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HomeMy WebLinkAboutMinutes 1990-01-24Mayor Richard A. Haffey Council: Jack Drago Gus Nicolopul os John R. Penna Roberta Cerri Teglia AGENDA ADJOURNED REGULAR MEETING CALL TO ORDER: (Cassette No. 1) ROLL CALL: 1. Interview of applicants for the Conference Center Board. 2. Study session to discuss the Capital Improvement Program. Councilman Penna Arrived at 6:07 p.m. MINUTES City Council Municipal Services Building Community Room January 24, 1990 ACTION TAKEN ADJOURNED REGULAR MEETING 6:00 p.m. Mayor Halley presiding. Council present: Council absent: Drago, Nicolopulos, Teglia, and Haffey. Penna. Mayor Halley stated that the interview would not be held until 6:30 p.m., and Council would interrupt discussion of Item 2 for the interview if necessary. City Manager Armas stated that staff had not met his goal to have Council review the Capital Improvement Program with the Operating Budget of the current fiscal year, but staff was very committed to meeting that goal this year and a study session would be held in May to present a program budget. He briefly described the development of the budget: looking at more specific items to pursue for the balance of this year; looking at a maintenance and repla- cement program for public facilities; looking at expenditures through the current fiscal year; looking at the sche- dule overall he felt reflected a com- pilation rather than a true priority list with respect to the dollars available; all of these things would be looked at to see how it fi ts into the revenue available before this was presented to the Council in May. Councilman Penna took his seat at the podium at 6:07 p.m. City Manager Armas stated that in response to Council direction to see whether Buri Buri Park improvements could be funded at one time rather than phase it over multiple years - he recommended A G E N O A A C T I 0 N T A K E N~ 2. Study session - Continued. that it could be done. He stated that to accomplish it would require a supplemen- tal transfer from the undesignated fund balance of $700,000, and felt that this was able to be done and funds were available based on an analysis. He stated that when the budget had been adopted this year, he had indicated that he expected to end the year with an unde- signated fund balance of $1,600,000, and the forthcoming comprehensive annual financial report would delineate that the revenues were stronger than expected. He stated that if the economy continued to be healthy, he believed there would be a fund balance of $1,800,000, and it would be appropriate to transfer $700,000 in funds to do Buri Buri at once and would still leave sufficient funds to be in a good position to deal with catastrophic events, salaries for employee groups, and down turns in the economy. He stated that it was appropriate to go forward on the project. He stated that if the Council should not desire to transfer the funds, then the other projects must be reexamined. Councilman Nicolopulos expressed concern over the new City Manager starting from scratch when there were anticipated pro- jects from his predecessors that had been carried forward over to the present, and questioned whether this was good for the Counci 1. City Manager Armas stated that projects had been put in the budget in the past, and if there had not been funds available the items had merely been carried fo rwa rd. Vice Mayor Drago stated that for two years there had been certain five year plans to which he was still opposed, and if the Council was to vote on one of these tonight he was prepared to go after them tonight. Mayor Haffey stated that it was very 1/24/90 Page 2 AGENDA ACTION TAKEN 2. Study session - Continued. important that the Capital Improvement Budget coincide with the Operating Budget, so that the City could make good finan- cial decisions, and one of the disap- pointments the Council has had for a number of years with a number of City Managers, because the Capital Improvement Budget followed from six to nine months behind the Operating Budget. Director of Public Works Parini stated that it was also his goal to have the Capital Improvement Budget before Council with the Operating Budget, and as a new member of staff was also concerned about continuity of programs. He stated that staff was proposing that the Council move fast on the following projects: design of Oyster Point Overcrossing which was to be done con- currently with the EIR completion for Caltrans and Southern Pacific Railroad reviews; Hickey Blvd. Project; Francisco Drive Storm Drain Project; Buri Buri Park; Sewer Program five year plan and moving forward on the major improvements. City Manager Armas stated that this Spring he wanted to present some choices to Council on whether to finance the sewer improvements and do them faster with the income the City has rather than phase it over many years and make better use of City money. Discussion followed: street maintenance program; fund balances and estimated revenues; Councilman Nicolopulos was con- cerned with the validity of the estima- tes, and use of the words "discrete and reliable revenues;" that the words should have been "a discretionary source of funds;" Councilman Nicolopulos con- cerned that this could deviate to a minus rather than a plus; City Manager not con- cerned that the revenue would go into a minus; Mayor Halley felt the City would be able to identify the Capital Improvement Program funds if they were combined with the Operating Budget, and 1/24/90 Page 3 AGENDA ACTION TAKEN 2. Study session - Continued. that the transfers would be more distinquishable to the public; when the budget came back to Council for final action there would be totals; what the current estimates were for the Oyster Point Overcrossing; earmarking sources of revenue for the Overcrossing Project; Councilwoman Teglia wanted Council kept informed on the Hickey Blvd. Extension Project; that the full allotment of Measure A, $500,000, was for Hickey Blvd., as well as SB140 funds; that resurfacing of streets was included in the Operating Budget after the transfer of Gas Tax funds to the General Fund, etc. Further discussion followed: railroad crossings; storm drains; how the storm drain projects were prioritized by staff; how extensive was the Alden Project storm sewer improvements; sanitary sewers; that the projects for sanitary sewers and the Water Quality Control Plant