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HomeMy WebLinkAboutMinutes 1991-11-13 Mayor Jack Drago Council: Richard A. Haffey Gus Nicolopulos . John R. Penna Roberta Cerri Teglia MINUTES City Council Municipal Services Building Community Room November 13, 1991 NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of California, that the City Council of the City of South San Francisco will hold a Special Meeting on Wednesday, the 13th day of November 1991, at 6:30 p.m., in the Municipal Services Building Community Room, 33 Arroyo Drive, South San Francisco, California. Purpose of the meeting: 1. Closed Session for the purpose of the discussion of personnel matters, labor relations, property negotiations and litigation, ~attay~k City of South San Francisco Dated: November 7, 1991 AGENDA CALL TO ORDER: (Cassette No. 1) ROLL CALL: Closed Session for the purpose of the discussion of personnel ~ matters, labor relations, property negotiations and litigation. Councilman Penna Arrived: RECALL TO ORDER: ,' ~DJOURNMENT: ACTION TAKEN 6:30 p.m. Mayor Drago presiding. Council present: Council Absent: Haffey, Nicolopulos, Teglia, and Drago. Penna. Council adjourned to a Closed Session at 6:30 p.m. to discuss property negotiations pursuant to G.C. Section 54956.8, and litigation pursuant to G.C. Section 54956(b)(1). Councilman Penna arrived at 6:55 p.m Mayor Drago recalled the meeting to order at 7:05 p.m., all Council present, no action was taken. M/S Te§lia/Haffey - To adjourn the meeting. Carried by unanimous voice vote. Time of adjournment was 7:05 p.m. 11/13/91 Page i AGENDA ACTION TAKEN --RESPECTFULLY SUBMITTED, ar~bar~ A. Battaya,~ City of South San Francisco A~PP lOVED. ~ _//GAty 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. 11/13/91 Page 2 Chairman Jack Drago Boardmembers: Richard A. Haffey Gus Nicolopulos John R. Penna Roberta Cerri Teglia M I N U T E S ,~,:~i m SOUTH SAN FRANCISCO CAPITAL IMPROVEMENTS FINANCING AUTHORITY Municipal Services Building Community Room November 13, 1991 NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of California, that the South San Francisco Capital Improvements Financing Authority of the City of South San Francisco will hold a Special Meeting on Wednesday, the 13th day of November 1991, at 7:05 p.m., in the Municipal Services Building Community Room, 33 Arroyo Drive, South San Francisco, California. Purpose of the meeting: 1. Approval of the minutes of the Special Meeting of 10/9/91. 2. Resolution approving the issuance of certificates of participation for the financing of water quality control plant improvements. Dated: A RESOLUTION APPROVING, AUTHORIZING AND DIRECTING EXECUTION OF CERTAIN INSTALLMENT SALE FINANCING DOCUMENTS AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS WITH RESPECT THERETO ~(City Cler~ City of South San Francisco November 7, 1991 AGENDA CALL TO ORDER: (Cassette No. 1) ROLL CALL: 1. Approval of the minutes of the ~ Special Meeting Of 10/9/91. ~ ~,~' ~.,~¢' - -RECESS: ACTION TAKEN 7:40 p.m. Chairman Drago presiding. Boardmembers Present: Boardmembers Absent: Haffey, Nicolopulos, Penna, Teglia, and Drago. None. City Manager Armas recommended that the Board act on Item No. I and continue Item No. 2 to the City Council meeting. M/S Teglia/Penna - To approve the minutes of the Special Meeting of 10/9/91. Carried by unanimous voice vote. Chairman Drago recessed the meeting at 7:41 p.m. 11/13/91 Page i AGENDA ACTION TAKEN 'ADMINISTRATIVE BUSINESS 8. Improvements to Water Quality Control Plant: ae Resolution approving issuance of certificates of partici- pation for the financing of water quality control plant improvements. A RESOLUTION APPROVING, AUTHOR- IZING AND DIRECTING EXECUTION OF CERTAIN INSTALLMENT SALE FINANCING DOCUMENTS, APPROVING A PURCHASE AGREEMENT, A REIMBURSEMENT AGREEMENT AND A REMARKETING AGREEMENT, APPROV- ING THE FORM AND AUTHORIZING DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT IN CONNECTION WITH THE OFFERING AND SALE OF CERTIFICATES OF PARTICIPATION, APPOINTING SPECIAL COUNSEL AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS WITH RESPECT THERETO SOUTH SAN FRANCISCO CAPITAL IMPROVEMENTS FINANCING AUTHORITY MEETING RECONVENED: Resolution approving the issuance of certificates of participation while acting as the SOUTH SAN FRANCISCO CAPITAL IMPROVEMENTS FINANCING AUTHORITY A RESOLUTION APPROVING, AUTHOR- IZING AND DIRECTING EXECUTION OF CERTAIN INSTALLMENT SALE FINANCING DOCUMENTS AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS WITH RESPECT THERETO ADMINISTRATIVE BUSINESS Mayor Drago stated that under Agenda Review the City Manager had removed Item 8d. because there had been concern by one of the other bidders and the award of contract was being challenged. He stated that it was being continued to 11/27/91 to go into the details unless there is a requirement by the State, and then there would be a special meeting wherein everyone would be notified and a notice posted. City Manager Armas stated that the Council had before it an award of contract and the City had received some bids and had received some challenges from a number of parties as to the appropriateness of awarding it to the apparent low bidder. He stated that staff would pursue and investigate those challenges and recommended the item be continued to 11/27/91. He stated that the project