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HomeMy WebLinkAboutMinutes 2018-07-13 @11:00MINUTES SANE CITY COUNCIL CITY OF SOUTH SAN FRANCISCO 1 �n U O SPECIAL MEETING �9crFRC��P MUNICIPAL SERVICES BUILDING COUNCIL CHAMBERS 33 ARROYO DRIVE SOUTH SAN FRANCISCO, CA WEDNESDAY, July 13, 2018 11:00 a.m. CALL TO ORDER Time: 11:04 a.m. ROLL CALL Present: Councilmembers Addiego, Garbarino and Gupta, Vice Mayor Matsumoto, and Mayor Normandy AGENDA REVIEW None. PUBLIC COMMENTS Received speaker card from Diane Ingalls but she did not want to read her comments out loud. She filled in the back of the speaker card and asked that we include her comments in the minutes. "Want to be as proud of today's library as I will be in the years beyond my life - growth with great emphasis on our youth. State of arts - latest and great Executive Director and staff. Fantastic for my 40 years here. Thanks." ITEMS FOR CONSIDERATION 1. Study Session regarding staff recommended Community Civic Campus Master Plan. (Marian Lee, Assistant City Manager and Smith Group JJR, Master Architect) Assistant City Manager Lee summarized the proposed meeting schedule, Council consideration of the proposed master plan, accomplishments to date, cost sensitivity, updated schedule, and community outreach. She reminded the Council of the need to develop a fundable master plan. Don Jerabek, Smith Group JJR, presented the three master plan options. He presented images showing the aesthetic character and resolution of the site in 3- dimentsional images. Mayor Normandy discussed the need for handicapped accessibility. Mr. Jerabek continued presentation of the three concepts. He reviewed the proposed Library and Parks and Recreation facilities. Councilmember Addiego requested the size of current facilities versus new construction. Mr. Jerabek stated the existing library was 26,000 square feet and would increase to 34,000 square feet. Assistant City Manager Lee stated the current square footage at the Library was 26,000 square feet, Parks and Recreation was 24,000 square feet; Council Chamber was 3,500 square feet and the Lobby /atrium was 3,300 square feet for a total of 57,000 square feet. Mr. Jerabek stated the proposed project included 34,000 square feet for the library, 34,000 square feet for Parks and Recreation, 5,000 square feet for the Council Chamber, and 2,000 square feet for the lobby, totaling 75,000 square feet. He summarized the desires of staff and the community. Councilmember Addiego asked how much area was dedicated to leasable and rentable space. Mr. Jerabek responded approximately 10,000 square feet. Mayor Pro Tem Matsumoto reminded the Council of other leasable spaces. Director Ranals clarified that the space was not exclusively rental space. Councilmember Addiego stated the proposal anticipated less than 30% growth for the library and the library had 500,000 visitors per year. Mr. Jerabek summarized the concept of shared space, civic presence, and inviting atmosphere. He discussed the proposal to build parking under the structure and community requests. He provided details on the proposed Police Station. Mayor Pro Tem Matsumoto asked why covered parking was $2 million more. Mr. Jerabek stated covered parking and photovoltaic cells cost $2 million. Councilmember Addiego asked about the 911 center. Chief Azzopardi stated the current facility allowed for eight stations but was functionally set up for four stations. He indicated the new plan created stations to reduce overhearing others and explained the use by other cities. Mayor Pro Tem Matsumoto discussed limited locker space. Chief Azzopardi stated they worked with the available space which was not adequate. Mayor Normandy asked about covered parking. Chief Azzopardi stated covered parking was necessary due to line of site. In response to Councilmember Garbarino, Chief Azzopardi stated the ten foot fence and covered parking would affect the line of site. Councilmember Garbarino suggested the possibility of a non - solid roof. Councilmember Addiego discussed the need for Police protection. He asked if a structure similar to the El Camino parking lot would be adequate. Don Jerabek discussed the proposed Fire Station. In response to Councilmember Addiego, City Manager Futrell stated it was unlikely that construction would begin in one and a half years. He stated the doors had been seismically retrofitted. He discussed the intent to sell the building and stated phased construction made sense. Fire Chief Magallanes explained the seismic retrofit and remodel. Councilmember Addiego requested revisiting the impact to service delivery with one fire station down. SPECIAL CITY COUNCIL MEETING JULY 13, 2018 MINUTES PAGE 2 Don Jerabek summarized the multimodal and access plan. Councilmember Gupta asked if the proposed design was based on 35% drive alone. Daniel Jacobson, Fehr and Peers, stated the current design considered the current needs. Councilmember Gupta asked why the current design was based on current needs if the goals of mod -split decreased drive alone numbers. Assistant City Manager Lee stated 220 spaces were based on current demand. Councilmember Gupta discussed the cost of constructing excess parking spaces. Mr. Jacobson explained there were currently 195 spaces and the survey found the total demand at 150 spaces, a 10% increase over current supply for a 30% larger building. He stated it was a policy decision to be made on the level of convenience for the level of cost. Councilmember Gupta requested the design team, Council and community think carefully on spending and goal attainment. Mayor Pro Tem Matsumoto expressed concern with the proposed parking needs and anticipated increased needs. Councilmember Garbarino discussed the inability to expand underground parking. Councilmember Addiego asked the cost of underground parking. Assistant City Manager