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HomeMy WebLinkAboutMinutes 1991-09-25 Mayor Jack Drago Council: Richard A. Haffey Gus Nicolopulos John R. Penna ~--Roberta Cerri Teglia MINUTES City Council Municipal Services Building Community Room September 25, 1991 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 25th day of September 1991, at 6:30 p.m., in the Municipal Services Building Community Room, 33 Arroyo Drive, South San Francisco, California. Purpose of the meeting: 1. Closed Session for the purpose of the discussion of personnel matters, labor relations, property negotiations and litigation. Barbara A. Battaya, City Cler~/ City of South San Francisco Dated: September 19, 1991 AGENDA 'CALL TO ORDER: (Cassette No. 1) ROLL CALL: ACTION TAKEN 6:38 p.m. Mayor Drago presiding. Council present: Council Absent: Haffey, Nicolopulos, and Drago. Penna, and Teglia. Closed Session for the purpose of the discussion of personnel matters, labor relations, property negotiations and litigation. Councilman Penna Arrived: RECALL TO ORDER: Council adjourned to a Closed Session at 6:38 p.m., and Mayor Drago announced that pursuant to Government Code Section 54956.a the Council would discuss McKenzie etal vs. City of S.S.F. Case No. USDA C-90 2461RHS; and City of S.S.F. vs. Cypress Lawn Cemetery Assoc. Superior Court Case No. 354277. Councilman Penna arrived at the meeting at 6:40 p.m. Mayor Drago recalled the meeting to order at 6:55 p.m., all Council present, no action was taken; and announced that the Council had also discussed the Westborough Court case. M/S Nicolopulos/Penna - To adjourn the meeting. 9/25/91 Page I A G E N D A A C T ]' 0 N T A K E N ~-~{~!'"']78 Carried by unanimous voice vote. kDJOURNMENT: Time of adjournment was 6:55 p.m. RESPECTFULLY SUBMITTED, Barbara A. Battaya, City Clerk/ City of South San Francisco /--Jack Drago, May~r /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 communications, arguments, and comments are recorded on tape. The tape and documents related to the items are on file in the Office of the City Clerk and are available for inspection, review and copying. 9/25/91 Page 2 Chairman Jack Drago Boardmembers: Richard A. Haffey Gus Nicolopulos John R. Penna Moberta Cerri Teglia M I N U T E S SOUTH SAN FRANCISCO CAPITAL IMPROVEMENTS FINANCING AUTHORITY Municipal Services Building Community Room September 25, 1991 NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of California, that the South San Francisco Capital Improvements Financing Authority of the City of South San Francisco will hold a Special Meeting on Wednesday, the 25th day of September 1991, at 7:05 p.m., in the Municipal Services Building Community Room, 33 Arroyo Drive, South San Francisco, California. Purpose of the meeting: Resolution authorizing issuance of 1991 Revenue Bonds relating to the conference center project, authorizing and directing execution of related indenture of trust and conference center use agreement, approving official statement, appointing bond counsel and authorizing official action. A RESOLUTION AUTHORIZING ISSUANCE OF NOT TO EXCEED $5,900,000 PRINCIPAL AMOUNT OF 1991 REVENUE BONDS RELATING TO THE CONFERENCE CENTER PROJECT, AUTHORIZING AND DIRECTING EXECUTION OF RELATED INDENTURE OF TRUST AND CONFERENCE CENTER USE AGREEMENT, APPROVING OFFICIAL STATEMENT, APPOINTING BOND COUNSEL AND AUTHORIZING OFFICIAL ACTION ~ty Cler~ City of South San FrancisCo Dated: September 19, 1991 AGENDA CALL TO ORDER: (Cassette No. 1) ROLL CALL: Resolution authorizing issuance of 1991 Revenue Bonds relating to the conference center project, authorizing and directing execution of related indenture of trust and conference center use agreement, approving official statement, appointing bond counsel and ACTION TAKEN 7:09 p.m. Chairman Drago presiding. Boardmembers present: Boardmembers Absent: Haffey, Nicolopulos, Penna, Teglia, and Drago. None. Finance Director Margolis stated that the Authority was being asked to adopt a resolution which would authorize several steps which were necessary to authorize marketing of bonds for the Conference Center in an amount equal to $5,900,000. She stated that it was not to exceed that number which allows some changes in 9/25/91 Page i AGENDA Resolution - Continued. authorizing official action. A RESOLUTION AUTHORIZING ISSUANCE OF NOT TO EXCEED $5,900,000 PRINCIPAL AMOUNT OF 1991 REVENUE BONDS RELATING TO THE CONFERENCE CENTER PROJECT, AUTHORIZING AND DIRECTING EXECUTION OF RELATED INDENTURE OF TRUST AND CONFERENCE CENTER USE