was predicated on receipt of a State loan. He stated that there may be a need because of the timing of the State loan to act prior to the 11/27/91 meeting -- should that be necessary there would be the usual posting of the agenda and notification to all parties. Chairman Drago reconvened the South San Francisco Capital Improvements Authority meeting at 7:55 p.m., all Boardmembers present, and it was held jointly with the Council. Director of Finance Margolis stated that the recommendation was to adopt resolu- tions to approve execution of documents related to financing for the Water Quality Control Plant improvements, and the certificates of participation would not exceed $11,500,000. She stated that the form of financing being proposed was somewhat unusual because they were pro- posing to use variable rates for the certificates because of specific concerns about the City's ability to make use of funds from the State. She stated that the City in the State loan program had 11/13/91 Page 2 AGENDA ACTION TAKEN --ADMINISTRATIVE BUSINESS 8. Improvements to Water Quality Control Plant - Continued. Motion to approve Negative Declaration for the improve- ments at the Water Quality Control Plant. do Resolutions: authorizing award of construction contract to Kirkwood Bly, Inc.; budget amendment to the Capital Improvement Budget for the Water Quality Control Plant. A RESOLUTION APPROVING BUDGET AMENDMENT CIP-5 TO THE 1991- 1992 CAPITAL IMPROVEMENT BUDGET ADMINISTRATIVE BUSINESS been rated a high priority, and she proceeded to explain the State's favorable rates. She stated that because this was a critical project that needed to proceed before an answer was received from the State, staff looked for a means of financing to allow the City to issue certificates or bonds in order to allow the City to pay those off very quickly if money from the State comes in. She spoke in detail of the charac- teristics of the certificates of par- ticipation and the attractive interest rates which had averaged about 41/2% over the last year, and was now about 4%. She stated that the variable rates did have some risk, some negative aspects and was costly in the number of players involved because it was complicated financing, but the advantages in terms of ability to pay them off was attractive, etc. She stated that the City's financial advisor, Bartle Wells, had done an analy- sis using short term financing on going to the State loan vs. issuing long term debt at this time, and found the savings was nearly $5,000,000 over the life of the financing. She continued, an agreement was being set up between the City's Enterprise Fund and the Authority, which the City pledges that it will make payments to the debt service over the term for the acquisition of the improve- ments. She stated that the document con- tains a pledge that the rates will be set sufficient to provide revenues to more than meet the debt service. She stated that staff had analyzed the rate increases the Council had passed over the past years and they were ade- quate. She stated that it was projected that a rate increase would not be needed until 1996. 11/13/91 Page 3 AGENDA ACTION TAKEN ~ADMINISTRATIVE BUSINESS 8. Improvements to Water Quality Control Plant - Continued. CITY COUNCIL ACTION: SOUTH SAN FRANCISCO CAPITAL IMPROVEMENTS FINANCING AUTHORITY ACTION: ADMINISTRATIVE BUSINESS She related: that the reserve fund would be $1,000,000+ after the certificates were issued; the interest earned during the construction period; that an amend- ment had been prepared to the operating agreement with San Bruno which calls for them to pay 1/3 of the debt service. Councilman Haffey complimented the Finance Director on the excellent staff report. Discussion followed: that the short term rates would fluctuate on a weekly basis; State funding was expected to come in a few months and would be on a reimbur- sement basis; payments to contractors would be made from the certificates, the State would reimburse the City and that portion of the debt service would be retired; that $1,000,000 would not be covered by the State, and that would remain with the certificates; tonight's action was on the issuance of cer- tificates and in the future the City would accept the loan; the loan affected both State and Federal funds and their commitment. M/S Haffey/Teglia - To adopt the Resolution approving issuance of cer- tificates of participation. RESOLUTION NO. 136-91 Carried by unanimous voice vote. M/S Haffey/Teglia - To adopt the Resolution approving the issuance of cer- tificates of participation. RESOLUTION NO. SSF-3-91 Carried by unanimous voice vote. M/S Haffey/Teglia - To adjourn the South San Francisco Capital Improvements Authority meeting. 11/13/91 Page 4 AGENDA ACT I O N TAKEN f~'~,~ ADJOURNMENT: Carried by unanimous voice vote. Time of adjournment was 8:07 P.M. RESPECTFULLY SUBMITTED, Barbara A. Battaya, y Clerk South San Francisco Capital Improvements Financing Authority ~J~k Drago, Cha~ ~/Tin/ S~Utahnc~na~ ~Coir~ Capital Improvements The entries of this Authority meeting show the action taken by the South San Francisco Capital Improvements Financing Authority 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. 