were con- sistent with previous Council action; Councilman Nicolopulos concerned about previous shifting of money from the Sewer Fund, which had been objected to by the previous practical City Engineer, who felt the money was needed for future sewer plant repairs; Director of Public Works Parini agreed that the City needed all the reserves for future sewer plant repairs; Councilman Nicolopulos' caveat -- that staff did not find that fund as a lucrative spot to shift funds, and keep the fund in tact for future repairs; public facilities; Councilmember Teglia cited needed work on the West Orange Library; that the $5,000 in the Budget was to allow a consultant to analyze the work needed at the libraries; Vice Mayor Drago had concern over some of the pro- jects in the public facilities part of the budget; parks; master plan had been completed; use of silicone sand on ballfields; improvements needed on totlots in Winston Manor, and identifying other playlot areas in the City needing improvements; Common Green areas being subsidized by other areas; a forthcoming 1/24/90 Page 4 A G E N D A A C T I 0 N T A K E N ~.;,;~;:L~ ~, 2. Study Session - Continued. e Interview of applicants for the Conference Center Board. Closed Session for the purpose of the discussion of personnel matters, labor relations, property negotiations and litigation. ADJOURNMENT: RESPECTFULLY SUBMITTED, 'Barbara A. Battaya, City Ct~rk City of South San Francisco report on maintenance and equipment needs for Common Greens; traffic, etc. Mayor Haffey stated that Council looked forward to a resolution on a future agenda that incorporates the 1989-90 capital improvements, but eliminates the future planning aspects of it; and use this Spring as an opportunity to set the priorities mentioned so the Operating Budget would actually fold into the Capital Improvement Program. He stated that Council would have to com- mit some time to study sessions to put together a planning program and not impede the progress on programs. He stated that at the same time the Council had to act on 1989-90 capital improve- ments, but wanted a fresh start on five year programs. City Manager Armas stated that with that understood, the Capital Improvement Program would be submitted to the Planning Commission for determination of the General Plan, and it would come back to the Council at the second meeting in February. Council interviewed Mr. Smith. Council chose not to hold a Closed Session. M/S Teglia/Drago - To adjourn the meeting. Carried by unanimous voice vote. Time of adjournment was 7:15 p.m. APPROVE?.. ~ ~/// Ri cha~a f~f;y~o r City of South San ~ancisco 1/24/90 Page 5 AGENDA ACTION TAKEN 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. 1/24/90 Page 6 Mayor Richard A. Haffey Counci 1: Jack Drago Gus Nicolopulos John R. Penna Roberta Cerri Teglia AGENDA CALL TO ORDER: (Cassette No. 1) ROLL CALL: PLEDGE OF ALLEGIANCE AGENDA REVIEW City Manager Armas Requested: - Consider Item #9 before hearing Item #8. ORAL COMMUNICATIONS ~oo~ MINUTES City Council Municipal Services Building Community Room January 24, 1990 ACTION TAKEN 7:50 p.m. Mayor Hal:fey presiding. Council present: Council absent: Dra§o, Nicolopulos, Penna, Teglia, and Haffey. None. The pledge was recited. AGENDA REVIEW So ordered. ORAL COMMUNICATIONS Mr. Robert Martin, Historic Oldtown Homeowners Assn., stated that Assemblywoman Speier would be their guest speaker on Monday, 2/12/90, at Martin School and invited everyone to attend. Mr. Duane Wilkerson, Community Mediation Program, stated that the organization was a program of the Peninsula Resolution Center, and proceeded to describe the free services offered: free mediation services for conflicts in the neigh- borhood, i.e., such as barking dogs, con- sumer complaints, and landlord tenant disputes. He expressed appreciation to Council and staff for their support of the program. He stated that there were 24 cases from the start of the program last year, and he had made a number of community presentations. Mr. Dan Shattuc, 907 W. Cardinal Dr., Sunnyvale, stated that he had been following Terrabay from the inception of the Project, and had some questions, con- cerns and observations he wanted to point AGENDA ACTION TAKEN ORAL COMMUNICATIONS ORAL COMMUNICATIONS out and receive a written reply to his questions and comments. Mayor Halley stated that Council would take Mr. Shattuc's comments under advise- ment, and would send him a copy of the transcript and reply to any of his questions and concerns that could be addressed. Mr. Shattuc stated that he had come before the Council numerous times, and he had to repeat his request for answers numerous times. He stated that he visited South San Francisco frequently, and during the first rainfall in October the water coming off the mountain was like choco- late milk, and there was a tremendous amount of silt in the water that even- tually goes into the Bay because of the condition that existed right now and would go on for quite a while. He questioned what was being done to slow down the erosion. He stated that there was supposed to be plantings of grasses for divergence of water. He stated that his sister lived on Belmont and the water was so bad on a certain day that you could not come out of your house and get into your car. He stated that since then they had put in a drainage pipe down Belmont which seemed to have taken care of the problem. He stated that it showed that the mountain was basically like a bowling ball, smooth and disruptive', and there is no absorption of the water and it is going to flow wherever gravity takes it - and it takes it in some weird places. He stated of the two times there had been flooding on 101 - which means again that there was a lot of water coming from S.S.F. and the hillside, and occurring in some cases with the high tide. He continued, which is the way it was reported in the first major incident, but 1/24/90 Page 2 AGENDA ACTION TAKEN ORAL COMMUNICATIONS (Cassette No. 2) ORAL COMMUNICATIONS in the second incident - if you will look at the high tide when the flooding on 101 occurred, that there was a recorded five or six hour difference between those two times. He expressed concern that this was something that was going to be occurring on and off even with develop- ment, because there is no absorption now, and there won't be when there are streets and homes up there. He stated that the problem