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HomeMy WebLinkAboutMinutes 1995-04-12 Mayor Robert Yee Council: Jack Drago Joseph A. Fernekes - -John R. Penna Roberta Cerri Teglia ~_PE_C!AL M~TING MINUTE__~ City Council Municipal Services Building Community Room April 12, 1995 393 CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO APRIL 12, 1995 NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of California, that the City Council of the City of South San Francisco will hold a Special Meeting on Wednesday, the 12th day of April 1995, at 7:10 p.m. in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California. Purpose of the meeting: 1. Interview and reappointment of Housing Commissioner Claar by the Mayor with the concurrence of Council. Dated: CALL TO ORDER: ROLL CALL: March 3, 1995 AGENDA (Cassette No. 1) Interview and reappointment of Housing Commis- sioner Claar by the Mayor with the concurrence of Council. City Clerk City of South San Francisco ACTIQN TAKEN 7:15 p.m. Mayor Yee presiding. Council Present: Fernekes, Penna, Teglia and Yee. Council Absent: Drago. City Clerk Battaya stated Councilman Drago was unable to attend tonight's meeting due to illness. Councilwoman Teglia stated she would like to con- duct the interview this evening, since she asked for it, and would like to hold off on the reappointment until the full Council is present. Concurrence of Council - To hold off on any ap- pointments until the full Council is present. 4/12/95 Page 1 AGENDA ACTION TAX_E_N Interview and reappointment of Housing Commission- er Claar - Continued. 39'4 Councilwoman Teglia related: Council has a policy that any member of Council can ask to interview a City Commissioner prior to reappointment if they wish to be reappointed to a second term; she has a great deal of respect for Mr. Claar on the Housing Authority and has no problem and, quite frankly, fully intends to support his return to that Commis- sion; she has a concern and wishes there were an- other way of dealing with it but unfortunately we are precluded by law to do it other than in an open ses- sion; as a member of one of our Boards Mr. Claar is a City official and has done a good job; this makes Mr. Claar someone of influence in the com- munity, someone who represents the City; this City frequently is subject to rumors and a lot of us who have lived here a long time tend to disregard them and move on, but one has been somewhat persistent; it has to do with, and is attributed back directly to you in terms of statements; the rumor says this, as you know we have some applications before Council that may or may not become controversial and you are totally entitled to whatever opinion on those proposals; however, the rumor goes that there are outside gaming interests who, for their own private profit motive, are interested in motivating someone to seek - are interested in financing efforts in our City to influence the Council, to intimidate the Council, to stir as much dissension as possible and more specifically to conduct a financing petition drive in our City to make sure that in fact such a proposal in S.S.F. is not given serious consider- ation; the way this goes supposedly, Mr. Claar was approached to head up such a drive and asked if this was true or false. Commissioner Claar stated he was not approached by anyone. He thought he was brought here tonight for his 75th birthday. He related the following about the Housing Author- ity: this is a good Commission; we have a very fine person handling all of this and has followed through on all of our requests; she is excellent to work with and it is a good Board; there is an iron hand on the drug problem and we make sure the buildings are well kept; and will be happy to be reappointed. Councilwoman Teglia stated the Council gets very busy with many things but always knows when things are well because they are quiet. She has not heard any complaints from the tenants or the neigh- 4/12/95 Page 2 A~DA A£!!~N TAKEN 395 1. Interview and reappointment of Housing Commission- er Claar - Continued. ADJOURNMENT: bors, but in the past there were concerns expressed to them, that has not been the case for some time and felt they should all be complemented. M/S Teglia/Fernekes - To adjourn the meeting. Carried by unanimous voice vote. Time of adjournment was 7:20 p.m. RESPECTFULLY SUBMITTED, APPROVED. Barbara A. Battaya, City Clerk City of South San Francisco Robert Yee~ a~yor City of Sot-h San Francisco The entries of this Council meeting show the action taken by the City CouncL 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. 4/12/95 Page 3 Mayor Robert Yee Council: lack Drago loseph A. Femekes 'John R. Penna ,Roberta Cerri Teglia City Council Municipal Services Building Community Room April 12, 1995 7oL , CALL TO ORDER: ROLL CALL: AGENDA (Cassette No. 1) PLEDGE OF ALLEGIANCE: INVOCATION: ..... ~ESENTATIONS . reclamation - Fair Housing Month Proclamation - Earthquake Preparedness Month AGENDA REVIEW Councilman Femekes Requested: - Cominue Item No. 14 to the next meeting. Councilwoman Teglia Requested: -'-Continue Item No. 12 to the next meeting for a full Gte of Council. AEI!O IAKEH 7:35 p.m. Mayor Yee presiding. Council Present: Femekes, Perma, Teglia and Yee. Council Absent: Drago. City Clerk Battaya stated that Councilman Drago is ill and unable to attend tonight's meeting. The Pledge was recited. Rev. Baltodano, Mission de Espirito Santo, gave the invocation. PRESENTATIONS City Manager Wilson stated the Proclamation will be mailed as no one was there to receive it. Mayor Yee read the Proclamation aloud presented it to Fire Chief Stark. AGENDA REVIEW City Manager Wilson stated he did not have changes to the Agenda. Mayor Yee stated he had. a speaker's card on the item. MIS Fernekesfreglia - To continue Item 14 to the 4/26/95 meeting. Carried by unanimous voice vote. So ordered. 