11/13/91 Page 5 Mayor Jack Drago Council: Richard A. Haffey Gus Nicolopulos John R. Penna ~Roberta Cerri Teglia AGENDA CALL TO ORDER: (Cassette No. 1) ROLL CALL: PLEDGE OF ALLEGIANCE INVOCATION AGENDA REVIEW City Manager Armas Requested: Remove Item No. 7 from the Agenda. Continue Item 8d to 11/27/91 and should there be a need to act prior to that date all parties would be notified because they had received correspondence challenging the proposed award of contract. ORAL COMMUNICATIONS MINUTES City Council Municipal Services Building Community Room November 13, 1991 ACTION TAKEN 7:41 p.m. Mayor Drago presiding. Council present: Council absent: Haffey, Nicolopulos, Penna, Teglia, and Drago. None. Recited. Rev. Johnson, Our Redeemer's Lutheran Church, gave the invocation. AGENDA REVIEW So ordered. ORAL COMMUNICATIONS Mr. Peter Stender, 624 Marlin Court, related the following on traffic on So. Maple at the corner of Victory: that he owned an industrial building of 20,000'; that it was impossible for traffic to get up on the street at certain times of the day; it was mainly due to the old Emporium warehouse of 200,000'+ sitting on six acres that was cut up a few years ago into a multi-tenant building without adequate parking or adequate landscaping~ because of this it was difficult for him to rent his building; last year he had a vacancy for about six months and he had to use substandard rents for it because people could not get up and down the street. He requested that Council do something to open the street because now that it has 11/13/91 Page I A6ENDA ACTION TAKEN --ORAL COMMUNICATIONS COMMUNITY FORUM CONSENT CALENDAR 1. Motion to approve the Minutes of the Special Meeting of 10/16/91; Regular Meeting of 10/16/91; and Regular Meeting of 10/23/91. of 11/13/91. Resolution approving budget recommendation for the Downtown Commercial Rehabilitation Program. A RESOLUTION APPROVING BUDGET RECOMMENDATION FOR DOWNTOWN COMMERCIAL REHABILITATION PROGRAM me Resolution authorizing a loan of $1.25 million from the self- insurance fund to the Redevelopment Agency. A RESOLUTION OF THE SOUTH SAN FRANCISCO CITY COUNCIL APPROVING A $1.25 MILLION SHORT TERM LOAN FROM THE SELF-INSURANCE FUND TO THE REDEVELOPMENT AGENCY 5. Resolution establishing a general policy on interest to be charged on ORAL COMMUNICATIONS been redeveloped it is being used as a truck terminal, and there are 18 double truck doors right on that street. He stated that his building was at 239 So. Maple, which he had built 18 years ago with adequate parking, and the trucks were using his property to turn around. Mayor Drago instructed the City Manager to investigate the matter with Planning and the Police, and report back to the full Council at the earliest meeting. COMMUNITY FORUM No one chose to speak. CONSENT CALENDAR Approved. Approved in the amount of $2,827,073.20. Removed from the Consent Calendar for discussion by Councilwoman Teglia. RESOLUTION NO. 133-91 11/13/91 Page 2 AGENDA ACTION TAKEN ~CONSENT CALENDAR 5. Resolution - Continued. loans between funds. e e A RESOLUTION OF THE SOUTH SAN FRANCISCO CITY COUNCIL ESTABLISHING A POLICY REGARDING INTEREST RATES ON INTERFUND LOANS Motion to approve the one-year time extension by finding that Negative Declaration No. 663 is still adequate and that the previous conditions of approval are still adequate for 735 Commercial Avenue, Humberto A. Mantegani. Resolution approving selective p~ooO reclassifications in operating departments and a budget amendment. A RESOLUTION AMENDING 1991-92 OPERATING BUDGET BY BUDGET AMENDMENT 92-11 TO REFLECT RECLASSIFICATIONS IN SPECIFIED DEPARTMENTS e Resolution approving budget ~0 recommendation for the Downtown Commercial Rehabilitation Program. A RESOLUTION APPROVING BUDGET RECOMMENDATION FOR DOWNTOWN COMMERCIAL REHABILITATION PROGRAM CONSENT CALENDAR RESOLUTION NO. 134-91 So ordered by majority voice vote, Councilman Penna abstained. Removed from the Agenda by the City Manager, and no action was taken. M/S Teglia/Haffey - To approve the Consent Calendar with the exception of Items No. 3 and 7. Carried by unanimous voice vote with the exception of Item No. 6 wherein Councilman Penna abstained. Councilwoman Teglia stated that she had noted a going out of business sale sign on Rubye's, yet the recommendation was for a sign for this business. Director of Economic & Community Development Costello stated that she did not know, however, this resolution gave staff the ability to finalize this with the owner of the business. Councilman Penna stated that one of the addresses was next to the address he 11/13/91 Page 3 A G E N D A A C T I O N T AK E N~' ~?''',~ 3. Resolution - Continued. ADMINISTRATIVE BUSINESS 8. Improvements to Water Quality Control Plant: ae Resolution approving issuance of certificates of partici- pation for the financing of water quality control plant improvements. A RESOLUTION APPROVING, AUTHOR- IZING AND DIRECTING EXECUTION OF CERTAIN INSTALLMENT SALE FINANCING DOCUMENTS, APPROVING A PURCHASE AGREEMENT, A REIMBURSEMENT AGREEMENT AND A REMARKETING AGREEMENT, APPROV- ING THE FORM AND AUTHORIZING DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT IN CONNECTION WITH THE OFFERING AND SALE OF CERTIFICATES OF PARTICIPATION, APPOINTING SPECIAL COUNSEL AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS WITH RESPECT THERETO SOUTH SAN FRANCISCO CAPITAL IMPROVEMENTS FINANCING AUTHORITY MEETING RECONVENED: Resolution approving the issuance of certificates