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HomeMy WebLinkAboutMinutes 1992-08-12 Mayor John R. Penna Council: Jack Drago Joseph A. Fernekes .... Roberta Cerri Teglia Robert Yee AGENDA CALL TO ORDER: (Cassette No. 1) ROLL CALL: PLEDGE OF ALLEGIANCE AGENDA REVIEW Councilman Yee Requested: -- - Item No. 21 be heard after the Consent Calendar because it affects the public. ORAL COMMUNICATIONS ---COMMUNITY FORUM MI NUTE~~ City Council Municipal Services Building Community Room August 12, 1992 241 ACTION TAKEN 7:50 p.m. Mayor Penna presiding. Council present: Council absent: Drago, Fernekes, Teglia, Yee, and Penna. None. The Pledge was recited. AGENDA REVIEW City Manager Armas stated that there were no changes to the Agenda, however, he was distributing a new Table I for the budget. Director of Finance Margolis stated that she had inform the representatives of the Company as to when it would be heard, and they would not arrive until 9:00 p.m. ORAL COMMUNICATIONS Ms. Joy Ann Wyndler, 321 Granada Dr., stated that last week she had the opportunity, through the City, to accom- pany the E1Camino Jazz Band to the potential sister city Kishiwada, Japan, and expressed her gratitude to the City for allowing the children this worthwhile experience. She presented a gift to the City of a blue vase from Kishiwada. Mayor Penna stated that this was a good example of an exchange through a sister city program. COMMUNITY FORUM Mayor Penna stated it had been brought to his attention that bars on 8/12/92 Page i AGENDA ACTION TAKEN COMMUNITY FORUM CONSENT CALENDAR 1. Motion to approve Minutes of the Regular Meeting of 7/8/92 and Regular Meeting of 7/22/92. 2. Motion to confirm expense claims of 8/12/92. 3. Motion to cancel the regular meeting of 8/26/92. Motion to waive fees for the J-~¥/ Downtown Merchants Assn. for the Celebrate S.S.F. (formerly Art and Wine Festival} event on August 22 and 23, 1992. Resolution approving recommen- dations for the Downtown Commercial Rehabilitation Program for the Landenbach Building, 307- 315 Grand Ave. (Toy Building). A RESOLUTION APPROVING RECOMMEN- DATION FOR THE DOWNTOWN COMMERCIAL REHABILITATION PROGRAM COMMUNITY FORUM windows were starting to appear throughout the community again, and wanted staff to see what could be done to curb the placement because it was an unsafe condition. Vice Mayor Teglia stated that the Council had looked at barbed wire this side of the freeway and in residential areas because it was counter productive to a good living environment. She suggested bars on windows and barbed wire come back to Council as an ordinance so these would not cause a major blighting influence. Councilman Drag. stated that the storage area on top of Westborough behind Goldilock's, has barbed wire and the County had erected a barbed wire fence on Junipera Serra. CONSENT CALENDAR Approved. Approved in the amount of $2,251,958.89. So ordered. Removed from the Consent Calendar for discussion by Mayor Penna. RESOLUTION NO. 96-92 8/12/92 Page 2 AGENDA ACTION TAKEN CONSENT CALENDAR 6e Resolution authorizing an agreement with Smith Randlett, Foulk and _q-~O Stock, Inc. for construction sur- veying for Baden Avenue Recon- struction in the amount of $21,000. A RESOLUTION AUTHORIZING EXECUTION OF AGREEMENT FOR CONSTRUCTION SUR- VEYING FOR BADEN AVENUE RECON- STRUCTION PROJECT e Resolution awarding construction contract for City Hall exterior painting to Avlonitis Painting Co. as the lowest responsible bidder in the amount of $27,400. A RESOLUTION OF AWARD OF CONTRACT FOR THE CITY HALL EXTERIOR PAINTING Be Resolution awarding construction contract to James Chalmers as the lowest responsible bidder in the amount of $48,022 for City Hall and Grand Avenue Library Parking Lot Drainage Improvements. A RESOLUTION OF AWARD OF CONTRACT FOR THE CITY HALL AND GRAND AVENUE LIBRARY PARKING LOT DRAINAGE IMPROVEMENTS e Resolution authorizing agreement ~g~ with San Mateo County to resurface Hillside Boulevard. A RESOLUTION AUTHORIZING EXECUTION OF AGREEMENT FOR THE RESURFACING OF THE CITY'S PORTION OF HILLSIDE BOULEVARD 10. Resolution amending Capital Improvement program; resolution approving plans and specifications and advertisement for bids for the East Grand Avenue Median Railing. A RESOLUTION APPROVING BUDGET CONSENT CALENDAR RESOLUTION NO. 97-92 Removed from the Consent Calendar for discussion by Councilman Yee. Removed from the Consent Calendar for discussion by Councilman Yee. RESOLUTION NO. 98-92 Removed from the Consent Calendar for Discussion by