HomeMy WebLinkAboutMinutes 1994-10-12Mayor Joseph A. Fernekes
Council:
Jack Drago
John R. Penna
Roberta Cerri Teglia
Robert Yee
MINUTES
City Council
Municipal Services Building
Community Room
October 12, 1994
162
CALL TO ORDER:
ROLL CALL:
AGENDA
(Cassette No. 1)
PLEDGE OF ALLEGIANCE:
INVOCATION:
RESENTATIONS
AGENDA REVIEW
Acting City Manager Martel Requested:
Remove items 3 and 6 and continue item 5 to
10/26/94.
ACTION TAKEN
7:33 p.m., Mayor Fernekes presiding.
Council Present: Drago, Penna, Teglia, Yee and
Fernekes.
Council Absent: None.
Deputy City Clerk Bill stated that City Clerk Battaya
was away on personal business.
The Pledge was recited.
Rev. Joseph Landi, St. Veronica's Catholic Church,
gave the invocation.
PRESENTATIONS
There were no presentations.
AGENDA REVIEW
It was announced to change the Agenda item number
for Public Hearings - Item No. 4, to Item No. 5 and
to continue renumbering for the rest of the Agenda.
Councilwoman Teglia questioned why these were
being pulled.
Acting City Manager Martel stated that Item No. 3
was being removed because of a need for the City to
reconsider the numbers included in that report, Item
No. 5 was being continued to 10/26/94 at the re-
quest of the applicant, who was out of town, and
Item No. 6 was being removed at the request of the
applicant's attorney, because additional follow-up
was needed at the County level.
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REPORT OF THE CITY MANAGER
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(Cassette No. 2 - Cassette No. 1 malfunctioned)
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REPORT OF THE CITY MANAGER
Acting City Manager Martel stated she did not have
anything to report.
ORAL COMMUNICATIONS
Ms. Pat Burke, 1700 El Camino Real, thanked the
Council, the Flood Control District and Interim
Director of Public Works Wykoff for their efforts in
addressing her concerns about the proposed BART
extension. She presented a letter from the U.S.
Dept. of Transportation in Washington, D.C., which
replied to a letter she and other residents of the
Treasure Island Trailer Park sent to them addressing
objections to the proposed alignments for the BART
extension project and concerns over potential pollu-
tion from hazardous materials during project con-
struction activities, and she also presented a flyer
from Peninsula Rail 2000, which stated the CalTrain
Joint Powers Board is considering an ordinance to
limit free speech at CaiTrain stations and on trains.
She asked the City Clerk to make copies of these
and forward them to Council. She stated limiting
free speech is in violation of our constitutional
rights.
Mr. Lou Dell'Angela, 460 Gardenside Avenue,
stated he was here to talk about or get some infor-
mation on where the City was on the whole permit
expediting and red tape cutting process.
He stated a couple of weeks ago he sent Council a
letter stating he thought there was still a real, major
problem in this City relative to red tape.
He stated he was somewhat frustrated because he
didn't know where to go to get action. He stated
the natural course of certain people is to come
straight to Council and let it work down - but he
preferred not to do that. However, it is difficult to
get anything accomplished or to get some decisions,
made at a lower lever, reconsidered. He pointed out
he was working on two projects recently in this
City. One dealt with the Tony's Hofbrau Restaurant
on So. Spruce, which is now going to be the El
Mariachi Restaurant. It was an absolute nightmare
between the Planning and Building Departments.
The process is still not ended, they're still process-
ing a new set of plans and the building is still not
open. It has been going on probably for a year.
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The second project, which he thought was a pretty
good project, was for a hotel, which was going to
generate to the City over $100,O00/year in revenue
and it seemed like every time they turned around
more and more obstacles were thrown in their path.
He stated he was not there to just complain that
some of the projects he was working on are having
obstacles thrown in their paths but because he also
runs across small business people and residential
homeowners in this community who want to make
improvements to their property, who want to do
something positive in this community, and it seems
like every time these people hit certain offices it just
stops dead and because these people need help as
well.
He stated, at some point of time, we have to stop
talking about streamlining and we have to start
doing some streamlining. He related the Design
Review Board is a major obstacle and something
should be done about this, because it is a dead-end
for a lot of people.
He felt there is a need for an appeal process in the
Planning and Building Departments, because some-
one may not agree with a judgement of the Planning
Director or the Chief Building Official. There is a
need for some place to go to get some sort of recon-
sideration on some of the judgements that are made.
However, there does not seem to be any place to go.
So, he feels changes are needed.
He understands Interim Director of Econ. & Comm.
Dev. Beyer is doing a study and felt that's like
putting the solution to all the problems in the hands
of one person. He hopes that when this report
comes out, and hopefully it will be fairly soon, it
will be made public, will be discussed by the public
and changes that are made or recommended are
talked about before any kind of action is taken.
He stated on tonight's Agenda was an item that has
been sitting around since July of this year and the
whole process struck him as being extremely ridicu-
lous - it was a big deal over something very little.
It's these kinds of things that drive people crazy, are
costly and time consuming and turn a lot of people
off in this community.
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He related that we are all aware we are in very
tough, economic times. We are in competition with
a lot of other communities for development to stabi-
lize our community and to do positive things. We
need to move ahead with some decisive action to
help people rather than hinder and hurt them. We
need to have avenues open so that, if they don't get
reasonable decisions at our lower staff levels, they
have an avenue to go to and try to get relief. Oth-
erwise, this City is going to lose more industry and
jobs and people will turn away from making im-
provements to their properties. He urged Council to
move quickly on this.
He stated he would like, before he left that night,
some idea as to when some recommendations were
going to come forward and when some action was
going to be taken to try to help the process and to
try to cut the red tape in this town.
