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HomeMy WebLinkAboutMinutes 1997-06-25 Mayor Joseph A. Fernekes Council: James L. Datzman Eugene R. Mullin · 'ohn R. Penna ~,obert Yee CALL TO ORDER: ROLL CALL: AGENDA (Cassette No. 1) PLEDGE OF ALLEGIANCE: INVOCATION: PRESENTATIONS ' ~ulti-City TSM - by Angela Rae AGENDA REVIEW Councilman Penna Requested: - Remove Item No. 17. RECESS: 6/25/97 Page 1 MINUTES City Council Municipal Services Building Community Room June 25, 1997 ACTION TAKEN 7:45 p.m. Mayor Fernekes presiding. Council Present: Council Absent: Datzman, Mullin, Penna, Yee and Fernekes. None. The Pledge was recited. Rev. Francisco Baltadano, Mission del Espirito Santo, gave the invocation. PRESENTATIONS Ms. Rae stated the organization is an eight city JPA that works with employers to encourage carpooling, ride sharing and transit use to reduce air pollution and traffic. She related: they have launched the web home page for one stop shopping in looking for commute assistance; use www.commut.ord for access on the Internet; they are working on a 15 minute video; the video will use real live testimony from people who ride bikes who will discuss the benefits and alternatives to driving your car; a copy will be given to Western TV Cable for public ser- vice telecasts; June through October is air pollution time; they are looking for approval to take certain proactive steps allowing for dressing down for bik- ing to work and other campaign measures. AGENDA REVIEW City Manager Wilson stated there were no changes to the Agenda. M/S Penna/Mullin - To table the item. Carried by majority voice vote, Councilman Datzman voted no. Mayor Fernekes recessed the meeting at 7:48 p.m., AGENDA ACTION TAKEN RECESS - Continued. ..ECALL TO ORDER: ORAL COMMUNICATIONS COMMUNITY FORUM CONSENT CALENDAR Motion to approve Minutes of the Regular Meeting of the 5/28/97 and Adjourned Regular Meeting of 6/5/97. 2. Motion to confirm expense claims of 6/25/97. Resolution approving job specifications, salary ranges and unit designations for the classifications of Infor- mation Systems Manager, Lead Maintenance Worker for WQCP and Instrumentation Technician. A RESOLUTION APPROVING PERSONNEL CHANGES RELATED TO THE ADOPTION OF THE 1997-98 FISCAL YEAR BUDGET Motion to accept as complete miscellaneous ADA o~-~/~ upgrades in accordance with the plans and specifica- tions. in order to reconvene the Redevelopment Agency meeting for a single item. Mayor Fernekes recalled the meeting to order at 8:30 p.m., all Council was present. ORAL COMMUNICATIONS Ms. Sophie Mason, 10 Arlington Dr., thanked the Council and staff, (Mr. Van Duyn and Russ Moss) on behalf of the Winston Manor residents, for their assistance in fighting the crematorium. She was here a few months ago asking for help in having Colma rescind the crematorium at 1950 El Camino Real. She stated it has been 3 or 4 months now and Colma has rescinded the contract. We are not out of the woods yet, for she understands that the appli- cant wants to refile, but the residents won the first round. COMMUNITY FORUM Councilman Datzman attended a Subcommittee meeting with Kaiser representatives and discussed concerns about their long range plans. Mayor Fernekes gave recognition to the Vice Mayor for receiving the Ted Bass award from the Calif. Teachers Assoc. for 1996, as the teacher involved in non-partisan politics. CONSENT CALENDAR Removed from the Consent Calendar for discussion by Vice Mayor Mullin. Approved in the amount of $1,677,236.96. RESOLUTION NO. 71-97 Approved. 6/25/97 Page 2 AGENDA ACTIQN TAKEN CONSENT CALENDAR Resolutions declaring the date of the General Munici- pal Election as 11/4/97 for the purpose of the election of three Councilmembers, City Clerk and City Trea- surer and requesting services from the County Clerk. A RESOLUTION DECLARING THE DATE OF THE GENERAL MUNICIPAL ELECTION FOR 1997, ORDERING THE PUBLICATION OF A NOTICE OF ELECTION AS REQUIRED BY THE ELECTIONS CODE, ESTABLISHING THE HOURS DURING WHICH THE POLLS SHALL BE OPEN A RESOLUTION REQUESTING COUNTY CLERK OF SAN MATEO COUNTY TO RENDER SPECI- FIED ELECTION SERVICES Motion to approve Minutes of the Regular Meeting of the 5/28/97 and Adjourned Regular Meeting of 6/5/97. CONSENT CALENDAR Removed from the Consent Calendar for discussion by Councilman Yee. M/S Penna/Yee - To approve the Consent Calendar with the exception of Items No. 1 and 5. Carried by unanimous voice vote. Vice Mayor Mullin stated the minutes for 5/28/97, page 1, relating to the presentation made by Stacy Keelly. The sentence reads "the expanded basis rates have already been reviewed by the FCC, and they found the rates are quite a bit below the rates we could have in place." He thinks it is not "basis rates", but base rates. He is not sure about that, it could be the basis rates. It goes on to say, she quoted rates for expanded - which she said is lower than other cities, he has some concerns about that statement, because he believes it is inaccurate which is reflected in the rates which later was mentioned as the minutes go on. Likewise, he does not think the FCC said that they found the rates are quite a bit below the rates we could have in place, he doesn't think that the FCC makes