of participation while acting as the SOUTH SAN FRANCISCO CAPITAL occupies and would abstain on the item. M/S Teglia/Haffey - To adopt the Resolution. RESOLUTION NO. 135-91 Carried by majority voice vote, Councilman Penna abstained. ADMINISTRATIVE BUSINESS Mayor Drago stated that under Agenda Review the City Manager had removed Item 8d. because there had been concern by one of the other bidders and the award of contract was being challenged. He stated that it was being continued to 11/27/91 to go into the details unless there is a requirement by the State, and then there would be a special meeting wherein everyone would be notified and a notice posted. City Manager Armas stated that the Council had before it an award of contract and the City had received some bids and had received some challenges from a number of parties as to the appropriateness of awarding it to the apparent low bidder. He stated that staff would pursue and investigate those challenges and recommended the item be continued to 11/27/91. He stated that the project was predicated on receipt of a State loan. He stated that there may be a need because of the timing of the State loan to act prior to the 11/27/91 meeting -- should that be necessary there would be the usual posting of the agenda and notification to all parties. Chairman Drago reconvened the South San Francisco Capital Improvements Authority meeting at 7:55 p.m., all Boardmembers present. Director of Finance Margolis stated that the recommendation was to adopt resolu- tions to approve execution of documents related to financing for the Water 11/13/91 Page 4 AGENDA ACTION TAKEN ADMINISTRATIVE BUSINESS 8. Improvements to Water Quality Control Plant - Continued. b. Continued. IMPROVEMENTS FINANCING AUTHORITY Ce A RESOLUTION APPROVING, AUTHOR- IZING AND DIRECTING EXECUTION OF CERTAIN INSTALLMENT SALE FINANCING DOCUMENTS AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS WITH RESPECT THERETO Motion to approve Negative Declaration for the improve- ments at the Water Quality Control Plant. de Resolutions: authorizing award.~t of construction contract to Kirkwood Bly, Inc.; budget amendment to the Capital Improvement Budget for the Water Quality Control Plant. A RESOLUTION APPROVING BUDGET AMENDMENT CIP-5 TO THE 1991- 1992 CAPITAL IMPROVEMENT BUDGET ADMINISTRATIVE BUSINESS Quality Control Plant improvements, and the certificates of participation would not exceed $11,500,000. She stated that the form of financing being proposed was somewhat unusual because they were pro- posing to use variable rates for the certificates because of specific concerns about the City's ability to make use of funds from the State. She stated that the City in the State loan program had been rated a high priority, and she proceeded to explain the State's favorable rates. She stated that because this was a critical project that needed to proceed before an answer was received from the State, staff looked for a means of financing to allow the City to issue certificates or bonds in order to allow the City to pay those off very quickly if money from the State comes in. She spoke in detail of the charac- teristics of the certificates of par- ticipation and the attractive interest rates which had averaged about 41/2% over the last year, and was now about 4%. She stated that the variable rates did have some risk, some negative aspects and was costly in the number of players involved because it was complicated financing, but the advantages in terms of ability to pay them off was attractive, etc. She stated that the City's financial advisor, Bartle Wells, had done an analy- sis using short term financing on going to the State loan vs. issuing long term debt at this time, and found the savings was nearly $5,000,000 over the life of the financing. She continued, an agreement was being set up between the City's Enterprise Fund and the Authority, which the City pledges that it will make payments to the debt service over the term for the acquisition of the improve- ments. She stated that the document con- tains a pledge that the rates will be set 11/13/91 Page 5 AGENDA ADMINISTRATIVE BUSINESS 8. Improvements to Water Quality Control Plant - Continued. CITY COUNCIL ACTION: --SOUTH SAN FRANCISCO CAPITAL IMPROVEMENTS FINANCING AUTHORITY ACTION: ACTION TAKEN ADMINISTRATIVE BUSINESS sufficient to provide revenues to more than meet the debt service. She stated that staff had analyzed the rate increases the Council had passed over the past years and they were ade- quate. She stated that it was projected that a rate increase would not be needed until 1996. She related: that the reserve fund would be $1,000,000+ after the certificates were issued; the interest earned during the construction period; that an amend- ment had been prepared to the operating agreement with San Bruno which calls for them to pay 1/3 of the debt service. Councilman Haffey complimented the Finance Director on the excellent staff report. Discussion followed: that the short term rates would fluctuate on a weekly basis; State funding was expected to come in a few months and would be on a reimbur- sement basis; pa~qnents to contractors would be made from the certificates, the State would reimburse the City and that portion of the debt service would be retired; that $1,000,000 would not be covered by the State, and