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HomeMy WebLinkAboutMinutes 1997-07-09Mayor Joseph A. Fernekes Council: James L. Datzman Eugene R. Mullin lohn R. Penna Robert Yee MINUTES City Council Municipal Services Building Community Room July 9, 1997 /¥3 CALL TO ORDER: ROLL CALL: AGENDA (Cassette No. 1) PLEDGE OF ALLEGIANCE: INVOCATION: PRESENTATIONS ~'oclamation - 1997 Spare the Air City Campaign Explorer Program by Police Chief Raffaelli -GENDA REVIEW ty Manager Wilson Requested: - Remove Item 6 and discuss to change language. -o27 ACTION TAKEN 7:30 p.m. Mayor Fernekes presiding. Council Present: Council Absent: Datzman, Mullin, Penna, Yee and Fernekes. None. The Pledge was recited. Rev. Ken Jones, Good News Chapel, gave the invo- cation. PRESENTATIONS Vice Mayor Mullin read the Proclamation aloud and presented it to Ms. Kate Lucchio of the MTSMA Agency. Police Chief Raffaelli related: the Explorer Program is for individuals between the ages of 14-18 or 21; it was started in 1987 and the program is in conjunc- tion with the Police Athletic League and the Boy Scouts; the program is to help youth prepare for the future through educational pursuits; he found they learned life experiences that they are able to deal with through the training they get; it's an 8 week academy at Canada College; individuals submit app- lications to the police, are interviewed by police officers and if they pass the background checks, we talk to their teachers and look at their grades; the police talk to neighbors to see the individual's char- acter; they wear a light brown khaki uniform, and after a year in the Explorers they can get into the leadership group; and he gave a detailed report of duties and opportunity to later go into being a PST or a policeman as a career. AGENDA REVIEW 7/9/97 Page 1 AGENDA ACTION TAKEN AGENDA REVIEW Add a Closed Session to the adjournment notice for existing litigation - Johnson vs. SSF. Mayor Fernekes Requested: - Remove Item No. 5. ORAL COMMUNICATIONS AGENDA REVIEW So ordered. So ordered. ORAL COMMUNICATIONS Mr. Jan Pont, 111 Belmont Ave., expressed con- cern: to have the traffic monitored between 7:30 and 10:00 in the morning; traffic headed east over Oyster Point blocks the intersection at Oyster Point and Airport; also traffic coming from Sister Cities Blvd. going over Oyster Point Overpass and blocks the intersection very badly; traffic on Airport headed north trying to cross Oyster Point Blvd., going to- wards Brisbane to the Overpass, seems to have trou- ble from the blockage; there is a sign to the people headed north trying to get on, "no turns on a red light"; she wants to see additional hours posted for the people to be able to turn and cross Oyster Point Blvd.; it doesn't make sense at midnight when peo- ple want to turn, why should they have to sit there when there is no traffic; at times there are trucks and some piggybacks that block the intersection and she wants to see tickets given; she waits for the light to turn green, but people jump the gun, they are too impatient and there is no one out there directing traffic and no on-ramp for people from Brisbane; the intersection should be controlled by monitoring the cars coming north from all directions on Oyster Point Blvd.; there is no place along that route for anyone to be picked up by a bus and it should be looked into; etc. City Manager Wilson stated, that area is one of the best studied for Terrabay, Mr. Gibbs has been working with CH2M Hill, and as Council is aware that intersection is 60% completed with two compo- nents to completion; he will have the police put it in the briefing sheet; etc. Councilman Yee suggested: looking at the sign for the peak hours only and get a traffic report, perhaps the lights are not timed right; checking out the tim- ing of the lights; etc. Mr. Collin Post, 1136 Sunnyside, stated a stop sign is needed at Holly and Sunnyside, for two cars came 7/9/97 Page 2 AGENDA ACTION TAKEN ORAL COMMUNICATIONS COMMUNITY FORUM CONSENT CALENDAR Motion to approve Minutes of the Special Meeting of 6/10/97, Special Meeting of 6/11/97 and Special Meeting of 6/11/97. 2. Motion to confirm expense claims of 7/9/97. d~-O/.~ ORAL COMMUNICATIONS through his house, for you can't see down the street. COMMUNITY FORUM Councilman Datzman related: concerns about where Kaiser Hospital is going and how that might relate to the patients concerns and SSF residents; on 6/30/97 he and the Mayor met with Dr. Bliss from Kaiser and they were nice enough to provide two regional representatives to attend and we covered a lot of items; Kaiser agreed to set up quarterly meetings to apprise us; election filing period is 7/14/97 and he indicated in January, the question was would you be willing to run for election, and he will be standing in line Monday at the Clerk's Office; in home secu- rity, there was a fire where 9 people were killed and there were bars on the bedrooms and the resi- dents could not get out; we asked staff to look into this and let us know what can be done in an ordi- nance, for Daly City did adopt an ordinance. Fire Chief Stark related: in response to Menlo Park and other cities fires where there were bars on the windows, they counted 350 buildings in this City with bars; in State law one window must have a release mechanism to escape through the window; we are working to identify how many are illegal and they are developing a comprehensive report on how to fund the program; that report will be completed by the end of the month; Susan Kennedy is working on the target residents that have it; he will come forward next month with mitigation measures in an ordinance to enforce that. Mayor Fernekes related, coming to Council in Au- gust, this has to do with the ALSEMS System that the County is working on for all fire engines which will have paramedics on them, and how the ambu- lances will respond. We received a draft JPA and had a meeting yesterday and another in two weeks, so, if the Council has concerns please respond. CONSENT CALENDAR Approved. Approved in the amount of $1,714,464.61. 7/9/97 Page 3 AGENDA ACTION TAKEN CONSENT CALENDAR Resolution adopting the revised Joint Powers Agree- ment for the San Mateo Operational Area Emergency/ Services Organization. .5'0 ~-//:, A RESOLUTION ADOPTING THE REVISED JOINT POWERS AGREEMENT FOR THE SAN MATEO OPERATIONAL AREA EMERGENCY SERVICES ORGANIZATION 4. Motion to adopt an ordinance reflecting additions and deletions to various City positions. ~o~ o o O AN ORDINANCE AMENDING SECTION 3.12.010 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE TO REFLECT ADDITIONS AND DELE- TIONS RELATING TO THE PUBLIC WORKS DEPARTMENT REORGANIZATION AND A PO- LICE DEPARTMENT POSITION RECLASSIFI- CATION Motion to cancel the Regular Meetings of 8/27/97 and 9/10/97, and call a Special Meeting of 9/3/97. Resolution transferring $52,800 from the Sewer Enterprise Fund to the Water Quality Control Plant Improvement Project to retain Jerry Haag to prepare the Negative Declaration for the Project. ~'O ~ 7 A RESOLUTION AUTHORIZING THE CITY MANAGER TO PREPARE AND EXECUTE A CONSULTANT SERVICES AGREEMENT WITH JERRY HAAG FOR PREPARATION OF A NEGATIVE DECLARATION RELATED TO THE SOUTH SAN FRANCISCO/SAN BRUNO WATER QUALITY CONTROL PLANT IMPROVEMENT PROJECT AND APPROVING THE CAPITAL IMPROVEMENT BUDGET AMENDMENT NO. 98-1 7. Resolution approving an application for FEMA grant funds. ~0~0 A RESOLUTION APPROVING AN APPLICATION FOR GRANT FUNDS FROM THE HAZARD MITI- GATION GRANT PROGRAM AND AUTHORIZ- ING THE CITY MANAGER OR ASSISTANT CITY MANAGER TO EXECUTE THE APPLICATION AND RELATED DOCUMENTS CONSENT CALENDAR RESOLUTION NO. 81-97 ORDINANCE NO. 1205-97 Removed from the Consent Calendar for discussion by