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HomeMy WebLinkAboutMinutes 1994-03-23 Mayor Joseph A. Femekes Council: Jack Drago John R. Penna '-'Roberta Cerri Teglia Robert Yee MINUTES City Council ~ Municipal Services Building Community Room March 23, 1994 209 CALL TO ORDER: ROLL CALL: AGENDA (Cassette No. 1) PLEDGE OF ALLEGIANCE: INVOCATION: PRESENTATIONS Proclamation - Richard Ng Proclamation - Mediation Week San Mateo County Supervisor Mike Nevin Regarding "Progress Seminar" ACTION TAKEN 7:55 p.m. Mayor Fernekes presiding. Council Present: Drago, Penna, Yee and Fernekes. Council Absent: Teglia. The Pledge was recited. Rev. Izerta, St. Paul's Methodist Church, gave the invocation. Rev. Izerta solicited support from the Council in writing Washington Legislators to reverse President Clinton from cutting Federal funding for Food Pan- tries. PRESENTATIONS Councilman Yee read the Proclamation aloud and presented it to Mr. Ng in support of his achieve- ments for youth in badminton. Councilman Penna read the Proclamation aloud and presented it to Mr. and Mrs. Pedro Gonzales. Ms. Denise Welder, Legislative Aide to Supervisor Nevin, stated the Supervisor was taking care of County business and unable to attend tonight's meet- ing. She stated the seminar would be held in the Monterey Regency Hotel on the weekend of April 22nd to 24th. She stated that Supervisor Nevin is co-chair of the seminar this year and has made a concerted effort to include the north county in the program, because it has been perceived in the past that the north is the forgotten area in govern- ment. She stated, one of the five special panel discussions will be dedicated to the life of the north county, since the theme of the weekend is "Who is respon- 3/23/94 Page 1 PRESENTATIONS AGENDA 3/23/94 Page 2 ACTION TAKEN PRESENTATIONS sible for San Mateo County". The message of this particular panel will be "As North County goes, so goes the State of California. She stated she was addressing each City to encour- age Councilmembers, department heads and business leaders to join the County in this event etc. Councilman Drago stated he had planned to ask the Supervisor what results this City can expect from such a seminar, because he could not justify spend- ing money on a seminar at a time when the City was cutting services. He wanted to discourage anyone from going and have staff not participate in this trip to Monterey. He felt some consideration should have been given to our own Conference Center in S.S.F., when he looked at the travel and hotel ex- penses involved. Mayor Fernekes stated that could be communicated to the Supervisor in a letter. City Manger Wohlenberg stated that Assistant City Manager Martel planned to attend the seminar and talk about economic development at the north end of the County. Assistant City Manager Martel stated she was invit- ed, by Supervisor Nevin, to participate in the prog- ress seminar, as a representative of North County, along with Economic & Community Development Director Peg Stone of Daly City. She stated they would sit on a panel dealing with economic devel- opment in the north county. She stated that her particular panel was sponsored by the Redwood City Chamber of Commerce which, in the past, had always been south county oriented and the inclusion of a north county panel on eco- nomic and community development was to set-up a networking of new businesses in the County. She stated Supervisor Nevin felt this was an opportunity for the northern cities to have a voice in the County and present the various economic amenities in this part of the County and enhance their base; etc. She stated that our Redevelopment Agency would be funding her expenses for the seminar, because of the economic development aspects. PRESENTATIONS A~ENDA 3/23/94 Page 3 ACTION TAKEN PRESENTATIONS Councilman Drago stated that Supervisor Barrales spoke of this same issue an hour ago - about form- ing a Committee and wanted us to put up $15,000 to join County economic development. Discussion followed: many businesses were antici- pated to attend the seminars from all over the State; S.S.F. Chamber of Commerce is not even listed as a sponsor; our Chamber had declined participation, because of previous south county activity, before learning of the north county panel; registration would be waived for each panelist; Assistant City Manager's expenses would be the