Lee asked the team to outline unit costs per space. Alistair Roberts, Directional Logic, stated surface parking was $18,000 per space, $36,000 for structure spaces and $72,000 for underground parking. Mayor Pro Tem Matsumoto asked about loss of services with surface parking. Mr. Jerabek explained the width of the building, natural slope of the land, available parking and breaking point for underground parking. Mr. Jerabek discussed egress from Police and Fire during emergencies. Mayor Normandy called a recess at 12:22 p.m. The meeting resumed at 12:52 p.m. Assistant City Manager Lee discussed project cost estimates including area construction costs, variables contributing to the project cost escalation, means to address cost increases, LEED certification, project cost elements, open space benefits, covered Police Department parking, and additional 5,000 square feet for the library. Councilmember Addiego asked the cost of parking. Assistant City Manager Lee stated the net cost was $8 million. Councilmember Gupta asked the cost of separating the Council Chambers from the project for phasing. Mr. Roberts estimated $9 million. Assistant City Manager Lee clarified that the Council Chamber was the theater. Mayor Pro Tem Matsumoto stated she was willing to give up a separate Council Chamber and wanted three stories, underground parking and increased library space. Councilmember Addiego agreed with consideration of not having a separate Council Chamber /theater and using those funds for underground parking. SPECIAL CITY COUNCIL MEETING JULY 13, 2018 MINUTES PAGE 3 Mayor Pro Tem Matsumoto stated she thought three stories accommodated the additional 5,000 square feet. Councilmember Addiego asked how 5,000 additional square feet would be accommodated in a two story building. Mr. Jerabek stated the additional space could be accommodated with little impact to the massing. He stated it appeared that there was interest to learn the savings if the white box theater was pushed into the two story building. Councilmember Addiego stated Mayor Pro Tem Matsumoto was suggesting moving away from the theater and using those funds for underground parking. Assistant City Manager Lee stated the costs assumed construction from 2020 to 2022 and explained the assumed cost estimate escalation. Mayor Pro Tem Matsumoto discussed the use of prevailing wage and opportunity to guarantee costs. Assistant City Manager Lee discussed the intent to have the labor wage in place prior to going out to bid and estimated the PLA would be cost neutral. Mayor Pro Tem Matsumoto explained the purpose of the PLA. Director Lee presented the proposed funding plan including Measure W revenue and bonds. In response to Councilmember Addiego, Director Lee stated 100% of bonding capacity was $143 million. Mayor Pro Tem Matsumoto asked if State Revolving Fund could be used. Director Lee stated the IBank was the only available source and it provided no real advantage. Councilmember Addiego discussed efforts to understand funds and balances. Director Lee Asset stated the Seizure Fund balance was $2 million, Park In Lieu/Quimby Act Fund balance was $1.6 million, Internal Service Funds were current designated and it was not staff's recommendation to repurpose them. Councilmember Addiego stated it was not staff's recommendation but might get to the end goal. Mayor Pro Tem Matsumoto discussed the Library Foundation goal. Councilmember Addiego asked the annual increase for Asset Seizure. Director Lee provided amounts of income and expenditures in the Asset Seizure funds. Councilmember Addiego projected an additional $1 -2 million in Asset Seizure funds which could be used to cover the cost of the additional 5,000 square feet. Mayor Normandy asked about the Infrastructure Fund. Director Lee estimated $2.5 million of the General fund surplus of $4.2 million could be put into the Infrastructure Reserve. Councilmember Garbarino stated he requested a breakdown of fund balances and what could be used. Councilmember Addiego stated that was the third Councilmember requesting that information. Mayor Pro Tem Matsumoto discussed the potential impact of SBL Councilmember Garbarino concurred that Proposition 6 would impact projects. SPECIAL CITY COUNCIL MEETING JULY 13, 2018 MINUTES PAGE 4 City Manager Futrell stated staff had reviewed the available funds repeatedly and earmarked funds had specific purpose. He discussed the impact of the loss of SB 1 funds. He stated there was a solid funding plan for a $185 million project but a gap of $25 million for the $210 million plan. He discussed potential use of surplus funds and Library Foundation funds to fill the gap. Councilmember Addiego asked about $18 million for streets. Director Lee explained the bonding assumptions for the Five -year paving program. City Manager Futrell stated approximately $2.5 million in Measure W funding was not programmed which was a recession hedge. Councilmember Addiego discussed the proposed percentage of bonding capacity. Director Lee discussed the range of bonding capacity and stated the financial advisor could provide information on a specific capacity. Mayor Pro Tem Matsumoto asked the potential use of TOT revenues. City Manager Futrell estimated $5 million per year in additional revenue which was recommended to offset the increased cost of Police and Fire and Ca1PERS. He stated the ability to make a $210 million project. Councilmember Gupta stated he was fiscally more conservative and would like to hear form the public. Chief Azzopardi discussed the Seizure Account and freeze on release of funds. Mina Richardson questioned the debt repayment. Director Lee clarified the initial estimate for Measure W was $7 million. He explained that sales tax and district tax laws were different. He explained the anticipated $70 million accumulated to use towards the project. Ms. Richardson