Mayor Fernekes under Agenda Review. Removed from the Consent Calendar for discussion by City Manager Wilson under Agenda Review. RESOLUTION NO. 82-97 7/9/97 Page 4 AGENDA ACTION TAKEN CONSENT CALENDAR 5. Motion to cancel the Regular Meetings of 8/27/97 and 9/10/97, and call a Special Meeting of 9/3/97. Resolution transferring $52,800 from the Sewer Enterprise Fund to the Water Quality Control Plant Improvement Project to retain Jerry Haag to prepare the Negative Declaration for the Project. ~--tg~ 7 A RESOLUTION AUTHORIZING THE CITY MANAGER TO PREPARE AND EXECUTE A CONSULTANT SERVICES AGREEMENT WITH JERRY HAAG FOR PREPARATION OF A NEGATIVE DECLARATION RELATED TO THE SOUTH SAN FRANCISCO/SAN BRUNO WATER QUALITY CONTROL PLANT IMPROVEMENT PROJECT AND APPROVING THE CAPITAL IMPROVEMENT BUDGET AMENDMENT NO. 98-1 Mayor Fernekes Stepped Down from the Podium. PUBLIC HEARINGS Public Hearing - Consideration of Negative Declara- tion ND-97-030 and General Plan Amendment GP- 97-030 deletion of freight forwarding and related uses from the Planned Industrial Land Use Category of the East of 101 Area Plan; Public Hearing opened and closed on 5/24/97, continued from 5/24/97, 6/11/97 and 6/25/97; discussion; adoption of resolution. &"O~q A RESOLUTION ADOPTING NEGATIVE DEC- LARATION ND-97-030 AND APPROVING GEN- ERAL PLAN AMENDMENT GP-97-030 AMEND- ING THE EAST OF 101 AREA PLAN POLICY 5A TO DELETE FREIGHT FORWARDING AS A USE CONSISTENT WITH THE PLANNED INDUS- TRIAL LAND USE CATEGORY CONSENT CALENDAR M/S Yee/Penna - To approve the Consent Calendar with the exception of Items No. 5 and 6. Carried by unanimous voice vote. Mayor Fernekes stated the Council will hold the 8/27/97 meeting, cancel the Regular meeting of 9/10/97 and not hold a Special Meeting. City Manager Wilson stated that United Anglers should be deleted. Vice Mayor Mullin questioned if the expanded consultant hours could be prorated downward. Public Works Director Gibbs stated they could. M/S Penna/Yee - To adopt the Resolution. RESOLUTION NO. 83-97 Carried by unanimous voice vote. Mayor Fernekes stepped down from the podium due to a conflict of interest at 8:05 p.m. PUBLIC HEARINGS Mayor Pro Tem Mullin opened the Public Hearing. Director of Economic & Community Development Van Duyn gave an overview of where they started from and a conclusion, he thought, was acceptable for the Council to adopt the resolution: the original document related to freight forwarding; it was discussed at a study session in Dec. or Jan. on growth related to freight forwarding; we saw a significant increase in the freight business, 55% increase, there was an increase in R&Ds, hotels, retail offices and other non-warehousing and the diminishing resource supply which is critical from the standpoint of opportunity in land use and long term City revenue; the components in the study were the $30 million for the sewer expansion, the Oyster Point Interchange and significant lighting; staff was to come back to Council and address the land use and they are proceeding with the following 7/9/97 Page 5 AGENDA ACTION TAKEN PUBLIC HEARINGS I. Public Hearing - Continued. 7/9/97 Page 6 PUBLIC HEARINGS objectives - provide for a balance in land use and the objectives of reducing land use conflicts, encourage and accommodate employment growth and revenue opportunities; Council heard this on 5/14/97 with a general plan amendment; the proposal would limit freight forwarding and limit new warehousing and extension of the related use permits east of 101; no action was taken on the amendment in order to allow the staff to respond to the issues raised and provide an opportunity to meet with property owners; since then we have an extensive staff report and have held four meetings with the freight forwarders and the property owners and compromised the general plan amendment that is Exhibit A, and that is supported by the majority of the businesses. Chief Planner Harnish stated staff endeavored to answer all the questions and they are in the staff report which is extensive, and proceeded to outline the changes in great depth. Mayor Pro Tem Mullin invited those wishing to speak for or against the item to step forward to the dais. Mr. Richard Van Doren, See's Candies, urged the Council to vote yes on the compromise, for Mr. Wilson brought us together, listened to us and learned about our business and he thinks it was an education for us. We learned about Mike and the pressures, for he has to raise the revenues for the police and fire. He complemented the Manager for listening to them and coming up with a usable plan. He has a letter he is drafting to his employees after the passage of the general plan amendment. Mr. Timothy O. Hannon, 300 Swift Ave., also urged the Council to accept the compromise on this. His industry is not overwhelmed by this, but we are pleased the City Manager and staff have worked so hard to think of terms of meeting in future, so we don't again come to these lengthy negotiations. He thinks they can use this for stepping stones and he urges the Council to accept the compromise. Mr. John D. Hoffman, 1 Ecker Bldg., Ste. 200, S.F., stated he appeared before the Council in May on behalf of the property owners and businesses in the East of 101 and supports the compromise. He AGENDA ACTI.QO N TAKEN PUBLIC HEARINGS ;. Public Hearings - Continued. 7/9/97 Page 7 PUBLIC HEARINGS stated he enjoyed being a part of the project and felt both sides learned from the other as Mr. Van Duyn said. Mr. Gary Miller, 573 Forbes Blvd., stated they had worked hard on it and came a long way, he thanked Mr. Wilson for all of his time and urged the Council to approve this. Mr. Jack Nichel, 530 Eccles Ave., urged the Coun- cil to pass the compromise immediately so we can all get along before midnight, and with luck not do it again in three years. Mr. Will Wohler, 713 Grandview, stated he is not a freight forwarder and does not use the services of the ones this will affect who will not be served by this compromise. There are also opportunities in the future that would be absent with this restriction. Jobs in the freight forwarding business might be low, but the economic activity that goes on is inter- national trade and generates other jobs that Council is not seeing that do not show up in these areas. Please keep this in mind in considering restrictions on the freight forwarders; etc. Gary Royce, Atty., stated he represents Gallo Sales who does not endorse this, and Gallo is the only individual that will come before you having unim- proved land and well be most dramatically affected. When he initially came before you May 14, he said his client was endorsing the policy set, and the goal, but at this juncture you are being counter produc- tive. He has met with members of staff trying to work a compromise, he did not participate with the others because their interests are aligned along dif- ferent patterns than Gallo, because they have real property. If Council adopts this compromise you are saying we have refused to allow new development unless it fits within the land use policies. From a personal perspective that is wrong. He has been here 30 years and practiced law for 27 years, he has never had a single problem in dealing with the City and we have a multitude of managers and changing of staff. He has dealt with one thing, a willingness by all of the Council to foster an atmosphere or to form mutuality of working together and attempting AGENDA ACTION TAKEN PUBLIC HEARINGS L Public Hearing - Continued. 