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HomeMy WebLinkAboutMinutes 2018-06-27 @7:00MINUTES "SA N'`' CITY COUNCIL 04 CITY OF SOUTH SAN FRANCISCO U O eA11FO REGULAR MEETING MUNICIPAL SERVICES BUILDING COUNCIL CHAMBERS 33 ARROYO DRIVE SOUTH SAN FRANCISCO, CA WEDNESDAY, JUNE 27, 2018 7:00 p.m. CALL TO ORDER Time: 7:05 p.m. ROLL CALL Present: Councilmembers Addiego, Garbarino* and Gupta and Mayor Pro Tern Matsumoto. Excused: *Councilman Garbarino was excused from the meeting before the Consent Calendar was heard at 9:26 p.m. PLEDGE OF ALLEGIANCE Led by Cultural Arts Commissioner Lyn Boldenweck. AGENDA REVIEW City Manager Futrell recommended that Council hear Items 3, 5 and 6 first. Council agreed. ANNOUNCEMENTS FROM STAFF City Manager Futrell announced a community meeting that would take place in the Sunshine Gardens Neighborhood at Sunshine Gardens Elementary school on Monday evening, July 2, 2018. COUNCIL COMMENTS /REQUESTS In response to a question from Mayor Normandy, staff confirmed that it would post digital signs around the City reminding the public that fireworks are illegal in South San Francisco. Councilman Addiego commended staff and Chief of Police Azzopardi for their approach with the public at the Avalon/Brentwood Neighborhood community meeting earlier in the week. He believed the meeting was productive and felt that the public left with an understanding that the City sought to address its concerns. He further elaborated on the Sunshine Gardens Neighborhood meeting that would take place on Monday, July 2, 2018 at Sunshine Gardens Elementary School from 6:00 -7:30 p.m. Mayor Pro tem Matsumoto advised that she was working with interns for the City Manager's Office, Maya Patel and Monique Ray to establish a Youth Advisory Committee. She further announced a HEP B Screening event that would take place at the Municipal Services Building on July 28, 2018 and a Cultural Picnic at Orange Memorial Park on August 4, 2018. She stated that minimal budget allocations would be explained by City Manager Futrell later in the evening. Councilwoman Matsumoto and Councilman Addiego commented on the new City signs installed on Westborough at Skyline Boulevard and at Sister Cities Boulevard and Airport Boulevard. Mayor Pro Tern Matsumoto commented that landscaping covered the sign at Westborough. City Manager Futrell responded that two signs were installed for review by Council. A study session was planned for early July to discuss the signs. PUBLIC HEARING 3. Report regarding introduction of an ordinance amending South San Francisco Municipal Code Chapter 2.16 to establish a district -based election system for five council districts with a rotating mayor. (Mike Futrell, City Manager and Douglas Johnson, National Demographics Corporation) 3a. An ordinance amending South San Francisco Municipal Code Chapter 2.16 to establish a district -based election system for five council districts with a rotating mayor. City Manager Futrell presented the staff report recommending that Council introduce an ordinance amending South San Francisco Municipal Code Chapter 2.16 to establish a district -based election system for five (5) council districts with a rotating mayor, and waive further reading. He explained that since receipt of a demand letter in early March, Council had been engaged in the process necessary to invoke the 90 -day safe harbor under the California Voting Rights Act (CVRA) by making the shift to district elections. At a study session on June 20, 2018, Council established its preference for the districts established in Map No. 109, which divides the City into five (5) districts of roughly the same size. Map 109 complies with federal law and districts two (2) and four (4) specified in the map would be up for election in 2020. After the 2020 election, the maps would have to be redrawn to incorporate the results of the 2020 Census in time for the 2020 Council election. Public Hearing opened: 7:21 pm Resident Mina Richardson addressed Council. She stated that she did not prefer map 109 and believed map 113 was more geographically balanced. She further believed Map 113 better maintained protected classes pursuant to the voting rights act. She requested that the City conduct a study session to gauge community input on the map and sequencing. She would like to see a more fair process than the safe harbor procedures that Council had invoked, but had not decided what that process should be. She requested that the subject be placed on the agenda for the July 2, 2018 Sunshine Gardens Neighborhood meeting. Public Hearing Closed: 7:23 p.m. In response to a question from Mayor Pro Tem Matsumoto, Mr. Johnson of National Demographics Corporation advised the district numbers had been chosen so that biennial elections would alternate between even and odd districts with even districts being up first in 2020. Further, the districts were numbered left to right. REGULAR CITY COUNCIL MEETING JUNE 27, 2018 MINUTES PAGE 2 Mr. Johnson then summarized public input and engagement with respect to the district mapping process. He noted that the City had received 85 -90 comments from the public on the issue and 60 maps had been submitted, with 45 of those coming from a high school civics class. He advised this was the 5th public hearing on the topic and three (3) additional community workshops had been held. Further a table with district mapping information had been staffed at the weekly farmers market and there was a substantial social media outreach program on the subject sponsored by the City. He noted the City did far more than was required by the CVRA safe harbor. Mayor Normandy thanked residents for their participation in the process and stated Council's preference for Map 109, which she believes accurately reflects the neighborhoods and meets the CVRA and federal requirements. Councilman Addiego stated he would vote against the ordinance. He