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REGULAR MEETING
MUNICIPAL SERVICES BUILDING
COMMUNITY ROOM
33 ARROYO DRIVE
WEDNESDAY, NOVEMBER 12, 2008
CALL TO ORDER: 7:06 p.m..
ROLL CALL: Present: Councilmen Addiego, Garbarino and Mullin,
Mayor Pro Tem Matsumoto and Mayor
Gonzalez.
Absent
PLEDGE OF ALLEGIANCE:
INVOCATION:
PRESENTATIONS
None.
Led by Mayor Gonzalez.
None.
• Presentation of Fire Prevention Month Poster Contest Winners by Fire Chief White
and Fire Marshal Da Silva.
Fire Marshal Da Silva introduced Safety Inspectors Henderson and Orque to present the
awards for the Fire Prevention Month Poster Contest.
Safety inspector Henderson advised the theme of fire prevention month this past October
was preventing home fires. During October, fire fighters visited schools, interacted with
students and taught the basics of fire safety. As part o:f the program, the Fire Department
sponsored a Poster Contest that generated over 500 entries.
Safety Inspector Orque presented the following contest winners who were congratulated by
Mayor Gonzalez and Fire Chief White:
Kindergarten: Noel Valdez, Savannah Ponce.
First Grade: Justin Vargas, Belle Eberle.
Second Grade: Gabrielle Velez, Isabella Rodriguez Fuentes.
Third Grade: Daryl Delemos, Ashley Ragual.
Fourth Grade: Omar Valdez, Jasmine Mann, Dante Billed.
Fifth Grade: Nicholas Gomez, Julissa Gonzalez, Alexis Juarez.
Recess 7:20 p.m.
Open Session resumed: 7:25 p.m.
AGENDA REVIEW
None.
PUBLIC COMMENTS
None.
ITEMS FROM COUNCIL
• Announcements
• Committee Reports
Councilmembers reported on attendance at community meetings and events, including the
ABAG General Assembly Meeting, the County's Jail Planning Meeting at El Camino High
School, the Board and Commission Recognition Event, the PAL 50th Anniversary Dinner,
the dedication of the new Historical Society Museum at 80 Chestnut Avenue and the
Kishiwada Delegation Dinner at the Basque Cultural Center. Council congratulated newly
elected members of the South San Francisco Unified School District School Board,
including Maurice Dupra Goodman and Judy Bush and thanked all those that ran for the
positions. Council also recognized Parks and Recreation Department staff, including John
Wong for their work on the Halloween Extravaganza. Specific items for further action
and/or consideration were set forth as follows:
Councilman Mullin suggested establishing a historical photo archive of City Officials.
Mayor Gonzalez requested that the meeting be adjourned in honor of Mildred "Milly"
Bessire.
CONSENT CALENDAR
1. Motion to approve the minutes of October 8, 2008, October 15, 2008 and October 22,
2008.
2. Motion to confirm expense claims of November 12, 2008 in the amount of
2,999,708.71.
3. Motion to cancel the City Council's Regular Meeting of November 26, 2008.
4. Resolution No. 108-2008 accepting a grant in the amount of $409,000 from the
Federal Department of Homeland Security for rescue equipment and tools and
amending the Fire Department's Fiscal Year 2008/2009 Budget.
5. Acknowledgment of Proclamations issued honoring: the Kishiwada Sister City
REGULAR CITY COUNCIL MEETING NOVEMBER 12, 2008
MINUTES PAGE 2
Delegation visit from November 5-7, 2008; the Police Athletic League's 50th
Anniversary; Gus Nicolopulos' contributions to the PAL; and resident Yvette M.
Gardner, SBA's 2008 San Francisco District Office Minority Small Business Person
of the Year and recognizing November 13, 2008 as Yvette M. Gardner Day in the
City of South San Francisco.
Motion- Councilman Addiego/Second- Councilman (Jarbarino: to approve consent
calendar items nos. 1-3 and 5. Unanimously approved by voice vote.
Item 4: Mayor Pro Tem Matsumoto questioned whether the grant money would be used for
equipment.
Fire Chief White advised that the grant would be used for various equipment,
including items for the technical rescue vehicle and a dock for the Department's boat.
Motion- Mayor Pro Tem Matsumoto/Second- Councilman Addiego: to approve
Resolution No. 108-2008. Unanimously approved by voice vote.
PUBLIC HEARING
6. ROTARY PLAZA INC /Owner & Applicant
(Project number - P08-0088).
Consideration of Resolution No. 109-2008, pursuant to South San Francisco
Municipal Code Chapters 2.22, 20.20, and 20.97, authorizing the City Manager to
enter into an agreement with Rotary Plaza to transfer ownership and relocate the
duplex currently located at 323 Miller Avenue in the D-C Downtown Commercial
Zone District. The proposed agreement would allow for the transfer of ownership of
the duplex and relocation of the structure to the Rotary Plaza site at 433 Alida Way,
in the R-3-L Multi-Family Residential Zone District.