Councilman Yee. 243 8/12/92 Page 3 AG E N DA ACT I 0 N ~TAK E N CONSENT CALENDAR 10. Resolutions - Continued. AMENDMENT 93-1 TO THE 1992-1993 CAPITAL IMPROVEMENT BUDGET 11. A RESOLUTION APPROVING PLANS AND SPECIFICATIONS, AUTHORIZING THE WORK AND CALLING BIDS FOR THE EAST GRAND AVENUE MEDIAN RAILING Resolution approving plans and ~OgO specifications, and advertisement of bids for the Municipal Services Building HVAC Replacement Project. A RESOLUTION APPROVING PLANS AND SPECIFICATIONS, AUTHORIZING THE WORK AND CALLING BIDS FOR THE MUNICIPAL SERVICES BUILDING HEATING, VENTILATION AND AIR CONDITION (HVAC) REPLACEMENT PROJECT Emergency resolution to award ~D~ contract for remediation of con- taminated soil at the Water Quality Control Plant. AN EMERGENCY RESOLUTION TO AWARD CONTRACT FOR REMEDIATION OF CONTAM- INATED SOIL AT THE WATER QUALITY CONTROL PLANT 13. Resolution authorizing execution of agreement for North County Drop-Off Center. A RESOLUTION AUTHORIZING EXECUTION OF AGREEMENT FOR NORTH COUNTY DROP-OFF CENTER 14. Resolution authorizing execution of restated Owner Participation and Development Agreement with Homart Development Corporation. A RESOLUTION AUTHORIZING EXECUTION OF RESTATED OWNER PARTICIPATION AND DEVELOPMENT AGREEMENT WITH HOMART DEVELOPMENT CORPORATION CONSENT CALENDAR RESOLUTION NO. 99-92 RESOLUTION NO. 100-92 RESOLUTION NO. 101-92 RESOLUTION NO. 102-92 8/12/92 Page 4 244 AGENDA ACTION TAKE_N ,.~ 245 --CONSENT CALENDAR 15. Resolution of Intention to modify~-/53 Gateway Assessment District No. ST-82-2 and schedule a Public Hearing for 9/9/92. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO OF INTENTION TO MAKE CHANGES AND MOD- IFICATIONS WITH RESPECT TO GATEWAY ASSESSMENT DISTRICT NO. ST-82-2 e Motion to waive fees for the J~/ Downtown Merchants Assn. for the Celebrate S.S.F. (formerly Art and Wine Festival) event on August 22 and 23, 1992. CONSENT CALENDAR RESOLUTION NO. 103-92 M/S Fernekes/Yee - To approve the Consent Calendar with the exception of Items No. 4, 7, 8 and 10. Carried by unanimous voice vote, Vice Mayor Teglia abstained on Item No. 6. Director of Parks, Recreation & Community Services Nagel stated that these services had traditionally been provided in the past. However, this year Festival Productions will be providing the street cleaning and the City the police services with a lesser cost of $400.00 Mayor Penna stated he pulled the item so a presentation could be made by Mr. Welker, President of the Downtown Merchants, for poles in the downtown area to be used to hang banners, and asked that this be added to the agenda. Mr. Richard Welker stated that several years ago one of the goals of the merchants was to have banner poles straddling Grand Avenue advertising musi- cals, which would be paid for by the City and the merchants. He stated that, in light of the City's budget restraints, there were meetings with Genentech wherein Genentech would like to contri- bute to the purchase of poles from the City and have them be utilized for a Genentech week in October. He stated that Genentech was inquiring as to the cost of the poles or light standards so they could be put on lower Grand Ave. across from Mr. B's and Welte's. He asked that Council authorize staff to 9/9/92 Page 5 AGENDA ACTION TAKE_~ 2z)G Motion - Continued. investigate the cost for the purchase to make them into banner poles. He stated that guide lines would have to beI set by the City for duration of sign placement. Vice Mayor Teglia cited concern that if every organization used banner poles, then there would be on-going banners up all year. Mr. Welker stated he agreed, and that was the reason to have a board set up that reviewed all requests in line with the City's sign ordinance. Vice Mayor Teglia expressed concern over picking up police costs and establishing such a precedent. Discussion followed: sales tax derived, if any; the merchants purchasing the poles, installing them and giving them back to the City; using the poles to pro- mote the Festival; that these were stan- dard aluminum poles the City owned that could not stand without the banners; whether the Council would see this item again; the merchants wanted the banners in place for the Genentech function in late October; police services were being offset by Festival Productions taking care of the street cleaning as a trade- off and would be reflected in the minutes when other groups wanted the same police services without cost. M/S Teglia/Drago - To approve the waiver of fees for the Downtown Merchants Assn. for the Celebrate S.S.F. event on August 22 and 23, 1992, and includes comments about the trade-off for 100% coverage of police services. Carried by unanimous voice voice. Consensus of Council - To direct staff to investigate costs to purchase the flag poles. Mr. Jeff Cambra, Festival Productions, presented the Council with commemorative festival wine glasses. 