Minutes - July 8, 2007
The meeting was called to order by Mayor Gomez at 7:00 P.M.
ROLL CALL: Councilmembers Present:
Maggie Gomez, Mayor
Judith A. Christensen
Michael P. Guingona
Carol L. Klatt
Patricia Martel, City Manager
Kerry Burns, Assistant City Manager
Rose Zimmerman, City Attorney
Maria E. Cortes, City Clerk
City Manager Patricia Martel presented “STAR” Awards to the following City Employees: Jim Walker, Angelina Ciucci, Clyde Preston, Clause Linkus, Linda Barnes, Sue Von Hagel, Laurie Giusti, Tom Goward, Dennis Bray, Mike Stallings, Thom Lazzerini, Carl Mole, George Montemayor, Raj Motipara, John Wheeler, Rudy Gonzalez and Joseph Curran.
CDBG Sub-Grantees: Rebuilding Together and North Peninsula Neighborhood Services
Presentations were given by a CDBG Rebuilding Together representative and Carla Molina, Executive Director of North Peninsula Neighborhood Services Center.
COUNCIL COMMITTEE REPORTS:
There were no reports.
APPROVAL OF MINUTES:
There were no minutes.
APPROVAL OF AGENDA:
It was moved by Councilmember Guingona, seconded by Councilmember Klatt and carried to approve the agenda.
Accepting a Grant from the Thelma Doelger Charitable Trust in the Amount of $5,000 for the Daly City Library’s Summer Reading Programs and to Appropriate the Funds to the Library’s Special Departmental Account
Resolution No. 07-124, Approving Receipt of a Grant from the Thelma Doelger Charitable Trust for the Daly City Library’s Summer Reading Program and Appropriation of Funds to the Library’s Special Departmental Account
Accepting a Grant from the Northern California Grantmakers Summer Youth Project in the Amount of $500 for the Daly City Library’s Summer Reading Programs and to Appropriate the Funds to the Library’s Special Departmental Account
Resolution No. 07-125, Approving Receipt of a Grant from the Northern California Grantmakers’ Summer Youth Project for the Daly City Library’s Summer Reading Program and Appropriation of Funds to the Library’s Special Departmental Account
Approving an Amendment to the Agreement with First Five Commission of San Mateo County and Appropriate $86,000 in New Funding for Our Second Home Program
Resolution No. 07-126, Authorizing Approval of Amendment to Agreement with the First Five Commission of San Mateo County and the Appropriation of Funding for the Daly City Peninsula Partnership Collaborative Early Child Resource Center – Our Second Home
Adopting Tow Service Agreement and Tow Service Fees for Fiscal Year 2007-2008
Resolution No. 07-127, Authorizing Approval of Tow Service Agreement and Tow Service Fees for Fiscal Year 2007-2008
Setting Time and Place of Public Hearing – re: Consider Citywide Inclusionary Housing Ordinance
Resolution No. 07-128, Setting Time and Place of Public Hearing to Consider Citywide Inclusionary Housing Ordinance, Hearing 09/10/07 – 7:00 P.M.
Accepting Notice of Completion for Traffic Signal Painting 2007
Resolution No. 07-129, Accepting Completion of Certain Project in the Department of Public Works (Traffic Signal Painting 2007)
Authorizing the City Manager to Execute Cooperative Agreement for the Mission Street Underground Utility District No. 14
Resolution No. 07-130, Authorizing Approval and Execution of the Cooperative Agreement with the Town of Colma, County of San Mateo and the Colma Highway Lighting District ( Underground Utility District No. 14)
Setting Time and Place of Public Hearing – re: Introduction of Ordinance Establishing “No Parking” Restrictions for Street Sweeping Throughout the City of Daly City
Resolution No. 07-131, Setting Time and Place to Consider Establishing No Parking Restrictions for Street Sweeping Throughout Daly City, Hearing 07/23/07 – 7:00 P.M.