4/12/95 Page I .ORAL COMMUNICATIONS 4/12/95 Pa~e 2 ORAL COMMUNICATIONS Ms. Pat Burke, 1700 El Camino Real, thanked Council for giving time to the transit people to speak at the last meeting and expressed her appreciation to City Manager Wilson and City Engineer Town for being with the City. She asked the Council to consider, before any ground is broken in S.S.F., trying to get a memo- randum of understanding so that we know where BART is funded from at what time funded. Because under Ice Tea it is conceivable there will be a large amount of money going to other projects and BART will not get off the ground and it is imperative that you have something in writing for that is the main point. She got a phone call from the Metropolitan Com- mission in Oakland, as she had written them a letter which made sense to them. The man said she caused a stir. She said that those who have lived on the BART tracks since 1991 are tired of being ha- rassed and having their health and properties affect- ed - because a trailer was worth half of its value. She circulated a flyer from a new organization on Mission Road saying to wait until the information is in before selling, because people are telling people they will be gone because of BART. She stated it has been painful and it is important that all of you become fully involved and know where you are going, because a downtown extension would be less costly. Mayor Yee stated at the C/CAG meeting there was concern about the funding. SamTrans is going to make a decision, maybe April 26th, and maybe the City Manager can inform Ms. Burke. Councilwoman Teglia stated she was not sure she understood why the trailers are worth half their value and she was not sure how BART was going through for they are also burdened with relocation costs of the trailer people. She recognizes there will be disruption, but there is social retribution in law. Ms. Burke stated a trailer was sold for $10,000 and it was purchased three years ago for $30,000. Councilman Penna related trailer parks are pwtected by State law and government agencies cannot just AG~NmA ORAL COMMUNICATIONS COMMUNITY FORUM 4/12/95 Palte 3 ACTION TAKEN 3 ORAL COMMUNICATIONS come in and remove anything without the agreement from the park and the people who live there. Ms. Burke stated the people do not know what is going on, however, perhaps she could write a letter to the Editor. Councilwoman Teglia suggested staff put together a mailing to that area as to the rights afforded trailer park people for informational purposes as a public service. Discussion followed: the trailer people may have the law, but the location next to the tracks is less desirable than the fault; staff can summarize Title 25; a cut and fill would be underground; commun- ication from Mr. Spinelli to Council was interesting on Washington D.C. news on BART; BART Alter- native 6 is dead and does not have a chance, which disturbs Councilwoman Teglia; she wants staff to ascertain the veracity of Mr. Spinelli's communica- tion on the Washington view of the CalTrain issue and BART funding, because that funding has not been nailed down and they should not come into S.S.F. without the funding; etc. Mr. Frank Vieira, 315 Spruce Ave., thanked the Council for his reappointment to the Historic Pres- ervation Commission and was in favor of the ex- pansion of the Commission, if that is what Council chooses to do. COMMUNITY FORUM Councilman Fernekes stated he was talking to the City Manager the other day on the different concepts of the greater downtown area and he wants to for- mulate a concept or plan to incorporate the use of redevelopment, as well as CDBG and the Parking District funds. Mayor Yee suggested incorporating it into a future study session item. City Manager Wilson stated he had been in conm~ with the County on possible relocation of facilities on Mission Road and they expressed an interest in exploring the capability of this vision. COMMUNITY FORUM CONSENT CALENDAR Motion to approve Minutes of the Regular Meeting of 3/8/95, Special Meeting of 3/22/95 and Regular Meeting of 3/22/95. 2. Motion to confirm expense claims of 4112/95. 3. Resolution approving an application for funding from the County HOME Program. A RESOLUTION AUTHORIZING SUBMITTAL OF AN APPLICATION TO THE SAN MATEO COUN- TY CONSORTIUM FOR HOME PROGRAM FUNDING · . Resolution authorizing an agreement with the State of California for the Street Resurfacing Program. A RESOLUTION AUTHORIZING AN AGREE- lVlENT WITH TI-IE STATE OF CALIFORNIA FOR THE STREET RESURFACING PROGRAM Resolution of award of engineering design contract to Whitley, Burchett and Assoc., Inc. for the failed sWrm drain near Country Club Drive and El Camino Real. A RESOLUTION OF AWARD OF CONTRACT TO PROVIDE ENGINEERING SERVICES FOR RE- PLACEMENT OF STORM DRAIN NEAR COUNTRY CLUB DRIVE AND EL CAMINO Resolution of award of engineering design contract to Whitley, Burchett and Assoc., Inc. for the evaluation of the Alida Way storm water culvert. Informational item to provide an overview of the new federal requirement to produce a Consolidated Hous- ing and Community Development Plan. COMMUNITY FORUM Councilman Fernekes stated that will be part of the · discussions for the downtown and there are many different phases Council has to make come together. City Manager Wilson stated he will coordinate a date with the Council for a meeting. CONSENT CALENDAR Approved. Approved in the amount of $1,523,670.34. City Attorney Mattas stated the resolution will be changed to read $250,000. RESOLUTION NO. 17-95 RESOLUTION NO. 18-95 Removed from the Consent Calendar for discussion by Councilman Fernekes. Removed from the Consent Calend~ for discussion by Councilman Fernekes. Informational only. 4/12/95 PaRe 4 CONSENT CALENDAR Motion to adopt an ordinance reclassifying certain Genentech properties. AN ORDINANCE OF THE CITY OF SOUTH SAN FRANCISCO ADDING CHAPTER 20.39, THE 'RESEARCH AND DEVELOPMENT OVERLAY DISTRICt REGULATIONS' TO THE SOUTH SAN FRANCISCO MUNICIPAL CODE Motion to adopt an ordinance adding Genentech research and redevelopment overlay district and amending the Zoning Map. AN ORDINANCE OF THE CITY OF SOUTH SAN FRANCISCO ADDING CHAPTER 20.40, THE "GENENTECH RESEARCH AND REDEVELOP- MENT OVERLAY DISTRICt~ TO THE SOUTH SAN FRANCISCO MUNICIPAL CODE AND AP- PROVING AN AMENDMENT TO THE ZONING MAP OF THE CITY OF SOUTH SAN FRANCIS- CO RECLASSIFYING CERTAIN GENENTECH PROPERTIES FROM PLANNED INDUSTRIAL (P- I) TO PLANNED INDUSTRIAL/RESEARCH AND DEVELOPMENT (P-I/GR&D) 10. Motion to adopt an ordinance on conditionally per- mired land uses in the M-I and PI Zoning Districts. AN ORDINANCE OF THE SOUTH SAN FRAN- CISCO CITY COUNCIL AMENDING SUBSEC- TION (g) OF SECTIONS 20.30.040 AND 20.32.070 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE RELATED TO CONDITIONALLY PER- MITRED LAND USES IN THE M-1 AND PI ZONING DISTRICTS 11. Motion to adopt an ordinance relating to meetings of the South San Francisco Conference Center Authori- ty. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO AMENDING CHAPTER 2.78 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE RELATING TO THE MEETINGS OF THE SOUTH SAN FRAN- CISCO CONFERENCE CENTER AUTHORITY 4/12/95 Pa~e 5 CONSENT CALENDAR ORDINANCE NO. 1162-95 ORDINANCE NO. 1163-95 ORDINANCE NO. 1164-95 ORDINANCE NO. 1165-95 M/S Fernekes/Penna - To approve the Consent Calendar with the exception of Items No. 5 and 6 · (~ONSENT CALENDAR Resolution of award of engineering design contract to Whitley, Burchett and Assoc., Inc. for the failed storm drain near Country Club Drive and El Camino Real. A RESOLUTION OF AWARD OF CONTRACT TO PROVIDE ENGINEERING SERVICES FOR RE- PLACEMENT OF STORM DRAIN NEAR COUNTRY CLUB DRIVE AND EL CAMINO Resolution of award of engineering design contract to Whitley, Burchett and Assoc., Inc. for the evaluation of the Alida Way Storm water culvert. A RESOLUTION OF AWARD OF CONTRACT FOR EVALUATION OF THE ALIDA WAY STORM WATER CULVERT CONSENT CALENDAR and the change on Item No. 3. Carried by unanimous voice vote. Councilman Fernekes stated he had discussions with residents who have been concerned over this issue since 1979, and the storm drain agreement says the final two units were not to be done until the system connects to the other end of the pipe for there is still the Avalon creek that floods. This will create a problem in Avalon unless the downstream pipes are fixed, as they did last winter, and that raises a con- cern that the last units were not to be done until the downspots are finished. City Manager Wilson stated the idea of the blocked passage is being addressed in the plan by a concrete swale that will handle the flow. There is a greater issue. This is part of a drainage system that has extensive work at Colma Creek. So, in fairness, the problem will not be corrected until the whole system is upgraded. Councilman Fernekes stated he was not opposed to either of these items, but wanted information on the down stream, and questioned why these units are being started when the downstream has not be done. Mayor Yee stated, as he understood it, Items 5 and 6 are asking the consultant to go ahead and prepare plans for the downstream so we could move ahead. He stated the storm drain lines adjacent to the subdi- vision have to be installed by July of this year. He did not feel Councilman Fernekes should be opposed to this because it is part of tho subdivision improve- ments. Councilman Fernekes stated that was pan of the agreement to the homeowners. Mayor Yee stated that is item No. 5. Councilwoman Teglia related: we don't want to lose the money for the two additional homes, but they have to grade the lots and the botwm of Avalon could get flooded; much of the area has been filled in and the developer wants to put in the 66' pipe; so, the problem is when there isn't any holding pond the water will go over the surface and the swale and 4/12/95 Page 6 Resolutions - Continued. 4/12/95 Page 7 that crosses Alida and that is where her concern lies; there is a collapsed pipe, a corrugated pipe, that has to be replaced that has to go in, but in doing this we are increasing the pipes and causing a problem; the whole box culvert is undersized and that will cost :!;3 million to do; there is concern upstream that, as you do this, it will cause a problem; the 66' pipe is for a 25 year storm and now it is necessary for the water to travel over the surface - it's backing up and going to Alida and down across Ponderosa; the Council has to do this one now, we have to build a bridge; we need to connect the bridge to the other project waiting downstream; this has been happening for twenty years and now we don't have the commit- ment but what does it look like to generate, such as putting in a culvert in Francisco Terrace to allow this to flow as it should. Mayor Yee asked if Item No. 6 would answer some of those questions. Interim City Engineer Town stated it is the intent to study that box culvert .to see if we need the 39" pipe that was identified in the report in 1991 and, with the increase of capacity of the 39", they said that would pass the storm waters in a 25 year flood. Mayor Yen stated the problem is not the 39" pipe for that is above the 66" pipe. What we are talking about is the portion of Saint Veronica's that is down stream from the 66" pipe to El Camino. Discussion followed: on the various size pipes going from above the area to El Camino; the prob- lem is caused by the City doing nothing about the culvert in Francisco Terrace; Mayor Yen felt the problem was a matter of degree of a ten, twenty or 10o year storm; the report says it is not adequate even though it is supposed to be designed for a 25 year storm; Councilwoman Teglia was prepared to move on Items 5 and 6 but was concerned that this does not speak to what happens downstream; the definition of a swale; could have a report identify the inadequacies of the downstream; staff can iden- tify what storm event would cause the water to come OUt of the backup and into the streets; staff must identify the existing capacity for the storm; the replacement pipe will increase the capacity and staff will know the flow and will analyze downstream and the rest of the