two nights lodging in Monterey; no other members of City staff would attend; Councilman Drago continued to question the value of spending money on this seminar, when the funds could be used for more worthwhile servic- es; Councilman Penna noted that Chambers of Com- merce of Burlingame, Daly City, Colma, Millbrae, Paeifiea and San Bruno are participating and ques- tioned why our Chamber did not see the benefit; he would like to see some criteria established in the County, to determine how we are going to be functioning after spending the $15,000; Councilman Yee noted that it was mainly peninsula cities attend- ing and questioned why they were not meeting on the peninsula - rather than in Monterey, where they are spending $100 a night for a room; etc. City Manager Wohlenberg stated that the Assistant City Manager had come to him with the opportunity and, after review, his thinking was, maybe we iso- late ourselves more than it is to our advantage at times. He felt trying to get involved with these other entities may, in the long run, benefit us and where they meet is totally out of our control. He stated this was a first attempt to involve this end of the County and, as Councilman Penna noted, maybe we should encourage our Chamber to stay involved in these things; etc. Ms. Denise Welder stated she would express the Council's reservations and objections to Supervisor Nevin. She stated that a person could register for only one day of the seminar and not stay overnight at a hotel. Mr. Louis T. Bartel, Jr., 352 Ferndale Ave., spoke in favor of this activity, because he had been in AQENDA A~I!QN TAKEN PRESENTATIONS AGENDA REVIEW RECESS: RECALL TO ORDER: EPORT OF THE CITY MANAGER ORAL COMMUNICATIONS COMMUNITY FORUM CONSENT CALENDAR 1. Motion to approve Minutes of the Regular Meeting of 2/23/94 and the Special Meeting of 3/2/94. 2. Motion to confirm expense claims of 3/23/94. Resolution authorizing agreement with the County of San Mateo to provide Medical Priority Dispatch Services for the City of S.S.F. A RESOLUTION APPROVING AN AGREEMENT FOR MEDICAL PRIORITY DISPATCH SERVICES 212 PRESENTATIONS volved with organizations for many years and found that, if you join them or at least participate, be pres- ent. He felt, not only are you able to express your own opinions, you also gather information and make personal contact with associates. He felt, in this case - where some of the finances will be subsi dized, it was short sighted not to attend. AGENDA REVIEW City Manager Wohlenberg confirmed the Closed Session at the end of the meeting would be for nego- tiations with the Firefighters. Mayor Fernekes declared a recess at 8:35 p.m. for the benefit of students exiting the meeting. Mayor Fernekes recalled the meeting to order at 8:43 p.m., all Council was present. Mayor Fernekes welcomed Interim City Attorney Nave. REPORT OF THE CITY MANAGER City Manager Wohlenberg stated he had nothing in addition to report tonight. ORAL COMMUNICATIONS No one chose to speak. COMMUNITY FORUM No one chose to speak. CONSENT CALENDAR Approved. Approved in the amount of $2,653,986.50. Removed from the Consent Calendar for discussion by Councilman Drago. 3/23/94 Page 4 A~ENDA CONSENT CALENDAR Resolution approving a $55,000 amendment to the 1993/94 Capital Improvement Budget for the installa- tion of pathway/security and tennis court lighting at Brentwood Park. A RESOLUTION APPROVING BUDGET AMENDMENT CIP 94-4 TO THE 1993-1994 CAP- ITAL IMPROVEMENT BUDGET Resolution allocating $430,000 of 1993-94 HOME funding from the San Mateo County HOME Consor- tium to complete seismic retrofitting and accessibility requirements for the Metropolitan Hotel's 62 single room occupancy units and authorizing necessary construction contracts. A RESOLUTION AUTHORIZING APPROVAL OF USE OF SAN MATEO COUNTY HOME CON- SORTIUM FUNDS FOR SEISMIC RETROFITTING AND DISABILITY ACCESS AND AUTHORIZING RESULTANT CONTRACTS FOR THE METRO- POLITAN HOTEL Resolution of Intention to vacate a public utility ease- ment at 429 Cabot Road and setting a Public Hearing on 4/27/94 regarding the proposed abandonment. ,,6"~9~ A RESOLUTION OF INTENTION TO VACATE A 10' WIDE PUBLIC UTILITY EASEMENT, ALIGNED NORTH TO SOUTH ACROSS THE PROPERTY LOCATED AT 429 CABOT ROAD IN SOUTH SAN FRANCISCO Motion to adopt an ordinance amending the City's contract with the Public Employee Retirement System to provide military service credit