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HomeMy WebLinkAboutMinutes 1998-12-09Chairman James L. Datzman Boardmembers: Joseph A. Fernekes Karyl Matsumoto ~ugene R. Mullin rohn R. Penna MINUTES Industrial Development Authority Municipal Services Building Community RooTM December 9, 1998 ~_ E E ~_! A_.L MEETING INDUSTRIAL DEVELOPMENT AUTHORITY OF THE CITY OF SOUTH SAN FRANCISCO DECEMBER 9, 1998 NOTICE IS HEREBY GIVEN, pursuant to Resolution of the City of South San Francisco, the Industrial Development Authority of the City of South San Francisco will hold a Special Meeting on Wednesday, the 9th day of December 1998, at 6:50 p.m. in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California. Purpose of the meeting: 1. Call to order. 2. Motion to approve the Minutes of the Special Meeting of 12/10/97. 3. Adjournment. Dated: December 4, 1998 City Clerk Industrial Development Authority City of South San Francisco CALL TO ORDER: ROLL CALL: AGENDA (Cassette No. 1) Motion to approve the Minutes of the Special Meeting of ~',/10/97. ACTION TAKEN 6:56 p.m. Chairman Datzman presiding. Boardmembers present: Boardmembers absent: Fernekes, Matsumoto, Mullin, Penna and Datzman. None. M/S Penna/Fernekes - to approve the Minutes of the Special Meeting of 12/10/97. Boardmember Mullin questioned if Boardmember Penna was absent at that meeting. 12/9/98 Page 1 _A C !IQ_N IA_KEN Boardmember Penna stated he was not absent, and wanted the record corrected. Clerk Battaya stated, she researched the records and affirmed that Boardmember Penna was out of the countrythe day of the Special Meeting of 12/10/97 as the minutes indicated. M/S Mullin/Fernekes - To adjourn the meeting. Carried by unanimous voice vote. ADJOURNMENT: Time of adjournment was 6:59 p.m. RESPECTFULLY SUBMITTED, APPROVED. Barbara A. Battaya, Clerk Industrial Development Authority City of South San Francisco City of South San Francisco i , ~lries of ~m Agency meeting show the action taken by the Indusmal Development Authority to d~spose of an · it6m. Oral. commtmications, arguments and comments are recorded on tape. The tape and documents related to th~ items are on file in the Office of the City Clerk and are available for inspection, review and copying. 1219198 Page 2 Chairman James L. Datzman Boardmembers: Joseph A. Fernekes Karyl Matsumoto · Eugene R. Mullin ~ohn R. Penna M! N__ U__ T_EI Surplus Property Authority Municipal Services Building Community Room December 9, 1998 SPECIAL MEETING SURPLUS PROPERTY AUTHORITY OF THE CITY OF SOUTH SAN FRANCISCO DECEMBER 9, 1998 NOTICE IS HEREBY GIVEN, pursuant to Resolution of the City of South San Francisco, the Surplus Property Authority of the City of South San Francisco will hold a Special Meeting on Wednesday, the 9th day of December 1998, at 6:55 p.m. in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California. Purpose of the meeting: 1. Call to order. 2. Motion to approve the Minutes of the Special Meeting of 12/17/97. ~ 3. Adjournment. Dated: December 4, 1998 Clerk Surplus Property Authority City of South San Francisco CALL TO ORDER: ROLL CALL: AGENDA (Cassette No. 1) Motion to approve the Minutes of the Special Meeting of 12/17/97. ACTION TAKEN 6:59 p.m. Chairman Datzman presiding. Boardmembers present: Boardmembers absent: Fernekes, Matsumoto, Mullin, Penna and Datzman. None. M/S Mullin/Penna - To approve the Minutes of the Special Meeting of 12/17/97. Carried by unanimous voice vote. 12/9/98 Page 1 ACTION IA_KEN ADJOURNMENT: RESPECTFULLY SUBMITTED, Barbara A. Battaya, Clerk Surplus Property Authority City of South San Francisco MIS Fernekes/Penna - To adjourn the meeting. Carried by unanimous voice vote. Time of adjournment was 7:00 p.m. APPROVED. ,~rplUs P--zoperty Authority ~ity of South San Francisco The entries of this Agency meeting show the action taken by the Surplus Property Authority to dispose of an item. Oral communications, arguments and comments are recorded on tape. The tape and documents related to the items are on file in the Office of the City Clerk and are available for inspection, review and copying. 12/9/98 Paue 2 Chairman James L. Datzman Boardmembers: Joseph A. Fernekes Karyl Matsumoto :ugene R. Mullin ohn R. Penna MINUTES Recreation & Park District Municipal Services Building Community Room December 9, 1998 SPECIAL MEETING RECREATION & PARK DISTRICT OF THE CITY OF SOUTH SAN FRANCISCO DECEMBER 9, 1998 NOTICE IS HEREBY GIVEN, pursuant to Resolution of the City of South San Francisco, the Recreation & Park District of the City of South San Francisco will hold a Special Meeting on Wednesday, the 9th day of December 1998, at 7:05 p.m. in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California. Purpose of the meeting: 1. Call to order. 