Loading...
HomeMy WebLinkAboutMinutes 1998-04-22 Chairman Eugene R. Mullin Boardmembers: James L. Datzman Joseph A. Fernekes -Karyl Matsumoto John R. Penna MINUTES Recreation & Park District Municipal Services Building ~"-V-~ Community Room April 22, 1998 SPECIAL MEETING RECREATION AND PARK DISTRICT OF THE CITY OF SOUTH SAN FRANCISCO APRIL 22, 1998 NOTICE IS HEREBY GIVEN, pursuant to Public Resources Code of the State of California and by Resolution, that the Recreation and Park District of the City of South San Francisco will hold a Special Meeting on Wednesday, the 22nd day of April 1998, at 7:05 p.m. in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California. Purpose of the meeting: Call to order. Motion to approve the Minutes of the Special Meeting of 12/10/97. Resolution approving a second amendment to the Ground Lease and approving a joinder with Raiser, LLC. A RESOLUTION APPROVING A JOINDER AND SECOND AMENDMENT TO THE GROUND LEASE BETWEEN THE CITY, THE SAN MATEO COUNTY HARBOR DISTRICT, AND RAISER RESOURCES LLC, RELATED TO PROPERTY AT THE OYSTER POINT MARINA Adjournment. City Clerk Recreation and Park District City of South San Francisco Dated: April 12, 1998 AGENDA ACTION TAKEN 1. CALL TO ORDER: (Cassette No. 1) 9:50 p.m. Chairman Mullin presiding. ROLL CALL: Council Present: Council Absent: Datzman, Fernekes, Matsumoto, Penna and Mullin. None. Motion to approve the Minutes of the Special Meeting of 12/10/97. M/S Penna/Fernekes - To approve the Minutes of the Special Meeting of 12/10/97. Carried by unanimous voice vote. 4/22/98 Page 1 AGENDA ACTION TAKEN Resolution approving a second amendment to the Ground Lease and approving a joinder with Raiser, LLC. ~'1~ A RESOLUTION APPROVING A JOINDER AND SECOND AMENDMENT TO THE GROUND LEASE BETWEEN THE CITY, THE SAN MATEO COUNTY HARBOR DISTRICT, AND RAISER RESOURCES LLC, RELATED TO PROPERTY AT THE OYSTER POINT MARINA City Attorney Mattas related all of the particulars in the staff report, joinder and the second amendment to the Ground Lease between the Recreation & Park District, the City of S.S.F., the San Marco County Harbor District and Raiser, LLC for the construction of a hotel. He stated that the original lease has 55 years and this has two options of ten years and has a potential of an additional twenty years. He related: the current lease will expire in 2027 and it is conceivable to extend it or you will be the landlord in this project; rents; exemptions from gross receipts; use of the property; right of first refusal; indemnification of environmental costs; potential widening of Oyster Point Blvd. to City standards. Discussion followed: what if contaminants are found on the property; the City is the fee owner and the Harbor District because of the JPA; this assumes some clean up of the site and the City could be potentially be responsible; what Raiser is attempting is to make certain that Raiser would not have to pay for any preexisting contamination; under the JPA there are contractual obligations; the lease also has amendments for roadway improvements out there and there is widening all the way to Gull Road and the hotel is not responsible for that because it is under the CIP to do improvements to the Marina Blvd. and bring it up to City standards; the lease does not obligate the City to have the tenant do it; the hotel will be full service and to include a confer- ence facility between 2,000 and 10,000 sq. ft.; the City Attorney had a discussion with Mr. Grennel of the Harbor District, and if a full service restaurant is required then he will make modifications in the lease; the Board will see this project again as a land use project coming before you, but this is a lease document; Chairman Mullin stated he was hearing a yes; a full service restaurant will enhance the area and bring in a broader base; City Attorney Mattas stated he would add to the construction of 250 rooms and insert, "include a full service restaurant and call it a full service hotel"; he would change the second line to "option of a full service hotel contain- ing 250 rooms"; the convention center shall have a minimum of 2,000 sq. ft., not to exceed 10,000; those changes are acceptable to the applicant and the Harbor District will put it back on the agenda; where is the plat plan for the existing hotel; Boardmember Penna has problems for if they want to have the entire site clean and go down twenty 4/22/98 Page 2 AGENDA ACTION TAKEN o Resolution - Continued. ADJOURNMENT: 4/22/98 Page 3 feet; the