HomeMy WebLinkAboutMinutes 2018-06-13 @7:00WEDNESDAY, JUNE 13, 2018
7:00 p.m.
CALL TO ORDER Time: 7:04 p.m.
ROLL CALL Present: Councilmembers Addiego, Garbarino, and Gupta,
Mayor Pro Tern Matsumoto and Mayor Normandy.
PLEDGE OF ALLEGIANCE
Mariano Gonzalez led the pledge of allegiance.
AGENDA REVIEW
City Manager Futrell requested Item 1 be postponed to June 20, to all the employees to be present.
ANNOUNCEMENTS FROM STAFF
None.
PRESENTATIONS
Presentation of New Employees. (Mich Mercado, Human Resources Manager)
Continued to June 20, 2018.
2. Presentation of Certificate of Recognition to K9 Sergeant Taker for his outstanding military
service to South San Francisco and our nation and recently receiving a United States Marine
Corp Honorable Discharge with Medal at a special dinner reception and ceremony in
Washington, D.C. (Liza Normandy, Mayor)
Mayor Normandy presented K9 Sergeant Taker with a certificate of Honorable Discharge
from the United States Marine Corp.
General Zuniga thanked the City of South San Francisco and its residents and presented
Mayor Normandy and the City Council with a certificate of recognition for Sergeant Taker's
honorable discharge and medals.
3. Recognition of Ziqi Li as the 2018 Jack Drago Cultural Arts Commission Youth Art
Scholarship Award Recipient (Liza Normandy Mayor)
MINUTES
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WEDNESDAY, JUNE 13, 2018
7:00 p.m.
CALL TO ORDER Time: 7:04 p.m.
ROLL CALL Present: Councilmembers Addiego, Garbarino, and Gupta,
Mayor Pro Tern Matsumoto and Mayor Normandy.
PLEDGE OF ALLEGIANCE
Mariano Gonzalez led the pledge of allegiance.
AGENDA REVIEW
City Manager Futrell requested Item 1 be postponed to June 20, to all the employees to be present.
ANNOUNCEMENTS FROM STAFF
None.
PRESENTATIONS
Presentation of New Employees. (Mich Mercado, Human Resources Manager)
Continued to June 20, 2018.
2. Presentation of Certificate of Recognition to K9 Sergeant Taker for his outstanding military
service to South San Francisco and our nation and recently receiving a United States Marine
Corp Honorable Discharge with Medal at a special dinner reception and ceremony in
Washington, D.C. (Liza Normandy, Mayor)
Mayor Normandy presented K9 Sergeant Taker with a certificate of Honorable Discharge
from the United States Marine Corp.
General Zuniga thanked the City of South San Francisco and its residents and presented
Mayor Normandy and the City Council with a certificate of recognition for Sergeant Taker's
honorable discharge and medals.
3. Recognition of Ziqi Li as the 2018 Jack Drago Cultural Arts Commission Youth Art
Scholarship Award Recipient (Liza Normandy Mayor)
Cultural Arts Commissioner Florida Ventura presented Ziqi Li with the 2018 Jack Drago
Cultural Arts Commission Youth Art Scholarship Award and invited the Council to view the
art work in the atrium.
4. Presentation of Certificates of Recognition to Al Banfield, Dr. Mark Barradas, Mariano
Valentin Gonzalez, Josh McFall, and Isaac Montellano for their participation in the City's
2018 Memorial Day Program. (Liza Normandy, Mayor)
Mayor Normandy presented Al Banfield, Dr. Mark Barradas, Mariano Valentin Gonzalez,
and Josh McFall, and Isaac Montellano who was unable to attend, with personalized
Certificates of Recognition for their participation in the City's 2018 Memorial Day Program.
5. Presentation of a proclamation recognizing June as LGBT Pride Month. (Karyl Matsumoto,
Mayor Pro Tgmpore)
Mayor Pro Tern Matsumoto read the proclamation recognizing June as LGBT Pride Month.
RECESS
Mayor Normandy recessed the Regular Meeting at 7:11 p.m. and convened the Special
Meeting. The Regular Meeting reconvened at 7:53 p.m. with all Councilmembers present.
