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HomeMy WebLinkAboutMinutes 1992-03-25 Mayor John R. Penna Council: Jack Drago Joseph A. Fernekes Gus Nicolopulos --Roberta Cerri Teglia AGENDA CALL TO ORDER: (Cassette No. 1) ROLL CALL: PLEDGE OF ALLEGIANCE AGENDA REVIEW 'ORAL COMMUNICATIONS MINUTES City Council - Municipal Services Building Community Room March 25, 1992 365 ACTION TAKEN 7:30 p.m. Mayor Penna presiding. Council present: Council absent: Drago, Fernekes, Teglia, and Penna. Nicolopulos. City Clerk Battaya stated that the Office had been notified that Councilman Nicolopulos was ill, and unable to attend tonight's meeting. Colors were presented by Boy Scout Troop #281, and the Pledge was recited. AGENDA REVIEW City Manager Armas stated that there were no changes to the Agenda. ORAL COMMUNICATIONS Mrs. Diane Smith, 3900 Crofton Way, related that she had just returned from Sacramento where she had spoken on behalf of Senator Kopp's amendment of the Brown Act. She stated that she wanted to repeat the comments she made after listening to many legislators who defended the Brown Act as it is because they thought it would infringe on their periodical retreats, and they thought they would be unable to have them or would have to take the entire city along with them. "What I have heard here today leaves me with the impression that what is good for the people is not good for our elected representatives, nevertheless I am here to speak in support of SB1538. Had it been in place with Senator Kopp's amend- ment S.S.F. would not face the expense of a referendum vote on June 2nd. Like most cities we are in a budget 3/25/92 Page i AGENDA ACTION TAKEN 366 i" ORAL COMMUNICATIONS ORAL COMMUNICATIONS deficit - these funds could be put to better use, but recent events involving the appointment of a fire chief in S.S.F. have made it necessary. The City Manager played one Councilmember off against the other in a one on one polling embarked upon by him after he had persuasively inquired or suggested to the Council that they did not want another meeting at that time - that time was Christmas week, and the Council believed they were being given the option of a holiday postponement - that's my understanding. They did not feel they were foreclosing on an opportunity for discussion as a body before the job offer was made. They asked for resume material to review, and two Councilmembers upon reading the material immediately objected in writing. One Councilmember was already committed to the City Manager's choice, this left two Councilmembers - one, just two months in office, had serious reservations on the appointment, and voiced them in a one on one conversation with the City Manager and was told the 4/5 to oppose was not there, leaving the Councilmember to acquiesce with reluctance. The City Manager consulted with the Mayor in the same fashion implying that there was not sufficient opposition to stop the appointment when the Mayor expressed the problems he had with the appointment. Had there been a meeting with all present and each of the two members who were mislead in the one on one contact, and they had had a correct reading of the four individuals strong opposition, then the process would not have been possible. The Brown Act with the added muscle offered in SB1538 would have enabled S.S.F. to have the responsible voice in government that was intended originally." She asked Councilman Drago what the dif- ference was in an Assistant Fire Chief and a Battalion Chief, and if an 3/25/92 Page 2 A G E N D A AC_!I__ON- T_AK_E _. 367 )RAL COMMUNICATIONS COMMUNITY FORUM CONSENT CALENDAR Motion to approve Minutes of the Adjourned Regular Meeting of 2/19/92; and the Regular Meeting of 2/26/92. 2. Motion to confirm expense claims of 3/25/92. o Resolution authorizing agreement with the County of San Mateo to reimburse funds expended for the rehabilitation of streets utilized by transit vehicles. A RESOLUTION AUTHORIZING EXECUTION OF AGREEMENT FOR REHABILITATION OF STREETS UTILIZED BY TRANSIT VEHICLES - PHASE III e Motion to accept the Emergency Generator Pump Station No. 5 as complete in accordance with the plans and specifications. Bm Motion to accept the Public Facilities Maintenance Project as complete in accordance with the plans and specifications. ~-o~ ORAL COMMUNICATIONS Assistant was demoted to a Battalion Chief was that much of a drop in authority or responsibility. Councilman Drago stated that under the Fire Chief - in most departments that was true, the next rank is Assistant Chief and Battalion Chiefs are usually the fire fighting crew and are in charge of pla- toons where the Assistant is in charge of divisions in larger cities. COMMUNITY FORUM No one chose to speak. CONSENT CALENDAR Approved. Approved in the amount of $1,701,459.01. RESOLUTION NO. 23-92 Approved. Removed from the Consent Calendar for discussion by Vice Mayor Teglia. 