was fine with district elections but believed fractionalization could occur. He expressed a preference for the four (4) district format with an at large mayor. Councilman Gupta stated he was not in favor of district elections, but would vote yes. He noted public comments made at a previous hearing in which a voter expressed disappointment at no longer being able to vote for the entire Council. He further noted voters would only be able to vote for a Councilmember every four (4) years. He believed this would weaken the City democracy. Councilman Garbarino noted he does not like district elections because he believed it diluted voters' power in a City of roughly 65,000. That said he would support Map 109. Mayor Pro Tern Matsumoto stated her belief that South San Francisco was an inclusive community which was reflected in the Council's membership. She would vote for district elections because she believed she had to. Mayor Normandy expressed a preference for the four (4) district at large Mayor format, but would vote in favor of the proposed ordinance. Motion—Councilman Garbarino/Second—Councilman Gupta: to waive reading and introduce an ordinance amending South San Francisco Municipal Code Chapter 2.16 to establish a district -based election system for five (5) council districts with a rotating mayor. Approved by the following roll call vote: AYES: Councilmen Garbarino and Gupta, Mayor Pro Tern Matsumoto and Mayor Normandy. NAYS: Councilman Addiego. ABSTAIN: None. ABSENT: None. LEGISLATIVE BUSINESS 5. Report regarding a resolution adopting the Fiscal Year (FY) 2018 -19 Operating Budget for the City of South San Francisco, approving the Gann Appropriations limit, and making changes to the City's salary schedules. (Richard Lee, Director of Finance) 5a. Resolution No. 97 -2018 approving the Fiscal Year 2018 -19 Operating Budget for the City of South San Francisco, approving the Gann Appropriations limit, and making changes to the City's salary schedules. Finance Director Lee presented the staff report recommending that Council adopt a Resolution approving the Fiscal Year 2018 -19 Operating Budget for the City of South San Francisco, approving the Gann Appropriations limit, and making changes to the City's salary schedules. He REGULAR CITY COUNCIL MEETING JUNE 27, 2018 MINUTES PAGE 3 noted the budget had been presented to the Budget Standing Committee of the City Council at a special meeting on May 2, 2018. The full Council had reviewed the budget at a May 30th, 2018 special meeting and was scheduled to review the final budget presentation this evening. He then provided a PowerPoint presentation summarizing changes to the budget since the May 30th study session as follows: Upgrade of Lieutenant to Captain cost corrected from $59,700 to $21,891 1 full time employee ( "FTE ") Safety Inspector in Fire de- funded (- $223,000) 1 FTE Contract Safety Inspector in Fire reduced to 0.25 FTE (- $46,000) 1 FTE Deputy Public Works Director added ($249,000) 2 FTE Code Enforcement Officer added ($280,000) Removal of proposed Parks Flex Staffing positions (- $39.900) Removal of the SSFUSD Afterschool Program (- $43,000) expenses & corresponding revenue $1,000,000 for General Plan Update – Revenue increase to General Fund from Transfer in from Fund 270 and corresponding increase in budget for the expenditure in City Manager Department. Director Lee then thanked employees Karen Miller and Jennifer Clemente for their hard work on the budget. City Manager Futrell thanked Finance Director Lee for his hard work. He opined that staff had presented a strong budget. He then presented Budget Amendment 19.001 yielding a onetime expense to the general fund as follows: Sister Cities +$10,000 (City Manager's Budget) Cultural Heritage Grants +$10,000 (Parks and Recreation Budget) Cultural Fair +$10,000 (Parks and Recreation Budget) He explained the Cultural Picnic which Mayor Pro Tem explained would take place this August was referred to as the Cultural Fair in this budget. Mayor Normandy was pleased that the Sister Cities Budget had been adjusted to accommodate the cost of events to the City. Mayor Pro Tem Matsumoto pointed out that certain Sister Cities expenses that had been funded through the City Manager' Budget could now be charged against the Sister Cities Budget allocation. Councilman Addiego commented on the strength of the budget and noted it included a cushion for unforeseen circumstances. In response to a question from Mayor Pro Tem Matsumoto, Finance Director Lee advised the Gann Appropriations limit was established by the California Constitution and as long as Council didn't spend over the limit, it was in compliance. This budget met that requirement. Mayor Pro Tem Matsumoto requested that the Community Outreach Standing Committee of the City Council be renamed as she did not believe the current legislative body mirrored the goals of the original Community Outreach Advisory Committee. Motion — Councilman Gupta/Second— Councilman Garbarino: to approve Resolution No. 97 -2018. Unanimously approved by roll call vote. REGULAR CITY COUNCIL MEETING JUNE 27, 2018 MINUTES PAGE 4 ADMINISTRATIVE BUSINESS 6. Report regarding a resolution approving the Capital Improvement Program for fiscal year 2018- 19, approving the appropriations request of $44,891,000, and authorizing city staff to prepare plans and specifications to advertise for construction bids for the projects under this program. (Justin Lovell, Public Works Administrator) 6a. Resolution No. 98 -2018 approving the Capital Improvement Program (CIP) for fiscal year 2018 -19, approving the appropriations request of $44,891,000, and authorizing city staff to prepare plans and specifications to advertise for construction bids for the projects under this program. Public Works Administrator Lovell presented the staff report recommending that Council adopt a resolution approving the CIP for fiscal year 