HomeMy WebLinkAboutMinutes 2018-11-14 @7:00MINUTES
H��N�'�� CITY COUNCIL
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CITY OF SOUTH SAN FRANCISCO
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�9ttoi�l,� REGULAR MEETING
MUNICIPAL SERVICES BUILDING
COUNCIL CHAMBERS
33 ARROYO DRIVE
SOUTH SAN FRANCISCO, CA
WEDNESDAY, NOVEMBER 14, 2018
7:00 p.m.
CALL TO ORDER Time: 7:03 p.m.
ROLL CALL Present: Councilmen Addiego, Garbarino and Gupta, and
Mayor Pro Tem Matsumoto.
Absent: Mayor Normandy.
PLEDGE OF ALLEGIANCE
Led by Mayor Pro Tem Matsumoto.
AGENDA REVIEW
None.
ANNOUNCEMENTS FROM STAFF
None.
PRESENTATIONS
1. Presentation of New Employees (Mich Mercado, Human Resources Manager)
Human Resources Manager Mercado addressed Council to present newly hired employees.
Employees introduced themselves as follows:
Lindsey Passmore, Police Dispatcher
Danielle Sanderson, Business Manager, Parks and Recreation
Thomas O'Connell, Parks Maintenance Worker, Parks and Recreation
2. Recognition of Evangelina Portillo for her volunteer assistance with the Cultural Arts
Commission's first Dia de los Muertos /Day of the Dead art exhibit /performance on October
12 -13, 2018. (Sharon Ranals, Director of Parks and Recreation)
Cultural Arts Commissioner Boldenweck addressed Council to introduce Evangelina Portillo and
thank her for creating the City's Dia De Los Muertos Cultural Arts Display and Presentation.
Mayor Pro Tem Matsumoto presented a Certificate of Recognition honoring Evangelina Portillo.
The Certificate expressed the Council's heartfelt gratitude and appreciation for partnering with the
South San Francisco Cultural Arts Commission and bringing the City's first -ever Dia de los
Muertos or "Day of the Dead" Art Exhibit to the Municipal Services Building on October 12 -13,
2018. The Council expressed appreciation for Ms. Portillo's sharing of her artistic talents, creativity,
and rich cultural traditions with the South San Francisco community.
PUBLIC COMMENTS
None.
COUNCIL COMMENTS /REQUESTS
Councilman Garbarino requested that the meeting be adjourned in honor of the victims of the
California Wildfires. He expressed appreciation for the first responders and volunteers working to
contain the fires and assist victims and displaced residents.
Councilman Gupta recognized first responders' hard work and commitment to community. He
thanked all that were assisting with efforts to respond to the fires and address community needs.
The Councilman observed and applauded strong voter participation in the November 6, 2018
election and noted votes were still being counted.
Councilman Addiego commented that it was heartening to see robust participation in the election.
He noted the frustrations related to immediate post - election uncertainty associated with the ballot
counting process, which had taken longer with the all mail ballot election.
Mayor Pro Tem Matsumoto announced November is Native American Heritage Month. She
requested that the meeting be adjourned in honor of former South San Francisco Conference Center
employee, Earsie Johnson.
Based on a recent incident, the Mayor Pro Tem was moved to raise awareness of sexual harassment
issues. She stated the importance of steps to prevent harassment from occurring in city government.
She wanted to ensure male and female victims are comfortable reporting harassment and feel safe
bringing forth complaints. She encouraged the City to work proactively to prevent future issues
through training and awareness. The Mayor Pro Tem acknowledged the City's Anti - harassment
Policy, and reiterated the City takes complaints seriously. She encouraged employees who believe
they have experienced harassment or retaliation to contact their respective supervisor and /or the
Human Resources Department. She requested that the City's Anti - Sexual Harassment Training
Policy be extended beyond the requirements of California law to require that every City employee
receive the training.