of silting of the Bay was unac- ceptable, and some one should do something about it. He said that last Sunday he had taken a little walk and proceeded to detail the walk: walked up to Randolph; walked all along the section where it was basically like a little drain trough there and found at least one or two or maybe more instances where the drain trough became undermined; the water was coming down, but was not coming into the troughs - it was going over the surface of the trough, and in one case it was on both sides; there was undermining on the hillsides and on the down slope sides; that he would be taking a walk tomorrow with the Inspector. He said that he felt he had found earthquake damage on the drain, the water basins, two of them at two different spots. He stated that when he had talked to Richard Harman in the Planning Dept., he had told him these had been put in after the major earthquake, so that con- cerned him that if it is earthquake damage -- because there is a major crack. He stated that just like a crack in your wall, it is not separation cracks or expansion, that it occurred perhaps during one of the after shocks - not the major shock. He stated that it was in the back wall, so what you have is like a broken bath tub that is going to leak water and should be looked into. He addressed his habitat rehabilitation 1/24/90 Page 3 A G E N D A A C T I 0 N T A K E N ili, ,?,~ ORAL COMMUNICATIONS ORAL COMMUNICATIONS concerns: there was a Habitat Conservation Plan on this Project; that there is at least one area that is being constructed to repair what was known as a minor slope repair that covers a couple of acres; that there was a lot of erosion going on in that area, and it needed to be replanted with maybe plants which are what the stipulations are; there needed to be erosion control planting, and habi- tat rehabilitation plans. He hoped the City would address these questions and concerns. Mayor Halley stated that a copy of the proceedings would be sent to Mr. Shattuc, and the City would reply to his questions. Mr. Shattuc stated that he found out that the Inspector on the Project had only been on the job for four weeks, and did not know how much interfacing the Inspector had had with his predecessor. He questioned if there was enough inspec- tion really going on up there - was there enough staff going up there -- what hap- pened in the case of the crack he had mentioned. He stated that they were painting a real fine concrete over the surface of the wall, which obviously if someone had not seen the crack this would hide it. He stated that this was what had stirred him up, because it would be real easy to miss that and proceed with the development - fill that crack up, and we get the wet weather and you have a broken bath tub. Mr. Pedro Gonzales, 804 Olive Ave., spoke of successful efforts to keep the youth away from drugs and undesirable activi- ties. He introduced a group of youths from the Cypress Park area who had New Year's resolutions concerning drugs and certain activities. He commended Mr. Joe Valcazar's efforts on 1/24/90 Page 4 AGENDA ACTION TAKEN ORAL COMMUNICATIONS COMMUNITY FORUM CONSENT CALENDAR Approval of the Minutes of the Adjourned Regular Meeting of 12/14/89, Special Meeting of 1/10/90, and Regular Meeting of 1/10/90. 2. Approval of the Regular Bills of ~ 1/24/90. 3. Motion to accept the Aircraft Noise Insulation Project Phase IV as complete in accordance with the plans and specifications. Resolution approving and author- izing execution of a development agreement for construction of off-site improvements in con- nection with the expansion of United Parcel Service Distribution Fac i 1 i ty. A RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT FOR OFF-SITE PUBLIC IMPROVEMENTS Resolution authorizing execution of an agreement with San Mateo County for receipt of $26,223 and appropriate these funds for a ORAL COMMUNICATIONS Saturdays for the last 16 months to bar- beque hot dogs and hamburgers for these children at Cypress Park, and for winning their respect, trust and confidence. He stated that he, Joe, and Mr. Armando Ruiz had been doing this in conjunction with the Historic Oldtown Homeowners Assn., the City, and staff to make the area drug free. COMMUNITY FORUM No one chose to speak. CONSENT CALENDAR Approved. Approved in the amount of $901,404.79. Councilman Penna suggested that in future this item read, "Claims to be confirmed at the Regular Meeting." So ordered. Removed from the Consent Calendar for discussion by Councilmember Teglia. Removed from the Consent Calendar for discussion by Councilmember Teglia. 1/24/90 Page 5 CONSENT CALENDAR 5. Resolution - Continued. program to promote recycling. A RESOLUTION AUTHORIZING AN AGREEMENT BETWEEN THE COUNTY OF SAN MATEO AND THE CITY OF SOUTH SAN FRANCISCO FOR RECYCLING o Resolution approving a budget amendment to appropriate $500.00 for the San Mateo County Center for Women. A RESOLUTION APPROVING BUDGET AMENDMENT 89-10 TO THE 1989-1990 OPERATING BUDGET Resolution approving a budget amendment for fire engine repairs of $10,395.00. A RESOLUTION APPROVING BUDGET AMENDMENT 89-11 TO THE 1989-1990 OPERATING BUDGET Resolution approving and author- izing execution of a development agreement for construction of off-site improvements in con- nection with the expansion of United Parcel Service Distribution Faci 1 i ty. A RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT FOR OFF-SITE PUBLIC IMPROVEMENTS CONSENT CALENDAR Removed from the Consent Calendar for discussion by Vice Mayor Drago. Removed from the Consent Calendar for discussion by Councilmember Teglia. M/S Teglia/Drago - To approve the Consent Calendar with the exception of Items No. 4, 5, 6, 7, and the wording change on Item No. 2. Carried by unanimous voice vote. Councilmember Teglia stated that she wanted the record to show that she neither participated in the discussion nor intended to participate in the vote due to a potential conflict of interest. She stated that her oldest son is employed by this company and still lives at home, and she wanted to make sure there was no problem. M/S Drago/Nicolopulos - To adopt the Resolution. Councilmember Nicolopulos requested an clarification of the words in the staff report, "however, the use permit leaves 1/24/90 Page 6 '~ A G E N D A A C T I O N T A K E N ~i~,:..