for fire personnel. AN ORDINANCE AUTHORIZING AN AMEND- MENT TO THE CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO AND THE BOARD OF ADMINIS- TRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Resolution authorizing an agreement with Meyers, Nave, Riback & West for Interim City Attorney services. .5~,''] 7-- A RESOLUTION AUTHORIZING AN AGREE- AC_TIQN TAKEN CONSENT CALENDAR Removed from the Consent Calendar for discussion by Councilman Drago. Removed from the Consent Calendar for discussion by Councilman Yee. RESOLUTION NO. 30-94 ORDINANCE NO. 1140-94 RESOLUTION NO. 31-94 3/23/94 Page 5 A~ENDA ACIIQN TAKEN CONSENT CALENDAR ;. Resolution- Continued. MENT FOR CITY ATrORNEY SERVICES WITH MEYERS, NAVE, RIBACK, SILVER & WILSON 9. Motion to approve the Moratorium Completion Re- port for the East of 101 Area. ~5-D ~ a] Resolution authorizing agreement with the County of San Mateo to provide Medical Priority Dispatch Services for the City of S.S.F. ,5'Oq/~ A RESOLUTION APPROVING AN AGREEMENT FOR MEDICAL PRIORITY DISPATCH SERVICES Resolution approving a $55,000 amendment to the 1993/94 Capital Improvement Budget for the installa- tion of pathway/security and tennis court lighting at Brnetwood Park. ._.6"/2.0 A RESOLUTION APPROVING BUDGET AMEND- MENT CIP 94-4 TO THE 1993-1994 CAPITAL IMPROVEMENT BUDGET CONSENT CALENDAR Approved. M/S Drago/Yee - To approve the Consent Calendar with the exception of Items No. 3, 4 and 5. Carried by unanimous voice vote. Fire Chief Stark gave the staff report in detail and stated that the cost was prohibitive to have certifica- tion for emergency dispatchers. He stated these negotiations had gone on for two years and the agreement was the trading of services. He stated they were proposing the County provide prearrival instructions, however, there would not be a trade off of funds. Councilman Drago stated he did not want the City mandated to service County islands and this would allow a higher level of service. M/S Drago/Yee - To adopt the Resolution. RESOLUTION NO. 32-94 Carried by unanimous voice vote. Councilman Drago noted: this had been pending since 1982; he hoped the inqieu fees were sufficient; he was concerned on the lighting; and hoped the Director would meet with the residents on the im- provements. M/S Drago/Yee - To adopt the Resolution. RESOLUTION NO. 33-94 EDEVELOPMENT AGENCY MEETING RECON- vENED IN THE CITY COUNCIL MEETING: Carried by unanimous voice vote. Chairman Fernekes reconvened the Redevelopment Agency meeting at 8:53 p.m., so their item could be heard with Council Item No. 5. 3/23/94 Page 6 AGENDA ACTIQN TAKEN (~ITY COUNCIL ITEM Resolution allocating $430.000 of 1993-94 HOME funding from the San Mateo County HOME Consor- tium to complete seismic retrofitting and accessibility requirements for the Metropolitan Hotel's 62 single room occupancy units and authorizing necessary construction contracts. ,b-t5 gaj A RESOLUTION AUTHORIZING APPROVAL OF USE OF SAN MATEO COUNTY HOME CON- SORTIUM FUNDS FOR SEISMIC RETROFIT- TING AND DISABILITY ACCESS AND AUTHO- RIZING RESULTANT CONTRACTS FOR THE METROPOLITAN HOTEL REDEVELOPMENT ITEM NO. 3. Motion to approve conceptually a $430,000 loan of Agency Low to Moderate Housing Funds to the seismic upgrading and handicapped access for the 62 single room occupancy units in the Metropolitan Hotel at 220 Linden Avenue. -~-~ City Manager Wohlenberg related: City entered into a joint effort with the owners of the Metropoli- tan Hotel to upgrade that property; initial work focused on the first floor retail; various grants and loans were made to do the facade renovations and some seismic work on the ground floor area; the upper two floors, of low to moderate rental units, must also be upgraded for seismic corrections; City and owner had engineering work done to identify costs; it was time to finish the work on the upper two floors and there were Federal HOME funds available for half of the work; what was suggested was a loan for the other half, from the Redevelop- ment Agency, similar to the loan for the downstairs area. He stated it was important to remember that, due to a prior out of Court settlement, the City must be a party to maintaining low to moderate income hous- ing in that area. He stated if, for any reason, these units were discontinued, we would have to take a leadership role in replacing them in other areas - so the cost of renovations to make