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HomeMy WebLinkAboutMinutes 2014-05-14 @7:00 o�zxS�F MINUTES CITY COUNCIL -- _o CITY OF SOUTH SAN FRANCISCO REGULAR MEETING MUNICIPAL SERVICES BUILDING COUNCIL CHAMBERS 33 ARROYO DRIVE SOUTH SAN FRANCISCO, CA WEDNESDAY, MAY 14, 2014 7:00 P.M. CALL TO ORDER TIME: 7:00 P.M. ROLL CALL PRESENT: Councilmembers Addiego, Gupta and Normandy, Vice Mayor Garbarino, Mayor Matsumoto. ABSENT: None. PLEDGE OF ALLEGIANCE Led by Mayor Matsumoto Mayor Matsumoto introduced the new City Manager, Mike Futrell, giving a resume of his experience. Mr. Futrell was hired after an extensive recruitment process and Council was happy to have him on board and excited to see what was in store for the future of the City. AGENDA REVIEW City Manager Futrell stated item 11 would be heard at the beginning of Administrative Business. PRESENTATIONS • Proclamation recognizing May 18- 24 as National Public Works Week accepted by Brian McMinn, Director of Public Works. Presented by Councilmember Normandy and accepted by Brian McMinn, Director of Public Works who acknowledged Public Works staff. • Proclamation recognizing May 18- 24 as Emergency Medical Services Week accepted by Travis Nuckolls, Deputy Fire Chief. Presented by Vice Mayor Garbarino and accepted by Travis Nuckolls, Deputy Fire Chief. • Presentation on upcoming gas line work in South San Francisco presented by Scott Hart of PG&E. PG&E Government Relations representative Scott Hart provided information on the expected construction and timeline for the pipeline replacement project. Specifics on the locations and construction times were shared, as well as the noise and dust mitigation efforts PG&E would be employing. Councilmembers each expressed their concerns about the project's impact on residents and wanted to keep it minimal. Specific comments and requests included: ensuring signage related to traffic detours and businesses operating during construction were prominently placed; the timing of streetlights was addressed; safety concerns at the Colma Creek/Hillside Boulevard pedestrian crossing; adjusting hours of construction if needed; restoring the roads to the same condition post construction; concerns about PG&E recordkeeping and mapping of pipeline locations and shut-off valves. Councilmember Addiego expressed his displeasure with the disruptions PG&E had caused in the City already, referencing other locations where PG&E easements were left blighted from neglect. He further stated that PG&E needed to rectify the broken window theory they've created in those places. Councilmember Addiego suggested that Mr. Hart take these concerns up the chain of command, or perhaps Mr. Hart's manager, Carlo Lomax should come to a Council meeting to hear them himself. PG&E Departmental staff and Mr. Hart would ensure that each of Council's concerns would be addressed. • Presentation on Centennial Way enforcement action given by Deputy Chief Mike Brosnan. Deputy Chief Brosnan provided detail about incidents leading up to the enforcement action and introduced members of the Department that participated in the operation, Sargent Toscano and Officer Sariotti. Chief Brosnan detailed the operation that resulted in the arrest of two suspects. He concluded the presentation by encouraging citizens to employ safe practices when walking trails. Councilmembers thanked Sargent Toscano, Officer Sariotti and the entire Police Department, commending them for the excellent work. PUBLIC COMMENTS Hon. Sue Digre, Director of Family Services for Parca and City of Pacifica Councilmember, thanked staff for listening to families with special needs, calling South San Francisco a model for other cities to emulate. Edith Arias, resident and mother of Ulysess Arias, highlighted the importance of increasing opportunities for young adults with special needs in the community. Mayor Matsumoto assured Mrs. Arias that the City is supportive of her request, mentioning the special needs fair and the Park&Recreation Department's summer camp. REGULAR CITY COUNCIL MEETING MAY 14,2014 MINUTES PAGE 2 Serena Ip, Business Coordinator at Housing Leadership Council of San Mateo, thanked the City for their participation in the seminars they recently hosted. Fundraising results were successful thanks in part to the basket provided by the City. She thanked Councilmember Normandy for attending and staff that helped make things run smoothly. Mayor Matsumoto stated the basket was called Uniquely South San Francisco and she thanked local businesses for their contributions. ADMINISTRATIVE BUSINESS 11. Motion to appoint Paul Formosa, Buenaflor Nicholas, and Ray Yoschak to the respective Business/Resident Representative seats on the Conference Center Authority Board effective May 14, 2014 with term expiration dates of March 27, 2018; to appoint Linda Parenti to the Housing Authority effective May 14, 2014 with a term expiration date of March 31, 2018; and to appoint Melinda Murillo to the Housing Authority Tenant Commission effective May 14, 2014 with a term expiration date of March 31, 2015. (Anna Brown, Deputy City Clerk) Council discussed how this was not the normal process for appointing a boardmember,but due to a full Council calendar and lack of additional applicants, the decision to appoint without interviews was made. Councilmember Addiego clarified that he preferred interviews regardless of the number of applicants, because that was the opportunity