2018 -19, approving the appropriations request of $44,891,000, and authorizing City staff to prepare plans and specifications to advertise for construction bids for the projects under this program. Administrator Lovell explained this was the third presentation of the CIP as it had been presented to the Budget Standing Committee of the City Council on May 2nd and to the whole Council at a May 30th study session. He stated there were 82 projects in the FY 2018 -19 CIP with 12 new projects and 70 existing projects. He then provided a PowerPoint presentation noting a 90.2 million CIP and slides depicting some of the projects. In response to a question from Councilman Garbarino, Administrator Lovell advised the 86 -87 Grand Avenue Overpass is maintenance project involving sand blasting and repainting. Mayor Pro Tem Matsumoto called attention to page 2/4 relating to storm drains. She queried whether staff had a sense of whether Baykeeper would come back after the City again. City Manager Futrell noted the City had invested a great deal of funds to protect the Bay and is in compliance with NPDES pollution requirements. The Mayor Pro Tem then asked whether the City has a fee for use of electric vehicle charging stations. Mr. Lovell advised it currently did not but was working on an electric vehicle master plan that would take this into consideration. Mayor Pro Tem Matsumoto commented on the need to have some of the projects finalized so that the City could be inline for grant funding. Motion -- Councilman Gupta /Second —Mayor Pro Tem Matsumoto: to approve Resolution No. 98- 2018. Unanimously approved by roll call vote. PUBLIC HEARING (CONT.) 1. Report regarding a resolution establishing sewer service rates effective for the Fiscal Year 2018- 19; amending the Master Fee Schedule to include the Fiscal Year 2018 -19 rates; and adopting the Report of Annual Sewer Rental Charges for Fiscal Year 2018 -19 (Mike Futrell, City Manager & Brian Schumacker, Plant Superintendent) 1 a. Resolution No. 95 -2018 establishing sewer service rates effective for the fiscal year 2018 -2019; amending the Master Fee Schedule to include the fiscal year 2018 -2019 rates; and adopting the Report of Annual Sewer Rental Charges for fiscal year 2018- 2019. REGULAR CITY COUNCIL MEETING JUNE 27, 2018 MINUTES PAGE 5 Public Hearing opened 8:10 p.m. City Manager Futrell introduced the staff report recommending that Council adopt a Resolution establishing sewer service rates effective for the fiscal year 2018 -2019; amending the Master Fee Schedule to include the fiscal year 2018 -2019 rates; and adopting the Report of Annual Sewer Rental Charges for fiscal year 2018 -2019. The City Manager explained developers pay a large one- time impact fee just to join the system, so new development is not driving up the cost. Rather this actually offsets costs and helps keep sewer rates reasonable. For a single family home, the cost is $5 /month. Last year the Council authorized a 10% increase for the coming year. However, staff worked hard on cost saving measures and was actually able to reduce this by 1%. This reduction adds up over time and reflects an effort on the City's part to save its residents' money. He was also proud of the low income residents rebate program that had been established earlier in the year and approved by the City Council. He introduced Water Quality Control Plant Superintendent Schumacker to further present the staff report. Superintendent Schumacker explained the City was putting in additional infrastructure to protect the Bay's fragile ecosystem. Two (2) large projects were in the works related to the digester and secondary effluent tank. Pollutants had gradually decreased over the years and the City's efforts were paying off. In response to a question from Mayor Pro Tem Matsumoto, Superintendent Schumacker advised that South San Francisco has more heavy commercial users of its systems than San Bruno which had more residential users. Councilman Addiego stated he would like to eventually have the City consider the equities of the impact of a family of five (5) on the system versus a single user. In response to a question from Mayor Normandy, City Attorney Rosenberg advised state law prevents charging for connections from legal AEUs. Public Hearing closed: 8:26 p.m. Motion — Councilman Garbarino /Second — Councilman Gupta: to approve Resolution No. 95 -2018. Unanimously approved by roll call vote. 2. Report regarding a resolution approving the report of stormwater management service charges, approving the stormwater management service charges for Fiscal Year 2018 -19 and directing the stormwater management service charges to be collected on the official tax assessment roll. (Andrew Wemmer, Environmental Compliance Supervisor) 2a. Resolution No. 96 -2018 approving the report of stormwater management service charges for Fiscal Year 2018 -19, approving the stormwater management service charges for Fiscal Year 2018 -19 and directing the stormwater management service charges to be collected on the official tax assessment roll. Environmental Compliance Supervisor Wemmer presented the staff report recommending that Council adopt a resolution approving the report of stormwater management service charges for Fiscal Year 2018 -19, approving the stormwater management service charges for Fiscal Year 2018- 19 and directing the stormwater management service charges to be collected on the official tax REGULAR CITY COUNCIL MEETING JUNE 27, 2018 MINUTES PAGE 6 assessment roll. Supervisor Wemmer explained the Environmental Protection Agency imposes regulations that mandate local government to control and reduce stormwater pollution runoff. Regulatory authority is given under the Clean Water Act of 1977 the Water Quality Act of 1987. The framework for regulating stormwater discharges exist through a National Pollution Discharge Elimination System ( NPDES) Permit. The