2. Motion to approve the Minutes of the Special Meeting of 4/22/98. .... 3. Adjournment. Dated: December 4, 1998 City Clerk Recreation & Park District City of South San Francisco CALL TO ORDER: ROLL CALL: AGENDA (Cassette No. 1) Motion to approve the Minutes of the Special Meeting of 4/22/98. ACTION TAKEN 7:22 p.m Chairman Datzman presiding. Boardmembers present: Boardmembers absent: Fernekes, Matsumoto, Mullin, Penna and Datzman. None. M/S Fernekes/Penna - To approve the Minutes of the Special Meeting of 4/22/98. Carried by unanimous voice vote. M/S Mullin/Fernekes - To adjourn the meeting. 12/9/98 Page 1 AGENDA ACTION TAKEN DJOURNMENT: RESPECTFULLY SUBMITTED, B~rbara A. Battaya, Clerk Recreation & Park District City of South San Francisco Carried by unanimous voice vote. Time of adjournment was 7:23 p.m. APPROVED. J;en~a~; nD a&~na; ~: ' DCi s t~. 1~1 an City of South San Francisco The entries of this Agency meeting show the action taken by the Recreation & Park District to dispose of an item. Oral communications, arguments and comments are recorded on tape. The tape and documents related to the items are on file in the Office of the City Clerk and are available for inspection, review and copying. 12/9/98 Page 2 Mayor James L. Datzman Council: Joseph A. Fernekes Karyl Matsumoto '--'Eugene R. Mullin lohn R. Penna CALL TO ORDER: ROLL CALL: AGENDA (Cassette No. 1) PLEDGE OF ALLEGIANCE: INVOCATION: PRESENTATIONS ,'"~tst of 101 Hotel Shuttle Program - Angela Rae Proclamation - PAL - Former Councilman Gus Nieolopulos BART Project Update - Mary Wong 12/9/98 Page 1 MINUTES City Council Municipal Services Building Community Room December 9, 1998 l 'Z, ACTION TAKEN 7:35 p.m. Mayor Datzman presiding. Council Present: Council Absent: Fernekes, Matsumoto, Mullin, Penna and Datzman. None. The Pledge was recited. Rev. Neeley, Grand Avenue Baptist Church, gave the invocation. PRESENTATIONS Mayor Datzman stated this item will be deferred to another meeting due to Ms. Rae not being present. Mayor Datzman stated that Mr. Nicolopulos was the original President of PAL, one of their best boost- ers. Ms. Wong related progress made by the contractor: he made progress in site preparation and in the utilities relocation; contract was awarded 7/97; the project is close to completion; it is an 8.7 mile line; trackwood awarded; third contract was in Millbrae; intermodal station is in San Bruno and that will be awarded early next year; the last station is in S.S.F. and they will go out to bid early next year; Colma Creek Culvert at S.S.F. has been completed; subway construction began adjacent to the old Macy's Warehouse; sheet pile installa- tion for an upcoming subway with a deep trench and subway box; soil stabilization, site preparation, street decking of Chestnut and Orange; utility relocation; construction of a second driveway north of the Boys & Girls Club; installing piling; advertisement held over for held over for next year to describe community out- reach and construction notification; maintain project web site; introduced Janie Stein as her replacement; AGENDA ACTION TAKEN ~ r~ PRESENTATIONS AGENDA REVIEW City Manager Wilson Requested: - Put Item No. 7 under Administra- - Hear Item 9 before Item 8. tive Business. ORAL COMMUNICATIONS COMMUNITY FORUM/COUNCIL SUBCOMMITTEE REPORTS PRESENTATIONS she has an outreach background and will be an asset to the project; Janie worked for SAMCEDA and with various Councilmembers. Discussion followed: 7:00 a.m. to 7:00 p.m. for pile driving Monday through Friday; pleased they will end in January; Mary said she would be visible, res- ponsible and available - which she has been. AGENDA REVIEW So ordered. ORAL COMMUNICATIONS No one chose to speak. COMMUNITY FORUM/COUNCIL SUBCOM- MITTEE REPORTS Councilman Fernekes related: he received many phone calls of complaint over the last couple of weeks regarding TCI on coaxial to fiber optics; other information from residents was that of rude- ness and their not following through; he has prob- lems with a TV in his household, he called for service and was told it would take a long time; he called the Service Manager and then got quick re- sponse, but residents are not getting this service; a few