change before the Board is a clarification of a preexisting obligation that arose out of the JPA and there is a shared responsibility in terms of any remediation stand point while it can be an obligation to shift that burden it is the responsibility of the folks that were active in the chain of title; the con- cern is well taken because it has not been identified; Councilman Penna is concerned because we already had an experience with Gull Road, there is a prob- lem on the road, and this is a hotel and an important detail he is prepared to act on at this time; Director of Public Works Gibbs stated there are certain pro- cedures on a dump site, which this is, and these are hazardous materials and contaminants, but we do not know the quality; the land has to be bored, for the Regional Board will not let you excavate to build a structure; he does not think they will get into prob- lems like Gull Road with the construction of this building; there are going to be pilings or support beams throughout this site in order to support it, and when they go into the top soil should they hit con- tainers which are contaminated they are probably there because of the dump site; Councilman Penna was concerned that the City will be sued if the engineer does not do the due diligence; the informa- tion is available as to what was dumped and when; staff is under the understanding there are no hazard- ous material, only garbage; staff intends watching this closely. M/S Penna/Fernekes - To adopt the Resolution subject to the conditions, a full service restaurant, delete Section 13 on indemnification and amending Section 7.2. RESOLUTION RPD 39-98 City Attorney Mattas stated there is concurrence from the Applicant. Carried by unanimous voice vote. M/S Datzman/Penna - To adjourn the meeting. Carried by unanimous voice vote. Time of adjournment was 10:40 p.m. AGENDA ACTION TAKEN RESPECTFULLY SUBMITTED, Barbara A. Battaya, City Clerr~ Recreation & Park District City of South San Francisco APPROVED. City of South San Francisco The entries of this Council meeting show the action taken by the City Council to dispose of an item. Oral 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. 4/22/98 Page 4 Mayor Eugene R. Mullin Council: James L. Datzman Joseph A. Fernekes '-'Karyl Matsumoto lohn R. Penna MINUTES City Council Municipal Services Building Community Room April 22, 1998 CALL TO ORDER: ROLL CALL: AGENDA (Cassette No. 1) PLEDGE OF ALLEGIANCE: INVOCATION: RESENTATIONS Proclamation - National Library Week April 19-25, 1998 - Library Board President Joan Marvier oeO':/7 Proclamation - National Volunteer Week April 19-26, 1998 - Volunteer Coordinator Tang ~D q "7 Proclamation - Older Americans Month - May 1998 - To be received by Senior Advisory Boardmembers Marie Peterson and Dag Alholm 3-"0 q '7 East of 101 Transportation - Dan McCoy ACTION TAKEN 8:47 p.m. Mayor Mullin presiding. Council Present: Council Absent: Datzman, Fernekes, Matsumoto, Penna and Mullin. None. Mayor Mullin introduced student counterparts for Youth Government Day, and stated a mock council meeting will be held by the students on 4/29/98 between 4:00 p.m. and 6:00 p.m. The Pledge was recited. A minister was not present. PRESENTATIONS Vice Mayor Datzman read the proclamation aloud and presented it to City Librarian Sommer. Councilman Fernekes read the Proclamation aloud and presented it to Volunteer Coordinator Tang. Mayor Mullin read the Proclamation aloud and presented it to Commission On Aging Board- member Alholm. Mr. McCoy spoke in detail on MTSMA and their programs to encourage people out of their cars and using mass transportation or carpooling. He com- plimented the City for being the lead employer for the programs. He spoke of the shuttle service to Genentech, Toshiba and Cushman & Wakeman have increased ridership and stated this City has some of the most successful programs in the County, even though some of the companies want to get out of the shuttle business because of the amount of hands on management it entails. Plans will be coming for- ward from MTSMA to put the shuttle service on the right path, for we need to reduce congestion and provide shuttle service for the next five years. 