Authorizing the City Manager to Execute the Ground Lease between the City and County of San Francisco and the City of Daly City for the Lease of the Vista Grande Tunnel
Resolution No. 07-132, Authorizing Approval and Execution of a Ground Lease between the City of Daly City and City and County of San Francisco (Vista Grande Tunnel)
Amending Traffic Regulations
Resolution No. 07-133, Establishing Traffic Regulations
1. Allow Parking on Both Sides of Hill Street, South of Albert M. Teglia Boulevard Except for the First 60 Feet along the East Curb
2. Relocate Red (No Parking) Zone in front of the Sewer Lift Station at 55 Belcrest Avenue
Authorizing Budgetary Adjustments:
Resolution No. 07-134, Authorizing Budgetary Adjustments and Appropriations for Fiscal Year 2007-2008
A. Appropriation of $5,800 grants/donations from Northern California Grantmakers, Thelma Doelger Charitable Trust, Denise Kelly and First National Bank for the Summer Reading Program
END OF CONSENT AGENDA
It was moved by Councilmember Klatt, seconded by Councilmember Guingona and carried to approve and adopt the Consent Agenda.
Joint Session with Redevelopment Agency
Mayor Gomez called to order the Joint Hearing of the City of Daly City Council and the Daly City Redevelopment Agency and upon roll call, Councilmembers Christensen, Guingona, Klatt and Gomez were recorded present. Councilmember Torres was recorded absent.
Disposition and Development Agreement with Dewey Land Company for Pacific Plaza Phase III
Mayor Gomez opened the public hearing by stating that the purpose of the joint hearing is to consider the proposed development through Disposition and Development Agreement (DDA) of the commercial project along Pacific Plaza for the Phase III office development. A fundamental component of the agreement is the sale of a certain agency-owned real property and possible future acquisition and sale of additional parcels within the Pacific Plaza development site.
Director of Economic & Community Development Terry Sedik stated that the City Clerk’s office has on file copies of the DDA and summaries of the DDA for public viewing. In February 1999, the Council approved Planned Development PD-54 for Pacific Plaza. The first Phase included the construction of an office building, the plaza to the north of that building and the parking structure to the south of the building. Redevelopment agency sold the property to Summit Commercial Properties, who proceeded with a portion of the second phase which included the theater and parking structure north to the cinema. The third phase is a second office building, which is similar to the first phase office building. Richard Dewey of Dewey Land Company approached the City with continuing the project when Summit Commercial surrendered control. The phase III building is 270,000 leasable/usable square feet, which will also include a 775-car extension of the Phase I parking structure along with a pedestrian bridge over Westlake Avenue.
Mr. Sedik stated that staff is asking Council and the Redevelopment Agency to consider two items: the DDA (selling of the land) and a council item which is a development agreement. Mr. Sedik proceeded to outline the business deal points of the DDA in a PowerPoint presentation. The DDA is between Redevelopment Agency and Dewey Land Company, which has agreed to purchase the land for a total price of $3,530,000. Staff believes this transaction is for fair market value. Benefits to the city include 950 to 1000 new jobs created in the city.
Mr. Sedik stated staff is asking the Council to adopt a resolution authorizing execution of the DDA, and separately, an ordinance to be introduced to approve the development agreement. They are also asking the agency board to approve and authorize execution of the DDA.
Richard Dewey, President/CEO of Dewey Land Company, introduced the project by stating that they were able to reassemble the team that built Phases I & II. However there is a new architect enlisted for Phase III – he introduces John McNaughlty, who was also responsible for the Kaiser project.
Annette Hipona, representing Original Daly City Protective Association, voiced concerns that this project is a “Sweetheart Deal.” Ms. Hipona stated that the city is offering another choice property for over $2,000,000 less than the city paid for it. The Redevelopment Agency currently owes the city $30,000,000. If the city received a better price on land sales, debt can be repaid and we would have money to hire staff to provide needed services. In addition, the city cannot assume additional unknown costs such as toxic cleanups.
Dana Smith, representing herself, questioned the presumption that underutilized land with buildings are worth more than cleared land. Ms. Smith could not understand how the city can lose money on a land investment in the bay area on properties that were purchased over a 30 year period. Ms. Smith pointed out that there were many unanswered questions in the appraisal – i.e. calculations on investment return is 33% less than was reported in the Examiner.
