HomeMy WebLinkAboutMinutes 2018-07-25 @7:00MINUTES xsANF CITY COUNCIL
H CITY OF SOUTH SAN FRANCISCO
U O
c9lip REGULAR MEETING
MUNICIPAL SERVICES BUILDING
COUNCIL CHAMBERS
33 ARROYO DRIVE
SOUTH SAN FRANCISCO, CA
WEDNESDAY, JULY 25, 2018
7:00 p.m.
CALL TO ORDER Time: 7:00 p.m.
ROLL CALL Present: Councilmembers Addiego, Garbarino, Mayor Pro
Tern Matsumoto and Mayor Normandy.
Absent: None.
PLEDGE OF ALLEGIANCE
Led by Human Resources Director Lockhart.
AGENDA REVIEW
City Manager Futrell requested that Item No. 6 be moved up in the Agenda and heard under Item
No. 1 as a courtesy to Chandler Asset Management, which would be presenting Item No. 1 and was
the subject of the contract renewal at Item 6. The City Manager further advised that the applicant
on Item No. 2, Public Hearing, requested that the Hearing be moved to Council's September 12,
2018 Regular Meeting. The City Manager recommended opening the noticed Public Hearing and
continuing the item to the September 12, 2018 7:00 p.m. Regular Meeting. A postponement was
also requested for Public Hearing Item No. 3, which was recommended for hearing on August 8,
2018 at Council's 7:00 p.m. Regular Meeting.
Councilman Garbarino noted for the record that he would not be present at the September 12, 2018
Regular Meeting of the City Council.
Council agreed to the actions suggested by the City Manager.
ANNOUNCEMENTS FROM STAFF
None.
PRESENTATIONS
1. Presentation regarding update on the City of South San Francisco's investment portfolio (Carlos
Oblites, Jayson Schmitt, and Martin Cassell, Chandler Asset Management )
Finance Director Lee introduced Carlos Oblites and Jayson Schmitt of the City's investment adviser,
Chandler Asset Management to provide a scheduled update. The update pertained to the quarter
ended June 30, 2018. Mr. Oblites provided a PowerPoint Presentation summarizing market trends
and impacts on the City's investment portfolio. He began by providing a backdrop of forces in the
economy that shaped how the portfolio fared, beginning with a slide explaining that interest rates
are on the rise in the US due to economic growth. Economic growth further yielded a drop in
unemployment and slight inflation. While there has been a slowdown in recent months, real estate
values continue to rise and there are higher yields for fixed income investments. Mr. Oblites advised
the federal government is signaling the market that it may increase interest rates one or two more
times by the end of the year. Mr. Oblites next showed a slide depicting the portfolio's performance
between the quarters ended March 31, 2018 and June 30, 2018 yielding a total value of $97,655,133
up from $97,424,879.
In response to a question from Mayor Pro Tern Matsumoto, Mr. Schmitt advised that average
maturity at quarter close was 2.56 with a benchmark of 2.67.
Councilman Gupta queried the connection between the interest rate and Ca1PERS discount rate.
Mr. Schmitt responded that the Ca1PERS rate is impacted by interest rates similar to other entities.
For example, lower interest rates generally cause a corresponding decrease in the discount rate and
higher interest rates cause a an increase in the discount rate.
Councilman Addiego noted the significance of the City's credit rating given the potential for going
out to bond in connection with funding for the Community Civic Campus.
ADMINISTRATIVE BUSINESS
6. Report regarding a resolution authorizing the City Manager to execute Amendment No. 1 to the
Consulting Services Agreement with Chandler Asset Management (Richard Lee, Director of
Finance).
6a. Resolution No. 119 -2018 authorizing the City Manager to execute Amendment No. 1
to the Consulting Services Agreement with Chandler Asset Management (Richard
Lee, Director of Finance).
Finance Director Lee presented the staff report recommending that Council adopt a resolution
authorizing the City Manager to execute Amendment No. 1 to the Consulting Services Agreement
with Chandler Asset Management. Director Lee noted that Chandler has served as the City's
Investment Advisor since 2009. To facilitate ongoing due diligence, the City issued an RFP for
investment advisory services in April of 2018. In response to the RFP, the City received eight (8)
timely responses. Three (3) finalists were selected from amongst the eight (8) bidders. A panel
consisting of Finance Director Lee, City Treasurer Risso, East Palo Alto's Director of Finance, the
Redwood City Treasurer and the Deputy City Manager of the City of Half Moon Bay interviewed
the finalists. Chandler emerged as the highest rated bidder as a result of this process.