Council had to address any concerns with a board member/commissioner. Mayor Matsumoto stated it would not be the norm and that some of these positions were critical because they were going through critical issues and these people bring a lot to the table. She assured him that he was free to abstain. She also noted a current recruitment was underway for the Planning Commission, with closing date of June 6. Motion — Councilmember Addiego/Second — Vice Mayor Garbarino: to appoint Paul Formosa, Buenaflor Nicholas, and Ray Yoschak to the respective Business/Resident Representative seats on the Conference Center Authority Board; Linda Parenti to the Housing Authority and Melinda Murillo to the Housing Authority Tenant Commission for the stated terms. Unanimously approved by roll call vote. 8. Resolution 56-2014 confirming South San Francisco Scavenger Company rate increase for Fiscal Year 2014-2015. (Joe Martin, Senior Financial Analyst) Senior Financial Analyst, Joe Martin summarized the staff report,providing information on the rate increase and methodology used to arrive at the requested rates. Rates in surrounding cities were checked every three years and in the intervening years rates are set at 80 percent of the Consumer Price Index ("CPP'). The next survey would be next year. Doug Button, President of the South San Francisco Scavenger Company, and Paul Formosa, Chief Financial Officer, were present to answer any questions. The Company reported on capital investment and sustainability initiatives, including the food waste/yard waste program, which would come online in August. REGULAR CITY COUNCIL MEETING MAY 14,2014 MINUTES PAGE 3 Council expressed enthusiasm for all of the innovative programs the Scavenger Company has been implementing, noting that customers would see a savings of approximately 20 percent as a result. Questions regarding fat oils and grease ("FOG") collection and the City's current diversion rate were addressed. Council also offered suggestions for the Company to increase its social media presence. Motion—Vice Mayor Garbarino/Second—Councilmember Gupta: to approve Resolution No. 56-2014. Unanimously approved by roll call vote. 9. Motion to accept Housing Element Annual Progress Report. (Catherine Barber, Senior Planner) Senior Planner Catherine Barber reviewed the Housing Element Annual Progress Report and stated staff's recommendation to accept the housing element in their progress report and authorize transmittal to the California Governor's office of Planning and Research and California Department of Housing and Community Development ("HCD"). She referred to an attachment in the staff report called South San Francisco Housing Accomplishment Brochure to highlight some things. Planner Barber also responded to Council's questions regarding income levels set by the Department of Housing and Urban Development and the City's affordable housing levels. Motion—Vice Mayor Garbarino/Second—Councilmember Gupta: to accept the 2013 housing element annual progress report authorizing transmittal of the California Governor's Office of Planning and Research and the California Department of Housing in community development and approve the attached information brochure. Unanimously approved by roll call vote. 10. Discussion regarding regulation of check cashing businesses and payday lenders; and consideration of Youth Leadership Institute Resolution 5 7-2 0 14 regarding payday lending and check cashing businesses. (Tony Rozzi, Associate Planner) Associate Planner, Tony Rozzi summarized the staff report following up on Council's request to better understand regulator options available with relation to check cashing businesses or payday lenders. He covered the existing state laws regulating check cashing businesses, South San Francisco's zoning ordinance requirements, regulatory options of neighboring cities and accepted best practice, and possible advocacy and education outreach strategies. He then presented three common regulatory options that Council could consider, adding that any new zoning regulations would only apply to new or relocating check cashing businesses. He requested direction from Council for pursuing the presented options and he stated there was a nonbinding draft resolution attached to the staff report put forth by the Youth Leadership Institute("YLI"). YLI members explained their opposition to check cashing and payday lending businesses and why they drafted the resolution. They were hoping that Council would support their efforts by signing the resolution. Councilmembers expressed their support for the resolution and pursuing allowable regulatory actions. Councilmember Addiego asked Planner Rozzi about any state legislation placing caps on interest rates set for these short term loans. Planner Rozzi stated that there was advocacy for a cap at 36% on a two-week payday loan, annualized which was substantially less than the 460% that might annualized. REGULAR CITY COUNCIL MEETING MAY 14,2014 MINUTES PAGE 4 Each Councilmembers expressed unfavorable feelings about these establishments, characterizing them as predatory and perpetuating the cycle of poverty. They hoped to address the proliferation of these establishments through zoning regulations and wanted to pursue this as an opportunity to partner with local banks like San Mateo Credit Union in establishing financial literacy programs for local schools and families. Councilmember Addiego stated he was