Vice Mayor Yee told Mr. Dell'Angela he was sure
he was aware that Councilman Drago and he were
on a committee that has been working on the prob-
lem for about a year, that they are just as frustrated
as he is and are trying to get some of the process
streamlined. However, one has to understand that it
is very easy to be critical. They have to balance
between the needs of the business people vs. the
Code, as well as the minimum requirements they
have to impose. So, it's not as easy as just open the
front gate. He stated he was not trying to defend
the City's red tape problem and that he was very
outspoken for at least a couple of years on Council
that we should improve our permit process. He
stated Councilman Drago and he had a meeting a
month or so ago with Interim Director of Econ. &
Comm. Dev. Beyer and that certain improvements
had been implemented and asked the Acting City
Manager to elaborate. He also pointed out that
Acting City Manager Mattel is going to speak on
this matter this Friday at the Chamber and that per-
haps Mr. Dell'Angela could meet with her and find
out a little more about what the process is.
Acting City Manager Mattel related she couldn't
agree more about the comments that have been made
over a period of time regarding the permit process
and the variety of complaints that we have had. She
said it is an area that has needed a lot of attention,
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improvement and refinement and they have talked to
a number of people to get feedback about specific
problems, however, a lot of the complaints are about
very specific issues. When we address changes in
the permit process they have to be somewhat generic
and have to apply to a variety of cases, not be a
specific incident with which people have to deal.
She hoped the changes we implement will take care
of a lot of recurring problems.
She stated one of the problems relates to customer
service and the ease at which people can come to the
City, whether for Planning issues or Building per-
mits, maneuver through the system, in some cus-
tomer-service-friendly fashion, be able to confront a
system they may be unfamiliar with and do it all in
an expedient way.
One of the issues we have been focusing on a great
deal is how we can cut down on timeframes. We
started, especially in the building area, looking at
the timeframes that have been established in the
past, during which we review plans, get them back
to applicants and try to get the plans up to the level
at which they need to be in order to have building
permits issued. In the past, this has taken an inordi-
nate amount of time. We hope that by reducing the
timeframes and establishing, what we have not had
in the past, over the counter approval for some
permits we are going to speed up that process. We
have to examine a number of permits to see how this
is working - to look at the timeframes to check and
see how many days it is taking and how the public is
responding to that. We have been trying to do that
since we implemented it. We need more informa-
tion but we have made refinements within the last
month or two on some of the problems we have
encountered.
She stated another area we need to address is the use
of outside plan checkers - the comments we get back
and sometimes the inconsistencies that occur in the
process when the public comes in, talks to someone
at the counter and then their plans are sent out. We
are working on this and are trying to present greater
consistency in the information the public receives
over the counter, even if their plans are being
checked outside.
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She related we have been looking at the staffing
levels in the Building Division. We have had a
vacancy in the Building Division, the Senior Plan
Checker position has been vacant for a number of
months. We have appointed someone to fill that
position, starting the 24th of this month. We have
been experiencing a good deal of lag time between
the time applicants brought their plans in, got them
through the process and had a permit issued. We
are aware of that and part of the reason we have
taken so long to fill that position is because we have
looked at staffing levels and what the real needs are,
based on the kind of feedback we get from the
public. We will have someone on board who has a
good deal of experience in plan checking, an attitude
of real customer service orientation and is prepared
to deal with the public in a way to help them
through the process, especially those who are en-
countering the process for the first time.
She said these are some of the things we are dealing
with at the present time. We are also looking at a
restructuring of the Community Development De-
partment, which involves not only Building but also
Planning.
She stated some of the issues Mr. Dell'Angela raised
regarding the decision making process may be ad-
dressed, to a certain extent, in the restructuring and
that they are also looking at some changes in the
lines of communication.
She stated she could not tell Council, the public nor
Mr. Deli'Angela that people will get the decisions
they always want as a result of the restructuring but
hopefully the communication process will be im-
proved. Based on the comments she has been hear-
ing, a lot of the problems stem from poor communi-
cation or lack of communication between staff in-
volved in the decision making process and the appli-
cants. That will be addressed with the Council
subcommittee at the end of this month.
Councilwoman Teglia stated the issue of streamlin-
ing the process - making it faster, easier and more
user-friendly to people who don't come in every day
and even for those whose business it is to come in
every day to the Building and Planning Depart-
ments, has been a major concern of the entire Coun-
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cil for a long time. They have been very frustrated
about the problems but think they are making some
progress. She cautioned that streamlining does not
mean suspension of rules, codes nor ordinances. If
the person's problem is communications, we are
going to remedy that, however, if they can't do it
because of the codes, which offer the benefit of
safety and protect the welfare of everyone, that's
probably not going to change. She stated it sounds
like people think if we just clean out the Building
and Planning Departments then everyone will be
able to do whatever they want to do, however, that's
not going to be the case.
She stated the Design Review Board has been a
favorite whipping boy of many people, probably
because they don't understand how it works. It is
made up of professionals. We asked them to serve
us and they don't receive pay. They do not approve
nor deny - they look at it, make suggestions and
recommendations. Denial or approval, based on the
considerations they discuss, really rests with our
City Planner. She did not understand why things
have to go back two or three times to Design Re-
view. They should indicate their intent and what
they think the problem is then, when that intent is
met, whomever is the planner has the ability to
approve it over the counter. She said it is the one
person, the planner, who has that responsibility and
one of her problems has been trying to understand
why our staff hides on that.
Councilman Penna stated the subcommittee has been
working hard to try to bring about needed changes.
His main concern is that a lot of people are con-
cerned with reprisals by staff. There is a fear, by
the public, that, if they complain, there will be
reprisals on their job. They are done subtly and one
way of doing it is by having the person go back to
the Design Review Board more than one time, two
times, three times and even more. That's a form of
delay, a form of a reprisal. Once it goes to the
Design Review Board it shouldn't have to go back.
Mr. Dell'Angela stated he thought Councilwoman
Teglia was right about the Design Review Board.
Although the Planning Director has the final say, for
all intensive purposes, the Design Review Board is
making the judgements.