AGREEMENT, APPROVING OFFICIAL STATEMENT, APPOINTING BOND COUNSEL AND AUTHORIZING OFFICIAL ACTION ACTION TAKEN the market in rating which was yet to be determined. She stated that the amount was made of $500,000-550,000 in a reserve fund to provide for the protec- tion of the bond holders with about $150,000-$200,000 in cost issuance which would leave $5,200,000 for construction of the facility which is equal to the bids received last week for the Conference Center. She stated that the Authority would issue the bonds consistent with the steps taken so far in developing the Authority, tonight you are not actually approving the issuance but simply the pricing and related documents that allow that to occur. She stated that the actual sale of the bonds to the underwriters would be at the 10/9/91 meeting. She stated that the bonds would be issued under the Marks-Roos Local Pooling Act because the general law does not provide a basis to issue bonds for the Conference Center, and this was very advantageous because of its flexibility and makes the bonds rely solely on the proceeds from the special transient occu- pancy tax. She stated that this Act had in fact gotten some other cities into trouble because they tried to stretch its bonds, but staff was being very careful in structuring it and providing specific security for this issue. She continued, that security was in the form of the Conference Center Agreement which will be signed between the Authority and the City. She stated that the Agreement allows for the use of the Conference Center - the Authority financed improvements in return for the special T.O.T. equal to the debt service. She stated that the use agreement was specifically defined that that is the source of revenue and does not in any way commit the City to use any other source of funds. She stated that specific items that would 9/25/91 Page 2 A G E N D A A C T I 0 N T A K E N ~)i~'~ Resolution - Continued. be approved tonight would be the execu- tion of the indenture trust, the Conference Center Agreement, approval of the official statement, appointment of bond counsel and authorize staff to take action in that regard. Mr. Lou Dell'Angela, 460 Gardenside Ave., expressed concern: over a short staff report with an 80-100 page attachment; that the issue was being rushed through and wrapped up before the 11/5/91 elec- tion; that parking and marketing studies had not been done; a comprehensive marketing study had not been done on the Conference Center; a detailed parking use study had not been done; what was the underwriter being paid by the City, as well as the bond counsel; on whether the underwriters and the bond counsel had experience in doing a conference center that is in a rental building where the City does not have the security of the land and the building to guaranty the particular bonds; if the City went into a default position who pays; if the con- ference center was not marketed com- petitively in the market and Measure C does not cover those costs - where is the security and who is going to cover those costs; what was the role of the Redevelopment Agency as a partner in this operation in terms of guaranties on the bonds if they go into default; what Section 5 of the resolution meant in reference to the Executive Director's Secretary and the Chair being able to do anything to consummate this; if the $550,000 figure related to a 20 year period, then the City was looking at $11,000,000 investment; and why such a high limit on this particular facility; whether approvals were required from the owner of the building in reference to the bonds; that this whole issue had been rushed through since 1989; that people in the community were angry and feeling betrayed because this is not what they expected; etc. Mr. Bill Madison, Jones, Hall, Hill & 9/25/91 Page 3 AGENDA ACTION TAKEN 1. Resolution - Continued. White, responded to what he considered to be three questions posed by Mr. Dell'Angela: his firm's experience with the conference centers under unusual cir- cumstances; the meaning of Section 5; and if there was any approval required from the owner of the building. Mayor Drago stated that the other question was the firm's past experience with conference center sale of bond or other operations requiring lease ability. Mr. Madison related: he had been involved for the past year by giving advise on the extension of the lease; had come up with the structure that took advantage of the Bond Pooling Act to create an authority which would issue the bonds, leave the