William Nack, representing San Mateo BTC, supported the DDA and development agreement for the Pacific Plaza Phase III project. According to Mr. Nack, the Pacific Plaza Phases I & II projects have provided hundreds of thousands of hours of work for their union workers. He is confident that Dewey Land Company will continue this partnership by using these highly skilled, decently paid construction workers to construct Phase III.
Mayor Gomez stated that there is a perception that the city practices giveaway deals when it comes to redevelopment property. However, the city utilizes an appraisal methodology, cost approach method and pointed out that the city has a very well seasoned staff.
It was moved by Mayor Gomez, seconded by Councilmember Klatt and carried to close the joint public hearing.
Councilmember Guingona stated that he takes comfort in the fact that the same people from the previous phases may be used in this next phase. Councilmember Guingona is in favor of the project because it will be the completion of the piece/the process the city began. He then made a motion to adopt the resolution.
Councilmember Christensen pointed out that the public speakers were against the price, not the project. She is thrilled with the structural changes which would improve the safety for pedestrians. However, she did not agree with the price in the appraisal. She pointed out that on page 9, the calculations based the average current rent of $2.63/sq.ft, while July 5th Examiner reported from CB Richard Ellis that the first quarter average lease was $3.19 and the second quarter is $3.60/sq ft. Also, in the section regarding comparable land sales & buildings, it doesn’t say what the land was zoned at. There is not enough information to know whether the appraisals are accurate. Councilmember Christensen stated that the city needs a fair market value and it should be able to make money on real estate in California from 1980 to 2007. She sees the project as too much of a giveaway and made a motion that the Council return to the appraiser and get more information.
Mr. Sedik stated that the staff does not try to second guess appraisers and that the hired appraisers were extremely competent. There are two trained appraisers in staff, but they are not used in order to arrive at an independent opinion. Regarding what was printed in the Examiner, Mr.
Sedik tends not to believe what he’s read in the newspaper, since the lease rate is not a single number throughout the county. Mr. Sedik along with the staff feel the lease rate in this appraisal is valid, since the city does not have a lot of class A office buildings.
Mr. Sedik stated that in most cases, land is given away by agencies at zero cost and a smaller piece of property will always command a higher price per square foot than a big piece. He sincerely believes that the appraisal firm made an honest set of adjustments (location, transit centers, slope, soil quality, etc made by appraiser) and presented a genuine value for this property.
Councilmember Klatt commended the dedicated staff for the hard work they have done and trusts them to present the correct information.
Mayor Gomez asked if there was a motion to adopt a Redevelopment Agency Resolution authorizing execution of DDA for Pacific Plaza Phase III and Dewey Land Co. for the proposed project.
Councilmember Christensen stated that while she does not distrust staff, she did not have enough information in the appraisal. She suggested council to hold a study session in order to discuss the matter in more detail.
It was moved by Councilmember Guingona, seconded by Councilmember Klatt and carried with Councilmember Christensen voting “No” to adjourn the Redevelopment Agency meeting until later.
It was moved by Councilmember Guingona, seconded by Councilmember Klatt and carried with Councilmember Christensen voting “No” to adopt the following resolution:
Resolution No. 07-135, Approving the Execution of a Disposition and Development Agreement (DDA) Between the Redevelopment Agency of the City of Daly City and Dewey Land Company and Other Findings in Connection Therewith Pacific Plaza Phase III Project
End of Joint Session
Adopt Revised Boundary and Completion Dates for the Mission Street Underground Utility District No. 14 and Financial Assistance Program
Public Works Director Peter Gleichenhaus recommended the Council to adopt the revised boundary and work completion dates for the Underground Utility District No. 14 along Mission Street, County Street and Valley Street and approve a financial assistance program for affected property owners.
Mr. Gleichenhaus stated the Council had originally set July 9, 2007 as the date for a public hearing to consider the recommended action. The Council established the district in 1996 by resolution, which resolved to install conduits and modify utility service panels to accept underground service and set June 30, 1996 as the utility pole removal date. The town of Colma has obtained the information needed and has scheduled to award a construction contract on this project this month.
