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HomeMy WebLinkAboutMinutes 1997-05-28 Mayor Joseph A. Fernekes Council: James L. Datzman Eugene R. Mullin --lohn R. Penna Robert Yee MINUTES City Council O49 Municipal Services Building Community Room May 28, 1997 SPECIAL MEETING CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO MAY 28, 1997 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 28th day of May 1997, at 6:00 p.m. in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California. Purpose of the meeting: Interview of applicants for the Conference Center Authority City Clerk City of South San Francisco Dated: May 22, 1997 A~ENDA ACTION TAKEN CALL TO ORDER: (Cassette No. 1) 6:05 p.m. Mayor Fernekes presiding. ROLL CALL: Council Present: Council Absent: Datzman, Mullin, Penna and Fernekes. Yee. Interview of applicants for the Conference Center Au- thority ~" ! ~..~ Council interviewed Mr. Emanuele Damonte and Mr. Albert Dimminger. Mayor Femekes stated Mr. George Chimenti and Ms. V. Marie David would be interviewed at a later time. M/S Mullin/Penna - To adjourn the meeting. Carried by unanimous voice vote. DJOURNMENT: Time of adjournment was 6:37 p.m. 5/28/97 Page 1 AGE_NDA ACTI_QON TAKEN RESPECTFULLY SUBMITTED, Barbara A. Battaya, City Clerk~ City of South San Francisco APPROVED. Jo~,ph/~/Fer~Jc~7~ayor C~/y of South San Francisco The entries of this Council meeting show the action taken by the City Council to dispose of an item. Oral communica- tions, arguments and comments are recorded on tape. The tape and documents related to the items are on file in the Office of the City Clerk and are available for inspection, review and copying. 5/28/97 Page 2 Chairman loseph A. Fernekes Boardmembers: James L. Datzman Eugene R. Mullin tohn R. Penna Robert Yee MINUTES Capital Improvements Financing Authority Municipal Services Building Community Room May 28, 1997 SPECIAL MEETING SOUTH SAN FRANCISCO CAPITAL IMPROVEMENTS FINANCING AUTHORITY OF THE CITY OF SOUTH SAN FRANCISCO MAY 28, 1997 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 28th day of May 1997, at 6:50 p.m. in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California. Purpose of the meeting: 1. Roll call. -- 2. Approval of the Minutes of the Special Meeting of 12/18/96. 3. Resolution authorizing Downtown Central Redevelopment bonds. A RESOLUTION OF THE CITY OF SOUTH SAN FRANCISCO CAPITAL IMPROVEMENTS FINANCING AUTHORITY AUTHORIZING THE PURCHASE AND SALE OF NOT TO EXCEED $13,000,000 PRINCIPAL AMOUNT OF DOWNTOWN/CENTRAL REDEVELOPMENT PROJECT 1997 TAX ALLOCATION BONDS UPON CERTAIN TERMS AND CONDITIONS, APPROVING DISTRIBUTION OF OFFICIAL STATEMENT RELATING THERETO AND PROVIDING OTHER MATTERS PROPERLY RELATING TO THE DOWNTOWN/CENTRAL REDEVELOPMENT PROJECT 4. Adjournment. Dated: May 15, 1997 i2ity Clerk City of South San Francisco CALL TO ORDER: DLL CALL: AGENDA (Cassette No. 1) ACTION TAKEN 6:58 p.m. Chairman Fernekes presiding. Capital Improvements Financing Authority Present: Datzman, Mullin, Penna, Yee and Fernekes. 5/28/97 Page 1 TAKEN ROLL CALL Approval of the Minutes of the Special Meeting of 12/18/96. Resolution authorizing Downtown Central Redevel- opment bonds. ~'/~'".-.~ A RESOLUTION OF THE CITY OF SOUTH SAN FRANCISCO CAPITAL IMPROVEMENTS FI- NANCING AUTHORITY AUTHORIZING THE PURCHASE AND SALE OF NOT TO EXCEED $13,000,000 PRINCIPAL AMOUNT OF DOWN- TOWN/CENTRAL REDEVELOPMENT PROJECT 1997 TAX ALLOCATION BONDS UPON CER- TAIN TERMS AND CONDITIONS, APPROVING DISTRIBUTION OF OFFICIAL STATEMENT RELATING THERETO AND PROVIDING OTHER MATTERS PROPERLY RELATING TO THE DOWNTOWN/CENTRAL REDEVELOPMENT PROJECT 52 Capital Improvements Financing Authority Absent: None. M/S Yee/Perma - to approve the Minutes of the Special Meeting of 12/18/96. Carried by unanimous voice vote. Coordinator of Economic & Community Develop- ment Beyer gave the staff report: the resolution authorizes the sale of $10 million of tax allocation bonds; the Council and Agency had a study session in 1996 and discussed the alterna- tives. Boardmember Penna stated he had a conflict of interest on this item, left the podium and did not take part in the discussion or vote on this item. Coordinator of Economic & Community Develop- ment Beyer continued: this specific project is well over $13 million and staff was directed to move forward and work with the consultant