existing lease in place and pledge the special T.O.T.; he was not aware of any other conference center with these special circumstances, and his firm had not had experience with conditions, but had extensive experience in marketing and special tax financing; Section 5 deals with the closing for any taxes and financing and the 20 or 30 ancillary documents required to be executed; the existing owner did not have to be involved in any way; ; the City was in complete control, and the improvements do revert to the owner after the end of 45 years - which is his only interest, and he has no approval rights. Mayor Drago questioned if the security of the land and building indicate a shadow on the bond salability. Mr. Madison stated that it did not, and the source of security of the financing was the proceeds of the special T.O.T., and was the only liability of the City. Mayor Drago questioned if any other funds could be encumbered should the surcharge of $2.50 a room be below the projected $500,000 a year. 9/25/91 Page 4 AGENDA ACTION TAKEN 1. Resolution - Continued. ADJOURNMENT Mr. Madison stated no, there were no other funds of the City that could be taxed or encumbered in any way. He stated that the risk factor is designed to be pointed up to the bondholder - that all he gets is the T.O.T. Discussion followed: that the action before the Body was to give the authority to go out and sell the bonds; 10/9/91 meeting would put a price on the bonds and the construction, further financial data will be provided, and a decision will be made; Mr. Dell'Angela still felt that there could be a deficit posi- tion with the the Measure C revenue wherein the City would have to underwrite the Center's operations; that bond underwriters did not have prior experience in this type of bond issuance; that there was a cap on the debt service which was less than 5% of the revenues being generated; that the official sta- tement was in some ways analogous to a marketing brochure to advise prospective buyers of the bonds and conveys infor- mation to the potential buyers to make them aware of the circumstances, i.e., occupancy levels, historical background, and that the only pledge being made to the retirement of the debt services is the special T.O.T. Vice Chairman Nicolopulos felt the bond sale should be done in house. M/S Haffey/Teglia - To adopt the Resolution. RESOLUTION NO. SSF-1-91 Carried by majority roll call vote, Boardmembers Penna and Nicolopulos voted ~0. Time of adjournment was 7:46 p.m. 9/25/91 Page 5 AGENDA ACTION TAKEN --RESPECTFULLY SUBMITTED,  t Clerk Barbara A. Battaya, o:~,:~y~i y South San Francisco Capital Improvements Financing Authority APPROVED. ~ rago, Ch~air~n ~F~tahnc~na~ FA~~~ Capital Improvements The entries of this Authority meeting show the action taken by the South San Francisco Capital Improvements Financing Authority to dispose of an item. Oral communications, arguments, and comments are recorded on tape. The tape and documents related to the items are on file in the Office of the City Clerk and are available for inspection, review and copying. 9/25/91 Page 6 Mayor Jack Drago Council: Richard A. Haffey Gus Nicolopulos John R. Penna --Roberta Cerri Teglia AGENDA CALL TO ORDER: (Cassette No. 1) ROLL CALL: PLEDGE OF ALLEGIANCE INVOCATION: AGENDA REVIEW 9RAL COMMUNICATIONS MINUTES City Council Municipal Services Building Community Room September 25, 1991 ACTION TAKEN 7:50 p.m. Mayor Drago presiding. Council present: Council absent: Haffey, Nicolopulos, Penna, Teglia, and Drago. None. The Pledge was recited. Rev. Bowdish, St. Elizabeth's Episcopal Church, gave the invocation. AGENDA REVIEW City Manager Armas stated that there were no changes to the Agenda. ORAL COMMUNICATIONS Ms. Jan Pont, 116 Belmont Ave., expressed her concerns on the Terrabay Project: that Mr. Dean wanted to build all of his houses and not do the commercial buildings; that he had agreed to do the commercial portion after completion of the 300 houses; to urge Council to make him adhere to the agreed upon schedule and agreed to amenities and taxes. She questioned when the new fire station be supplied with equipment and manpower. City Manager Armas stated that the station would not be opened until the Hillside Blvd. Extension was completed. Ms. Pont reiterated her concern that Mr. Dean make all payments and not push costs onto the City. Vice Mayor Nicolopulos explained that the problem was with the Federal Reserve Board by their not loosening up credit, and that it was hurting the whole country. 