~:~ 4. Resolution o Continued. future reimbursements uncertain and not guaranteed ." Director of Public Works Parini related the following: he thought that when the Planning Commission approved the use per- mit and put this burden on the Developer to make this off-site roadway, the Commission wanted to make clear that there was a possibility that other Developments in the area might be sharing the cost; and there was a possibility in the future that the Redevelopment Agency mi§ht share the cost; but the Commission very carefully stated that there was no guaranty that this would ever happen, so the Developer proceeds with his project taking some risk in entering into the agreement - guaranteeing it would be done, and knowing that there is a ten year maximum time limit for any possible reimbursement. Councilmember Nicolopulos questioned the word "could" in relation to the Redevelopment Agency - could fund a por- tion of the project. He stated that the word "could" was nebulous, and caused him some alarm if this was approved as writ- ten, because most of the staff was new to the City. City Manager Armas stated that the reason the language appeared was due to Council action this summer on the redevelopment plan for the Downtown Central Project that dealt with a complete list of public improvements. He stated that because this particular improvement had been listed there was always the possibility that the City could use its tax increment dollars to offset some of the expenses for those improvements. He stated that could was permissive, optional, not obli- gatory, so because this road is within the Downtown Central area staff wanted to note that should the Agency decide at a later date that it wanted to participate at a later date -- it could. Discussion followed: that the Developer 1/24/90 Page 7 AGENDA ACTION TAKEN 4. Resolution - Continued. (Cassette No. 3) must construct the improvements; staff believed that the recent expansion triggered additional traffic, and it was the responsibility of the Developer to pay for the road; that this was a new use permit for the expansion; that the agreement had been negotiated with the Developer; Councilman Nicolopulos expressed concern over the Council approving a document that was nebulous; Mayor Haffey commended staff for nego- tiating some public improvements that the Developer could have said were required by the Redevelopment Agency, instead staff was able to get hundreds of thousands of dollars of improvements; and he did not see the merits of Councilman Nicolopulos' criticism; Councilman Nicolopulos stated that when he said something it was criticism, when the Mayor said something it was data and analysis; he felt that there was nothing more useless than doing something ele- quently that need not be done, which fit this case very clearly; Councilman Drago stated that he did not have a problem with this because he thought it was open ended, and the whole purpose was to pro- mote improvements; Councilman Penna had a serious concern that there was no staff report with the packet; that it was his understanding that the integrity of the clay top seal would be broken; concern about toxic waste on the site which was once a garbage site; concern that in the agreement, as he understood it, this City would be responsible if toxic waste was found on the site; the Council should realize that there are a lot of gas sta- tion sites going vacant because people don't want to fix them because of clean- up problems; the City could be talking about millions and millions of dollars if we have to clean the site if toxic waste was found on it; did not have a problem with this if the integrity of the clay cap seal was not broken; agreement says City will not only be responsible, but the Developer could come back and sue the City for all damages; Mayor Halley stated that the staff report said that a soils 1/24/90 Page 8 AGENDA ACTION TAKEN 4. Resolution - Continued. Resolution authorizing execution of~ an agreement with San Mateo County for receipt of $26,223 and appropriate these funds for a program to promote recycling. A RESOLUTION AUTHORIZING AN AGREEMENT BETWEEN THE COUNTY OF SAN MATEO AND THE CITY OF SOUTH SAN FRANCISCO FOR RECYCLING Resolution approving a budget ~o~ amendment to appropriate $500.00 ~l for the San Mateo County Center for investigation had been performed, and had concluded that it was unlikely that the road was located within the closed land- fill area; City Attorney Armento responded no, because it was unlikely but we can't say with certainty that we might not run into anything and impro- vised that if we run into something, then we will conduct some tests and depending on the outcome of those tests further action will be taken all in a given time period; City Attorney related that a lot of contingencies were written into the agreement; Councilman Penna had concern over the lack of an investigative report on whether holes were bored into the site, and where the liability expo- sure came in; Director of Public Works Parini stated that ultra sound methods were used, rather than deep borings, and the soils engineer was satisfied that the roadway was being located on the original shoreline type of soil rather than on the clay cap seal. Motion and Second failed: Councilmembers Nicolopulos and Penna voted no; Councilmembers Drago and Haffey voted yes; Councilmember Teglia abstained. Mayor Haffey requested the item be reagendized with specific information to make the Council more comfortable with the item. Councilmember Teglia requested that the Scavenger Subcommittee have some ability to monitor what takes place, and have a report back to Council on the efficacy of the program. M/S Teglia/Nicolopulos - To adopt the Resolution. RESOLUTION NO. 7-90 Carried by unanimous vote. Vice Mayor Drago stated that he did not have a question on the need for such a center, but why it should appear on the 1/24/90 Page 9 AGENDA ACTION TAKEN e Resolution - Continued. Women. A RESOLUTION APPROVING BUDGET AMENDMENT 89-10 TO THE 1989-1990 OPERATING BUDGET Resolution approving a budget amendment for fire engine repairs of $10,395.00. A RESOLUTION APPROVING BUDGET AMENDMENT 89-11 TO THE 1989-1990 OPERATING BUDGET Consent Calendar based on a letter. He questioned how the Council could say no in future to someone soliciting funds. He further questioned if the Center had received CDBG funds in the past. City Manager Armas did not believe that the Center had received CDBG funds in the