HomeMy WebLinkAboutMinutes 2018-01-22 @6:00MINUTES
o�Sp�TN SANAA2 CITY COUNCIL
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SOUTH SAN FRANCISCO, CA
MONDAY, JANUARY 22, 2018
6:00 p.m.
CALL TO ORDER Time: 6:00 p.m.
ROLL CALL Present: Councilmembers Addiego, Garbarino and Gupta,
Mayor Pro Tem Matsumoto and Mayor Normandy.
Absent: None
AGENDA REVIEW
None.
PUBLIC COMMENTS
None.
ADMINISTRATIVE BUSINESS
1. Study Session regarding consideration of possible Transient Occupancy Tax increase
(Richard Lee, Director of Finance)
Director Greenwood discussed the importance of the Leisure and Hospitality Industry and
hotels in the City.
Councilmember Addiego asked if there 10% of the local jobs were in the hospitality
industry. Director Greenwood stated there were 3,800 jobs in the Leisure and Hospitality
Industry. He stated restaurants connected to the hospitality industry were included.
Mayor Pro Tem Matsumoto asked the first through fourth highest industries. Director
Greenwood stated live sciences, manufacturing, transportation, warehousing and wholesale,
and healthcare. Mayor Pro Tem Matsumoto asked what 1 -4 was in terms of revenue growth.
Director Greenwood stated he would provide that information via email.
Councilmember Addiego confirmed that manufacturing included food processing.
Mayor Pro Tem Matsumoto asked the type of warehousing. Director Lee stated the City
received quarterly reports on local economy but it did not specify the type of warehousing.
Director Greenwood suggested NAICS code might be able to provide that information.
City Manager Futrell stated hotels were a vibrant part of the economy but increased public
safety costs.
Fire Chief Kohlmann presented total Fire and Police incidences.
Mayor Pro Tem Matsumoto asked why the decline for 2017. Fire Chief Kohlmann explained
the decrease in routine medical calls due to a decline in patients waiting for medical
procedures being housed at City of South San Francisco hotels.
Fire Chief Kohlmann stated service calls and fire alarms stayed relatively stable.
City Manager Futrell stated the patients awaiting procedures were somewhat compromised
while at the hotel so they required medical calls.
Fire Chief Kohlmann explained that UCSF had reduced the volume of procedures but the
rate was expected to increase.
Mayor Pro Tempore Matsumoto asked about "other public assistance." Fire Chief
Kohlmann explained water and mechanical damage.
Police Chief Azzopardi stated Police incidents were relatively the same in 2017. He
explained that an incident was any time a Police Officer was at a hotel. He presented
statistics at the Travel Lodge.
Councilmember Addiego discussed problem hotels in Oakland and asked if there was a
threshold on illegal activity to move against them. City Attorney Rosenberg discussed
excessive calls ordinance and the Red -Light Abatement Act.
City Manager Futrell stated Police and Fire were at hotels eight times each day.
Director Lee discussed the City's Transient Occupancy Tax (TOT) rate, comparison to
surrounding cities, $16.5 million in revenue, and increasing TOT.
Mayor Pro Tem Matsumoto asked if other cities had a comparable room tax. Director Lee
stated there were not and he discussed the San Mateo County Visitors Bureau Assessment.
Mayor Pro Tem Matsumoto asked if the tourism tax was assessed on occupied rooms.
Director Lee stated it was assessed on occupied rooms. Councilmember Addiego asked the
percentage of the $2.50. Director Lee stated it was 1.45 %.
City Manager Futrell discussed the potential of a ballot measure to raise the TOT as a
general tax.
Mayor Normandy stated San Carlos was proceeding with a ballot measure.
Mayor Pro Tem Matsumoto stated RM3 would go on in June. She asked of any other tax
increase initiatives on the November ballot. City Manager Futrell stated he was only aware
of the two mentioned. Mayor Pro Tem Matsumoto indicated support but expressed concern
with anger over the half cent sales tax.
SPECIAL CITY COUNCIL MEETING JANUARY 22, 2018
MINUTES PAGE 2
Councilmember Addiego discussed demands on services. Need to run with the others but
factor in 1.45%
Councilmember Garbarino discussed the use of Police services and indicated support for an
increase.
Councilmember Gupta stated he supported an increase due to the need to remain competitive
with Daly City and San Francisco and the need for revenue. He stated he questioned why not
increase to 15 %.
Mayor Pro Tern Matsumoto discussed the impact of the Grand Hyatt on the City's
occupancy rates.
Mayor Normandy agreed that TOT did not affect residents but could impact the tourist
economy. She suggested revisiting the TOT tax sooner. She discussed all the fees associated
with hotel stays. She discussed the need to work with hoteliers. She suggested increasing to
12 or 12.5 %.
Councilmember Addiego agreed with increasing to 12 %.
Councilmember Garbarino concurred.
City Manager Futrell suggested 12% now and come back in 2 years.
Councilmember Addiego surprised that the impact the industry has on emergency services.
Director Lee suggested phased in approach for TOT.
City Attorney Rosenberg explained the potential of a graduated increase presented to the
voters.
Mayor Pro Tern Matsumoto stated it was necessary to be aware of other transportation taxes.
Councilmember Addiego thanked the hotel industry for benefits to the City.
Councilmember Garbarino indicated support for graduated rates.
BJ Patel, Hampton Inn and Hotel 550, discussed the existing Convention Center tax, San
Mateo County Tourism tax, and Visit California tax. He requested the City of South San
Francisco allow TOT payments by credit card. He cautioned the Council to increase the rate
slowly.
Director Lee explained the. interchange fees to the merchant service account associated with
allowing TOT to be paid by credit card.