9/25/91 Page i AGENDA ACTION TAKEN --ORAL COMMUNICATIONS COMMUNITY FORUM ORAL COMMUNICATIONS Councilwoman Teglia stated that the Council had not taken action on the item at the study session, but the question was whether the City would be flexible in view of Mr. Dean's problems in getting financing with the current market place. She stated that staff had to develop a mechanism whereby Mr. Dean was on the hook in terms of the amenities not being forgiven. City Manager Armas stated that there will be a public hearing the first of the year when the item came before the Council for public input. Councilman Penna stated that there was a suggestion made to have the Developer have his profits from the homes as a further inducement for him to complete the commercial properties. Vice Mayor Nicolopulos felt that the Developer should be given consideration because of the ten years of delays due to the butterflies and their environment. COMMUNITY FORUM Councilman Penna stated that the Chamber of Commerce had sent out letters seeking candidates for their volunteer of the year award. He stated that on 11/6/91 Economic & Community Development staff members Susan Kalkin and Norma Fragoso would give presentations on the economic situation and on the downtown rehabilita- tion program; and Director of the Conference Center Sandra Carl would address the conference center for the Chamber. Councilwoman Teglia related that at the Criminal Justice Council meeting last week there was discussion of a new master plan for the County for jail faci- lities, and a report listed three sites: Redwood City, San Bruno where the S.F. County Jail is, and Polhemus Road for a jail. 9/25/91 Page 2 A G E N D A A C T I 0 N T A K E N ~ ;~' ':. ~i ~ ' ]ONSENT CALENDAR 1. Motion to approve the Minutes of the Regular Meeting of 9/11/91. 2. Motion to confirm expense claims of 9/25/91. e Motion to adopt an ordinance on the Public Employees' Retirement System. e AN ORDINANCE AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Resolution approving budget recom- mendations for the Downtown Commercial Rehabilitation Program. Be A RESOLUTION APPROVING RECOMMENDATIONS FOR THE DOWNTOWN COMMERCIAL REHABILITATION PROGRAM Resolution amending the 1991-92 budget to appropriate $79,210 for capital improvements in the Willow Gardens Parks and Parkways Maintenance District, and approv- ing a budget amendment to the Capital Improvement Budget in the amount of $9,000.00. A RESOLUTION APPROVING BUDGET AMENDMENT 92-7 TO THE 1991-1992 OPERATING BUDGET, AND 92-CIP-1 TO THE 1991-1992 CAPITAL IMPROVE- MENT BUDGET e Resolution amending the 1991-92 budget to appropriate $1,341,356 for capital improvements in the West Park 1 & 2, and 3 Parks and Parkways Maintenance District, and appropriating $89,228 for enhanced maintenance. A RESOLUTION APPROVING AMENDMENTS CONSENT CALENDAR Approved. Approved in the amount of $1,615,069.64. ORDINANCE NO. 1105-91 Councilman Penna abstained on the vote. RESOLUTION NO. 121-91 RESOLUTION NO. 122-91 RESOLUTION NO. 123-91 9/25/91 Page 3 ACTION TAKEN AGENDA CONSENT CALENDAR 6. Resolution - Continued. 92-8, AND 92-9 TO THE 1991-1992 OPERATING BUDGET, AND AMENDMENTS 92-CIP-2 AND 92-CIP-3 TO THE 1991-1992 CAPITAL IMPROVEMENT BUDGET e Motion to accept the Aircraft Noise ¢~k Insulation Project Phase V(b) as ~ complete in accordance with the plans and specifications. e Resolution accepting the grant offer from the Federal Aviation Administration, authorizing an agreement, and authorizing con- sulting services agreements, and resolution approving budget amendment. A RESOLUTION AUTHORIZING ACCEPTANCE OF A GRANT AGREEMENT BETWEEN THE CITY OF SOUTH SAN FRANCISCO AND THE FEDERAL AVIATION ADMINISTRATION A RESOLUTION APPROVING AMENDMENT 92-CIP-4 TO THE 1991-1992 CAPITAL IMPROVEMENT BUDGET e Motion to accept the Aircraft Noise Insulation Project Phase V(b) as ~ complete in accordance with the plans and specifications. CONSENT CALENDAR Removed from the Consent Calendar for discussion by Councilwoman Teglia. Removed from the Consent Calendar for discussion by Councilwoman Teglia M/S Nicolopulos/Penna - To approve the Consent Calendar with the exception of Items No. 7 and 8. Carried by unanimous voice vote with the exception of Item No. 4, wherein Councilman Penna abstained on the item. Director of Public Works Parini explained that this was a straight for- ward matter and all the work done had been on 276 homes and two schools. Councilwoman Teglia stated that some homeowners are under the misconception that this is a loan to pay back and not a grant, and requested staff to address this in future. 