past. M/S Drago/Teglia - To adopt the Resolution. RESOLUTION NO. 8-90 Carried by unanimous voice vote. Councilmember Teglia expressed concern that as a Budget Subcommittee Member that this item had not appeared on the last budget to take care of the extensive rust and body deterioration. She requested data on the Fire Department's emergency equipment as to age and condition to be better prepared for the next budget. Discussion followed: that $10,395 would be a supplemental budget appropriation, and the remainder would come from the risk management account; that due to budget constraints in the last five years, this item had not been of a high enough priority; that the rust originated from the inside out, and requests had been made to the Dept. of Public Works to paint the engine; that the City Manager had to weigh competing needs of depart- ments during the budget process; that the request in the current budget had only addressed the vehicle and apparatus replacement program. M/S Nicolopulos/Penna - To approve the repair of damages from the accident, and let the other things wait until budget time. Councilmember Teglia pointed out that this was not cost effective because if you go back at budget time to take care of the rot and rust it would cost that much more. 1/24/90 Page 10 AGENDA ACTION TAKEN 7. Resolution - Continued. ADMINISTRATIVE BUSINESS 9. Financial feasibility study con- cerning proposed commercial/parking structure. Councilmember Penna withdrew his Second to the Motion. Mayor Haffey stated that the Motion died for lack of a Second. M/S Teglia/Penna - To adopt the Resolution. RESOLUTION NO. 9-90 Vice Mayor Drago stated that he did not like the process, but wanted the engine to be in top condition and would vote for it. Carried by unanimous roll call vote. Councilman Nicolopulos expressed concern over approving these requests at random rather than following the system set up through the budget process. ADMINISTRATIVE BUSINESS Director of Finance Marx read the staff report concerning the concept of a parking structure at Cypress Ave. between Grand and Miller Aves., and the proposal for a three story structure to be constructed on the site bounded by Grand, Cypress and Miller. She stated that the ground floor of the property along Grand Ave. would be devoted to commercial activities with the remainder of the structure being used for parking (a copy of the staff report is on permanent file in the City Clerk's Office.) She stated that the firm of Williams- Kuebelbeck had representatives here tonight to present the findings of the market and Financial Analysis for the site, and pointed out that the report used some independently derived estimates for construction. She stated that alter- natives would be reviewed after the presentation. Mr. Bruce Williams presented his Firm's findings: that the scope of work had 1/24/90 Page 11 AGENDA ACTION TAKEN ADMINISTRATIVE BUSINESS 9. Financial study - Continued. ADMINISTRATIVE BUSINESS been a feasibility analysis of the deve- lopment of 20,000 sq. ft. of retail space as a component of the proposed 267 space parking garage in two phases; 1) evaluate the market for retail uses downtown; 2) financial analysis analyzed the potential return to the City and private parties from the retail uses, and analyze the impacts of various ownership structures on the cities return; and to analyze the cumulative impact of the parking and retail development on the Parking District and the Redevelopment Agency. He proceeded to describe the report in detail. Councilman Penna questioned if he had a conflict of interest in that he had just put a tenant in a building in the down- town area - and this may be part of this, and had received a commission of $1,000 and had no other responsibility with that property. City Attorney Armento stated that it was her understanding that the matter before the Council tonight was essentially the receipt of the report, and then giving some direction as to whether or not staff should continue to pursue this topic and bring back alternatives. She continued, to the extent that there is no particular decision that is going or may be going to be made this evening concerning the actual property in question, and whether or not something should in fact occur on the property; then Mr. Penna would not be precluded from participating in the general concept. She stated that the fact that he received a commission of over $250.00 - if further action is to be taken by the Council and if any decision is going to be made which will actually entail doing something that involves the property that was a source of income, then during the time it was a source of income he must abstain from involvement in any discussions. Councilman Penna stated that he had been 1/24/90 Page 12 AGENDA ACTION TAKEN ADMINISTRATIVE BUSINESS 9. Financial study - Continued. ADMINISTRATIVE BUSINESS the broker involved with the sale and purchase of the Cypress/Miller lot, and received a commission from the sellers on that property approximately two years ago. He again questioned if there was a conflict of interest on this item or on Item #8. City Attorney Armento stated that the Cypress/Miller lot had been in City ownership for more than one year of time, so as far as the Cypress/Miller lot goes - there is no conflict because the tran- saction was so remote in time and the seller who paid the commission is not a player in this particular item. Councilman Penna stated that he also manages a piece of property that is in the same area, and had not received in excess of $10,000 and questioned if this was a conflict of interest. City Attorney Armento stated that if the property you manage is not a property that is under discussion, but is essen- tially a property that is in the same neighborhood, then under the indirect conflict of interest provisions there are various thresholds required or levels that if you reach those levels you must abstain. She continued, the levels do have to do with the gross revenue to that particular property or the expenses which are incurred or -- say with regard to that property, the one level deals with a sum of $2,500 and one level doesn't come into play until you reach $10,000. She stated, if the receipts you get from your management fall under those results -- actually not the receipts so much but, if the activity in question with regard to the parking lot does not forseeably cause either