and bond underwriters for the needed documents which are before the Agency this evening. Discussion followed: this item is also on the Coun- cil agenda this evening; Boardmember Yee ques- tioned the $10 million figure vs. the $13 million figure used in the documentation; the difference is the net value; the requested level of maximum bond level is $13 million; the issue will be $11.6 million and that will be a net of $10 million and that is the target for the redevelopment in bond issuances; staff left room for the market and the $11.6 million will yield $10 million; because this is a tax allocation bond issue and because it is going to be paid for through revenue there is no need for a public vote; Attorney Oster explained the difference in bonds that must have a public vote; what happens where the tax increment is not sufficient to meet the obligation; that is the risk bond buyers take; so, this would have a higher interest rate because there is no fall back to the City; the rate is based on the tax increment; there is $2 million in the downtown fund and this additional $10 million is to give the flexibil- ity to do the projects and not wait to accumulate more tax increment and get the projects done soon- er; the City will receive 2% to 5% each year. M/S Yee/Mullin - To adopt the Resolution. 5/28/97 Page 2 A~ENDA ACI!QN TAKEN Jr, 53 3. Resolution - Continued. RESPECTFULLY SUBMITTED, Barbara A. Battaya, City Clerk City of South San Francisco RESOLUTION NO. CIP-53-97 Carried by majority voice vote, Boardmember Penna abstained. APPROVED. o~pn . rerne es, ayor Ci~ of South San Francisco The entries of this Council meeting show the action taken by the City Council to dispose of an item. Oral communica- tions, arguments and comments are recorded on tape. The tape and documents related to the items are on file in the Office of the City Clerk and are available for inspection, review and copying. 5/28/97 Page 3 Mayor Joseph A. Fernekes Council: James L. Datzman Eugene R. Mullin --lohn R. Penna Robert Yee MINUTES City Council Municipal Services Building Community Room May28, 1997 SPECIAL MEETING CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO MAY28, 1997 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 28th day of May 1997, at 7:10 p.m. in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California. Purpose of the meeting: Closed Session, pursuant to GC 54957.9, conference with legal counsel on pending litigation - Molieri vs. City of S.S.F. Adjournment Dated: CALL TO ORDER: ROLL CALL: May 22, 1997 AGENDA (Cassette No. 1) Closed Session, pursuant to GC 54957.9, conference with legal counsel on pending litigation - Molieri vs. City of S.S.F. ,.5' / ~'..~ x~ECALL TO ORDER: City Clerk City of South San Francisco ACTION TAKEN 7:15 p.m. Mayor Fernekes presiding. Council Present: Datzman, Mullin, Penna, Yee and Fernekes. Council Absent: None. The Council entered a Closed Session at 7:12 p.m. to discuss the item noticed. Mayor Fernekes recalled the meeting to order at 7:32 p.m., all Council was present, no action was taken and direction was given. 5/28/97 Page 1 AGENDA _ACIIQN TAKEN ADJOURNMENT: M/S Mullin/Yee - To adjourn the meeting. Carried by unanimous voice vote. Time of adjournment was 7:33 p.m. RESPECTFULLY SUBMITTED, Barbara A. Battaya, Ci City of South San Francisco APPROVED. City/cf South San Francisco The entries of this Council meeting show the action taken by the City Council to dispose of an item. Oral communica- tions, arguments and comments are recorded on tape. The tape and documents related to the items are on file in the Office of the City Clerk and are available for inspection, review and copying. 5/28/97 Page 2 Mayor Joseph A. Fernekes Council: James L. Datzman Eugene R. Mullin - tohn R. Penna Robert Yee MINUTES City Council Municipal Services Building Community Room May 28, 1997 CALL TO ORDER: ROLL CALL: AGENDA (Cassette No. 1) PLEDGE OF ALLEGIANCE: INVOCATION: PRESENTATIONS -~'gmmendations by Mayor Fernekes to Fire Chief Stark .d Paramedic Mike Ahern TCI - General Manager Schacher ACTION TAKEN 7:40 p.m. Mayor Fernekes presiding. Council Present: Council Absent: Datzman, Mullin, Penna, Yee and Fernekes. None. The Pledge was recited. Lay Leader John Cantley, Grace Covenant Church, gave the invocation. PRESENTATIONS Mayor Fernekes gave Certificates of Appreciation to Fire Chief