comments like that. They simply have a standard that must be met and as long as you don't exceed that standard the FCC doesn't come out and pat TCI on the back, and say good job, you are below the rates we could have in place. He does not think it is an accurate reflection of what the reality is. City Attorney Mattas stated, as to Vice Mayor Mullin's point, whether or not that is an accurate statement, Vice Mayor Mullin has made comments into the record of this proceeding which call into question that, he does not believe it appropriate to 6/25/97 Page 3 AGENDA ACTION TAKEN 12-.7 _...1.. Motion - Continued. Resolutions declaring the date of the General Munici- pal Election as 11/4/97 for the purpose of the election of three Councilmembers, City Clerk and City Trea- surer and requesting services from the County Clerk. b-q/ o A RESOLUTION DECLARING THE DATE OF THE GENERAL MUNICIPAL ELECTION FOR 1997, ORDERING THE PUBLICATION OF A NOTICE OF ELECTION AS REQUIRED BY THE ELECTIONS CODE, ESTABLISHING THE HOURS DURING WHICH THE POLLS SHALL BE OPEN A RESOLUTION REQUESTING COUNTY CLERK OF SAN MATEO COUNTY TO RENDER SPECI- FIED ELECTION SERVICES PUBLIC HEARINGS Public Hearing - Consideration of Negative Declara- tion ND-97-030 and General Plan Amendment GP- 97-030 deletion of freight forwarding and related uses from the Planned Industrial land use category of the East of 101 Area Plan; Public Hearing opened and closed on 5/24/97 and continued from 6/11/97; re- quest to continue to 7/9/97. change the comments of the speaker, if she has made those comments - either accurate or not. Councilman Yee stated the 6/5/97 minutes for the study session where you have me absent, will you make a note that I was there after the first item. He stated he went to another meeting and got to the Council meeting late. M/S Mullin/Datzman - To accept the minutes. Carried by unanimous voice vote. Councilman Yee asked the City Clerk to give a report on the election. City Clerk Battaya related: the first resolution calls an election for 11/4/97; declares the hours during which the polls will be open; contains the notice of election to be published with the timetable of nomination beginning on 7/14/97, close of nomina- tions is 8/8/97 unless an incumbent does not run and there is a five day extension to 8/13/97; the second resolution requests election services from the County Clerk for paper consolidation and precincting and other duties. M/S Yee/Penna - To adopt the Resolution declaring the date of the General Municipal Election for 1997. RESOLUTION NO. 72-97 Carried by unanimous voice vote. M/S Yee/Penna - To adopt the Resolution requesting County Clerk to render specified election services. RESOLUTION NO. 73-97 Carried by unanimous voice vote. PUBLIC HEARINGS Mayor Fernekes stepped down from the podium due to a conflict of interest. Mayor Pro Tern Mullin reopened the Public Hear- ing. M/S Yee/Penna - to continue the item to 7/9/97. 6/25/97 Page 4 AGENDA ACTION TAKEN /2-8 PUBLIC HEARINGS ,. Public Hearing - Continued. A RESOLUTION ADOPTING NEGATIVE DEC- LARATION ND-97-030 AND APPROVING GENERAL PLAN AMENDMENT GP-97-030 AMENDING THE EAST OF 101 AREA PLAN POLICY 5A TO DELETE FREIGHT FORWARD- ING AS A USE CONSISTENT WITH THE PLANNED INDUSTRIAL LAND USE CATEGORY Public Hearing - Consideration of Master Fee chang- es for the Police Department - plan check and condi- tion formulation approximately $55-$60 per hour, site inspections approximately $55-$60 per hour and Public Works WQCP permits and renewals $60.00 for each three-year permit, underground tank inspec- tions $50.00 per hour and inspections outside of normal pretreatment activities $50.00 per hour; con- duct Public Hearing; adopt resolution, o~'~'7'7 A RESOLUTION AMENDING THE MASTER FEE SCHEDULE PUBLIC HEARINGS Carried by majority voice vote, Mayor Fernekes did not take part in the vote. Mayor Fernekes returned to the podium. Mayor Fernekes opened the Public Hearing. Finance Director Brooks gave the staff report out- lining the fees to be changed. Vice Mayor Mullin asked if the City was recovering costs with the two additional charges. Councilman Yee stated it is a new fee for the police, for a business comes in and the police send it out to a consultant, yet the police reviews plans for home owners - why not for these. Police Chief Raffaelli stated Sgt. Petrocchi is going to retire and it is hard to find someone with his expertise, but home components can be covered by his replacement, but the outside ones are more complicated. Councilman Yee concerned about a higher consul- tant fee and bureaucracy. Sgt. Petrocchi stated the minor ones are for com- mercial while Genentech is always doing technical improvements, however, he will train the new man on the minor permit approvals. Councilman Yee stated that should be in the Master Fee and identified as to what is minor. M/S Datzman/Yee - To adopt the Resolution and incorporate the suggestion by Councilman Yee. RESOLUTION NO. 74-97 Carried by unanimous voice vote. Mayor Fernekes opened the Public Hearing. 