that would remain with the certificates; tonight's action was on the issuance of cer- tificates and in the future the City would accept the loan; the loan affected both State and Federal funds and their commitment. M/S Haffey/Teglia - To adopt the Resolution approving issuance of cer- tificates of participation. RESOLUTION NO. 136-91 Carried by unanimous voice vote. M/S Haffey/Teglia - To adopt the Resolution approving the issuance of cer- 11/13/91 Page 6 AGENDA ACTION TAKEN --ADMINISTRATIVE BUSINESS 8. Improvements to Water Quality Control Plant - Continued. ADJOURNMENT: ADMINISTRATIVE BUSINESS tificates of participation. RESOLUTION NO. SSF-3-91 Carried by unanimous voice vote. M/S Haffey/Teglia - To adjourn the South San Francisco Capital Improvements Authority meeting. Carried by unanimous voice vote. Time of adjournment was 8:07 P.M. City Engineer Van Dohren stated that staff had looked at the environmental requirements when beginning the design for improvements, and because there was no growth at the treatment plant in terms of capacity, all of the work would be done on site; and in view of the fact it was a public facility had made the deter- mination that a notice of exemption could be filed for the environmental require- ments. He stated that in order to get a State loan, which includes Federal money, the Federal Government does not recognize a notice of exemption for environmental purposes so the City was required to pre- pare a negative declaration for the pro- ject and submit it to the State for a loan. He continued, along with the requirement for submitting the declara- tion there had to be Council action on the negative declaration. Councilman Haffey questioned why the environmental check list had the creation of objectionable odors - which are in existence with prevailing winds, and if the improvements would make it worse. City Engineer Van Dohren stated that the odors that would occur with the improve- ments would be diesel fumes, but the odors would be improved when the project was finished. M/S Haffey/Teglia - To approve the 11/13/91 Page 7 AGENDA ACTION TAKEN -ADMINISTRATIVE BUSINESS 8. Improvements to Water Quality Control Plant - Continued. PUBLIC HEARINGS 9. Public Hearing - Appeal of Planning Commission approval of Tentative Parcel Map and Use Permit to allow expansion of the cultural center site to provide for additional parking and landscaping at 599 Railroad Ave., UP-91-901, Basque Cultural Center; Conduct Public Hearing; Motion to deny the appeal and uphold the Planning Commission decision. ADMINISTRATIVE BUSINESS Negative Declaration. Carried by unanimous voice vote. Mayor Drago stated that he had a speaker card for Item 8d. Mr. Nugteren, Dillingham Construction, stated that since the item had been con- tinued he would defer comments until the item was considered. PUBLIC HEARINGS Mayor Drago opened the Public Hearing. Chief Planner Solomon stated that this hearing involved the use permit and par- cel map that would allow the Basque Cultural Center to convert a 50' x 200' former railroad right-of-way to parking landscaping which would add 37 parking spaces to the property. He stated that the center is currently operating under an existing use permit that allows the cultural center and restaurant to operate. He related that the Appellant had spoken at the Commission hearing, saying that because of traffic and parking conditions the permit should be denied. He stated that at the hearing the Commission had pointed out that the use of the site as parking for the neigh- borhood was not appropriate in that it was private property. He stated that the police officer present at the meeting had said that to his knowledge there were not significant traffic problems in that area. He stated that the Appellant had based the appeal on the traffic, parking, and had additionally cited the proximity of parking to occupied housing, noise, and the design of the occupation of the railroad right-of-way. 11/13/91 Page 8 AGENDA ACTION TAKEN ~PUBLIC HEARINGS 9. Public Hearing .- Continued. PUBLIC HEARINGS He stated that the Commission approved the Negative Declaration and Tentative Parcel Map, and had found the tentative map was consistent with the Zoning Ordinance and the use permit. He stated that a letter had been received today from Quintco Properties in support of the parcel map. Mr. George Bernal, 550 Railroad, stated that there were traffic problems and pro- ceeded to pass out a petition signed by all the neighbors across from the Center, and a police report in support of his appeal. He stated that the Center was opened until 1:00 or 2:00 a.m. and there were often fights, as had happened Friday night, and the police came out. He noted that the Center was exempt from security guards when they had weddings with 400-500 people in attendance. He stated that in June or July there had been a gang fight that had then gone on to Linden Ave., and the police had responded. He requested a 20' setback from the street because the Center was across the street from homes, and when cars started up at 1:00 and 2:00 a.m. they tended to awaken the residents. He stated that the patrons also take up every space on the street, and people come out drunk and sometimes fight. He stated that he had unsuccessfully tried to reach the Fire Marshall and the City Engineer to try to