REGULAR CITY COUNCIL MEETING NOVEMBER 14, 2018
MINUTES PAGE 2
ADMINISTRATIVE BUSINESS
Report regarding a resolution approving the purchase of a remote control slope mower in an
amount not to exceed $95,408 and authorizing the City Manager to execute a purchase
agreement between Jesse Mack Company, Inc. and the City of South San Francisco. (Sharon
Ranals, Parks and Recreation Director)
3a. Resolution No. 185 -2018 approving the purchase of a remote control slope mower in
an amount not to exceed $95,408 and authorizing the City Manager to execute a
purchase agreement between Jesse Mack Company, Inc. and the City of South San
Francisco.
Parks and Recreation Director Ranals presented the staff report recommending that Council adopt a
resolution approving the purchase of a remote control slope mower in an amount not to exceed
$95,408 and authorizing the City Manager to execute a purchase agreement between Jesse Mack
Company, Inc. and the City of South San Francisco. Director Ranals advised she had presented
Council with a revised staff report and resolution including the required budget amendment on the
purchase. Director Ranals advised the slope mower would permit accomplishment of challenging
tasks associated with the City's weed abatement program and fire clearance needs. She presented
videos depicting the mower's capabilities as demonstrated on target zones in South San Francisco.
Director Ranals continued her presentation and advised the purchase would allow the Department to
reprioritize and add areas for clearance that had otherwise been unsafe to clear. ABAG funding and
a $10,000 donation from the Improving Public Places (IPP) Committee would assist the purchase.
Parks Supervisor Richardson of the Parks Division was available to answer Council's questions on
technical aspects of the mower.
Councilman Garbarino queried the mower's mulch and capture capabilities.
Supervisor Richardson advised the mower mulched materials it cleared as it moved however it did
not have capture capabilities.
In response to questions from Councilman Addiego, Supervisor Richardson advised the mower was
operated for approximately 30.minutes on shoulders off Hickey Blvd. and behind Sellick Park. He
noted the mower's automatic shut -off capabilities and stated the mower could handle large objects,
including small trees and fairly large sized rocks. Supervisor Richardson also advised the clearings
are planned during certain types of the year to protect animal nesting and propagation. The mower
would be operated frequently during summer.
In response to a question from Councilman Gupta, Supervisor Richardson advised staff performed
due diligence on available mowers and believed this mower was by far the most capable of handling
the City's needs.
Mayor Pro Tem Matsumoto commented on the IPP Committee's support for selection of this
mower. She thanked the group for its generous contribution of $10,000 to purchase of the
equipment.
Motion – Councilman Garbarino /Second — Councilman Gupta: to approve Resolution No. 185 -2018.
Approved by the following roll call vote: AYES: Councilmen Garbarino, Gupta and Addiego and
Mayor Pro Tem Matsumoto; NAYS: None; ABSTAIN: None; ABSENT: Mayor Normandy.
REGULAR CITY COUNCIL MEETING NOVEMBER 14, 2018
MINUTES PAGE 3
4. Report regarding resolution accepting the financial results for the fiscal year ended June 30,
2018, and approving Budget Amendment 18.034 (Richard Lee, Director of Finance)
4a. Resolution No. 186 -2018 accepting the financial results for the fiscal year ended June
30, 2018, and approving Budget Amendment 18.034.
Finance Director Lee presented the staff report recommending that Council approve a resolution
accepting the financial results for the fiscal year ended June 30, 2018, and approving Budget
Amendment 18.034. He thanked Mayor Normandy and Councilman Gupta for their work on the
Budget Standing Committee of the City Council. Director Lee then provided a PowerPoint
Presentation summarizing the City's financial results. He reviewed General Fund Revenues and
Expenditures, and offered highlights from other funds. Developer Impact Fees and Reserves were
also reviewed. Total Revenues were reported at $120.4 million, while expenditures were at $106.5
million, yielding $13.9 million as a net surplus. After factoring for the Plus Net Change in PO /CIP
and the surplus needed for General Reserves, remaining Equity was factored at $11.0 million. The
proposal transferred $10.0 million to Infrastructure Reserves and $1.0 million to the PERS Reserve.