REGULAR CITY COUNCIL MEETING JULY 25, 2018
MINUTES PAGE 2
Mayor Pro Tern Matsumoto stated she had no problem with Chandler. She expressed concern about
the evaluation process which included professionals from financially troubled cities.
Councilman Addiego stated that while the cities in question might have financial difficulties related
to policy determinations by their respective leaders, the professionals' credentials were sound. The
Councilman further commended Chandler for its work on the City's behalf over the past nine (9)
years.
Councilman Gupta queried the attainability of an AAA Credit rating.
Finance Director Lee advised this issue would be looked at as part of the financing study related to
the Community Civic Campus.
Motion — Councilman Gupta/Second— Councilman Addiego: to approve Resolution No. 119 -
2018.Unanimously approved by roll call vote.
PUBLIC COMMENTS
None.
COUNCIL COMMENTS /REQUESTS
Councilman Addiego made note of the passing of former South San Francisco High School
longtime Baseball Coach, Bob Brian. He noted that Coach Brian imparted baseball skills to
generations of South San Francisco's youth.
Councilman Garbarino noted that his daughter had kept score for Coach Brian's teams.
Councilman Garbarino requested that the meeting be adjourned in honor of Eleanor Fourie.
The Councilmembers wished a happy 100th birthday to resident Evelyn Martin. Councilman
Garbarino noted her family was one of the 17 Portuguese families that created the Santo Cristo
Society 90 years ago.
Mayor Pro Tern Matsumoto invited the public to a community health and wellness event that would
take place on Saturday morning, July 28, 2018 at the Municipal Service Building Social Hall. She
also requested a tour of the Pinefino Development.
PUBLIC HEARING
2. Report recommending approval of an Amendment to the East of 101 Area Plan, a Zoning Text
Amendment, a Development Agreement and a Relocation Agreement to allow for the installation of
a 65 foot tall, double faced, digital billboard on property located at 180 S Airport in exchange for
removal of one double sided billboard along San Mateo Ave and one single sided billboard along El
Camino Real, together with other considerations. (Billy Gross, Senior Planner)
REGULAR CITY COUNCIL MEETING JULY 25, 2018
MINUTES PAGE 3
2a. Resolution making findings and determining that the 2018 Addendum to the 2015
Initial Study /Mitigated Negative Declaration is the appropriate environmental
document for the Outfront Media Digital Billboard Project.
2b. Ordinance making modifications to the South San Francisco Zoning Code related to
Signage Citywide.
2c. Resolution approving of an Amendment to the East of 101 Area Plan and a
Relocation Agreement to allow for the installation of a 65 foot tall, double faced,
digital billboard on property located at 180 S Airport in exchange for removal of one
double -sided billboard along San Mateo Ave (at Lowrie Ave) and one single -sided
billboard on El Camino Real north of Arroyo Blvd, together with other
considerations.
2d. Ordinance adopting a Development Agreement to allow for the installation of a 65
foot tall, double faced, digital billboard on property located at 180 S Airport in
exchange for removal of one double -sided billboard along San Mateo Ave (at Lowrie
Ave) and one single -sided billboard on El Camino Real north of Arroyo Blvd.
Public Hearing opened: 7:29 p.m.
Public Hearing closed: 7:29 p.m.
Motion — Councilman Addiego /Second— Councilman Garbarino to continue the public hearing to the
City Council's regular meeting of September 12, 2018 at 7:00 p.m. Unanimously approved by roll
call vote.
3. A report regarding an ordinance establishing the Mission Road Underground Utility District.
(Richard Cho, Senior Engineer and Kathleen Phalen, Project Manager, Swinerton
3a. Ordinance establishing the Mission Road Underground Utility District.
Public hearing opened: 7:30 p.m.
Public hearing closed: 7:30 p.m.
Motion — Councilman Garbarino /Second— Councilman Addiego: to continue the public hearing to
the City Council's regular meeting of August 8, 2018 at 7:00 p.m. Unanimously approved by roll
call vote.