these units in com- pliance with seismic and access requirements is the cheapest way to maintain these units. CDBG Coordinator Fragoso stated that the HOME funding, unlike many Federal programs, is free money and without strings to cities. She stated 1992-93 funds were set aside in the amount of $230,000 for the Metropolitan Hotel and there is $200,000 now available in 1993-94 funds for an affordable housing project. Boardmember Yee stated that $486,000 had already been spent on this project, we plan to spend $810,000 more and now intend to spend money for a commercial store. He stated that now we are talking about $1.3 million and more, the owner only contributed $200,000 and questioned if the City would own part of the building when it was fin- ished. He questioned if any other properties were getting the HOME funds, noted this was a low income housing loan - $430,000, without interest, and ques- tioned if they pay back the City. CDBG Coordinator Fragoso replied: in up front money, it was true the owner only spent $200,000; 3/23/94 Page 7 ~ENDA ACTIQN TAKEN CITY COUNCIL AND REDEVELOPMENT AGENCY - ',ONTINUED. t~edevelopment Agency Item 3 - Continued. CITY COUNCIL AND REDEVELOPMENT AGENCY - CONTINUED. no, the City would not own the building; the only restriction placed on the owner was to maintain the affordable housing for the 40 year period; the loan would be paid back to the Agency; the loan would be secured by a deed of trust; only one property qualifies; the terms of the loan do not require inter- est, but they could have interest; U.S. Escrow has been handling these loans, they charge a hetty ad- ministrative fee, which the owner now pays, and that is why no interest is proposed; there had been discussions about the City handling and collecting the fees. Boardmember Yee stated that forty years is a long, long term and suggested the City collect the funds monthly and charge interest. He stated he had problems with the loan concept because, when you get it back, you are supposed to use the money for some other project and questioned why the loan period was not shorter. Discussion followed: why didn't the hotel get a loan, because the property will be worth $2 million when the project is done; the CDBG loan is $100,000 for 15 years, at zero interest, with 795 administrative fee; the 40 years go beyond the life of the redevelopment district - then what happens to the loan; Boardmember Drago agreed, the City should collect money for the redevelopment loan - perhaps 1 95; the payment is $2,000 a month, for the two loans; the improvements were mandated by ADA requirements; HOME funds can only be used for affordable housing loans or rehabilitation of rental rehab projects; the rents at the Metro Hotel cannot exceed $450.00 a month; because the funds were set aside a year ago, they must be allocated or will go back to the County; Boardmember Yee suggested moving ahead on the HOME funds, because they are free, but had a concern on who was going to admin- ister the loans; etc. Mr. Alan Askar asked the Council to invite himself and other URM property owners to work on compi- lation of the staff reports for any proposals regard- ing URMs in the future. He felt himself and other property owners could answer some of the questions brought up tonight with regards to this funding. 3/23/94 Page 8 AGENDA CITY COUNCIL AND REDEVELOPMENT AGENCY - ~.ONTINUED. ACT!QN TAKEN CITY COUNCIL AND REDEVELOPMENT AGENCY - CONTINUED. He stated he realized there were few URM buildings that were residential, because most were commer- cial, and felt the Council should look at whether the URM property could support a 40 year loan. He stated that .retrofitting would not save the building in the event of a major earthquake and, if the building was demolished, what happens to the loan. Councilman Drago commended Mr. Askar for his previous work with staff and his knowledge of the subject, which had brought us to this point of cre- ative financing - rather than having to demolish buildings. He suggested putting off the vote on redevelopment funds until there was a report on the eligibility of buildings. City Manager Wohlenberg stated, he was not sure this could be separated because, if it took $800,000 to do two floors -- what if you decided to give the Federal HOME money and not the loan, then the project would be unable to proceed. Councilman Yee stated his comment