HomeMy WebLinkAboutMinutes 2016-11-07 @6:30 MINUTES
SPECIAL MEETING
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OF THE
CITY OF SOUTH SAN FRANCISCO
P.O. Box 711 (City Hall, 400 Grand Avenue)
South San Francisco, California 94083
Meeting to be held at:
MUNICIPAL SERVICES BUILDING
COUNCIL CHAMBERS
33 ARROYO DRIVE
SOUTH SAN FRANCISCO, CA
MONDAY, NOVEMBER 7, 2016
6:30 p.m.
Call to Order TIME: 6:31 p.m.
Roll Call PRESENT: Councilmembers Garbarino, Matsumoto and
Normandy, Vice Mayor Gupta and Mayor
Addiego.
ABSENT: None.
Agenda Review
None.
Public Comments—comments are limited to items on the Special Meeting Agenda.
Councilwoman Matsumoto announced to please go vote.
CLOSED SESSION
1. Closed Session:
Conference with Legal Counsel—Existing Litigation
(Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case: In the Matter of the Calculation of Final Compensation of Michael J.
Massoni and City of South San Francisco, Case No. 2015-0984; OAH No. 2016090205.
2. Closed Session:
Conference with Real Property Negotiators: (Pursuant to Government Code Section 54956.8)
Properties: 178-190 Airport Boulevard (APN 012-338-060, 012-338-070)
City Negotiators: Alex Greenwood and Ron Gerber
Negotiating Parties: 150 Airport SSF LLC, and the City of South San Francisco
Under Negotiations: Price and terms for disposition of the property.
3. Closed Session:
Conference with Real Property Negotiators: (Pursuant to Government Code Section 54956.8)
Properties: A vacant 20.78-acre property located on the south end on the north slope of Sign
Hill (Parcel 012-351-050)
City Negotiators: Alex Greenwood and Ron Gerber
Negotiating Parties: City of South San Francisco and the Cheryl A and Ross H Liberty Trust
Under Negotiations: Price and terms for disposition of the property.
4. Closed Session:
Conference with Real Property Negotiators: (Pursuant to Government Code Section 54957.6)
Agency designated representative: LaTanya Bellow
Employee organizations: AFSCME, Local 829, AFL-CIO; Confidential Unit, Teamsters
Local 856; International Association of Firefighters, Local 1507; International Union of
Operating Engineers Local 39; Mid-management Unit, Teamsters Local 856; South San
Francisco Police Association; Public Safety Managers; Executive Management Unit.
Time Entered Closed Session: 6:34 p.m.
Open Session resumed: 7:34 p.m.
Report out of Closed Session. Items 1.,2., and 3.were discussed.Direction given.No reportable action.
PRESENTATIONS
5. Certificate of Achievement presented to Jim Metz for organizing the Taste of South San
Francisco Event for more than 30 years. (Richard Garbarino, Councilmember)
Councilman Garbarino presented the Certificate of Achievement to Jim Metz.
Jim Metz stated he felt honored to be the Chair of the Taste of South San Francisco Event for the last
thirty (30) years and thanked Maria Martinucci, her staff Linda Parenti and Arlene Dozier, all of the
volunteers and especially the over forty-four (44) restaurants, hotels, caterers, bakeries, food service
purveyors, coffee and wine shops that made this event one of the premier events on the Peninsula. Mr.
Metz introduced his family and friends.
Mayor Addiego stated the certificate was so much more than just the Taste of South San Francisco and if
not for Mr. Metz's San Mateo address, there might had been a Mayor Metz in South San Francisco.
Councilwoman Matsumoto stated Mr.Metz made it sound so easy but it was not. She thanked Mr. Metz
for all his hard work.
Vice Mayor Gupta acknowledged Mr. Metz for his approach to South San Francisco.
SPECIAL CITY COUNCIL MEETING NOVEMBER 7,2016
MINUTES PAGE 2
Mayor Addiego announced a recess and changed to the Joint Special Meeting of the City Council and
Successor Agency.
ADMINISTRATIVE BUSINESS
6. Report regarding a resolution approving a second amendment to an existing consulting services
agreement with Carollo engineers of Walnut Creek, California for engineering services for the
Water Quality Control Plant Digester Design Project in an amount not to exceed$1,249,695. (Eric
Evans, Associate Civil Engineer)
6a. Resolution approving a second amendment to an existing consulting services agreement with
Carollo Engineers for the Water Quality Control Plant Digesters design Project in an amount not
to exceed $1,249,695.
Engineer Evans presented the staff report and PowerPoint presentation summarizing the overview of the
complete design of the new technologies implemented at the treatment plant. He stated the next steps
would be to proceed with design, prepare construction bid package, acquire financing for construction
phase and proceed with construction.