not as concerned with the check cashing businesses because he understood them as a service provider for people without checking accounts. He understood the rates as being 3%. Planner Rozzi stated that it was 3% for a government or payroll check, up to 12% if it was a personal check. He offered further clarification on the differences between primary check cashing, incidental check cashing and pay day loan establishments. City Manager Futrell believed staff had adequate direction from the Council on what information and what kind of regulatory structure they would like to have brought back for further consideration at a subsequent meeting. For tonight, they do have the YLI resolution from the packet for consideration of further regulations within their scope. Motion - Commissioner Addiego/Second — Vice Mayor Garbarino: to approve Resolution No. 57-2014. Unanimously approved by roll call vote. PUBLIC HEARING 12. Appeal of Planning Commission's Condition of Approval C.III, related to the imposition of East of 101 Traffic Impact Fee, included as part of the approval of the Park SFO Expansion project at 195 North Access Road in the Mixed Industrial (MI) Zone District, in accordance with SSFMC Chapter 20.570." (Catherine Barber, Senior Planner) Senior Planner Catherine Barber summarized the staff report, providing background in the project of the subject property and explaining specific details of the appeal. At issue was the determination of fees calculated using the information provided at the time of the initial application and the information had been submitted as a part of the applicant's appeal. Planner Barber also noted that Park SFO did not meet the criteria for exemption and therefore staff was not authorized to exempt or reduce the East of 101 impact fee. Staff recommended Council adopt a resolution adopting the initial study mitigated negative declaration, deny the appeal and uphold the Planning Commission's approval of the project, including imposition of condition of approval of C3 related to the East of 101 impact fee. Public Hearing Opened: 9:30 P.M. Robert Simms, owner and operator of Park SFO, spoke about his disagreement with the fee calculation and methodology used to conduct the count of spaces. He went on in detail about how he arrived at the fee he should pay. REGULAR CITY COUNCIL MEETING MAY 14,2014 MINUTES PAGE 5 Mr. Simms' Attorney, John Fugol addressed issues his client had with the traffic study conducted by Crane Associates as there were certain things unique to Park SFO's operation. He explained a very low feed rate for the parking structure. In the CEQA document and traffic study approved by staff, it was stated that the new project had no impact on the surrounding intersection, which they felt was a strong argument for them to be relieved of the traffic impact fee or have it mitigated. Additionally, Mr. Simms took issue with the peak hours of trips, explaining Park SFO's peak hours were in the evening and shown to generate an additional 47 trips with the expansion. He stated they were showing a net gain of 455 spaces whereas staff had shown 1200 net gain, and the 455 spaces added up to a total of 19 new trips as opposed to 47. City Attorney Mattas asked to pause so he could share information from a conversation he just had with Mr. Simms. At this point, Mr. Simms would agree to, if Council agreed, that the number of peak hour trips would be no less than 19 and no greater than 47. Mr. Sims, the City Manager, his office, and the two traffic engineers would work to a number that both parties agree to. If the Council was okay with that, Mr. Simms would agree on the record and they could proceed. Attorney Mattas stated if Council were to act on this tonight, they could either delegate to staff within that range or approve it with a condition that says it is going to be in the range of 19-47 and staff and applicant will work together and report back to the Council. This would allow the project to move on to the next stages out of the shadow of the moratorium, and he asked Mr. Simms if he was agreeable to this option. Mr. Simms said he was in agreement and would like the opportunity to bring it back to Council. Council expressed that larger questions still loomed but there needed to be a formula implemented that would have them arrive at numbers that were correct, equitable and defendable. Mayor Matsumoto stated she would like to continue this item and have staff go over concerns with Councilmembers so they could come back and work with the applicant. City Attorney Mattas explained that the moratorium being heard next would affect Mr. Simms application unless it was exempted. He suggested that Council consider the item, take action on Mr. Simms' application, and still have the opportunity for further discussion about the fee. If both Council and Mr. Simms agreed, they would modify the East of 101 fee to say the fee shall be set at no less than 19 PM peak hour trips nor higher than 47 PM peak hour trips. He advised Council that this type of resolution removes the issue of it ever being characterized as a waiver. The matter could still be considered for further discussion and input from engineering staff. He stated that modification of the fee calculation would not change the cost of the improvements, just the spread. Public Hearing Closed: 10:00 P.M. Motion—Vice Mayor Garbarino/Second—Councilmember Gupta: to continue the public hearing to the meeting