permit is implemented and enforced by the California State Water Resources Control Board ( SWRCB). The NPDES Municipal Regional Permit (MRP) regulates stormwater compliance. The SWRCB renewed the MRP on November 19, 2015. This 152 -page permit contains 22 provisions. Supervisor Wemmer explained the City participates in the San Mateo Countywide Water Pollution Prevention Program to help meet the MRP. Fiscal Year 2018 -19 marks the 26th year of South San Francisco's participation in the program. Supervisor Wemmer next explained that expected revenue from Fiscal Year 2018 -19 stormwater program service fees is approximately $418,867. The proposed program budget for Fiscal Year 2018 -19 is $1,112,208. Currently, funding will be provided from program service fees and supplemented with gas tax and general funds, as stormwater fees collected continue to fall short of the total service cost. He recommended that Council approve the storm water management fee for Fiscal Year 2018/19 Public Hearing opened: 8:29 p.m. Public Hearing closed 8:30 p.m. Mayor Pro tem Matsumoto commented that she liked staff's outreach materials regarding this program. Motion —Mayor Pro Tem Matsumoto /Second — Councilman Gupta: to approve Resolution No. 96- 2018 Unanimously approved by roll call vote. 4. Report regarding an Ordinance approving the Second Amended and Restated Development Agreement between the City of South San Francisco and BMR -700 Gateway LP, BMR -750, 800, 850 Gateway LP, BMR -900 Gateway LP, and BMR -1000 Gateway LP to make minor modifications to the previously approved Development Agreement relating to the Gateway Business Park Master Plan Project. (Billy Gross, Senior Planner) 4a. Ordinance adopting a Second Amended and Restated Development Agreement (DAA18 -001) between the City of South San Francisco and between BMR -700 Gateway LP, BMR -750, 800, 850 Gateway LP, BMR -900 Gateway LP, and BMR - 1000 Gateway LP for the Gateway Business Park Master Plan Project to make minor modifications to amend and restate the rights and obligations relating to the development of the Gateway Business Park Master Plan project. Senior Planner Gross presented the staff report recommending that Council follow the recommendation of the Planning Commission and introduce an Ordinance approving the Second Amended and Restated Development Agreement to the Gateway Business Park Master Plan Project between the City and BMR -700 Gateway LP, BMR -750, 800, 850 Gateway LP, BMR -900 Gateway LP, and BMR -1000 Gateway LP, and waive further reading. He noted that subsequent to original approvals Biomed switched from a public to private company format. Accordingly, its financing structure has changed. It is now financing one parcel at a time, which is the primary driver behind the proposed revisions. Senior Planner Gross then gave a brief history of the project. He advised that in February 2010, the City Council approved a General Plan Amendment, Zoning Ordinance Amendment, Design Review, Transportation Demand Management (TDM) Plan, Development REGULAR CITY COUNCIL MEETING JUNE 27, 2018 MINUTES PAGE 7 Agreement (DA) and Environmental Impact Report for the Gateway Business Park project (Project), which is a 1.23 million square foot office /R &D campus to be developed on a 22.6 -acre site at the corner of Oyster Point and Gateway Boulevards. In April 2013, the City Council approved modifications to the Master Plan, Phase I Precise Plan, TDM Plan and First Amended and Restated DA, to allow for a revised phasing plan and modifications to the interior circulation and building designs. The Phase I Precise Plan project, which includes the construction of an approximately 450,000 square foot office/R &D building and a separate approximately 48,000 square foot amenity building, is currently under construction. Staff recommended that Council waive reading and introduce the ordinance to permit development of future phases to move forward under the revised financing structure. Public Hearing opened: 8:34 p.m. Public Hearing closed: 8:34 p.m. In response to a question from Mayor Pro Tem Matsumoto, Senior Planner Gross advised the Precise Plan for Phase 2 and 3 would go the Planning Commission, but not to Council unless the applicant presented variations from the Master Plan and CEQA approvals from 2010. Attorney Cecily Barclay of Perkins Coie addressed Council. She explained that much of the requested action accomplished technical aspects cleaning -up "whereas clauses" to accommodate the change from public to private financing. The developer would be coming back to the City with the Precise Plan for Phases 2 and 3 in the near future. In response to a question from Mayor Pro Tem Matsumoto, Ms. Barclay stated the proposal doesn't change the master plan or CEQA requirements. In response to a question from Mayor Pro Tem Matsumoto, Ms. Barclay advised Mr. Berkschneider and Ms. Lewis were still with the team. Motion — Councilman Garbarino /Second —Mayor Pro Tem Matsumoto: to waive reading and introduce an Ordinance adopting a Second Amended and Restated Development Agreement (DAA18 -001) between the City of South San Francisco and between BMR -700 Gateway LP, BMR - 750, 800, 850 Gateway LP, BMR -900 Gateway LP, and BMR -1000 Gateway LP for the Gateway Business Park Master Plan Project to make minor modifications to amend and restate the rights and obligations relating to the development of the Gateway Business Park Master Plan project. Unanimously approved by roll call vote. 7. Report regarding a resolution confirming the change in solid waste collection rates to be collected by the South San Francisco Scavenger Company effective July 1, 2018. (Richard Lee, Director of Finance) 7a. Resolution No. 99 -2018 confirming the changes in solid waste collection rates submitted by the South San Francisco Scavenger Company effective July 1, 2018 Finance Director Lee introduced the staff report