Stark and Paramedic Mike Ahearn for their aid to a woman in full arrest, wherein they established a pulse using CPR so she could be trans- ported to the hospital. Mr. Schacher introduced Ms. Kelly to relate programming and rate changes. Ms. Stacy Kelly related: TCI acquired Western TV Cable last year and the rate calculations from the former owner; they expanded the services and rates based on the guidelines that the government set forth in order to calculate rates; Western adjusted the rates on a quarterly basis for a couple of external components and added TCI costs to go into effect in June; the expanded basic rates have already been reviewed up to April 1996 by the FCC and they found the rates are quite a bit below the rates we could have in place; she quoted rates which she said are lower than other cities; there are three years of inflation that have not been put into the rates; the second component is external costs that include a number of channels they have added; copyright fees they have to pay on the small broadcast that amount to 47% of the increase; they are not allowed to include any other types of operating costs of 5/28/97 Page 1 PRESENTATIONS ~ENDA 5/28/97 Page 2 ACTION TAKEN PRESENTATIONS o5 ; acquisition; there are no increased operating costs. Mr. Schacher described changes made to the various services: they moved Discovery to basis services; added Animal Planet, Fox News, Home & Garden, Cartoons, History Channel, Fox Sports and the sports channel was changed from a premium channel with a fee for the professional sports and signed an agreement to put that on expanded package; he believes the added programming provided a good package for the citizens whom they listen to; they have extended the hours for the customers to do business; there maintenance is 99.98% reliable; in the month of May there were less than 2% calls for service; later in the year, in the middle of the fourth quarter, the Disney Channel will be added to expanded basic service; etc. Discussion followed: TCI is not required to raise the rates, but has chosen to raise the rates; TCI does not own any channels, but do have some part own- erships through salvaging local networks from bank- ruptcy; taking the cost away from the Disney Chan- nel is being done in other markets; S.S.F. rates are already higher than other cities; TCI's rates are made up of the components they acquired; Council- man Datzman asked if programming guides will be available to the public for they are published by other companies; where is the organizational chart the Subcommittee asked for; TCI will send it out tomorrow; Mayor Fernekes stated the meeting of the subcommittee was prompted by the manner of noti- fication of the basic rate increases in the mail that extends those rates 12-14%, it is unfortunate that the Council does not have the prerogative to approve those rates; one of the issues, part of the agreement, is you are supposed to expand the system and part of that is fiber optics; TCI is still looking at all the options and the driving force for expansion are for programming and that is what customers are looking for - more choice, so they are looking at fiber optics and digital systems; the rate increase is far greater than inflation which has only been two to three percent a year, so how does TCI come up with 14%; City Manager Wilson stated there were no changes to the Agenda. A~ENDA ORAL COMMUNICATIONS 5/28/97 Page 3 ACTION TAKEN ORAL COMMUNICATIONS Mr. Richard J. Busalacchi, 406 Forrest View Dr., stated he owns a home on San Felipe and related the following on the noise insulation program; his prop- erty is not covered at this time, yet rental properties are being covered in the program; he feels the peo- ple in his unit should be able to get whatever people in other rented units are getting, and the way it looks it is not going to be covered at all; he feels when they come through an area it should all be done, and the City should go for more money; he does not want to wait until the year 2000 before getting the home insulated. Mayor Fernekes stated the City is in the process of trying to acquire additional funds to do them. Mr. Pat Nobis, 125 Aldenglen Dr., stated he de- cided to sell his property to S.S.F., unfortunately because of all of the activity going on in his area, plus 80 additional homes to be sold, he was told to make