9/25/91 Page 4 AGENDA ACTION TAKEN 7. Motion - Continued. Resolution accepting the grant offer from the Federal Aviation Administration, authorizing an agreement, and authorizing con- sulting services agreements, and resolution approving budget amendment. A RESOLUTION AUTHORIZING ACCEPTANCE OF A GRANT AGREEMENT BETWEEN THE CITY OF SOUTH SAN FRANCISCO AND THE FEDERAL AVIATION ADMINISTRATION A RESOLUTION APPROVING AMENDMENT 92-CIP-4 TO THE 1991-1992 CAPITAL IMPROVEMENT BUDGET ADMINISTRATIVE BUSINESS 9. Motion to a) select the Hickey ~( Boulevard site as the locally pre- ferred BART site; and b) authorize M/S Teglia/Haffey - To accept the Aircraft Noise Insulation Project Phase V(b) as complete. Carried by unanimous voice vote. Director of Public Works Pariani stated that this would continue the grant program and had nothing to do with the recent agreement with San Francisco Airport. Councilwoman Teglia stated that this was for $2,000,000 and was outside of the agreement with S.F.I.A, and that the City would seek matching funds for this grant from S.F.I.A. She explained why the City was receiving $2,000,000 rather than the $1,000,000 from the Federal Aviation Administration. Discussion followed: the neighborhoods affected by Phase VI; noise levels of 65-70 that continue into Brentwood and include across E1Camino Real in Francisco Dr. and Park Haven; that 200 homes would be done this year; would like to see residents reimbursed for having insulated their homes in the impacted area; that there were 6,700 units to be done; develop a program to get the homes insulated faster; should apply pressure on the AirpOrt for more funding; have a study session to create a better cohesive with other cities to address this problem; etc. M/S Haffey/Teglia - To adopt the two Resolutions. RESOLUTION NO. 124-91 RESOLUTION NO. 125-91 Carried by unanimous voice vote. ADMINISTRATIVE BUSINESS Mayor Drago stated that Kaiser Hospital wanted to go on record of being in sup- port of the recommendation to Council, 9/25/91 Page 5 --ADMINISTRATIVE BUSINESS 9. Motion - Continued. transmission of the letter to the BART Policy Committee. ADMINISTRATIVE BUSINESS and a letter had been received to that effect which also commented on the traf- fic density adjacent to their hospital. Chief Planner Solomon stated that based on the presentation of the study session, staff was recommending the Hickey Blvd. site for the station and wanted authorization for transmission of the letter. Councilman Penna questioned how this affected the Treasure Island Trailer Court. Chief Planner Solomon stated that the site was not located at the Trailer Court and it would not be affected. Councilman Haffey noted Council's pre- ference for an underground full subway through South San Francisco was mentioned twice in the letter. Councilman Penna stated that if it turned out that BART would not be underground and was to be in a pit, why not think of using Caltrain or public transportation as being more conducive to S.S.F.'s health and welfare by alleviating traffic and delivering people to our City. Mayor Drago stated that the City had always been in support of a full line going to the Airport and there were six alternatives. Councilman Haffey stated that the purpose of the letter was to mitigate and influence what is going to happen to S.S.F. Mr. Dell'Angela stated that a station at Chestnut Ave. was in violation of the City's General Plan Policy that had been drafted in 1984 - which was still in existance and should be mentioned. He stated that this was an important pro- ject and the City did not need environ- 9/25/91 Page 6 AGENDA ACTION TAKEN --ADMINISTRATIVE BUSINESS 9. Motion - Continued. ADMINISTRATIVE BUSINESS mental problems, and needed to stay flexible depending upon what was learned from the EIR. He stated that he had not heard anything about proceeding with the second stage of the study during the study session, and he objected to wasting money prematurely and felt the property owners should pay the cost for the City. He felt that it was also premature to preapprove the area to high density, which would escalate the land values, before the public improvements were in as he felt it would contribute to congestion and make it more expensive for the BART station to be moved. M/S Haffey/Teglia - To select the Hickey Boulevard site as the locally preferred BART site, and authorize transmission of the letter to the BART Policy Committee. Mayor Drago