7/9/97 Page 8 PUBLIC HEARINGS to do what is best for the community. This is the best example of that, Mr. Harnish and Mr. Wilson came under fire and took the fire and ultimately they have accomplished your intentions, to develop goals. They gave consideration to the property owners and the system worked. He respects the Council's goals, but wants to continue to work with you to develop our property and amend Section 20.010. The suggestion he made was simply that you indicate in the land use policy that warehousing, distribution and freight forwarding should not be permitted uses to go in the district unless after con- sideration of all of the relevant factors within the section that the Planning Commission or the Council determines appropriate. He continued with problems the Council will face: the language in the draft allows for three years, is not a moratorium; you opened the flood gates, change the use and go ahead with a distribution center and you are now inviting new users you don't want; you are precluding business from remaining respected members of the community; there are sev- eral people in the audience that approached Gallo and said they are thinking to expand and the gentle- man from See's said the same thing; property own- ers appeared before you last time and said this is a good business climate and they could work with you; as the business continues to grow these people need additional space and they come to Gallo; now, do those people want to continue in S.S.F. or are you saying you are not going to get it, for the lan- guage does not allow staff to work with the appli- cant so you are totally and completely eliminating and that is draconian; if you say we will continue applications, even though it is not R&D and the permitted use, we hoped would come into the City, and he did not think you will open the flood gates; if Gallo came to you and said they want to put up 50% office and warehousing, your language precludes it; if you were not so R&D and we proposed this, then all kinds of conditions could be assessed if they were set forth in the Municipal Code; you allow any qualified applicant to work with the City, setup the parking criteria and be prepared to impose any con- dition by way of example, you need to employ a certain amount of the residents of this City; you can assess any costs whether for streets or Oyster Point or the crossing; he is sure that in the year 2005 his AGENDA ACTION TAKEN PUBLIC HEARINGS ~. Public Hearing - Continued. 7/9/97 Page 9 PUBLIC HEARINGS client is going to find a R&D business; he feels the Council is going to accomplish the goal, but is open- ing the flood gates and eliminating in the future uses other than R&D. Mayor Pro Tem Mullin closed the Public Hearing. Discussion followed: Councilman Datzman stated the last time we spoke on this subject it was mid- night and it was difficult to be accommodating to a business community while trying to plan for the City's needs; he complemented staff, they took it to heart and acted professionally, and also acted for the best interests of the community; Councilman Penna stated in addition to Gallo, there were a few other property owners that came in to make applications for this type of warehouse use, and they were denied and are working on R&Ds; he is not prepared to change the policy at this time; the only limitation on continuation of non-conforming use, is if the use is not in operation for one year, then it has to be occu- pied by conforming use, but the Planning Commis- sion can extend it for another year; Director of Economic & Community Development Van Duyn stated, it becomes mute if you adopt this, because as proposed in the compromise it will not be non-con- forming, so the condition is mute; staff, in the com- promise, when the opponent had the designation of non-conforming, that provided a cloud on the prop- erty and ability for future leases, and the amendment itself makes the use conforming and no longer a non-conforming use; then, Councilman Penna wants the resolution, which shows 3 years, be changed to 2 years; Mayor Pro Tem Mullin asked if Council understood Councilman Penna's request, for instead of a three year window, it is a 2 year window which is current; Councilman Yee asked, if we adopt Exhibit A, the resolution, what we are dealing with is that all the existing freight forwarding businesses will stay as legal and conforming uses; correct; but, they have 3 years to decide whether to expand or not; yes, that is true, except where the compromise of the impact is in reverse, where the industry has told staff they have the desire, they think there is a limited amount of expansion that it covers, but the ability to convert a warehouse to a freight forwarding if, they can do it in compatible fashion, so the window will provide it; the window works two ways, to create something new from an existing AGENDA ACTION TAKEN PUBLIC HEARINGS ~. Public Hearing - Continued. 7/9/97 Page 10 PUBLIC HEARINGS warehouse, for that was something that the business representatives felt was important to continue negoti- ations or be in the process of negotiations; Council- man Yee asked for clarification, if he doesn't have a freight forwarding business, could he just go in there and get a permit to do it; yes, he could in three years; can that be done in any area; in the PC, yes; so, Gallo can come in and build; no, that is vacant property, while this is changing property use; City Attorney Mattas stated the last paragraph of Exhibit A on page 3, the first sentence specifically refers to permitting existing uses to plan for whole- sale uses that may be converted, that is the operative language and it has to be one of those uses, so if you have vacant property they are not one of those uses now; Councilman Yee read that and assumed it was freight forwarding; you cannot create new freight forwarding; so, if you have a building today, then tomorrow you can convert it; yes, but you do it within three years and after three years nobody is going to do it; City Attorney Mattas stated, after 3 years you cannot convert an existing wholesale, distributorship or freight forwarding business, but if it is freight forwarding you can expand that use at that location, but you cannot convert an adjacent use; Councilman Penna suggested, instead of going to the year 2000 go to 1999, for he feels a 3 year limit is unfair; Mayor Pro Tem Mullin would be opposed to that, and the reason to change the com- promise, for this is a result of a long process with a unique situation and the most parties have been satisfied with this modification; clearly we have the authority to change, but that affects the change and he is bothered by the 3 year window, for it is some- thing he had great difficulty with, but is willing to settle the matter and not violate the spirit of the compromise; Mayor Pro Tem Mullin complemented staff in there dealing with Council questions, as well as those brought up in the Public Hearing for this has been a laborious process and it meets the City's long term plans and that is why we are here; so from now on the only new developments are R&D and hotels; it would restrict freight forwarding and warehousing that are not ancillary or do not contain a retail component, all else is allowed and other classifications plus R&D and is all encompassing; Director of Economic & Community Development Van Duyn stated he thinks there is a misunderstand- ing in Mr. Royce's comment, by way of example AGENDA ACTION TAKEN PUBLIC HEARINGS [. Public Hearing - Continued. Mayor Fernekes Returned to the Podium: RECESS: .... ECALL TO ORDER: ADMINISTRATIVE BUSINESS 9. Resolution approving the Scavenger Franchise Agree- mem. ~ 2 7 A RESOLUTION APPROVING AN AGREEMENT FOR COLLECTION AND DISPOSAL OF SOLID WASTE BETWEEN THE CITY OF SOUTH SAN FRANCISCO AND SOUTH SAN FRANCISCO SCAVENGER COMPANY AND AUTHORIZING EXECUTION OF THE AGREEMENT PUBLIC HEARINGS that site, while