4/22/98 Page I AGENDA ACTION TAKEN PRESENTATIONS ast of 101 Transportation - Dan McCoy - Continued. Award CERT Certificates to Alta Loma Middle School Students AGENDA REVIEW City Manager Wilson Requested: - Received a letter withdrawing the appeal on Item No. 7 and it should be removed from the Agenda. - Hear Item No. 12 before the Consent Calendar. - Move Item No. 10 to the Consent Calendar. ORAL COMMUNICATIONS PRESENTATIONS Mayor Mullin stated Council is quite encouraged by MTSMA's role to come in and manage the service and there is the work to be done with Samtrans that is going to make that even more important to the community. Fire Chief Lee and Fire Education Specialist Ken- nedy presented the Certificates to Alta Loma Middle School Students. AGENDA REVIEW So ordered. ORAL COMMUNICATIONS Mr. Don Mason, 10 Arlington Dr., related his concern over the gambling license for the cardroom in Colma, for he did not know that you could not get a license until the building is completed. The State offers a protest process against Lucky Chances and he is going to make 300 copies of the form and distribute the form this weekend. He feels the gam- bling casino will bring traffic and the crime will be horrendous which has no place in the middle of cemeteries and is really bad. He wants to know how the Council feels about this, and how they are going to protect the citizens from the traffic that will be 24 hours a day, seven days a week. He ques- tioned if the Council has considered additional police protection. Mayor Mullin stated, as a general rule, the questions Mr. Mason is posing are referred to the staff and they come back with a broad overview on how they wish to address the matter. He stated he was a supporter of our cardroom measure, but not for the one in Colma, but if he was a voter in Colma he would have voted against it. Ms. Sophie Mason stated there is the gas station, car wash and Carl's Junior at Hickey and El Camino and as you come out east to E! Camino there is a sign saying right turn only. He was driving there and two cars were coming out and making a left 4/22/98 Page 2 AGENDA ACTION TAKEN ORAL COMMUNICATIONS 4/22/98 Page 3 ORAL COMMUNICATIONS hand turn, even though he thinks they were work- men, he believes there is a potential problem. Mr. Mason asked if the Council had received a copy of the letter from the State. Mayor Mullin stated he has not, but his suspicion is that it is mailed to people in the area. Mr. Mason stated it was amazing that Winston Manor No. 1 is one of the last areas to get anything for the letter is dated 4/15/98, and on 4/17/98 they phoned and got the form today and they only give you 30 days. He stated that Colma has been bragging that they have the license and now we find they don't and they have to apply to the judicial area. He stated he is asking Assemblyman Pappan and every Mayor to do something for Colma is saying they do not control that casino, that the judi- ciary controls it. He wants this a part of the record and he is going to ask the Mayor to read the SB by Legislatnre Lockyer for there is a lot of legal lan- guage in the Bill. He stated if this was an indian burial ground, this would not happen, yet the City is building 300 homes on the McLellan property. Mayor Mullin asked that the Bill be given to the City Attorney and the Council will read the Bill, however, the decision was made by another City and we had no input on this matter. He directed the staff to come back and say what we can anticipate as a result of the casino. He stated there will be 212 homes and it is not being built by the City. He reminded Mr. Mason that the Council did assist the homeowners on the funeral home incendiary that was going in on El Camino. Mr. Mason stated he appreciated everyone's efforts, and he knows the Council and Russ Moss were involved. The other issue he brought up was the noise abatement and Russ Moss explained they are having difficulty because of the lines they have drawn earlier. He stated he is 74 years old, and Winston Manor needs the support of this Council and every Council in San Mateo County. Councilman Fernekes related: his concern over the lack of service over the last few meetings with a minimum of two persons on cameras and tonight AGENDA ACTION TAKEN COMMUNITY FORUM/COUNCIL SUBCOMMITTEE .... EPORTS ADMINISTRATIVE BUSINESS 12. Resolution approving a second amendment to the Ground Lease with Raiser, LLC and approving joinder, o,6-/ A RESOLUTION APPROVING A JOINDER AND SECOND AMENDMENT TO THE GROUP LEASE BETWEEN THE CITY, THE SAN MATEO COUNTY HARBOR DISTRICT, AND RAISER RE- SOURCES LLC, RELATED TO PROPERTY AT THE OYSTER POINT MARINA COMMUNITY FORUM/COUNCIL SUBCOM- MITTEE REPORTS there is only one; he thanked the teachers for se- lecting his daughter. Councilwoman