stated that he wanted staff to research what Mr. Dell'Angela had said about the General Plan Policy still being in effect. Chief Planner Solomon stated that that was true. Mayor Drago stated that he wanted that Policy incorporated into the letter. He stated that there were reasons for the higher density which BART wanted, as well as for the housing needs. He stated that the study was necessary because BART on its own will not even consider the sta- tion because of the time element. City Manager Armas stated that the study mentioned in the letter to Jane Baker is to consider the land use impacts between the two stations; and the other study looks at environmental analysis for out- side funding. Carried by unanimous voice vote. 9/25/91 Page 7 AGENDA ACTION TAKEN ADMINISTRATIVE BUSINESS 10. Motion to accept the findings of approval for V-91-315 to allow a front yard less than the required 15 feet and a driveway apron less than the required 20 feet for a two-story addition to a single family home at 653 Ash Avenue. 11. Resolution authorizing the execu- tion and delivery of conference center use agreement, and official statement and authorizing official actions. A RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF CONFERENCE CENTER USE AGREEMENT, AND AUTHORIZING OFFICIAL ACTIONS ADMINISTRATIVE BUSINESS M/S Haffey/Penna - To accept the findings of approval for V-91-315. Carried by unanimous voice vote. Councilman Haffey left the podium at 8:50 p.m. Director of Finance Margolis explained the actions previously taken this evening by the Authority, and stated that they had been taken to take care of the debt service. Councilman Penna stated that he had questioned, although it had not been answered, the total costs for the con- ference center exceeding Measure C funds and if there is a shortfall, then the City winds up as being the underwriter; staff could only estimate the variable costs and had predicated revenue which could end up with a shortfall because staff could be incorrect in their predic- tions - then the City is the underwriter of the project. Finance Director Margolis stated that it was an enterprise that funds itself, and she had a hard time accepting the City being the underwriter because of all operations and budgets being reviewed by the Council from time to time; and this was established as a self supporting operation. She stated that Council had a choice to adjust the predictions on operations. City Manager Armas stated that the Council gives specific direction on the budget and given Councilman Penna's sce- nario of a shortfall position - then the Council would take appropriate action if there was not a surplus position. Councilman Penna expressed concern that in voting on this, he could be voting on 9/25/91 Page 8 AGENDA ACTION TAKEN ADMINISTRATIVE BUSINESS 11. Resolution - Continued. ADMINISTRATIVE BUSINESS a deficit position and there was no bene- fit to the City from the tax money coming into the City. Mayor Drago stated that on October 9th there would be a clear financial picture given, and noted that Councilman Penna had supported the conference center two years ago. Councilman Penna stated that he had but not at this site, which was not known at that time. He stated that he was con- cerned that the City was putting in a tremendous amount of money and in twenty years the City would turn it back to the owner after a $20,000,000 investment. He stated that that had no benefit to the City. He stated that he had a copy of the Daily Pacific Builder that listed a City bid with Joe Fernekes being the owner of the conference center property. City Manager Armas stated that he could not speak for the authenticity of that firm's literature on jobs to be put out for bids, so it is evident the firm made an error and it was irrelevant because of nine bidders responding to the City bid. Mr. Dell'Angela stated that he agreed with Councilman Penna, and each time it had been before the City it was a 3-2 vote, and he did not feel that the 10/9 meeting would reveal that much because he was on record in saying this was a bad deal for the City. He stated that the Council was talking about an $11,000,000 issue with $3,000,000 to 5,000,000 in operating costs, and he felt that at some point in time the critical issue was - why didn't the City spent the $20,000,000 to market a brand new faci- lity it owned. He stated that at some point in time if the facility did not pay for itself there was no such thing as a free 9/25/91 Page 9 ADMINISTRATIVE BUSINESS 11. Resolution - Continued. Councilman Haffey Returned to the Podium: ACTION TAKEN ADMINISTRATIVE BUSINESS ride, and he felt the City was going to be struck. He reiterated comments made at the Authority meeting on the cap, and urged the Council to postpone action on this item and invite the public to come to a meeting and comment on this item and then make a decision because if this project defaults there was not marketability for a conference center or any other use for the building on that site. Councilwoman Teglia refutted Mr. Dell'Angela's comment on the lack of sup- port in the community for this project. Mr. Jake Jones stated that he had worked very hard for Measure C, but he had not been told of the cost or the condition of the building, and he suggested instead, to put it on City land and have the hotels pay the City. He stated that he would not support the mud hole that was sinking every year, where if it was a private project which the City would never approve. He stated that a question had been asked of a Councilman - if the building had a cement floor, and he had responded that he had never been in the building. He urged the Council to continue the item and hold a public hearing. Vice Mayor Nicolopulos reiterated his objection to this project and included criticism of the project by Peat, Marwick & Mitchell as auditors of the City. M/S Penna/Nicolopulos - To not adopt the Resolution. Motion failed by roll call vote: Councilmembers Penna and Nicolopulos voted yes; and Councilmembers Teglia and Mayor Drago voted no. Councilman Haffey returned to the podium at 9:35 p.m., and apologized for his 9/25/91 Page 10 AGENDA ACTION TAKEN --ADMINISTRATIVE BUSINESS 11. Resolution - Continued. LEGISLATIVE BUSINESS 12. Motion to waive reading and intro- duce an ordinance approving a con- ference center use agreement with the City of South San Francisco Capital Improvements Financing Authority. AN ORDINANCE APPROVING A CONFERENCE CENTER USE AGREEMENT WITH THE CITY OF SOUTH SAN FRANCISCO CAPITAL IMPROVEMENTS FINANCING AUTHORITY ITEMS FROM COUNCIL ADMINISTRATIVE BUSINESS absence that was due to a meeting with a member of the San Mateo Times. M/S Haffey/Teglia - To adopt the Resolution. RESOLUTION NO. 126-91 Carried by majority roll call vote, Councilmembers Penna and Nicolopulos voted no. LEGISLATIVE BUSINESS City Clerk Battaya read the title of the ordinance in its entirety. M/S Haffey/Teglia - To waive further reading. Carried by unanimous roll call vote. M/S Teglia/Haffey - To introduce the ordinance. Carried by majority roll call vote, Councilmen Penna and Nicolopulos voted RO, ITEMS FROM COUNCIL Councilwoman Teglia stated that the Board of Supervisors would entertain a dissolu- tion of the Harbor District at their meeting on 10/8/91, and asked that the Mayor write a letter asking that action be deferred until this Council could address the issue. City Manager Armas suggested an alter- native to say that the County make what judgment it needs to make in terms of dissolution, and the City was looking to the County's not being responsible for the operation of the Harbor District and communicate that in writing. Mayor Drago stated that he had a letter 9/25/91 Page 11 AGENDA ACTION TAKEN ITEMS FROM COUNCIL GOOD AND WELFARE CLOSED SESSION 13. Closed session for the purpose of discussion of personnel matters, labor relations, property nego- tiations and litigation. ADJOURNMENT ITEMS FROM COUNCIL from Mike Nevin, Chair of the North County Detention and Booking Facilities Committee, requesting the City to again become a member. He appointed Council- woman Teglia as that member. City Manager Armas stated that at the C/CAG meeting two issues would be addressed: Best schools financing, and growth policy as an extension of Bay Vision 2000. He stated that if the Council wanted to discuss this and take a position it could be put on the agenda in October. GOOD AND WELFARE No one chose to speak. CLOSED SESSION Council chose not to hold a Closed Session. M/S Teglia/Penna - To adjourn the meeting. Carried by unanimous voice vote. Time of adjournment was 9:45 p.m. RESPECTFULLY SUBMITTED, ~tay~, City C~I City of South San Francisco APPROVED. J-ck Drago, Mayor ty of Sout~a~Francisco The entries of this Council meeting show the action taken by the City Council to dispose of an item. Oral communications, arguments, and comments are recorded on tape. The tape and documents related to the items are on file in the Office of the City Clerk and are available for inspection, review and copying. 9/25/91 Page 12