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He stated he was concerned at what Vice Mayor Yee
and Councilwoman Teglia said - that we are not
going to cut nor suspend the rules. He didn't think
anyone was asking to suspend the rules. What
disturbs a lot of people who come to City Hall is
that they are asked to do certain things and they look
around and see all of the flagrant abuses that are
somehow allowed or condoned or uses that don't
even belong there that have been approved. They
start wondering and ask why me. He feels we need
to talk about things being equal for everybody. He
doesn't think that is happening. He said he could
supply documentation to support this. He stated he
was not there to blame all of staff. He feels Council
needs to set some firm deadlines in terms of some
action, because this has been talked about since
January. As an administrator in government for a
long time, he feels an administrator generally knows
where the problems are, because he faces them day
to day, week to week and month to month. He
doesn't feel it is brain surgery. We can figure out
where the glitches and the problems are and recom-
mendations for solutions should come from the
Divisions and Departments themselves, rather than
looking at one particular individual to come up with
the solutions.
He wanted to know that some specific proposals are
going to come before this Council, maybe in a study
session, some time very soon and that we can move
forward with a streamlining process that is uniform
for everybody, that works and has an appeal pro-
cess. He said that's really all anybody asks - that it
is fair and uniform and that certain people don't get
preferential treatment and other people get ham-
mered over the head with unnecessary regulations.
Councilman Drago stated one point that we should
be aware of, which surfaced during the study, is that
over 90% of the first submittal of plans and applica-
tions are in error - there are omissions or they are
wrong. It should be a first priority, on an original
submitted plan, to make sure the information is there
and correct prior to coming in and submitting that
plan, because, when you are speaking that 90-95%
are in error, you have a log jam right at the desk.
He said he is as frustrated as anyone else is about
this, we did start over a year ago and that was one
of the reasons they requested the addition of a per-
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son to walk people through the process - a coordina-
tor of some sort. They started to find out that there
was not coordination between certain departments
and, hopefully, that is being corrected. It didn't get
that way overnight and the cure is not going to be
overnight. You are dealing with government - with
codes, process, submittal times, State laws and
agencies beyond local control.
Councilman Penna stated that usually when a plan is
submitted by a professional mistakes don't happen
but he is thinking about a lot of people out there
who get permits, for a deck or something minor, for
which a set of drawings might be required along
with other detailed information. The individual has
no knowledge of any of this and is not prepared.
He felt there should be something at the counter, a
check-off list of some sort, which would make
people know what is going to be required of them,
and there should be someone there who can explain
it to them. He feels we should be user friendly and
we should be encouraging people to take out per-
mits, because it is a source of income for the City
and also a safety feature controlling how things are
done. Where we go wrong is when the horror
stories start to develop and then the public thinks in
terms that they would rather not deal with it, that
they would rather just go and do it on their own, it's
a small job and no one will know the difference.
Because of this attitude, you may have a structure
that is not safe or construction of a deck that may
not be completely safe. He feels we really haven't
done our part in providing the health and safety
features we are supposed to be providing, because of
what takes place at staff level. He feels, if we have
someone who can explain to people when they come
in to get their permits what needs to be done in a
clear, concise way, that would go a long way in
helping to relieve the problem.
Councilwoman Teglia wanted the public to know
how seriously this Council is considering the prob-
lem. Last year and this year they cut out a number
of positions. One of the very few areas in this City
that a position was added was in this very area -
they actually created and added a new position. The
position has to do with the process - getting people
through it and trying to make it more understand-
able, meeting them at the door and making sure
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their submissions are complete. She stated she was
very much unaware of what Mr. Dell'Angela com-
mented on - that he felt some people got hit over the
head and other people got to do pretty much what
they wanted, and asked for documentation of that, if
in fact he had any. She said, if he could show it's
personality or favoritism and had evidence of that,
where the codes were the same and the rules the
same, Council would act on that. She did not like
the fact that Mr. Dell'Angela made those statements
without presenting evidence at the same time, be-
cause it gives the public an impression that is not
fair.
Vice Mayor Yee stated Interim Director of Econ. &
Comm. Dev. Beyer, at their last committee meeting,
prepared a list of all the actions that have been taken
to improve the process, as far as the Building and
Planning Departments were concerned, and asked
Acting City Manager Martel to furnish Council a
copy of that report.
Mr. Louis Poletti, 333 El Camino Real, stated he
has done a lot of building and has been through the
Building Department many times, however, the last
three or four years have been very frustrating. He
bought a building, the last eyesore on Linden Ave-
nue, some three years ago, paid $740,000 for it and
proceeded to kick out three tenants, who were there
for 30 years, with the idea of cleaning it up. He
spent $50,000 cleaning it up, got a tenant, hired an
architect, hired a civil engineer, went in with the
building plans, went through Design Review and
through the rest. When he got the building plans
back he noticed they had been sent out. What
amazed him was that, when a top building job be-
came available, the City went out and got all these
experts and after they are hired they never make a
decision. The plan came back some two months
later and it had eight changes, a few of which were
structural and code, which they were not trying to
avoid. They incorporated those changes, signed the
lease with the new tenant, brought the plan back to
the Building Department and waited another two
months. When the plan came back it had twelve
changes. He doesn't understand why the original
outfit didn't catch those changes to start with. He
would have never entered into the new lease. He
then went to George Avanessian and his engineer to
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have a meeting. He instructed them, because he
was so tired of this deal, to do the changes. They
told him no, that he would be better off tearing
down the building, because that would be less ex-
pensive than what they were requiring him to do.
He couldn't do that - because he had a lease.
He stated that's the frustrating part about the pro-
cess. They should not have to go out again.
That's where you would cut out a lot of time.
That's where all the frustration is. The minute you
come back and comply with the changes you go to
the bottom of the list and you have to go through it
all again. You have to have some people in the
Building Department making decisions. As long as
you have an architect and a registered engineer and
he complies that he has made the changes and shows
all the structural, somebody in the Building
Department should be able to make that decision.