3/25/92 Page 3 AGENDA ACTION TAKEN CONSENT CALENDAR e Resolution amending the budget to provide $28,500 for improvements in the Stonegate Ridge Parks and Parkways Maintenance District. SJ~i A RESOLUTION APPROVING BUDGET AMENDMENT 92-7 TO THE 1991-1992 CAPITAL IMPROVEMENT BUDGET Proposed scavenger rate increase resulting from higher disposal fees; Motion to accept report and schedule Public Hearing for 4/8/92. Bo Motion to accept the Public Facilities Maintenance Project as complete in accordance with the plans and specifications. ADMINISTRATIVE BUSINESS e Resolution amending the operating budget to authorize transfer of $453,290 from the General Fund to the Capital Improvement Fund. A RESOLUTION APPROVING BUDGET AMENDMENT 92-15 TO THE 1991-1992 OPERATING BUDGET 368 CONSENT CALENDAR RESOLUTION NO. 24-92 Report accepted and Public Hearing set for 4/8/92. M/S Teglia/Fernekes - To approve the Consent Calendar with the exception of Item No. 5. Carried by unanimous voice vote. Vice Mayor Teglia questioned if there would be a meeting of the Subcommittee in reference to the fire house. Director of Public Works Parini stated yes, there would be. M/S Teglia/Fernekes - To accept the Public Facilities Maintenance Project as complete in accordance with the plans and specifications. Carried by unanimous voice vote. ADMINISTRATIVE BUSINESS Director of Finance Margolis explained the need for the transfer of funds: it resulted from a transaction that related to a staff act wherein the revenue was not credited to the related expense account and the source of the transac- tion; revenue was received from the Price Club as base rent and percentage rent based on the sales; percentage is applied under the terms of the agreement towards the outstanding promissory notes with the Price Club; the expense for the notes comes from the Capital Improvement Fund; 3/25/92 Page 4 AGENDA ACTION TAKEN ~ADMINISTRATIVE BUSINESS 8. Resolution - Continued. ADMINISTRATIVE BUSINESS Resolution execution of agreement with Hilton, Farnkopf and Hobson to perform a review of the general rate increase submitted by the S.S.F. 369 ADMINISTRATIVE BUSINESS in 1990-91 the funds were mistakenly coded to the General Fund which left a balance in the Capital Improvement Fund which necessitates the transfer of funds. Councilman Drago questioned who was responsible for the error. Director of Finance Margolis stated that one of the accountants made the coding error for at the time it was a closing entry for the year, and we were looking at a change in procedure to deposit it directly to capital improvements, however, this had not been communicated to the proper person. She stated that she took full responsibility for the error. Discussion followed: whether safeguards had been provided; the procedure for this transaction had been reviewed with the staff; that in the next budget this would appear in the Capital Improvement Budget with cash going in and out to pro- vide a follow through; that payments were for the site improvements on the lot and the acquisition of the Pyramid property and capital improvements; ten years to pay off both notes, and the site improvements would be paid off in four years; the base amount of rent did go to the General Fund, and is shown as rental; that the percentage rent goes to the Capital Improvement Fund, etc. M/S Drago/Fernekes - To adopt the Resolution. RESOLUTION NO. 25-92 Carried by unanimous vOice vote. ADMINISTRATIVE BUSINESS Director of Finance Margolis stated that this agreement would provide for a finan- cial review of the Scavenger Company and their rate request as provided under the 3/25/92 Page 5 AGENDA ACTION TAKEN ~ADMINISTRATIVE BUSINESS 9. Resolution - Continued. Scavenger Co. and appropriating $29,800. A RESOLUTION APPROVING BUDGET AMENDMENT 92-16 TO THE 1991-1992 OPERATING BUDGET AND AUTHORIZING EXECUTION OF AGREEMENT ~ETWEEN 'HILTON, FARNKOFF AND HOBSON AND THE CITY FOR THE SOUTH SAN FRANCISCO SCAVENGER COMPANY 370 ADMINISTRATIVE BUSINESS terms of the