a comprehensive disclosure that includes po- lice reports and the Council portion of meetings that dealt with the health and safety issue. He stated there were three of you that were a part of those meetings and he needs actual transcripts that will allow him to protect himself to sell the property. He stated this includes some of the audio tapes of the Planning Commission when they started the process and what they recommended, the police and how the Council acted. Since he has to make the disclosure that Sunstream is going to follow suit when they go to sell their properties because they will face the same thing, so he needs to request the transcripts. City Clerk Battaya stated she has completed minutes of the meetings, tapes are available to copy, howev- er, if the Council chooses it can direct the City Attorney to hire a Court Reporter to do verbatim transcripts because the City Manager's Office has audio/video tapes of all meetings. City Attorney Mattas stated Mr. Nobis can make a written request for public records, tapes of the vari- ous meetings will be made available and it will be up to him to have transcripts made, for the minutes are a written summary. Ms. Kathryn Mulgrew, 2407 Unwin Court, stated A~ENDA ORAL COMMUNICATIONS 5/28/97 Page 4 ACI!QN TAKEN 059 ORAL COMMUNICATIONS she was here to represent Ed Mulgrew, for due to recent surgery he is unable to talk against Measure C. She stated she has a couple of prepared argu- ments against the bond measure of $40 million: were it not for the Avalon-Brentwood homeowners insist- ing on a property appraisal for a piece of surplus school property, the district would have squandered away thousands of taxpayer dollars; this is not acting responsibly; they have failed to collect rent from a tenant in a school rental for six months and then lowered the rent 90%; where were the maintenance programs in their budget to handle these problems; why haven't they sold surplus school property; why wasn't the election held at the regular election last November for a third of the cost; Ed Mulgrew has evidence of various classroom equipment, in good shape, being thrown away in the crusher; when Mr. Mulgrew asked if he could take them home and fix the various equipment he was told no, we have the money to spend, throw them out; the school district administrators can't run 16 schools on $44,600.00 for equipment and set aside money for repairs?; don't believe what you read in the newspapers for they are being fed misinformation by the school district in regard to the assessment, number of years the assessment is going to cover and the cost of assessment; the assessment is only a guess, the real cost in unknown; Westborough has 4 more years to go on the common greens assessment and now we may get hit with another bond - payable over 25 years by our children -- no more phony bond issues or assessments, enough is enough is enough. Ms. Janet Ingersoll, 508 Cortesi, spoke in support of Measure C: Measure C isn't about politics, but children; S.S.F. schools continue to provide for the students; she and her brother graduated from local schools and from the skills afforded them and went on to universities; here son and daughter are prod- ucts of local schools and if she did not believe the schools offer the best she would not enroll them; the District has provided for three generations of her family; she spoke of the people that believe in education that signed the arguments; she urged people to vote yes on Measure C for the best of schools. Ms. Laurie Masetti, 256 Oakcrest Ave., spoke in favor of Measure C: this will provide warm schools A~ENDA ORAL COMMUNICATIONS CONSENT CALENDAR Motion to approve Minutes of the Adjourned Regular Meeting of 4/30/97. ACTION TAKEN 060 ORAL COMMUNICATIONS for the teachers and the students; the last bond issue was passed over 30 years ago and there is no bond- ed indebtedness today; the cost to the tax player will be approximately $26.00 per $100,000 of as- sessed value; other Districts are averaging $44.00 per assessed $100,000; there has been opposition to this and it is apparent the opposition is not aware of the facts; she reiterated her previous remarks made at a prior meeting and urged a yes vote on Measure C. Councilman Datzman noted his concern: flyers, without a name, that are passed out and stuck under doors and there is no way to