recommending approval of a resolution confirming the changes in solid waste collection rates submitted by the South San Francisco Scavenger Company effective July 1, 2018. Director Lee stated the City was approaching the last year of a three (3) year rate cycle within which the rates are adjusted by 95% of the average as based on local rate surveys and a fee determination calculation formula. Director Lee then introduced South San Francisco Scavenger President Doug Button. REGULAR CITY COUNCIL MEETING JUNE 27, 2018 MINUTES PAGE 8 SSF Scavenger President Button provided a PowerPoint update regarding current operations. The update included information on recycling best practices advising customers to avoid contaminating recyclables by placing paper with food waste in compost bins as opposed to general paper recycling compartments. Councilman Garbarino commented on the high level of service the SSF Scavenger Company provides. Mayor Pro Tem Matsumoto thanked the Scavenger Company for its great work and noted she was proud that the Company called South San Francisco its home. Councilman Addiego stated that at some point he would be interested in understanding the cost effectiveness of the digester operations. He understood its benefits from the sustainability perspective but wanted to understand more about the costs of its operation. He further commented that the rate survey included some cities that might not be the best fit for comparison to South San Francisco. President Button responded that while he didn't have all the costs of running the digester at his fingertips, the costs of operation were very similar to the cost of buying diesel for its fleet. Regarding the rate study, he noted that some of the most comparable cities with higher rates were not included. Further, the cities are selected in consultation with the City Manager. Councilman Addiego and President Button agreed the conversation could be continued at a future meeting of the Environmental Standing Committee of the City Council for examination in greater depth. Motion — Councilman Addiego /Second — Councilman Gupta: to approve Resolution No. 99 -2018. Unanimously approved by roll call vote. Mayor Normandy recused herself from hearing Item 8 due to her position as the Director of the South San Francisco Chamber of Commerce. She left the Dais and exited the Council Chambers. Mayor Pro Tem Matsumoto chaired the discussion. Mayor Normandy re- entered the Council Chambers and returned to the Dais. 8. Report regarding a resolution approving the Conference Center Authority Fiscal Year 2018 -2019 Budget (Dean Grubl, South San Francisco Conference Center Executive Director) 8a. Resolution No. 100 -2018 approving the South San Francisco Conference Center Authority Budget for Fiscal Year 2018 -2019. South San Francisco Conference Center Executive Director Grubl presented the staff report recommending that Council adopt a resolution approving the Conference Center Authority Fiscal Year 2018 -2019 Budget. Director Grubl advised the past Fiscal Year 2017/2018 was a record breaking year for the Conference Center. For the first time, the Center exceeded 1.1 million in revenue. The year is finishing with an 80% occupancy figure and occupancies for the coming year are at roughly the same. The fund balance continued to be healthy at over $3 million and the Center could operate for two (2) years on this amount. Director Grubl closed by announcing a Gala Event REGULAR CITY COUNCIL MEETING JUNE 27, 2018 MINUTES PAGE 9 that would take place in April 2019 to celebrate the 251h anniversary of the Conference Center. He requested that Council and residents save the date of April 17, 2019 for this celebration. Councilman Addiego commented on the remarkability of a nearly 200% reserve. In response to a question from Councilman Gupta, Director Grubl advised that upgrades to building function were planned, including, air conditioning and tarp improvements. Motion—Councilman Addiego /Second — Councilman Gupta: to approve Resolution No. 100 -2018. Approved by the following roll call vote: AYES: Councilmen Garbarino, Gupta and Addiego and Mayor Pro Tern Matsumoto; NAYS: None; ABSTAIN: Mayor Normandy; ABSENT: None. 9. Report regarding a Resolution approving an Affordable Housing Agreement and the First Amendment to the Disposition and Development Agreement with Hisense Real Estate USA for the development of the properties located at 200 Linden and 212 -216 Baden Avenue and authorizing the City Manager to execute the agreements, and a motion to approve a private open space parks fee credit. (Nell Selander, Economic and Community Development Deputy Director) 9a. Resolution No. 101 -2018 approving an Affordable Housing Agreement and the First Amendment to the Disposition and Development Agreement with Hisense Real Estate USA for the development of the properties located at 200 Linden and 212 -216 Baden Avenue, and authorizing the City Manager to execute the agreements. Community Development Coordinator Barnard presented the staff report recommending that Council adopt a resolution approving an Affordable Housing Agreement and the First Amendment to the Disposition and Development Agreement with Hisense Real Estate USA for the development of the properties located at 200 Linden and 212 -216 Baden Avenue, and authorizing the City Manager to execute the agreements. She further recommended that Council approve, by motion, a park fee credit of $389,669 for private open space. Coordinator Barnard advised that on September 6, 2017, the City Council approved a Disposition and Development Agreement ( "DDA ") between the City of South San Francisco and Hisense for the 200 Linden project. On September 19, 2017, the Oversight Board approved the sale price of $3,500,000, as stated in the DDA. The DDA was subsequently executed and became effective on October 5, 2017. In November 2017, the Planning Commission approved