6/25/97 Page 5 AGENDA ACTION TAKEN PUBLIC HEARINGS Public Hearing - Consideration of assessment for stormwater fees for FY 1997-1998 and amending the Master Fee Schedule; conduct Public Hearing; adopt resolution. ~'~ 'g 7 A RESOLUTION ESTABLISHING STORMWATER MANAGEMENT SERVICE CHARGES TO PRO- VIDE REVENUE FOR THE IMPLEMENTATION OF THE STORMWATER MANAGEMENT PLAN FOR FISCAL YEAR 1997-1998 AND APPROVING THE LEVY OF ASSESSMENTS ON PROPERTIES IN SOUTH SAN FRANCISCO Public Hearing - Consideration of assessment for sewer rates for FY 1997-98 and amending the Master Fee Schedule; conduct Public Hearing; adopt resolu- tions. S2-~ ~ 7"7 A RESOLUTION ESTABLISHING SEWER RATES EFFECTIVE FY 1997-98 AND AMENDING THE MASTER FEE SCHEDULE TO INCLUDE THE RATES A RESOLUTION ADOPTING REPORT OF AN- NUAL SEWER RENTALS AND CHARGES FOR 1997-98 PURSUANT TO CHAPTER 14.12 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE PUBLIC HEARINGS Director of Public Works Gibbs related: this is the fifth year of participation, as mandated by Federal and State; this is similar to the past year without a change in fees; there was Council direction at the study session on 6/10/97; and Ray Honan has been appointed Source Control Inspector. Mayor Fernekes closed the Public Hearing. Councilman Yee stated Exhibit A is $8.72 @ single family and is the same amount assessed last year. Director of Public Works Gibbs stated nothing had changed. M/S Yee/Penna - To adopt the Resolution. RESOLUTION NO. 75-97 Carried by unanimous voice vote. Vice Mayor Mullin congratulated Mr. Honan on his appointment. Councilman Yee stated this program will end next year and there maybe another program coming. He asked that staff and Council be prepared for next year's assessment, and find a better solution as former Councilman Drago always sought. Mayor Fernekes opened the Public Hearing. Director of Public Works Gibbs stated they were upgrading the plant over a three year period to meet its rated capacity of 13 million gallons. This is the second year of the scheduled increases related to the plant expansion program. Mayor Fernekes closed the Public Hearing. Discussion followed: what is the 16.5%; 16.5% is the increase in revenue to accommodate the employee's MOU; based on the water usage in Daly City and ours is flat rate, if a resident used more than seven units per month it would be a higher rate; the City has to borrow and be in bonded indebtedness; will staff come back for approval to increase connection charges and hookups; yes, it will go to the Subcommittee and back to Council. 6/25/97 Page 6 AGENDA _AC_TIQN TAKEN PUBLIC HEARINGS ~ Public Hearing - Continued. RECESS: RECALL TO ORDER: ADMINISTRATIVE BUSINESS 10. Resolution approving the Fiscal Year 1997-98 South San Francisco Conference Center Authority Budget. ~I2D A RESOLUTION OF THE CITY COUNCIL OF SOUTH SAN FRANCISCO APPROVING THE CONFERENCE CENTER FISCAL YEAR 1997-98 BUDGET PUBLIC HEARINGS M/S Mullin/Penna - To adopt the Resolution estab- lishing sewer rates. RESOLUTION NO. 76-97 Carried by unanimous voice vote. M/S Mullin/Penna - To adopt the Resolution. RESOLUTION NO. 77-97 Carried by unanimous voice vote. Mayor Fernekes declared a recess at 9:10 p.m. Mayor Fernekes recalled the meeting to order at 9:28 p.m., all Council was present. ADMINISTRATIVE BUSINESS Conference Center Director O'Toole related: busi- ness will increase 20% from signed agreements for they have pre-sold 30% of rental bookings; there were 500 event services with 150,000 attendees; 75 % of their business is the corporate market. Discussion followed: Councilman Datzman compli- mented the Director and the Authority, for he felt the 20% increase was impressive; he felt the increased salary and benefits, 8%, were quite ade- quate; the Director stated it includes reorganization sales for the Director and Sales Manager; how do the benefits relate to City employee benefits; it is the same, with one less holiday and two personal days; contingencies are in the undesignated reserves which for catastrophic purposes is a line item; Councilman Yee stated there has been a lot of dis- cussion of the Convention & Visitors Bureau and that a portion of the $115,000 budget goes toward promoting the Conference Center; since the Author- ity is doing well, why spend General Fund monies to support or subsidize an organization that makes money; Mayor Fernekes stated a portion of the $115,000 was given to the Authority for an individ- ual who will bring money into the City; Director of Conference Center stated $26,000 is for the person, but this is benefitting our hotels and this City; noth ing says we have to continue giving the Bureau $115,000; initial financials never called for the 6/25/97 Page 7 AGENDA A~TION TAKEN 131 ADMINISTRATIVE BUSINESS ). Resolution - Continued. 