pipes in terms of capacity; that will answer Councilwoman Teglia's concerns on what and 6. Resolutions - Continued. ADMINISTRATIVE BUSINESS 12. Status report on the appointments to the Parks and Recreation Commission. happens to Francisco Terrace, Ponderosa and Alida and more importantly there are people concerned about what happens to the end of the stub at Avalon Drive; as the water backs up then the water pops up from the manhole and from the swale it goes to Alida; Interim City Engineer Town stated he would get the information for the next Council meeting; City Manager stated the information would be for- warded to Council when received; when can the City do the improvements; it would be addressed in the capital improvement budget, however, it is a matter of priorities; could finish the plans and go out to bid; the subdivider is obligated to finish by July; the resolution should have additional information related to the work to be done; etc. M/S Fernekes/Teglia - To adopt the Resolution for replacement of storm drain near Country Club Drive and El Camino Real. RESOLUTION NO. 19-95 Carried by unanimous voice vote. M/S Fernekes/Penna - To adopt the Resolution for the evaluation of the Alida Way storm water culvert with additional language. RESOLUTION NO. 2095 Carried by unanimous voice vote. ADMINISTRATIVE BUSINESS City Attorney Mattas stated the County Clerk/ Recorder found the registration of Manny Madriaga, which had been misplaced in a pending f'de box where they put registrations with streets not in the computer data bank. Council had a letter before them from Mr. Slocum explaining the incident and accepting responsibility. Because the Council appointment of Mr. Madriaga as Parks and Recre- ation Commissioner was not valid when made, due to his not being registered, they appointed Valerie Clement, by unanimous vote, at the last Council meeting. He stated this revelation creates a difficult relation- ship for the Council has taken two affirmative ac- tions to appoint two people to the same slot. He stated there are options. Consider expansion of the 4/12/95 Page 8 ADMINISTRATIV~ BUSINESS 2. Status report on the appointments to the Parks and Recreation Commission - Continued. ADMINISTRATIVE BUSINESS Commission and thereby allow both of the appoint- ments. If that is the Council's desire then it should be sent back to the Commission for input,' as was done with the idea of expanding two other Boards. The other option is to remove one of the appointees, which the Council has the authority to do with an affirmative vote. He stated the circumstances have happened and he has reviewed the registration, it is consistent with Mr. Madriaga's prior statements where he did send it in on 12/7/94. Mr. Manny Madriaga, 23 Sunrise Court, stated he was extremely disappointed that again the ruling by the City Attorney is that he is not still the Commis- sioner when he stood before the Council and said he did register. He was totally flabbergasted because the Council had all said that the only issue was whether he was registered or not and the County Clerk is taking responsibility for not properly keep- ing the records. He believes the City Attorney acted post haste with a lot of speed by sending him an overnight letter saying the appoinUnent was null and void and there would be a meeting to throw him out of office be- cause he was not registered. He felt there was not enough time for him to put a tracer on and, even though we put a tracer with the County Clerk/Re- corder, it took them a long time and he had been given a little more time to bring forth collaboration. He feels the intent was not in his favor and then today to put off the decision is not in his favor and he does not understand the logic or the reason be- hind it. He felt that new developments and streets estab- lished should be handled as soon as there is occu- pancy, because that is the process that denied such services as mail, PG&E and garbage, because they were not on the City's map; etc. He felt that the registration issue cast a cloud of doubt on his character on whether he mailed it or was manufacturing evidence; etc. He asked the City Attorney if he could be reiustated this evening based on the evidence. Councilwoman Teglia stated the City Attorney does 4/12/95 Page 9 ADMINISTRATIVE BUSINESS 2. Status report on the appointments to the Parks and Recreation Commission - Continued. RECESS: ECALL TO ORDER: 13. Status report on gaming activity proposal. Councilman Penna Left the Podium: ADMINISTRATIVE BUSINESS not make the appointments, the Council does. City Attorney Mattas responded: based on the evidence we have you are a qualified applicant, the registration is appropriate and, therefore, an appoint- ment will be valid. Discussion followed: background information on the appointment and nullification; Mayor Yee was very disappointed in the election office; Council has the option to postpone the decision until the next meeting; Mr. Madriaga's argument is not with the Council; Councilman Penna reminded Mr. Madriaga that if he had the City Clerk register him in her status as Deputy Registrar of Voters this would not have happened; Mr. Madriaga said there were only three and a half days given for him to collaborate his registration; it was not three and a half days but more like two weeks; Councilman Fernekas felt Council had acted in good faith; etc. Council adjourned to a recess at 8:4//p.m. Mayor Yee recalled the meeting to order at 9:08 p.m., all Council was present. City Attorney Mattas stated Councilman Penna has been advised he has a potential conflict of interest on Shearwater and cannot participate in discussions or decisions related to land use. He recommended that Councilman Penna step down from the podium while the staff report was given because it will cover gaming and land use. After the conclusion of that Councilman Penna can participate in the discussion of the gaming. Councilman Penna left the podium at 9:10 p.m. City Manager Wilson stated four staff members worked on the research in the staff report and will make presentations. He gave the Council an out- line to follow of the presentations to be made by staff members and stated after which staff will re- spond to questions not addressed. Mayor Yee noted that the staff report is 25 pages and wondered if it was available in the library and wanted it in other departments. 