Councilmember Addiego stated credit cards could be used for property tax. Director Lee
confirmed that you could pay by credit card with a fee. Councilmember Addiego suggested
looking into allowing quarterly payment. Director Lee explained impacts of quarterly
remittance.
SPECIAL CITY COUNCIL MEETING JANUARY 22, 2018
MINUTES PAGE 3
Mayor Normandy reiterated the gradual approach and asked when the matter would come
back to Council. City Attorney Rosenberg stated the matter would come back to Council the
first meeting in July. Mayor Normandy suggested allowing credit card payments with a fee.
2. Study Session regarding recently adopted State housing legislation. (Nell Selander,
Economic & Community Development Deputy Director)
Deputy Director Selander presented the staff report.
Councilmember Gupta asked the advantages of declaring areas for workforce housing.
Deputy Director Selander explained that the City would prepare an EIR for districts,
streamlining the permitting process.
Mayor Pro Tern Matsumoto asked if the City had an affordable housing policy. Deputy
Director Selander stated the City had an inclusionary housing ordinance but it was not
permitted to have one for rentals prior to January 1, 2018.
Councilmember Gupta discussed the definition of affordability in SB 2 and 3. Deputy
Director Selander provided current AMI values.
Councilmember Gupta asked if the City prescribed the number of people. Deputy Director
Selander explained that the unit was based on the price for assumed household size.
Deputy Director Selander continued review of legislation.
Councilmember Gupta questioned how AB1397 encouraged housing. Deputy Director
Selander explained that it encouraged consideration of practicability to replace commercial
with housing.
Deputy Director Selander explained no net loss, one of three high priority items.
Mayor Pro Tern Matsumoto stated the State did not enforce RHNA numbers but the City
was morally obligated to provide housing.
Councilmember Gupta stated the legislation would use the gap between what the City
promised and delivered to measure whether the City should be forced to accept housing
without its approval.
Councilmember Garbarino stated the bills eliminated local control.
Deputy Director Selander presented an example of no net loss.
City Manager Futrell discussed possible sites including in the Housing Element.
Mayor Pro Tem Matsumoto stated she was prepared to make one of the units low income.
SPECIAL CITY COUNCIL MEETING JANUARY 22, 2018
MINUTES PAGE 4
Councilmember Garbarino stated the legislation required either the City or developer to
develop per the Housing Element.
Councilmember Addiego stated the City had to be true to the Housing Element. He
suggested housing west of 101.
Deputy Director Selander discussed the PUC site.
Councilmember Gupta discussed development constraints and asked if the State could force
the City to build. Deputy Director Selander explained that the City would have to designate
capacity for unbuildable units. She stated property would have to be rezoned or identified to
meet capacity.
Mayor Pro Tem Matsumoto stated low and very low housing was equated with indigent
people but it was for elderly or retirees.
Councilmember Gupta agreed but wanted the City to retain control of development.
Deputy Director Selander discussed the Housing Accountability Act (HAA) and reforms.
In response to Councilmember Gupta, City Attorney Rosenberg explained substantial
evidence versus preponderance of evidence. Councilmember Gupta asked if the burden of
proof shifted. City Attorney Rosenberg explained that preponderance of the evidence
required the scale to shift.
City Manager Futrell discussed the requirement to use objective general plan and zoning
standards.
Deputy Director Selander discussed objective standards in the Zoning Ordinance.
Mayor Pro Tem Matsumoto stated she had been pushing for an update to the General Plan.
City Attorney Rosenberg stated the City could do four amendments per element per year.
City Manager Futrell stated the design standards were not in the General Plan. He stated the
Council could determine if the design regulations should be strengthened.
City Attorney Rosenberg discussed findings that were not objective. He stated staff could
recognize subjective standards and turn into objective standards.
Deputy Director Selander discussed timelines for processing planning applications.
Mayor Pro Tem Matsumoto asked about Pinefino. City Attorney Rosenberg stated the
applicant was seeking a discretionary FAR, but opted for density allowed by right. Mayor
Pro Tem Matsumoto stated the Council did not have the opportunity for call for review. City
Attorney Rosenberg stated call for review would still apply. He stated the bill expanded
housing projects and created stricter timelines.
Deputy Director Selander stated the State density bonus could be applied. She discussed
HAA impacts on fines and fees. She discussed the City's ability to comply with the reforms.
SPECIAL CITY COUNCIL MEETING JANUARY 22, 2018
MINUTES PAGE 5
She summarized SB35 — Streamlining, exclusions and requirements, process, and parking
requirement waivers.
Mayor Pro Tem Matsumoto asked when it was effective. Deputy Director Selander stated it
was effective but there was not yet administrative instruction.
City Attorney Rosenberg stated the city had not yet received RHNA reports and it was
unclear as to when an applicant could avail himself to the streamlining.
Deputy Director Selander summarized the implications.
Councilmember Addiego expressed concern about the parking requirements. Manager
Mehra stated there were no specific locations for car share.
Deputy Director Selander informed the Council of a future study session on AB 1505 —
requiring affordable housing in rental developments.
Mayor Normandy stated the study session would be televised and in the Council Chambers.
City Manager Futrell anticipated public comment.
Mayor Normandy suggested the possibility of joint Council /Planning Commission meetings.
Councilmember Addiego commended Deputy Director Selander on the presentation.
ADJOURNMENT
Being no further business, Mayor Gupta adjourned the meeting at 7:44 p.m.
Submitted by: Approved by:
Gabriel Rod z, Deputy City Clerk L' a Normandy, May
City of South San Francisco City of South San Francisco
SPECIAL CITY COUNCIL MEETING JANUARY 22, 2018
MINUTES PAGE 6