Councilwoman Matsumoto advised the money the City was being asked for was larger than the original
grant. She also queried some language on the agreement stating Carollo Engineers would be hired to
provide engineering services and asked if that would be under a separate contract or under the contract
being brought to Council tonight. Councilwoman Matsumoto asked whether there was an approximation
on how much the separate contract would be.
Engineer Evans answered it would either be under a separate contract or an amendment to the current
contract.He addressed Councilwoman Matsumoto's concerns regarding bringing back to Council another
amendment to the original agreement with Carollo Engineers by stating new technology was available
before the construction was completed.If the City were to seek a different consultant,the new consultant
would need to take responsibility through their engineering license for all the construction. To take
responsibility for someone else's work would require the new consultant to go over everything with a
fine-tooth comb which would make it more expensive.
Mayor Addiego asked whether Carollo Engineers knew before hand of the newly available technology.
Engineer Evans replied the technology had been around for a few decades. The reason it was not used
before were due to regulatory compliance, specifically the treatment plant's ability to handle large
volumes of water that were coming from all the rain storms. The focus was more on water quality than
energy.
Councilman Garbarino recalled the original report stated that all the digesters were in bad shape. He
asked as to why digester 3 was not being considered. Councilman Garbarino wondered why Carollo
would not offer a complete package instead of separate amendments.
Engineer Evans answered the digester 3 was relatively newer than the first two (2) digesters and is
structurally strong.
SPECIAL CITY COUNCIL MEETING NOVEMBER 7,2016
MINUTES PAGE 3
Vice Mayor Gupta echoed Councilwoman Matsumoto's concerns regarding all the amendments from
Carollo Engineers. He further mentioned the $200,000/year efficiency gains amounts to 160 years for
payback.
Engineer Evans stated he was not sure on when exactly Carollo Engineers' staff were aware of the new
technology.He continued and advised there was only one other installation in California that were using
this technology. He mentioned the City went to Carollo Engineers with the new technology. Engineer
Evans stated there were risks involved with new technology that does not have a long track record.A lot
of consultants are reluctant to embrace it. It would be safer for them to wait and see how other plants do
with the new technology.When Staff brought the new technology to the consultant,the consultant were
fully aware of the technology but Carollo Engineers were concerned in recommending the technology as
they had not seen many other treatment plants using it.
Mayor Addiego asked how much more it would cost to hire a new consultant to do the work.
Public Works Director Ray Towne stated Carollo Engineers are the engineer of record so in order to hire
another consultant, they would need to start all over again.
Councilwoman Matsumoto was concerned the City would be operating with old technology when the
City could have invested in something more efficient and cost effective in the next five (5) to ten (10)
years.
Engineer Evans stated tanks three(3),four(4)and five(5)were in good shape and could be converted to
the new technology later if Council desired.
Councilwoman Matsumoto queried the contract length with Carollo Engineers.
Engineer Evans stated the City would still be involved with Carollo Engineers for another four(4)years.
Mayor Addiego asked whether there was a right time to move on from Carollo Engineers.
Director Towne advised Council could change consultants but expressed it would not be a good idea for
the design aspect of it.
Mayor Addiego expressed to Director Towne and Engineer Evans that they should communicate with
Carollo Engineers regarding Council's concerns.
Councilwoman Normandy stated she was missing Attachment 3 from her packet which detailed the$1.2
million. She also advised Engineer Evans that funding on page 2 was not correct in reference to
Amendment 1. The corrected amount should have been $339,000 based upon the revision done in
January.
Engineer Evans stated he included the previous resolution as reference on what happened in January.He
continued stating there was not a proposed resolution for tonight.Ever since the City started the On-Call
consultant system about a year and a half ago,he had hired other companies to do several projects at the
treatment plant.
SPECIAL CITY COUNCIL MEETING NOVEMBER 7,2016
MINUTES PAGE 4
Motion—Councilman Garbarino/Second—Vice Mayor Gupta: to approve Resolution No. 125-2016.
Unanimously approved by roll call vote.
Councilwoman Matsumoto suggested for future reports to have more than one(1)set of eyes review the
reports to avoid long discussions on missing pages and mistakes. Councilwoman Matsumoto continued
stating some of the fonts were different sizes on the report.
Engineer Evans believed there was a software glitch on Legistar because when he would edit the text
outside of Legistar, it looked fine.
Deputy City Clerk Gabriel Rodriguez stated Engineer Evans contacted him regarding the font issue. He
advised he had contacted Legistar on the issue.