about the seis- mic retrofit for the downtown buildings was to use HOME funds, and they are saying there are no other buildings that qualify. He stated, if there were no other buildings, we should hold that item back - no, on redevelopment. He felt it was okay to approve the redevelopment funds even if the terms are differ- ent than presented here in the resolution, which should have different terms, positions and should add interest. He questioned if the motion should be to adopt the resolution with the exception that the interest, the term of the loan (number of years) shall be less than 40 years and the interest rate will be more than zero. City Manager Wohlenberg stated, they could ap- prove it, subject to staff getting out the details, bringing them back and Council approving the con- cept of a loan - maybe 30 years, with some reason- able rate of interest with the City processing it. He stated the Council action was on the HOME grant, with the Agency approving conceptually a loan and stipulating what terms would be appropriate. 3/23/94 Page 9 AGENDA CITY COUNCIL AND REDEVELOPMENT AGENCY - .ONTINUED MTY COUNCIL ACTION: REDEVELOPMENT AGENCY ACTION: REDEVELOPMENT AGENCY ADJOURNMENT: ADMINISTRATIVE BUSINESS 10. Consideration of request from Harry Costa to hold a 1994 "Grand Avenue Festival". ACTION .TAKEN 2.1. CITY COUNCIL AND REDEVELOPMENT AGENCY - CONTINUED. M/S Yee/Drago - To adopt the resolution allocating $430,000 of 1993-94 HOME funding from the San Mateo County HOME Consortium to complete seis- mic retrofitting and accessibility requirements for the Metropolitan Hotel's 62 single room occupancy units and authorizing necessary construction contracts. RESOLUTION NO. 34-94 Carried by majority voice vote, Councilman Penna did not participate in the discussion nor vote. M/S Yee/Drago - To approve, in concept, the loan of the redevelopment funds - subject to staff being able to negotiate an interest rate on the loan and a term for their payment of the loan, which is accept- able to the loan holder and to the Council. Carried by majority voice vote, Boardmember Perma did not participate in the discussion nor vote. M/S Penna/Drago - To adjourn the Redevelopment Agency meeting. Carried by unanimous voice vote. Time of adjournment was 9:30 p.m. ADMINISTRATIVE BUSINESS Mr. Harry Costa presented his plan for the Festival: from Maple to spruce on Grand Avenue; needs dance platform on City Hall steps; did survey of Grand Avenue Merchants and with 100 phone calls merchants were in favor; he would bear most all of the costs; etc. Discussion followed: Councilman Drago supported the request; Councilman Yee supported the request, but wanted Mr. Costa to meet with the City Manag- er and work out the arrangements; the Festival would be in August, for two days, with Walnut Ave. closed to traffic; Orange Park was mentioned for a future festival; Councilman Penna wanted every merchant contacted, because this can be dis- ruptive and cause restricted access; merchants on the 200 and 300 blocks of Grand are greatly in favor; Mr. Costa needed direction in order to notify the 3/23/94 Page 10 AGENDA ADMINISTRATIVE BUSINESS 0. Consideration of request - Continued. 11. Consideration of proposal to conduct an organization- al and program effectiveness survey of all City ser- vices, ox-~3D 12. Motion to approve the scope of work for the Friends to Parents project to relocate their child care facility as funded by 1993-94 Community Development Block Grant Funds. .5"t9 ~,c~ (Cassette No. 2) ACTION TAKEN ADMINISTRATIVE BUSINESS vendors in time; Councilman Penna would be sup- portive, if merchants agree, and staff should work out details in two weeks; Mr. Costa would interview vendors; City should pay some of the police services needed, because they are on duty anyway; police assignment is overtime and costs $2,800-$3,200; Mr. Costa had a cap of $2,000 to pay for street cleaning on the last night of festival; etc. Concurrence of Council - Staff to come back to Council in two weeks with unanswered questions, including the financial aspects, if the merchants agree. Councilman Drago stated that, if the City Manager, staff and Mr. Costa agree, this could be settled in a few days. City Manager Wohlenberg related the preliminary budget in January noted the City has a million dollar shortfall and needs the most cost effective means to deal with the problem. He was