Chief Planner Kalkin stated that when Council approved the final design for the Miller
Avenue Parking Structure last May, it was made aware that plans for the garage would
necessitate removal of the duplex at 323 Miller Avenue, which was a potentially historic
resource. Rather than demolish the structure and salvage materials, staff believed the most
feasible option involved moving the structure to a new location at Rotary Plaza located at
433 Alida Way. The structure would be converted to a single unit dwelling house and
provide housing for the resident manager, which would free up an apartment at Rotary
Plaza for a low income senior. The relocation would affect parking and density issues at
33 Alida Way. Relocating the duplex would result in an increased site density of .5%.
Regarding parking, senior housing is allowed a flexible ratio that is lower than the standard
zoning requirements. Staff had conducted surveys at the site and found adequate parking
space and believed it was unlikely the unit would have a measurable impact on parking.
An agreement for the relocation had been drawn up. Pursuant to the proposed agreements,
the City would pay for the physical relocation of the structure and a foundation at an
estimated cost of $40,000. Rotary Plaza would be responsible for all other aspects of the
relocation necessary to make the structure habitable. The benefits of relocating the
structure included architectural preservation of a historical resource and increasing the
supply of affordable senior housing throughout the community. Accordingly, staff
recommended approval of the resolution.
REGULAR CITY COUNCIL MEETING NOVEMBER 12, 2008
MINUTES PAGE 3
Public Hearing opened: 8:02 p.m.
Resident and President of Rotary Plaza Doug Wigton appeared in support of the resolution
and advised the Vice President of Rotary Plaza Corporation and the Resident Manager
were also present in support of the proposal.
Public Hearing closed: 8:04 p.m.
Mayor Pro Tem Matsumoto stated support for the proposal and. questioned the regulations
that would apply once the unit was turned over to Rotary Plaza.
Chief Planner Kalkin responded that since the house had not yet been designated as
historic, there were no outside restrictions applicable to it. However, it was intended the
outside would be preserved.
Mayor Pro Tem Matsumoto stated she would prefer, with the consent of the rest of
Council, that the agreement include assurances that the outside look of the structure would
be maintained in accordance with the historic period in which it was built.
Chief Planner Kalkin responded staff had been advocating for the structure's designation as
a historic resource.
Councilman Addiego questioned when the structure was built.
Councilman Garbarino estimated the structure was built around 1902.
Councilman Addiego observed the structure's historical value to the Downtown and
commented that it would have been nice to see a collection of historical homes relocated in
a common place in the Downtown District. However, he stated that while putting one
historical structure next to a 1970s building might not be ideal, it represented a good
alternative.
Assistant City Manager and Director of Economic and Community Development Van
Duyn advised staff explored the option of locating historical. houses within the Orange Park
Master Plan and was still considering this option. Ho`vever this particular site at 323
Miller Avenue presented urgency as it would hold-up construction of the Parking Garage.
While staff would have preferred relocation in the Downtown District, this was a
reasonable alternative.
Councilman Garbarino stated that while he didn't want to establish a precedent of moving
historic homes out of their respective districts, he believed the proposal to move the
structure to Rotary Plaza presented a good solution under the circumstances and would be a
positive use of the facility.
Mayor Gonzalez stated he would like to see the home's history preserved. He also
questioned whether staff knew the planned route through which the house would be moved
across the City.
Chief Planner Kalkin advised the moving company would set the route.
REGULAR CITY COUNCIL MEETING NOVEMBER 12, 2008
MINUTES PAGE 4
Mayor Pro Tem Matsumoto stated that prior to a vote she would like to add a caveat to the
agreement that the exterior of the structure be kept in the relevant historical period.
Chief Deputy Assistant City Attorney Woodruff questioned whether Council desired to add
additional provisions establishing that historical designation for the house must be sought
and that its exterior must be preserved in any event.
Councilman Garbarino responded he would like to see both provisions added to the
agreement.
Motion- Councilman Garbarino/Second- Councilman Addiego: to approve Resolution No.
109-2008 with the addition of provisions to the agreement that would preserve the exterior
of the structure and with assistance from staff seek its designation as a historical structure.
Unanimously approved by voice vote.
ADMINISTRATIVE BUSINESS
7. Resolution No. 110-2008 approving a Framework Agreement for Redevelopment of
Oyster Point Marina between the City of South San Francisco and Oyster Point
Ventures, LLC for potential development of the Oyster Point Marina and Oyster Point
Business Park.
Assistant City Manager and Director of Redevelopment Van Duyn advised Council had
previously approved the ENRA pertaining to this project. The key terms of the framework
agreement were to be presented to Council within 60 days of the ENRA. The terms of the
Framework Agreement would not be final until all parties approved of definitive
agreements which would come to Council in the future. The City and Developer would
also collaborate and negotiate an MOU. The Project Development Concepts included
plans for a modern life sciences campus, including office space and amenities as well as a
retail Ferry Village in coordination with the proposed ferry terminal. The plan also called
for enhanced open, public recreation space. The proposed timeline for the project was as
follows: Second Quarter 2009: Completion of MOU, initiation preparation/processing of
EIR Entitlements; Second Quarter 2010: complete environmental review and City public
hearing for project entitlements and execution of DDA/Real Property Purchase Agreement
or other agreement for exchange of the City and SKS/Shorenstein property; Second quarter
2013: exchange property pursuant to a DDA/Real Property Purchase Agreement,
commence construction of life sciences campus component of project/common
infrastructure. Next steps were as follows: the City and SKS/Shorenstein would conduct
further analysis of economic feasibility; assessment of conditions and clean-up
requirements; valuation of the property and other studies. Expenses with respect to studies
would be covered by SKS/Shorenstein. Immediate next steps included negotiation of a
draft MOU within 120 days with presentation to the Council for review within 130 days.