months ago there was a report on co-axial and we were told there would be little interruption of service; the customers, our residents, are upset - are there alternatives; there are complaints that during Council meetings the screen is dark and they cannot hear a Councilman or speaker; we were told new cameras would take care of the problem, but the residents are not sure the mikes are on; persisting concern from the community; when the system is down an individual is entitled to a rebate, but you have to ask for it, when it should be automatic; can the Subcom-mittee review these issues with TCI; both he and Council-member Mullin received the same E-mail. 12/9/98 Page 2 AGENDA ACTION TAKEN COMMUNITY FORUM/COUNCIL SUBCOMMITTEE EPORTS 12/9/98 Page 3 COMMUNITY FORUM/COUNCIL SUBCOMMIT- TEE REPORTS Councilman Mullin agreed with Councilman Fernekes. Councilman Penna related: he travelled through Israel several weeks ago and read a letter of wel- come he received from a catholic school; he has friends that are Palestinians; he visited families in refugee camps and his reception was warm; he saw the living stones; etc. Councilman Fernekes wants TCI to give a quarterly update on co-axial to fiber optics. He also wants to know what are 24 hour and 48 hour responses so he can respond to his constituents. He wants the Sub- committee to look at potential senior site housing. Ms. Sue Norton, Director of Government Affairs for TCI West Bay Area, stated Tom Tarantella was here and could ad-dress the engineering upgrade of fiber optics in S.S.F., which is the activity that is causing the interruption of service. She did not want to sound flippant, but the fact that there are in- terruptions in service means they have a strong and robust rebuild going on. Part of the nature of the upgrade is that there are interruptions in service and she had prepared a letter to Councilman Mullin de- scribing the process of the service upgrade. They communicate with their customers and have sent letters to that affect which will continue until the process is completed. TCI places an ad weekly in the Independent that shows a map identifying where the construction is going on for the upcoming week, and we have published a phone number, 869-5292, for anyone to get a recorded update as to where TCI crews are working. Councilwoman Matsumoto asked TCI's policy on rebates, for one individual was given a rebate and another was not. Ms. Norton stated it can't be automatic, unlike PG&E where they know when the energy is used, so TCI does not know when people are watching. Discussion followed: what can TCI do when people call in, so they are not misguided; certainly when people say they have an outage or a service interrup- AGENDA ACTION TAKEN COMMUNITY FORUM/COUNCIL SUBCOMMITTEE EPORTS CONSENT CALENDAR Motion to approve Minutes of the Regular Meeting of 10/28/98 and Special Meeting of 11/10/98. Motion to confirm expense claims of 12/9/98. o Resolution amending the Police Department budget to include $61,894 the Department will receive from the U.S. Justice, Bureau of Justice Assistance. A RESOLUTION APPROVING AN AMENDMENT TO THE 1998-99 OPERATING BUDGET (NO. 99- 9) TO ADD $61,894 TO THE POLICE DEPART- MENT BUDGET WITH FUNDING FROM THE LOCAL LAW ENFORCEMENT BLOCK GRANTS PROGRAM Resolution approving an award of contract to JMB Construction in the amount of $96,750, and an amendment to the 1998-99 CIP for $40,000 to cover consulting fees and necessary permits for the Point San Bruno Jetty Project. A RESOLUTION AUTHORIZING AN AWARD OF CONTRACT TO JMB CONSTRUCTION IN AN AMOUNT NOT TO EXCEED $96,750 FOR THE SAN BRUNO JETTY PROJECT AND APPROV- ING AN AMENDMENT TO THE 1998-99 CAPI- TAL IMPROVEMENT PROGRAM BUDGET (99-3) 12/9/98 Page 4 COMMUNITY FORUM/COUNCIL SUBCOMMIT- TEE REPORTS tion, they may have a credit on their bill and they are given that; the TCI representative is not saying, we are sorry for the inconvenience and do not get a credit unless they ask for it; TCI does not have person asks for a credit or if it is offered; she will find out what TCI is doing in S.S.F. and see how that can be addressed, given the upgrade situation, and will take that back to the General Manager Keith Relph, and discuss that with him; Mr. Relph is the new General Manager and has begun introduc- tions locally, and has met with the SamTrans Group; the Peninsula to Redwood City, but not San Fran- cisco; there are 20 cities in San Mateo County and all, excluding San Bruno, do not