Developer Impact Fees were reported at $18.27 million and Reserves had an ending balance of
$48.5 million reflecting and increase of $7 million.
In response to an inquiry from Councilman Addiego regarding the portion of Sales and Use Tax that
remained flat, Director Lee advised office equipment purchases were at an all -time low.
Councilman Gupta thanked the Finance Director for his work with the Budget Standing Committee.
He cautioned that while this particular update painted a rosy financial picture, pension and other
finical uncertainties loomed. He noted that the City was presently at the peak of an economic cycle
that would ultimately come back down. He recommended a cautious approach to expenses.
Mayor Pro Tem Matsumoto echoed Director Lee's thanks to Standing Committee members
Normandy and Gupta.
In response to the Mayor Pro Tem's question regarding Transient Occupancy Tax (TOT) shortfalls
on projections, Director Lee confirmed it was due to two (2) forecast hotels coming online later than
expected.
Finance Director Lee further confirmed he would provide a Thursday Memo to Council related to
the financial impact of consultants necessary to complete tasks associated with unfilled positions in
the Economic and Community Development Department. The Mayor Pro Tem had observed that
although salary savings related to the unfilled positions positively impacted the budget, related
consultant fees might have detracted from it.
In response to a question from Mayor Pro Tem Matsumoto, Director of Finance Lee advised
projected Community Benefit and Impact Fees are not appropriated in the budget until funds are
received. City Manager Futrell explained Impact Fees are set by ordinance, whereas Community
Benefit Fees are negotiated on a by- development basis.
Motion — Councilman Gupta/Second— Councilman Garbarino: to approve Resolution No. 186-
2018. Approved by the following roll call vote: AYES: Councilmen Garbarino, Gupta and Addiego
and Mayor Pro Tem Matsumoto; NAYS: None; ABSTAIN: None; ABSENT: Mayor Normandy.
REGULAR CITY COUNCIL MEETING NOVEMBER 14, 2018
MINUTES PAGE 4
5. Study session regarding a comprehensive financial review of the City of South San Francisco,
including pension costs (Richard Lee, Director of Finance)
Director of Finance Lee presented the Study Session regarding a comprehensive financial review of
the City of South San Francisco, including pension costs. He provided a PowerPoint Presentation
detailing the City's options for addressing pension issues. Director Lee explained that like other
general law cities of its kind, the City obtains the majority of its funding through taxes to provide
services to the community. The City's primary taxes are Property Tax, Sales Tax, and TOT, all of
which are accounted for in the City's General Fund. The General Fund serves as the City's primary
operating fund, and as such, is the focus of the study session.
Director Lee also provided background on CalPERS, noting that it began life in 1932 as the State
Employee Retirement System (SERS). South San Francisco joined SERS in 1945. In 1992, SERS
became CalPERS. CalPERS is the largest public pension system in the United States. Over the past
two decades, CaIPERS endured significant investment return volatility. To reduce exposure to
economic fluctuation, CalPERS changed the discount and mortality rate and the way in which it
amortized gains and losses. In order two address the impact of these changes on the City's pension
liabilities, Director Lee sought Council's direction on options, including establishing a section 115
Trust Fund to house assets and /or paying funds in addition to the required annual contribution.
While the Councilmembers were not prepared to provide direction on the preferred option this
evening, they engaged in discussion on the subject as follows:
Councilman Addiego stated his displeasure with generous changes to the pension policy that were
made on a retroactive basis prior to former City Manager Mike Wilson's retirement. He believed
these changes significantly and negatively impacted the City's pension liability.
In response to a question from Councilman Garbarino regarding flexibility, Director Lee advised
Council could establish parameters on the section 115 Trust, but some flexibility would be lost.
Mayor Pro Tern Matsumoto commented that South San Francisco is a very well- managed City. She
noted several local cities were on the verge of bankruptcy, but South San Francisco was not. She
observed that the City's public safety units would be forced to provide assistance to surrounding
bankrupt cities in the future.