of May 28, 2014 and direct staff to continue working with Mr. Simms to come to a resolution that could be presented and explained to the Council for the next meeting. Unanimously approved by roll call vote. LEGISLATIVE BUSINESS 12. Adoption of an Interim Urgency Ordinance of the City of South San Francisco making findings and establishing a moratorium on the issuance of use permits, building permits, or any other applicable entitlement for (1) Automobile/Vehicle REGULAR CITY COUNCIL MEETING MAY 14,2014 MINUTES PAGE 6 Rental uses, including Car Sharing uses, city-wide and (2) Private Parking uses in designated zones, west of US Highway 101. (Billy Gross, Senior Planner) Senior Planner Gross addressed various types of short term car sharing businesses, similar to car rentals, mentioning different uses, locations, types of permits they would need, and the approval body. He stated that the current zoning ordinance did not contemplate newer business models and pointed out some of the zoning variations allowed in different parts of the City. Based on the proposed ordinance, staff recommended Council waive reading, investigate and adopt by a 4/5 vote the ordinance that establishes a citywide moratorium on the establishment of auto vehicle rental uses, including car sharing, and a moratorium on the establishment of private parking uses in designated zones West of 101. Mayor Matsumoto stated she had two speaker cards, assuming it was on Flight Cars. She asked if Council wanted to deal with the exemption first and allow Silver Car to leave. City Attorney Mattas stated if Council wished to take public testimony, staff recommended that they take it now and then bring the whole discussion back to Council. Mike Johnson of Flight Car stated he was surprised at this late action, mentioning working with the city since late last year, looking at different sites appropriate for their business. He said they had an application on 323 South Canal since February. They were on the calendar for a conditional use permit hearing for tomorrow and it was late last week that this development came up as a surprise. He felt there was a win-win opportunity for their business and the city acknowledging that despite being a different model it was doing extremely well. The people who are giving them their cars are getting a significant amount of revenue meaning a lot of that is going back to the community. Johnson highlighted that they are cutting edge and could attract other entrepreneurs to the city. City Manager Futrell stated they did receive a written proposal, and that staff needed more time and was unable to provide a recommendation one way or the other. With the 45 day moratorium, they will continue conversation and form a recommendation. Mr. Johnson stated that the impact of Flight Car was minimal because it wasn't a big project and doesn't impact El Camino Real, any neighborhood commercial center or any residential area. Their concerns were that a 45-day moratorium would just be a 45-day delay. He asked that they delay this action if not indefinitely Mayor Matsumoto asked the City Attorney to walk them through it. City Attorney Mattas stated they have a revised ordinance before them, as indicated in Mr. Gross' staff report, which includes an exemption relevant to Silver Car's application, a traditional rental car business. In response to comments by Mr. Janz, California case law still obligates public agencies to process the application while under the moratorium and continue to have discussions with Flight Car. Staff recommends proceeding with the moratorium, needs adequate time to analyze and discuss and be able to brief the Council about options. He concluded that, if Council was desirous of moving forward, staff recommends they waive reading, adopt the ordinance with the revised version this evening. REGULAR CITY COUNCIL MEETING MAY 14,2014 MINUTES PAGE 7 Vice Mayor Garbarino noted Mr. Johnson talked about revenues for the city, but if there is no sales tax, he asked what revenues he was referring to, mentioning possibly license fees. City Attorney Mattas stated it would probably have to fall under a development agreement and would be a contractually imposed, negotiated continuing fee. This new business model requires public agencies to develop a new tax, which is subject to the various propositions and voter requirements. City Attorney Mattas stated they could do it earlier than 45 days if they wanted to and that extending it requires notice of public hearing. Councilmember Gupta asked how long staff felt it would take for staff's study and subsequent recommendation to Council. City Manager Futrell stated that he would hazard a guess that they could get it done in a few weeks, saying they were struggling to understand their proposal and ramifications enough to know if they agree or not. Futrell explained that staff would be very comfortable with having the 45 days giving them adequate time and pushing it out beyond Mr. Simms' issue which will come up in two weeks. Senior Planner Gross responded to Councilmember Normandy's question about Silver Car by stating that when the ordinance was created with car rental uses in mind, it was looking at the East of 101 areas where most of those businesses were located and where Silver Car was looking to locate. It was the same impacts that they were used to seeing and thus comfortable in supporting the exemption in this case. Councilmember Normandy