Loading...
HomeMy WebLinkAboutMinutes 1993-01-27 Chairwoman Roberta Cerri Teglia Boardmembers: Jack Drago -'-'loseph A. Fernekes lohn R. Penna Robert Yee M ! _N U_T. E__$. South San Francisco Capital Improvements Authority Municipal Services Building Community Room January 27, 1993 NOTICE IS HEREBY GIVEN, pursuant to Municipal Code and Resolution of the City of South San Francisco, that the South San Francisco Capital Improvements Financing Authority of the City of South San Francisco will hold a Special Meeting on Wednesday, January 27, 1993, at 6:55 p.m. in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California. Purpose of the meeting: 1. Approval of the Minutes of the Regular Meeting of 12/9/92. Joint Meeting with the Redevelopment Agency of the City of South San Francisco to adopt resolution authorizing issuance of revenue bonds to provide a loan to the Redevelopment Agency, approving necessary documents, and authorizing sale of bonds. A RESOLUTION OF THE CITY OF SOUTH SAN FRANCISCO CAPITAL IMPROVEMENTS FINANCING AUTHORITY AUTHORIZING THE PURCHASE AND SALE OF NOT TO EXCEED $11,000,000 PRINCIPAL AMOUNT OF GATEWAY REDEVELOPMENT PROJECT 1993 TAX ALLOCATION BONDS UPON CERTAIN TERMS AND CONDITIONS, APPROVING DISTRIBU- TION OF OFFICIAL STATEMENT RELATING THERETO AND PROVIDING OTHER MATTERS PROPERLY RELATING THERETO 3. Adjournment. South San Francisco Capital Improvements Authority City of South San Francisco CALL TO ORDER: ROLL CALL: AGENDA (Cassette No. 1) Approval of the Minutes of the Regular Meeting of 12/9/92. ACTION TAKEN 7:05 p.m. Chairwoman Teglia presiding. Boardmembers Present: Boardmembers Absent: Drago, Fernekes, Penna, Yee, and Teglia. None. M/S Penna/Fernekes - To approve the Minutes of the Regular Meeting of 12/9/92. 1/27/93 Page 1 Joint Meeting with the Redevelopment Agency of the City of South San Francisco to adopt resolution au- thorizing issuance of revenue bonds to provide a loan to the Redevelopment Agency, approving necessary documents, and authorizing sale of bonds. A RESOLUTION OF THE CITY OF SOUTH SAN FRANCISCO CAPITAL IMPROVEMENTS FI- NANCING AUTHORITY AUTHORIZING THE PURCHASE AND SALE OF NOT TO EXCEED $11,000,000 PRINCIPAL AMOUNT OF GATE- WAY REDEVELOPMENT PROJECT 1993 TAX ALLOCATION BONDS UPON CERTAIN TERMS AND CONDITIONS, APPROVING DISTRIBUTION OF OFFICIAL STATEMENT RELATING THERE- TO AND PROVIDING OTHER MATTERS PROP- ERLY RELATING THERETO CALL TO ORDER REDEVELOPMENT AGENCY: _ROLL CALL REDEVELOPMENT AGENCY: ADMINISTRATIVE BUSINESS Redevelopment Agency (JOINT MEETING WITH SOUTH SAN FRANCISCO CAPITAL IMPROVEMENTS AUTHORITY) Resolution authorizing issuance of tax allocation bonds related to the Gateway Redevelopment Project, and approving execution of indenture of trust related thereto, authorizing sale of such bonds; Resolution authorizing the 1993 amendment to the amended Owner Participation and Development Agreement with Homart Development Corporation, and approv- ing repayment agreement. A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRAN- CISCO AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $11,000,000 TAX ALLOCATION BONDS RELATING TO THE GATEWAY REDE- VELOPMENT PROJECT, APPROVING AND AU- THORIZING AND DIRECTING EXECUTION OF INDENTURE OF TRUST RELATING THERETO, AUTHORIZING SALE OF SUCH BONDS, AP- Carried by majority voice vote, Boardmember Yee abstained. Join in with the Redevelopment Agency Meeting. 7:06 p.m. Chairwoman Teglia presiding. Boardmembers Present: Boardmembers Absent: Drago, Femekes, Penna, Yee, and Teglia. None. ADMINISTRATIVE BUSINESS - Redevelopment Agency Joined in with the Capital Improvements Authority Meeting already in progress. Director of Finance Margolis presented the staff report: bonds could not be sold in a straight com- petitive bid because of the decline in assessments, and pending assessment appeals from property own- ers, State taking redevelopment funds from cities that frightened away bidders; questions on security of the bond issue now and in the future, and whether the City could pay the debt service; issued request for proposals from underwriters, and had received four, and had selected Prager, McCar- thy, and Sealy; advised of the need to go through another public agency to purchase the bonds, and the financing was available; the Agency will sell the bonds to the Authority which will immediately sell them to the underwriters there was no jeopardy of ending up being responsible for the bonds and was the middle man; this method provides fluidity in setting the amount of the bonds to sell; intent was 1/27/93 Page 2 AQ~RA AQIXQ~ IAK~ 4DMINISTRATIVE BUSINESS - e. development Agency 4. Resolution Continued. PROVING OFFICIAL STATEMENT AND PRO- VIDING OTHER MATTERS PROPERLY RELAT- ING THERETO A RESOLUTION ADOPTING THE 1993 AMENDMENT, TO .THE AMENDED RESTATED OWNER PARTICIPATION AND DEVELOPMENT AGREEMENT WITH HOMART DEVELOPMENT CORPORATION AND APPROVING THE REPAY- MENT AGREEMENT S.S.F. CAPITAL IMPROVEMENTS AUTHORITY ACTION: REDEVELOPMENT AGENCY ACTION: ADMINISTRATIVE BUSINESS - Redevelopment Agency to repay Homart to the greatest degree; resolutions from each Agency authorizing the purchase and sale of bonds; this would provide $8.7 million with a bond sale of $10.4 million; term of the bonds; inter- est rates; one Agency resolution finalizes the Owner Participation Agreement with Homart, etc. Discussion followed: whether the City was paying higher discounts or premiums by this methods; that was not thought to be the case; there was no liability to the Authority, and the only pledge: made was available tax increment available to pay the debt; why this method had not been tried before, rather competitive bidding; there was an advantage in using the competitive market; the Agency had difficulty selling bonds before which had indicated the market was reluctant to buy the bonds, and now we were going to have a third party when nothing had changed; the disadvantage