find out who had given the owner of the Center use of the lot, and he had talked to the owner who recognized that he had a problem. He suggested opening up Magnolia and go out Canal Street, which he believed would take care of the traffic problem - espe- cially since the Guy F. Atkinson property was for sale. 11/13/91 Page 9 AGENDA ACTION TAKEN --PUBLIC HEARINGS 9. Public Hearing - Continued. PUBLIC HEARINGS He stated that there was a company in the neighborhood with underground gas storage tanks which they try to disguise, and their trucks were always sounding their air horns and the noise disrupted the neighborhood. Mr. Jack S. Gray, 554 Railroad Ave., stated that people came out of the restaurant late at night and peel rubber, and some pull in front of Glicks Chemicals and throw their empty beer bottles or have sex acts behind the trucks. He stated that when the Center first opened, people would park on the street in front of fire hydrants, and when he called the police he was told that was not against the law - yet if a neighbor did it they would be ticketed. He spoke of accidents occurring when residents tried to get out of their driveways without being able to see on-coming traf- fic. He stated that he disagreed with a bar being allowed in a residential neigh- borhood, and noted that he could some- times hear a band playing outside. Mr. Jean Gorostiague, Basque Cultural Center, stated that this was the first time he had heard these allegations, and since they had begun negotiations for the railroad right-of-way, that was the time everyone woke up -- until then no one had complained. He urged the Council to deny the appeal. Mayor Drago stated that this would give the Center additional parking within a fenced area, and questioned what type of trees would be used to act as a sound barrier. He also questioned if a band was allowed to play outside, and if there had been discussions with the police on problems. Mr. Gorostiague responded: that many trees would be used in the landscaping; 11/13/91 Page 10 ACTION TAKEN A6ENDA --PUBLIC HEARINGS ~ 9. Public Hearing - Continued. PUBLIC HEARINGS that bands only played inside the Center; there were no discussions with the police; there were a few minor incidents; that most of the time there were only 100-150 people in the Center; once a year there was a banquet of their own people that had once included 400 people; weddings could involve 250 people; that they lease the railroad property now, but could not use it because the neighbors were parking there and the customers had to park outside. Mayor Drago stated that the problems appeared to be enforcement problems for the police, and the noise could be handled with the noise ordinance, however, he was bothered with parking in front of a fire hydrant because it was against the law. Councilman Haffey stated that he had always felt that the Basque Cultural Center was an asset to the City of S.S.F. by adding diversity, and was an example of the kinds of things the Council wanted in this City. He stated that this par- ticular improvement that was being appealed was something that would actually enhance the cultural center and protect the neighborhood. Ms. Lorraine M. Etchwerny, Basque Cultural Center, stated that banquet capacity at the center was approximately 300, so the allegation of 400-500 people was impossible. She stated that when she came to the Center on a Sunday there were all kinds of cars in the neighborhood all jacked up, changing their oil, doing what- ever they wanted to do, and they leave all their oil cans and rags outside. She stated that the Cultural Center's intention is to improve their parking, and have the area look a lot nicer through landscaping. She stated that presently they hardly get a chance to use the area even though they are paying the 11/13/91 Page 11 AGENDA ACTION TAKEN -PUBLIC HEARINGS 9. Public Hearing - Continued. PUBLIC HEARINGS lease, and the positive point was that they were trying to improve the area. Chief Planner Solomon stated that there were no trees on the front of the lot for visibility purposes, but there were con- ditions in the permit to add trees in landscaping the parking area. He stated that the existing use permit conditions for hours of operation were 7:00 a.m. to 12:00 p.m. except on banquet nights, where they may run to 1:30 a.m. He stated that this project was categori- cally exempt and there was not a need for a finding regarding CEQA. Councilwoman Teglia questioned what a banquet meant. Chief Planner Solomon stated that when this operation was approved as a cultural center it did not have a restaurant involved, so when they had a meal it was considered a banquet night. Senior Planner Morton stated that in 1982 the City modified the use permit to allow the restaurant, and at that time the hours of operation were more clearly defined so that Monday through Thursday the hours would be 7:00 a.m. to midnight, and Friday and Saturday would be 7:00 a.m. to 1:30 a.m. Mayor Drago closed the Public Hearing, and requested comments from the Police Chief. Police Chief Datzman stated that they had looked at the project and it appeared that the issue was the Basque Cultural Center requesting an expansion of its parking lot which would assist in removing some 37 vehicles from the street. He stated that he thought this would assist in removing the problems. He stated that in a two year period there had been one complaint a month, and he 11/13/91 Page 12 AGENDA ACTION TAKEN PUBLIC HEARINGS 9. Public Hearing - Continued. 