PUBLIC COMMENTS
Douglas Whyte discussed his desire to add to his building on Baden and described his experiences
with the permitting process and the Parkland Acquisition and Construction fees. He requested
Council review the measure.
COUNCIL COMMENTS /REQUESTS
Councilmember Garbarino requested the meeting be adjourned in memory of Dave Neuman, a local
businessman.
Mayor Pro Tem Matsumoto requested an update of the South Airport Bridge Replacement Project.
Public Works Director Kim provided an update on the South Airport Bridge Replacement Project,
including project specifics, measures to improve traffic congestion around the project, proposed
timeline and construction hours. City Manager Futrell discussed his conversation with Genentech
regarding potential cost coverage and that contract negotiations were still underway to allow for
24/7 and weekend work.
Mayor Pro Tern Matsumoto discussed the Home for All program and requested the Inclusionary
Act for Rentals be expedited to accommodate residents. City Manager Futrell stated the Housing
Subcommittee would discuss mandating rental units to include affordable units. Councilmember
Garbarino suggested reviewing the City's granny unit ordinance. Mayor Pro Tern Matsumoto
requested information on options for auxiliary dwelling units be included in the quarterly
newsletter.
Councilmember Garbarino confirmed with City Attorney Rosenberg that State legislation would
address auxiliary dwelling units. City Manager Futrell stated that the information would be in the
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MINUTES PAGE 2
August Newsletter and he suggested a presentation to Council to provide more information.
Councilmember Addiego stated the California Water Service Company had submitted a filing to
request a decrease in water rates before the CPUC that would become effective July 1St. He also
noted the passing of Jackie Gibbs and requested the meeting be adjourned in her memory.
Councilmember Gupta discussed the Home for All program and a handbook on how to assess a
second dwelling unit for the average homeowner.
Mayor Normandy thanked Mayor Pro Tem Matsumoto for chairing the last two meetings and
thanked Council, staff and residents for their condolences for her mom's passing. She thanked staff
that participated in the Celebrity Basketball game. She thanked Leslie Arroyo for putting together
the City Address and requested Officer Nuti be recognized for his efforts at the Police Olympics.
PUBLIC HEARING
6. A report regarding introduction of an ordinance to establish the Mission Road Underground
Utility District (CIP project no. st1702). (Eunejune Kim, Director Public Works / Kathleen
Phalen, Consultant)
(Staff Recommendation: Open the public hearing and continue to the regular meeting of July
25, 2018)
6a. Ordinance establishing the Mission Road Underground Utility District (CIP Project
no. st1904)
Mayor Normandy opened the public hearing with the request from staff to continue July 25,
2018.
City Manager Futrell announced the community meeting at Sunshine Gardens on July 2,
2018, at Sunshine Gardens Elementary.
CONSENSUS
By consensus, the Council continue the item to July 25, 2018.
LEGISLATIVE BUSINESS
7. Report regarding consideration of a ballot measure to adopt an Ordinance amending Chapter
4.20 of the South San Francisco Municipal Code in order to initially increase the City's
Transient Occupancy Tax (TOT) by 2% effective January 1, 2019, and authorizing an
additional 1 % increase each subsequent January 1 up to a maximum of 14% for unrestricted
general revenue purposes, subject to the approval of the voters, and adopting a resolution
establishing November 6, 2018 as the date for a municipal election on the proposed ballot
measure. (Mike Futrell, City Manager and Richard Lee, Director of Finance)
7a. An ordinance 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.
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MINUTES PAGE 3
7b. Resolution establishing November 6, 2018 as the date for a municipal election on a
proposed ballot measure to adopt an Ordinance amending Chapter 4.20 of the South
San Francisco Municipal Code in order to initially increase the City's Transient
Occupancy Tax (TOT) rate by two percent (2 %) effective January 1, 2019, and
authorizing an additional one percent (1 %) increase each subsequent January 1 up to a
total maximum of fourteen percent (14 %) for unrestricted general revenue purposes,
subject to the approval of the voters; establishing policies and procedures in
connection with such election; and requesting the Board of Supervisors of the County
of San Mateo consolidate the election with the statewide general election pursuant to
section 10403 of the Elections Code.
