HIGH SCHOOL PROHIBITING SALE OF NON-RETURNABLE BOTTLED & CANS: SAN MATEO BD. OF SUPER- VISORS RESOL NO. 28498: CHANGE ORDER L. R. YEGGE CO. - BOX CULVERT-WINSTON BRANCH OF COLMA CREEK: CHANGE ORDER 'RETAINING WALL - BOX CULVERT-WINSTON BRANCH,. OF COLMA CREEK: ,.5'3 CHRISTMAS GREETINGS BY MAYOR AHERN: GOOD AND WELFARE Acting City Manager Laurence Ross declared the bids received, stating that the Iow bidder was California Turf Equipment Company with the Iow bid of $1,496.25 for a 4-wheel Cony and he concurred in the recommendation of the Equipment Maintenance Supervisor that award be made to California Turf Equipment Company. Councilman Borba moved, seconded by Councilman Mammini and regularly carried, that the recommendation of the Acting City Manager and Equipment Maintenance Supervisor be approved and accepted. The next item was the Inter-Office Memorandum dated-December I0, 1970 from Equipment Maintenance Supervisor Rodondi submitting compilation of bids and recommendation for award of contract for an'~ electric vehicle for the Treatment Plant. Acting City Manager Ross declared the bids received, stating that the low bidder was Elder and Company with the Iow bid of $1,879.50 and he concurred in the recommendation of the Equipment Maintenance Supervisor that award be made to Elder and Company. Councilman Steinkamp moved, seconded by Councilman Mammini and regularly carried, that the recommendation of Acting City Manager Ross and Equipment Maintenance Supervisor Rodondi be approved and accepted and award be made to Elder and Company. The Inter-Office Memorandum dated December 2, 1970 from Landscape Specialist John Hoffman submitting Progress Report - Beautification Project, Entrances to the City, was the next There being no objections, Mayor Ahern ordered the Report accepted and placed on file. The next item was the Inter-Office Memorandum from the Superintendent of Recreation and Parks dated December 2, 1970 recommending extension of contract time of 18 days in lieu of exercising the penalty of liquidated damages in the contract of Martinelli Construction Company - Municipal Swimming Pool. Councilman Steinkamp moved, seconded by Councilman Mammini and regularly carried, that the recommendation of the Superintendent of Recreation and Parks be approved and accepted. Monthly Reports were received from the following: Library - November, 1970 Building Inspection Department - November, 1970 Fire Department - November, 1970. There being no objections, Mayor Ahern ordered the Reports accepted and placed on file. Department of Alcoholic Beverage Control: (a) Application as filed by Rodeway Inns of America, for On Sale General Bona Fide Eating Place at 380 South Airport Boulevard. (b) Application as filed by J. Sosnick & Son for Distilled Spirits Wholesaler, Distilled Spirits Importer at 258 Littlefield Avenue. There being no objections, Mayor Ahern ordered the Reports placed on file. The next item was the communication dated'December 9, 1970 from Students of South San Francisco High School proposing an ordinance to prohibit the sale of non-returnable bottles and cans in the City of South San Francisco. At the request of Mr. Bob Bowen, one of the signers of the communication, Mayor Ahern continued the request until the next regular meeting. The next matter for Council's consideration was the San Mateo Board of Supervisors' Resolution No. 28498 entitled: "A RESOLUTION INITIATING PROCEEDINGS FOR REORGANIZATION CITY OF DALY CITY, NORTH SAN MATEO COUNTY SANITATION DISTRICT, CITY OF SOUTH SAN FRANCISCO, AND WESTBOROUGH COUNTY WATER DISTRICT." There being no objections, Mayor Ahern ordered the Resolution accepted and placed on file. The next item was the Change Order Invoice of L. R. Yegge Co., in the amount of $470.51 dated December 16, 1970 for the installation of two (2) manholes in deck of slab in Box Culvert-Winston Branch of Colma Creek. Councilman Steinkamp moved, seconded by Councilman Bertucelli and regularly caried, that the Change Order for the BOx Culvert-Winston Branch of Colma Creek be approved and accepte¢ The Change Order of L. R. Yegge Co., in the amount of $1,100 for the construction of a retaining wall for the BOx C~lvert-Winston Branch of Colma Creek was the next matter, Councilman Bertucelli moved, seconded by Councilman Borba and regularly carried, that the Change Order for the Box Culvert-Winston Branch of Colma Creek be approved and accepte( Mayor Ahern at this time extended his wishes to the citizens of South San Francisco and to those present for a very merry Christmas and