4/12/95 Page I0 ADMINISTRATIVE BUSINESS Status report on gaming activity proposal. 4112/95 PaRe 11 ACTIOn/ ADMINISTRATIVE BUSINESS City Manager Wilson related: in January the City was approached by two business entities, Bay West Group and Hollywood Park, with a concept for the Shearwater; one of the entities secured an option for the property; it calls for 400 sq. ft. of big box retail and 100,000 sq. ft. of cardroom with the capability of 150 tables; they shOWed staff land use scenarios; there has not been a definitive proposal offered; much of the proposal focused on the gaming side; Council raised a number of issues which are ad- dressed in the staff report; staff was directed to go back and review the state of the art in gaming in other communities, and most pointedly what did we see as being needed should there be a decision to pwceed; addressed will be State legislation, legal issues, land use approvals, community impact, crime, economic fiscal issues, land use and imple- mentation. City Attorney Mattas addressed State legislation: there are a number of bills related to tho issue with uniform minimum standards and regulations with applications to the State; State licensing in the five or six bills in the legislature; State fees mn from $300,000-$400,000 per table per application for the gaming administration and the extensive background checks to be done by the AtWrney General's Office; local laws cannot be inconsistent with State law; fees a City may impose; elections for gaming clubs; the City will retain control with the ability to do . background checks; gaming clubs do have the right to impose local regulations under the State Act; under the Act the City is required to hold an election if there were no gaming clubs prior to 1984; this City has permitted gaming clubs prior to 1984 which are Welte's and Five Brothers since 1967; these daubs are recognized in the General Plan and the Gaming Ordinance as lawful, non-conforming uses; he has reviewed the business license application and the Zoning Ordinance for additional clarification and they don't provide a great deal of clarification so, if you go to the legal, non-conforming use then the Business and Professions Code would not require the City to hold an election; however, Policy 47 in the General Plan is clear and says no additional gam- ing clubs can be added without an election; this Council has the ability to revise the General Plan Policy 47 for gaming clubs to be only in certain parts of town; the public hearing pwcess requ/red ADlVIIMSTRATIVE BUSINESS .3. Stares Repo~ on gaming a~vi~y proposal - Contin- ued. ADMINISTRATIVE BUSINESS for General Plan Amendments; the Council should do a substantial revision to the Gaming Ordinance, because the prior ordinance was written to address the two clubs and place regulations; the revision would also address revenue; etc. Police Chief Raffaelli related: he visited various gaming clubs, talked with the local police depart- ments and reviewed City ordinances; reviewed the impact on the community for calls for services; staffing tools necessary to police the casino without impacting services; loan sharking with exorbitant interest rates, prostitution, drugs, extortion, tips to dealers and money laundering are prevzlent when a hotel is on site; drugs are not that prevalent; book- making, skimming and cheating increase the need for police; language barrier with the Chinese games; background checks on employees require full disclo- sures; class 3 gaming with slot machine legislation will follow; gaming club will not have a significant impact on the community, but will have on the police department; etc. Assistant City Manager Martel related: looked at administration and audking in the various casinos; this is unique to gaming clubs and not known or used by cities; investigated different kinds of ad- ministrative and auditing controls for revenues to be inserted in an ordinance; a survey was made of other cities' auditing and administrative controls to determine if it had an impact on staffing to adminis- ter the tax program; the cities surveyed include Bell Gardens, Commerce, Inglewood and San lose; important to not have an over reliance on those funds by identifying the need and implementing a separate type of fund to account for the revenue from gaming; the funds can be earmarked for one time expenses such as the purchase of equipment, infrastructure; Commerce relies on gaming for 40% of their revenue; Bell Gardens under went a loss of $1,000,000 in gaming revenue which resulted in budget problems which highlighted the need for a policy to earmark the revenue and isolating the funds; suggested utilizing electronic transfer of funds rather than have payments made on a monthly basis to the City; City staff would have to be trained on the collection of cash in a gaming operation; the auditing by the Finance Department would involve two elements, internal and external audits, as well as 4/12/95 Page 12 A~E~A ACIXO~ IAEE~ ADMINISTRATIVE BUSINESS 3. Status Report on gaming activity proposal - Contin- ued. Councilman Pennn Returned to the Podium: '13 ADMINISTRATIVE BUSINESS a third party audit; the City must determine what type of audit will be conducted by the operator; responsibilities must be clearly defined in the ordi- nance; access must be provided at all times to the gaming operation; in San Jose there was a large skimming activity going on and there was an ontside third party audit that found it; the City needs an auditor with casino experience who could find shel- tering receipts and any skimming; personal financial statements should be submitted yearly; etc. Interim Director