that $2,500 threshold in the one case, and a $10,000 threshold in the other case be reached by that neigh- boring property, then you do not have a conflict with regard to those properties. Mayor Haffey stated that based on those 1/24/90 Page 13 AGENDA ACTION TAKEN ADMINISTRATIVE BUSINESS 9. Financial study - Continued. ADMINISTRATIVE BUSINESS opinions, the Councilman will participate in these discussions, and will have the opportunity to vote on the item. Mr. Richard Welker, Parking Place Commissioner, stated that the servicing of the debt was rather massive as indi- cated in the staff report, and was $770,000 a year more than the Parking District brings in. He stated that the commission felt that if a project of this sort should be carried out it would have to be under the auspices of the City and not under the Parking Place Commission. Mr. Lou Dell'Angela, 460 Gardenside Ave., stated that when the Council got to the item of the lot on Cypress and Miller Aves., he wanted them to hold off on this item until the other was settled. He stated that a parking lot was needed near Buon Gusto restaurant and other businesses, and he was sure the decision to move to that site was predicated on the parking lot; and if the parking lot was gone and replaced by a parking struc- ture - he felt this would betray a trust. He stated that the study showed that the parking structure was going to run a deficit of anywhere from $500,000 to $750,000, and he did not feel that this was a very sound business decision to have a parking garage in which you have to divert that amount of redevelopment funds to operate. He stated that this was putting the cart before the horse, because the City had not set priorities on the redevelopment funding program. He stated that if the City proceeded with this particular project, essentially the City was granting this parking garage number one priority for redevelopment funds. He felt it would be a wiser course of action for the City to view this garage in line with other priorities with the intra structures and such on a list. 1/24/90 Page 14 AGENDA ACTION TAKEN ADMINISTRATIVE BUSINESS 9. Financial study - Continued. ADMINISTRATIVE BUSINESS He did not feel that a commercial building should be built on this parking lot. He stated that there were a lot of old buildings on Grand Avenue, and if the City was going to spend money there should be some sort of incentive program where the owners of the existing buildings can renovate those buildings and make them competitive in the market. He felt that to get in the real estate business and build 20,000 sq. ft. of commercial space and go out and try to attract leasees to the building -- he felt to be a mistake. He stated that the report encompasses a larger area than the downtown, it actually went all the way to E1Camino Real, and although it may attract busi- nesses to other areas - it may not attract them to the downtown area. He stated that if the City proceeded with a commercial building as a landlord you may find that the market is not that strong downtown, and the City could be struck with a real problem piece. He stated that there was a new presence on the 300 block of Grand Ave. and the City should be commended for attracting Newberry's, the renovation of Crocker Bank, and a new furniture store. He felt that this was where the emphasis should be placed. Vice Mayor Drago stated that Mr. Dell'Angela should be aware that if the Council acts on this item - then the next item will be removed, and he should speak on the item now. City Manager Armas related: that Council had previously directed staff to do more detailed work on this idea after a pre- sentation in the Spring, and that is why the separate analysis was done; that it had been structured in such a way to afford Council an opportunity to consider moving forward on the Cypress/Miller lot 1/24/90 Page 15 AGENDA ACTION TAKEN ADMINISTRATIVE BUSINESS 9. Financial study - Continued. ADMINISTRATIVE BUSINESS in terms of paving; and there were oppor- tunities available to keep the concept alive and respond to the interest voiced by the Commission and others to provide immediate parking; the report from the consultant said the commercial under- taking was viable; that the parking structure needs some assistance was not surprising, because parking structures by themselves rarely pay for themselves; to accommodate both we can do minor improve- ments on the lot for parking, and staff could be directed to identify different approaches to enable the Council on how to proceed, i.e., City being involved in a real estate capacity; whether to eva- luate a joint participation with property owners given that we have some land to contribute; whether in a redevelopment role to assemble parcels and solicit proposals. Mayor Halley stated that Item 9 was for Council to give direction regarding the concept of moving forward in the manner described, and staff would come back to Council at a later time regarding the process for developing the site and selecting an appropriate tenant mix. Discussion followed: on the alter- natives; providing 30 stalls with limited expense; Councilman Penna felt that the City should not be involved in real estate because it was a risky venture; that $1,200,000 was invested 15 years ago and was sold for $3,200,000 for a 7% return on City money, which would have realized a greater return invested in a better manner; that no one building was a catalyst to rebuilding the downtown; that a parking structure should not be located at the entrance of a City; the City should look to decking parking lots; whole block areas should be looked at for redevelopment monies for parking struc- tures; should be looking at paving and asphalting Cypress and Miller lot for immediate parking needs; Mayor Halley 1/24/90 Page 16 AGENDA ACTION TAKEN ADMINISTRATIVE BUSINESS 9. Financial study - Continued. (Cassette No. 4) e Resolution approving plans and specifications, authorizing the work, and calling bids for the Cypress/Miller Municipal Parking Lot. A RESOLUTION APPROVING PLANS AND SPECIFICATIONS, AUTHORIZING THE WORK AND CALLING BIDS FOR THE PARKING LOT IMPROVEMENTS AT CYPRESS/MILLER MUNICIPAL PARKING LOT ADMINISTRATIVE BUSINESS stated that in being involved with the Redevelopment Agency, that Body would be involved with real estate; Councilmember Teglia stated that the City had purchased Chestnut and Grand for a public