suggesting a propos- al for a firm to conduct such a study, however, the Council may want to continue the item. Councilman Penna stated this had been started by Councilwoman Teglia and wanted the item continued until she could be present. Councilman Yee suggested continuing the item but get a RFP in front of the Council to speed up the process. M/S PennaJYee - To continue the item to the ad- journed 4/6/94 meeting. Carried by unanimous voice vote. CDBG Coordinator Fragoso stated that $30,000 had been allocated for the relocation, due to the sale of the Avalon school site. She related: this allows them to move to the Foxridge site, but they must move by June; they found a site in San Bruno to purchase; they are asking for funds for the move to Foxridge, renovation of the diaper area and $20,000 to secure the land in San Bruno they are purchasing. Mayor Fernekes expressed concern in spending money outside S.S.F. and asked if the $20,000 3/23/94 Page 11 AGENDA ADMINISTRATIVE BUSINESS 1. Motion - Continued. 3/23/94 Page 12 _ACIIQN TAKEN ADMINISTRATIVE BUSINESS would be returned to the City if they purchased the site. CDBG Coordinator Fragoso stated it would not be returned to the City. Councilman Yee also had a problem spending mon- ey outside S.S.F. and for other than S.S.F. resi- dents, because San Bruno also has CDBG funds. He stated that last year he and Councilwoman Teglia were on a Budget Committee and had decided not to earmark funds for any other site because, it posed a problem with the Planning Commission because it looked like the Council was approving the use per- mit. He stated, he did not have a problem with the funds for the first two items but did have a problem with the third - the land, and the Council was not endors- ing the use permit for the Foxridge School. Ms. Bernice Perazzo, Executive Director Friends to Parents, thanked the Council for allocating the funds and related: they handle infants from two weeks to five years old in their facility; they have 135 babies, of which 55% are from S.S.F.; 64% of those are from low income families; the County was interest- ing in funding the land which had a cost of $680,000; the building would cost $2,000,000, which grants and private funding would finance; ex- pand to caring for 200 babies; because of licensing requirements, they needed to have their own land; they had looked in S.S.F. and been unsuccessful. Councilman Penna stated he also had a problem with the site, because it was not as accessible as the school site for low income people - who probably don't have a car. He felt this was a San Bruno project, without benefit to S.S.F. Councilman Drago was also against spending funds in San Bruno. CDBG Coordinator Fragoso asked, if additional funds were needed for the Foxridge move, could the $20,000 be used. Mayor Fernekes replied, no, it would have to come back before Council for approval. AGENDA aDMINISTRATIVE BUSINESS 2. Motion - Continued. 13. Resolution amending the Oyster Point Interchange Project Budget and authorizing a license agreement with Homart Development Co., to include initial discussion of financing issues regarding future phases of the project. ~' ! I/,~ 6-1 zo A RESOLUTION AUTHORIZING A LICENSE AGREEMENT WITH THE HOMART DEVELOP- MENT COMPANY REGARDING THE OYSTER POINT INTERCHANGE PROJECT AND AP- PROVING BUDGET AMENDMENT CIP 94-5 TO THE 1993-1994 CAPITAL IMPROVEMENT BUD- GET ACTION TAKEN ADMINISTRATIVE BUSINESS Councilman Yee stated the intent was not to encour- age people to spend CDBG funds but, if it was a legitimate need, it should have been presented to- night. M/S Yee/Drago - To waive City use permit fees for Foxridge School, allocate $6,206 for the move and $3,794 for renovation of the diaper area, with the footnote that the Council was not endorsing the use permit. Carried by unanimous voice vote. City Manager Wohlenberg stated that staff needed more time to gather and analyze data for the future need of the development fees, as well as look at boundaries and scope of the Oyster Point project. Director of Public Works Parini stated tonight's action is to authorize a license agreement with Homart Co. and to approve funds to amend the Capital Improvement Budget. He stated that Homart had expressed concern about the original design, staff and Homart agreed to include some additional fill - as a change order with the interchange con- struction and to pay for