11. Resolution approving the 1997-98 Operating Budget. zo A RESOLUTION APPROVING THE FISCAL YEAR 1997-1998 OPERATING BUDGET FOR THE CITY OF SOUTH SAN FRANCISCO AND ADOPTING CORRESPONDING APPROPRIA- TIONS ADMINISTRATIVE BUSINESS Conference Center debt service to be payed off; can the City repay it on an accelerated basis; not until after ten years; the Bureau only gives us one day's booking per year and paying $115,000 per year is very expensive; the Authority generates 20,000 hotel room nights per year and there are 2,100 rooms in total in S.S.F.; Vice Mayor Mullin complimented the Director on the comprehensive report. M/S Datzman/Mullin - To adopt the Resolution. RESOLUTION NO. 78-97 Carried by unanimous voice vote. Director of Finance Brooks gave an overview of the various department budgets: City Clerk's budget includes an election in November; City Attorney's budget has increased monies to accommodate certain on-going lawsuits; Finance Department's budget has eliminated one position and increased training; Non- Departmental includes contingencies for MOUs that will happen during the year and development of social services programs for the well being of the City; Economic & Community Development has increased monies for the General Plan Amendment that is in process; accelerated efforts for the down- town; Fire Dept. includes a new ambulance with additional paramedics in the organization; Police Dept. has the technology program and has two additional police funded by the COPS; Public Works has the WQCP expansion; Library has some addi- tional hours along with increased spending for books; Park & Rec. will maintain all programs and services at the at the same level without change in personnel. City Manager Wilson related: if you recall there were comments made concerning the increase of revenue and the improved economic health of the community; there was a suggestion to start expan- sion of some of the critical services like police and library services by adding additional personnel or services; he has been working with a number of the departments, not only on what to do today, but on a plan based over the next 12 to 36 months; although we are not in the position right now to make firm recommendations; perhaps they would reconsider and hire more paramedics prior to when the County- 6/25/97 Page 8 AGENDA ACTION TAKEN ADMINISTRATIVE BUSINESS l. Resolution - Continued. 6/25/97 Page 9 ADMINISTRATIVE BUSINESS wide program comes on board, if it occurs; the Police Chief indicated he could use up to six offi- cers, but is looking for a phased in process to bring them in by two or three, but augment it with PSTs which will be addressed later this year; Park & Rec. is taking on a number of facilities and will need more workers; by the 1998-98 budget we could have the Hillside Recreation facility on board and that will require four positions to operate and maintain the facility; he has worked with Library Director Sommer to expand and enhance the service hours at Grand and Orange and she has developed a two step program that is achievable; he needs more time to develop a comprehensive program with a recommen- dation to Council; the City is in the process of re- cruitment and will process paramedics by mid-year and the Finance Director, at that time, will analyze revenues and expenditures to see the funding avail- able to enhance those service hours; Councilman Yee reiterated wanting to pay back the community during these good economic times by adding police services and wants staff, within 90 days, to come up with a proposal, even with dollars so that Council could approve and implement the recommendation in six months and he wanted to make sure that included the paramedics and his suggestion to include more police; if the Council enhances the paramedic com- ponent now, the need for overtime can be reduced and applied to the premium; City Manager will make the necessary adjustments in the documents; Councilman Penna wants to make sure that the computer program to be purchased is user friendly so, you can get a permit for a water heater, pay for it by Visa and get on the web site; Vice Mayor Mullin complemented the staff and Subcommittee time that went into this budget, concurred with Councilman Yee's proposal to enhance the document and have the City Manager implement; he feels this is a good document that reflects the City is in a period of time where revenues are up and it is time for us to move forward and make sure any extra revenue enhances the quality of the community, and he thinks this document will do that; he personally thanked the Director of Finance for the time spent with Council where he clarified many questions of the Subcommittee's; Mayor Fernekes thanked the Vice Mayor for serving with him on the Subcom- mittee and staff for coming up with the document AGENDA ACTION TAKEN ADMINISTRATIVE BUSINESS t. Resolution - Continued. 12. Resolution approving the 1997-98 Capital Improve- ment Program. ~' ! 2 A RESOLUTION APPROVING THE CAPITAL IM- PROVEMENT PROGRAM FOR FISCAL YEAR 1997-98 ,. Resolution approving the Scavenger Franchise Agree- ment. ~>-2.