purpose, and not for a real estate investment; wants to keep the concept alive for a garage structure, and have the lot serve an interim use; Councilmember Nicolopulos wanted to see the Council use innovative strategies, bold ideas, superior execu- tion, and superior understanding of the mores and customs that distinguish busi- nesses and government; and felt manage- ment often spent a great deal of time measuring the wrong things; nothing is more useless than doing exceeding well that which need not be done at all; Council needs vision, strategy, projects, and tactics to deal with solutions not issues; Councilman Penna felt the major problem in the downtown was parking, and if Council allowed the Parking District to deck their parking lots it would be alleviated, etc. M/S Drago/Teglia - To select Alternative #3 - pave the Cypress lot minimally, a few thousand dollars, develop commercial spaces on Grand Ave. with a building structure designed to accommodate the addition of a parking structure at a later date. Carried by majority roll call vote, Councilmember Penna voted no. City Manager Armas stated that this item was on the agenda in the event the Council wanted to go to bid on this lot. Mr. Dell'Angela stated that he represented So. City Ford, who is very much opposed to this proposal. He stated that So. City Ford currently leases the lot from the City as a storage lot for 50 cars, and if the lot was converted it would have an economic effect on the business. 1/24/90 Page 17 AGENDA ACTION TAKEN ADMINISTRATIVE BUSINESS 8. Resolution - Continued. RECESS: RECALL TO ORDER: 10. Motion to accept the report and ~>~q schedule a Public Hearing for 2/14/90 for the South San Francisco Scavenger Co. request for a rate increase to recover increased costs due to higher landfill costs. ADMINISTRATIVE BUSINESS He did not think that a parking lot was needed on that site when based on a 1988 study it was determined that the lot was only needed during the lunch hour. He did not feel that the City should spend $100,000 for a new parking lot when there were many vacancies on the lots. He stated that the City would only realize $500 a month from parking fees for this lot, when they are currently receiving $1,000 from So. City Ford's lease. He felt there were greater priorities in the downtown than a parking lot because of major environmental problems, and asked the Council to reconsider their decision. M/S Drago/Teglia - To adopt the Resolution with minimum specifications. RESOLUTION NO. 10-90 Councilmember Penna related that So. City Ford had vacated the property when the lot was sold, and became a tenant of the City on a month to month basis and was aware that the City had plans to make it into a parking lot. Carried by unanimous voice vote. Mayor Haffey declared a recess at 9:55 p.m. Mayor Halley recalled the meeting to order at 10:05 p.m., all Council present. City Manager Armas explained recent leg- islation: new requirements on landfill closure and monitoring, imposes fees on landfill operators to fund state landfill activities and the operation of the Integrated Waste Management Board. He stated that BFJ is the operator of Ox Mountain Landfill which has thirty months of remaining life to the site. He stated that the fees to the Scavenger Co. went from $.00 a ton to $14.00 effective 1/24/90 Page 18 AGENDA ACTION TAKEN __ ADMINISTRATIVE BUSINESS 10. Motion - Continued. LEGISLATIVE BUSINESS 11. Motion to waive reading and introduce an ordinance to change the meeting date of the Planning Commission to the first and third Thursday of each month. AN ORDINANCE AMENDING CHAPTER 2.56 OF THE SOUTH SAN FRANCISCO MUNI- CIPAL CODE TO CHANGE THE REGULAR MEETING DATES OF THE PLANNING COMMISSION AND RELATED PROVISIONS 12. Motion to waive reading and introduce an ordinance amending the abatement of nuisance ADMINISTRATIVE BUSINESS 1/1/90, and wanted user increase from $6.40 to $7.00 per month to recover their costs. He stated that a public hearing was needed, and that staff would present a detailed analysis and evaluation at that meeting. Councilmember Teglia stated that she could not attend the next meeting, but would put her concerns in a report to be read into the record at that meeting. She expressed concern that if the rates were rolled back at some point the users would have the benefit of a reduction of rates, however, she realized that Blue Line Transfer would have the benefit of the roll back. She hoped this would be addressed in City approvals. M/S Teglia/Drago - To accept the report and schedule a Public Hearing for 2/14/90 for the S.S.F. Scavenger request for a rate increase to recover increased costs due to higher landfill costs. Carried by unanimous voice vote. LEGISLATIVE BUSINESS City Clerk Battaya read the title of the ordinance in its entirety. Director of Planning Smith stated that new State Law required a 21 day notice for negative declaration applications, and that this could be effected by changing the Planning Commission meetings to the first and third Thursday of each month; and would relieve the workload of the clerical staff. M/S Teglia/Drago - To waive reading and introduce the ordinance. Carried by unanimous voice vote. City Clerk Battaya read the title of the ordinance in its entirety. 1/24/90 Page 19 AGENDA ACTION TAKEN LEGISLATIVE BUSINESS 12. Motion - Continued. ordinance. AN ORDINANCE AMENDING PROVISIONS OF CHAPTER 8.24 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE TO CLARIFY THE DEFINITION OF A PUBLIC NUISANCE AND TO IMPOSE THE COST OF ABATING SUCH NUISANCES AS A SPECIAL ASSESSMENT PUBLIC HEARINGS 13. Public Hearing - ZA-89-56, Negative Declaration No. 668 - Zoning Amendment and environmental deter- mination of same to add provisions to the C-1 Zone District to require use permits for expansion of tenant spaces to 15,000 square feet or larger - Public Hearing conducted and closed on 1/10/90, and the item was continued. Motion to approve Negative Declaration No. 668; Motion to waive reading and introduce an ordinance. AN ORDINANCE AMENDING SECTION 20.22.030 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE TO REGULATE TENANT SPACES 15,000 SQUARE FEET OR LARGER IN RETAIL COMMERCIAL C-1 DISTRICTS LEGISLATIVE BUSINESS Director of Economic & Community Development Costello stated that this ordinance would amend the 1985 ordinance through: clarification of definitions; cost recovery to the City; the hearing