City Manager Futrell discussed the study session in January 2018 regarding the hotel tax,
transient occupancy tax (TOT).
Director of Finance Lee explained the last TOT increase for the City and other cities
considering a TOT increase. He clarified the proposed ballot measure to increase the TOT
and request for Council to designate a Councilmember to file an argument in favor of the
ballot measure.
Councilmember Gupta inquired on the state legislation superseding Council's action on the
item. City Attorney Rosenberg explained that the ballot measure would be valid if approved
by two - thirds, even if the State challenge was upheld. Councilmember Gupta asked the
benefit to the City of a General Fund ballot measure. City Manager Futrell stated the
proposed measure was structured to give Council the flexibility to meet the needs of the
community. In response to Councilmember Gupta, Director of Finance Lee explained the
current and proposed tax rates and 1.5% for the conference center.
Mayor Pro Tern Matsumoto stated the $2.50 per room night was to pay down the debt of the
conference center. Councilmember Addiego stated that the debt would be cleared at the end
of the year.
Councilmember Addiego discussed his recent trip and the implications TOT on tourism. He
stated that he would be comfortable increasing the rate over a span of a few years.
Motion — Mayor Pro Tern Matsumoto / Second — Councilmember Gupta: to approve Item 7a.
Approved by roll call vote:
Yes: 5 - Mayor Liza Normandy, Mayor Pro Tem Karyl Matsumoto, Councilmember Richard
Garbarino, Councilmember Gupta, and Councilmember Addiego
Motion - Councilmember Garbarino / Second - Councilmember Addiego: to approve Item 7b, with
Councilmember Garbarino writing the argument. Approved by roll call vote:
Yes: 5 - Mayor Liza Normandy, Mayor Pro Tern Karyl Matsumoto, Councilmember Richard
Garbarino, Councilmember Gupta, and Councilmember Addiego
8. Report regarding a ballot measure to adopt an Ordinance amending Chapter 6.16 of the
South San Francisco Municipal Code to adopt a cannabis business license tax, subject to the
approval of the voters, and adopting a resolution establishing November 6, 2018 as the date
for a municipal election on the proposed ballot measure. (Mike Futrell, City Manager and
Richard Lee, Director of Finance).
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MINUTES PAGE 4
8a. An ordinance amending South San Francisco Municipal Code Chapter 6.16 to adopt a
cannabis business license tax.
8b. Resolution establishing November 6, 2018 as the date for a municipal election for a
proposed ballot measure seeking voter approval to amend Chapter 6.16 to the South
San Francisco Municipal Code to adopt a cannabis business license tax; establishing
policies and procedures in connection with such election, and requesting the Board of
Supervisors of the County of San Mateo consolidate the election with the statewide
general election pursuant to section 10403 of the Elections Code.
Director of Finance Lee presented a report including background of AUMA, Senate Bill 94,
and cannabis use legislation in the City of South San Francisco. He clarified the business
license tax rate and explained variations in tax rates due to profit margins in each cannabis
operation. He discussed State Excise Taxes and revenue to be generated for the City.
Councilmember Garbarino inquired about the senate bill regarding distribution and tax rates
in other cities. Director of Finance Lee stated staff would follow up to determine the effects
of the senate bill and stated he would provide Council with information regarding other
cities tax rates via memo.
Councilmember Gupta inquired about the $8 million market valuation. Director of Finance
Lee stated he could provide the cannabis consultants analysis but he found the calculation
logical.
Mayor Pro Tem Matsumoto suggested changing the verbiage of the proposed measures to
something more creative.
Councilmember Addiego inquired on the range of $400,000 to $700,000 in the analysis.
Director of Finance Lee explained that the tax revenue was dependent on the number of tax
operators and the proposition. Councilmember Addiego questioned why there was a
minimum number designated to the potential tax rate. Attorney Rosenberg explained the
requirement for an estimation per the Elections Code.