have their own sys- tem; is there some way TCI can quantify how those standards have been met in the past. CONSENT CALENDAR Approved. Approved in the amount of $1,691,629.04. Removed from the Consent Calendar for discussion by Councilman Mullin. RESOLUTION NO. 150-98 AGENDA ACTION TAKEN ] r'J¢ CONSENT CALENDAR Resolution - Continued. TO INCREASE THE PROJECT BUDGET BY $40,000 TO COVER THE CONSULTING FEES Resolution approving the destruction of election re- cords (absentee ballots) for the Special Elections of 4/8/86 and 12/12/95. A RESOLUTION APPROVING DESTRUCTION OF PUBLIC RECORDS PURSUANT TO ELECTIONS CODE 17306 Motion to adopt an ordinance regarding the use of bidding procedures for purchases of supplies, services, and equipment. AN ORDINANCE AMENDING THE SOUTH SAN FRANCISCO MUNICIPAL CODE SECTION 4.04.110 REGARDING THE USE OF BIDDING PROCEDURES FOR PURCHASES OF SUPPLIES, SERVICES, EQUIPMENT Motion to adopt an ordinance on ZA-98-089 to amend the Municipal Code on amusement arcades, rental car storage lots, rental car fleet maintenance, permit rental car storage as a conditional use and to permit rental car fleet maintenance as a conditional use in the M-1 Industrial Zone District. AN ORDINANCE AMENDING THE SOUTH SAN FRANCISCO MUNICIPAL CODE SECTIONS 6.44.020, 6.44.030, 20.06.050, 20.22.045, 20.24.025, 20.24.030, 20.32.030, 20.30.030, AND 20.06.070 TO REDEFINE "AMUSEMENT AR- CADES,'' TO DEFINE "RENTAL CAR STORAGE LOTS," TO DEFINE "RENTAL CAR FLEET MAINTENANCE," TO PERMIT RENTAL CAR STORAGE AS A CONDITIONAL USE IN THE P-C PLANNED COMMERCIAL ZONE DISTRICT AND THE P-I PLANNED INDUSTRIAL DISTRICT, AND TO PERMIT RENTAL CAR FLEET MAIN- TENANCE AS A CONDITIONAL USE IN THE M-1 INDUSTRIAL ZONE DISTRICT CONSENT CALENDAR RESOLUTION NO. 151-98 ORDINANCE NO. 1232-98 Removed from the Consent Calendar by the City Manager for it to be heard after Item No. 9 and then 8 under Agenda Review. M/S Fernekes/Penna - To approve the Consent Calendar with the exception of Item 3 and 7. 12/9/98 Page 5 AGENDA ACTION TAKEN CONSENT CALENDAR Resolution amending the Police Department budget to include $61,894 the Department will receive from the U.S. Dept. of Justice, Bureau of Justice Assistance. A RESOLUTION APPROVING AN AMENDMENT TO THE 1998-99 OPERATING BUDGET (NO. 99- 9) TO ADD $61,894 TO THE POLICE DEPART- MENT BUDGET WITH FUNDING FROM THE LOCAL LAW ENFORCEMENT BLOCK GRANTS PROGRAM ADMINISTRATIVE BUSINESS 9. Resolution approving the 457 deferred compensation __ plans. A RESOLUTION APPROVING THE DEFERRED COMPENSATION PLANS PUBLIC HEARINGS o Public Hearing - to consider OPUS West Corpora- tion/Sierra Point, L.L.C. Southerly Terminus of Sierra Point - PUD-98-044, PM-98-044, and allowing construction of an 8 story, unit hotel and 3 buildings containing a total of 440, square feet of office and re- search and development space in accordance with the provisions of SSFMC Chapters 20.32 and 20.84; Conduct Public Hearing; Motion to approve Negative Declaration ND-98-044, resolution to approve PUD- 98-044 and PM-98-044. A RESOLUTION APPROVING PLANNED UNIT DEVELOPMENT 98-044 ALLOWING A MASTER 12/9/98 Page 6 CONSENT CALENDAR Carried by unanimous voice vote. Councilman Mullin asked if this was designed for gang suppression. Police Chief Raffaelli stated it is a computerized system of hardware, Countywide, of tracking gang members. M/S Mullin/Penna - To adopt the Resolution. RESOLUTION NO. 152-98 Carried by unanimous voice vote. Councilwoman Matsumoto noted that the contractor's name was misspelled. ADMINISTRATIVE BUSINESS Director of Human Resources Bower stated the reso- lution holds this in trust for benefits, and meets the requirements of the law. Councilwoman Matsumoto wants a clarification and examples of page 12. M/S Penna/Matsumoto - To adopt the Resolution. RESOLUTION NO. 153-98 Carried by unanimous voice vote. PUBLIC HEARINGS Councilman Penna left the podium due to a FPPC ruling that realtors cannot participate or vote on land use issues. Mayor Datzman opened the Public Hearing. Chief Planner Harnish gave a brief staff report: this is the northerly area of town by Brisbane; 26 acres are above water; there are three office buildings with 440,000 sq ft., there are 152 hotel rooms with landscaping; PUD is for seven stories with private streets and shared parking; it is a land fill site, with a clay cap installed over contam- AGENDA ACTION TAKEN PUBLIC HEARINGS I. Public Hearing - Continued. PLAN COMPRISED OF 440,000 SQUARE FOOT OF RESEARCH