thanked those present for their attendance at the meeting during this season. There being nothing further, Mayor Ahern asked if any member of the City Council had any- thing they wished to offer under Good and Welfare, Councilman Bertucelli stated that there would be a meeting with the Army Corps of Engineer~ on Tuesday, January 5, 1971 at 2:00 p.m. in the City Hall. He likew{{e extended his wishe~ to the people of South San Francisco for a merry Christmas and a happy and prosperous New year. GOOD AND WELFARE: (CONTINUED) SUOGESTION TO INCREASE HOTEL-MOTEL TAX TO PRO- VIDE PROMOTIONAL REVENUE: D I SCUSS ION CONCERN lNG AIRPORT BLVD. PROJECT: BONDING ANALYSIS - CAPITAL IMPROVEMENT PROJECTS: Mayor Ahern then asked if anyone present in the audience had anything they wished to offer under Good and Welfare. Mr. Fred Rapp, co-ownero{ the Holiday Inn, extended the Season% greetings to the Mavor and ~...~bers of the City Council and offered a suggestion that the City consider an increase in the Hotel-Motel tax from 4% to 5%, with the monies derived from the additional increase to be used by the motel industry to sell South San Francisco to visiting people. He stated that these funds could be spent only with the approval of the City Council, commenting that the Hotel-Motel industry knew how they could best be spent. Discussion then followed at which time Councilman Borba stated that he felt this was a good idea. Councilman Bertucelli then asked if the monies derived by the additional tax were to go to a special fund for advertising purposes to which Mr. Rapp replied that this would be used to promote and advertise the City of South San Francisco through an agency with the approval of the City Council on a three-year program Mayor Ahern stated that it appeared that the suggestion had merit but that Council should listen to everyone concerned in this regard to which Mr. Rapp replied that he was speakin~ only for the Holiday Inn but f~t that the others would approved of such a plan. Discussion then followed as to how the program of advertising would be followed after which Mayor Ahem suggested that the ideas be coordinated and discussed at a Study Meeting with Mr. Rapp and other interested Hotel-Motel owners. Councilman Mammini stated that the suggestion was a good one and should be studied. Councilman Steinkamp suggested that the City Staff likewise explore the suggestion of Mr. Rapp and submit their recommendations in this regard. Discussion then followed concerning a date convenient to study the matter after which there being no objections, it was agreed to be scheduled for the Study Meeting of January 13, 1971. Councilman Borba then requested infc~ation as to the status of the A]~rport Boulevard project, asking as to when the improvement could be considered obsolete in ~his regard. Director of Public Works Louis Goss replied that not only would the City need the improvement by the widening of Airport Boulevard but also a cross connection between the industrial areas and the areas west of the fl'ee~a¥. He remarked that the County of San Mateo had been requested to make a study in this regard and that this should be completed shortly. In answer to Councilman Borba's question as to how long the improvement would be pro- vided for the present needs, the Director of Public Works stated that the South Airport Boulevard Improvement would continue to serve the City's needs but that there would be still the need for a cross connection. Councilman Borba then suggested that a study be made on the matter of the need of an overpass over the freeway to the produce area, suggesting that a request be made to the State for their assistance in this regard. Councilman Bertucelli then asked as to how the Airport Boulevard Improvement was progressing to which the Director of Public Works stated that they were presently making three studies in this regard, and that preliminary plans and cost estimates shoul¢ be completed shortly. Councilman Mammini at this time brought up the matter of bonding by the City for Capital Improvement projects, requesting the following statement read into the records. Acting City Manager Laurence Ross read the following statement: BONDING ANALYSIS Cities can avail themselves of bonding in many forms but the three most commonly used are the following: I. General Obligation Bonds 2. Joint Powers Agreement Bonds 3. Non-Profit Corporation Bonds The most commonly used is the General O~ligation Bond. Mainly because of its lower interest ~'~ate but does have the disadvantage of requiring a majority vote of the citizens. This is often difficult to obtain even though the tax rate may remain the same. This type bonding must also be backed by a possible increase in the property tax rate in the event of a financial disaster within the local government. The second type of bonding (Joint Powers Agreement) is similar to the General Obligation Bonding but does not require the majority vote of the citizens and carries at this time an interest rate of 5.