HomeMy WebLinkAboutMinutes 2017-02-22 @6:31 MINUTES
0„a SAA,„0 SPECIAL CITY COUNCIL
CITY OF SOUTH SAN FRANCISCO
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COUNCIL CHAMBERS
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SOUTH SAN FRANCISCO, CA
WEDNESDAY,FEBRUARY 22, 2017
6:31 P.M.
CALL TO ORDER Time: 6:31 p.m.
ROLL CALL Present: Councilmembers Addiego, Garbarino, and
Matsumoto,Vice Mayor Normandy and Mayor Gupta.
Absent: None
AGENDA REVIEW
None.
STUDY SESSION
1. Study session regarding Down Payment Assistance Program for City Employees. (Richard
Lee,Director of Finance)
Director of Finance Lee presented the staff report.
Vice Mayor Normandy asked about the survey results. Director Lee stated the survey was
conducted to understand the magnitude of how many potential employees would be
interested and what level of funding would be needed for each of the fiscal years.
Vice Mayor Normandy asked if the program would be further explained to staff. City
Manager Futrell stated details were provide at the semi-annual town hall meetings.
Councilmember Matsumoto stated it was a good effort but expressed concern that it applied
to management level and above. She discussed the need to provide housing to lower level
staff. She indicated support for the proposed program but suggested workforce or employee
housing. She discussed affordable housing units at 150 Airport and suggested they commit
to employee housing.
Mayor Gupta asked if the program was only for properties $900,000 or above. Director Lee
stated $900,000 was used for demonstration purposes.
Councilmember Addiego stated condominiums would qualify. He expressed concern about
available inventory.
Councilmember Matsumoto asked what happened if the employee left City employment.
Director Lee stated the employee would continue to make payments through a third party
administrator. Councilmember Matsumoto stated she was not comfortable with that. City
Manager Futrell stated the matter was considered and staff suggested not requiring home
forfeiture. Councilmember Matsumoto suggested requiring they remain employed for five
years. City Manager Futrell stated the Council would have to determine the penalty if the
employee left the City. He stated the program was open to all employees and explained the
down payment process. He discussed efforts to locate rental units for employees.
Councilmember Matsumoto asked how much was in the Infrastructure Reserves. Director
Lee stated the balance was $6.5 million. Councilmember Matsumoto stated she wanted to
see the CIP.
Councilmember Garbarino asked if units in the Airport Boulevard project could be set aside
for employees. City Attorney Rosenberg stated there was a potential issue if a certain group
was favored over another group.
Councilmember Addiego discussed housing inventory and possible purchase of property.
Vice Mayor Normandy asked when the OMNI 87-unit project was anticipated to be
completed. Councilmember Matsumoto stated it included units at 20% below market rate.
City Manager Futrell stated it was anticipated to open to the public in approximately 24
months.
Mayor Gupta expressed concern about the City "double dipping" by being paid interest on
the loan and getting a share of escalation. Director Lee stated shared appreciation was part
of the first time homebuyer program and was presented for Council discussion. Mayor
Gupta stated it was important to be fair to employee.Futrell He
tated it had been included based,
interest free equity sharing program. City Manager
on inclusion in an earlier program but staff was agnostic.
Councilmember Addiego suggested setting the interest rate at the same level as earned. City
Manager Futrell explained that the intent was to break even with the same interest that
would have been earned in the alternative investment. Councilmember Addiego asked how
market shift would impact the City.
City Manager Futrell suggested taking the feedback and turning it into a proposal for fine-
tuning by the Budget Subcommittee.
ADJOURNMENT
Being no further business, Mayor Gupta adjourned the meeting at 6:57 p.m.
Submitted by: Approved by:
/9, ,4,-A --
Gabriel Rodng • ,Deputy City Clerk Pradeep Gupta, Mayor City of South San Francisco City of South San Francisco
SPECIAL CITY COUNCIL MEETING FEBRUARY 22,2017 PAGE 2
MINUTES