vacant, has and is ancillary if the use had retail with the warehouse, they can petition to do that development on the Gallo property, but it prohibits freight forwarding or something that is warehouse space and no relationship to any retail ability; by way of example, if someone is looking for an expansion site and felt Gallo could do that, then it would be an ancillary use to the property, but not a new business use. M/S Datzman/Penna - To adopt the Resolution. RESOLUTION NO. 84-97 Carried by majority roll call vote, Mayor Fernekes abstained by virtue of his absence from the podium. Mayor Fernekes returned to the podium at 9:04 p.m. Mayor Fernekes called a recess at 9:05 p.m. Mayor Fernekes recalled the meeting to order at 9:25 p.m., all Council was present. ADMINISTRATIVE BUSINESS Councilman Penna left the podium due to a conflict of interest. Assistant City Attorney Snodgrass apologized for the late staff report due to on-going negotiations. He related changes since the 6/25/97 meeting to both Items 9 and 11: concern was raised over the rates, that the rate structure did not create an incen- tive for residential customers to minimize or cut back on the generation of solid waste; so the rate structure has been moderated, look at Exhibit B, where the can rates stay the same; the agreement states that the Scavenger Co. is required to divert sufficient solid waste to achieve compliance with AB 939, and the Scavenger Co. must indemnify the City against fines imposed for failure to comply with requirements; should the diversion goal not be met, the Co. would continue to be obligated to propose new programs in order to reach the levels and the agreement contains language allowing the City to prevent the Scavenger Co. from exercising its option to extend the agreement for an additional 7/9/97 Page 11 AGENDA ACTION TAKEN ADMINISTRATIVE BUSINESS ~. Resolution - Continued. LEGISLATIVE BUSINESS 11. Motion to waive reading and introduce ordinances on junk collectors (the City Clerk read the title of the ordinances in their entirety). .5-~,,~ 7 AN ORDINANCE AMENDING CHAPTER 8.16 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE RELATING TO SOLID WASTE DISPOSAL AN ORDINANCE AMENDING CHAPTER 8.28 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE RELATING TO RECYCLABLE MATERI- ALS AN ORDINANCE AMENDING CHAPTER 6.56 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE RELATING TO PRIVATE RECYCLING AGENTS 9. Resolution - Continued. ADMINISTRATIVE BUSINESS ten years; the agreement specifies that yard waste is to be collected from single-family residences at least once every other week; collection rates have been adjusted in order to provide an incentive for ratepayers to reduce the amount of solid waste they produce, by increasing the marginal costs of larger total container volumes to the ratepayer; the Scav- engers must divert solid waste and that goes with the requirement for 50% by the year 2000 and the indemnification is already in the agreement; the Co. has a continuing obligation to come up with new programs to obtain the diversion and if there is a failure and the City is harmed, then the City has the power to veto, otherwise the Scavengers can exer- cise the option; as the agreement is worded, twenty years and an option to extend and that is to be opted by the City. LEGISLATIVE BUSINESS Discussion followed: Vice Mayor Mullin stated that is the only occasion in which the City can negate the exercise of the option, the failure to comply; the requirement for diversion is 50% by the year 2000; can't the City evaluate in the year 2000 rather than wait to the year 2017; the Co. must provide quarter- ly reports and if they don't reach the goal and the Board takes action, then they have to indemnify and take on new programs so now the document is not complacent for the 18 years, but calls for immediate action on their part; the last thing in the agreement specifies that yard waste is to be collected from single-family residences at least once every other week; the Scavengers have requested an 8.5% in- crease under the current agreement and there are attachments showing rates in comparable cities that handle recycling. Assistant City Attorney Snodgrass related: the ordinances tonight do not contain that provision on recycling; certain other persons (which include junk collectors) are permitted to collect recyclable mate- rials which are segregated or separated from other forms of recyclable materials and from non- recyclables; the ordinances seeks to improve the clarity of the Municipal Code by providing more uniform definitions of updated terms and more uniform explanations of waste handling rules; cur- rent Muni. Code sections concerning junk collectors 7/9/97 Page 12 AGENDA ACTION TAKEN LEGISLATIVE BUSINESS l. Motion - Continued. 9. Resolution - Continued. 7/9/97 Page 13 LEGISLATIVE BUSINESS do not state the segregation requirement, even though it applies to them; the ordinances do not affect the ability of a licensed junk collector to receive a fee for collection of recyclable materials; staff is awaiting resolution of a case currently pend- ing in the Ninth Circuit Federal Court of Appeals which may clarify the possible impact of recent federal legislation on a city's ability to prohibit collection of recyclables for a fee; prohibition against collection of any non-recyclable solid waste by junk collectors; each junk collector provides the City with quarterly reports containing such information as the total tonnage of all materials that junk collectors have collected within the City; the Asst. Attorney met with representatives of the junk collectors and the scavengers and considered their views and the Court of Appeals case and he ex- pects a decision to come out within a year; the ordinances proposed by staff do not limit the ability for junk collectors to collect; the ordinances bring the rate setting into compliance that will be in the franchise agreement; another change is in the area of enforcement; while they can charge for their servic- es, as they are now, it will not be solid waste and the ordinance would essentially increase the ability to enforce quarterly reports on the total amount of materials they collect; should the City Manager believe there is a violation, he could sched- ule a hearing for the violation and order that junk collector be suspended on five days notice; the proposed ordinance retains the prohibition of picking up garbage and recycled materials that are source separated; staff received a letter today, we reviewed the letter and the issues which are objections to the source separation requirement that are in existence and to the indemnification and the severability in the agreement and CEQA; staff reviewed the legalities raised and does not believe there are legal issues to challenge the document, and does not believe the franchise agreement requires further amendment. Ms. Anne Lauzon related: she works in commercial waste and handles many companies waste such as Taco Bell, Long's, not to mention the 500 compa- nies that do business with her; she does not see the need in supplying an exclusive franchise to anyone; she represents the business and the business that opens their doors and provides services to the residents and jobs to the residents, these are the AGENDA ACTION TAKEN LEGISLATIVE BUSINESS 1. Motion - Continued. 9. Resolution - Continued. 