stated that the original emergency moratorium had to do with car rentals. She was uncomfortable with knee jerk reactions on emergency moratoriums when there was an exception to the rule. Councilmember Addiego thought Mr. Johnson had made the most eloquent, compelling argument. He thought he understood the last comments by the City Attorney and it is all about the money, it's the tax mechanism. He knows there is a clock running and asked about their progress. Senior Planner Gross thought their application was deemed complete in late April or May. City Attorney Mattas stated that from memory, and since this was exempt, they have to have action by the city, even Planning Commission action, because on CUP, the Planning Commission was final unless appealed. Action was required within six months (mid-April) after CEQA is complete, otherwise, they can have a deemed approval. Councilmember Addiego then asked about the moratorium and Attorney Mattas stated that you want a moratorium unless you simply want to extend. Councilmember Addiego thought the moratorium was an over reach. Senior Planner Gross pointed out how certain businesses can meet the requirements in a specific area and the city would have no discretionary approvals of any kind and allowances in the REGULAR CITY COUNCIL MEETING MAY 14,2014 MINUTES PAGE 8 ordinance that prevents the city from saying no to the uses if they meet certain standards and the moratorium gives them pause. He added that with private parking West of 101, the pause allows them to do some different definitions to break out the uses they didn't perceive before. City Manager Futrell stated that the Council had earlier passed regulations saying there were certain areas of the city where they didn't want rental car agencies, laid out in the map. Flight Car or other like entities under our current zoning ordinance could go locate there even though the city had decided it was not good for the community to have rental car agencies in those spots, and that was what they were really trying to address, the land use planning which says rental car agencies don't belong in certain areas. Because of the nature of their model, they were able to define themselves as not a rental car agency even though that was how they make their money. They were trying to address that inconsistency, not just for Flight Car, but for the next competitor. City Manager Futrell pledged that they will work through this as quickly as they can to make sure that the land use planning is correct. Mayor Matsumoto stated, so she could understand their business model, someone flying out of SFO comes in, brings their car to you, and you limo them over to the airport. Then, their car is stored on their lot until somebody deems that they want to use it. She stated that he made the statement that the city will see additional revenues, people are going to shop and buy, and she asked how that works. Mr. Johnson explained the more cars dropped off, the higher the revenue for the city, whether parked or not, and that they are agents for the car owners in facilitating a transaction and they take a fee. Vice Mayor Garbarino understood that they weren't using a fleet of cars, but they were using a car, whether it was a fleet, one car or three cars, and renting out an automobile. He asked what makes that different from Avis, Hertz,National or any other. Mr. Johnson stated that they don't own them and that there are limits of what they do. They are like car rentals, car parking, and car sharing combined thus distinguishing them from the others. Vice Mayor Garbarino stated that he still sees it as a car rental. Mayor Matsumoto stated that it goes to trust. She said she wasn't involved in Millbrae but one of the issues in Millbrae was that Flight Car set up business without a business license. She understood that they came to South San Francisco and started doing business without a business license. She stated that they want the city to be innovative, and she asked if they were involved in South San Francisco, why they started a business without a business license. Mr. Johnson explained that they started the process the week of February 9 when they determined the site on 240 Dollar Avenue would be a good interim solution. He stated that when they initially worked with the city, they were told they would need a conditional use permit to get the 323 South Canal Street property approved. They looked at Dollar Avenue and explained the convoluted process that evolved because they hadn't realized the owner of the site did not have a business license. They ultimately spent a lot of time and money helping to resolve all the issues and were assured that the problem was not theirs but the original tenant. He mentioned that city staff were very helpful and had assured them that they would have the business license for 323 South Canal long before they needed it. REGULAR CITY COUNCIL MEETING MAY 14,2014 MINUTES PAGE 9 Mayor Matsumoto asked him why he thought it was okay to do business and not take out a license. She stated that they also referred to themselves as car rental in his statement and she thought this was car sharing. She was confused. She then stated that she talked with Mr. Danz, they knew the condition, they came to her because of their past relationship, stating that it was more than a week ago. She stated that it got to be very cumbersome, and mentioned that he said he only knew a week ago, yet they have