DEVELOPMENT AND A 152 ROOM HOTEL WITH SHARED PARKING, PRI- VATE STREETS, PHASED DEVELOPMENT, 24 HOUR OPERATIONS AND GENERATING IN EX- CESS OF 100 AVERAGE DAILY VEHICLE TRIPS ENDS, AND TENTATIVE PARCEL MAP 98-044 ALLOWING FOUR COMMERCIAL LOTS ON A 26 ACRE SITE LOCATED AT SIERRA POINT AT THE SOUTHERLY TERMINUS OF SHORELINE COURT ADJACENT TO SAN FRANCISCO BAY AND UNION PACIFIC RAILWAY 12/9/98 Page 7 PUBLIC HEARINGS ininated streets; concern over sewer service and the esthetics issue; new corridors were the concern of BCDC. Discussion followed: police service the emergency roads and have concerns coming south, yet they can go there on the freeway; Mayor Datzman wants to hear from the police on the mutual aid and the two alternatives; BCDC is concerned that a wider bridge would have a wider impact. Mr. Randy Ackerman, OPUS, stated his firm has been working with staff on this and proceeded to show the entire master plan. He spoke of the exten- sive landscaping and the market for hotel users. Mayor Datzman closed the Public Hearing. Sgt. Mazzoni stated the police had a concern in getting to the site quickly, but in return it takes 15 minutes. If an officer responds in a quick fashion, they could use that road, but need to work out the access to that road. Mr. Ackerman stated that he had several meetings with Caltrans, who owns the road, and there were no discussions that it would only be for one direc- tion, yet the staff report mentions it as one way. Chief Planner Harness stated he really meant access only to police and fire. Fire Chief Lee stated staff worked it out with Bris- bane fi~r a joint response. Councilman Mullin thinks this is an interesting project and an asset, also in the recreational oppor- tunities for employees. Discussion followed: access to the bay trail; private vs public streets; because of the remoteness, staff wants the streets private; Brisbane has private streets; standards for streets; concern for settling of site, then it is better to make them private; could AGENDA ACTION TAKEN / f]q PUBLIC HEARINGS t. Public Hearing - Continued. Councilman Penna Left the Podium: Motion to adopt an ordinance on ZA-98-089 to amend the Municipal Code on amusement arcades, rental car storage lots, rental car fleet maintenance, permit rental car storage as a conditional use and to permit rental car fleet maintenance as a conditional use in the M-1 Industrial Zone District. AN ORDINANCE AMENDING THE SOUTH SAN FRANCISCO MUNICIPAL CODE SECTIONS 6.44.020, 6.44.030, 20.06.050, 20.22.045, 20.24.025, 20.24.030, 20.32.030, 20.30.030, AND 20.06.070 TO REDEFINE "AMUSEMENT AR- CADES,'' TO DEFINE "RENTAL CAR STORAGE LOTS," TO DEFINE "RENTAL CAR FLEET MAINTENANCE, "RENTAL CAR FLEET MAIN- TENANCE,'' TO PERMIT RENTAL CAR STOR- AGE AS A CONDITIONAL USE IN THE P-C PLANNED COMMERCIAL ZONE DISTRICT AND THE P-I PLANNED INDUSTRIAL DIS- 12/9/98 Page 8 PUBLIC HEARINGS be something in the DCC&Rs for maintaining; it could be contained in a reciprocal agreement to maintain on their sites; what BCDC visual impacts are in the removal of the trees; will we see clusters of trees; traffic at Oyster Point and Sierra Point; access would not be there, it would be at Sierra Point; this is our version of Redwood Shores; page 77, Negatie Declaration talks about A-F; page 89 of addendum talks about traffic mitigation; Brisbane af- fects them more than S.S.F.; staff satisfied with mitigation measures; traffic signal instalation is not paid for by City; traffic signals will be maintained and are in Brisbane; will meet security standards; parking for hotels; look at shuttle services; will vices; will fund a shuttle service to the site; staff is looking at cumulative effects on traffic; etc. M/S Fernekes/Mullin - To approve Mitigated Nega- tive Declaration 98-044 and adopt the Resolution. RESOLUTION NO. 154-98 Carried by majority voice vote, Councilman Penna was not present during the discussion or vote. Councilman Penna again left the podium due to the FPPC ruling that realtors cannot participate or vote on land use issues. Chief Planner Harnish related: allows three coin operated machines; six and over require a use per- mit; a new definition for clarification for storage; this is a second reading and adoption of the ordi- nance. City Manager Wilson stated there were two letters of objection from Atty. Corey's Office. He stated he spoke to Mr. Waltman, who had asked that this be continued. Atty. Finney stated his firm represents Hertz Corpo- ration in