7/9/97 Page 14 LEGISLATIVE BUSINESS voters and they do have a concern and that is why she is here; the source separation issues are real issues, this is volatile entry and the market places are still being developed; this Company has had an exclusive franchise for many years, why have they not moved Blue Line Transfer prior to this; she knows what is cost effective and the operating costs for the business are being escalated and she is responsible for holding down these costs at the stores; business has moved into the 90s and on performance, where it is asked what have you done for me they can respond; this franchise makes it not only costly, but labor intensive and a lot of the businesses have looked for other areas; you have a concern with AB939, but there needs to be more research for indemnification for an exclusive monop- oly affects her children, grandchildren and theirs; how many of the Council will be sitting up here having to deal with these issues; how many more businesses will move out because of this monopoly; where did you get the right to come in and dictate who she must utilize and the amount of money she has to pay for the removal of the garbage; you need a letter to Waste Management for due diligence and you could indemnify yourself. Mr. Will Wohler stated he owns a small manufac- turing business on Grandview Dr. This just came to his attention today and he was not well prepared, and was not aware of the details, but is strongly cautious against granting monopolies and is against the recycling proposed. He feels the City is putting an unfair burden on the recyclers with the additional reporting, but he does not think it is needed by the Scavengers either and he strongly opposes any fur- ther restrictions being placed on these businesses. Mr. Collin Post stated he is now a debris hauler, for an outside company, and occasionally drops debris boxes off here and the company is licensed and un- ion. He felt the solid waste and construction debris requirements are putting us out of business in S.S.F. and it should not happen. An example of that is the Golden Gate Bridge, we were not to pay higher tolls after it was built, yet now we are paying $3.00 to cross the bridge. There is enough room for other corporations to take a piece of the tonnage and if they had a reasonable rate, then they make money and so do we. AGENDA ACTION TAKEN LEGISLATIVE BUSINESS 1. Motion - Continued. 9. Resolution - Continued. 7/9/97 Page 15 LEGISLATIVE BUSINESS He stated if Mr. Datzman wants to go to the Shell Station and you go to the Chevron - as the lady said, how could you dictate to us and say S.S.F. Scaven- gers can have it all. It's our City, so everyone should have a choice on who we want. We bring our debris boxes in on time, while the Scavengers are late all of the time, they are so busy they don't have time for us. He thinks they are putting them out of business and the Council ought to consider it and not let it become a bigger monopoly. Mr. John Pugliaresi, 309 Hazelwood Dr., stated he is a taxpayer and agrees with WRT's position on the franchise with respect to the concerns voiced. Mr. John Moore, 4 Embarcadero, S.F., thanked Council for the opportunity to meet with the staff, they listened and one of the products is an ordinance that is much improved. This is an expansion of the prohibition and it is not a question of recycling, because you can have separating bins, one for dry- wall or you can have a bin of colored and white paper and it will be sorted off-site, so where some- thing is separated, it is artificial whether the end result of the process actually occurs or not. In response to a couple of concerns we made proposals like the garbage and they pay 7% of gross like the haulers, and Mr. Datzman asked about enforcement and we suggested that we devert a percentage of the mixed recyclables and in the current ordinance for junk collectors the enforcement is there. The only justification raised to oppose the mixed recycling is the rumor there may be a rate increase with competition, but you heard there is a benefit to the business and the residents with the freedom of choice. He posed the question to the residents, is there anyone out there if given a choice of putting a company out of business and having the employees out of work or pay a few dollars more. He has not seen anything from staff about an increase, so the action he asks the Council to take, is to eliminate the the prohibition of co-mingled recyclables. Other than that they are in agreement with the package except for the source separation, but if you put our resources out of business, well we would rather work with you to do the recycling thing. City Attorney Mattas asked Mr. Moore, when you AGENDA ACTION TAKEN LEGISLATIVE BUSINESS !. Motion - Continued. 9. Resolution - Continued. 7/9/97 Page 16 LEGISLATIVE BUSINESS use the term mixed recyclables, do you mean two kinds of solid waste or recyclables. Mr. Moore stated everything in a bin is recyclable, anything recyclable is collectible if source separated and he is saying let there be more than one category. City Attorney Mattas stated if we have a hamburger and a piece of paper together is that a mixed recy- clable. Are we talking about paper and number two plastic or food. Mr. Moore appreciated the question. The hamburg- er is recyclable, because it can be recycled and composted. What he is trying to say to staff and Council is that in any load there is going to be a hamburger or something that is not going to be recyclable, for not everything gets source separated. So, instead of looking at the hamburger, we say solid waste is the end of the line and does not start as solid waste. Ms. Beverly Boblitt stated she has been in business for 25 years and a resident 45 years, but she thinks a lot of things addressed this evening and previously are great and she hopes Council will consider them. She wants to address the Council as a home owner, a taxpayer and a user. What she is concerned about is the length of the franchise, for 30 years is a long long time. She certainly will not be here in 30 years nor most of the Council either, for with the new technology changing every day the garbage and recycling will change and it is crazy to give a 30 year franchise that we don't know the cost of or the way it is to be done. She does not believe that the Council has any way to control that. If you are going to wait for 20 years to say it's not going to work, that is a little bit late. She wonders why in all these years this franchise has never gone out for bid. She thinks competition is very good and she does not know why the rush to 2001, but you might get a better deal and a better offer. She urged them to think seriously about the 30 years. Ms. Ann Lauzon stated she is against a monopoly even of ten years. Why is the big guy so upset, and on top of everything else he said they have been here since the inception. She felt this is not good AGENDA ACTION TAKEN LEGISLATIVE BUSINESS I. Motion - Continued. 9. Resolution- Continued. 