8/12/92 Page 6 10. GENDA Resolution awarding construction contract for City Hall exterior painting to Avlonitis Painting Co. as the lowest responsible bidder in the amount of $27,400. A RESOLUTION OF AWARD OF CONTRACT FOR THE CITY HALL EXTERIOR PAINTING Resolution awarding construction ~J contract to James Chalmers as the lowest responsible bidder in the amount of $48,022 for City Hall and Grand Avenue Library Parking Lot Drainage Improvements. A RESOLUTION OF AWARD OF CONTRACT FOR THE CITY HALL AND GRAND AVENUE LIBRARY PARKING LOT DRAINAGE IMPROVEMENTS A RESOLUTION REJECTING ALL BIDS FOR THE CITY HALL EXTERIOR PAINTING AND GRAND AVENUE LIBRARY PARKING LOT DRAINAGE IMPROVEMENTS PROJECTS Resolution amending Capital _5-~ Improvement program; resolution approving plans and specifications and advertisement for bids for the East Grand Avenue Median Railing. A RESOLUTION APPROVING BUDGET AMENDMENT 93-1 TO THE 1992-1993 CAPITAL IMPROVEMENT BUDGET A RESOLUTION APPROVING PLANS AND SPECIFICATIONS, AUTHORIZING THE WORK AND CALLING BIDS FOR THE EAST GRAND AVENUE MEDIAN RAILING ACTION TAKEN 24'7 Councilman Yee questioned if the Council was prepared to deal with the earthquake renovation of City Hall soon. City Manager Armas stated that would be discussed during the budget item, and if approved will take a couple of years, however, the windows are in bad shape. Councilman Yee stated that the URM Project was a major project, and he did not see the need to spend $27,400 or the money on Item 8 because the URM work could affect the drainage. City Engineer Van Dohren stated that he did not think it would effect the drainage at City Hall or the library. Councilman Yee stated that the excavation along the basement would affect the drainage. Councilman Drago suggested holding these two items over until after discussion of the budget, because if we go ahead with a $1.2 million rehab project, then this work should not be done now. City Engineer Van Dohren stated that the URM work would take one year for planning and design, and the construction would be completed in two years. Concurrence of Council - To hold the items in abeyance until after the budget discussion. Councilman Yee stated that the staff report related that there was a 6' fence along the median, yet there was an existing 4' fence. City Engineer Van Dohren stated that a 4' fence was not acceptable by ABAG's Risk Manager. Councilman Yee stated that his concern was to have the fence compatible with the existing area through the Design Review Board looking at it for architectural control, because it was highly visible. 8/12/92 Page 7 AGENDA ACTION TAKEN --10. Resolutions - Continued. RECESS: RECALL TO ORDER: ADMINISTRATIVE BUSINESS 16. Motion to provide direction ~-~ regarding further study of the pro- posal to light Sign Hill during the "Festival of Lights" . 248 Vice Mayor Teglia expressed concern with the chain link fence on Orange and Spruce, and questioned if it could be removed. Councilman Yee stated that six years ago it was talked about, and suggested that the Mayor send a letter to Caltrans asking that it be removed because there was no further need for the fence. Motion by Councilman Yee - To approve the resolutions. Motion was withdrawn. Concurrence of Council - That the item be referred to the Design Review Board. Mayor Penna declared a recess at 8:45 p.m. Mayor Penna recalled the meeting to order at 8:55 p.m., all Council was present. ADMINISTRATIVE BUSINESS Economic Development Coordinator McCue explained that the Chamber of Commerce had been working on a festival of lights being planned for the coming holiday season in order to promote visitors to the downtown area. She stated that the Chamber Committee included the Downtown Merchants and staff members, however, recent newspaper reports gave the distorted impression that lighting Sign Hill was already in the works when it was in the information gathering stages. She stated that the Committee had asked PG&E to report back on the costs and logistics involved in the lighting of Sign Hill, however, this could not be done until a detailed lighting study was made; and it had not been determined who would pay PG&E for the study. Vice Mayor Teglia stated that she could 8/12/92 Page 8 AGENDA ACTION TAKEN 24.9 --ADMINISTRATIVE BUSINESS 16. Motion - Continued. 