was that the City did not have a means to compare the bond market through the absence of bidders; the reason this was being done was the Agency could not do a negotiated sale; the argument could be made that a lower rate could be negotiated in competitive bidding; Laura Stiilwell, Bartel Wells, responded to questioning; it was unethical to get the bids and turn around and negotiate; this would not come back to the Agency; the underwriters fee was 1.6%; David Oster, Jones, Hall, Hill and White responded to questions on the legal aspects; the Agency was not pledging any assets, only tax increments, Boardmember Yee wanted the results of the negotiations to come back to the Agency; City Manager to come back with the information, etc. M/S Fernekes/Drago - To adopt the Resolution. RESOI.UTION SSF-1-93 Carried by unanimous roll call vote. M/S Fernekes/Drago - To adopt the resolution on bonds, and the resolution on the amended OPA. RESOLUTION NO. 2-93 RESOLUTION NO. 303 1/27/93 Page 3 --~DMINISTRATIVE BUSINESS - edevelopment Agency 4. Resolution- Continued. AGENDA REVIEW - Redevelopment Agency CONSENT CALENDAR - Redevelopment Agency 1. Motion to approve Minutes of the Regular Meeting of 1/13/93. 2. Motion to confirm expense claims of 1/27/93. Resolution authorizing transmittal of Draft Redevelop- ment Plan and Draft Environmental Impact Report to affected taxing agencies for the El Camino Corridor Redevelopment Project. A RESOLUTION AUTHORIZING TRANSM1TFAL OF THE DRAFT REDEVELOPMENT PLAN FOR THE EL CAMINO REDEVELOPMENT PROJECT AND DRAFT ENVIRONMENTAL IMPACT RE- PORT PREPARED THEREFOR GOOD AND WELFARE - Redevelopment Agency CLOSED SESSION- Redevelopment Agency Closed Session for the purpose of the discussion of personnel matters, labor relations, property negotiations and litigation. 1/27/93 Page 4 044 ADMINISTRATIVE BUSINESS - Redevelopment Agency Carried by unanimous voice vote. AGENDA Rg~VIEW - Redevelopment Agency Executive Director Annas stated that there were no changes to the Agenda. CONSENT CALENDAR - Redevelopment Agency Approved. Approved in the amount of $1,918.25. RESOLUTION NO. 4-93 M/S Fernekes/Drago - To approve the Consent Calendar. Carried by majority voice vote, Boardmembers Penna and Teglia abstained. GOOD AND WELFARE - Redevelopment Agency No one chose to speak. CLOSED SESSION - Redevelopment Agency The Agency chose not to hold a Closed Session. M/S Penna/Fernekes - To adjourn the Redevelopment Agency meeting. Carried by unanimous voice vote. AGI~NDA _.ADJOURNMENT - REDEVELOPMENT AGENCY IEETING: ADJOURNMENT- S.S.F.,CAPITAL IMPROVEMENTS AUTHORITY MEETING: AC!!ON TAKEN Time of adjournment was 7:32 p.m. 045 M/S Penna/Fernekes - To adjourn the South San Francisco Capital Improvements Authority meeting. Carried by unanimous voice vote. Time of adjournment was 7:33,p.m. RESPECTFULLY SUBMITTED, APPROVED. South San Francisco Capital Improvement Authority City of South San Francisco South San Francisco Capital Improvement Authority City of South San Francisco The entries of this Agency meeting show the action taken by the South San Francisco Capital Improvements Authority dispose of an item. Oral communications, arguments, and comments are recorded on tape. The tape and documents lated to the items are on file in the Office of the City Clerk and are available for inspection, review and copying. 1/27/93 Page 5 Mayor Roberta Cerri Teglia Coumcil: Jack Drago {oseph A. Fernekes ~-"~lolm R. Penna Robert Yee City Council Municipal Services Building Community Room January 27, 1993 VOL. '046 ' CALL TO ORDER: ROLL CALL: AGENDA (Cassette No. 1) PLEDGE OF ALLEGIANCE: PRESENTATIONS Commending Resolution Donald Arndt --,~mmending Resolution Eugene Mullin 5' o q '7 Commending Resolution Beverly Boblitt ~' o q '7 Commending Resolution Joy-Ann Wendler ~'o q 7 Commending Resolution Edna Harks o--~o q '7 Commending Resolution Kitty Humbert ~ o q 7 AGENDAREVIEW City Manager Annas Requested: - Remove Item No. 12 from the Consem Calendar for discussion. Mayor Teglia Requested: - Item No. 9 be adopted with amended language in the resolution. ORAL COMMUNICATIONS _ACTION !A~C~N 7:35 p.m. Mayor Teglia presiding. Council Present: Council Absent: Drago, Femekes, Penna, Yee, and Teglia. None. The Pledge was recited. PRF.~ENTATIONS Vice Mayor Femekes presented the Resolution to Mr. Arndt. Mayor Teglia presemed the Resolution to Mr. Mullin. Mayor Teglia presented the Resolutions to each of the women, and further commended them for their efforts. AGENDA REVIEW So ordered. ORAL COMMUNICATIONS No one chose to speak. 1/27/93 Page 1 ACI!Q_N TAKEN ,. 04'7 COMMUNITY FORUM CONSENT CALENDAR 1. Motion to approve Minutes of the Special Adjourned Meeting of 1/13/93. 2. Motion to confirm expense claims of 1/27/93.. So t3 Resolution authorizing grant application for Title VI Library Services and Construction Act funds of $32,500 for a computer assisted literacy instruction proj eot. .5~t5 2 3 A RESOLUTION AUTHORIZING THE SUBMIT- TAL OF A GRANT APPLICATION FOR LIBRARY SERVICES AND CONSTRUCTION ACT FUNDS (COMPUTER ASSISTED LITERACY INSTRUCTION PROJECT) Resolution authorizing grant application for Title VI Library Services and Construction Act funds of $35,000 for the 'Excellence for All Project.' .5'~ 2_3 A RESOLUTION AUTHORIZING THE SUBMIT- TAL OF A GRANT APPLICATION FOR LIBRARY SERVICES AND CONSTRUCTION ACT FUNDS (EXCELLENCE FOR ALL PROJECT) Motion to remove the outdoor restroom facility at City Hall and consider replacement funding as part of the 1993-1994 Capital Improvement Program Budget. Motion to adopt ordinance in regards to Water Quali- ty Control. 5 / ~ 7 ~'~87 AN ORDINANCE AMENDING SECTION 14.08.020, 14.08.130, 14.08.160, 14.08.180, 14.08.190, 14.08.200, 14.08.220, 14.08.260, 14.08.310, 14.08.500, 14.08.520 AND 14.08.530 ENTITLED "WATER QUALITY CONTROL" OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE Motion to accept the annual report of the Redevelop- ment Agency. ,.