Mr. Gleichenhaus stated the boundary of the City’s utility underground district needs certain amendments to better accommodate utility pole termination anchors, prevent the spanning of driveways and reduce visibility of remaining overhead wires from Mission Street. The streetlights will be replaced with new aluminum pole mounted streetlights to meet current City standards.
Mr. Gleichenhaus stated funding is primarily to be provided by the utility companies. The City has sufficient funds available in its account for the City’s streetlight replacement cost, estimated at $109,000. Property owners will have to complete and pay for the underground utility connection work on their property. The cost to homeowners will be between $1500 and $3000 per home. To reduce the financial account, staff is proposing Council to approve the assistance programs, which would allow for grants of up to $1,000 for income qualifying seniors and low-interest loans of up to $3,000 for owner occupied income qualifying homeowners.
Mr. Gleichenhaus stated staff recommends the Council approve the revision of the district boundaries, amend the utility pole removal date to June 30, 2008 and the completion of utility conversion readiness improvements to December 31, 2008, and also approve financial assistance of up to $3,000 for income qualifying homeowners in the District.
Lucille Molini, a resident/homeowner on Valley Street for over 53 years, voiced her opposition to the undergrounding project, due to the financial burden that would fall on her and fellow residents in the area.
Maureen Santa Maria, representing her elderly and disabled parents, is also opposed to the project since her parents live in the affected area and are living on a fixed income.
City Manager Patricia Martel stated that delaying action will imperil the project as the city has already made a number of commitments. However she will work with the property owners to see if the city can extend any other CDBG funds to the affected people. Ms Martel also assured that the city will provide administrative as well as financial assistance to accommodate these residents.
It was moved by Councilmember Guingona, seconded by Councilmember Klatt and carried by unanimous roll call vote to adopt the following resolution:
Resolution No. 07-136, Adopting Revised Boundary and Completion Dates for Mission Street Underground Utility District No. 14 and Financial Assistance Program (Along Mission Street from East Market Street to the Southern City limit, along County Street from East Market Street to Valley Street, and Valley Street from County Street to Mission Street)
AWARD OF BIDS/CONTRACTS:
Lake Merced Boulevard Bike Lanes
Public Works Director Peter Gleichenhaus recommended the Council affirm the CEQA and award a construction contract to Pavex Construction Company of San Jose in the amount of $824,185 for the project.
Mr. Gleichenhaus stated the lowest bid received was that of Pavex with $824,185, lower than the engineer’s original estimate at $835,000. Pavex, which has been in business since 1900, holds a contractor’s license and has good references from the City of Milpitas and County of San Mateo.
Mr. Gleichenhaus stated the project is scheduled to begin in August 2007 with completion in December 2007. The total estimated construction cost for this project is $980,000 and the project is eligible to receive up to $748,000 from various grants for construction. Staff recommends the Council affirm the CEQA determination, accept all bids and award a construction contract to Pavex in the amount specified.
It was moved by Councilmember Klatt, seconded by Councilmember Guingona and carried by unanimous roll call vote to adopt the following resolution:
Resolution No. 07-137, Authorizing Execution of a Construction Contract with Pavex Construction Company for Lake Merced Boulevard Bike Lanes
Chief of Police Gary McLane recommended the Council approve a bid award for the low bid of MetroMobile Communications in the amount of $43,062.54 for motorcycle equipment. This
is part of the ongoing OTS grant that we’re administering. Chief McLane pointed out that there is no fiscal impact to Daly City since it is all covered by OTS funds.
Discussion ensued with Councilmember Christensen asking whether the City had worked with this company before and if so, whether they provided quality work. Chief McLane answered yes to both.
It was moved by Councilmember Christensen, seconded by Councilmember Klatt and carried by unanimous roll call vote to adopt the following resolution:
Resolution No. 07-138, Authorizing Purchase of Five Police Motorcycles
Waiving Formal Bidding Process to Authorize the City Manager to Negotiate and Execute a Construction Contract and Approve Funds for the Emergency Repairs at the War Memorial Community Center and John Daly Library
City Manager Patricia Martel recommended the Council to waive the formal bidding process, approve the transfer of $150,000 from capital contingencies and authorize the City Manager to negotiate and execute a “not-to-exceed” construction contract for the emergency repair of concrete floors at the War Memorial Community Center and John Daly Library.