Matsumoto related: TCI will do a tape for the Cultural Arts Commission and the next show is on 6/12-14/98, a bonsai show; she told the Cultural Art Commission the Council favored the water sculpture; Steve Waldo of Brisbane is going for the LAFCO appointment and wants support; TCI is going to produce an area back roads show. Mayor Mullin stated it can be a May agenda item, however, there is a consensus to support Mr. Waldo. ADMINISTRATIVE BUSINESS Mr. Norm Book, Atty. stated he was representing Raiser Resources and Mr. Raiser suffered a heart attack and it was the decision of the family not to continue a project of this magnitude. He spoke of the developer, Mr. Hess, who will carry the project through and has a number of commercial projects particularly in hotel development. Mr. Hess stated he brought renderings of the pro- posed hotel and stated his firm is in Cincinnati, Ohio, has developments throughout the United States, has been in business for 35 years, and in the past ten years developed full service hotels. His corporation has an excellent reputation, etc. He stated the projects they are anticipating are con- ceptual renderings of what the hotel will look like subsequent to reviews. Right now it is in excess of 250 rooms and they do not have a problem with it being called a full service hotel with restaurant for it is a win win for the City and the Developer and will bring in more revenue and jobs for the City. He stated everyone is aware this is landfill, Gull Road has been recently expanded and brought up to City standards for maintenance and Marina Blvd., he is told, will be improved and the four lane Oyster Point Blvd. will be improved and is in the budget. This will be remediated and recommendations will be followed and it will have to be accepted by the City. He does not want to take on any risks that you have not had time to prove. 4/22/98 Page 4 AGENDA ACTION TAKEN ADMINISTRATIVE BUSINESS 2. Resolution - Continued. CONSENT CALENDAR Motion to approve Minutes of the Regular Meeting of 4/08/98. 2. Motion to confirm expense claims of 4/22/98. ADMINISTRATIVE BUSINESS He stated with the 288 rooms, the restaurant, meet- ing space, other amenities and other additional costs they are faced with, in order to accommodate park- ing for the hotel they have to do structured parking and for that they need to do pilings and there will be core testing to determine again what we will be faced with and we have a pretty good item of the depth of the pilings and the study says there are no ground issues. The reason for this location, it fits the footprint and also is pushed away from where the contamination would exist. There is methane gas, and they will come up with a method for the handling of it to protect their guests, so they are aware of the concerns expressed by the City. He suggested in Phase II, maybe do a sharing of costs in whatever the Phase II study would entail. He stated there is a tremendous opportunity for the City/Harbor District and Developer to get revenue, for whoever is going to come in would encounter the same thing. He stated the level and the quality of the hotel is reflected in the pictures and they are excited about putting in a Hilton Hotel. Discussion followed: Councilman Penna stated it is a magnificent structure, has prestige and he knows we will be making money; 17 borings have been taken on the property and the results show the re- sults of the landfill and how far down it goes; Coun- cilman Penna wanted to know, what is the need for the indemnification for the methane on the property; the Developer is going to a consultant to say this is what the remediation should be based on, that we are going to do and there are no deficiencies in workmans skills, then you are not obligated to do more than what you are doing; the property all goes back to the City at the end of the lease. M/S Penna/Datzman - To adopt the Resolution. RESOLUTION NO. 39-98 Carried by unanimous voice vote. CONSENT CALENDAR Approved. Approved in the amount of $2,087,488.62. 