~ t .ff COMMUNITY FORUM Mayor Teglia announced that the retirement dinner for City Manager Armas would be held at the Crown Sterling Suites on Friday from 4:00 to 7:00 p.m. with a cost of $20.00 per person. CONSENT CALENDAR Approved. Approved in the amount of $1,327,972.38. RESOLUTION NO. 9-93 RESOLUTION NO. 10-93 So ordered. ORDINANCE NO. 1124-93 Approved. 1/27/93 Page 2 CONSENT CALENDAR Resolution of Intention to vacate a public utility ease- ment at 221 lndio Drive, and schedules a public hear- ing on 3/10/93. 5~ 'g~ A RESOLUTION OF INTENTION TO VACATE A PUBLIC UTILITY EASEMENT LOCATED 10' ACROSS THE PROPERTY LOCATED AT 221: INDIO DRIVE, SOUTH SAN FRANCISCO Motion to accept the grant offer from Federal Avia- tion Administration, and Resolution amending the Capital Improvement Budget Program. ..q'Z ~ A RESOLUTION APPROVING BUDGET AMENDMENT 92-8 TO THE 1992-93 CAPITAL IMPROVEMENT BUDGET 10. Resolution authorizing transmittal of the Draft Envi- ronmental Impact Report to all affected taxing entities and Fiscal Review Committee for the El C_amino Corridor Redevelopment Project. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO AU- THORIZING TRANSMrI~AL OF THE DRAFT ENVIRONMENTAL IMPACT REPORT PRE- PARED FOR THE EL CAMINO CORRIDOR RE- DEVELOPMENT PROJECT 11. Resolution approving agreement with Peninsula Corri- dor Joint Powers Board to install two base stations and antenna at Sign Hill communications site, and adopt policy for future requests. .fi"~ z~ A RESOLUTION AUTHORIZING EXECUTION OF LEASE AGREEMENT FOR TWO BASE STA- TIONS AND AN ANTENNA AT SIGN HILL 12. Resolution authorizing a memorandum of understand- ing with the S.S.F. Scavenger Company establishing a rate review methodology in regard to related party leases and loans and labor cost allocation. A RESOLUTION AUTHORIZING THE EXECU- TION OF A MEMORANDUM OF UNDER- STANDING WITH THE SOUTH SAN FRANCISCO SCAVENGER COMPANY ESTABLISHING A RATE REVIEW METHODOLOGY FOR RELAT- ACTION TAKE~ CONSENT CALENDAR Removed from the Consent Calendar for discussion by Councilman Penna. Adopted with amended language. RESOLUTION NO. 11-93 Removed from the Consent Calendar for discussion by Mayor Teglia. RESOLUTION NO. 12-93 Removed from the Consent Calendar for discussion by City Manager Armas. 1/27/93 Page 3 A~NDA _CONSENT CALENDAR 2. Resolution- Continued. ED PARTY LEASES, LOANS, AND LABOR COST ALLOCATION 13. Owner participation agreement with Homart Devel- opment Corporation, repayment agreement. 5 I.~ A RESOLUTION ADOPTING THE 1993 AMEND- MENT TO THE AMENDED RF. STA~D OWNER PARTICIPATION AND DEVELOPMENT AGREE- MENT WITH HOMART DEVELOPMENT COR- PORATION AND APPROVING THE REPAY- MENT AGREEMENT 14. Appointment of Interim City Manager. A RESOLUTION AUTHORIZING THE APPOINT- MENT OF PATRICIA MARTEL AS INTERIM CITY MANAGER Resolution modifying the employment contract of the City Manager. .~ 2~ ~ A RESOLUTION AUTHORIZING MODIFICATION TO THE CITY MANAGER EMPLOYMENT CON- TRACT 10. Resolution authorizing transmittal of the Draft Envi- ronmental Impact Report to all affected taxing entities and Fiscal Review Committee for the El Camino Corridor Redevelopment Project. ~'~ ~ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO AU- THORIZING TRANSMITTAL OF THE DRAFT ENVIRONMENTAL IMPACT REPORT PRE- PARED FOR THE EL CAMINO CORRIDOR RE- DEVELOPMENT PRO~ECT Resolution of Intention to vacate a public utility ease- ment at 221 Indio Drive, and schedules a public hear- ing on 3/10/93. ._~c~ ~D ACTION TAK_EN - 049 CONSENT CALENDAR · RESOLUTION NO. 1303 RESOLUTION NO. 14-93 RESOLUTION NO. 1503 M/S Yee/Femekes - To approve the Consent Calen- dar with the exception of Items No. 8, 10 and 12. Carried by unanimous voice vote. Mayor Teglia requested a roll call vote on this item. M/S Femekes/Yee - To adopt the Resolution. RESOLUTION NO. 16-93 Carried by majority roll call vote, Councilmembers Penna and Teglia abstained. Councilman Penna stated that he had removed the item so the Council could consider removing the easement for all of Indio Dr. rather than just the one address when the easement had never been used. 1/27/93 Page 4 ~ENDA ~IQ~ ~KEN CONSENT CALENDAR Resolution - Continued. A RESOLUTION OF INTENTION TO VACATE A PUBLIC UTILITY EASEMENT LOCATED 10' ACROSS THE PROPERTY LOCATED AT 221 INDIO DRIVE, SOUTH SAN FRANCISCO 12. Resolution authorizing a memorandum of understand- ing with the S.S.F. Scavenger Company establishing a rate review methodology in regard to related party leases and loans and labor cost allocation. .S'zJ-7 A RESOLUTION AUTHORIZING THE EXECU- TION OF A MEMORANDUM OF UNDER- STANDING WITH THE SOUTH SAN FRANCISCO SCAVENGER COMPANY ESTABLISHING A RATE REVIEW METHODOLOGY FOR RELATED PARTY LEASES, LOANS, AND LABOR COST ALLOCATION CONSENT CALENDAR Director of Public Works Parini stated that they could do that after contacting other property owners to see if they are interested. M/S Penna/Drago - To adopt the Resolution. RESOLUTION NO. 17-93 Carried by unanimous voice vote. City Manager Armas stated that he had removed the 'item because there had been a request by the Scav enger Co. for a modification of the Memorandum and staff concurred in deleting the final sentences at the bottom of the page that continues on the next page, and replace it with "in replacing the equip- ment currently leased, the Company agrees to pro- vide advance written notice of its intent to replace the equipment." Mayor Teglia stated that the reason the Memoran- dum was coming back was that it had been found that the Company had debts and loans made to the Company by parties that were owners of the Com- pany, and the City took exception to that. She stated that this could not take place in the future without the City's approval, and those debts will have to be retired no later than October 1994. She requested that the Finance Director explain the document to the public, and she commended staff's efforts. Finance Director related: that