Mayor Normandy stated she would support the item as long as the percentages were
reasonable.
Councilmember Addiego asked the excise tax for delivery of cannabis. Director of Finance
Lee stated the state excise tax for retailer, non -store front was 15 %. Councilmember
Addiego expressed concern with the impact of the tax on the cannabis market.
Motion — Councilmember Addiego / Second — Councilmember Garbarino: to approve Item 8a.
Approved by roll call vote:
Yes: 5 - Mayor Liza Normandy, Mayor Pro Tem Karyl Matsumoto, Councilmember Richard
Garbarino, Councilmember Gupta, and Councilmember Addiego
Motion — Councilmember Addiego / Second — Councilmember Garbarino: to approve Item 8b, with
Councilmember Garbarino writing the argument. Approved by roll call vote:
Yes: 5 - Mayor Liza Normandy, Mayor Pro Tem Karyl Matsumoto, Councilmember Richard
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MINUTES PAGE 5
Garbarino, Councilmember Gupta, and Councilmember Addiego
RECESS
Mayor Normandy called a recess at 8:38 p.m. The meeting reconvened at 8:49 p.m. with all
Councilmembers present.
Motion — Councilmember Addiego / Second — Mayor Normandy: to reconsider the votes on Items
8a and 8b. Approved by roll call vote:
Yes: 5 - Mayor Liza Normandy, Mayor Pro Tern Karyl Matsumoto, Councilmember Richard
Garbarino, Councilmember Gupta, and Councilmember Addiego
Mayor Pro Tem Matsumoto asked about taxes in other cities in the County. Director of Finance Lee
stated Half Moon Bay and San Carlos were considering cannabis taxes. Mayor Pro Tern Matsumoto
questioned the potential influx of cannabis businesses in South San Francisco. City Manager Futrell
stated many San Mateo County cities still had moratoriums on cannabis business, some prohibited
and some were considering a similar cannabis business tax. Director of Finance Lee stated one
business application had been received by the City. Mayor Pro Tern Matsumoto expressed concern
that South San Francisco would become the home base of cannabis business and impact on staff.
Director of Finance Lee explained the cannabis cost recovery fees including the application fee,
annual permit fee, and inspection fees for cultivation fees. City Manager Futrell discussed the study
to ensure cost recover and consultant's recommendation for the tax.
Councilmember Addiego inquired on whether the tax rate could be reset at a later point. Director of
Finance Lee stated a I% tax rate would bring in $188,000 per year. City Manager Futrell stated the
tax rate could be changed every year if there were unforeseen impacts that the fees would not cover.
In response to Councilmember Gupta, Director of Finance Lee explained the word limitation on the
ballot language. Councilmember Addiego stated that the ballot contained an abbreviated version of
the ordinance. City Attorney Rosenberg stated voters would have access to a copy of the ordinance
in the voter's guide, but the ballot could only contain 75 words. He explained that the ballot could
be revised to contain the one to five percent tax rate.
The Council discussed its preferred as a range in the ordinance and determined to change the
minimum of gross receipts to one percent and leave the maximum at five.
City Attorney Rosenberg explained the language modifications for the ordinance.
Motion — Councilmember Gupta / Second — Councilmember Addiego: to approve Item 8a, as
amended.
Yes: 4 - Mayor Liza Normandy, Councilmember Richard Garbarino, Councilmember Gupta, and
Councilmember Addiego. No: 1 - Mayor Pro Tern Karyl Matsumoto
City Attorney Rosenberg suggested revising the ballot measure language as well. He proposed
revisions to the resolution.
In response to Councilmember Addiego, Director of Finance Lee stated that $100,000 would pertain
to five cannabis operators and his estimate of $180,000 referred to nine cannabis operators.
Motion — Councilmember Addiego / Second — Councilmember Gupta: to approve the revised
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MINUTES PAGE 6
resolution in Item 8b.