entitlements for the project, as required by the DDA's performance schedule. The project consists of 97 condominium units and approximately 6,300 square feet of retail, with six (6) residential stories over double - height retail spaces and three (3) levels of parking. The residential component of the project includes 22 one - bedroom units, 70 two - bedroom units, and five (5) three- bedroom units, with 20 percent of the total units (19 units) restricted to Below Market Rates ( "BMR "). The project utilized the State Density Bonus - inclusion of a minimum of 15 low income BMR units - to achieve a 35% density bonus and thus gain approval for 97 units on the site. Coordinator Barnard continued noting the City worked extensively with the developer to ensure that the developer reaches the construction milestone as quickly as possible. At this time, the developer is struggling to make the project financially feasible. It cites escalating construction costs, payment of prevailing wage, inclusion of BMR units, as well as the provision of a payment and performance bond, as items that have heavily impacted their ability to reach a marginal profit. In order to make the project feasible in light of current circumstances, the Developer has requested certain concessions. The first relates to park fees. The park fee triggered by the 200 Linden project is $1,553,940. The developer has asked for an open space credit for a portion of the fee, for which it is eligible under the Quimby Act and Section 19.24 of the South San Francisco Municipal Code. REGULAR CITY COUNCIL MEETING JUNE 27, 2018 MINUTES PAGE 10 City staff has indicated that the discretionary credit could be granted to reduce the overall financial burden on the project. The credit for which the project is eligible is $389,669. The second concession relates to building permit fees. The building permits for 200 Linden will cost approximately $731,078. Hisense has requested that these fees be reduced by 20 %, an amount equivalent to the proportion of BMR units in the project. This fee would be approximately $146,000. The third concession concerns BMR units. The developer advises that the provision of the BMR units is at a $7,000,000 loss to the project. To reduce this impact, the developer's current proposal heavily favors the provision of one - bedroom BMR units. City staff has indicated this was acceptable to reduce the overall financial burden on the project. Additionally, City staff recommends that Council accept a reduction in the proportionate BMR unit fee of $206,000. Accordingly, the total proportionate fee charged to Hisense would be $54,000. The concessions requested of the City and outlined above total $741,669. In addition to the cost reductions requested of the City, Hisense requested a purchase price reduction in the amount of $450,000. At its regular meeting on June 19, 2018, the Oversight Board considered and approved the final sale price of $3,050,000. Coordinator Barnard closed her report by recommending approval of the requested changes. She advised the developer and ECD Deputy Director Selander were available to answer further questions about the proposed changes. Mayor Pro Tem Matsumoto thanked Councilman Addiego and City Manager Futrell for their work with the Oversight Board to confirm reduction of the purchase price. Councilman Addiego commented this was a special developer that has chosen to honor its commitments where others might have walked away from the deal. He was pleased with the way the Oversight Board voted on the proposal, but was disappointed in the School District representative's approach to the issue. Given long term property tax implications, he believed the project was ultimately a win for the District and other taxing entities, including the City. Councilman Garbarino noted this project was ultimately a win for the City given the high number of BMR units. He also thanked Councilman Addiego for his work on the Oversight Board. Mayor Pro Tem Matsumoto reiterated that 19 of the 97 units would be BMRs. She requested that the floor be given to Hisense if it wished to comment. Fernando Bravo, Project Manager for Hisense, thanked Council and City staff for its support throughout negotiations on this project. Hisense was excited about this project and would give direction to move forward with construction. After some additional planning approvals and the close of escrow in late July, he looked forward to breaking ground. Motion — Councilman Garbarino /Second —Mayor Pro Tem Matsumoto: to approve Resolution No. 101 -2018. Unanimously approved by roll call vote. Motion — Councilman Garbarino /Second —Mayor Pro Tem Matsumoto: to approve a park fee credit of $389,669 for private open space. Unanimously approved by roll call vote. *Councilman Garbarino was excused from the meeting at 9:26 p.m. CONSENT CALENDAR 10. Motion to approve the Minutes from the meetings of May 2, 2018 and June 13, 2018. REGULAR CITY COUNCIL MEETING JUNE 27, 2018 MINUTES PAGE 11 11. Motion confirming payment registers for June 27, 2018. (Richard Lee, Director of Finance) 12. Report regarding a motion to accept the construction improvements, for the Magnolia Senior Center and Siebecker Preschool Parking Lot Resurfacing Project as complete in accordance with plans and specifications, with a with a total construction cost of $211,613.62. (Patrick Caylao, Civil Engineer) 13. Report regarding a motion to accept the emergency repair work to address the storm drain failure and related repairs on Junipero Serra Boulevard near Westborough Boulevard as complete. (Eunejune Kim, Director of Public Works) 14. Report regarding a resolution approving interim funding for the first 90 days of Fiscal Year 2018 -19 for the South San Francisco Conference Center Authority. (Dean Grubl, Executive Director, South San Francisco Conference Center) 14a. Resolution approving interim funding for the first 90 days of Fiscal Year 2018 -19 for the South San Francisco Conference Center Authority. Item not heard. 