4/22/98 Page 5 AGENDA ACTION TAKEN CONSENT CALENDAR Resolution approving a budget amendment for the Operating Budget for the 1998-99 Community Devel- opment Block Grant Program to incorporate adminis- trative funds received from the HOME Investment Partnership Program. ~1 2.0 A RESOLUTION APPROVING AN AMENDMENT TO THE 1998-99 COMMUNITY DEVELOPMENT BLOCK GRANT OPERATING BUDGET (NO. 98- 11) TO INCLUDE FUNDS RECEIVED FROM SAN MATEO COUNTY 4. Resolution approving a tree grant application. ~OD~o A RESOLUTION AUTHORIZING SUBMITTAL OF A GRANT APPLICATION TO THE CALIFORNIA DEPARTMENT OF FORESTRY AND FIRE PRO- TECTION FOR $30,000 TO PLANT 500 TREES IN THE WESTBOROUGH AREA o Resolution authorizing a contract with Environmental Science Associates (ESA) for preparation of an environmental impact report for the Material Recov- ery Facility (MRF) - continued from the 4/8/98 meet- ing. ~D ~ ~ A RESOLUTION AUTHORIZING A CONTRACT WITH ENVIRONMENTAL SERVICES ASSOCI- ATES (ESA) FOR AN ENVIRONMENTAL IM- PACT REPORT FOR THE MATERIALS RECOV- ERY FACILITY AND GARBAGE TRANSFER STATION Resolution amending the Capital Improvement Pro- gram, in the amount of $175,000, for the already acquired property at the southeast corner of Chestnut Ave. and Grand Avenue. A RESOLUTION APPROVING AN AMENDMENT TO THE 1997-98 CAPITAL IMPROVEMENT PRO- GRAM (CIP 98-22) BUDGET IN THE AMOUNT OF $17,000 TO PURCHASE THE PARCEL LO- CATED AT THE SOUTHEAST CORNER OF CHESTNUT AND GRAND AVENUE r ). Resolution authorizing contract with Jerry Haag for preparation of a Negative Declaration. 50 ~ q' A RESOLUTION AUTHORIZING A CONTRACT CONSENT CALENDAR RESOLUTION NO. 40-98 RESOLUTION NO. 41-98 Removed from the Consent Calendar for discussion by Mayor Mullin. RESOLUTION NO. 42-98 RESOLUTION NO. 43-98 4/22/98 Page 6 AGENDA ACTION TAKEN CONSENT CALENDAR 0. Resolution - Continued. WITH JERRY HAAG FOR A NEGATIVE DECLA- RATION FOR THE SOUTH PARK RESIDENTIAL DEVELOPMENT Resolution authorizing a contract with Environmental Science Associates (ESA) for preparation of an environmental impact report for the Material Recov- ery Facility (MRF) - continued from the 4/8/98 meet- ing. frO'gq A RESOLUTION AUTHORIZING A CONTRACT WITH ENVIRONMENTAL SERVICES ASSOCI- ATES (ESA) FOR AN ENVIRONMENTAL IM- PACT REPORT FOR THE MATERIALS RECOV- ERY FACILITY AND GARBAGE TRANSFER STATION RECESS: RECALL TO ORDER: PUBLlC HEARINGS Public Hearing - To consider the appeal of the City Manager's denial of the business license application of Avis Rent a Car Systems, Inc., to operate a distri- bution center and regional office at the 513 Eccles Avenue Facility; Public Hearing opened on 3/11/98 and continued on 3/25/98 and 4/8/98; close Public Hearing, Motion to note and file the referenced mat- ter. 50 g~ CONSENT CALENDAR M/S Penna/Fernekes - To approve the Consent Calendar, including Item No. 10, and with the ex- ception of Item No. 5. Carried by unanimous voice vote. Councilman Penna left the podium at 10:45 p.m. due to a conflict of interest. Mayor Mullin stated there are six items for the MRF, and the sixth was to identify alternate sites, the sequencing on the Haskins site - are they rank orders, for the alternate site should be identified first. Director of Economic & Community Development Van Duyn stated all sites were assessed on an equal basis and there is difficulty in finding sites, and this firm has great expertise in MRFs. M/S Fernekes/Datzman - To adopt the Resolution. RESOLUTION NO. 44-98 Carried by majority voice vote, Councilman Penna was not present due to a conflict of interest. Mayor Mullin recessed the meeting at 10:45 p.m. Mayor Mullin recalled the meeting to order at 10:57 p.m., all Council was present, including Councilman Penna. PUBLIC HEARINGS Removed from the Agenda by the City Manager under Agenda Review, because the Applicant with- drew his appeal. 4/22/98 Page 7 AGENDA ACTION TAKEN PUBLIC HEARINGS Public Hearing - CDBG Statement of Objectives and projected use of funds for FY 1998-99, and the City's Consolidated Plan for Housing and Community De- velopment for 1998-2003; conduct Public Hearing; adopt resolution authorizing submittal of all required documents to the Department of Housing and Urban Development and execution of all documents by the City Manager to secure and award CDBG funds for the City. ,5'05t'] A RESOLUTION AUTHORIZING SUBMITTAL A OF STATEMENT OF OBJECTIVES AND PRO- POSED USE OF CDBG FUNDS AND THE CITY'S 1998-2003 CONSOLIDATED HOUSING AND COMMUNITY DEVELOPMENT PLAN TO THE DEPARTMENT OF HOUSING AND URBAN DE- VELOPMENT AND AUTHORIZING THE CITY MANAGER TO EXECUTE RELATED DOCU- MENTS 9. Public Hearing - To consider General Plan Amend- ment, Rezoning and Use Permit to allow construction of an airport parking facility at 191 North Access Road and along the "Finger Piers", in the P-I Planned Industrial and O-S Open Space Zone Districts, GP- 97-009, RZ-97-008, UP-97-008 and ND-97-008; Conduct Public Hearing, Motion to approve ND-97 -008, adopt