of Economic & Community Devel- opment Beyer discussed the land use proposal: specific plan, an EIR, precise plan, ownex partici- pation agreement with Developer, plus lease or sale of City owned six acre parcel would be processed by the Planning Commission; economic impacts are 1,500-2,000 new employees with 30% local with minimum wages plus tips; 10,000-20,000 people would be attending with little ripple effect because most don't have shops; acquiring supplies is where the City gets sales tax; staff used a revenue gener- ation formula from Inglewood, San Jose and Com- merce who get $4.4 to $6 million annually; no guaranties those funds are on-going; lump sum license fees are from $1 to $6 million annually; the casino being in a redevelopment area produces a tax increment of $500,000; City parcel fronts and surrounds the Shearwater property which can be sold to the developer or leased; an appraisal is tak- lng place on the 6 acres; dark side is the potential of social or pathological gamblers; Developer will pay processing fees; etc. Councilman Penna returned to the podium at 10:05 p.m. Mrs. Maria D'Alessandro, 773 Baden Ave., s~ated as a mother and grandmother she is concerned about the pwposed cardroom at the Shearwater site. Her concern is tha~ she understands we live in difficult economic times and the City has to look at revenues but, if we allow Hollywood Park to open here, we will be creating a problem for our town. One of ~he problems she sees as more eardrooms are allowed to mushroom in California, and this is the trend Roberta mentioned, maybe the revenue may not be so large. Another concern is that the young people with an establishment so large and with the club 4/12/95 Page 13 ADMINISTRA~ BUSINESS 3. Status Report on gaming activity proposal - Contin- ued. ADMINISTRATIVE BUSINESS with an establishment so large and with the club they propose to create might be enticed to try it and create new gamblers. She does not oppose cardrooms, we have two card- rooms and Artichoke Joe's that have been here for a long time and have not created a problem, so why create the problem. She proposes that the people should be allowed to vote on this issue, because they will be the ones to be impacted by this issue. Mr. Jim Datzman apologized in advance for being redundant, but he has comments and specific ques- tions concerning the staff report, because 1~ has concern on the relocation of the cardrooms. He found a full scale presentation on this project at a redevelopment session and the Council advised staff to do research and present the findings. He com- plemented staff on a real comprehensive report and also thanked Mr. Bill Polland for responding to questions he posed. He cited his concerns: the sense of urgency to move this project quickly and get out in front of competing projects which didn't make sense then or now; this creates a change in direction since 1984; he feels the neighborhoods should have an opportu- nity to speak on this; in the past ten years there has been gaming, the State lottery and the addition of keno and bingo and cardrooms are being tried throughout the State; the State is allowing it because of the revenues including that from the indian reser- vation gambling with mi_nimum controls; Policy 47 clearly calls for a public vote which was consistent with the Attorney General's opinion that cardrooms require a public vote; he believed the Council's intent was to require a vote for an expansion or relocation; are their guarantees on this revenue, if not will the revenues be put in the General Fund; page 11 chart shows Inglewood with $4 million and an expansion to $10 million and the number of tables is 100, why is it higher than what is proposed here; it shows an optimistic time chart and why does it show 1:5 revisions; what questions were addressed in the draft; negative crime related - last night's San Mateo Times Letter To The F, ditor concerned a spe- cial report on Channel 4, the commentator men- tioned five unsolved follow-home murders in San Jose and said they were unrelated to the Garden 4112195 Page 14 ADMINISTRATIVE BUSINESS 4/12/95 Page 15 ADMINISTRATIVE BUSINESS Club; do we know if this is true and how will this be prevented if there are several homicides in a short time at Kaiser or the Price Club; the Attorney General says local problems will rest with the local authorities; police are requesting seven personnel at a cost of $500,000, on the same page 14 it notes that the staffing increases even though the casino is not in operation - how do you account for that; he thanked Council for the opportunity to speak and asked that the .q.$.F. residents be allowed to voice their opinions. Mr. Leu Dell'Angela, 460 Gardenside, related: we have a sign called The Industrial City and if people get their way it will be the Gaming City; that image is not needed; he went to San Jose an~d looked at the cardroom as well as to Artichoke Joe's to see the operations; he worked in Southern California, so he speaks from a basis of knowledge; this City just completed a large plan on the East of 101 freeway and spent over $500,000 for a marketing study and no where in the plan did we say we wanted a card- room; certain people are trying to push a cardroom down our throats and the philosophy is to rush it through; this is a major departure from where this City is going and it doesn't deserve a fast track approach; when you get into a speed up then you have to live with the decision ten or forty years; he heard the spin off effects of a cardroom from the Police Chief and complimented staff members for their reports, but anyone listening would say it is not a good idea; he felt Mayor Yee is against it, Coun- cilman Penna cannot vote and felt the issue should be put to bed; because it is a negative image for East of 101 that we don't need; he asked the Coun- cil to move cautiously and put it to sleep. Mr. John Ritchie, Atty., 505 San.some St., S.F., stated he represented the Pascos who have been operating their clubs for a long