He stated, as a result, it cost him $8,000 to get out
of the lease. He sold the building for $80,000 less.
So, when it was all over, after three years of frus-
tration, he vowed never to build in this town again.
He has Walgreen's over there but he's not building -
they are going to build. He will not go through the
process. The rest of the process can also be stream-
lined, as you shouldn't have to go through Design
Review three or four times and Planning three or
four times.
He heard the City has been studying the process to
streamline it for quite some time. However, nothing
has improved. He gets complaints from a lot of his
friends in the construction business that they won't
build in South City and he won't either.
Councilman Penna stated Mr. Poletti is someone
who has been in the community, understands the
rules and regulations very well and knows what is
expected. Yet, he runs into problems. He feels the
situation exists because we have codes on the books
that need to change and we need to set policies.
Staff is in the position of trying to interpret codes all
the time that may not be what Council is dictating as
policy. He cited an example where someone took
an old home and wanted to remodel it. It was on
the property line and code says that you can't have
windows on the property line. The individual didn't
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know that when he went to refurbish this older,
historic type building, which was in a sad state of
repair. There were delays and delays on just trying
to work this one item out. This is an example of
codes that are on the books that are in conflict with
the policies we are trying to dictate. He stated he
knows the frustrations to the public and to staff
people, because of conflicts with the codes.
Councilman Drago said it is very difficult to gener-
alize on codes, because we can play around with
zoning codes but, when you start dealing with build-
ing codes, there are a lot of codes you have no
control over. The example of windows on property
lines is a real safety feature and there is a purpose
behind it. You can't go around and arbitrarily
change codes - the State won't allow you to, and we
adopt Uniform Building Codes every three years.
Staff is supposed to make recommendations that
apply to local conditions and, if you get findings that
support it, you can apply for it - like variances on
property. He stated we deal through a City Manag-
er and if the City Manager doesn't think there is a
problem, then there is no problem. Now we are
starting again with another City Manager and if the
new City Manager feels there is not a problem,
although we can talk and talk, there is not a thing
we can do about it.
Discussion followed: we do set direction, we set
policy; policy is not changing codes; if you don't
follow it, what do you do then; you get another City
Manager.
Councilwoman Teglia stated when codes are adopted
they are adopted at Public Hearings, Council acts
and then the staff is stuck with that code. They
have to implement it, they can't arbitrarily make a
judgement contrary to it. So, their hands are some-
what tied. Codes are one thing, process is another.
She heard two examples tonight and one thing she
learned over the years is, when she gets complaints
like this, to go back and get a full story on the
whole submission. She wanted to find out what the
full story was with both Mr. Poletti's building and
the windows on the property line. Once we get the
whole story we can find out if things could have
gone smoother.
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Mayor Fernekes stated he received a letter from the
Superintendent of the School District, under direc-
tion of the Board President, that having a joint
meeting about the JPA will be discussed at their
meeting tomorrow night and he felt Council should
encourage them to set that meeting date, because
they have to get this JPA resolved. Also he asked
that a copy of the Resolution that was created in
1985 be faxed to the District so that it could be
discussed in the meeting and asked City Attorney
Mattas to outline the resolution for the Council.
City Attorney Mattas stated in 1985 the City Council
entered into an agreement with the School District
relating to the structural improvements at the Spruce
Gymnasium. As part of the agreement, the City and
District allocated time for use of it to provide for the
benefit of the School District and residents of the
City. The District gets to use the facility between
8:00 a.m. and 4:00 p.m. on school days and the
City has the right to use it at other times. When the
Districts wishes to use it at a time allocated to the
City, they require mutual consent of the City and
School District. It goes further and anticipates that,
at the beginning of the academic year, if the District
knows that it is going to need the facility in the
evening on a number of occasions, it can submit
a list to the City and get the City's concurrence
early in the year - so there are no scheduling com-
plications. He stated that these are the general
terms.
Mayor Fernekes asked City Attorney Mattas to
furnish Council with a copy of the Resolution and
his comments.
Councilwoman Teglia stated that the agreement
we are talking about, on the Spruce Gymnasium,
is separate from the JPA. It is a separate
agreement that was based on monies that were
accessed to improve that facility.
Mayor Fernekes clarified what he told the Chamber
of Commerce in a breakfast meeting and which was
wrongly quoted in the Independent Journal. He said
he spoke on the state of the City, on different pro-
jects that are being done, one of which is BART.
He stated he very clearly said Council's direction
was to underground the tracks not the station.
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Vice Mayor Yee stated he will be in Southern Cali-
fornia, October 23rd through the 25th, attending a
League of California Cities session and, as a mem-
ber representing the City, is allowed to vote on
resolutions. Therefore, he asked Council if there
were any resolutions on which they wanted him to
act. One deals with term limits for general law
cities and the League supports legislation to autho-
rize a General Law City an option to enact term
limits for members of City Council.
Discussion followed: if there is going to be a term
limit, every General Law City in the State should
have the same requirement; the idea of giving an
option creates more problems than it solves; what
are the options; the options are to have term limits
or not; the State is already governed by a law the
people voted in that says we only want you in there
for so many terms; we have regulated the terms of
our Commissioners; the opportunity will arise to
speak to the issue rather than oppose or approve; if
this is the will of the people go for it and state how
many terms.
Councilman Drago stated next year he is planning to
pursue Charter City status and is trying to convince
Council that's the way to go. Then the local com-
munity can decide how many terms or whatever they
would like for the status of their, elected officials.
He also said, if one of the resolutions has something
to do with Proposition 13 and general bonds, where
they are trying to get a majority vote instead of a
2/3rds vote, he is against that.
Discussion followed regarding residential care facili-
ties: State law mandates that cities have no juris-
diction over care facilities with 6 or fewer people;
there is a proposal to have a live-in owner at each of
these facilities; sounds like an indirect way to elimi-
nate the use; it's an unreasonable condition and
cannot be supported.