resolution approving GP-97-009, Motion waive reading and introduce an ordinance to approve RZ-97-008 and a Motion to approve UP-97-008 based on the attached findings and conditions of approval. ..... A RESOLUTION ADOPTING A GENERAL PLAN AMENDMENT TO THE EAST OF 101 AREA PLAN RELATED TO DEVELOPMENT OF THE PUBLIC HEARINGS Mayor Muliin opened the Public Hearing. CDBG Coordinator Fragoso gave the staff report and stated the $733,000 equals a 3% reduction from the prior year and recommendations are in the staff report from the Subcommittee. The following non-profit organizations gave brief presentations: Rick Fritsche of PARCA, Jan Wilhorn, Poplar KeCare, Andre Fleming of Boys & Girls Club. Mayor Mullin closed the Public Hearing and com- mended Ms. Fragoso and the Subcommittee. Discussion followed: Poplar Recare was funded a couple of years back and the Center for Violence; Belmont Hospice is the only aids hospice in the County; that is a critical service, but does not serve S.S.F.; Subcommittee's recommendation was for domestic violence; Vice Mayor wants to give the aids hospice consideration in the future; he will sit down with the Manager of the Boys & Girls Club to get a clearer and bigger picture of how funds come in and are distributed; Councilman Penna stated it is difficult to deal with Federal cuts in the CDBG funds; etc. M/S Datzman/Fernekes - To adopt the Resolution. RESOLUTION NO. 45-98 Carried by unanimous voice vote. Mayor Mullin opened the Public Hearing. Director of Economic & Community Development Van Duyn gave the staff report and stated the lease negotiations have slowed down the lease agreement and a minimum of $400,000 goes to the City yearly. Vice Mayor Datzman stated the Planning Division did a thorough job on the 24 hour security. Mr. Avanessian, Architect, stated they agreed to the 24 hour security condition, and described the architectural features of the building. Mayor Mullin closed the Public Hearing. 4/22/98 Page 8 AGENDA ACTION TAKEN PUBLIC HEARINGS Public Hearing - Continued PARCEL NO. 015-180-020 AND REALIGNING THE BAY TRAIL AN ORDINANCE AMENDING THE ZONING DISTRICT MAP OF THE CITY OF SOUTH SAN FRANCISCO TO CHANGE THE ZONING OF THE "FINGER PIERS" PROPERTY FROM OPEN SPACE (O-S) TO PLANNED INDUSTRIAL (P-I) ~DMINISTRATIVE BUSINESS x 1. Resolution approving a ground lease tbr the Fingers property between the City of S.S.F. and REST In- vestments. 50 ~ A RESOLUTION APPROVING A GROUND LEASE WITH REST INVESTMENTS Councilman Penna Left the Meeting: 12. Resolution approving a second amendment to the Ground Lease with Raiser, LLC and approving a joinder. A RESOLUTION APPROVING A JOINDER AND SECOND AMENDMENT TO THE GROUND LEASE BETWEEN THE CITY, THE SAN MATEO COUNTY HARBOR DISTRICT, AND RAISER RE SOURCES LLC, RELATED TO PROPERTY AT THE OYSTER POINT MARINA PUBLIC HEARINGS M/S Fernekes/Datzman - To approve Negative Declaration Nc). 97-008. Carried by unanimous voice vote. M/S Fernekes/Datzman - to adopt the Resolution. RESOLUTION NO. 46-98 Carried by unanimous voice vote. M/S Fernekes/Datzman - To waive reading and introduce the ordinance. Carried by unanimous voice vote. M/S Datzman/Fernekes - To approve UP-97-008 based on the findings and conditions in the staff report. Carried by unanimot, s voice vote. ADMINISTRATIVE BUSINESS Redevelopment Project Manager Beyer gave the staff report and stated it is a 30 year ground lease with two options for additional 15 year periods. He stated the City would receive $85,000-$90,000 annually from the parking tax. M/S Penna/Fernekes - To adopt the Resolution. RESOLUTION NO. 47-98 Carried by unanimous voice vote. Councihnan Penna left the meeting at 11:44 p.m. and did not return. Heard earlier on the Agenda. 4/22/98 Page 9 AGENDA ACTION TAKEN ADMINISTRATIVE BUSINESS Resolution accepting an increase in refuse collection rates, effective 7/1/98, from the South San Francisco Scavenger Co. ~fl, 3~ A RESOLUTION ACCEPTING AN INCREASE OF 3.02% IN REFUSE COLLECTION RATES EFFEC- TIVE JULY 1, 1998 AS SUBMITTED BY THE SCAVENGER COMPANY OF SOUTH SAN FRAN- CISCO 14. Resolution approving agreement with Media Connec- tion Group to conduct the defined services of the Telecommunications Needs Study. A RESOLUTION APPROVING AN AGREEMENT WITH MEDIA CONNECTION GROUP (MCG) IN AN AMOUNT NOT TO EXCEED $75,000 RELAT- ED TO CONDUCTING THE TELECOMMUNICA- TIONS NEEDS STUDY 15. Resolution approving agreements for Enron Corpora- tion (FirstPoint). ~0~-~ A RESOLUTION APPROVING A RETAIL SUP- PORT SERVICES