in the rate review just completed the rate payers were paid the equivalent of $480,000 for leased equipment leased by the Scavenger Co. by the related parties; based on the modification that amount will decrease by $65,000 in the current year, and after that $84,000 in 1997. MIS Femekes/Yee - To adopt the Resolution. RESOLUTION NO. 18-93 Carried by unanimous voice vote. 1/27/93 Page 5 A~DA 051 ADMINISTRATIVE BUSINESS §. Consideration of Cultural Events Trust Fund: a) Resolution approving $2,000 grant to Art Rise; b) Resolution authorizing use of funds remaining in Trust Fund. .5' ~ ~7 -~ A RESOLUTION AUTHORIZING A GRANT FOR RELOCATION OETHE ART RISE STUDIO THEATER A RESOLUTION EARMARKING CULTURAL EVENT TRUST FUNDS FOR THE PURPOSE OF CONSTRUCTING AN ART RISE THEATER FA- CILITY IN ORANGE MEMORIAL PARK, AND MODIFYING RESOLUTION NO. 6-93 ADMINISTRATIVE BUSINESS Assistant City Manager Martel stated that there had been a request from Art Rise for financial assistance for $2,000 because of having to vacate the El Rancho School premises by 6/30/93. She related: Art Rise was in preliminary negotia- tions with the School District for.theater~space need ed by 6/30/93; the City had financially supported Art Rise for the past five years and recognized the value Art Rise provided the community through enriching entertainment; because of fiscal restraints it might behoove the Council to appropriate the $2,000 from the Cultural Events Fund for this pur- pose; the Trust Fund had been established with an initial contribution of $10,000 by Homart Develop- ment Co. in 1986 for cultural events; there were no requirements for the use of the funds; in 1987 there was a second donation of $5,000; because of the interest accrual there was now a balance of $21,824 available for use; if Council approves the request they may want to make the $19,000+ balance avail- able for arts and cultural purposes; one member of Council during discussions of providing space in Orange Park for Art Rise asked for consideration of using these resources as seed money for fund raising efforts to construct a community theater on the Park site; if Council chose to do this, then a specific time frame would .be provided, such as a five year period as had been done for the Westborough swimming pool. Ms. Maggie Pierson, Art Rise, stated that the rec- ommendation sounded very valid and logical, in- cluding the five year limitation. She proceeded to explain in-depth what a theater is: it is not the Mickey Rooney/$udy Garland syndrome of a barn and hay - and now let's put on a show; Art Rise was business that had put together 19 per- formances of quality theater for 5,230 people; they use 370 volunteers that contributed 57,760 hours; a theater was needed in No. County; the dedication of the Orange Park site was the first time any City had done this type of thing to support theater other than for Hillbarn; each show was budgeted for $1,000 and the biggest chunk was the payment of royalties; contributed income was 44% from theater, 36% from grants, 8% from members, 5% from children classes, and 75{; from donations, etc. 1/27/93 Page 6 ADMINISTRATIVE BUSINESS 6. Resolutions - Continued. 1/27/93 Page 7 ACTION TAKEN , 052'. ADMINISTRATIVE BUSINESS Councilman Drago stated that he did not have a problem with the first issue of $2,000, but regretted that staff had not done more research on the Trust Fund. He stated that the Council had established the Trust Fund six years ago by resolution and how to deal with the money, and there was to be a committee of two Coucilmembers, two members from business, and one from the general public - which had never been put Wgether. He stated that he did not feel that the Council should act on the second issue without setting up the Committee or seeing how this action would violate the resolution. He stated that he remembered heated discussions with the Mayor on a jazz band that was not made up from this community. He stated that in looking at the Fund balance, he felt that the prior expenditures were made from the General Fund because at that time the City had two years to match the contribu- tions, and he believed the City did match the origi- nal $5,000 contribution. He stated that the original intent was to gather funds for the entire community, and he wanted further investigation of the resolution before this was acted on. Mayor Teglia stated that she remembered that when the Redevelopment Agency began, Homart could not fulfill some amenities for the project, such as a lake because of toxic materials, and Council during negotiations had asked for a cultural component plan in the OPA or in some other document. She stated that it called for some sum of money each year to be provided by the City and Homart for some sort of a cultural program in the commRnity - that didn't work, and some years later this idea was born where Homart wanted to make a one time contribution. She stated that they had made a contribution of $5,000 to a youth band, the S.S.F. Blue Knights, that was an outgrowth of a trip taken to a City in Mexico and they had gone on to represent the City. She stated that after two years the youths had grad- uated and the program disintegrated but the $5,000 had been used by the band. She stated that Homart then gave the City $10,000 seed money, and the idea was to go out to the com- ADMINISTRATIVE BUSINESS 6. Resolutions - Continued. 