15. Report regarding a resolution approving the Second Amendment to the Consulting Services Agreement with Du -All Safety for safety program consultant services, for an additional of $125,000 for a total contract amount not to exceed $375,000. (Leah Lockhart, Human Resources Director) 15a. Resolution No. 102 -2018 approving the second amendment to a consulting services agreement with Du -All Safety extending the term for a third year and increasing the contract amount by $125,000 for a total amount not to exceed $375,000, and authorizing the City Manager to execute the agreement. 16. Report regarding a resolution approving BART /South San Francisco Utilities Agreement with the San Francisco Bay Area Rapid Transit District for the removal, construction, reconstruction, protection in place, extension of relocation of South San Francisco owned utilities and City Infrastructure in connection with the BART SFO Airport Extension. (Matthew Ruble, Senior Civil Engineer 16a. Resolution No. 103 -2018 approving BART /South San Francisco Utilities Agreement with the San Francisco Bay Area Rapid Transit District for the removal, construction, reconstruction, protection in place, extension of relocation of South San Francisco owned utilities and City Infrastructure in connection with the Bay Area Rapid Transit SFO Airport Extension. 17. Report regarding a resolution approving an amendment to the letter of engagement with Squire Patton Boggs to provide national advocacy and policy advisory services to June 30, 2019 for an additional $110,500, in a total amount not to exceed $240,000 and authorizing the City Manager to execute an amendment to the current letter of engagement. (Mike Futrell, City Manager) 17a. Resolution No. 104 -2018 approving a second extension to the letter of engagement with Squire Patton Boggs to provide national advocacy and policy advisory services until June 30 2019 for an additional $110,500, in a total amount not to exceed $240,000 and authorizing the City Manager to execute an amendment to the current letter of engagement. REGULAR CITY COUNCIL MEETING JUNE 27, 2018 MINUTES PAGE 12 18. Report regarding a resolution identifying the terms and conditions for Fire Department response away from the City of South San Francisco, their official duty station, and assigned to an emergency incident authorized by the Governor's Office of Emergency Services, State of California. (Jess Magallanes, Fire Chief) 18a. Resolution No. 105 -2018 identifying the terms and conditions for Fire Department response away from the City of South San Francisco, their official duty station, and assigned to an emergency incident authorized by the Governor's Office of Emergency Services, State of California. 19. Report regarding a resolution approving a services agreement with Peterson Power Systems of San Leandro, California for the maintenance of the Emergency Standby Generators, 480V Utility /Generator Paralleling Switchgear and Cogeneration Engine Generator at the Water Quality Control Plant for three years in an amount not to exceed $225,000 per year, beginning fiscal year 2018 -19. (Brian Schumacker, Water Quality Control Plant Superintendent) 19a. Resolution No. 106 -2018 approving a services agreement with Peterson Power Systems of San Leandro, California, for the maintenance of the Emergency Standby Generators, 480V Utility /Generator Paralleling Switchgear and Cogeneration Engine Generator at the Water Quality Control Plant for three years in an amount not to exceed $225,000 per year, beginning fiscal year 2018 -2019. 20. Report regarding a resolution approving interim spending authority for the first 90 days of Fiscal Year 2018 -19. (Richard Lee, Director of Finance) 20a. Resolution approving interim spending authority for the first 90 days of Fiscal Year 2018- 19. Item not heard. 21. Report regarding a resolution approving Budget Amendment No. 18.033, transferring budget appropriations from the General Fund to the Oyster Point Development Fund in the amount of $80,500. (Richard Lee, Director of Finance) 21a. Resolution No. 107 -2018 approving Budget Amendment No. 18.033, transferring budget appropriations from the General Fund to the Oyster Point Development Fund in the amount of $80,500. 22. Report regarding a resolution authorizing the City of South San Francisco to contribute certain employees' share of Old -Age, Survivors and Disability Insurance Program contributions for tax years 2015, 2016, 2017, and 2018 through the pay period ending June 28, 2018. (Richard Lee, Director of Finance, and Leah Lockhart, Director of Human Resources) 22a. Resolution No. 108 -2018 authorizing the City of South San Francisco to contribute certain employees' share of Old -Age, Survivors and Disability Insurance Program contributions for tax years 2015, 2016, 2017, and 2018 through the pay period ending June 28, 2018. 23. Report regarding a resolution approving the Fiscal Year 2018 -19 Investment Policy. (Richard Lee, Director of Finance) 23a. Resolution No. 109 -2018 approving the Fiscal Year 2018 -19 Investment Policy. 24. Report regarding a resolution approving Amendment No. 21 to the Professional Services Agreement with Meyers, Nave, Riback, Silver and Wilson. (Mike Futrell, City Manager) REGULAR CITY COUNCIL MEETING JUNE 27, 2018 MINUTES PAGE 13 24a. Resolution No. 110 -2018 approving Amendment No. 21 to the Professional Services Agreement with Meyers, Nave, Riback, Silver and Wilson. 