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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 o4S °��x'SAN��2 CITY COUNCIL H CITY OF SOUTH SAN FRANCISCO U p cgLIFOR��P REGULAR MEETING MUNICIPAL SERVICES BUILDING COUNCIL CHAMBERS 33 ARROYO DRIVE SOUTH SAN FRANCISCO, CA 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 REGULAR CITY COUNCIL MEETING JUNE 13, 2018 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. REGULAR CITY COUNCIL MEETING JUNE 13, 2018 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). REGULAR CITY COUNCIL MEETING JUNE 13, 2018 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 REGULAR CITY COUNCIL MEETING JUNE 13, 2018 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 REGULAR CITY COUNCIL MEETING JUNE 13, 2018 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 REGULAR CITY COUNCIL MEETING JUNE 13, 2018 MINUTES PAGE 7 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 REGULAR CITY COUNCIL MEETING JUNE 13, 2018 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. REGULAR CITY COUNCIL MEETING JUNE 13, 2018 MINUTES PAGE 9 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 PAGE 10