the added work with Gate- way Assessment District funds, and Council had concurred. He stated the resolution would budget an additional $250,000 from the Gateway Assessment District. He stated the license agreement with Homart gives the City permission to do work on their property - to place fill and restore the landscap- ing and paved path. He stated the City would main- tain the improvements in the roadway right-of-way and Homart would on their own property. He stated that $450,000 had accumulated in the fund balance, due to fees and interest, and suggested bud- geting that money now in the event it was needed. Councilman Yee stated he had talked to the City Manager today about the two decisions involved here: agreement with Homart to improve the adja- cent site and use redevelopment funds - which he could support; and transferring $450,000 additional funds into this project. He expressed concern over transferring the $450,000 without knowing what it was scoped for to begin with, how much money was spent, what is the expected expenditure and how 3/23/94 Page 13 AGENDA ADMINISTRATIVE BUSINESS 3. Resolution - Continued. 3/23/94 Page 14 ACTION TAKEN 222 ADMINISTRATIVE BUSINESS He stated to clearly identify the $450,000 was one thing but just to put the money in there bothered him. He stated we had to clearly identify where we are today - which is clearly not in the staff report and this is a $35,000,000 project; he did not want staff to say two years from now, we need another $2,000,000. He stated he did not have a problem approving the license agreement with Homart nor spending the money for the change order but do not transfer the $450,000 until there is a proven need. Councilman Penna expressed concern about the amount of toxics on the property and the prior staff reports that say the Homart site has toxics on it. He stated the City was going through this with the proj- ect and it is costing a lot of money for the clean up occurring. He wondered, if the City became involved with this, would it present the City with liability involved with toxic clean ups on that site. Interim City Attorney Nave stated existing law is that any property acquired by a public agency under CERCLA, which is a Federal Act, is insulated against any further liability for any toxins, toxic or contamination that may be on the property. He believed the same provision is in the State version of the CERCLA. So, if the City of S.S.F. enters into this license agreement and indeed the property be- neath there is contaminated, we are not going to be liable to anybody down the line - even the Federal Government or any third party for any contamina- tion. He continued, from that standpoint, he thought the Council would be clear to enter into the license agreement, at least from the contamination stand- point. Councilman Penna questioned if that also applied for our Oyster Point Overpass. Interim City Attorney Nave stated he had only been around for a couple of days and was not yet ap- prised of the project. Councilman Penna stated he would like to have a legal opinion on it. Interim City Attorney Nave asked for clarification A~ENDA aDMINISTRATIVE BUSINESS 3. Resolution - Continued. LEGISLATIVE BUSINESS 14. Motion to waive reading and introduce an ordinance to formally add and delete certain positions to and from Competitive and Non-Competitive Service from the Municipal Code. AN ORDINANCE OF THE SOUTH SAN FRAN- CISCO CITY COUNCIL AMENDING CHAPTER 3.12 OF THE MUNICIPAL CODE BY ADDING AND DELETING CERTAIN POSITIONS TO AND FROM THE COMPETITIVE AND NON-COMPET- ITIVE SERVICE ACIIQN TAKEN ADMINISTRATIVE BUSINESS whether he wanted the City Attorney's Office to provide Council with a memorandum discussing our liability for the acquisition of any property for pub- lic purpose. Councilman Penna replied, correct - and specifically property acquired by the City for the Oyster Point Overpass from the Shearwater site and the adjoining site, from S.P. and others. Interim City Attorney Nave stated Assistant City Attorney Chiozza related there is a law firm that has been doing some work for the City for the acquisi- tion, so he did not want to duplicate efforts or ex- penseso Councilman Yee agreed it should be coordinated with the Assistant City Attorney. Discussion followed: if the $232,000 included the landscaping; property lines for landscaping; the entire pathway will belong to