litigation in the Western States. Hertz is obviously reluctant to embrace litigation as a ma- on the ordinance under consideration. He related: jor corporation, and he is here to make a presenta- tion, but we may be forced to consider that action the ordinance is an improper ordinance that is trying to levy tax or fees on the property owners in the AGENDA ACTION TAKEN Motion - Continued. THE P-I PLANNED INDUSTRIAL DISTRICT, AND TO PERMIT RENTAL CAR FLEET MAIN- TENANCE AS A CONDITIONAL USE IN THE M- I INDUSTRIAL ZONE DISTRICT 12/9/98 Page 9 surrounding area; that is the purpose, he believes, of the proposed ordinance; at the previous meeting where the resolution was adopted, the City Attorney assured the Mayor that the proposed ordinance was implementing the land use policy, but those state- ments are incorrect; the General Plan and the 101- Plan state that autos, trucks and other equipment rental should not be permitted unless under utility lines and this ordinance does not do that, it only pertains to rental lots - why was that; it is because the City Attorney analyzed that the purpose of the ordinance is to capture revenue from the car rentals and this ordinance is necessary to address tax and fee issues; but how does the ordinance analyze that - it doesn't, it puts new fees on the tax rolls and bans certain types of rental activities; so, how is the ordinance capturing sales tax and if that is the pur- pose how is that analyzed in this instance; staff came to Hertz, he was not at that meeting with Atty. George Corey and made it clear the City was going to get a proposal from Hertz and that was what Hertz was prepared to offer; the City Manager previously stated that the City wanted a volunteered guarantied tax payment as a part of the proposal to the City, and was not happy for it was going to San Francisco and the Airport; subsequently, follow- ing the hearing, it was made clear by the City Man- ager it was more precise that the guaranty tax pay- ment be made prior to any proposal and that was $150,000-$200,000 a year as a voluntary tax pay- ment; at the same time when the City was solici- ting Hertz for the tax payment, the City delayed a business license to Hertz which had been applied before and as a part of the long standing efforts to locate in S.S.F.; the basis for denial was that certain land use issues have to be resolved - that denial is unlawful on several grounds; a certain part of this is irony - revenue to regulate land use, and has chosen to adopt, to compel, property owners to pay taxes; how far can someone go with a zoning ordinance to pay taxes; where does it leave us to answer the questions; how far can someone go with a zoning ordinance for a tax and a fee, and that is not becoming with Prop. 13 and the initiatives adopted, and that is why those laws will be enforced and the ordinance scrutinized upon review; rental car storage would be separated from rental car and made conditional land use requiring permits, while other California businesses are permitted uses; we are asking that the City not proceed with the adop AGENDA ACTION TAKEN 7. Motion - Continued. 12/9/98 Page 10 tion of the ordinance; Hertz wants to use the proper- ty without the voluntary tax for the use; Hertz is fully mitigated, that is the routine of the permit and that would be a condition of any of the Hertz opera- tions, but it is not prepared to pay a Hertz only tax; Hertz looks forward to being a member of the com- munity, but not in a business with a tax that is not applied to other businesses and that is what is occur- ring; so, we urge the City to step back from adop- tion of the ordinance and work with Hertz to arrive at a project that sees the goals of the City; he point- ed out that Hertz would not oppose a tax that was imposed fairly on other businesses, for example, our largest competitor if they were to pay the same tax - which now they are free from paying and the affect of the tax is to create a Hertz only tax. City Manager Wilson stated he is always intrigued by comments of people who never participated in discussions. He made reference to the discussions and resultant 101 Plan, and looked at uses that were less cumbersome and taking valuable land, i.e., freight forwarding and other uses. Shortly after that we came to a situation with a similar auto storage that wanted to take up land when our objec- tives were towards uses such as R&D and corporate uses, and then we proceeded to start to develop language