expressed concern with the white box development and questioned the need for a new fire station. Cynthia Marcopulos stated she was in favor of the plans and encouraged pursuing LEED certification. She suggested the Police building not be visible from the street. She indicated opposition to outdoor Zumba classes and shared space with Library and Parks and Recreation. She agreed that parking was essential and it should be underground and surface parking. She stated parks and recreation was guaranteed like for like space. John Baker encouraged increasing the library by 5,000 square feet. Councilmember Gupta discussed his experience with projects costing more than estimated, financial assumptions and uncertainties. He suggested a phased approach rather than committing to the full project. He discussed Ca1PERS liability and requested finer analysis of the City's financial obligations prior to deciding on design. He indicated support for an additional 5,000 square feet for the library, covered Police parking, and open space. Mayor Pro Tem Matsumoto discussed the required reserve levels. Director Lee stated there was no State requirement but a Council Reserve Policy which aligned with Federal best practices. He stated the City maintained a 20% reserve and surrounding agencies had reserves as low as 15% and up to 50 %. He reminded the Council of the City's credit rating and recommended retaining compliance with the Reserve Policy. City Manager Futrell stated staff was not recommending utilizing General Fund Reserves. He explained potential use of the Infrastructure Reserve. Director Lee discussed use of the reserves during the recession. SPECIAL CITY COUNCIL MEETING JULY 13, 2018 MINUTES PAGE 5 Councilmember Gupta stated he was not implying raiding the reserves. Assistant City Manager Lee discussed the strategy of packaging the design. Mayor Pro Tern Matsumoto stated the Council could suggest entertaining and them eliminating various components. Assistant City Manager Lee explained the probability of obtaining bids within the cost estimates. City Manager Futrell requested a decision on the white box theater, underground parking and delay open space pavers so the building could be designed. Councilmember Addiego stated 100 spaces under the building was optional and the theater /council chambers could be separate. Assistant City Manager Lee stated the three story building, all in was estimated at $78 million and the two -story with 3 separate buildings was estimated at $86 million. She stated separation of the white box theater /council chamber would save $8 million within the $210 million budget, therefore could accommodate 5,000 square of library space and parking canopy, with $1 million left over, and 100 spaces underground. Councilmember Gupta stated he liked flexibility and options therefore would support separate buildings. Mayor Normandy suggested two buildings, with the community theater in the first building. City Manager Futrell stated the one building project was $190 million. Mayor Pro Tem Matsumoto asked where Council meetings would be held. Mayor Normandy discussed the $190 million proposal. Mayor Normandy stated she was hearing consensus for two buildings. City Manager Futrell stated $1 million would be saved by going from two stories to three and there was not much savings with reducing three buildings to two. Councilmember Garbarino asked if there was any reluctance to delve into reserves. City Manager Futrell discussed the $25 million delta. Mayor Normandy asked if the additional open space landscaping could be deferred. Assistant City Manager Lee stated it would be included as a different design package. Councilmember Gupta stated the $210 million plan did not include the 5000 square feet for the library. Councilmember Garbarino confirmed that the 5,000 square feet and parking canopy could be built if the council chambers were deferred. Assistant City Manager Lee stated the Council could determine what to eliminate once hard construction costs were determined. City Manager Futrell expressed concern with designing to $217 million. Assistant City Manager Lee confirmed the Council was approving a budget of $210 million, acknowledging that all elements cost more than $210 million and directing issuance of separate bid packages. SPECIAL CITY COUNCIL MEETING JULY 13, 2018 MINUTES PAGE 6 City Manager Futrell asked if it was possible to prepare two designs. Assistant City Manager Lee clarified that the two story, with three separate buildings, and underground parking would be designed. City Manager Futrell stated that would prevent turning back from underground parking. Assistant City Manager Lee stated the separate community theater or landscaping could be omitted. In response to Councilmember Gupta, Mr. Jerabek confirmed that the fewer parking spaces built the less cost effective. Councilmember Addiego discussed fiscal conservancy and sales tax revenue. Mayor Normandy asked where the library space would go in the three separate buildings. Assistant City Manager explained that the additional 5,000 square foot for the library would go in one of the two buildings to the right. City Manager Futrell confirmed that if the bids were high, the $8 million theater /council chamber and /or pavers /landscaping could be omitted. Assistant City Manager Lee stated the police parking canopy and design element line items could also be omitted. Mayor Normandy discussed the potential use of cannabis tax revenue. Assistant City Manager Lee stated an item would come back on July 25 to formalize the action. ADJOURNMENT Being no further business, Mayor Normandy adjourned the meeting at 2:37 p.m. Submitted by: Gabriel o ez, eputy City Clerk City of South San Francisco SPECIAL CITY COUNCIL MEETING MINUTES Approved by: 514" /-40z)-c/f C Li a o andy, Mayor City o outh San Francisco JULY 13, 2018 PAGE 7