17. Resolution approving Fiscal Year-5-/SD 1992-1993 General and City Service Fund Operating Budgets for the City. A RESOLUTION APPROVING THE FISCAL YEAR 1992-1993 GENERAL AND CITY SERVICE FUND OPERATING BUDGETS FOR THE CITY OF SOUTH SAN FRANCISCO AND ADOPTING CORRESPONDING APPROPRIATIONS ADMINISTRATIVE BUSINESS not see the relationship between the downtown and Sign Hill. She cited her concerns over the proposal: who would pay for it because the City could not; whose liability it would be for the attractive nuisance in the residential area around it. Councilman Drago stated that he felt that there should be representation on the Committee from members of Council, the Historical Society, and members of the community. Vice Mayor Teglia stated that the sign belongs to the entire community, and she would need to hear from them on whether they wanted it lighted. She suggested having an advisory vote at the next elec- tion for determination of community acceptance. Discussion followed: Mayor Penna felt that staff should look into the costs, incorporate Councilman Drago's comments, and report back to Council; Councilman Drago felt it was an historical monument and was against any floodlights being used; staff should work with the Committee and homeowners, etc. City Manager Armas stated that State action in relation to withholding local monies had still not occurred, and it it unclear what revenues will be taken from local agencies, counties, schools, welfare, and special districts through adoption of the State budget. He stated that Sunday there had been a vote on a proposed measure, a compromise bill, that was defeated. He stated that it was his view that the City should not withhold action simply because the State cannot act, and recommended the City adopt the budget and come back to Council depending on the State's action. He stated that under Council direction items had been removed from capital 8/12/92 Page 9 AGENDA ACTION TAKEN --ADMINISTRATIVE BUSINESS 17. Resolution - Continued. ; 50 ADMINISTRATIVE BUSINESS outlay, conferences non-reimbursible, and others that removed approximately $100,000 from the budget. He explained a one time non-reoccurring $2.6 million PERS money item the City could use, and recommending setting aside $1.5 million of those funds for retro- fitting City Hall and the library, and the remainder be used to retain services to the public. He stated that when the Council was presented with the 1993-1994 budget it could look at all service levels to identify a base line level of services that could reasonably be pro- jected for the residents, etc. Councilman Drago questioned the end defi- cit for calendar year 1991-92 when it was projected at $2.1 million. Director of Finance Margolis stated that they were still closing the books on 1991-92, however, the City Manager had indicate that the City was $300,000 better off than the budget projected due to sales tax in the last quarter; and assumed that the deficit would be $1.8 million. Discussion followed: what was the pro- jected deficit beginning that fiscal year; $2 million; were reserve funds used to balance the deficit; yes, and the deficit was reduced by not filling vacan- cies plus other cost saving measures; when the Council adopted the budget it assumed a fund balance of $6 million, and when the year ended it was $8 million; income and expenses; that the deficit compounded yearly; the Council had to look at what it took to operate the City efficiently, otherwise con- ditions would worsen with the economic conditions; Councilman Drago agreed with using the PERS money the Governor stole from the retirement fund for retro- fitting, so Governor Wilson cannot rob it again; he also wanted the Council to 8/12/92 Page 10 AGENDA ACTION TAKEN 251 ''-ADMINISTRATIVE BUSINESS 17. Resolution - Continued. ADMINISTRATIVE BUSINESS set the priorities on which positions should not be filled; that the budget forecast was based on a 4% growth, and expenditures of 6%; City Manager Armas was not recommending that the City dip into reserves which would be harmful; that part of the problem was the encum- bering of funds for multi-year contracts; that travel and conferences had been pulled from the budget; Councilman Fernekes also agreed with using the PERS money for retrofitting City Hall and the library; City Manager intended to develop a matrix of