~--7 A RESOLUTION APPROVING AN AGREEMENT FOR COLLECTION AND DISPOSAL OF SOLID WASTE BETWEEN THE CITY OF SOUTH SAN FRANCISCO AND SOUTH SAN FRANCISCO SCAVENGER COMPANY AND AUTHORIZING EXECUTION OF THE AGREEMENT Councilman Penna Left the Podium Due to a Conflict of Interest: ADMINISTRATIVE BUSINESS that represents positive growth. M/S Penna/Yee - To adopt the Resolution with the understanding of the suggestions for police and paramedics and in 90 days Council will get a report on the potential enhancements. RESOLUTION NO. 79-97 Carried by unanimous voice vote. Director of Public Works Gibbs related: the Coun- cil at the 5/7/97 study session were in agreement with the Program; the Planning Commission deter- mined the CIP was in compliance with the General Plan; etc. M/S Yee/Penna - To adopt the resolution. RESOLUTION NO. 80-97 Carried by unanimous voice vote. City Manager Wilson stated items 13 and 15 are interrelated subjects, one being the franchise agreement and the other containing various ordi- nances that may or may not be impacted depending on the franchise agreement. He suggested com- mencing with discussion of the franchise agreement, but prior to taking action we proceed to the ordi- nances if we determine that is necessary. He stated that a number of communications have been received in his Office, a number of those are in front of Council and there are intriguing comments in the letters and references to legal cases. His staff is not comfortable and it will probably be their recommen- dation that additional time be spent to look at the documents. He stated the other item may be redundant, it is a discussion that we had during the workshop on the same subject. Council is reminded that the City has always had an obligation to provide for the public health of the community and that public health was recognized and allowed for by this exclusive fran- chise for there is a need to collect, to remove the waste, so it is not a health hazard. Back in 1989 the State Regulatory Agency suggested that there was a need to start diverting solid waste to the landfill and 6/25/97 Page 10 AGENDA ACTION TAKEN ADMINISTRATIVE BUSINESS 5. Resolution - Continued. 6/25/97 Page 11 ADMINISTRATIVE BUSINESS there needs to be a divergence, this was AB939 which more than suggested, it required that cities divert 25% of the waste by 1995 and we are aware that we have been able to achieve that result. How- ever, we must do another 25%, bring it to 50% by the year 2000, so the second half is a little more difficult to divert than the first half. In 1990 we entered into a ten year franchise agree- ment with the Scavengers and that runs to the year 2001, and it is significant in AB939 that we must meet the percentages. Unfortunately the current agreement did not address AB939 and is silent. Accordingly, in 1995 when we reviewed that, we started discussion with them about what sort of program they were going to suggest to assist us in meeting the diversion rates and we started talking, we had study sessions with the Council to identify the need for public education and we need recycling to achieve the objectives. We also need a materials recovery station, a MRF, to meet the objectives on landfill where you actually separate recycling to the waste streams and send them on their way. The Scavengers asked to assist us to meet the rates, for MRFs are costly, and to obtain the funds. It be- comes a long term loan to the State of California and has a loan set up for that purpose, but if you borrow long term dollars you have to demonstrate a cash flow to retire the debt. So, at this point we are in a position to look at the most logical approach, being the Scavengers have need to provide the nec- essary equipment. To achieve that it requires long term debt, when we have an existing scavenger franchise, so we could go out to bid for the fran- chise and did not. We have a franchise obligation to the year 2001, we had the divergence rates to meet, we looked at transferring that obligation away from the City, we wanted to keep our low rates and at a minimum, maintain the services we currently enjoy. Each of the objectives have been met, this is a long term document and it would be provided for another 17 years. There is a ten year option that could be exercised. It provides the franchise the exclusive right to pro- cess waste. It is permissible on source separate recycling, as our current ordinance provides that if AGENDA ACTIQN TAKEN ADMINISTRATIVE BUSINESS 3. Resolution - Continued. (Cassette No. 2) 6/25/97 Page 12 ADMINISTRATIVE BUSINESS another business wants to enter this city they have to provide source separating materials and that contin- ues. It goes on to the normal provisions and the annual cleanup and franchise fees. We talked about the divergence and we addressed that with indemnity where the corporation will indemnify us on any fines that occur. We want to insure that the City enjoys the current values of the low rates, but we wanted to tie it to the market service. The rate we currently enjoy continues for 18 months and we look at annual adjustments of the rate every 12 months which will be 80% of the CPI based on the market place; etc. He stated they would be eliminating what is known as a balancing fund and currently what we have under the cost plus franchise agreement; etc. Discussion followed: Scavenger Co. has a presen- tation, the Council has already seen, that could again be presented; Councilman Yee is bothered with the way the franchise is structured, for 18 months from now we are going to kick in a new rate with the cost of living index; the way it is going it will be a 3% or 5 % increase, so we can expect a rate increase and then a year later - same thing happens; then the third year you are going to take the average of 32 agen- cies; no, staff is saying it will not exceed those agencies fees; Assistant City Attorney Snodgrass stated there is the