Yes: 4 - Mayor Liza Normandy, Councilmember Richard Garbarino, Councilmember Gupta, and
Councilmember Addiego. No: 1 - Mayor Pro Tern Karyl Matsumoto
ADMINISTRATIVE BUSINESS
9. Report regarding a resolution authorizing the City Manager to execute Amendment No. 1 to
the professional services agreement with Tedford's in a total amount not to exceed
$170,000, recognizing that $63,528.26 has been paid to date for Human Capital
Management System project management services and extending the term of the agreement
to December 31, 2018 (Richard Lee, Director of Finance)
9a. Resolution authorizing the City Manager to execute Amendment No. 1 to the
professional services agreement with Tedford's in a total amount not to exceed
$170,000, recognizing that $63,528.26 has been paid to date for Human Capital
Management System (HCMS) project management services and extend the term of the
agreement to December 31, 2018 (Richard Lee, Director of Finance)
City Manager Futrell introduced new Human Resource Director Leah Lockhart.
Director of Finance Lee presented an overview of the Human Capital Management System.
He explained the agreement history with Tedford's and the use of the funds that were
requested by staff. He acknowledged, thanked and expressed gratitude to the Human
Capital Management team.
Mayor Pro Tern Matsumoto addressed her previous comments regarding the HCMS project
and the punctuality of its completion. Director of Finance Lee explained the extra funds
were carryover from the contract with the previous project manager.
In response to Councilmember Gupta, Director of Finance Lee explained that the scope of
the work had not change and that the software vendor was different from consultant. He
stated the scope of service would be changed to include that the project be seen through
fruition.
In response to Mayor Pro Tern Matsumoto, Director of Finance Lee stated the software
developer and administrative partners were working together to come up with a common
set of checks and balances. He stated a natural language query database existed and staff
was working to build a relationship with the system to make it better suited to the City. He
stated the new system would be a vast improvement over the old system.
Mayor Normandy voiced her support for the item and discussed her familiarity human error
involving pay.
Motion - Councilmember Gupta / Second - Councilmember Garbarino: that this Resolution, Item 9
and 9a.
Approved by roll call vote:
Yes: 5 - Mayor Liza Normandy, Mayor Pro Tem Karyl Matsumoto, Councilmember Richard
Garbarino, Councilmember Gupta, and Councilmember Addiego
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10. Report regarding a resolution accepting a letter from Measure W Citizens' Oversight
Committee independently verifying FY 2016 -17 audited financials. (William Zemke,
Measure W Citizens' Oversight Committee Chair)
10a. Resolution accepting a letter from the Measure W Citizens' Oversight Committee
independently verifying Fiscal Year 2016 -17 audited financials.
Director of Finance Lee introduced the Measure W Citizens' Oversight Committee and
explained Staff's updates for Council and the Committee and independent verification from
the Citizens' Oversight Committee to Council. He also thanked Citizens' Oversight
Committee for their service to the community.
Measure W Citizens' Oversight Committee Chair Zemke verified that the Committee had
received the auditor's report and the Measure W funds were appropriately spent on Measure
W purposes.
Mayor Pro Tern Matsumoto described the information that was included in the auditor's
report and suggested providing that information online and potentially removing it from
Council's binders to save resources and staff time. She suggested expanding the
responsibility of the Citizens' Oversight Committee to help Council with burdensome tasks.
Chair Zemke explained the Committee's responsibility of overseeing the auditor and
financial report. He stated the Committee would be open to helping Council in any way
possible if Council wished to expand its role.
Councilmember Gupta concurred with Mayor Pro Tem Matsumoto in that the Committee
was made up of valuable and experienced members but did not want to overload the
Committee in the case that their responsibilities become more complicated. He suggested
reviewing the membership before expanding the Committee's responsibilities.
Councilmember Garbarino stated that the Committee's responsibilities would become more
complex in further phases of the project.
Mayor Normandy thanked Measure W Citizens' Oversight Committee Chair Zemke for his
patience.
Mina Richardson voiced her concern that the sales tax would go towards the Civic Campus
and asked if the City had made progress in funding for the project.
The Council did not take action on this item.