7/9/97 Page 17 LEGISLATIVE BUSINESS for business and that is the thing you have to look at. Are any of the Council specialized in commod- ities or industrial areas. If you are not she does not believe you have the knowledge that is necessary to give this kind of long term agreement. If you give a monopoly to any one sector or any company they can turn around and sell it to another because of the length of the term and you admitted you are not going to be here, but you are going to dictate. She stated commodities are dictated by volume and she networks those services nationwide. Vice Mayor Mullin stated he was trying to determine what Ms. Lauzon's position was. She represents these companies and is responsible for the solid waste for all the companies. We coor- dinate and consolidate the service efforts for a vari- ety and that deals with CIWA. We can have up to ten vendors providing service depending on the needs. Her firm has reduced their cost by 82% by recycling by a variety of vendors and proceeded to talk at length on how they had accomplished cost efficiency in other cities, such as in Sunnyvale. Discussion followed: Vice Mayor Mullin stated, then all those companies in S.S.F. use the Scaven- gers and you use other haulers; most people think the scavenger bill is part of their utility bills; etc. Dave Vidco, General Counsel for the Scavengers, does not believe that BFI is a licensed hauler in Sunnyvale. They spent the better part of a year negotiating in pitch battle over the franchise agreement, everyone has worked hard and made compromises. He has not heard anything that has not been addressed so if there is anything new, he is not aware of it. They think it is time to make a decision, and they will answer any questions for most of their team is here tonight. City Attorney Mattas stated he wanted to clarify some points: one of the speakers asked what right do you have under AB939, and the City has the right to award a monopoly for solid waste; the Council is not obligated to do that, but has the right; another issue in regards to CEQA which goes back to Mr. Moore's letter and the franchise document AGENDA ACTION TAKEN LEGISLATIVE BUSINESS l. Motion - Continued. 9. Resolution - Continued. 7/9/97 Page 18 LEGISLATIVE BUSINESS does not obligate the MRF, for that will come and require a separate analysis and so the franchise agreement is not approving the MRF under any conditions, for that will require land use approval from the City; the primary issue to consider is what is a comingled recycling, and if you accept that, then it has two recyclabe items and he does not think the Scavengers and recyclers are that far apart; this ordinance and the franchise would allow them to continue to collect recyclable items, but can it in- clude solid waste; they can recycle materials and can charge a fee; staff sees tonage to the landfill in excess; the franchise does not prohibit assignment, but is based on the integrity of the assignment. Discussion followed: duration and number of years of franchises in the County and do any of them have an option for an additional period of time; staff does not know, but did provide information on 20 cities that built MRFs recently; how many of the 32 cities have individual companies servicing them and how many cities are serviced by the same franchise haul- ers; Andy Rose, Att., stated it is half and half and is split between the four or five major companies; Contra Costa built their MRF two years ago and their rates would be lower; the Scavengers have to go ahead and build the facility and they required a rate increase; other than the current request for a rate increase which will come forward in November, it will then benchmark out in 19 months; the first rate increase is a year from now with the CPI; current size of cans and the monthly rates; Mr. Moore cited a Civil Code, about indemnification against illegal acts and the Courts have said it ap- plies to the act and they do not believe it is a provi- sion, because the City is not contemplating any acts; City Attorney Mattas stated the reason he does not believe there are illegal acts is because they have the obligation to meet the 50% and if their act doesn't do that, then they have to do it; Attorney Moore stated that, if you take materials to a MRF it has been separated twice, once in the packer truck and once in the MRF, for you are trying to sort it out with containment; he is trying to advocate that which is not mixed for they are going to take every- thing to the packer truck; the junk collectors recy- cled material is not mixed with garbage; not every commercial account is willing to source separate and the smaller ones are not interested in the ones easy AGENDA ACTION TAKEN LEGISLATIVE BUSINESS l. Motion - Continued. 9. Resolution - Continued. 7/9/97 Page 19 LEGISLATIVE BUSINESS to haul, and the Scavengers are obligated to take everything; Councilman Yee remembered a present- ation by the City Manager at a study session on why the City should not go out to bid on the franchise; the City Manager reiterated the reason for not going out to bid with the 1990 existing franchise; so, if the City goes out to bid on the franchise it will not be until 2001; and we would still run afoul with the recycling because of the existing franchise; why 30 years, rather than 20 years; that was tied to the anticipation of a loan from the State for the MRF to cover the facility, it will provide continued service to the community at the least amount in rates, so the extension was logical to the City Manager; the Council does not have the right to approve the rate, but can only look at it to see if it is proper; City Manager Wilson stated he looked at this document and said how are we going to come up with the pricing to meet the objectives and provide a cash flow, with a reasonable increase, without going to the market place every year; the agreement says what is appropriate rather than the Council will approve the rate; if the process is followed, then Council's obligation is to ratify the result; the staff report is misleading; City Attorney Mattas stated the language is consistent with the language in the ordi- nance, that if the City is in agreement then the factors established by the Scavengers are the bench- mark, are accurate and then needs approval; Coun- cilman Yee felt this should not go to the Council when it is not stated; he trusts staff to do the work, so when it gets here it is a matter of process, but it is not the way the staff report reads; City Attorney Mattas agreed, the way it is worded it should have said require approval on the information presented, so it does not get misinterpreted; Councilman Yee stated we are here to protect the citizens in the community and he is not going to be here in 30 years, but he has no problem with the Council years later making the decision or commit to something that may not work for the citizens in the community 30 years from now; for when he sees in the staff report that Council approves, but that is not the case, then he has to go back to square one and figure it out; if the Scavengers do not meet the divergence rate we will have to pay the penalties and will have to spend more money in the operation to improve existing operations or programs or develop new ones for the divergence rates; will the MFR AGENDA ACTION TAKEN LEGISLATIVE BUSINESS l. Motion - Continued. 9. Resolution - Continued. 7/9/97 Page 20 LEGISLATIVE BUSINESS facility be in SSF, and would the transfer station be removed; staff does not know at this point, and the second question should be addressed to the Scaven- gers; the current speculation is to move it to a new location in the City, but that is not confirmed; Councilman Yee wants the transfer station removed by a certain date; the thing holding the Scavengers back is the lack of a franchise agreement; closing down an existing facility and relocating is not an easy thing to do for they have to buy a piece of property, so if a date is in place it would deter their ability to purchase and puts pressure on them; what about one year after the Scavenger Co. builds the property; Councilman Yee is afraid they will build the MFR and never vacate the transfer station prop- erty; City Attorney Mattas suggested it be worded, one year after the facility is built or meets the requirement by some other means; Councilman Datzman is concerned about the comments offered from a public perspective, why not have the market competition, but he sees why there is a franchise in municipalities; one is health control issues and that is what it is intended to do, and provide a control over charges; you cannot compare service levels in market driven competition; we should look at what