AGREEMENT AND FINAN- CIAL ASSURANCES AGREEMENT BETWEEN THE CITY OF SOUTH SAN FRANCISCO AND FIRSTPOINT CALIFORNIA INCORPORATED, A WHOLESALE POWER PURCHASE AGREEMENT BETWEEN THE CITY OF SOUTH SAN FRAN- CISCO AND ENRON CORPORATION, AND AC- CEPTING A CORPORATE GUARANTEE FROM ENRON CORPORATION ADMINISTRATIVE BUSINESS Director of Finance Brooks stated that using an 80% factor as stipulated in the franchise agreement the percent of increase for 7/1/98 is 3.02% and recommended the resolution be adopted. M/S Datzman/Fernekes - To adopt the Resolution. RESOLUTION NO. 48-98 Carried by unanimous voice vote of those present, with the exception of Councilman Penna who was absent. Assistant City Manager Moss stated on Monday the Subcommittee met with the Group and chose this firm, however, the agreement will not exceed $75,000.00. Mr. David Roselle, Principal of Media Connection Group (MCG) stated his firm's specialties, which he believes, qualify them for this telecommunications agreement and proceeded to described the expertise of people in his firm on fiber optics networks and described their work in various municipalities. M/S Datzman/Fernekes - To adopt the Resolution. RESOLUTION NO. 49-98 Carried by unanimous voice vote of those present, however, Councilman Penna was absent. City Manager Wilson related: approximately 18 months ago the City entered into an RFP for our community; the City selected Portland General and FirstPoint and entered into an agreement with them which was a simplistic proposal where we were going to ensure a 5% savings on the utility bill; we had great hopes to achieve that; the PUC said they were going to deregulate the industry and simply restructure, that made achieving our objec- tives very difficult; during the time period staff spent a lot of time; Enron purchased Portland Gen- eral and FirstPoint; when the City entered into the agreement the objective was to offer all residents to take advantage and have a choice of electric provid- ers, but they had to have flexibility to compete in the market place; he described the options that will be available to achieve the 5% reduction; people 4/22/98 Page 10 AGENDA ACTION TAKEN ADMINISTRATIVE BUSINESS Resolution - Continued. 4/22/98 Page 11 ADMINISTRATIVE BUSINESS have to sign up for the term or they will receive a penalty; people will receive a 5% reduction, but after October that will be adjusted; Enron has con- structed rates that compare with PG&E and there are other companies in the market place trying to get contracts; Enron will try to achieve objectives of a savings rate of 3% to 7%; so, on one hand it is not identical to what we started, but it is very close and achieves the objectives; he knows FirstPoint is anx- ious to commence a marketing program with mailers to get their message out to the community, hopefully with local television efforts; staff has monitored what else is out there and a neighborhood communi- ty did an RFP to see if they could get a rate struc- ture similar and they couldn't S.S.F. will offer the most attractive of anything conceivable other than Palm Springs, but he thinks we are better than Palm Springs. Mr. Nagore, First Point, stated he was here with his counterpart from Houston, Mike McDonald, and Victoria Johnson is here from Portland to answer any questions. His firm has committed to setting up the office here and running it in a productive manner. Mr. Arthur Tognazzini, 358 Arroyo Dr., stated he is a former Park Commissioner and a 38 year resi- dent/voter and homeowner here in S.S.F. He stated he was here because of two newspaper articles, the Peninsula article of 4/7/98 where you describe your negotiations with Enron and so on. The idea here is that hopefully the City can produce savings for those of us that want to participate. The other article appeared in Indian Currents on 4/19/98, which was a release from Associated Press coming out of Bom- bay that said, Houston Enron was accused of intend- ing to spend power at a higher rate. He urged the Council to check this out to see if Enron is really the company fi~)r us. Mr. Nagore stated Enron is in natural gas and the largest utility company in the world today, we have options in S.S.F., Canada and India and he is un- aware of what Mr. Tognazzini is talking about for that is not how we operate here. Vice Mayor Datzman stated he shared Mr. Tognazzini's concern, but Council's focus went back AGENDA ADMINISTRATIVE BUSINESS 5. Resolution - Continued. ITEMS FROM COUNCIL 16. Discussion of