Councilwoman Teglia felt the League and Legisla-
ture should be discussing the one important thing
facing the State - the budget.. For the last five years
we, school districts and special districts have been
hit. The State is like a sponge, everything that exists
disappears. The monies we have been able to count
on are up for grabs. She told Vice Mayor Yee to
10/12/94
Page 14
AGENDA ACTION TAKEN
. 176
COMMUNITY FORUM
CONSENT CALENDAR
Motion to approve minutes of the Special Meeting of
8/29/94, Adjourned Special Meeting of 8/31/94,
Adjourned Special Meeting of 9/2/94, Special Meet-
ing of 9/2/94 and Special Meeting of 9/12/94.
2. Motion to confirm expense claims of 10/12/94. ,,g'O I.3
Resolution awarding construction contract to North
State Specialty Contracting, Inc. in the amount of
$364,825, as the lowest responsible bidder, for the
Aircraft Noise Insulation Project - Phase VIIIB. ~9,~
A RESOLUTION AUTHORIZING AND DIRECT-
lNG THE CITY MANAGER TO PREPARE AND
EXECUTE AN AGREEMENT FOR CONSTRUC-
TION SERVICES FOR THE AIRCRAFT NOISE
INSULATION PROJECT - PHASE VIIIB
Resolution approving Amendment No. 5 to the Joint
Powers Authority Establishing the City/County Asso-
ciation of Governments. 5 1 ~
A RESOLUTION AUTHORIZING AMENDMENT
NO. 5 TO THE JOINT POWERS AGREEMENT
ESTABLISHING THE CITY/COUNTY ASSOCIA-
TION OF GOVERNMENTS
RECESS:
RECALL TO ORDER:
PUBLIC HEARINGS
Public Hearing - V-94-322 (Adolfo Mora) - Appeal of
Planning Commission Decision to deny a variance to
allow a detached garage structure (construction almost
complete) with less than the required 20 foot drive-
way apron, encroachments into the side and rear 5 0
COMMUNITY FORUM
carry that message.
CONSENT CALENDAR
Approved.
Approved in the amount of $1,841,859.46.
Deleted from the Agenda under Agenda Review.
RESOLUTION NO. 130-94
M/S Penna/Drago - To approve the Consent Calen-
dar with the exception of Item No. 3 and with
Councilwoman Teglia abstaining on the minutes of
9/12/94, because she was absent from the meeting.
Carried by Unanimous Voice Vote.
Mayor Fernekes declared a recess at 8:40 p.m.
Mayor Fernekes recalled the meeting to order at
8:57 p.m., all Council was present.
PUBLlC HEARINGS
Item continued to 10/26/94.
10/12/94
Page 15
AGENDA ACTION TAKEN
177
PUBLIC HEARINGS
5. Appeal - Continued.
setbacks and exceeding the maximum height and size
requirements for an accessory structure in the R-2
Medium Density Residential Zone District at 726
Grand Avenue; Conduct Public Hearing; Motion to
deny the appeal and uphold the decision of the Plan-
ning Commission.
ADMINISTRATIVE BUSINESS:
Proposed amendment to the business license ordi-
nance for junk collectors with direction requested.
577
PUBLIC HEARINGS
ADMINISTRATIVE BUSINESS:
Finance Director Margolis gave the staff report: on
the agenda tonight, for public comment, is the pro-
posed amendment to the Business License Ordinance
dealing with junk collectors; no formal change is
requested tonight the intent is to collect comment
and make desired changes. The recommendation is
an amendment to the Business License Ordinance in
the section dealing with junk collectors. We cur-
rently have a $50.00 annual fee and are proposing
this be changed to 7% of gross receipts. About a
year ago Council indicated a desire to sort out some
of the other issues relating to junk collectors and the
ordinance that generally regulates them. Council
took that action and, during budget deliberations,
this proposed amendment to the ordinance was
included again. Council directed staff to go forward
and propose the legislation.
She stated the budget assumes receipt of about
$50,000 annually from this tax, which is a general
estimate, because there is no information on gross
receipts of these operations. Once imposed, firms
would be subject to audit in terms of compliance and
then we will have a better sense of revenue. This
meeting is in compliance with changes put into the
Brown Act, which require various publications, this
public meeting and a public hearing to take place 45
days after start of advertising. We are working to
get changes in the business license effective prior to
January 1st, as that is our collection time for busi-
ness licenses, because doing something that becomes
effective after that puts off implementation for about
a year. We received a letter from the SSF Scaven-
ger Co. with some questions and the applicability of
the definition in the ordinance to the revised ordi-
nance. The City Attorney did notice some discrep-
ancies and we will modify the working so they are
just the same.
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~ENDA ACTION TAKEN
ADMINISTRATIVE BUSINESS
10/12/94
Page 17
178
ADMINISTRATIVE BUSINESS
Councilwoman Teglia asked how many meetings
have been held with the various junk collectors in
our community. Director of Finance Margolis
stated they had not held any. Councilwoman Teglia
asked why not, because, when we deal with any-
thing to do with the SSF Scavenger Co., we have a
number of meetings with them to work things out
before getting to Council. She wondered why this
same approach had not been taken for the indepen-
dents, as there are a number of companies and so
many unanswered questions about their operations.
She thought the intent of the Brown Act is to work
with people who are going to be affected in a
meaningful way.
Director of Finance Margolis stated that we could do
that, however, they were responding to the direction
from the budget to proceed with the ordinance and
the intent of the meeting tonight was to give every-
one a chance to comment. They did mail notices of
intent to all of the people registered under this busi-
ness license and invited people to call in advance
and talk to her.