ADMINISTRATIVE BUSINESS
4. Report regarding the Community Civic Campus quarterly update for Quarter 4 Fiscal Year 2017-
2018. (Marian Lee, Assistant City Manager and Dolores Montenegro, Kitchell Program Manager)
City Manager Futrell introduced the staff report regarding the Community Civic Campus quarterly
update for the Fourth Quarter of Fiscal Year 2017 -2018. Mr. Futrell recapped the Special City
Council Meeting of July 13, 2018. He noted that at that meeting a revised master plan and
schematic design were recommended by staff and discussed by Council. On that basis, the
following budget was recommended: $34,000,000 for program management and design;
REGULAR CITY COUNCIL MEETING JULY 25, 2018
MINUTES PAGE 4
$169,000,000 proposed for allocation to construct the base design package including site
preparation, hard /soft landscaping at $18,000,000, Police building with 81 fenced /walled surface
parking spaces $54,000,000, 75,000 gross sq. ft. of Library and Parks and Recreation buildings,
including shared atrium/lobby space $83,000,000. Finally, $14,000,000 reflected the construction
cost estimate for the optional design packages including: 1) 5,000 gross sq. ft. Community
Theatre /City Council Chamber $8,000,000; 2) Police parking canopy $2,000,000; and 3) Additional
soft and hard landscaping $4,000,000. The Fire Station estimated at $15,000,000 would be
designed, but built in a future phase when the Municipal Services Building site is sold to a
developer /interested party at a time to be determined. Mr. Futrell continued noting the cost
estimates include a 10% contingency, and annual construction cost escalation of 6% over the next
2.5 years, as a hedge against rising construction costs. Escalating construction costs continue to be
the highest risk to the project. As a further hedge against higher than expected construction costs,
the project would have multiple design packages to allow for further construction phasing, if
needed. Mr. Futrell next advised Council its preferred design attached to the staff report would cost
$217,000,000. As the recommended construction budget was $210,000,000 staff would pursue an
alternative /phased bidding plan to determine which variables might be added at a later time.
Councilman Addiego recapped the three (3) optional or variable items as follows: the community
Theatre /Council Chambers; Outdoor Space /Landscaping; and the Police Parking Canopy. The
Councilman stated he did not want to sacrifice the integrity of the Parks and Recreation, Library and
Police facilities for structured underground parking.
Mayor Pro Tem Matsumoto disagreed noting without structured underground parking, the facilities
would be surrounded by surface parking right in front of the buildings. She stated she would initiate
a fundraising campaign to secure the funds required to permit structured underground parking.
City Manager Futrell stated the $210,000,000 recommended budget was exclusive of fundraising.
Councilman Addiego believed it would be difficult to raise funds to support landscaping and
structured underground parking.
In response to a question from Mayor Pro Tem Matsumoto about the firmness of the budget
estimates, City Manager Futrell stated nothing was certain, but he believed if the $8 million
Community Theater /Council Chambers was postponed, the project could be accomplished with the
$210,000,000 budget. He expected the project to go out to bid in 18 months and cautioned that
construction costs increase $500,000 every month design is delayed.
City Manager Futrell requested direction from Council with respect to the underground parking
issue.
Mayor Pro Tem Matsumoto stated she misunderstood the direction at a meeting of the City Council
in February. She intended to solicit a petition of over 20,000 signatures in support of the
underground parking in order to preserve open space.
Councilman Addiego pointed out the extra $10,000,000 to secure underground parking outweighed
the $3,000,000 in open space it would yield.
Mayor Pro Tem Matsumoto stated she had always thought the Council agreed on structured
underground parking and the Police Canopy.
REGULAR CITY COUNCIL MEETING JULY 25, 2018
MINUTES PAGE 5
In response to a question from Council, City Manager Futrell sought information from Smith Group
as to the impact of a connected Council Chambers /Community Theater.
A Smith Group representative advised this option would save $3,000,000, but the City would lose
the option to phase the bid.
Mayor Normandy stated she believed the public would expect to see a building on the corner of
Chestnut and El Camino Real. She further pointed out that AGI -KASA would likely incorporate
open space in its very nearby design.
Mayor Normandy confirmed that a majority of Council sought a state of the art park and recreation,
library and police facility. It should be designed with surface parking with phased bidding options
for the Community Theater /Council Chambers, landscaping and Police canopy.
City Manager Futrell advised the anticipated surface parking included 220 spaces. Further an option
for solar in the future would be worked into the plans.
Kitchell Project Manager Montenegro advised Council there would be many more opportunities to
weigh -in and finalize decisions along the way.
5. Designation of Voting Delegate and up to Two Alternates for the 2018 League of California
Cities Annual Conference September 12 -14, Long Beach (Mike Futrell)
Motion — Councilman Gupta/Second— Councilman Addiego: to designate Councilman Garbarino as
the voting delegate and City Manager Futrell then Mayor Normandy as the alternate voting
delegates for the 2018 League of California Cities Annual Conference. Unanimously approved by
roll call vote.