benchmark that would occur in the year 2000, the way it will work, March of that year, the franchise would have a rate not to exceed the comparable rate averaged out of the benchmark cities and it would be examined by staff and then go to the Council, so it is a request they have submitted that will be acted upon but, there is no way Council can reject it; the Council can take them into account; concern over the size of cans for seniors being at a lower rate; Councilman Yee stated the 15% increase will not go down, so we can expect at least 15% or more assuming everyone else does their own thing and it will escalate through the years; the Scavengers must assume the debt for the facility and will have that to maintain and will offer more recycling abili- ties for us; Councilman Yee had concern about a 20 year and ten year option, could we approve this concept then every year we adjust it to a new aver- age; his concern is the history of the rate change in the last ten years; Attachment E was a document put together that said let's take a look at what the costs AGENDA ACTION TAKEN l~ _ADMINISTRATIVE BUSINESS 3. Resolution - Continued. 6/25/97 Page 13 ADMINISTRATIVE BUSINESS were that the Scavengers had in comparison to the CPI and at first glance you say over the period of time 1989-1996 the rates went up 26.84%, however, the operating went up 64% within that percentage and it is three times the CPI; those costs were increased at Ox Mountain and they are controlled by the County and BFI and the County is the control- ling jurisdiction and there is a 7% factor in the franchise and that 20% is still twice the CPI; back in 1990 we started adding curbside service, so there was a lot of front end costs for the containers and the trucks; etc. Mr. John Moore stated he represented recyclers throughout the State of California, unfortunately what is typical, he was hired on Monday and he finds himself asking for more time to work with the City in a study session to present their position on the franchise. He felt Council first had to give careful thought to input from the recyclers other than where the MRF is the best or if there are other ways to meet the 50% and keep rates low. Maybe you don't have the same concerns about whether it goes 30 years and leaves something in place and you may want to test the market place and all of those options are available to you if you don't first pre- sume the MRF is needed for the diversion. If you speak to the business community, you target your large producers and educate the debris generators on how to source separate and you find there is an active recycling that does it already. An interested business community would like to have them pres- ent, because we save recycling costs and they have incentives not to go to the landfill. Often times the Scavengers have it in the rate struc- ture which is cost and conversion, such as in con- struction and demolition, you will find the recyclers meet the needs and the haulers never have and won't do it. He asked Council to keep the public hearing open and meet with the recyclers one more time in a study session and he will bring his businessmen, recyclers and industry representatives throughout the State that will give you alternatives to the proposal to align a MRF, for there are alternatives to the MRF. If the concern is to meet the diversion rate in the year 2000 and not put recyclers out of busi- ness, and say in the solid waste ordinance we will only allow collection of material if the collector diverts 50% or more from landfill and you have AGENDA ADMINISTRATIVE BUSINESS 3. Resolution - Continued. 6/25/97 Page 14 ACTION TAKEN ADMINISTRATIVE BUSINESS something to enforce. In the present franchise agreement there is no requirement that they must divert 50%, what it says instead is an indemnifica- tion if in the year 2000 you are assessed, we will pay it for you. The law is clear that you cannot indemnify against future acts, and there are pending court cases; etc. Discussion followed: Vice Mayor Mullin was in- trigued by the comment that recyclers, if allowed to operate, could divert 50% of what they collected would go to recycling, and that the Scavengers have not made the commitment to recycle the 50%, yet the recyclers are picking up recycling and the Scav- engers are picking up everything which is two dif- ferent standards; the City can mandate that at least 50% of what the recyclers collect has to be recy- cled; Mr. Moore stated the argument is always made by the franchisee that the resident rates have to be increased and that is not true; is there a clean MRF; it is not improbable to have a transfer operation and put into bins that each business uses; Councilman Datzman sated Council did sit down with concerned parties at a study session, and as a result there was an agreement to have a follow-up meeting to discuss further in an open session; there was a meeting and now there is an eight page letter and he is wonder- ing what happened between then and today; Mr. Moore was told the study session was on the fran- chise, not the ordinances, but WRT was asked to respond to the proposal on the table and how do you like the MRF, so the recyclers thought there would be further