7. Report regarding a Resolution Accepting the Year-End Financial Results and Amending the
Budget for Fiscal Year 2015-16. (Richard Lee, Finance Director)
7a. Resolution Accepting the Year-End Financial Results and Amending the Budget for Fiscal Year
2015-16.
Director Lee presented the item via PowerPoint presentation and gave a brief overview to accept the year-
end financial results and amend the budget for Fiscal Year 2015-16.He gave a General Fund summary of
total revenues at $94.6 million, total expenditures at $88.9 million and total surplus at $5.7 million.
General Fund revenues were the following:property tax+$230,000,sales tax-$1.5 million,TOT/parking
tax +$352,000,building permits+$935,000 and franchise fees+$638,000.
Mayor Addiego stated that was 30%of the total and asked whether there were other big numbers having
PG&E as a franchise.
Director Lee advised the weather increases but no numbers like that. Director Lee continued with his
presentation stating the Sewer Fund had revenues of$25.5 million with expenditures at$24.7 million.
The Parking District Fund saw revenues of$875,000 with expenses at$638,000.The Storm Water Fund
had total revenues of $1.3 million with total expenses at $1.4 million. The primary reason for the
expenses being under budget were due to the CIP project titled the Storm Water Trash Capture Devices.
The project was still in design and anticipate going out to bid by the end of this fiscal year. The Self
Insurance Fund had a total revenue of$4.9 million and total expenses of$4.7 million.
Director Lee explained the Calpers Pension Buck. For every dollar that Calpers pays to its retired
annuitants for pension benefits,62%comes from its investment returns with the remainder coming from
contributions from member agencies.When Calpers misses their mark for their investment returns,that
puts pressure on the member agencies to make up the difference.
Mayor Addiego queried if the Budget Subcommittee had an opportunity to look at the report.
Vice Mayor Gupta responded the Budget Subcommittee had not.
Director Lee stated labor negotiations were taking all his time so he couldn't call a budget meeting.
SPECIAL CITY COUNCIL MEETING NOVEMBER 7,2016
MINUTES PAGE 5
Vice Mayor Gupta had a question on Calpers chart of return on investment. He asked if there was a way
to get out of it with some available financial tactic.
Councilman Garbarino stated that Calpers can miss the mark and someone else pays for it. He gave an
example of the utility companies that raise the rates to their customers if they had to cut back or didn't
make enough profit. Councilman Garbarino thought Calpers 7.5% was unrealistic in this 1%world.
Director Lee stated about three(3)or four(4)months ago,the Calpers Board of Administration,approved
a new risk management strategy where they would gradually lower their assumption of 7.5%to 6.5%.If
their returns exceed their target by 4%or more they would lower their assumption by five(5)basis points
every year until they get down to 6.5%,taking approximately 20 years. There was a debate amongst the
legislators, the Governor and the Calpers board on how quickly to get down to 6.5%. The Governor
wanted it immediately while the board wanted it gradually.If it turns out to be immediately,Director Lee
advised there would be a number of agencies that would not be able to pay their Calpers bill.
Vice Mayor Gupta asked for clarification whether if Calpers decided to change the expected return from
7.5% to 5%. Calpers keeps it at 7.5% but actually get 5% in the future, what kind of impact, with that
scenario, would this take on the City.
Director Lee answered every City receives an annual actuary evaluation that was a member with Calpers.
Part of that evaluation provides a financial sensitivity analysis discussing that if Calpers receives the 75th
percentile of what they expect, these would be the rates the agency would expect to receive.
Councilwoman Matsumoto asked whether the extraordinary amount of employee turnover contributed to
the high variance.
Director Lee confirmed yes.
Councilwoman Matsumoto requested all of Council to receive from Staff a report broken down by
department the number of employees that have resigned. She would like it to include the hired date and
resigned date for the last three(3)years. She would also like to know how many vacancies were currently
in each department.
Councilwoman Matsumoto referred to the Storm Water fund and asked what the CIP reimbursement
revenues mentioned were.
Director Lee stated the City had agreements with other agencies similar to the sewer fund, where they
agree to pay a certain share of the costs from CIP projects.However,if those CIP projects do not come to
fruition within the fiscal year,then the City would not issue them billing.That is the reason the City was
under budget for revenues.
Councilwoman Matsumoto asked if the City had a program in place to help prevent injuries and what
would be causing the high injury leave.
Director Bellow answered yes,there was a targeted program for employees.There was a safety consultant
on board going through all of the illness and injury prevention programs.
SPECIAL CITY COUNCIL MEETING NOVEMBER 7,2016
MINUTES PAGE 6
Councilwoman Matsumoto recommended Staff to prepare quarterly reports to employees both on health
and finances to give employees an idea on what to expect when going into labor negotiations.