17. Discussion and direction regarding school surplus sites. ADMINISTRATIVE BUSINESS munity and raise money from corporate S.S.F. which would be set aside with interest and used for cultural events in S.S.F. that would not otherwise come to the community. She stated that she put this on the agenda because that had never happened, and she was concerned that it may be absorbed in the General Fund. She stated that this presented an opportunity to have an excel- lent local community theater in-lieu of setting up this trust fund, going to the community to raise funds, and set up a committee to decide matters. Discussion followed: that Homart donated the mon- ey and should be brought back into the loop and do it right; that Homart was closing its main office and going to Southern California; the resolution on the books calls for a committee to decide guidelines; Mayor Teglia wanted to see the resolution rescinded; contents of the existing resolution; City Manager would research the minutes ~ resolution for the next meeting; cultural arts subcommittee of Council being formed; the forming of a cultural arts citizens committee would come before Council later in the year. M/S Drago/Fernekes - To adopt the Resolution authorizing a $2,000 grant to Art Rise. RESOLUTION NO. 19-93 Carried by unanimous voice vote. City Manager Armas explained: the School District had declared surplus certain property; ranking order by State on who the property must be made avail- able to before being disposed of on the market; recommendation was to declare the City's intent to acquire the Memorial Park at Avalon School, the ballfield and adjacent parking lot on upper level of Avalon School, and the Alta Loma triangle; requests from the Avalon/Brentwood Homeowners Assn. to acquire surplus parcels; City's ability to acquire the property at 25 % of the market value; good faith efforts in reference to showing intent to purchase the property within 60 days, etc. Mrs. Joy Ann Wendler, 321 Granada Ave., on behalf of the Homeowners Assn. thanked the Coun- 1/27/93 Page 8 O54 ADMINISTRATIVE BUSINESS 7. Discussion - Continued. RECESS: RECALL TO ORDER: 18, Discussion and direction regarding card club estab- lishment. .:5' I o ADMINISTRATIVE BUSINESS cil for their efforts to buy tho surplus property. Mr. Al Seubert also thanked the Council for their efforts to purchase the surplus school property and preserve the natural beauty of the area. Discussion followed:.~, how much of the ten acres would be bought at the 25% purchase price; City was entitled to the acres under the Naylor Act; MIS Fernekes/Penna - To accept the staff recom- mendation on purchase of surplus school property. Carried by unanimous voice vote. Council adjourned to a recess at 8:55 p.m. Mayor Teglia recalled the meeting to order at 9:05 p.m., all Council was present. City Manager Armas stated that a specific applica- tion or proposal had not been received, however, the City had been contacted by individuals on the possi- bility of locating a cardroom at the Sierra Point site. He stated that in the event an application was sub- mired staff must be directed to investigate whether it would be done through the usual land use process or whether it will require a vote of the public. He spoke in detail: on Policy 47 contained in the General Plan; General Plan and existing cardroom regulations indicate that the two existing legally non- conforming uses should be permitted to continue to operate, but that any expansion of these businesses should be submitted to the voters for their consider- ation; 1984 legislation that exempts those communi- ties which permitted the operation of card clubs prior to I/1/84 from having to obtain voter approv- al; this exemption is unclear for S.S.F., and would require research; the analysis would not have to be performed if the Council was to indicate that a card club facility requires voter approval; voter approval is not applied where a County or City permitted card clubs prior to January 1984; staff was in need of Council direction. Mr. Robert Abell, Golden Coast, Inc., stated that he would have the General Manager of their hotel 1/27/93 Page 9 ADMINISTRATIVE BUSINESS 8. Discussion- Continued. 1/27/93 Page 10 055 ADMINISTRATIVE BUSINESS group speak. Mr. Mark Wilder, Long Beach, CA., spoke in detail: fourteen cities in Calif. have enabling legis- lation and benefit from revenue from cardrooms that have helped them during current economic setbacks; S.S.F. has two. active licensed cardrooms~owned by the Pasco family; Golden Coast, Inc. had a develop- ment conceptually envisioned that needs a great deal of work and cooperation of the City and the elector- ate; City of Commerce had less than 25,000 people, and received 50% of its budget from cardroom revenue; that their complex would have fine enter- tainment, restaurants, night clubs, and playing of legalized card games rather than going out of State to play; that the development would be similar to a re, sort; and urged the Council to look at this as a new source of revenue of $10,000,000-$12,000,000 a year; they wanted a partnership with the City and be a part of the community; a proposal would be forthcoming after the Council made a decision. Mr. Jack Stuart, 910 Linden Ave., stated that he was a retired Inspector from the D.A. Office and had spent many years investigating illegal and legal gaming in cardrooms. Ho stated that in reading the staff report it was only a matter for the Council to decide if it was a land use or if it was going to the voter, and would voice opinions at a latter date. He stated that he was representing the Oldtown Historic Homeowners Assn. that had opposed the two operating cardrooms' expansion program in the past, and did oppose the speculation of a monstrous cardroom of 200 tables and lots of money being promised to the City. Ms. Evelyn Martin, 534 Commercial Ave., asked that the Council properly uso their mikes so they could be heard. She stated that the Pasco brothers had been men- tioned in the presentation, and related that the Pasco family had always donated to any and all churches, clubs, community and charitable events throughout the years, and she supported the Pasco family in all their activities. ADMINISTRATIVE BUSINESS 8. Discussion- Continued. 