contact the person writing the material; the second issue has to do with Kaiser Hospital for he has seen many changes over the past 30 years, an expansion, a move to the El Camino, purchase of a building on Orange and Railroad for a new facility, then they decide to sell that land which brings up what he raised before as to what Kaiser's long range plans are; he had a meeting with Kaiser on the 28th and asked that same question, what is the long range plan for that is important to the community for the local medical, and there is no answer, but they agreed to have a meeting on the 9th of June; he subsequently sent information to the Mayor for a Subcommittee for it is important to not wake up without Kaiser if there is a decision to move the medical from this City. Such decisions should be made with public aware- ness in the best interest of S.S.F. citizens. Mayor Fernekes related: three members were invit- ed to a girl scout dinner that was the 75th anniversa- ry, and Councilmembers Mullin and Datzman joined him for the awards ceremony; he complemented the schools and staff for the Youth and Government Day, during that he had the opportunity of meeting the President of the Philippines and Councilmembers Mullin and Penna were with him; they invited their student counterparts to attend and got to meet the President of the Philippines and gave him a City pin. CONSENT CALENDAR Approved. 5/28/97 Page 5 A~ENDA ACTION TAKEN . 061 CONSENT CALENDAR :. Motion to confirm expense claims of 5128/97. ~'0/,.,~ CONSENT CALENDAR Approved in the amount of $1,567,126.14. Resolution providing interim spending authority dur- ing the first 60 days of the 1997-98 fiscal year. ,5-'~ 7' 7 A RESOLUTION APPROVING INTERIM FUND- ING FOR FISCAL YEAR 1997-1998 FOR THE CITY OF SOUTH SAN FRANCISCO AND ADOPTING CORRESPONDING APPROPRIA- TIONS RESOLUTION NO. 53-97 Motion to accept completion of Aircraft Noise Insu- lation Program, Phase XII. .~'2.~ So ordered. Resolution to award contract for the Aircraft Noise Insulation Program, Phase XIV to G. E. Chen Con- struction, Inc. in the amount of $4,496,000 as the lowest responsible bidder. ~'2-<~ A RESOLUTION AUTHORIZING THE AWARD AND EXECUTION OF A CONTRACT BETWEEN THE CITY OF SOUTH SAN FRANCISCO AND G.E. CHEN CONSTRUCTION, INC. FOR THE AIRCRAFT NOISE INSULATION PROGRAM PHASE XIV RESOLUTION NO. 54-97 Resolution to award contract to Edward W. Scott Electric Co., Inc. in the amount of $156,362, as the lowest responsible bidder, and a budget amendment of $220,000 for the Westborough Street Lights Phase II Project. ~D <~ A RESOLUTION AUTHORIZING THE AWARD AND EXECUTION OF A CONSTRUCTION CON- TRACT BETWEEN THE CITY OF SOUTH SAN FRANCISCO AND EDWARD W. SCOTt ELEC- TRIC CO. FOR THE WESTBOROUGH STREET LIGHT PROJECT PHASE II IN THE AMOUNT OF $156,361 AND APPROVING A BUDGET AMEND- MENT (NO. 97-19) TO THE 1995-97 CAPITAL IMPROVEMENT PROGRAM IN THE AMOUNT OF $220,000 Motion to approve plans and specifications and au- thorize advertisement of bids for the Spruce Avenue Traffic Signal Interconnect Project. ,~t9 ~ RESOLUTION NO. 55-97 Removed from the Consent Calendar for discussion by Councilman Yee. Motion to approve plans and specifications and au- thorize advertisement of bids for Hillside Blvd. and 5/28/97 Page 6 So ordered. AGENDA ACTION TAKEN CONSENT CALENDAR ;. Motion - Continued. Chestnut Ave. Traffic Signal Installation Project. Resolution approving Downtown Central Redevelop- ment bonds. ~'O~ a/ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO AP- PROVING THE ISSUANCE BY THE REDEVEL- OPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO OF NOT TO EXCEED $13,000,000 PRINCIPAL AMOUNT OF BONDS RELATING TO THE DOWNTOWN/CENTRAL REDEVELOPMENT PROJECT 10. Resolution authorizing submittal of grant application to the David and Lucille Packard Foundation for $60,592.00 for Fiscal Year 1997-1999. ,_~ O 'Z. 3 A RESOLUTION AUTHORIZING SUBMITTAL OF A GRANT APPLICATION TO THE DAVID AND LUCILLE PACKARD FOUNDATION FOR $60,592 FOR THE 1997-99 FISCAL YEARS TO CONTIN- UE THE EXPANSION OF THE USE OF VOLUN- TEERS IN CITY DEPARTMENTS Motion to approve plans and specifications and au- thorize advertisement of bids for the Spruce Avenue Traffic Signal Interconnect Project. ~-0 ~0 CONSENT CALENDAR ... 