Homart and they would irrigate and maintain all their landscaping; everything on the other side of the property line belongs to the City; should negotiate with Homart to maintain the whole thing, including the bike path. M/S Yee/Drago - To adopt the Resolution for the license agreement, but exclude paragraph No. 2. RESOLUTION NO. 35-94 Carried by unanimous voice vote. LEGISLATIVE BUSINESS Councilman Drago stated he would be registering a yes vote on the waiving of the reading and a no vote on the introduction of the ordinance, because he had registered no votes on some of these classi- fications in the past. M/S Yee/Penna - To waive reading of the ordi- nance. Carried by unanimous voice vote. M/S Yee/Penna - To introduce the ordinance. 3/23/94 Page 15 AGENDA ACIIQN TAKEN I.EGISLATIVE BUSINESS 4. Motion- Continued. ITEMS FROM COUNCIL 15. Oral Committee Reports. Appointment of City Council Representatives to the Conference Center Authority. ~'.qO 6t 224 LEGISLATIVE BUSINESS Carried by majority voice vote, Councilman Drago voted no. ITEMS FROM COUNCIL Councilman Drago stated he attended a Harbor Commission meeting with Councilman Yee and had put a report in the Council jacket covering a number of items. Councilman Yee stated there was concern over the State taking away more money from the Harbor District to give to the schools, which will make them go broke. He stated they owe some number of millions to the State in a loan and are supposed to pay it back from the money they get from the Coun- ty, yet every year more is taken away to go towards the schools. Councilman Penna noted the City has a management agreement with the Harbor District and allowed them to borrow from the State to fund the operation. He questioned who pays the State if there is a de- fault. Councilman Yee stated the City did not sign the loan agreement with the State. Councilman Drago requested SB1666 be agendized, for that is the bill the Harbor District was opposing which will take the funds away from the District. Councilman Penna requested a legal opinion on the recourse back to us if the Harbor District defaults on the loan and what our exposure is. Councilman Yee suggested the City Manager get that information from County Counsel. City Attorney Nave stated he had done work for the Harbor District for a number of years and San Mateo County wants the Harbor District to go out of business. Mayor requested a Motion and Second to confirm his appointment of Councilmembers Drago and Perma to a two year term on the Conference Center Authority. 3/23/94 Page 16 ~ENDA ~!~N TAKEN ITEMS FROM COUNCIL 5a. Appointment - Continued. GOOD AND WELFARE 225 ITEMS FROM COUNCIL M/S Yee/Fernekes - To appoint Councilmembers Drago and Penna to a two year term on the Confer- ence Center Authority. Carried by unanimous voice vote. GOOD AND WELFARE No one chose to speak. CLOSED SESSION 16. Closed Session for the purpose of personnel matters, labor relations, property negotiations and litigation. RECALL TO ORDER: Motion to adjourn the meeting to Wednesday, 4/6/94, 5:00 p.m., City Hall Council Conference Room, for a Closed Session for evaluation of the City Manager, and reconvene at 7:00 p.m. at the Municipal Services Building Community Room for a joint meeting with the Planning Commission to continue discussion of the outstanding issues on the East of 101 Area Plan (Public Hearing was closed on 3/9/94) and Motion to direct preparation of the Final Area Plan incorporat- ing the Council's and Commission's comments. ADJOURNMENT: CLOSED SESSION Council adjourned to a Closed Session at 10:50 p.m. for labor relations with the Fire Fighters Union. Mayor Fernekes recalled the meeting to order at 11:30 p.m., all Council was present, no action was taken. M/S Penna/Drago - To adjourn the meeting to Wednesday, 4/6/94, 5:00 p.m. at City Council Conference Room, City Hall for the items listed and further discussion of Item No. 11. Carried by unanimous voice vote. Time of adjournment was 11:31 p.m. RESPECTFULLY SUBMITTED, Barbara A. Battaya, City Clerk City of South San Francisco APPROVED. he entries of this Council meeting show the action taken by the City Council to dispose of an item. Oral communica- >ns, arguments and comments are recorded on tape. The tape and documents related to the items are on file in the uffice of the City Clerk and are available for inspection, review and copying. 3/23/94 Page 17