Discussion followed: need to find out how this
affects the industry, how they operate and what is
reasonable; we have so little information about the
industry; have another meeting on this matter; the
City Manager, in consultation with the City Attor-
ney, will respond in writing to the letter from the
SSF Scavenger Co. and give a copy to Council and
the junk collectors; everyone should have the same
information for the next meeting; the primary issue
is whether 7 % is proper; be more specific in the
ordinance on how we deal with, measure and regu-
late revenue from the sale of material and from
service charges; legally spell out any anticipated
changes, make the changes in the draft - with the
revisions shown, go to the affected people then
come to Council with hopefully concurrence or
something Council can act upon; Finance Director
Margolis to set meeting and inform recyclers and
SSF Scavenger Co. of time and date; how will
antique dealers be handled, as it appears they could
be in the same category; antique dealers are dealt
with now, these are not new categories; City Attor-
ney Mattas should address legal question with regard
to antique dealers and second hand stores; how do
we find out a company's revenue, how are we going
^GEND^ ^CTXON r^KE 179
ADMINISTRATIVE BUSINESS
Proposed amendment to the business license ordi-
nance to add a tax on rental car storage with direction
requested. ,.~'~'7'7
ADMINISTRATIVE BUSINESS
to gauge it and how will we know they are reporting
the proper revenue; we can do an audit for the SSF
Scavenger Co.; are we going to audit junk collectors
and who will pay for it; the cost of an audit could
be more than what we receive in revenue; audits on
hotels are based on a contingent contract but hotels
do not pay for the audit; if license tax is 7% of
gross receipts of sales charges, fees or revenue
collected, when a recyclable company pays a person
for their material how does this fall into the formu-
la; this was one question raised by the SSF Scaven-
ger Co. in their letter and staff will have to address
this; when we meet with SSF Scavengers we don't
include other recyclers in those meetings; Royal
Salvage is the recycling or junk arm of the SSF
Scavenger Co. and they should be present in the
next meeting; only companies affected by the 7%,
or whatever percentage is decided upon, and whose
books or whatever other available records might be
audited should be present at the next meeting to
keep it a level playing field; set the meeting for the
not too distant future.
Mayor Fernekes stated he wanted the same process
followed for this item as the previous item. He had
a meeting with Mr. Poletti and Director of Finance
Margolis and is trying to find what is fair and equi-
table. He asked a meeting be set for next week, so
they can get together and try to come to a solution
and then come back to Council.
Councilwoman Teglia related, on the topic of fees,
we are doing this because of the last two budget
years. It appears we now have many more estab-
lishments that charge admission. She wanted staff to
research this and let Council know what the possibil-
ities are.
Acting City Manager Mattel said she and Director
of Finance Margolis discussed this that day, she
asked her to do some research on it and they will
get back to Council as soon as possible.
Mr. Mitch Karass, Property Manager for Budget
Rent-A-Car, 177 So. Airport Blvd., stated this item
was brought to his attention by Lou and Rich
Poletti. Budget has been located in SSF for the last
28 years. During that time they have employed
hundreds of people in well paying jobs. They have
10/12/94
Page 18
AGENDA ACTION TAKEN
ADMINISTRATIVE BUSINESS
10/12/94
Page 19
180
ADMINISTRATIVE BUSINESS
contracted with various contractors based in SSF,
such as Accutite Environmental, United Signs and
numerous body shops. Budget has conducted itself
as a corporate entity and benefits the commerce of
SSF. Economic times have been difficult during the
last four years and this new tax is an additional,
economic liability that his company cannot absorb.
Councilwoman Teglia stated they currently have a
tax on their activities, every time they rent a car the
City gets a tax. She didn't know if this ordinance
affects them, it addresses storage facilities - private-
ly owned, providing parking and/or storage for any
rental cars, trucks or vans that are leased or rented
with the point of sale occurring outside the limits of
SSF.
Discussion followed: Budget does store vehicles and
have work done on them; SSF is their hub for nu-
merous locations within the Bay Area; this would be
a second hit on their operation, an additional tax; the
tax would only be on the storage area; these vehicles
are not generating anything for SSF because they are
not rented out of here; this is an additional tax on
Budget and Avis, as these are the only two compa-
nies located in SSF that store cars as well as work
on cars; Budget employs people and uses contractors
located in SSF; if you rent, lease or sell vehicles
you would not have this tax; Budget is using the
facilities to store vehicles and leasing somewhere
else, so that tax goes to some other city; SSF does
benefit because Budget hires employees here and
they spend money here and Budget does business
with contractors based in SSF; they were asked for
documentation of the SSF businesses; documentation
can be found throughout the City; staff should orga-
nize meetings with this industry also; in what other
cities in the Bay Area do they have a similar opera-
tion; they have an administrative office here, which
is distinct from any of the other cities, they repair
vehicles out of Oakland, some out of San Jose, Mt.
View is trucks and in a few other locations; they do
store vehicles elsewhere and were not aware of a
similar tax anywhere else.
Councilwoman Teglia wanted to know, in an opera-
tion like theirs, what percentage of their business is
taxable, that generates an income for SSF, as it
sounds like a large portion of their business does.
AGENDA ACTION TAKEN
ADMINISTRATIVE BUSINESS
10/12/94
Page 20
181
ADMINISTRATIVE BUSINESS
Discussion followed: Budget only rents trucks out
of SSF; they repair and store more than trucks,
other vehicles as well; the percentage comes into
focus of vehicle trips per day; if you have 10 acres
and you rent 10 vehicles obviously something else is
going on there; perhaps this is the preponderance of
the activity and we should look at that; we are end-
ing up the storage or parking lot for other cities and
we are not getting our fair share; Budget spent
$300,000 - $400,000 on a job they did with Accutite
last year and the City reaped from that; because
Budget is located here they give back by giving
business to vendors in SSF and other cities do not
have the benefit of that; there is no guarantee they
will continue to do business with vendors in SSF;
this is a very focused picture called generating reve-
nues into the City to provide services, because of
the mess in Sacramento - last year they took two
million, this year one million and they're already
talking about another million; the State is forcing
local governments to tax locally; Budget is doing
more with less as well and, if an additional tax is
put on them, it means more layoffs etc; Budget is at
all major airports.