CONSENT CALENDAR
11. Motion to approve the Minutes from the meeting of May 23, 2018.
12. Motion confirming payment registers for June 13, 2018. (Richard Lee, Director of Finance)
13. Report regarding a resolution authorizing the acceptance of a $5,000 donation to the Parks
and Recreation Department from Bimbo Bakeries USA to purchase new equipment for the
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MINUTES PAGE 8
Aquatics Program at Orange Memorial Pool. (Sharon Ranals, Director, Parks and Recreation
Department)
13a. Resolution authorizing the acceptance of a $5,000 donation to the Parks and
Recreation Department from Bimbo Bakeries USA to purchase new equipment for the
Aquatics Program at Orange Memorial Pool.
14. Report regarding a resolution authorizing the acceptance of a $1,000 donation to the Parks
and Recreation Department from Cavallini Papers and Company, Inc. for improvements to
the street median located on Eccles Avenue at Oyster Point Boulevard. (Sharon Ranals,
Director, Parks and Recreation Department)
14a. Resolution authorizing the acceptance of a $1,000 donation to the Parks and
Recreation Department from Cavallini Papers and Company, Inc. for improvements to
the street median located on Eccles Avenue at Oyster Point Boulevard.
15. Report regarding a resolution calling a general election, setting candidate statement
requirements pursuant to section 13307 of the California Elections Code, requesting: (1) that
the Board of Supervisors of San Mateo County consolidate the general election with the
regular election to be held on November 6, 2018; and (2) that the County Registrar perform
certain election services in connection with such election including conducting the
November 6, 2018 election for the City of South San Francisco; and (3) authorizing the City
Manager to reimburse the County for election service costs associated with the November 6,
2018 Election (Krista Martinelli, City Clerk).
15a. Resolution calling a general election, setting candidate statement requirements
pursuant to Elections Code Section 13307, and requesting that the Board of
Supervisors of San Mateo County consolidate a general municipal election with the
regular election to be held on November 6, 2018; requesting that the County Registrar
perform certain election services in connection with such election, and authorizing the
City Manager to reimburse the County for said election services.
The Deputy City Clerk duly read the Consent Calendar, after which Council voted and engaged in
discussion of specific items as follows:
Councilmember Garbarino pulled Item 14.
Item 14: Councilmember Garbarino asked what improvements the $1000 donation would be used
for and why it was in Parks and Recreation rather that Public Works. Parks and Recreation Director
Ranals explained that the donation was used for median landscaping on Eccles Street.
Motion - Councilmember Garbarino / Second - Councilmember Gupta: to approve Items 11 through
15a. Approved by roll call vote:
Yes: 5 - Mayor Liza Normandy, Mayor Pro Tem Karyl Matsumoto, Councilmember Richard
Garbarino, Councilmember Gupta, and Councilmember Addiego
ITEMS FROM COUNCIL — COMMITTEE REPORTS AND ANNOUNCEMENTS
None.
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CLOSED SESSION
16. Closed Session: Conference with Real Property Negotiators (Pursuant to Government Code
Section 54956.8) Properties: Vacant properties on the south end on the north slope of Sign
Hill (APNs: 012 - 351 -050 and 012 - 121 -130) Agency Negotiators: Mike Futrell, City
Manager Negotiating Parties: City of South San Francisco and Ross H. Liberty, Cheryl A.
and Ronald W. McAgehee Trust Under Negotiation: Price and Terms
17. Closed Session: Conference with Labor Negotiators (Pursuant to Government Code Section
54957.6) Agency designated representatives: Mike Futrell, City Manager Unrepresented
employee: City Attorney
RECESS
Mayor Normandy recessed the meeting to Closed Session.
ADJOURNMENT
Being no further business, Mayor Normandy adjourned the meeting at 8:57 p.m. in memory of
Dave Neuman and Jackie Gibbs.
Submit4edb
Gabriel Rodriguez, Deputy City Clerk
City of South San Francisco
REGULAR CITY COUNCIL MEETING
MINUTES
Approved by:
Liza Normandy, Mayor
City of South San Francisco
JUNE 13, 2018
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