franchise. She continued, it says there will be an increase every two years based on the results of such a financial review. She stated that she had a proposal from Hilton, Farnkopf and Hobson who are premiere rate analyzers in the area of scavenger company type organizations. She stated that this work involves looking at the current cost of the operation and the request for the new year; the projections of their cost and determining the reasonableness of this audit of the records; and determining what their cost increase was expected to be. She stated that this firm was selected because of their experience, and we are in a situation where we are doing this for the first time and felt it was important to get a very experienced firm that understands the operations of this kind of company rather than a more general financial audit. She stated that she was also requesting an appropriation for the cost of the study, however, under the agreement the Scavenger Company will reimburse this cost. Councilman Fernekes stated that this was a two year audit and requested a copy of the scope of work planned to be done. Vice Mayor Teglia questioned if there had been a performance audit. She stated that they had a new franchise with them, no performance audit had been done, and they were not ready at that time, and now we are getting into rate increases. She questioned at what point the Council would discuss performance audits. City Manager Armas stated that it had not been done. He stated that the agreement had been signed in the summer of 1990, and the first year of the ten year period was November of last year. He stated that the first order of business was to do the audit because if you will recall we did establish a whole new structure of terms when we initiated that 3/25/92 Page 6 AGENDA ACTION TAKEN ADMINISTRATIVE BUSINESS 9. Resolution - Continued. 371 ADMINISTRATIVE BUSINESS audit and it was up to the Council's discretion. He stated that the agreement calls for joint approval of whatever firm is retained to perform that audit. He stated that the priority was that it be on a financial basis. Vice Mayor Teglia expressed concern on how to get a handle on the true cost of providing service, and felt that a performance audit would give the Council necessary information to have some sort of standard before acting on increases. City Manager Armas stated that the finan- cial audit would determine if the extent of the allocation of cost was appropriate between the three agencies, between the administration and overhead, as well as maintenance and capital. He recalled that the franchise agreement also has a standard of reasonableness that relates to what is typical in the industry. He stated that there was some relationship to performance, although not to the extent suggested by the question, but to make sure that in assigning cost that they relate to the function per- formed. He stated that you do not arbitrarily determine a percentage of capital maintenance to our City that is different than Brisbane or Millbrae. He stated that performance audits are much more extensive and are going to look at how they conduct their business, and if the Council was interested in that it should direct us to move in that direc- tion in future to initiate a process to invite firms to participate, and furnish the Scavenger Co. an opportunity to look at those proposals and comment or object. Discussion followed: that the formula was quite complicated with a lot of fac- tors; that revenues were compared to expenditures, and there was a provision that allows 10%; important that the costs were allocated properly to this jurisdic- 3/25/92 Page 7 AGENDA ACTION TAKEN --ADMINISTRATIVE BUSINESS 9. Resolution - Continued. 10. Resolution amending Joint Powers Agreement for C/CAG. A RESOLUTION AUTHORIZING AMENDMENT NO. 2 TO THE JOINT POWERS AGREEMENT ESTABLISHING THE CITY/COUNTY ASSOCIATION OF GOVERNMENTS 372 ADMINISTRATIVE BUSINESS tion; the Council was bound by the pro- cess outlined in the agreement wherein a 10% return is authorized to the Company; the audit would evaluate the reasonable- ness; that staff would present the application, the individual analysis as to legitimate expenses and revenues, then there would be mathematical calculations of the formula; the use of the audit to the Company after paying $30,000; to prove that the basis of the rate is sound, valid and consistent with the agreement; there was a provision that