services mandated by State law, discretionary services, and optional and expected services; the departments would identify ten services performed and assign them into the above categories and they would be translated into dollars; revenues would be looked at, and then the total package would be presented to Council to establish priorities; Vice Mayor Teglia felt that any service level changes should be done in a thoughtful and professional manner, and would sup- port the budget as presented; Councilman Yee felt that the 3%, 4% and 5% reduc- tions shown in the staff report were not in line with Council direction - which had not been across the board cuts by department; he felt that rather than lay off a fireman - a non-manager type should be the choice; that the suggested reduc- tions would not take effect unless there was a $3 million cut from the State, and if approved by the Council; Councilman Yee had a problem with paragraph four wherein the City Manager would reduce the budget by $1 million in the event of the State cut, and wanted that deleted and the Council to exercise whatever options in balancing the budget; he stated that he had not seen a list from staff that the Council could prioritize all services provided; Councilman Drago agreed with Councilman Yee, because the City could go further in the hole from State cuts and he wanted to have a part in the process, and did not want to give the Manager 8/12/92 Page 11 AGENDA ACTION TAKEN --ADMINISTRATIVE BUSINESS 17. Resolution - Continued. 252 ADMINISTRATIVE BUSINESS carte blanche; Councilman Fernekes liked the Manager's recommendation and the methodology on the reductions; he liked having a year's time to study service levels instead of reducing levels now, and supported the resolution as it stood; Vice Mayor Teglia suggested that the Council hold off on the budget until after State action was known, if they were uncomfortable with the 3%, 4% and 5% cuts, and continue with the appropri- ations; Mayor Penna had not voted for last year's budget because it was not balanced, and had been challenged by Councilman Haffey; he felt that govern- ment had more money than it should have, and cuts should be made to bring it in focus on all levels; he objected to Americans being taxed 47%, and further talk about taking more; he felt we could cut $3 million and start with programs that don't make sense like the drug and task force for $100,000 that did not solve the problem; he was concerned about assets on the books that were not producing revenue, such as the six acres at the Shearwater site; spoke of the sale of the Chestnut and Grand property for the same money it was bought for, when if the cash had been in the bank generating interest - the City would be in better shape; he felt that the fees charged for paramedics were really a sub- sidy for insurance companies, and felt the fees should be tripled; he felt that the contribution to the Visitors and Convention Bureau should be cut 100%; he felt that the Council should define areas where we can increase our revenues, and allow people to add on to their property without going through the myriad of fees for design, planning and architecture that were astronomical; felt the Council had an opportunity tonight to not pass a budget that calls for deficit spending; he felt that the employees salaries were excellent and were above the private sec- tor, and perhaps that should be looked at as to the cost of services and how they 8/12/92 Page 12 AGENDA ACTION TAKEN . 253 --ADMINISTRATIVE BUSINESS 17. Resolution - Continued. 18. Oyster Point right-of-way acquisi- tions: a) two resolution of intention to begin condemnation proceedings for Shearwater and Homart properties; b) progress report on Dubuque Avenue Utility ADMINISTRATIVE BUSINESS could be provided by the private sectors; he was not content to leaving the budget cuts up to staff. City Manager Armas suggested revising the language in paragraph 4 to read, should the State of California act to reduce revenues the City Manager is directed to present revisions to this budget within forty-five days of adoption of the State budget, and then the budget would come back to the Council. Mayor Penna stated that people coming into the Building Department for permits were being put through hoops, and Council should review and change the process so people in the community can get permits processed in an efficient manner. Councilman Drago stated that he had never been in support of raising paramedic fees because he was concerned