been working on this more than a week ago. She was concerned when Mr. Janz came to her because it had to do with the firewalls and the owner was not doing certain things, etc. She then spoke to the City Manager who told her to turn it over to him and he would get involved,but she stated that it was more than a week ago. Mr. Johnson explained that as soon as he heard that there were greater issues with the building department, he engaged Mr. Janz and that was when he contacted her. He did not know that the building concerns resulted in the master tenant not having a business license. He only knew that the city was working through some issues and they did not want to generate any new business license until the issues were resolved. Regarding car rental, he was saying the office use was permitted for car rental and for car parking, and they approached the city with their use and asked if that was okay in that space. Councilmember Gupta stated that he had been listening to the dialogue, and he was trying to focus the issues on what started the whole discussion. He summarized his understanding and asked for corrections. He stated that it was a new company, a new concept, its innovation that he felt foretold the future. He believed there would be a lot more businesses in the same direction. He stated that, whether they like it or not, they have to learn more about how to do it in a fast, efficient way with more proposals besides theirs. He stated that they were still looking at it and learning more as he talks about it, but were not anywhere close to his level of thinking about the business and how he will calculate revenues. He felt that it was not a question that they don't trust him or that he didn't like innovation or for South San Francisco to be a leader in the car sharing business,just like Genentech and Biotech. At the same time, he didn't want to walk into it without being in resonance with him, with his plans and his future and how they will be involved in their development, how much they can look at in terms of how citizens will look at his business. He understood that a moratorium sounded like a bad thing, but he thought it was more like breathing space, where they can sort out the details from the point of view of his idea of his company and they have their idea for the city, with accounting, planning, etc. He stated that some of those things need to be worked on whether they like it or not. It is government. He understood how in private business he looked at the delays as time wasted, but he has to appreciate that in order to work with them, they have to catch up and understand. He was very encouraged by his application and choosing South San Francisco and he was told it would take a week to ten days. He asked him, although it affects his plan and scheduling calendar, to afford the City some time to make a knowledgeable decision on it. Because Council wants to do something for him in a systematic and organized way, he stated that very reluctantly he has to ask him to give some time. Councilmember Normandy stated that she didn't know Flight Car was in South San Francisco until it made it on the Daily Journal in April. She asked confirmation whether he was working here in February or not. Mr. Johnson replied that they put in an application in February. Councilmember Normandy asked when they were operating in Dollar and Mr. Johnson sated that it was late April. REGULAR CITY COUNCIL MEETING MAY 14,2014 MINUTES PAGE 10 Councilmember Normandy asked, as a businessman and professional, would he not assume he needed a business license rather than work and do business under someone else's license. Mr. Johnson stated that he knew he needed a business license. The entity had been working since February to get it. He also believed there were some mitigating circumstances not related to their application that were holding them up. Unfortunately for their situation, they had to look at this and they had a timeline to get out of where they were because the lease was up. They had every reason to believe that this would resolve itself within a matter of weeks. They had a huge window beyond that to be able to get things resolved. They didn't leave other options open because their dialogue with the city was going so well. They have gotten green lights from every department except the building department and then it became that there were issues with how the building was classified. City Manager Futrell stated that, unless there were further questions for staff, he would make a closing comment. He reassured Council that they were very business friendly. At the very first meeting they had together, he told Mr. Johnson that he thought it was very innovative and cutting edge, and exactly the kind of innovation needed in South San Francisco but he also challenged him at that moment that he was operating without a license and he knew it. He stated that staff bent over backwards during that 36 hours, going to the site with him, doing things that they should probably do for every business applicant but working after hours to get him a business license so he could operate before the moratorium might go into effect. No one on his side of the table wanted to have a moratorium but he didn't have a business license and would effectively be out of business. He stated that they worked hard to help him get through those hurdles and operate legally in the city hopefully during the 45 days where