indicates that if the projections deve- loped by the franchisee are greater than 2% they have to absorb that expense, and it can not be passed on to the consumer; that this was a check and balance system, etc. M/S Fernekes/Teglia - To adopt the Resolution. RESOLUTION NO. 26-92 Carried by unanimous voice vote. City Manager Armas stated that months ago this City joined other cities and the county in creating a new entity known as the City County Assn. of Governments, and the purpose of that body was to develop a more cooperative and more cohesive way to deal with certain State mandated plans. He stated that the Council was represented on that body by Mayor Penna, and over time the structures creating that body had to be revised to handle new cir- cumstances. He continued, the Council was being asked to consider three amend- ments to the JPA: 1) adding three addi- tional non-voting members to the Board of Directors of the organization, and those additional members would consist of representatives from the Transportation Authority, Airport, and Samtrans; 2) revise the time period between submittal of an action for the Board's con- sideration and final action; and 3) would cause the C/CAG to be designated manager 3/25/92 Page 8 AGENDA ACTION TAKEN 3'73 ADMINISTRATIVE BUSINESS 10. Resolution - Continued. ITEMS FROM COUNCIL 11. Oral Committee reports. GOOD AND WELFARE ADMINISTRATIVE BUSINESS under State legislation to deal with the administration's new revenue that would be available through the Air Quality District. He stated that the Board of Directors considered this matter at its meeting of 2/20/92 and approved the three suggested changes by unanimous vote. He stated that the process now is for each of the cities, as well as the County to consider and act on them. M/S Teglia/Fernekes - To adopt the Resolution. RESOLUTION NO. 27-92 Councilman Drago stated that he wanted a guaranty that these members would con- tinue to be non-voting members. Vice Mayor Teglia stated that to do that would require another amendment. Carried by unanimous voice vote. ITEMS FROM COUNCIL The Council chose not to give reports. GOOD AND WELFARE Mrs. Diane Smith, 3900 Crofton Way, stated that in January Councilwoman Teglia used this medium to appeal to the larger TV audience to announce the referendum against the ordinance to limit the power of the City Manager, and stated that she would like to have equal time for the opposing view. She related the following: although Council voted four to one to pass the ordinance, Mrs. Teglia did not feel a clear majority was enough and a referendum followed; on June 2nd S.S.F. voters will have the opportunity to return the responsibility for good government to those we hold responsible; this is an opportunity that the voters 3/25/92 Page 9 AGENDA ACTION TAKEN 3'~'4 '--'~OOD AND WELFARE CLOSED SESSION 12. Closed Session for the purpose of discussion of personnel matters, labor relations, property nego- tiations and litiation. RECALL TO ORDER: ADJOURNMENT GOOD AND WELFARE did not get in 1987 when Council voted to give the unlimited powers to one man, our City Manager; Councilmembers Drago and Fernekes drafted a resolution to accom- pany the ordinance which gives assurances to the City Manager that he will still work without encumbrances or interference by Council; this Mrs. Teglia announced as window dressing, though it was pointed out by Councilman Drago that the resolution was at the suggestion of our City Attorney; Councilwoman Teglia has made it clear she has no respect for the judgment or integrity of her fellow Councilmembers in recent meetings; apparently this extends on occasions to the City Attorney if we take note of her criticism of the resolution; she would ask that you read carefully Measure C and vote for the return of responsible government to S.S.F. Mayor Penna pointed out to Mrs. Smith that it was Measure D. CLOSED SESSION Council adjourned to a Closed Session at 8:09 p.m. to discuss labor negotiations regarding AFSCME Local 1569 pursuant to G.C. 54957.6. Mayor Penna recalled the meeting to order at 8:45 p.m., all Council present, no action was taken. M/S Fernekes/Teglia - To adjourn the meeting. Carried by unanimous voice vote. Time of adjournment was 8:46 p.m. 3/25/92 Page 10 AGENDA ACTION TAKEN ~ESPECTFULLY SUBMITTED, ~ttaya, City~rk City of South San Francisco '~hn' R. l~onna, Mayor Cityy.~th 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. 3/25/92 Page 11