about people that do not have insurance to cover the cost. M/S Teglia/Drago - To adopt the Resolution and revise language in paragraph 4 as suggested by the City Manager. RESOLUTION NO. 105-92 Carried by majority roll all vote, Vice Mayor Teglia voted no. M/S Yee/Drago - To allocate $1.5 million of PERS money for the Capital Improvement fund for retrofitting City Hall and the library. Carried by unanimous voice vote. M/S Yee/Teglia - To adopt the Resolutions. RESOLUTION NO. 106-92 RESOLUTION NO. 107-92 8/12/92 Page 13 AGENDA ACTION TAKEN '"-ADMINISTRATIVE BUSINESS 18. Oyster Point - Continued. Relocation and Underground Utility District Program. a) A RESOLUTION ADOPTING A RESOLUTION OF NECESSITY TO BEGIN CONDEMNATION PROCEEDINGS TO THE OYSTER POINT INTERCHANGE PROJECT (SHEARWATER) A RESOLUTION ADOPTING A RESOLUTION OF NECESSITY TO BEGIN CONDEMNATION PROCEEDINGS TO THE OYSTER POINT INTERCHANGE PROJECT (HOMART) 19. Authorizing agreements related to financing of construction for Oyster Point Interchange Project: a) Resolution authorizing agreement with San Mateo County Transportation Authority to provide $15,405,000; b) authorizing agreement with State of Calif. to obtain $6,905,000 in State Railroad Bond Funds; c) resolution author- izing agreement with Caltrans for construction phase. a) A RESOLUTION AUTHORIZING EXECUTION OF AGREEMENT TO PROVIDE FUNDS FOR THE OYSTER POINT INTERCHANGE PROJECT b) A RESOLUTION AUTHORIZING EXE- CUTION OF AGREEMENT FOR STATE RAILROAD BOND FUNDS FOR THE OYSTER POINT INTERCHANGE PROJECT c) A RESOLUTION AUTHORIZING EXE- CUTION OF AGREEMENT REGARDING THE CONSTRUCTION PHASE OF THE OYSTER POINT INTERCHANGE PROJECT Resolution awarding construction-~Z-O$~ contract for City Hall exterior ADMINISTRATIVE BUSINESS Carried by unanimous voice vote. 254 Councilman Yee questioned if the City had the $8.3 million needed. Director of Public Works Parini stated that the City had $6 million in cash. M/S Yee/Fernekes - To adopt the Resolutions. RESOLUTION NO. 108-92 RESOLUTION NO. 109-92 RESOLUTION NO. 110-92 Carried by unanimous voice vote. Director of Public Works Parini asked for reconsideration of items No. 7 and 8. 8/12/92 Page 14 AGENDA ACTION TAKEN - 255 Resolution - Continued. painting to Avlonitis Painting Co. as the lowest responsible bidder in the amount of $27,400. A RESOLUTION OF AWARD OF CONTRACT FOR THE CITY HALL EXTERIOR PAINTING Resolution awarding construction contract to James Chalmers as the lowest responsible bidder in the amount of $48,022 for City Hall and Grand Avenue Library Parking Lot Drainage Improvements. A RESOLUTION OF AWARD OF CONTRACT FOR THE CITY HALL AND GRAND AVENUE LIBRARY PARKING LOT DRAINAGE IMPROVEMENTS A RESOLUTION REJECTING ALL BIDS FOR THE CITY HALL EXTERIOR PAINTING AND GRAND AVENUE LIBRARY PARKING LOT DRAINAGE IMPROVEMENTS PROJECTS ADMINISTRATIVE BUSINESS 20. Motion to authorize letter to the 5~ San Francisco Airports Commission commenting on proposed mitigations to be included in the San Francisco International Airport Master Plan Mitigation Program. M/S Yee/Drago - To adopt the resolution by title only to reject all bids for Item No. 7 and No. 8. RESOLUTION NO. 104-92 Carried by unanimous voice vote. ADMINISTRATIVE BUSINESS Vice Mayor Teglia passed out a letter from Mr. Carbone with comments on the latest draft of the proposed amendment to the Roundtable MOU regarding SFIA Master Plan Noise Mitigations. Vice Mayor Teglia stated that she felt the Council could approve the letter and send it off, and went into a long discussion on the negotiations on traf- fic, congestion, and noise that C/CAG was involved in by way of the Roundtable. Mayor Penna cited concern that the report does not indicate that the Airport is responsible for mitigating the dumping of fumes and fuel over the City as they fly out of the City. City Manager Armas stated that the Council had before it a draft letter com- menting on proposed mitigations to be 8/12/92 Page 15 AGENDA --ADMINISTRATIVE BUSINESS 20. Motion - Continued. (Cassette No. 2) ACTION TAKEN 2.56 ADMINISTRATIVE BUSINESS included in the S.F.I.A. Master Plan, and the Council could make further revisions to the letter. Mayor Penna cited the following concerns: that the Airport was attempting to down play the impacts to the community; concern over the new Airport map for insulation, and request for staff to challenge the sound waves monitored to develop the map, and clarification of CNELs; that S.S.F. has 6,677 homes affected, and Daly City 16,743; that the Airport allows $12,000 