Councilman Penna stated they may not be paying an
employee tax here, we may be taking it in some
other form, which may not be as great as they are
paying in other cities. They are paying a tax for the
use, for services required and for vehicles going
over streets. Their operation requires more police
patrolling and other services that need to be paid.
We may be offering a better bargain than other
cities, because you have to look at the overall tax
you are paying.
Discussion followed: how many cars do they store
at SFO that are not rented, that they do not have a
contract on and are just sitting there waiting; are the
only cars at the SSF site that are not being rented
out just there for repair; majority of vehicles are
there on a turn back (going back to point of sale for
a buy back program from the manufacturer) or for
repair; if you store vehicles in Budget's business
they don't make money; they hold vehicles in dif-
ferent areas - for an hour, two or three; how do
you determine what is being stored; Budget said
they were not notified of this meeting; City Clerk
mailed a notice to Budget in SSF and to everyone in
AGENDA ACTION TAKEN
ADMINISTRATIVE BUSINESS
10/12/94
Page 21
ADMINISTRATIVE BUSINESS
the community with this type of activity; business
license list was used to ascertain the names and a
notice was even sent to some who had no business
license; is there a written agreement they will use
local vendors or do they go out to lowest bid; gen-
erally they go for lowest bid, many times they have
pre-arrangements with body shops, they use Accutite
because they are local, accessible and they know
their work and United Signs does almost all of their
signs; perhaps they shouldn't fall under this ordi-
nance; how do we limit companies who have storage
cars they rent; maybe put on a different tax, a tax at
the time the rental takes place - but this tax already
exists; could a fee come to the City on turn backs,
because the City was host to them; Budget and other
companies have no control on this, the manufacturer
takes or buys the cars back at a certain period in
time; the lawyers who worked that out did so to
evade tax; we need to have people with creative
minds figure out how to split that so we can make
money too; Hertz sells in Millbrae but Hertz sells to
the general public, Budget does not in this area; find
out if Budget sells in other areas.
Mr. Paul Poletti, 421 Raymundo Dr., Woodside,
stated what terrifies him about any particular busi-
ness tax or license is that you single out an individ-
ual. He has 165,000 sq. ft. on Gateway Avenue and
can store four to nine hundred cars there at $50.00
per car. This amounts to tens of thousands of dol-
lars by January 1st. His property is used for storage
of cars and right now it is storage of rental cars and
this tax singles him out.
Discussion followed: if we get to a point where we
can agree on what has to be levied there are ways of
doing it; it might have to be up front in the year but
it may be based on last year; how can it be charged
in advance unless there is good data; a committee
needs to consider this and the ways of dealing with
it.
Mr. Paul Poletti stated the whole idea of being in
business is to make a profit. The 165,000 sq. ft.
that is now a parking lot and has hundreds of cars
on it is a result of years and years of negotiation and
putting money at risk. The property was vacant for
12 years. Hundreds of thousands of dollars were
tied up for that time, they went through the permit
AGENDA ACTION TAKEN
ADMINISTRATIVE BUSINESS
10/12/94
Page 22
ADMINISTRATIVE BUSINESS
process, they were going to put a street through
there, so it was condemned, then another several
years of delay and they bought the property Budget
is on now. They cancelled out, probably because of
this, but he still has Avis. If you are going to raise
a tax, the fairest and most equitable tax is a general
sales tax. How would you like to put money to risk
and have somebody come in at these numbers - this
is about 37 % of his net. He is not the operator but
the person who needs the business license, because
he owns a facility that rents to Budget or Avis.
Discussion followed: is the tax applied to the land-
lord or the operator; there is some property leased
for direct operation and storage by others and, in
that case, the others - Budget or Avis, would be
responsible; to the extent a person owns property
and says to these companies you can store your cars
here, they are responsible - they are the ones using
the property for storage; it should be looked at from
the standpoint of whom the owner leased their land
to for storage; we already have a tax for airport
parking and the people who pay the tax are individ-
ual users; the user should pay the tax not the prop-
erty owner; refer this to the committee and Director
of Finance Margolis is to be in touch with all opera-
tors; how many times a day does a space turn over,
what's an equitable tax based on that and pass it to
the user; every time a tax or business license of this
scale is imposed you knock people out.
Mr. Dave Longinotti, Hanson, Bridges, Marcus &
Rudy - Attorneys, 333 Market St., San Francisco,
spoke on behalf of Avis. He thanked Council for
the work on the East of 101 Area Plan, which per-
mitted Avis to develop a project there, including
construction, development and employment of peo-
ple from the community - a West Coast Regional
Center for maintenance. The new tax seems specifi-
cally designed to affect Avis. As proposed in the
staff report, the tax would have a significant, ad-
verse affect on Avis' existing operations on Gate-
way. Avis has been doing business in SSF on Gate-
way for some time. They estimate, based on the
numbers used, taxes in the first year, payable in one
lump sum, would be $37,500. This new tax will
have an affect on the economic feasibility of Avis
going forward with any proposed development on
the Haskins property. They calculated, based on the
AGENDA ACTION TAKEN
184
ADMINISTRATIVE BUSINESS
ADMINISTRATIVE BUSINESS
proposed tax, taxes would be over $150,000, some-
where between there and $175,000. He stated he
had not spoken with his client, he was a last minute
fill in, but could not say Avis was prepared to pro-
ceed based on any additional tax. He didn't think
that was part of the bargain for them, certainly not a
tax that is going to increase their cost in a single
year by this much.