10. Public Hearing - UP-91-893, and ~0~ Negative Declaration No. 718 to establish a quick lube and minor automobile service business with related parking and landscaping - James A. Siegler; Conduct Public Hearing; Motion to adopt Negative Declaration No. 718; Motion to approve the design review and UP-91-893. PUBLIC HEARINGS was talking about auto burglary and vehicle abatement, and only three distur- bances involving the Center. He stated that there had been nine accidents in that general area in 28 months; and in terms of traffic and motor vehicles, there were little or no calls. He stated that in terms of traffic, there was a considerable number of cars in the area. Councilwoman Teglia stated that this was an old neighborhood and the planning had not been as good as it would be if planned today. She suggested having dialogue with the residents, and if people are coming out of the Center drunk, then the residents should call the police to control the area. Mr. Bernal stated that he would like to see the hours of operation cut back to 10:00 p.m. so the residents could get their sleep. M/S Haffey/Teglia - To deny the appeal and uphold the Planning Commission deci- sion. Carried by unanimous roll call vote. Mayor Drago opened the Public Hearing. Chief Planner Solomon stated that the Council had directed that anything in the E1Camino Real corridor come before Council to determine if the land use was compatible which the staff felt the use did. Mr. Jim Siegler stated that he had been working on the project for over a year first with the zoning amendment and now with the use permit, and spoke in detail of changes made to meet the requirements of the City. Mr. Dave Ayers, Architect, described the materials being used for the building in detail. 11/13/91 Page 13 AGENDA ACTION TAKEN PUBLIC HEARINGS 10. Public Hearing - Continued. 11. Public Hearing - Comprehensive ~o~q Housing Affordability Strategy (CHAS) for the purpose of the Community Development Block Grant Program (CDBG); Conduct Public Hearing; adopt resolution. A RESOLUTION AUTHORIZING SUBMISSION OF THE COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY TO THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT PUBLIC HEARINGS Mayor Drago closed the Public Hearing. M/S Haffey/Teglia - To adopt Negative Declaration No. 718. Carried by unanimous voice vote. M/S Haffey/Teglia - To approve the design review and UP-91-893. Carried by unanimous roll call vote. Mayor Drago opened the Public Hearing. Director of Economic & Community Development Costello stated that this was the second of two public hearings as required by the Federal Government for funding, and proceeded to describe the one year strategy and the budget. Ms. Jerry Friedenback spoke in detail on the homelessness in San Mateo County and the need to address low income housing because of the lack of affordable housing for these people. She spoke of a study made by Stanford on the homeless in this County, and felt that the figures were understated. She suggested the following: establish rehabilitation programs; the homeless should be included in the program as a priority; look deeper into resources to address housing; use redevelopment set aside, in-lieu fees, density bonuses, and solicit non-profit developers, etc. Mayor Drago stated that he felt the figures were questionable on the home- less. City Manager Armas stated that his understanding was that the survey included multiple events of homelessness, and because the information came from the service provenders - Stanford is under- taking a better study which will be available in a month. 11/13/91 Page 14 AGENDA ACTION TAKEN PUBLIC HEARINGS 11. Public Hearing - Continued. PUBLIC HEARINGS Ms. Friedenback stated that even if the homeless people went in and out of the service agencies they would not be counted twice because they had made cer- tain their documentation was correct. She stated that the shelters were turning away people on the average of one to four. She stated that even the Census Bureau's figures were inaccurate, and the same problems existed in trying to get an accurate count on the homeless. Discussion followed: single mothers working and having difficulty with sit- ters and paying for a home; homeless families, and veterans; homeless people with drug and alcohol problems, and the long wait to get into the drug and alco- hol programs in this County; that second units in residential zones for affordable housing create problems; that supplying housing was more important than worrying about crowded parking; that the homeless problem was growing due to the population rise and salaries insufficient to cover rents, as well as insufficient facili- ties, etc. Mayor Drago closed the Public Hearing. Director of Economic & Community Development Costello stated that the five year plan was supportive of homeless per- sons, and it included funding for the shelter networks and shared housing pro- ject. She stated that the second priority was new construction of rental units beneficial to low income families. Councilman Penna stated that a family with income of $36,000 a year was con- sidered to be low income, and