per home for insu- lation when the cost of homes already insulated in Brentwood were $12,700, Avalon Park were $19,000 due to the size of the homes, and Burl Burl and Westborough homes could be higher; how far should be allow the Airport to expand when it increases flights by 300 a day - most of which would be taking off through the Gap over S.S.F.; additional flights would be taking off from Runway I from Millbrae, and using Runway 28 instead of the Shoreline; presently 90% of flights take off over the Shoreline, and many travel over Oldtown and San Bruno Mountain; that when the Terrabay Project was complete it would give a new consti- tuency of people impacted with 65 CNEL levels; that the only issue C/CAG is talking to the Airport about is noise; that the Airport should be responsible for solving all of the above stated problems, etc. Vice Mayor Teglia read extensively from the Dave Carbone's letter she passed out earlier, and felt it did address Mayor Penna's concerns. Discussion followed: Council could act on the letter separately from direction to be given the Mayor at the Roundtable; there was a problem with the negotiated stance of the Airport; Kopp's Bill 8/12/92 Page 16 AGENDA ACTION TAKEN ~ADMINISTRATIVE BUSINESS 20. Motion - Continued. PUBLIC HEARINGS Public Hearing - South San ~ 7 Francisco Scavenger Co. request for rate increase; Conduct Public Hearing; resolution approving increase. A RESOLUTION REVISING SCAVENGER RATES AND CHARGES 2.57 ADMINISTRATIVE BUSINESS would help; FAA does not have to fund anything outside of the new map; Airport contends that noise diminished because of new airplanes; 1983 map was a projection of flights over homes; S.S.F. is not on new map except for small sec- tions; S.F. will certify the EIR, then it will go to S.F. Commission to be cer- tified; City needed another strategy other than challenging the numbers; should look at single event issues; the Airport wanted to eliminate homes sold after 1983; to continue the discussion to a meeting next Wednesday, and include fresh air ventilation in the insulation. M/S Drago/Teglia - To authorize the letter. Motion and Second withdrawn. PUBLIC HEARINGS Mayor Penna opened the Public Hearing. Director of Finance gave the staff report: that the old rates were tied to the CPI; based on a review of the rate request a rate increase of 22.2% would go into effect as of 7/1/92 to meet the terms of the agreement; explained the formula for the increase; staff would come back with an annual rate review a year from now. Mr. Richard Glason, S.S.F. Scavenger Co., stated that the Company would go along with the rate increase, but felt it was a bit late and less than requested. Mayor Penna closed the Public Hearing. Councilman Yee reiterated that the Public Hearing should have been held earlier in the evening rather than after 11:00 p.m. He stated that he did not personally know the background of the increase, but understood that there had been a Subcommittee involved. 8/12/92 Page 17 AG E N DA AC T I O N TAKE N258 ~ADMINISTRATIVE BUSINESS 21. Public Hearing - Continued. ADMINISTRATIVE BUSINESS Vice Mayor Teglia stated that she and Councilman Haffey had been on the Subcommittee, and was concerned about the interpretation by staff on routes. She stated that she was also concerned that S.S.F. Scavenger Co. owns Blue Line and Royal Salvage, and the interrelated leases shown as expenses. City Attorney O'Toole stated that the franchise agreement allows Council to examine the reasonableness of direct and in-direct expenses, and the like. He stated that if the Council finds that the conditions bear unreasonableness to the rate increase, then you can impose the condition to assure that the rate increase is reasonable. Vice Mayor Teglia also requested infor- mation on the profit sharing reflected on page 10 and its bearing on the rates being charged. She expressed concern that Royal Salvage did not want the City to look at their books - so, how could Council determine if it was reasonable. Councilman Drago questioned the con- sultant on the methodology of rate setting every two years, and what lati- tude the consultant had in arriving at the percentage on the franchise. Mr. Troy Gardner, Hilton Farnkopf & Hobson, stated that the franchise says the Company will be reimbursed for reasonable and necessary operating expen- ses with a minimum level of profit based on a 90% operating ratio, which is basi- cally a 10% profit. City Manager Armas stated that the franchise agreement predated his being