062 So ordered. Removed from the Consent Calendar for discussion by Councilman Yee. RESOLUTION NO. 56-97 M/S Datzman/Yee - To approve the Consent Calen- dar with the exception of Items 7 and 9. Carried by unanimous voice vote. Councilman Yee stated the report says it only goes as far as No. Canal, and questioned why it does not go to Huntington and El Camino Real. Director of Public Works Gibbs stated only funds for this are available, for BART will not come into this. He recommended going ahead, but if BART interferes, then we must handle this later. Councilman Yee stated this only goes to No. Canal and Mayfair, and say you don't care what happens after that, but have we applied for Victory/Hunting- ton/El Camino Real and how long ago was it applied for. Director of Public Works Gibbs stated it was applied for two years ago. 5/28/97 Page 7 .._7. Motion - Continued. A~NDA Resolution approving Downtown Central Redevelop- ment bonds. ~O ~ '~ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO AP- PROVING THE ISSUANCE BY THE REDEVEL- OPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO OF NOT TO EXCEED $13,000,000 PRINCIPAL AMOUNT OF BONDS RELATING TO THE DOWNTOWN/CENTRAL REDEVELOPMENT PROJECT RECESS: RECALL TO ORDER: ADMINISTRATIVE BUSINESS Resolution approving a Memorandum of Understand- ing with First Point Utility Solutions, Inc., a Portland General Company as a preferred electric provider. A RESOLUTION AUTHORIZING AN AGREEMENT BETWEEN THE CITY OF SOUTH SAN FRANCISCO AND FIRST POINT CALIFOR- NIA, INC. RELATED TO PROVISION OF UTILI- TY SERVICES ACT!__O_N TA K_E N .. 063 MIS Yee/Penna - To approve plans and specifica- tions and authorize advertisement of bids for the Spruce Avenue Traffic Signal Interconnect Project. Carried by unanimous voice vote. Councilman Yee asked that the documents be changed to reflect the proper spelling of his name. M/S Yee/Mullin - To adopt the Resolution. RESOLUTION NO. 57-97 Carried by majority voice vote, Councilman Penna abstained on the item. Mayor Fernekes declared a recess at 8:35 p.m. Mayor Fernekes recalled the meeting to order at 8:50 p.m., all Council was present. ADMINISTRATIVE BUSINESS City Manager Wilson stated Maury Kruth worked with the staff and Subcommittee on this item and will give an overview on the status and the opportunities provided. Following the presen- tation he will introduce officers of Portland General Company, and then he will take the Council through the details of the agreement. Mr. Maury Kruth, Senior Vice President of RMI, stated he has been working with City staff looking for opportunities to lower the electric rates after the recent deregulation of electricity firms. He related: we have reached an important milestone and will produce savings for the City; his presenta- tion is to have an update in choosing this as your partner; electricity is a large business, and the State spends $23 million on electricity and the legislature recognizes this is a problem since the rates in Cali- fornia are 50% higher than neighboring states and this led to the unanimous passage of legislative bill AB 1890 in the Assembly and Senate; this opens it up to customer choice on electricity; historically, electricity has been provided by PG&E and every- thing down to the local meters including all service; now, you will see a number of opportunities for a variety of suppliers for customer choice, but you 5/28/97 Page 8 ~ENDA ADMINISTRATIVE BUSINESS 1. Resolution - Continued. 5/28/97 Page 9 _AC_T!QN TAKEN . 064 ADMINISTRATIVE BUSINESS will see the same companies in terms of distribution; in trying to save money for the citizens there are a variety of alternatives - status quo, load aggregation by others, load aggregation by S.S.F. with partners, partial municipal system, municipal system with leased facilities or municipal system with ownership; the City issued an RFP with a number of bankers that wished to help; staff and the Subcommittee interviewed five major firms, all of which were the same size or larger than PG&E; the firm recom- mended to be selected is Portland General Company First Point Utility Solutions, Inc. as the preferred electric provider; some key features in the agree- ment - to form a team to offer electricity and the folks will get a guaranteed savings and if everyone takes advantage will be $2 million a year, it is a five year agreement and is better than others like ABAG's agreement; the 5% is a minimum savings and Portland could do