there were many people in this area that qualify for assistance in housing. He stated that it was important for the City to address the housing problem by attempting to create housing in the City in the next few 11/13/91 Page 15 AGENDA ACTION TAKEN PUBLIC HEARINGS 11. Public Hearing - Continued. ITEMS FROM COUNCIL PUBLIC HEARINGS years. He stated that he was looking at some options and hoped to report to Council soon on alternatives. City Manager Armas stated that staff was talking to Bridge Housing to retain them to look at housing in this City, because staff did not have that type of expertise to address creating low income housing. He stated that redevelopment money could be used once it was opened up. He stated that Councilman Penna's idea of looking at opportunities in transit cori- dors with a different density would be investigated. Discussion followed: that the Council was in favor of affordable housing; that families were living in automobiles, etc. Mayor Drago closed the Public Hearing. M/S Haffey/Teglia - To adopt the Resolution. RESOLUTION NO. 137-91 Carried by unanimous voice vote. ITEMS FROM COUNCIL Councilwoman Teglia spoke of a Subcommittee meeting wherein she and Councilman Penna met with Willow Gardens residents on assessment issues, and learned they might consider a higher assessment for a ten year period in order to do the work up front. Councilman Penna stated that the Subcommittee had not heard from Willow Gardens tenants, only the property owners, and he felt a staff member should be appointed to help change neigh- borhood attitudes. Mayor Drago announced that Councilman Penna would take his place on the Conference Center Subcommittee. 11/13/91 Page 16 AGENDA .... 'GOOD AND WELFARE CLOSED SESSION 12. Closed session for the purpose of discussion of personnel matters, labor relations, property nego- tiations and litigation. RECALL TO ORDER: ACTION TAKEN GOOD AND WELFARE Mr. Jake Jones questioned if a Councilperson had the use of the City Attorney for their personal affairs. Mayor Drago stated that they did not. Mr. Jones questioned why there were so many Consent Calendar items, and par- ticularly Item 4 which says you are going to transfer 1.5 million dollars from the insurance fund. City Manager Armas stated that what it said was that it was being transferred from the self-insurance fund as a loan, while if it was a transfer it would not have to be paid back. He stated that the action was to approve the loan plus charge the Redevelopment Agency the same interest rate to keep both parties whole. He stated that the fund would be restored by June from the Redevelopment Agency. Mr. Jones stated that because it was on the-Consent Calendar, people did not know where the money is going. Councilman Haffey noted that the Agenda was posted and a complete packet was in the libraries. Mr. Jones asked that an article on the Visalia Conference Center's $17,000,000 building be made a part of the minutes for future reference (a copy is attached and a permanent part of the record of this meeting). CLOSED SESSION Council adjourned to a Closed Session at 9:45 p.m. to discuss the items noticed. Mayor Drago recalled the meeting to order at 10:00 p.m., all Council present, no action was taken. 11/13/91 Page 17 CounCil lashes' -tJti{ on hotel 'cost VISALIA, Calif. (AP) --. cused Duckworth of "an abuse said. of office and fiduciary responsi- "I take responsibility for not bility." knowing, but we weren't told Councilwoman Mary Louise everything," Vivier said. '%Ve Vivier contended 'that the city did ask the queStions. What we manager "apparently wanted to discovered is that we got lied build a monument to himself." to" Duckworth was not at the Members of Visalia City Council spewed criticism on ex-City Manager Don Duck-worth and themselves after learning that a city-owned hotel is worth less than one-fourth what it cost to build. An audit on the cost of con- meeting but said later that the structing the controversial council "clearly understood" the downtown Radisson Hotel says project's expenses. it took to $I7.9 million to build "Those expenses were in- but would bring only $4.2 mil- curred by William Courtney," lion if sold for cash today. . Duckworth smd. "It was his The city eventually took over project. It was his decision, and the hotel because of financial the council was fully aware of problems faced by developer them." William Courtney. Gomments by council mem- Vivier and Councilman Basil Perch said the council must bers at Monday night's meeting were highly critical of Duck- share the blame. worth. "I blame Duckworth, and I Councilman Peter Carey ac- blame the whole council," Perch -'7 11/13/91 Page 17a AGENDA ACTION TAKEN Motion to adjourn the meeting to Wednesday, 11/20/91, 6:00 p.m., City Council Conference Room, City Hall, 400 Grand Ave. for the purpose of a Closed Session pursuant to Government Code. ADJOURNMENT: RESPECTFULLY SUBMITTED, ~ttaya~ City of South San Francisco M/S Haffey/Penna - To adjourn the meeting to 11/20/91, 6:00 p.m., City Council Conference Room, City Hall, 400 Grand Ave. for the purpose of a Closed Session pursuant to Government Code. Carried by unanimous voice vote. Time of adjournment was 10:00 p.m. APPROV~ ~yk~y/~outh San Francisc/BFragy6' Mayor ~o 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. 11/13/91 Page 18