1/27/93 Page 11 A~ION ~AK~N 056 ADMINISTRATIVE BUSINESS She spoke in detail of the founders of this town that included the Pascof~Velte family and their cardrooms that provide a place for fun and enter- tainment for men after a hard day's work, and they provided excellent management with total coopera- tion with City officials and the police. She stated that if a proposal were accepted it should be from the Pasco family that has a proven record of community involvement and support, as well as their efforts further benefitting the community through added jobs. She stated that this would only require a transfer of license and the City would have another source of revenue to reduce the deficit. Mr. Ed Gioffre, 737 W. Orange Ave., stated that he was bom and raised in S.S.F. and felt that the City should look at the many positive points of card- rooms, i.e., 1,000 jobs for residents; added revenue; moving the two cardrooms into one east of the Bayshore that was isolated from the residential areas; more money for recreation and library ser- vices that are not now provided; etc. Mr. Edward Tarkman, 664 Fifth Lane, stated that he had relocated his business in S.S.F. and felt it was a good place, and that cardrooms were a good thing because they provide revenue and jobs, be- cause other businesses were moving away and clos- ing east of the Freeway. He also felt that it would further clean up Grand Avenue and make it safer. He stated that he had personally known the Pasco family for a over twenty years and knew their contributions to the City, and there was a lot of competition from San Bruno, San Mateo and Burlingame, and felt the Council should act on the issue and improve it. Mr. Lou Dell'Angela, 460 Gardenside, stated that he had no obvious objections to cardrooms provided protections are imposed. He felt that the Council should consider a card club at Sierra Point consider- ing the economic times, and the second issue he felt was clear in General Plan Policy 47, that a vote was required if there were a proposal before the City from a particular group right now. A~NDA ADMINISTRATIVE BUSINESS 8. Discussion- Continued. 1/27/93 Page 12 AI~TION TAKI~N . 057 ADMINISTRATIV~ BUSINESS He stated that Mr. Wilder was saying we were discovering gold in cardrooms with respect to the revenue it could bring, yet he had worked in Gardena that had five cardrooms and had seen the down side, and urged the Council to move cautious- ly and not short cut the matter. He stated that he did not know who this group was,~ however;' you- have the Pasco family who the people know and it should not be made into a one organization issue rather than a land use issue. He stated that he felt it was an advantage to put it before the voters because it was something that could help the community and the schools as well in revenue through the ballot measure. He stated that here was a new group asking for the one cardroom license, and on the other hand was the Pasco family with a long history in the town and part of the community, and the cardroom license - how does the Council make the decision on who gets the license at Sierra Point. He questioned: what the Kohl Company thought about this proposal; how are the existing clubs to continue to operate if not allowed to move; how the police felt about this and other impacted departments - he felt these were unanswered questions that the Council had to deal with. John Ritchie, Esq., 505 Sansome St. S.F., stated that he was speaking on behalf of the Pasco brothers on this issue. He stated that the nature of gambling had changed over the last forty years, and the crux of the matter was how a license was to be issued and to whom. He stated that promises can be made about revenue to the City by the people from the outside, however, they were not in the best interests of the City when the Pasco family represent a business that has been established for a long period of time. He felt that great consideration should be given to the people who have the long standing roots, and a vested inter- est in this community; and who in an effort to pro- mote this valid concept may not want to associate with this group that approached the City - but, come forward with their own separate proposal. He stated that being a lawyer he was not convinced that it was .-~DMINISTRATIVE BUSINESS S. Discussion- Continued. 1/27/93 Page 13 O58 ADMINISTRATIVE BUSINESS a cut and dried matter of a vote or whether it was a land use issue. Councilman Drago stated that he did not have a closed mind on additional revenues to keep services going, but whichever way was decided he wanted to see some conditions set: He wanted to see only one permit in the City, so we don't have an influx of casinos, and that it be remote from the residential; that it be involved with the two existing cardrooms as a part of the deal. He stated that it was not fair to them to allow a major cardroom going into the City without them being a part of it, and he wanted to see them off of Grand Avenue and relocated. He stated that he agreed that it should be on the ballot, and he wanted a condition set on Mr. Dell'Angela's suggestion that the schools get some of the revenue. Councilman Yee stated that he did not have objec- tions to the existing cardrooms, but would be op- posed to any new casinos cardrooms in the City and therefore suggested that it be submitted to the voters. Mayor Teglia rdated: this City does not have an application before it that guarantees anything; that the promoter was talking about 200 tables; the bur- den was on the applicants for future proposals; that there was a need for cardrooms in the early days because many men were here without their families, stayed in hotels, and this served their human needs in historical context; that this would appeal to the regional draw; many cities had to double their police departments because of these casinos; finding a way to control the down side, and locate it where it impacts us the least; that something specific in wording should be put before the voters for them to make the choice. Discussion followed: Councilman Penna felt there was nothing to do until a proposal was put before the City; Vice Mayor Fernekes concurred that it required a vote of the public. Police Chief Datzman stated that he had a great deal of respect for the Pasco family, but if concerns were not offered from the police it would appear AGENDA ACT!ON TAKEN ._ADMINISTRATIVE BUSINESS 8. Discussion- Continued. 