In response to a question from Councilman Addiego, City Manager Futrell stated a bankruptcy
trustee could claw back pensions. Director Lee stated the high -water mark for pension liability was
in the early 2030s.
Councilman Gupta recognized the City did not have very many options, but would need to confront
the issue forthwith.
City Manager Futrell and Director Lee agreed to work options in parallel and provide Council with
the potential solutions for consideration in the near future.
REGULAR CITY COUNCIL MEETING NOVEMBER 14, 2018
MINUTES PAGE 5
6. Report regarding the Community Civic Campus quarterly update for Quarter 1 Fiscal Year
2018/19. (Marian Lee, Assistant City Manager and Dolores Montenegro, Kitchell Program
Manager)
Assistant City Manager Lee presented Council with a report regarding the Community Civic
Campus Quarterly Update for Quarter 1 Fiscal Year 2018/19. She noted that during 2018, the
design team advanced schematic design. Staff from Library, Parks and Recreation and Police and
Fire identified the types of rooms and spaces and support programs necessary to support their
programs and operations. Staff was prepared to present the scheduled check -in with Council and the
public regarding the schematic design, when it learned, as a result of surveys, that the location of
underground facilities, including the BART Tunnel and electrical and water lines, might conflict
with certain of the schematic design plans. Assistant City Manager Lee requested a three (3) week
extension on the update to permit staff to further understand the results of the survey in the context
of its due diligence on the site.
Mayor Pro Tem Matsumoto commented on the Assistant City Manager's fortitude in assuming
responsibility for the information learned in the most recent surveys. She looked forward to a full
report-back on the results of the investigations.
Councilman Addiego believed the three (3) week delay in the report was reasonable given the need
to further understand the discrepancies and their impact.
Assistant City Manager Lee confirmed the additional three (3) weeks would allow certainty with
respect to impacts on schematic design.
Councilman Gupta expressed disappointment with the agencies, including BART and the public
utilities from which location information had initially been obtained. He noted the City's Civic
Center project was well known and well vetted.
Councilmembers looked forward to receiving the report in early December.
CONSENT CALENDAR
7. Motion to approve the Minutes for the meetings of September 12, 2018 and October 24, 2018.
8. Motion confirming payment registers for November 14, 2018. (Richard Lee, Director of
Finance)
9. Report regarding a resolution approving the acceptance of grant funds from the California
Urban Forest Council, in partnership with West Coast Arborists, the International Society of
Arboriculture and Cal Fire, in the amount of $8,000 and an in -kind donation of up to 200
trees, and amending the Parks and Recreation Department's Fiscal Year 2018 -19 Operating
Budget pursuant to budget amendment #19.026. (Sharon Ranals, Parks and Recreation
Director)
9a. Resolution 187 -2018 approving the acceptance of grant funds from the California Urban
Forest Council, in partnership with West Coast Arborists, the International Society of
Arboriculture, and Cal Fire, in the amount of $8,000 and an in -kind donation of up to 200
trees, and amending the Parks and Recreation Department's Fiscal Year 2018 -19 Operating
REGULAR CITY COUNCIL MEETING NOVEMBER 14, 2018
MINUTES PAGE 6
Budget pursuant to budget amendment #19.026.
10. Report regarding a resolution authorizing the acceptance of $14,540 in grant funding from the
Pacific Library Partnership to support the MakerSpace collection, Unplug: STEM Kits for
Infants through Preschool, and approving Budget Amendment 19.028. (Valerie Sommer,
Library Director)
10a. Resolution No. 188 -2018 authorizing the acceptance of $14,540 in grant funding from
the Pacific Library Partnership to support the makerspace collection, Unplug: STEM Kits
for Infants through Preschool, and approving Budget Amendment 19.028.