time in the City with an unblemished reputation. The City Attorney said they are legal, non-confomfing uses and to the ex- tent of his interpretation of the State law and the current situation as to whether or not a vote is nec- essary on whether the Council can decide the issue without a vote of the people - it can. It is because of the good business of the family that their interests are at stake and they have taken an active role to make sure their concerns are addressed and interests AOtiNmA ADMINISTRATIVE BUSINESS 3. Status Report on gaming activity proposal - Contin- ued. ACTION TAI~E N ADIVIINIS~TIVE BUSINESS protected, because they have earned their rights as a business for a long time in this City whatever the outcome of this proposal. He stated Item 18 is a motion to adjourn the meeting for a study session on a drat~ ordinance amending the gaming ordinance, yet there has not been a dra~ circulated, when this is something the Pascos have a vital interest in and requested copies of when the drat~ becomes available. There were a couple of comments or questions that were raised, yet he has not seen the staff report and Councilwoman Teglia raised a question on whether or not an ordinance could be on a site specific for this use. Again this is something that is a vital concern, we don't want an ordinance that would zonk them out of their business and their interests have to be taken into account. He stated the Pascos have participated in meetings and are negotiating with the Developer. Their long standing business activities in the City should be included in this project. Councilwoman Teglia stated from the first time Hollywood Park came into the City we encouraged each to negotiate with each other and it is the fondest hope of Council to see the elimination of a less than desirable use on Grand Avenue. The Council is not talking about the conditions of the Pasco use but of expanding a particular use, for it is a legal, non-conforming use. If they don't want to be part of a partnership they will continue as they are wday unless they chose to change it. Councilman Penna stated, even with all the com- ments he has heard, he remains neutral. In the conversations he has had it is felt that the existing cardrooms are non-conforming uses. We also have bingo, which is considered to be gambling, and the comments are if there is a vote of the people then it should include the bingo games. Councilwoman Teglia stated both of those activities are great pastimes and considered legal activities but she agreed that if there is a gaming ordinance it should include all. She felt it was important to take it to the community, it's complex, it is not do we want gambling or not because it is land use and all of the implications in the staff report that must be 4/12/95 Page 16 &~iEN~A ADMINISTRATIVE BUSINESS .3. Status Report on gaming activity proposal - Contin- ADMINISTRATIVE BUSINESS discussed. We tried something up in Westborough on the common greens, put together a road show, did not make decisions, bwught our fln_n_ncial people and invited everyone. When it was over we sent out a fact sheet with City phone numbers and invited people to call and ask questions. We told them there would be a particular meeting with the Council and invited them to come to win the endorsement of the community. She propose that the Council do the same thing and recommended that we bring this to each of the neighborhoods, using schools and com- munity rooms, the first three weeks of May. Have it in Brentwood, Avalon, Sunshine Gardens, Bud Bud, two in Westhorough, the area between El Camino and Parkway and then Old Town with Hill- side and Pecks Lots. By going out to the neighbor- hoods we can let them know how we are going to deal with this the second meeting in May. She wants to hear what the community has to say - allow it, hold an election or forget the whole thing. She wanted Council to direct staff to do this and wanted to see the revenue ordinance come forward. Given what the City Attorney says, go into Court and get declaratory relief so we know what we can do and that is what she recommended. Councilman Fernekes stated he could support that. Discussion followed: the clubs are very large, have valet parking and continually change to make condi- tions safe for their customers; very little drugs; difficult to know what is going on in money laun- dering; clubs have good surveillance; there are 250 calls per year from our local Kaiser Hospital and 160 calls a year from the Price Club; there are a few follow-home robberies; L.A. rules are that everyone in the club speaks english, but don't know if State law permits this; Councilman Penna ques- tioned why we would increase our police by eight officers when calls for police are the same as Kaiser incidents; Police Chief feels it is important to set standards, have a police unit in the club and do background checks on everyone in the club; prosti- tutes in the bay area do not go into clubs, they send their pimps into clubs and make arrangements for the clients to meet them at a hotel; clubs have play- ers banks and offer rides home to winners or a security person can follow a winner home; Council- woman Teglia complemented the thoroughness of 4/12/95 Pa~'e 17 : ADMINISTRATIVE BUSINESS Status Report on gaming activity proposal - Contin- 14. Rental car storage business license draft ordinance public meeting. ADMINISTRATIVE BUSINESS the police report and questioned how many casinos are publicly owned; the Bicycle Club is 65% owned by the Federal Government and one other is publicly owned; clubs only provide private security and the police will need $550,000 to cover police personnel; Mayor Yee is opposed to gambling and thinks land values will decline if they are built, however, in visiting the clubs he was impressed with the security system, but still feels there are many negatives; it is important to get a revenue ordinance in place before legislation is enacted; staff will draft a revenue ordinance next week; the State