Director Bellow advised that idea was currently employed as of six (6)months ago, labor management
partnership meetings,where the City are meeting with the labor groups every couple of months and have
open discussions on how the City was doing and voicing each other's concerns.
Councilwoman Matsumoto voiced concern that employees might not get the information from their union
reps and recommended for Staff to get the reports directly to the employees.
Director Bellow agreed to do so.
Councilwoman Matsumoto asked for a couple of examples of what he meant by governmental purposes
when talking about Council would have the purview over the funds in the Pers stabilization reserve.
Director Lee stated in the event of a natural disaster,the Council could direct Staff to immediately change
the purpose of those funds for disaster recovery.
Mayor Addiego queried what the magic number the City wanted to achieve.
Director Lee answered 20%.
Motion — Councilman Garbarino/Second — Vice Mayor Gupta: to approve Resolution No. 126-2016.
Unanimously approved by roll call vote.
8. Report regarding a resolution approving various Consulting Services Agreements for On-Call
Architectural,Engineering and Other Professional Services for various City-funded projects in the
amount not to exceed $200,000 per fiscal year per selected consultant. (Sam Bautista, Principal
Engineer)
8a. Resolution approving various Consulting Services Agreements for On-Call Architectural,
Engineering and Other Professional Services for various City-funded projects in an amount not to
exceed $200,000 per fiscal year for a two year period per selected consultant.
Engineer Bautista presented the item to Council stating two(2)years ago,Council approved thirty-seven
(37) consultant services agreements with On-Call architectural engineering and other professional
services to help deliver multiple projects.The agreements were vital to pushing the capital improvement
projects. Staff recommends increasing the number of On-Call consultants from 37 to 50 which would
help increase capacity towards more projects.
Councilwoman Normandy stated she counted 56 bullet points, not 50.
Engineer Bautista explained there are some consultants that are in multiple service areas which would be
counted as one (1).
SPECIAL CITY COUNCIL MEETING NOVEMBER 7,2016
MINUTES PAGE 7
Councilwoman Normandy asked if a consultant had more than one (1) project, would they received
$200,000 total or$200,000 per project.
Engineer Bautista answered the consultant would receive $200,000 per project.
Councilwoman Normandy stated there are 56 consultants and the City would be committed up to
$200,000 per consultant which she would set aside $11.2 million for their assurance on CIP projects.
Engineer Bautista stated that would be correct. Each project had a design budget. The City tracks each
work order to make sure they don't go over the $200,000. He continued by stating the City would try to
match the consultant with the type of project they are known for doing and have done in past projects.
City Attorney Rosenberg added he worked with Engineer Bautista on the template for the On-Call
agreements and it specifically states on the agreement that it does not guarantee any work under the
contracts. The consultants understand that they may not get any work at all.
Vice Mayor Gupta stated he only saw two (2) consultants from South San Francisco on the list and
wondered whether there would be enough buzz to get more qualified consultants in South San Francisco.
He would prefer to give as much City dollars to a local consultant. Vice Mayor Gupta asked if each
department, that needed the consultant's services, took care of their own contract management.
Engineer Bautista replied it would be a double check. Engineering would prepare the task orders if
another department asked to use one of the On-Call consultants,the department would go to Engineering
to issue that department a number and then goes out for signature. Engineering would log it into their
system to make sure the consultant had enough capacity in their contract. Engineering would then take it
to the Finance Department to verify the contractor had enough capacity in their contract as well. It's a
double check system to make sure each consultant does not go over the $200,000 each fiscal year.
Engineer Bautista mentioned there are several consultants on the list that grew up in South San Francisco
and are very familiar with the area.
Motion —Vice Mayor Gupta/Second — Councilman Garbarino: to approve Resolution No. 127-2016.
Unanimously approved by roll call vote.
Council re-entered into Closed Session for item #4.
Time Entered Closed Session: 9:16 p.m.
Open Session resumed: 10:02 p.m.
Report out of Closed Session. Direction given. No reportable action.
ADJOURNMENT
Being no further business, Mayor Addiego adjourned the meeting at 10:03 p.m.
SPECIAL CITY COUNCIL MEETING NOVEMBER 7,2016
MINUTES PAGE 8
Submitted: Approved:itOti,:::/ /kt--,.-
Gabne Rodriguez, Deputy City Clerk Pradeep Gupta, Mayor
City of South San Francisco City of South San Francisco
SPECIAL CITY COUNCIL MEETING NOVEMBER 7,2016
MINUTES PAGE 9