SB1853 and direction to staff on whether or not to support. ACTION TAKEN ADMINISTRATIVE BUSINESS to looking at a complex issue of nailing things down and meeting some definite concerns and part of that had to do with whether FirstPoint was going to be an active part of the community. Mr. Mike McDonald, Enron, stated he has only been with the Company for eight weeks and knows nothing about the article but will look into it. Mayor Mullin stated he is interested in finding out a little more about the Company, and there are differ- ent practices in different countries. He stated it is late in the game to not move forward, but that does not mean he is not going to be pursuing what Enron is going to be doing. He stated the Council's role is to enhance the community regardless of what is taking place over seas. M/S Fernekes/Datzman - To adopt the Resolution. RESOLUTION NO. 50-98 Councilmember Matsumoto stated she believes the over seas matter should be pursued, but she will support the item because it offers the residents a choice of electric companies. Carried by unanimous voice vote, however, Coun- cihnan Penna was absent from the meeting. ITEMS FROM COUNCIL City Attorney Mattas related: he looked to see if the law was preempted, and he believes it is not; he passed out a letter from the District Attorney tonight on the time frames; he explained the provisions of the law; the District Attorney would investigate violations, and if he cannot do it in the prescribed time it goes to the Attorney General. Councilmember Matsumoto requested a resolution be sent to Sacramento. Vice Mayor Datzman stated he attended a meeting this weekend on this subject for aircraft noise com- plaints that the D.A. is to investigate, and was told it did not involve any individual noise complaints. He had asked staff if the D.A. would take action and this letter does not respond to that issue. He found 4/22/98 Page 12 AGENDA ACTION TAKEN ITEMS FROM COUNCIL ~$. Resolution - Continued. GOOD AND WELFARE 4/22/98 Page 13 ITEMS FROM COUNCIL it strange that the D.A. did not know about this Bill. Discussion followed: Councilmember Matsumoto stated the D.A. is concerned with the short time tYame and this doesn't preempt Federal law; the Bill says, a complaint from City or County, a citizen or neighborhood comes to Council with complaints, then the Council can ask for a Public Hearing; Vice Mayor Datzman stated that 18-20% of flights go over S.S.F. and this is far from a perfect vehicle, but it means we can work together; it is violations of variance conditions and if you have an Airport exceeding certain limits then the D.A. has the obli~ gation to prosecute violations, if they cannot do it, it gives you another step to bring it to the Attorney General; Mayor Mullin stated his comments were put into the legislative record and Councilwoman Matsumoto should tell the Roundtable to support the Bill, for it is an incremental step; City Manager Wilson prepared a letter to Senator Kopp and mem- bers of the legislature. Consensus of Council - To send a letter in support of Senate Bill 1853 to Senator Kopp and members of the legislature. GOOD AND WELFARE No one chose to speak. Councilmember Fernekes stated Councilman Penna used a cellular phone to receive calls and was going to get our reactkm. He stated that Council publishes our agenda and they are posted, we are available by phone as is the Manager and he did not think using the cellular phone was a good idea. Councihnember Matsumoto felt the cellular phone ringing during the meeting, and Councilmember Penna's talking was disconcerting, and she did not like the idea of the phone caller being nameless. Vice Mayor Datzman did not think it should be done fi'om the podium. Mayor Mullin also thinks it is disconcerting. AGENDA ACTION TAKEN CLOSED SESSION 1. Closed Session, pursuant to GC 54957.6, labor nego- tiations for the Fire Department. RECALL TO ORDER: ADJOURNMENT: CLOSED SESSION Council entered a Closed Session at 12:30 a.m. to discuss the item noticed. Mayor Mullin recalled the meeting to order at 1:05 a.m., all Council was present but Councilman Penna, no action was taken and direction was given. M/S Fernekes/Datzman - To adjourn the meeting. Carried by unanimous voice with the exception of the absence of Councihnan Penna. Time of adjournment was 1:06 a.m. RESPECTFULLY SUBMITTED, Barbara A. Battaya, C,_._ity of South San Francisco APPROVED. Cit2,cx-ff'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. 4/22/98 Page 14