discussion for it was not on the agenda; there was not a very effective outreach to the people he represents, but they will be at a meeting if it is called by Council; upon questioning Mr. Moore stated he was also a trial lawyer; can you tell the City how to deal with violators; one way to do it is to regulate the franchise, but there is nothing to say that you have to have an exclusive franchise contract and could write a non-exclusive contract where anyone who hauls must sign on the franchise and the diversion and make a reporting requirement that they are doing it and impose fees; etc. Mr. John Pugliaresi, 309 Hazelwood, stated he was employed by Waste Resources, he is a rate payer, and has a lot of questions about the franchise, some of which are detailed and he is curious whether there AQENDA A~I!QN TAKEN J~ ADMINISTRATIVE BUSINESS 5. Resolution - Continued. 6/25/97 Page 15 ADMINISTRATIVE BUSINESS is an intention to continue the public hearing. He noticed that only cities with exclusive franchises were included, and Santa Clara is not included and one of the cities serviced by the Scavengers, Bris- bane, is not included that made him curious, proba- bly because Brisbane has not gone up like S.S.F. in rates. The cities selected, have disposal costs by ton which is 50 to 100% higher than we are paying here and that is why the survey came up with lower rates. He heard talk about the diversion MRF, how much is that going to cost. So, we are about to enter into a 30 year agreement and we don't know how much it is going to cost. Mayor Fernekes told Mr. Pugliaresi to make his presentation and ask his questions and we will re- spond. Mr. Pugliaresi stated this facility will be on a dif- ferent piece of land and they will acquire it and build the facility and be paid by the rate payers over 30 years. After the end of the term who owns it! The Scavengers, they have a piece of property worth $50 million the rate payers have paid for - what is coming back to the rate payers. He presumes this will require Brisbane to come in, is that for the 30 years and what happens in ten years will the Scaven- gers ask you to pay for the entire facility. This was mentioned, about what would happen if the CPI dropped, if there was a decline, and it was men- tioned that 5 % of the neighboring cities would lower the rate, but there is no provision in the franchise that the rates would drop. In addition there was some mention that this could be a very tight fran- chise agreement - how tight can it be if the Scaven- gers are willing to give us $1 million. City Manager Wilson stated many of the questions that the gentleman asked are business questions that should be directed to the Scavengers because the city's policies don't question what their costs are. They have an obligation to provide a market rate and the detailed question, how much does the MRF cost the Scavengers and who is going to own it those are business questions that are irrespective of costs for buying land, for this is private industry. The questions are valid, but should be directed to the Scavengers, but from a rate payers stance we are saying meet our public policies and do it at the AGENDA ACTION TAKEN ADMINISTRATIVE BUSINESS 3. Resolution - Continued. 6/25/97 Page 16 ADMINISTRATIVE BUSINESS market rate and provide the services we need. Now, there were other comments by the previous speakers who did not appreciate getting the last minute document. They did not notify the entire industry, only those registered in the City. He related: he did receive a letter from an organi- zation that conducts business with the City; the City encourages competition; there is not a designated recycler, but anyone that deals with the source separation may be one; looking at tonight's ordi- nances anyone can be a recycler; if you are a source recycler then you shouldn't be striving for a 50%, for you could have a 100%, but it is the Scavengers that are indemnifying the City; there are some other issues staff has to take a look at; he agrees acting on the ordinances is unadvisable. Councilman Yee suggested leaving the public hear- ing open and continue it to a future date where staff has opportunity to review. He suggested that staff meet with Mr. Moore before the meeting of Coun- cil. Vice Mayor Mullin stated there were legal issues that the City Attorney has not had an opportunity to respond to and that portion should be held open. He suggested two weeks, rather than an extended period of time. Mr. Moore said in a month he could fill a room, but he is not sure that is a strategy that meets the needs of all of us. He stated the whole idea behind the agreement was that the private recyclers would meet and come up with a potential solution, he read the staff report and apparently that did not happen. It appears that the recyclers were not aware there was going to be a follow-up meeting to come up with an agreement or disagreement position, with respect to the continued option in addition to the exclusive franchise. It is clear to him that a change in the ordinance will affect which franchise agree- ment we will go forward with and to that degree they are tied. It seems one is connected to the other, a franchise that will go forward that will limit private recyclers; etc. Councilman Datzman related: with all due respect to all involved, when you talk about setting public policy and parameters it is not unusual that people say we want to play over here instead; he thinks AGENDA ACTION TAKEN ADMINISTRATIVE BUSINESS 5. Resolution - Continued. 