process, and penalties and violations. Discussion followed: that no one had offered input at the Planning Commission meeting on this item; legal notice pro- cess; that an individual could request a continuance of the hearing process if the person was to be out of town; time sche- dule to abate nuisance; penalties and violations, etc. M/S Drago/Penna - To waive reading and introduce the ordinance. Carried by unanimous voice vote. PUBLIC HEARINGS City Clerk Battaya read the title of the ordinance in its entirety. Mayor Haffey related that Council had been concerned two weeks ago by the absence of minutes from the Planning Commission. Councilman Penna stated that at the last meeting he had felt that this ordinance was anti-business, and tonight's staff report made him even more sure this was the case, because no one had showed up at the Public Hearing held by the Commission. He stated that this had all started from the K-Mart site in Westborough, yet what happened there could not happen elsewhere unless the building had 80,000 sq. ft. He felt that this use was regulated by a use permit, and there was no need to adopt further restrictions. Director of Planning Smith stated that the primary thing involved here was that the Planning Commission was concerned 1/24/90 Page 20 AGENDA ACTION TAKEN PUBLIC HEARINGS 13. Public Hearing - Continued. PUBLIC HEARINGS about the larger uses going into the very small neighborhood centers, and the fact that that might throw off the kind of traffic that would be involved. She con- tinued, requiring a use permit if the spaces were going to be enlarged, and that was really the only time it would come into effect. She related the following in response to Council questioning: that the zoning ordinance at the present time makes the rquirement for parking based on just a retail use; it doesn't really hae a defi- nition; once the shopping center is replaced - if it is one retail use replacing another retail use, it doesn't come back to the Planning Commission. Councilman Penna stated that there were certain uses that were controlled without the use permit process, and there are uses that are controlled with the use permit process in the C-1 zoned area. He stated that she could accomplish the same thing she was trying to accomplish here by just outlining the types of businesses that can go without a use permit, and those that need a use permit which he felt was already in the Code. Director of Planning Smith stated that at the present time one retail use can replace another retail use and does not come back in for a modification to the use permit unless there is going to be an addition to the space involved; once the use permit or a shopping center is in place, then it will have to come back again. She stated that the use permit process comes into effect when it is a new shopping center, if it is an addition to a shopping center - that would be the only times it would come into play. M/S Teglia/Drago - To approve Negative 1/24/90 Page 21 AGENDA ACTION TAKEN PUBLIC HEARINGS 13. Public Hearing - Continued. ITEMS FROM COUNCIL 14. Appointments to the Conference Center Board. e Resolution approving and author- izing execution of a development agreement for construction of off-site improvements in con- nection with the expansion of United Parcel Service Distribution Facility. A RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT FOR OFF-SITE PUBLIC IMPROVEMENTS ITEMS FROM COUNCIL PUBLIC HEARINGS Declaration No. 668. Carried by unanimous voice vote. M/S Teglia/Drago - To waive reading. Carried by unanimous voice vote. M/S Teglia/Drago - To introduce the ordinance. Carried by majority voice vote, Councilmember Penna voted no. ITEMS FROM COUNCIL Council, by written unanimous vote, appointed Mr. Mike Smith as the Airline Representative on the Conference Center Board. Mayor Halley stated that Councilmember Teglia had requested a reconsideration of Item No. 4. City Attorney Armento stated that Councilmember Teglia'a adult son works parttime for UPS, and is not her depen- dent. She continued, and he is not con- sidered under conflict of interest statutes, and if she chooses to vote on the item she may. M/S Drago/Teglia - To adopt the Resolution. RESOLUTION NO. 11-90 Carried by majority roll call vote, Councilmembers Penna and Nicolopulos voted no. ITEMS FROM COUNCIL Vice Mayor Drago questioned why sidewalk repair work had not been completed on Arroyo and E1 Camino Real, and related that there had not been work on the site for the past few weeks. 1/24/90 Page 22 AGENDA ACTION TAKEN ITEMS FROM COUNCIL ITEMS FROM COUNCIL GOOD AND WELFARE CLOSED SESSION 15. Closed session for the purpose of discussion of personnel matters, labor relations, property nego- tiations and litigation. RECALL TO ORDER: ITEMS FROM COUNCIL City Manager Armas stated that he would investigate. Councilmember Teglia questioned where the draft letter was with the list of unrein- forced masonry buildings the Council was to review. City Manager Armas stated that he had seen the draft yesterday, and it needed amendments. ITEMS FROM COUNCIL Councilmember Penna stated that he had asked for a status report on the con- sultant that had been fired, and the City Manager had said that it could not be discussed because it was in conflict of the Brown Act. He questioned how this could be true when it had been at a public meeting. City Manager Armas stated that there needs to be an indication of a discussion on the agenda for interested parties to be able to participate. Councilmember Penna questioned if it could be agendized or could it be discussed at the Council retreat. City Manager Armas stated that it was not a subject for the retreat, and because of legal ramifications, staff would have to get back to the Council. GOOD AND WELFARE No one chose to speak. CLOSED SESSION Council adjourned to a Closed Session at 10:50 p.m. to discuss the items listed. Mayor Haffey recalled the meeting to 1/24/90 Page 23 AGENDA ACTION TAKEN order at 11:14 p.m., all Council present, no action taken. M/S Teglia/Penna - To adjourn the meeting. Council announced that they would attend a retreat on 2/2/90 at 3:00 p.m. at the Half Moon Bay Lodge. ADJOURNMENT: RESPECTFULLY SUBMITTED, Time of adjournment was 11:15 p.m. Barbara A. Battaya, RichJrd A.~Haff ~or City of South San Francisco City of South Sa /l~ncisco 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. 1/24/90 Page 24