recognizing these goals of were not used for dead storage that was taking away from the vitality, so staff proceeded with the ordinance at the Planning Commission. He was initially contacted on 10/21 asking the question, why are you proceeding with the ordinance, is there something they could do. So he had a couple of meetings, and on 10/27 met with George Corey, who wanted to understand the City's position and were we interested in a middle ground and would he act as a mediator to bring the two together. He mentioned the City was going to adopt the ordinance, but we would be willing to discuss - if there is a reason why we would not want to proceed, and it seemed to proceed with the Council direction, but we would continue discussions. George Corey arranged a meeting that included himself, Marty Van Duyn and the Director of Hertz. They asked why we were not excited to have them here and how should they proceed. We said we cannot tell you that, but we can tell you our concerns that generate in terms of dollars. They asked if there are other forms of activities Hertz could do that would not affect any change. Hertz AGENDA ACTION TAKEN 7. Motion - Continued. 12/9/98 Page 11 raised an example, that is, Hertz prepares a lot of vehicles tbr their fleet and if they could prepare some from a local business then they could be gen- erating revenue and they could just pay whatever to us, and that was not raised by the City and we were trying to explore what kind of activity for forms of light fleet business so of light fleet business so that the normal activity would go to S.S.F. Hertz then left us and we did receive a proposal, and Mr. Corey followed it up, and one of the parts of it was a willingness to proceed with development fees and he told them the only fee we had was the sewer fee and it may already have entitlement, so that was our thrust with the primary individual, Mr. Corey. As a City we were not seeking additional dollars or other avenues where they could generate a revenue source back to the City, etc. City Attorney Mattas stated the allegation made or suggestion, as it was in the letter, that the ordinance before Council is unlawful, and the City does not have the authority to adopt the ordinance before you this evening. The allegation that this is an ordi- nance to impose a tax is rejected by the language in the ordinance. Certain types of land use are subject and it is common in land uses and the analogy of an adult book store and regular stores are treated dif- ferently because of the impacts on the community and create different problems. The memo we sent to the Council identifies a couple of things and has discussions on fiscal impacts and he looks at the benefits for the land use and that can be an addi- tional tax for better esthetics. When you have cars that are going to be used at the Airport that have to be transported back and forth repeatedly, then there are roadway impacts. The Council can look at them and determine if there is a need for regulations. We don't have a Hertz, but have freight forwarders and their trucks are parked on the road. This ordinance would not prohibit it, but would give the Council opportunity to decide whether or not to allow it on a case by case basis. The Council basis. The Council should recall we had extensive discussions on whether they are a non-conforming use, and he made other analogies concerning fast food. We sent back their business license because we had requested additional information before the applica- tion can be processed - and that has not been done. AGENDA ACTION TAKEN 7. Motion - Continued. 12/9/98 Page 12 Attorney Finney stated there is quite a bit to be added to the record. First of all he can assure the Council that Hertz is not in the practice to pay taxes for the operation of business to come into the City, and the whole tenure of this did not originate with Hertz. He has spoken at length with George Corey on the description of this ordinance and its adoption discussions with Hertz who are his major partners. With respect to its defensib-ility, at least one of which is legitimate. There are inconsistencies in the arguments and he would point out the ordinance is described to help the City to capture revenue, and how is it that it does that, for the mechanism provid- ed, if you are a car rental and 70% or more vehicles occur at the site and you get to store the vehicles where the rental occurs all on one piece of property. If on the other hand