they can take the strategic pause, understand his proposals to them and the ramifications across the entire enterprise. On behalf of staff, the 45 day grace period was requested and he asked that they recognize that they were still going to be operating every moment of every day at a site in South San Francisco which collectively, they all worked very hard in the past five days to make happen. Mr. Johnson reiterated that he was encouraged by the way City Manager Futrell and his team worked with them and understood what they were doing. Mayor Matsumoto thanked the City Manager for getting said in three minutes what they took two hours discussing. She thanked him for bringing that up because she was under the impression that they were not in business but he has a license and operating. The moratorium, in effect, doesn't affect him. Councilmember Addiego stated that the need for the moratorium washed away when Mr. Mattas answered his question on how long they have to process a permit. If they had an approved application for the last month, they probably have 150 days to make a decision. Vice Mayor Garbarino stated that, based on what they heard, they are a legal entity doing business here. He thought there was really no need for a moratorium then. Councilmember Addiego stated that if there was something similar to what the City Manager described where they really were in a situation where they had businesses coming in that were going to potentially harm their outlying neighborhoods or if it was a tighter time frame, then he could support the moratorium, but he was not sure why they were trying to buy 45 days when they have 150. REGULAR CITY COUNCIL MEETING MAY 14,2014 MINUTES PAGE 11 City Attorney Mattas stated that he looked back at the permit streamlining act and his recollection of 180 days was correct if there was an EIR involved. If it was exempt, the time period is 60 dates from the determination that it is exempt. Formerly, that determination could be made by the Planning Commission so, technically, the clock might not have started yet. But, because it was CEQA exempt, the time period was 60 days after the determination. That ultimately doesn't change the issues, but if they were able to come to an understanding with Flight Car that Council could accept, that would require processing a development agreement because that works best for this type of circumstance. He stated that it requires a notice of public hearing before the Planning Commission and the City Council. Under any scenario at which they are looking, there was going to be at least 45 days between now and then and this moratorium is not just about Flight Car. This moratorium deals with an anticipated parking problem on the west side because they have permitted uses that no one intended. They have an opportunity at the 45 day point to again decide that they were going to exempt Flight Car. Flight Car is in a position where they do have a complete application. Silver Car has a complete application, which was part of why they were being exempted. In the past Council has adopted moratoriums that did not have any exemptions and they have adopted moratoriums that have exempted complete applications. It may be perceived as the wrong first step between the parties, but from a practical standpoint it is not a time impediment because everything else that has to take place now was already going to take the time period being discussed. City Attorney Mattas stated that it was for the others and the unknown, but part of the unknown here was how to come to an understanding with Flight Car. Right now, if the city just moved forward with the CUP, the city simply applies the existing laws to the application. Under California law, a development agreement is a mutual agreement. No city or private party can compel the other to enter into that. So, what they were saying is that there are unknown aspects, even to Flight Car's application, because they don't really know how to deal with it on all levels. Some of the issues that the City Manager has raised with Flight Car in prior meetings were not just monetary issues. They deal with highest and best use of the property and those are things they would like to be able to have the opportunity to work out. Councilmember Gupta asked if the city could get the work done that it needs to without calling it a moratorium because it helps with media presence. Right now they have a functioning business on Dollar Avenue and the only thing is that it is limited to ten cars right now. They want to go into a bigger area and the city wants more understanding to deal with them. If they can do that without getting a moratorium, and still be able to meet requirements without trying to cut corners, it should serve both of them in a win-win situation. Councilmember Addiego stated that he could see that they may need a moratorium in a month, but maybe not tonight. City Attorney Mattas stated that they were obligated to accept any application that comes in and it was not staff making a voluntary determination to say its okay or not okay. As the ordinance is proposed now, it has no effect on Silver Car and they will continue on to their hearing. As it relates to Flight Car, the point he tried to make to Council was that the reality of how they would process their application if it was any more than just a conditional use permit. If they try to address highest and best use issues, revenue issues, they