~5%. This type of bonding can only be used for buildings and their land and must be used jointly by two entities such as cities and school districts and etc. The third type, known as Non-Profit Corporation Bonding, happens to be the most up to date method of financing available today and is being used extensively in the financing of capital improvements by many progressive cities. BONDING ANALYSIS - CAPITAL IMPROVEMENT PROJECTS: (CONTINUED) ADJOURNMENT: RESPECTFULLY SUBMITTED, They do not require the majority vote of citizens. Funds can be used for just about any type of capital improvement or purchase. Present rate of interest is 6%. In the event of financial problems within a city, bond holders cannot force an increase in tax rate as they can in General Obligation Bonding. The 1969-70 Financial Report prepared by our City Auditors indicates an income of $1,890,000.00 from Sales Taxes. Some $756,000.00 or 40% is ear- marked for Capital Improvements each year. This amount of money each year represents a bond capacity of some $9,000,000.00 over a twenty-year period. This means that the City of South San Francisco can finance most of its major projects without increasing their tax rate and providing these projects now and not twenty years from now at a higher cost to its citizens. Governmental financing today has taken on a complete new facade. The days of pay as you §o died with the ~dvent of inflation. No longer can local governments afford the luxury of saving their money over long periods of time in order to finance their capital improvements as I shall demonstrate in the following. If ten years ago a local government needed to finance a capital improvement in the amount of, let us say, $280,000.00 and was to be built today, that project would cost $456,000.00 or an increase of $176,000.00 which represents a 62.5% increase due to inflation. That same project could have been bonded ten years ago at a ~'~ate of less than 4% and built at that time for $340,000.00, an increase of $60,000.00 or 21.4% increase due to interest. Citizens would have had the use of the improvement for ten years and saved $116,000.00. If it had been bonded at today's rate of 6%, the cost would have been $373,000.00 or a savings of $93,000.00 which is still quite substantial. The one item which has not been considered in the above is interest accumulation over a ten-year period if the project had been one of pay as you go. Considering the inflated cost of $456,000.00 a local government would need to invest $36,300.00 a year at 5% interest and compounding itself, it would produce $93,500.00 over a ten-year period which means the project would cost $362,500.00 which is still $22,500.00 more than bonding and the citizens would have had the project some ten years before. Unfortunately, most cities use accumulated interest on investments in their General Fund and is not applied to the Capital Improvement Projects which again brings the cost for the hypothetical project to its original cost. Discussion followed at which time Councilman Mammini stated that his concern was to try to affect a savings for the City and~omplish the projects. Discussion followed in this regard after which Mayor Ahern stated that it was!-~is feeling the matter should be further studied. There being nothing further, Councilman Steinkamp moved, seconded by Councilman Mammini and regularly carried, that the meeting be adjourned. Time of adjournment: 9:12 p.m. APPROVED: Clerk * The remarks contained in these Minutes are excerpts and not verbatim. The proceedings of this meeting are taped and ali discussions are contained therein. ADJOURNMENT TO EXECUTIVE PERSONNEL SESSION: STUDY MEETING WEDNESDAY, DECEMBER 30, 1970 At 10:35 p.m., the City Council in accordance with Government Code Section 54957,6 adjourned to an Executive Session with the Acting City Manager, its designated repre- sentative, in order to review its position and instruct its designated representative. regarding Police Department Wage and Fringe Benefit negotiations. ADJOURNMENT: The City Council adjourned the meeting at 10:55 p.m.