Manager, but the rate review process was borrowed from the system used in south County for calculation and review pur- poses, etc. Councilman Drago questioned why the 8/12/92 Page 18 AGENDA ACTION TAKEN --ADMINISTRATIVE BUSINESS 20. Motion - Continued. ADMINISTRATIVE BUSINESS recommendations for purchasing were not followed, which would reduce the operating costs and the rate increase. Mr. Gardner stated that the recommen- dation had been made to purchase equip- ment, but on the reasonableness of leasing from Roiyal Salvage Co. - they were unable to make a conclusion because the records are not available as far as what the assets actually cost when they were purchased. He stated that these records were specifically exempted in the contract, and they do not make them available. Vice Mayor Teglia stated that the Scavenger Co. had relented on allowing the City to see the books on Blue Line Transfer, but they felt that they would lose the competitive edge in bidding if the books for Royal Salvage Co. were open to review. She stated that the Committee did not discuss whether they should lease their assets, etc. City Attorney O'Toole stated that if man- datory conditions were set by the City, the Company could sue the City, because the City does not have the authority to require the Company to purchase rather than lease equipment. He stated that if the Council found the request to be not responsible, then it could deny the raise. He stated that the Council did not have the authority to require the Company to lease or purchase, but only to deny the rate increase based upon its determination of whether it is reaso- nable. Mr. Gardner explained the staff interpre- tation on officer compensation, profit sharing, pensions - were allowable pro- viding it was reasonable, and was in effect before the contract. City Manager Armas stated that the Council could direct staff to work with 8/12/92 Page 19 AGENDA ACTION TAKEN 260 ADMINISTRATIVE BUSINESS 20. Resolution - Continued. ITEMS FROM COUNCIL 22. Oral Committee reports. GOOD AND WELFARE ADMINISTRATIVE BUSINESS the Company and deal with those other areas, particularly because the Co. will forward a rate application some time next year, so we can test the validity of a lease purchase structure. Discussion followed: that the 10% loan interest was unacceptable because it affected users who paid for it; whether 10% was reasonable with the Company con- tinuing to lease; the Company's ability to refinance because the Company has been running at a very small profit or at a loss over the last several years; not unreasonable after the rate increase was given to obtain other financing to play down the debt; Council could call this back bfore them at any time with 30 days notie to review the rates; that the loans were from Blue Line Transfer or Royal Salvage, and were related party loans, etc. M/S Teglia/Drago - To adopt the Resolution, and direct staff to come back to Council in 60 days as to how they are going to respond to the additional areas in regard to lease/purchase. RESOLUTION NO. 111-92 Carried by unanimous voice vote. ITEMS FROM COUNCIL Councilman Fernekes reported on the Chamber of Commerce meeting: concerns over new fees, and whether there would be new fees on business licenses; detox ope- ning; Chamber wants City to take out an ad in the new directory; discussion of lighting Sign Hill. GOOD AND WELFARE No one chose to speak. 8/12/92 Page 20 AGENDA ACTION TAKEN 261 ---CLOSED SESSION 23. Closed Session for the purpose of discussion of personnel matters, labor relations, property nego- tiations and litigation. RECALL TO ORDER: .-_ADJOURNMENT RESPECTFULLY SUBMITTED, Barbara A. Battaya, Cit~KClerk City of South San Francisco CLOSED SESSION Council adjourned to a Closed Session at 12:24 a.m. to discuss pursuant to: GC 54957.6 - labor negotiations re: AFSCME; GC 54956.9(c) - to initiate litigation based upon facts and circumstances con- tained in attachments to a memo; GC 54956.8 - negotiations concerning the Mazzanti Property. Mayor Penna recalled the meeting to order at 12:40 a.m., all Council present, no action was taken. M/S Yee/Drago - To adjourn the meeting to Wednesday, 8/19/92, at 7:00 p.m., at City Council Chambers at City Hall, 400 Grand Ave., for the discussion of Item No. 20, budget priorities, and a Closed Session pursuant to Government Code. Carried by unanimous voice vote. Time of adjournment was 12:40 a.m. Joh'~-R~nn a, )~1~o r City o~ancisco 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. 8/12/92 Page 21