Ms. Martel stated the polished concrete floors in the entrances, lobbies and several adjoining rooms on all three levels of the War Memorial Center and John Daly Library are severely cracked and present an unacceptable aesthetic quality, requiring us to cover these surfaces prior to completion of the building and occupancy. Thorough examination of various methods for covering the concrete floors indicate that high pressure laminate flooring manufactured by Wilsonart International, Inc. is best suited for placement over all the polished concrete floors. The Public Code 22050(a) permits a public agency to procure necessary equipment, services and supplies for emergency repairs without competitive bidding. Council is required under the Public Code to make a finding that the emergency will not permit a delay, and that the action is necessary to respond the emergency.
Ms. Martel stated staff has determined that Wilsonart International, Inc. is the only company that has the technical expertise to conceal the damage to the floors. This is a highly specialized service and staff believes that the nature of the damage and floor quality is such that it meets the exemption as a sole source and specialized services.
Ms. Martel stated that pursuant to the Contract Code Section, this situation does satisfy the requirements to waive formal bidding on this project and to allow the city to move forward with negotiating an emergency contract. The city has sufficient funding which will cover all the necessary work.
Councilmember Christensen stated that the City will be pursuing a refund on a portion of the money that was spent on the original flooring due to the errors.
It was moved by Councilmember Klatt, seconded by Councilmember Christensen and carried by unanimous roll call vote to adopt the following resolution:
Resolution No. 07-139, Finding that the Conditions at War Memorial Community Center and John Daly Library Warrant Emergency Repairs to Waive for Formal Bidding Requirements; that such Repairs are Categorically Exempt (CEQA); and Approve Funds to Complete Emergency Repairs at War Memorial Community Center and John Daly Library
Introduction of Ordinance for Proposed Development Agreement with Dewey Land Company for Pacific Plaza Phase III
Director of Economic and Community Development Terry Sedik stated that California Government Code 65864 -65869.5 allows cities to enter into contract in a development project where the city guarantees certain things and the developer guarantees certain things. Following that template, Dewey Land Company requested to update and adopt a new development agreement. Dewey Land Company has pledged to guarantee a market value for assessment purposes of $54,000,000, and agrees to support staff’s request for the value to be increased should the valuation from County Assessor come in lower. Mr. Sedik presented the seven terms of the proposed Development Agreement which included land value, parking and city development fees. Staff recommends the City Council introduce the proposed Ordinance for the Development Agreement for Phase III of Pacific Plaza.
It was moved by Councilmember Klatt, seconded by Councilmember Guingona and carried that Ordinance No. 1333 be read by title only by the City Attorney.
Councilmember Gomez introduced the following ordinance:
Ordinance No. 1333, Approving and Authorizing Execution of a Development Agreement between the City of Daly City and Dewey Land Company, Inc.
PUBLIC APPEARANCES/ORAL COMMUNICATIONS:
Rollie L Lavarias, representing Daly City Quezon City Sister City Committee, invited the Council to the FilAm festival at Serra Bowl Grounds. Mr. Lavarias thanked Councilmembers Klatt and Guingona for their support.
Ray Satorre announced that the 13th annual FilAm Friendship celebration would take place later this month on July 21 and July 22.
There were no appointments.
Councilmember Christensen stated there has been confusion in the past at Planning Commission and City Council meetings about the public’s right to speak which is covered in the Brown Act. We should discuss this as an item at a future a Study Session meeting.
There were no reports
City Manager Patricia Martel announced that the deadline for the General Plan Updates Steering Committee was closed last month on June 29. Staff has been reviewing the applications to make recommendations to Council at a later Study Session. The city is extending the deadline for another two weeks for business representatives, since there are still 4 business slots available.
Mayor Gomez asked for order during the meeting.
City Clerk Maria Cortes announced that there was a notice of cancellation for tonight’s closed session.
MARIA E. CORTES
Approved as submitted, this 22nd
day of October , 2007.
MAGGIE A. GOMEZ