Discussion followed: have the committee break out
how one company ends up paying over $150,000 a
year; the proposed ordinance refers to 200 sq. ft. of
space useable for storage and the tendency is to take
the site and divide by 200; City has to be much
clearer on how the ordinance applies; if the tax
precludes Avis from going forward, the City will
lose money on the deal; legal concerns regarding
discriminatory application in terms of a particular
business; if Budget is excluded, it is only a tax on
Avis, unless others who store cars on maintenance
facilities or garages are taxed too; is voter approval
required because of Proposition 62; Avis makes the
same case as Budget - they need to move their vehi-
cles to show a profit; no more than 40% of the time
are vehicles stored for any significant period; base
the tax on trips; not familiar with any tax based on
trips; there is a cost involved in having these compa-
nies here; no community is going to want that kind
of traffic generated without getting a fair share of
taxes; Avis will be paying real property taxes, pay-
roll taxes and any other taxes SSF currently levies;
Avis wants to be treated like everyone else; if we
were to treat them like everyone else, they should be
looked at as airport users and pay a $7.00.tax per
vehicle, per day; the amount and method of impos-
ing the tax certainly needs to be reviewed; original
thought behind tax was this is a type of operation
that does not currently fall under the business license
ordinance; substantial land is being used that does
not pay taxes in the way other businesses operating
within the City do and the City has substantial im-
pacts in some cases; there is a need to establish
some equity and keep the original intent; the method
and amount need to be determined, then come back
to Council; the Avis project may not have moved as
swiftly as everyone had wished but it has generated
a tremendous amount of good will in the communi-
ty; that issue is quite separate from this tax issue;
there is concern about valuable land, close to an
10/12/94
Page 23
AGENDA ACTION TAKEN
ADMINISTRATIVE BUSINESS
Motion to accept the recommendation of the Parking
Place Commission for the installation of 24 minute
parking spaces on Grand Avenue and direct the Com-
mission to proceed with implementation. ~' ! ~,~ [
ADMINISTRATIVE BUSINESS
international airport, which is even more important
now because of what has taken place in finances in
the City and the State; just because a facility can
hold a certain number of cars does not mean there
are that many cars there; what the committee needs
to address is what is the space used for and what is
not used - the space shouldn't be taxed if it is not
used.
Councilwoman Teglia related she was approached by
a businessman who had to close a business, for
financial reasons, in SSF. He closed it almost im-
mediately after our deadline for notifying the County
about property taxes. So, he is stuck with a bill for
this whole year, with no use taking place. If a new
business comes in and operates but starts a business
a day after we give notice to the County, they get a
full year running. But, for someone who had to
close their business, this is a tremendous penalty.
The problem seems to be the way our ordinance was
written. She asked staff to bring some information
back to Council for review so they can be more
educated on the issue.
Discussion followed: this particular tax is a sewer
service charge assessed to the property, based on
prior year's use; it really has nothing to do with the
County, they are only the collecting agency; we can
change the policy and give the person back money;
it could be changed but the ordinance would have to
be amended; the charge is based on usage from the
prior year; staff to come back to Council with more
information.
Director of Finance Margolis gave the staff report.
Council asked the Commission to review the issue of
expanding the use of 24 minutes spaces on Grand
Avenue and to prepare recommendations as to where
they could be located and how many there might be.
This was done over several months, notices were
sent to all businesses and residential occupants with-
in the District, asking for input, but we only re-
ceived one response. Spaces need to be clustered
within each block, so they are more identifiable to
people looking for them. This might help prevent
accidents or other problems, because, when people
start to pull into a space and notice it is short term,
they back out right away. The Police Department
also felt it would be easier for their people to en-
10/12/94
Page 24
AGENDA ACTION TAKEN
ADMINISTRATIVE BUSINESS
ITEMS FROM COUNCIL
GOOD AND WELFARE
10/12/94
Page 25
ADMINISTRATIVE BUSINESS
force. These spaces should be located near busi-
nesses that seems to have more short term custom-
ers. The potential areas were reviewed and a rec-
ommendation was made for locations on the 400 and
300 blocks of Grand Avenue. Total number of
spaces to be converted is 15. The Commission did
not see much demand in the 200 block. They found
there were already existing green zones or short
term spaces elsewhere on perpendicular streets.
There is not currently a provision that would allow
imposing the same rate for 24 minute zones as cur-
rently exist on Grand Avenue and the Commission's
intent is to make one.
M/S Yee/Drago - To accept the recommendation of
the Parking Place Commission for the installation of
24 minute parking spaces on Grand Avenue.
Councilwoman Teglia stated they should take one
step before going forward with this. Any time they
do anything downtown with the parking there is no
input, they make the change and all hell breaks
loose. She wanted to insert something that says
before we actually do this, before we order the new
meters, which will be an expense, we take a 30 day
period and have the Commission do whatever they
are going to do to designate their zones, we notify
every business owner and operator on Grand Ave-
nue, both in English and Spanish, that we are mak-
ing the changes, show them a map where the zones
are going to be and bring back to Council whatever
responses come back to the City. If anybody comes
back later we can feel comfortable we told them it
would happen.
The motion was amended to include these provi-
sions.
Carried by unanimous voice vote.
ITEMS FROM COUNCIL
There were no items from Council.
GOOD AND WELFARE
No one chose to speak.
~ENDA ACTION TAKEN
187
CLOSED SESSION
0. Closed Session, pursuant to GC 54957, personnel
matters on the recruitment of the City Manager; and
pursuant to GC 54956.8, regarding negotiations with
Jesus Armas for sale of 368 Conmur Street and the
instructions to the negotiator will concern price, terms
of payment and/or both.
Mayor Fernekes left the Closed Session at 11:20 p.m.
RECALL TO ORDER:
ADJOURNMENT:
CLOSED SESSION
Council adjourned to a Closed Session at 10:10 p.m.
to discuss the items noticed.
Mayor Fernekes left the Closed Session at 11:20
p.m. and did not return to the meeting.
Mayor Pro Tern Yee recalled the meeting to order at
11:58 p.m., all Council was present, no action was
taken, direction was given.
M/S Drago/Penna - To adjourn the meeting.
Carried by unanimous voice vote.
Time of adjournment was 11:59 p.m.
RESPECTFULLY SUBMITTED,
City of South San Francisco
APPROVED.
City,ribf Sout: S~an F~ra'n~c
Jos~rnekes,
The entries of this Council meeting show the action taken by the City Council to dispose of an item. Oral communica-
tions, 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.
10/12/94
Page 26