11. Report regarding a resolution approving the filing of an application for Department of
Resources Recycling and Recovery funds allocated through the State of California in their
Fiscal Year 2018 -2019 budget in the amount of $16,802 to support beverage container
recycling programs in City parks and authorizing the Finance Director to adjust the City's
Fiscal Year 2018 -2019 revenue budget upon receipt of funds pursuant to budget amendment
#19.027. (Sharon Ranals, Director of Parks and Recreation)
11 a. Resolution No. 189 -2018 approving the filing of an application for Department of
Resources Recycling and Recovery funds, allocated through the State of California in their
Fiscal Year 2018 -2019 budget, in the amount of $16,802 to support beverage container
recycling programs in City parks and authorizing the Finance Director to adjust the City's
Fiscal Year 2018 -2019 revenue budget upon receipt of funds pursuant to budget amendment
#19.027.
Item No. 7: Mayor Pro Tem Matsumoto stated she would abstain from Item No. 7 because she was
not present for the meetings that were the subject of the minutes submitted for approval.
Item No. 9: Mayor Pro Tem Matsumoto pulled the item to highlight the benefits of the program.
She noted the in -kind donation of up to 200 trees from the California Urban Forest Council, in
partnership with West Coast Arborists, the International Society of Arboriculture and Cal Fire, was
initiated in the High Speed Rail Corridor to reduce carbon emissions. Two hundred (200) City trees
would be planted in local neighborhoods. She noted the City was looking for residents to adopt the
trees.
In response to a question from resident Mina Richardson, Mayor Pro Tem Matsumoto advised the
City would maintain the trees.
Vote on Item No. 7:
Motion— Councilman Addiego /Councilman Garbarino: to approve Consent Calendar Item No. 7.
Approved by the following roll call vote: AYES: Councilmen Garbarino, Gupta and Addiego;
NOES: None; ABSTAIN: Mayor Pro Tem Matsumoto; ABSENT: Mayor Normandy.
Vote on Items Nos. 8 -11:
Motion— Councilman Garbarino /Councilman Gupta: to approve Consent Calendar Items Nos. 8 -11.
Approved by the following roll call vote: AYES: Councilmen Garbarino, Gupta and Addiego and
Mayor Pro Tem Matsumoto; NOES: None; ABSTAIN: None; ABSENT: Mayor Normandy.
REGULAR CITY COUNCIL MEETING NOVEMBER 14, 2018
MINUTES PAGE 7
ITEMS FROM COUNCIL - COMMITTEE REPORTS AND ANNOUNCEMENTS
Councilman Addiego requested follow -up regarding the citizen request for a Stop Sign at the Baden
and Eucalyptus Avenue Intersection. He further queried progress on a process for citizen petitioning
on traffic measures. He mentioned a citizen inquiry regarding the Clay and Longford Intersection
and observed confusion about the petition process.
CLOSED SESSION
Time entered Closed Session: 8:00 p.m.
Open Session resumed: 9:40 p.m.
12. Closed Session: Conference with Real Property Negotiators (Pursuant to Government Code
Section 54956.8) Properties: 432 Baden Avenue (APN 012 - 321 -160) City Negotiators:
Deanna Talavera Negotiating Parties: City of South San Francisco and Sierra Investments
Under Negotiation: Review of Price and Terms
Report out of Closed Session by Mayor Pro Tem Matsumoto: Direction given no reportable action.
13. Closed Session: Conference with Real Property Negotiators (Pursuant to Government Code
54956.8) Properties: 201, 207 and 217 -219 Grand Avenue and 418 Linden Avenue Agency
Negotiators: Alex Greenwood and Julie Barnard Negotiating Parties: City of South San
Francisco and City of South San Francisco on Behalf of the South San Francisco Successor
Agency, and ROEM Development Corporation Under Negotiation: Price and Terms of
payment.
Report out of Closed Session by Mayor Pro Tem Matsumoto: Direction given no reportable
action.
ADJOURNMENT
Being no further business, Mayor Pro Tem Matsumoto adjourned the meeti at 9:40 p.m. in honor
of the victims of the California Wildfires and Earsie Johns n.
S ted by: A rov d
Krista J artin li, City Clerk i h,auma�
City of uth San Francisco City of South San Francisco
1?hUULAR CITY COUNCIL MEETING NOVEMBER 14, 2018
MINUTES PAGE 8