better than that; PG&E will still do the metering and distribution; reimbursed city expenses; an average $100 monthly bill would now be $95; there is an effort to lower the residen- tial/commercial by 10% and they are having difficul- ties because of the bond issues; it creates a good incentive and is wise for the residents to chose it because it is better service and cheaper rates and without risk to the City. Discussion followed: since the rate is tied to the PG&E rate, how often does this change; they are not likely to change more than the 10% because the Assembly Bill froze them and that is part of the complex deal to give PG&E ability to pay off their costs so it will deliver more savings quicker than if you do nothing; most of the utility rates are coming down in the near future; Portland's intent is to work with the City to get the market share and make it as attractive as possible; the resident has the option to select their power provider; how often would a client be able to change providers if PG&E becomes more competitive; the PUC is going through rule making, but it looks like they are trying to find a balance and not drive the prices up; Ms. Jan Grego- ry, First Point Utility Solutions, Inc., stated the City Manager will be reviewing the business agreement and will be able to answer any detail questions; First Point's goal is to improve the commitment with lower utility costs and protect the customers; Port- land General owns three businesses - PGE Electri- A~ENDA ACTION TAKEN ADMINISTRATIVE BUSINESS 1. Resolution - Continued. 5/28/97 Page 10 065 ADMINISTRATIVE BUSINESS cai Utility, First Point Utility and Telecommun- ications; we are a customer/community operated company and are actively involved in doing projects in the community and schools, and put computers in the schools; we are the largest generator of gas in Northern America; the company is 107 years old in Portland; there are other competitors from Southern California Portland General will be competing against for residential and commercial; we are com- mitted to have an office here to establish Portland's presence and develop needs; we are committed to providing the electricity and natural gas and tele- communications, perhaps the Internet will become part of the package; Councilman Datzman stated page ten of the sample agreement talks about the local office and he questioned if that would be manned by a live person or by a push button phone; Portland will have a number of staff in the office setup to meet consumer needs; it is not open all day, but certain hours, but there will be a phone number to call to answer questions on the rates to help them understand our outages; in the event the office is already closed there will be a 1-800 number 24 hours a day; will someone be assigned full-time or just in a region; Portland's client if S.S.F. and will have an office to serve the community and we will be headquartered here; Councilman Yee stated there will be two concerns - my rate is too high and the second question is, where is my electricity; Portland will interface with PG&E; so, for the first question Portland responds and PG&E responds to the second question; Portland will begin positioning themselves in the community very quickly, starting July 1 we have the authority to start making our presence known and begin signing up customers and January 1 we can serve them; Vice Mayor Mullin stated the City's name will be on the literature and are offering to our residential and commercial customers in our best judgment through a long process we have been going through and think it is for the advantage of the community to make the switch to Portland; the agreement will go for five years, during which time PG&E can pay off their costs; there will be people that we did not select out soliciting business, so the advantage you have is that you are our part- ners and we are recommending Portland to the community; Councilman Yee stated, if that is the case then any one in the community can sign up with other companies, as well as with Portland; City AGENDA ACTION TAKEN ADMINISTRATIVE BUSINESS 1. Resolution - Continued. ITEMS FROM COUNCIL 5/28/97 Page 11 066 ADMINISTRATIVE BUSINESS Manager Wilson stated most companies will be look- ing for large customers to serve and there is less interest in going down and serving the single family detached