you have an excess of 30% occurring, you are forced to bifurcate the property and the requirement that rentals be under freeways. He pointed out that the properties within the City are not dependent on the payment of a tax, but on the percentage of the transactions occurring in the City. The effect of that, on the one hand, is totally revenue based on the property, but another effect is the contradictions and the ordinance is the traffic impact because of the aesthetics, because of having rental cars located under freeways. That particular demographic location of storage of vehi- cles is in itself one of the number of transactions occurring in the City, so you don't have an ordi- nance addressing aesthetics. You have an ordinance addressing the number of transactions in the City, so it is a situation that serves two purposes and you need an ordinance not tied to those, but to the im- pacts or you need an ordinance that is dealing with property tax or sales transactions as a goal. So, what you find in these reasons for the ordinance of traffic impacts are undercut by the ordinance itself, because it doesn't deal with the impacts. As a final point, he would say, only the legal issue he sees posed, as he said at the onset, is the line between the ordinance and an ordinance that is imposed on business owners or property owners in the State of California and they believe this crosses the line and functions on a base of a voluntary tax or fee on a single company - Hertz. Mayor Datzman asked if Atty. Finney was not suggesting modifying the ordinance, and then it AGENDA ACTION TAKEN _ 7. Motion- Continued. 12/9/98 Page 13 would be okay. Atty. Finney stated there are certain things the City can do, but the way it is drafted right now - no. He feels the purpose is to impose a tax, if you are you need to do it directly. Discussion tk)llowed: Councilman Mullin would like Atty. Finney's remarks responded to point by point; Atty. Finney stated they believed this would be on the 12/23/98 agenda, but he would be happy to res- pond in writing; Councilman Mullin wants to see those comments responded to, both sides responded to; Atty. Finney stated they would commit to that within a few days; Councilwoman Matsumoto asked if this City is unique, do other cities have this type of ordinance; City Attorney Mattas stated it was unique in proximity to SFIA, but the land use is not unique; this is a fundamental difference of opinion; he fundamentally disagrees that this has the affect of a tax ordinance, but a land use ordinance; Mayor Datzman felt this is a simple and straightforward or- dinance; it is nine months since Hertz's interest in the S.S.F. property; in April Avanessian approached the Chief Planner, and he wrote a letter asking Hertz's intentions; Atty. Finney is concerned in paying $200,000 in tax to operate, when Hertz's competitors don't; there are ways to solicit revenue; Atty. Finney did not offer four or five ways; City Manager stated that autos sold could generate sales tax; Hertz liked the Shaw Road property; punitive land use fees; ordinance makes Hertz pay a tax to operate in S.S.F.; there are 20 + tenants on the property Hertz is interested in, and when the leases are up Hertz will tear down the building; there is an administrative building with maintenance and car sales; Hertz has eight locations in San Francisco. Motion by Mullin - To hold over the item to 1/13/99. Motion dies for lack of a Second. M/S Fernekes/Matsumoto - To adopt the ordinance. ORDINANCE NO. 1233-98 Carried by majority roll call vote, Councilman Mullin voted no, and Councilman Penna was not present. AGENDA ACTION TAKEN __LTEMS FROM COUNCIL GOOD AND WELFARE CLOSED SESSION 10. Closed Session, pursuant to GC 54956.9(a), existing litigation, Molieri vs. City of South San Francisco. RECALL TO ORDER: ADJOURNMENT: ITEMS FROM COUNCIL No one chose to speak. GOOD AND WELFARE No one chose to speak. CLOSED SESSION Council entered a Closed Session at 11:14 p.m. to discuss the item noticed. Mayor Datzman recalled the meeting to order at 11:45 p.m., all Council was present with the ex- ception of Councilman Penna, no action was taken and direction was given. M/S Mullin/Fernekes - To adjourn the meeting. Carried by majority voice vote, Councilman Penna was not present. Time of adjournment was 11:45 p.m. RESPECTFULLY SUBMITTED, City of South San Francisco APPROVED. Ja~Js L. DatzmanL&Y. or CII~ 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. 12/9/98 Page 14