the Scavengers are planning to do for the public in waste and recycling; volume of residential vs. com- mercial, and what is multi-family vs. residential; Ms. Stefanie Uccelli stated the Company cannot force people to recycle, all they can do is educate them; Mr. Doug Button, Scavenger Co. General Manager, spoke of the rate factors for dirt, rocks and concrete so four or five yards is not allowed for this type of pickup; why do residents have to pay for 56 or 96 gallon garden pickup cans; the cost is prohibitive if supplied by the Company; there has been an upgrade in penalties; Councilman Datzman is concerned with enforcement; Mr. Craig Boblitt stated, with about 30 accounts the dollar figure is $300,000 a year for a junk collector; Ms. Lisa Bauer stated the annual tonnage is 750 to 1,000 a year; business license is $200 or 4% of gross re- ceipts; Finance Department supplied cumulative taxes paid by junk collectors in 1994-95-96; Mr. Boblitt feels these ordinances would drive junk col- lectors out of S.S.F.; they can still do recycling here, but it calls for source separation; current ordinances prohibit comingled materials, but it could be changed to read, can comingle two things, like AGENDA ACTION TAKEN LEGISLATIVE BUSINESS L. Motion- Continued. 9. Resolution - Continued. RECESS: RECALL TO ORDER: 10. Motion to waive reading and introduce an ordinance relating to the location of meetings of the Historic Preservation Commission. AN ORDINANCE AMENDING SECTION 2.58.070 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE RELATING TO THE LOCATION OF LEGISLATIVE BUSINESS plastic and cans; the Ninth Circuit Court ruling is whether or not they can collect; when a hauler goes to Ox Mountain, are they required to identify where the material comes from; there is only a check each quarter, and is imperfect at best; does Urban Ore have a S.S.F. license; no, they do not, they collect reuseables and pay the people; once every two weeks they collect yard waste, Councilman Yee asked why isn't the receptacle provided free to resi- dents to encourage people to use them; Ms. Uccelli stated the Company will come back and monitor the usage of the cans in a few weeks; Vice Mayor Mullin asked, if he rents it and it is stolen is he obligated for the full cost; Mr. Cohn stated the Company will give a new one for a few times; Ms. Uccelli stated they no longer accept cardboard boxes or plastic; 20 gal. cans are available for seniors; Councilman Yee wants a ten year option, rather than wait 20 years, for he wants a checkpoint rather than commit to 30 years; City Manager will make sure in the last 10 years there is no breach of contract; Mr. Rose stated the Company has to comply and if after ten years they can get the option -- that is okay; Councilman Datzman asked the City Attorney to come back with language with logical formulas, even though he considers the current provider reli- able and feels this can be resolved; City Attorney Mattas stated the Vice Mayor raised the question of comingling of recyclables, which was in an old ordi- nance, new ordinances do not permit that and asked the Council to provide direction to retain that and if so, table action until after the Closed Session and he will read new language into the record; City Manager's understanding is that the existing ordi- nance requires separation for the whole thing is to reduce waste and recycling is not hamburgers. Mayor Fernekes called a recess at 12:20 a.m. Mayor Fernekes recalled the meeting to order at 12:30 a.m. City Clerk Battaya read the title of the ordinance in its entirety. Director of Economic & Community Development Duyn stated that the Commission wanted to move their meetings to the large conference room at City Hall which is more suited in room capacity. 7/9/97 Page 21 AGENDA ACTION TAKEN LEGISLATIVE BUSINESS ). Motion - Continued. MEETINGS OF THE HISTORIC PRESERVATION COMMISSION ITEMS FROM COUNCIL 12. Discussion of funding for the Visitors and Convention Bureau (requested by Councilman Penna). 3'-~/~ LEGISLATIVE BUSINESS Vice Mayor Mullin stated the Plymire Schwatz is coming to completion and he wondered if the Mu- nicipal Code would allow their meetings to take place in the historical house. Historic Preservation Commissioner Harks stated the Commission wants their meetings at City Hall and the historical house has problems with parking. M/S Muilin/Penna - To waive reading and introduce the ordinance. Carried by unanimous voice vote. ITEMS FROM COUNCIL Councilman Penna asked for a report of today's meeting. Assistant City Manager Moss stated the meeting was a discussion of the Visitors and Convention Bureau and the Bureau questioned if there was going to be support by the Council. The Confer- ence Center Authority felt they could get part of the funding, but it was up to the Council not the Au- thority. Discussion followed: Councilman Penna asked, does the Bureau think that the City is helping them to sell hotel rooms to the public; the reaction was, they were impressed with the programs and with working with the Conference Center; the City has been contributing $110,000+ a year; Ms. Chris- tine Maley, Vice President of the Bureau's Opera- tions stated they have met with the City Manager and the local hotels to submit their budget request; she stated she was here to answer any questions on the funding level that you are going to determine to give us; Councilman Penna stated there was $130,000 undedicated, but set aside in the budget; over the year Councilman Penna has been reporting back to the Council and has been trying to measure the input of the Bureau regarding the sale of hotel rooms in S.S.F.; the amount of business generated for the City amounts to about one business day a year if hotels in this town are booked by the Bureau; he determined that by looking at the actual amount of rooms they have sent to the various hotels; he did not believe the amount of rooms were comparable to 7/9/97 Page 22 AGENDA ACTION TAKEN ITEMS FROM COUNCIL 5. Discussion of funding Visitors & Convention Bureau - Continued. ITEMS FROM COUNCIL the funding from the Council to the Bureau yearly; for that reason, at the last meeting, he mentioned there is an inequitable method to collect funding, for Millbrae only funds $30,000 and Burlingame $50,000; the way the Bureau started out 25 years ago it was a good idea to have something estab- lished, and that worked for a while until Burlingame started expanding and then it was inequitable; we are trying to operate on the same system as 25 years ago when today they are into tourism rather than trying to book hotel rooms; so, his suggestion is to look at the Bureau as if it doesn't exist and if it doesn't exist then how would you fund it; he also told them that they should solicit hotels and resturants for promotion, but the contribution should only be $7,500 a year for this City; but when he said that it kind of fell on deaf ears and he was asked to put it in writing, however, the secretary from the Bureau is here tonight and is quite capable of taking minutes because he thought the comment was facitious; he wanted Council to make a decision on whether to fund $7,500 or another amount; we can continue to be members, for we are also members of SAMCEDA and that only costs $5,000 a year with more benefits than we receive from the Bureau; he delivered the message loud and clear and it is falling on deaf ears. Discussion followed: the Bureau is asking for $110,000; Ms. Maley stated ideas were kicked around at the meeting, i.e., to do with a fair funding formula because of Mr. Penna's concerns; the Bu- reau went to all of the cities to broach the subject of Bureau funding at an equitable level; all of the hotels are enjoying an 80% occupancy level and the Bureau finds they have to focus on market programs and marketing efforts, so they are concentrating on the visitors guide and a visitors guide that is exten- sive, and a calendar that we publish that includes local residents; our direct sales efforts, with the reduced funding and two less people, were hindered; they are trying to convince attendees to use the facilities in the County for food in addition to hotel rooms; the Bureau realizes that the City cut its budget to $50,000, and compared it to Millbrae and other cities funding; this year Millbrae will give the Bureau $50,000 a year; the Bureau's budget is not completed because they do not know what the fund- ing will be from S.S.F.; Councilman Penna was 7/9/97 Page 23 AGENDA ACTION TAKEN /~' ITEMS FROM COUNCIL 5. Discussion of funding Visitors & Convention Bureau - Continued. Councilman Penna Left the Meeting. GOOD AND WELFARE CLOSED SESSION 13. Closed Session, pursuant to GC 54957.6, salary~/.b'"--~c.