25. Report regarding adoption of an Ordinance amending Chapter 4.20 of the South San Francisco Municipal Code concerning the Transient Occupancy Tax. (Richard Lee, Finance Director) 25a. An Ordinance No. 1555 -2018 of the City Council of the City of South San Francisco amending Chapter 4.20 of the South San Francisco Municipal Code concerning the Transient Occupancy Tax. 26. Report regarding adoption of an Ordinance amending South San Francisco Municipal Code Chapter 6.16 to adopt a cannabis business license tax. (Richard Lee, Director of Finance) 26a. An Ordinance No. 1556 -2018 amending South San Francisco Municipal Code Chapter 6.16 to adopt a cannabis business license tax. 27. Report regarding adoption of an Ordinance amending Chapter 4.04.080 of the South San Francisco Municipal Code pertaining to open market procedures. (Richard Lee, Director of Finance) 27a. Ordinance No. 1557 -2018 of the City Council of the City of South San Francisco amending Section 4.04.080 of the South San Francisco Municipal Code, pertaining to open market procedures. Item No. 24: Mayor Normandy stated that as of 2017, state law requires every city council, and other legislative bodies, to orally report a summary of proposed actions on salaries, salary schedules, or fringe benefits of executive -level employees. Before the Council is approval of contract amendment No. 21 with Meyers Nave, which modifies the amount paid by the City to Meyers Nave for City Attorney services. The proposed amendment modifies the amount paid by the City for "Basic Services" and "Special Services" as defined in the current Professional Services Agreement. The adjustments to the hourly rates increase would be approximately a 3% increase in the rates charged for Fiscal Year 2018 -19 and for Fiscal Year 2019- 2020. The only proposed rate adjustments that would be greater than a 3% increase is the increase for Principals on litigation matters and for Senior Principals on cost recovery matters. Item No. 11: In response to a question from Mayor Pro Tem Matsumoto, Finance Director Lee advised the fundraiser for the Community Civic Campus Library space was being funded through the City Manager's Office because the Assistant City Manager oversees the project for the City. The City Manager responded to the Mayor Pro Tem's question regarding a $3 Million payment to the South San Francisco Unified School District by advising that the $ 3million represented the District's 44% share of the sale proceeds for the PUC property. Parks and Recreation Director Ranals responded to a question from the Mayor Pro Tern regarding a $3000 payment for senior meals by advising that meals are provided daily in the adult day care program and meals are provided at various times through the week for seniors at Magnolia Center generally. Finance Director Lee later advised the $3000 covered 373 meals for the month of May. Item No. 15: In response to a question from Councilman Addiego regarding her recommendation with respect to the duration of the agreement with Du -All, Human Resources Director Lockhart REGULAR CITY COUNCIL MEETING JUNE 27, 2018 MINUTES PAGE 14 advised the safety program was a long -term commitment. The effort went beyond training of employees to cultivate a culture of safety. Accordingly, a 3 -4 year learning curve was anticipated. Item No. 16: In response to a question from Mayor Pro Tem Matsumoto regarding the City's involvement in the BART SFO extension, City Manager Futrell advised two (2) sanitary sewer utility lines went through the BART tunnel. These segments would be removed and replaced. Item No. 17: Mayor Pro Tem Matsumoto queried the relationship of the flat rate and not to exceed amounts stated in the contract amendment for Squire Patton Boggs. City Manager Futrell advised the amount includes $22,000 for expenses. Historically these charges have been minimal encompassing copying. Unused portions are credited back to the City. Item No. 18: In response to a question from Councilman Addiego, Fire Chief Magallanes advised the Department reviewed the authorized personnel list with respect to an emergency response on behalf of the Governor's Office of Emergency Services. In so doing, it caught positions that had changed. This would have impacted the City if these personnel were deployed prior to making the changes requested for authorization this evening. Item No. 18: Plant Superintendent Schumacker responded to a question from Councilman Addiego advising that outsourcing the generator maintenance function was more cost effective for the City due to the salary competition for qualified personnel in the private sector. Item No. 22: Finance Director Lee advised this item would not be brought back once the clean -up functions for HCM specified in the resolution are accomplished. Item No. 25: The Mayor Pro Tem requested that the ballot language be reconsidered. Item No. 26: In response to a question from Mayor Pro Tem Matsumoto, City Manager Futrell confirmed changes were made to the ordinance to accomplish the I% revisions Council requested at its June 13, 2018 regular meeting. Motion—Councilman Addiego /Second — Councilman Gupta: to approve the Consent Calendar. Approved by the following roll call vote: AYES: Councilmen Addiego and Gupta, Mayor Pro Tem Matsumoto and Mayor Normandy; NAYS: None; ABSTAIN: None; ABSENT: Councilman Garbarino. ITEMS FROM COUNCIL - COMMITTEE REPORTS AND ANNOUNCEMENTS In response to a question from Mayor Pro Tem Matsumoto, Finance Director Lee advised the City Clerk was no longer included in the Executive Management email distribution list as it was an elected position. Councilman Addiego announced news from the Sister Cities Organization that the group would join the Italian Heritage Parade in North Beach, San Francisco in October. Mayor Tambolini of Lucca, Italy would travel here with other dignitaries to join the parade. Mayor Normandy requested that the meeting be adjourned in honor of Cynthia Smith. REGULAR CITY COUNCIL MEETING JUNE 27, 2018 MINUTES PAGE 15 ADJOURNMENT Being no further business, Mayor Pro Tem Matsumoto adjourned the meeting at 9:59 p.m. in honor of Cynthia Smith. Approved by: Liza ormandy, Mayor City of South San Francisco REGULAR CITY COUNCIL MEETING JUNE 27, 2018 MINUTES PAGE 16