homes, and with the rate structure there is an interest to go to the small and large commercial; this agreement with Portland is saying we will serve anyone, so come January 1st every home and busi- ness will have a choice and will have a reduction in rates; this agreement is in lieu of a franchise agree- ment and calls for an exclusive agreement between the City and Portland; there is also a provision in the document that says Portland will have to pay a comparable amount to what a franchise will be; this is a free market and the companies have to be licensed by the PUC as an aggregator and there is a $200 fee and anyone can come into the market; the PUC will have rules on switching companies; for the first year PG&E will read the meters and pro- vide data; Portland will be required to perform all retail support services that are allowed by the PECK that include the billing customer services, marketing and working with PG&E and responsible for supply- ing the power to the customers for five years; there is a minimum of a 5 % savings and maybe even greater amounts; explore the treatment plant and make recommendations on the options and are pre- pared to undertake regulatory support monitoring the PUC along with mercury reporting and provide technical support to the businesses and assist build- ers and developers; they are going to handle the aggregation and provide metering options and modi- fy the billing to meet the needs of the customers; they will work with the City for the marketing for the strategy for the attraction of new business and coordinate a marketing program; City Attorney stated this is an enabling document; etc. M/S Mullin/Penna - To adopt the Resolution. RESOLUTION NO. 58-97 Carried by unanimous roll call vote. ITEMS FROM COUNCIL Mayor Fernekes introduced Sally McCloud as the new Director of the Chamber of Commerce. Councilman Penna noted Council had a lot of work AfiENDA ITEMS FROM COUNCIL GOOD AND WELFARE CLOSED SESSION L Closed Session, pursuant to GC 54956.9, conference with legal Counsel on existing litigation - Caines vs. City of S.S.F. ~'/~'~ Councilman Penna Left the Closed Session. RECALL TO ORDER: 13. Motion to adjourn the meeting to Thursday, 6/5/97, 6:00 p.m., City Council Conference Room, City Hall for a study session to discuss: 1) El Camino corridor market analysis; 2) scavenger franchise agree- merit/junk collector ordinance; 3) Closed Session, pursuant to GC 54957.6, labor negotiations for AFSCME, Management, Confidential and Executive Management. _ACI!QN TAKEN · 067 ITEMS FROM COUNCIL and asked that study sessions be shortened to 1-2 hours and start at 5:00 p.m. so the public can at tend, and the Council's concentration is better at shorter meetings. Vice Mayor Mullin stated that was an admirable goals, but if the Council could be precise in study session they could be shorter for the Subcommittee took six hours to select Portland. Councilman Yee suggested going from 6:00 - 9:00 p.m. Councilman Datzman suggested 5:00 - 8:00 p.m., but on Wednesday evenings. GOOD AND WELFARE No one chose to speak. CLOSED SESSION Council entered a Closed Session at 10:00 p.m. to discuss the item noticed. Councilman Penna left the Closed Session at 10:27 p.m. and did not return to the meeting. Mayor Fernekes recalled the meeting to order at 10:50 p.m., all Council was present with the ex- ception of Councilman Penna, no action was taken and direction was given. MIS Mullin/Yee - To adjourn the meeting to Thurs- day, 6/5/97, 6:00 p.m., City Council Conference Room, City Hall for a study session to discuss: 1) El Camino corridor market analysis; 2) scavenger franchise agreement/junk collector ordinance; 3) Closed Session, pursuant to GC 54957.6, labor negotiations for AFSCME, Management, Confiden- tial and Executive Management. 5/28/97 Page 12 ,DJOURNMENT: AGENDA ACTION TAKEN Carried by unanimous voice vote. Time of adjournment was 10:50 p.m. 068' RESPECTFULLY SUBMITTED, Barbara A. Battaya, City Clerk City of South San Francisco APPROVED. ~t;P~f'S;uth San Francisco The entries of this Council meeting show the action taken by the City Council to dispose of an item. Oral communica- tions, arguments and comments are recorded on tape. The tape and documents related to the items are on file in the Office of the City Clerk and are available for inspection, review and copying. 5128197 Page 13