6/25/97 Page 17 ADMINISTRATIVE BUSINESS that we did have a right and a genuine interest in sitting down as a matter of public policies and we are trying to accomplish this, if that occurs in a group setting; he is hoping the sessions held are open sessions and are going to have results; we get some intelligent people that understand the issues and the problems and if that is given a positive vent, if not then, we still have a decision to make and recommends continuing the issue. City Manager Wilson stated he hoped to get together with Mr. Moore as early as Monday. Discussion followed: does it balance with the bene- fits derived; a million dollars under the current terms will come back; Councilman Yee is concerned that the 20 gallons on the rate schedule for staff took neighboring cities of Burlingame, Daly City, Millbrae and San Mateo each have under 20 gallons and their rate is lower than ours; look at page 11 of the agreement, paragraph 6.3, if some item comes up they can renegotiate if the CPI goes up and ex- traordinary increases are found, then they can rene- gotiate; City Manager said they still have to com- pare to benchmark cities, but if something unique happened they can come in and negotiate; Council- man Yee stated the paragraph talks about potential increases in Scavenger costs, but what if this is decreased and AB 939 repealed; there is no assump- tion the State is going to do it, but say this is a market driven scenario; Councilman Yee feels the agreement should cover both sides of the coin; Vice Mayor Mullin suggested adding, if there is a down- ward spike or a landfill becoming available, so there is that potential; City Attorney stated the TCI agree- ment was lowered, so it is not inconceivable to change it to increases and decreases, but didn't know whether that language could affect their ability for financing; Mr. Tony Cove stated the Scavengers need the bank to support them with a letter of credit, which is crucial to financing, therefore they need the strength of this agreement; they think it is doable, but they have voiced caveats and decreases calls into question our performing, for this will provide tight years for this Company and it could be disastrous for this financing. AGENDA ACTION TAKEN ADMINISTRATIVE BUSINESS Resolution - Continued. RECESS: RECALL TO ORDER: Councilman Penna Returned to the Podium: LEGISLATIVE BUSINESS 14. Motion to waive reading and introduce ordinances reflecting additions and deletions to various City ~-/~ positions. /a~o ~ AN ORDINANCE AMENDING SECTION 3.12.010 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE TO REFLECT ADDITIONS AND DELE- TIONS RELATING TO THE PUBLIC WORKS DEPARTMENT REORGANIZATION AND A PO- LICE DEPARTMENT POSITION RECLASSIFI- CATION 15. Motions to waive readings and introduce ordinances on junk collectors. .5' 2- 2. "/ AN ORDINANCE AMENDING CHAPTER 8.16 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE RELATING TO SOLID WASTE DISPOSAL AN ORDINANCE AMENDING CHAPTER 8.28 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE RELATING TO RECYCLABLE MATERI- ALS AN ORDINANCE AMENDING CHAPTER 6.16 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE RELATING TO BUSINESS LICENSE TAX- ES PAYABLE BY PRIVATE RECYCLING AGENTS AN ORDINANCE AMENDING CHAPTER 6.56 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE RELATING TO PRIVATE RECYCLING AGENTS ADMINISTRATIVE BUSINESS M/S Yee/Mullin - To continue Item 13 and 15 to the 7/9/97 meeting. Carried by unanimous voice vote. Mayor Fernekes declared a recess at 11:32 p.m. Mayor Fernekes recalled the meeting to order at 11:48 p.m. Councilman Penna returned to the podium at 11:48 p.m. LEGISLATIVE BUSINESS City Clerk Battaya read the title of the ordinance in its entirety. Assistant City Manager Moss gave a brief staff report. M/S Yee/Muilin - To waive reading and introduce the Ordinance. Carried by unanimous voice vote. Continued by Motion under Item 13. 6/25/97 Page 18 AGENDA ACTION TAKEN ITEMS FROM COUNCIL 5. Appointments to the Conference Center Authority. 17. Resolution opposing passage of AB 158 on cardrooms. S I 0 3 A RESOLUTION OPPOSING PASSAGE OF AB 158 AND AUTHORIZING THE CITY MANAGER TO PROVIDE INFORMATION TO THE CALI- FORNIA LEGISLATURE GOOD AND WELFARE ADJOURNMENT: ITEMS FROM COUNCIL By a four to one written vote George Chimenti was appointed to serve as the visitor serving business representative. M/S Yee/Penna - To appoint Jerri Clark as the restaurant representative. Carried by unanimous voice vote. Tabled under Agenda Review. GOOD AND WELFARE No one chose to speak. M/S Yee/Penna - To adjourn the meeting. Carried by unanimous voice vote. Time of adjournment was 12:36 a.m. RESPECTFULLY SUBMITrED, Barbara A. Battaya, City Clerkffj/ City of South San Francisco APPROVED. J/oseph ~. Fernekes, Mayor ~City of South San Francisco 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. 6/25/97 Page 19