~ negotiations for all Units. RECALL TO ORDER: Resolution approving the Scavenger Franchise Agree- mem. .5'2- 2. '7 A RESOLUTION APPROVING AN AGREEMENT FOR COLLECTION AND DISPOSAL OF SOLID WASTE BETWEEN THE CITY OF SOUTH SAN FRANCISCO AND SOUTH SAN FRANCISCO SCAVENGER COMPANY AND AUTHORIZING EXECUTION OF THE AGREEMENT ITEMS FROM COUNCIL concerned on how public funds will be spent, for the TOT is part of that and there is a lack of under- standing of that by the Bureau; right now we are participating in a $25,000 expenditure and he reit- erated the lack of business given this City by the Bureau and he felt they cater to Burlingame and the SFIA market for large room reservations and SSF is a secondary market and is never going to get the kind of response that we could have for the money we are spending; Councilman Datzman felt money should be budgeted and have the City continue to look at it and continue looking at it down the road, rather than make a decision at 1:00 a.m.; Vice Mayor Mullin stated he moved to reduce it to $50,000 and his concerns were for a way to quantify the benefits to the City, and clearly one day booking does not equate; he looked at the publications and the last one listed McLellan Nursery as a single point of interest in S.S.F.; Mayor Fernekes stated See's Candies was a big supporter of the Bureau and was not listed; that is not a point of interest, but it is a member of the Bureau; Councilman Penna stated the Bureau should solicit bars and resturants to be members; etc. Councilman Penna left the meeting at 1:05 a.m. and did not return. GOOD AND WELFARE No one chose to speak. CLOSED SESSION Council entered a Closed Session at 1:08 a.m. to discuss the noticed item. Mayor Fernekes recalled the meeting to order at 1:12 a.m. City Attorney Mattas stated it is staff's recommen- dation that Council leave the ordinances in their present order with the source separation and recy- cling based on his comment and experience two years ago. The existing ordinance does allow for recycling and did allow for comingling. We talked with the representatives about diversion, for the landfill is measured in tons not in pounds and that has caused us difficulty to meet the diversion re- 7/9/97 Page 24 AGENDA A_C!!ON TAKEN /~ LEGISLATIVE BUSINESS I. Motion to waive reading and introduce ordinances on junk collectors AN ORDINANCE AMENDING CHAPTER 8.16 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE RELATING TO SOLID WASTE DISPOSAL AN ORDINANCE AMENDING CHAPTER 8.28 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE RELATING TO RECYCLABLE MATERI- ALS AN ORDINANCE AMENDING CHAPTER 6.56 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE RELATING TO PRIVATE RECYCLING AGENTS LEGISLATIVE BUSINESS quirement. In terms of, if you will, the percentage of materials that may not be recyclable in the debris box, staff does not believe it is wise to establish a number, for he does not believe you can get a work- able one, so keep it source separated. He continued, now for the junk collectors and recycling: the ordinance does allow them to charge fees for recyclables and to source separate, for there is an opportunity for viable business and can pick up other recyclables. He recommonded a change to the franchise, Section 3.2 and this language which he believes affect the concerns of Councilman Yee as to a ten year review "In addition, Section 3.2 was amended to change the date in lines 5 and 7 from 2017 to 2007. In addi- tion, the last sentence of Section 3.2 was amended to add the following language and on October 31, 2017." That is when the notice of intent will be submitted and the next date to notify of the deadline for requesting the application for the option exten- sion would change to 2007 and after that paragraph insert the word "at the time of exercise and on October 31, 2017." He believes what that accom- plished is to have the initial review and then to allow for a secondary review in 2017, if on either of those dates they are not in compliance and it is constituting material harm then the City can opt to not extend that. There is separate language in the agreement if they are in material breach of the con- tract during the franchise, it can be terminated, so that language still remains. The last change we propose is in Section 13.5 to the franchise agree- ment that deals with Councilman Yee's second suggestion that is the Blue Line Transfer and the new section reads, "Within one year of commence ment of operation of a new facility designed to handle waste transfer and AB 939 diversion re- quirements, including but not limited to a materials recovery facility or compliance with applicable diversion requirements of AB 939 through actions other than construction of a new facility, whichever occurs first, Blue Line Transfer Incoporated shall terminate operation of the transfer station it operates on Oyster Point Boulevard in South San Francisco". M/S Mullin/Datzman - To adopt the Resolution approving the Scavenger Franchise Agreement with 7/9/97 Page 25 AGENDA ACTION TAKEN LEGISLATIVE BUSINESS Resolution - Continued. 11. Motion - Continued. 14. Motion to adjourn the meeting to Wednesday, 7/16/97, 6:00 p.m., City Council Conference Room, City Hall, for a study session to discuss: 1) Eco- nomic development update; 2) Terrabay Plan review; and 3) Oyster Point Road system. LEGISLATIVE BUSINESS the changes enumerated by the City Attorney. RESOLUTION NO. 85-97 Carried by majority roll call vote, Councilman Penna by his non-participation is considered to have abstained. M/S Mullin/Datzman - To waive reading and intro- duce the ordinance. Carried by majority roll call vote, Councilman Penna by his non-participation is considered to have abstained. M/S Datzman/Mullin - To waive reading and intro- duce the ordinance. Carried by majority roll call vote, Councilman Penna by his non-participation is considered to have abstained. M/S Datzman/Mullin - To waive reading and intro- duce the ordinance. Carried by majority roll call vote, Councilman Penna by his non-participation is considered to have abstained. M/S Yee/Mullin - To adjourn the meeting to Wednesday, 7/16/97, 6:00 p.m., City Council Con- ference Room, City Hall, for a study session to discuss: 1) Economic development update; 2) Terrabay Plan review; and 3) Oyster Point Road system and a Closed Session for existing litigation - Johnson vs. City of S.S.F. Carried by unanimous voice vote. ADJOURNMENT: Time of adjournment was 1:20 a.m. 7/9/97 Page 26 AGENDA ACTION TAKEN RESPECTFULLY SUBMITTED, Barbara A. Battaya, City Clerk City of South San Francisco APPROVED. Jo~l~h/(/Fernekes, Mayor Gi .y of S~outh 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. 7/9/97 Page 27