7. Report regarding a resolution accepting a transfer of funds from San Mateo County in the amount
of $690,000 to purchase open space on Sign Hill, approving Budget Amendment No. 19.003,
ratifying the purchase of a 0.13 acre parcel at Diamond Avenue (APN 012 - 121 -130) and a grant of
a 20.43 acre parcel on Sign Hill (APN 012 - 351 -350), and authorizing the City Manager to accept
the grant deeds for the two properties upon close of escrow. (Richard Lee, Director of Finance)
7a. Resolution No. 120 -2018 accepting a transfer of funds from San Mateo County in
the amount of $690,000 to purchase open space on Sign Hill, approving Budget
Amendment No. 19.003, ratifying the purchase of a 0.13 acre parcel at Diamond
Avenue (APN 012 -121 -130) and a grant of a 20.43 acre parcel on Sign Hill (APN
012 - 351 -350), and authorizing the City Manager to accept the grant deeds for the
two properties upon close of escrow.
Director of Finance Lee presented the staff report recommending that Council adopt a resolution
accepting a transfer of funds from San Mateo County in the amount of $690,000 to purchase open
space on Sign Hill, approving Budget Amendment No. 19.003, ratifying the purchase of a 0.13 acre
parcel at Diamond Avenue and a grant of a 20.43 acre parcel on Sign Hill, and authorizing the City
Manager to accept the grant deeds for the two (2) properties upon close of escrow. Director Lee
explained the proposed resolution would accomplish a number of actions to secure the purchase of
property that would generate open space options on Sign Hill. The plan would add 20 acres of
REGULAR CITY COUNCIL MEETING JULY 25, 2018
MINUTES PAGE 6
permanent open space, including habitat preservation and walking trails. The Planning Commission
determined the proposed plan as consistent with the General Plan on July 19, 2018.
Motion —Mayor Pro Tem Matsumoto /Second — Councilman Garbarino: to approve Resolution No.
120- 2018.Unanimously approved by roll call vote.
CONSENT CALENDAR
8. Motion to approve the Minutes from the meetings of May 23, 2018 and July 11, 2018.
9. Motion confirming payment registers for July 25, 2018. (Richard Lee, Director of Finance)
10. Motion to cancel the regular meeting of the City Council for August 22, 2018.
11. Report regarding a motion to accept the construction improvements for the Grand Avenue
Pedestrian Improvements Project and West Orange Avenue /Centennial Way Pedestrian Beacon
Project as complete in accordance with plans and specifications (total construction cost of
$333,973). (Richard Cho, Sr. Civil Engineer)
12. Report regarding adoption of a resolution of intention to approve an amendment to the contract
between the Board of Administration of the California Public Employees' Retirement System and
the City of South San Francisco to increase Classic Safety member contributions to pension (Leah
Lockhart, Human Resources Director)
12a. Resolution No. 121 -2018 of Intention to Approve an Amendment to Contract
between the Board of Administration of the California Public Employees'
Retirement System and the City of South San Francisco.
Item No. 8: Councilman Garbarino requested that "Lyons" be changed to "Lions" in the July 11,
2018 Regular Meeting Minutes.
Item No. 9: In response to a question from Councilman Garbarino, Director of Finance Lee clarified
an interest payment.
Item No. 10: In response to a suggestion from Mayor Pro Tern Matsumoto, the Council determined
to leave the question of cancelling the second regular meeting in August open until the August 8,
2018 Regular Meeting.
Item No. 12: At the request of Council, City Manager Futrell explained the potential Ca1PERS
liability issue and noted the change in policy at the state level might bankrupt certain cities. The
present action was to amend the City's public safety MOUs to accommodate a greater contribution
by employees. This action, which had been approved by the public safety unions, would help the
City remain in good standing with respect to its PERS obligations.
Motion– Councilman Addiego /Second – Councilman Garbarino: to approve Consent Calendar Items
Nos. 8, 9, 11 and 12. Unanimously approved by roll call vote.
REGULAR CITY COUNCIL MEETING JULY 25, 2018
MINUTES PAGE 7
ITEMS FROM COUNCIL - COMMITTEE REPORTS AND ANNOUNCEMENTS
None.
ADJOURNMENT
Being no further business, Mayor Normandy adjourned the meeting at 8:58 p.m. in honor of Coach
Bob Brian and Eleanor Fourie.
by: Approved by:
f - Q
to a ' 11 , y Clerk Li a andy, Mayor
City of Sou San ncisco City of South San Francisco
REGULAR CITY COUNCIL MEETING
MINUTES
JULY 25, 2018
PAGE 8