1/27/93 Page 14 O59 ADMINISTRATIVE BUSINESS that the silence was misunderstood. He stated that the comment had been made that gaming in Califor- nia had changed in the last 40 years, but the associ- ated problems with those types of things remain. He stated that he understood the concern over lack of revenue and trying to,get more revenue which, everyone was facing. He felt that the best thing was to look at revenue with a low protest relationship rather than something that looked to be too good to be true on the surface when they say they can bring $11,000,000 and there is nothing for you to worry about. He questioned what was meant by forming a community partnership - with whom, and how does it work. He stated that he would be remiss if he did not point out the following: just this week the owners of the Garden City Cardroom in San Jose were going to prison for profit skimming, tax evasion, conspiracy, and grand thef~ that involves 11 managers, employ- ees, and owners; this same group had tried to open a cardroom here a few years ago; common practice for casino owners is to bankroll City pro- grams and that occurred in Garden City, which is the largest contributor in Santa Clara County to various kinds of campaigns and fund raising activi- ties; article after article shows a relationship with money laundering, skimming, loan sharking, home robberies related to large Asian money games; owners of Bell Gardens were convicted in 1988 of laundering $12,000,000 in Miami area drug profits to the casino; in Commerce City, officials pled guilty to racketeering and bribery charges related to a scheme offering secret shares in the business; in San Diego they said it cost more to police the cardrooms than they got back in revenue; L.A. Times spent five months on an investigation that showed wide spread evidence of organized cheating, loan sharking, bookmaking, and other illicit activities; El Dorado Cardroom in Gardena said they would be a damn fool if they didn't allow bookies in their establishment; Attorney General was asking what kind of people this attracts to the community; increase in Asian games in Emeryville is creating gang related robberies traced to the very location during this past year. A~NDA _ A~DMINISTRATIVE BUSINESS 8. Discussion- Continued. 19. Unreinforced masonry building ordinance update. ACI!ON IAKt~ . 060 ADMINISTRATIVE BUSINESS He suggested caution in approachiDg this because there is talk afloat as to where gambling is going, and the Sheriff of LA. County was recommending that a State Commission be formed because the local level controls were not working. He stated that if that happened control would be taken away from. local government, . and possibly revenue; He stated that if the casino was allowed, then he would recom- mend that the City place the strongest of controls. Mayor Teglia stated that it appeared that there was a majority of Council that if in fact a cardroom expan- sion was going to be entertained or the establishment of any new ones, it would have to be through the ballot process. Councilman Penna stated that two of his clients have URM buildings, and he stepped down from the dais at 10:10 p.m. and did not take part in any discussion or vote on this item. Director of Economic & Community Development Costello presented her staff report: had identified 22 URM buildings; 17 had completed the engineer- ing analysis; one building was granted an exception; the other 4 had asked for extensions that were grant- ed; six had submitted plans for retrofitting; two properties will be demolished; City is putting out proposals for their buildings; Metro and Good & Fowler Bldgs. are being retrofitted; researched public and private funding, and found it was bleak; need direction to define"time of sale" and on retrofitting on sale or trans; will meet with owners and come back in a month with ordinance. Mr. Alan Askar commended staff on their efforts, felt the staff report was accurate, however, the blue sky figure of $75,000 used some years ago for retrofiring his building was really $200,000. He stated that the funds are still not available because the funds will not save the building - just lives which they were also very concerned about. He expressed concern that if the ordinance requires retrofitting at the time of sale or transfer it would cause an undo hardship because in his case a trans- fer would involve a death of a parent and not a transfer of money. 1/27/93 Page 15 4DMINISTRATIVE BUSINESS Discussion- Continued. (Cassette No. 2) 1/27/93 Page 16 061, ADMINISTRATIVE BUSINESS He stated that the language on exemptions "line of sanguinity" was taken out of AB1963 wherein the State recognized there was a hardship in getting these buildings retrofitted, and they recognized the reasonableness of time of sale, etc. He stated thata reasonable solution.would be at the time of sale and urged the Council to include that language in the ordinance because a mandatory retrofit would result in the buildings being torn, down. Mr. Eric Gavida stated that he represented the own- ers of 22:5 Grand Ave. who were concerned about retrofitting being at the time of transfer or sale. He stated that if he was to inherit the property from his Grandmother he would probably sell the land for college in that he did not have experience in running the business or money to retrofit. He stated that the retrofitting costs keep escalating from the original estimates, and questioned if there were loans avail- able from the City. Director of Economic & Community Development Costello stated that there