were going to have to bring a development agreement into it and that was going to take roughly 60 days before it could even REGULAR CITY COUNCIL MEETING MAY 14,2014 MINUTES PAGE 12 get back to the Council. He thought the legislature should have called it pause rather than the more negative sounding "moratorium." City Attorney Mattas stated that he would frame the moratorium but someone needed to make a motion. He stated that it is a motion to waive reading and introduce an interim urgency ordinance of the City of South San Francisco making findings and establishing a moratorium on the issuance of use permits, building permits or any other applicable entitlement for one automobile vehicle rental uses, including car sharing citywide and private parking uses in designated zones west of U.S. Highway 101 and, for the record, noted the revised agenda was on the dais that would effectuate exempting Silver Car from the moratorium. Mayor Matsumoto asked for a motion, and there was none, so City Attorney Mattas stated that if the Council didn't have any further direction, they would continue to work with their applications. Mayor Matsumoto asked if both Silver Car and Flight Car could go through with their applications. City Attorney Mattas stated that they both have applications. He asked Council if they were interested in the moratorium on the private parking uses in the designated zone West of U.S. 101. He stated that they have identified that there is a land use issue there. Vice Mayor Garbarino asked if he would have to draw up a new moratorium and Councilmember Gupta asked if they needed a motion. City Attorney Mattas stated that if the Council wanted that type of ordinance, he could try and edit the ordinance and read it into the record he further stated that Council could wait until the meeting on the May 28, 2014. Council and Mr. Johnson agreed to the latter course of action. CONSENT CALENDAR 1 Motion to approve City Council minutes for the meeting of April 23, 2014. 2. Motion confirming payment registers for May 14, 2014. 3. Resolution 52-2014 authorizing the City Manager to execute an addendum to the agreement with High Line Corporation in order to update the Oracle license and related software support and maintenance, and amending the Information Technology Fund Budget by $29,950. (Doug Hollis, Director of Information Technology) 4. Motion to confirm Mayor's appointment of Billy Gross to the South San Francisco Oversight Board. (Susy Kalkin, City Planner) 5. Resolution 53-2014 amending the salary schedule effective May 14, 2014 by assigning a salary range for Payroll Administrator and Senior Information Systems REGULAR CITY COUNCIL MEETING MAY 14,2014 MINUTES PAGE 13 Administrator job classifications in the Mid-management bargaining unit and Supervising Police Records Specialist job classification in the Police Association bargaining unit. (Mich Mercado, Interim Human Resources Manager) 6. Resolution 54-2014 amending Personnel Rules and Regulations Section 4.01 to provide the City Manager with the authority to amend job descriptions for existing positions and to reflect the changes made pursuant to City Ordinance No. 1447- 2011 which provides the City Manager with the authority to maintain the listing of the city's job classifications. (Mich Mercado, Interim Human Resources Manager) 7. Resolution 5 5-2 014 authorizing the filing of two Active Transportation (ATP) grant applications for bicycling improvements within the City of South San Francisco for a total project cost of $2,475,000 and committing up to $284,000 in matching funds to complete the improvements. (Brian McMinn, Director of Public Works) Mayor Matsumoto requested Item #7 be pulled for discussion. She expressed concern over the lack of support letters, noting the only one included in the packet was from the city's BPAC. These letters were crucial in getting funding and should come from local non-profits, businesses, and the Chamber. Associate Civil Engineer Lawrence Henriquez stated that eight requests had been sent, three were received, and five were pending. Director McMinn stated staff would follow up and get additional letters of support off for this item and the TIGER grant. Motion — Vice Mayor Garbarino/Second — Councilmember Normandy: to approve the Consent Calendar. Unanimously approved by roll call vote. COUNCIL COMMENTS/REQUESTS Councilmember Addiego stated that he and Vice Mayor Garbarino would like the meeting adjourned in memory of Joy Ann Wendler, a remarkable woman in every aspect of her life, and Wade Madios, someone very close to Councilman Garbarino. Mayor Matsumoto reported out of the CCAG meeting where the City's shuttle service was approved and a study on hot lanes excluded South San Francisco. She also reported on a meeting she had with Supervisor Pine in relation to County Mental Health Services and the clientele of the Industrial Hotel. Lastly, she informed the public that there was a new Harbor Master, Scott Grindy. She and the Assistant City Manager would be meeting with Mr. Grindy at a later date. ADJOURNMENT Being no further business, Mayor Matsumoto adjourned the meeting at 12:44 A.M. in honor of Joy Ann Wendler and Wade Madios. REGULAR CITY COUNCIL MEETING MAY 14,2014 MINUTES PAGE 14 Submitted by: Approved by: 1/z(itAita-aii4;i4*- illoor■2 t. Cle Rich Garbarino, Mayor City oou an Francisco City of South San Francisco REGULAR CITY COUNCIL MEETING MAY 14,2014 MINUTES PAGE 15