does not require an election but this City's General Plan does for any expansion; that is only based on the City Attorney's opinion; Councilmembers Teglia and Fernekes want the City Attorney to file a declaratory relief action; it is possible to do a General Plan Amendment that allows this use in a specific location or zone only; it is necessary to bring in outside experts for internal auditing on cash handling; Councilman Fernekes feels the internal auditing must be in place, be able to observe video tapes and compare to cash receipts for any discrepancies; where are the figures on the lease of City property and any potential generation of sales tax; Councilwoman Teglia feels there is the issue of up to $6 million that could accrue from the card room but Council should talk about different levels of income, where the City is guarantied $2 million or so a year; etc. Consensus of Council - To get more information for a declaratory judgment. Councilman Fernekes related: he also went to L.A. one and a half weeks ago to the cardrooms and found it very comprehensive; he toured Hollywood Park after never having been in a card room; asked questions on how collections are made and auditing; saw the internal audit and the surveillance system; talked to casino, finance and police people; went to the Bicycle Club; Hollywood Park has a friendly atmosphere and it gave him a new perspective, which is why he can support Councilwoman Teglia's recommendation, however, he wants to hear more from the neighborhoods and gain more information; etc. Continued to 4/26/95 under Agenda Review. 4112195 Page 18 ADMINISTRATIVE BUSINESS Informational item to provide an overview of the new federal requirement to produce a Consolidated Hous- ing and Community Development Plan. 16. Resolution authorizing amendment to the C/CAG Joint Powers Agreement. A RESOLUTION AUTHORIZING AN AMEND- MENT TO THE JOINT POWERS AGREElVlENT ESTABLISHING THE C1TY/COU~ ASSOCIA- TION OF GOVERNMENTS 17. Resolution confirming the extension of the tolling period of the Terrabay Project. A RESOLUTION OF THE CITY COUNCIL OF SOUTH SAN FRANCISCO CONCURRING WITH THE TOLLING FOR AN ADDITIONAL 549 DAYS FOR LITIGATION WHICH RESULTS IN EX- TENDING THE TERRABAY SPECIFIC PLAN AND DEVELOPMENT AGREEMENT TERMINA- TION DATES TO FEBRUARY 14, 1997 ADMINISTRATIVE BUSINESS City Clerk Battaya explained this was a duplication of Item No. 7 on the Consent Calendar. Councilman Penna stated he didn't see the benefit of this. Councilwoman Teglia suggested holding it over to the next meeting. City Manager Wilson suggested continuing the item to the Adjourned 4/19/95 meeting with the closed session. MIS Penna/Teglia - To continue the item to the 4/19/95 meeting. Carried by unanimous voice vote. City Attorney Mattas explained the tolling period requested by Sunchase for the Terrabay Specific Plan and Development Agreement. He stated this is based on litigation that delayed implementation of the project. The additionai tolling period being confirmed is 549 days which would amend the expiration dates of the Specific Plan and Develop- ment Agreement to February 14, 1997. Ms. Jan Pont, 111 Belmont Ave., asked if the extension of 549 days applies to ail phases or only Phase One. City Attorney Mattas stated it extends to ail phases of the Specific Plan and Development Agreement. Ms. Pont stated she attended the 1118/95 meeting and her notes indicated that if it went beyond the August 12th date it would be opened up for more public hearings. Now it is being extended further and asked if it will still be considered at public hearings. She stated Councilwoman Teglia did not want it extended for ten years for ail phases, as was suggested by the Developer, even though we have streets there are no houses built. She questioned if any building permits had been issued because the neighborhood was interested in its progress. City Attorney Mattas stated Ms. Pont was correct on the first item and the action of the Council is not 4/12/95 Page 19 ADMINISTRATIVE BUSINESS 7. Resolution - Continued. ,'EMS FROM COUNC1L GOOD AND WELFARE 18. Motion to adjourn the meeting to Wednesday, 4/19/95, 7:00 p.m., Municipal Services Building, 33 Arroyo Drive, for a study session on the draft ordi- nance amending the gaming code provision of the Municipal Code. ADJOURNMENT ADMINISTRATIVE BUSINESS discretionary, it is just the implementation. Interim Director of Economic & Community Devel- opment Beyer stated on Friday the Building Division will issue permits for 14 model town houses and four single family homes to move the project for- ward. Ms. Pont asked questioned if down the line there will be additional public hearings for other phases. City Attorney Mattas stated there will be public hearings for phases two and three and the commer- cial process. There will not be a public hearing on phase one unless there is a change in the precise plan. M/S Teglia/Fernekes - To adopt the Resolution. RESOLUTION NO. 21-95 Carried by unanimous voice vote. ITEMS FROM COUNCIL Mayor Yee stated if Council is going out to the community on the card room issue he wants to make sure that all Councilmembers are present, however, he will leave on vacation May 12th and return on May 22nd. Councilwoman Teglia suggested having a staff pre- sentation at each of the community meetings to possibly be held on May 1, 2 and 3rd. GOOD AND WELFARE No one chose to speak. M/S Teglia/Penna - To adjourn the meeting to Wednesday, 4/19/9:5, 7:00 p.m., City Council Con- ference Room, City Hall, 400 Grand Ave., for a study session on the draft ordinance amending the gaming code provision of the Municipal Code and Item No. 16, C/CAG Joint Powers Agreement. Carried by unanimous voice vote. Time of adjournment was 11:40 p.m. 4/12/95 Page 20 RESPECTFULLY SUBMITTED, Barbara A. Battaya, City City of South San Francisco APPROVED. City of SoL th San Francisco The entries of this Council meeting show the action taken by the City Council ~ 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. 4/12/95 Page 21