were only loans available for low and moderate income housing. Discussion followed: that some cities had loan programs; that this would be market rate financing, and would be expensive; City would have to ascer- rain the viability of a public loan program for the Downtown Central Project, and identify what reha- bilitation was eligible and whether the loans were affordable; whether the owners would participate; Councilman Yee had suggested setting a cutoff date in July, and did not know if the issue of transfer or point of sale was any different today; Mayor Teglia didn't want this circumvented for 20-30 years. Consensus of Council - Direction to staff is to have the cutoff within seven years after a transfer or it must be at the point of sale, and staff to look at ta loan program. Mr. Askar suggested an incentive wherein if a build- ing is demolished, allowing it to be replaced without setbacks or regard to parking requirements to make it attractive to a buyer. .,, ADMINISTRATIVE BUSINESS 9. Discussion- Continued. 20. Informational report concerning Terrabay Project. ADMINISTRATIVE BUSINESS Ms. Olga Gavidia stated that she had received a loan from the City for the engineering analysis and had three more years to pay off the loan, and if the building is demolished rather than retrofitted she would not get anything for the building. She ques- tioned who had declared the building unsafe, and whether the City wanted more empty lots on Grand Ave., such as the Pasco lot near her building, because she could not pay to have the building retrofitted.. She stated that she had talked to engi- neers that were retrofitting buildings, and they had said they did not know what would happen to the retrofitted buildings in an earthquake. Director of Economic& Community Development Costello stated that given the Council shift in direc- tion they would not be back in a month with an ordinance but would come back with the feasibility of funding and the ordinance in several months. Chief Planner Solomon gave the staff report that responded to Ms. Pont's questions at an earlier meeting on the Terrabay Project: Terrabay Assoc. owns Terrabay, but he understood that the RTC conducted a sale on 10/14/92 but the City would not know the results until mid February on who had acquire the note which included the property; the Specific and Precise Plans and Development Agree- ment remain in place for the development; there are no active building permits; he had been notified that there is a land slide on the site that needs major repair; catchment basins were covered by a JPA, but Terrabay Assoc. is responsible for the maintenance; there were plans for recreational trails that the own- er is not required to finish until residential develop- ment is completed; the two faults were known at the time of the EIR; studies indicate the faults have been there for 200 years and are inactive, and do not impact the designed project; Ms. Pont had been provided with a copy of the staff report and staff would meet with her when requested. Ms. Pont responded: February of what year did the staff report refer to; would we learn who had ac- quired the note; staff report indicates the develop- ment would be finished March 199:5; why the report was not read into the record; land slide area and its instability related to as San Bruno rather than Hill- side fault line; she had photos of silt collecting in a 1/27/93 Page 17 ADMINISTRATIVE BUSINESS 0. Discussion- Continued. LEGISLATIVE BUSINESS 21. Motion to waive reading and introduce the ordinance on abandoned vehicles. AN ORDINANCE OF THE CITY COUNCIL OF SOUTH SAN FRANCISCO AMENDING CHAP- TER 8.48 OF THE MUNICIPAL CODE RELAT- ING TO ABANDONED VEHICLES ITEMS FROM COUNCIL 22. Oral Committee reports. GOOD AND WELFARE CLOSED SESSION Closed Session for the purpose of the discussion of personnel matters, labor relations, property negotiations and litigation. ADMINISTRATIVE BUSINESS catch basin; who provided the security indicated by signs that denied access to the Mountain so she could not walk there; she gave photos to the Coun- cil. Chief Planner Solomon responded: that the U.S. Geology Service had named the fault line; that the Resolution Trust Corp. would make the determina- tion in February of this year on the sale. City Manager Annas stated that the intent was for the private property owner to provide security to the extent needed. Police Chief Datzman stated that he would investi- gate the signs and report back. LEGISLATIVE BUSINESS Police Captain Moss stated that this ordinance would allow abatement of abandoned vehicles off of the highway, as well as public and private property. MIS Drago/Penna - To waive reading and introduce the ordinance. Carried by unanimous voice vote. ITEMS FROM COUNCIL Councilman Penna commented that he had noticed that the catch basins on the Mountain were full of mud. Mayor Teglia passed out the Committee assign- ments, and asked that Councilman Yee serve on the JPA for Terrabay catchment basins. GOOD AND WELFARE No one chose to speak. Council adjourned to a Closed Session at 11:25 p.m. pursuant to GC 54058 to discuss a personnel matter - recruitment of the City Manager. 1/27/93 Page 18 061-4 __LRECALL TO ORDER: Mayor Teglia recalled the meeting to order at 11:30 p.m., all Council present, no action was taken. MIS Drago/Yee - To adjourn the meeting to Wednesday, 2/3/93, 6:00 p.m., City Council Con- ference Room, City Hall for a Closed Session for the City Managex recruitment pursuant to Govern- ment Code. ADJOURNMENT Carried by unanimous voice vote. Time of adjournment was 11:31 p.m. RESPECTFULLY SUBMITTED, Barbara A. Battaya, City City of South San Francisco APPROVED. Roberta C%rfi Teglia, ~ay~./ City of South San Francisco he entries of this Council meeting show the action taken by the City Council to dispose of an item. Oral communica- uons, 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. 1/27/93 Page 19