Councilman Addiego stated this was a tremendous opportunity that would help retain the
City's position in the Biotech Industry. He noted the property was presently underutilized
and opined Shorenstein's proposal would better position the City. He further advised the
public that Council had a study session on this proposal and had seen preliminary plans.
REGULAR CITY COUNCIL MEETING NOVEMBER 12, 2008
MINUTES PAGE 5
Councilman Mullin stated his questions had been answered at the study session and opined
this was a very important step for the City.
Mayor Gonzalez questioned whether tenants presently occupying Oyster Point Business
Park had been notified of the proposed development.
Assistant City Manager Van Duyn advised that the proposal was still under review because
SKS had an option with King Ventures. Notice would not be sent until there was an actual
acquisition.
Motion- Councilman Addiego/Second-Councilman Garbarino: to approve Resolution No.
110-2008. Unanimously approved by voice vote.
8. Review of the Federal Housing and Economic Recovery Act of 2008 (H.R. 3221).
LEGISLATIVE BUSINESS
9. Waive reading and introduce an ordinance amending Chapter 8.54 of the South San
Francisco Municipal Code by adding Article VI regulating abandoned and distressed
residential properties within the City and establishing a registration program; and
Resolution No. 111-2008 establishing the abandoned and distressed residential
property registration program annual fee amount.
Assistant City Attorney Wang advised Items 8 and 9 would be presented together.
She then discussed the Federal Housing and Economic Recovery Act of 2008 ("HERA").
HERA was designed to improve Cities' abilities to assist homeowners facing foreclosures
and keep up blighted properties affected by foreclosures. The most relevant aspect of
HERA appropriates 3.9 billion in block grants for those states, cities and counties that had
been hit hardest by the mortgage crisis. The block grants incorporated in the legislation
permit local governments to: a) purchase, rehabilitate, resell or rent foreclosed and
abandoned homes; b) provide second mortgages and other financing to assist eligible low
and moderate income first time homebuyers to purchase foreclosed homes; c) land bank
foreclosed properties for future redevelopment; d) demolish blighted structures; and e)
redevelop certain properties.
Assistant City Attorney Wang advised the majority of HERA funds had already been
directly allocated to the areas that had been hardest hit by the crisis. South San Francisco
was not a recipient of direct funds from HUD. The state of California had been allocated
approximately $145 million to be distributed to cities and counties that did not receive
direct funds from HUD, which task would be accomplished by the California Department
of housing and Urban Development ("HCD"). HCD would be developing procedures to
distribute these funds and the guidelines had not yet been announced. HCD stated,
however, that a major factor in its decisions would be each city's readiness to proceed and
obligate the funds within 18 months of an award. Assistant City Attorney Wang advised
the City would need to move quickly to develop plans to utilize the funds if it intended to
apply to HCD for a distribution. The current schedule stated the application would be
published in January 2009 and due in February. Funds would be awarded in March.
REGULAR CITY COUNCIL MEETING NOVEMBER I2, 2008
MINUTES PAGE 6
Assistant City Attorney Wang then discussed Item No. 9, a proposed ordinance that would
be incorporated under the current Community Preservation Ordinance ("CPO") and
addressing the foreclosure issue. She advised the number of homes in various stages of
foreclosure had risen to the highest level in 16 years. In South San Francisco, there were
over 400 homes in various stages of foreclosure including, pre foreclosure- distressed or
notice of default (208 homes), bank owned (172 homes) and auction (59 homes). Many of
the foreclosed homes lead to public nuisance conditions, including issues of trespassing,
squatting, overgrown weeds, accumulation of junk trash and debris, mosquito larva,
graffiti, vandalism and increased crime. These conditions cause blight and depreciate the
value of properties in their area. The City's general option for dealing with such conditions
was via Code Enforcement through the Fire Department. The proposed ordinance was
designed to help Code Enforcement pursue action against such conditions caused by
foreclosures and incorporated State Senate Bill 1137, which was signed into law in July
2008 and permits cities to impose a fine of up to $1000 per day for failure to maintain and
secure a foreclosed residence. The limitations on this fine include that funds collected
must be used for nuisance abatement in Code Enforcement and fines could only be applied
to residential properties. In addition, the City could not simultaneously impose the usual
fines and penalties established under the current CPO and could choose whether to impose
the $1000 fine or the fine authorized by the CPO on a case by case basis.
Another element of the proposed ordinance would require banks and lenders to register
properties in the various stages of foreclosure within ten (10) days after such a residence
becomes vacant. This was intended to provide Code Enforcement with a record of contacts
when pursuing the abatement process. Assistant City Attorney Wang noted there were
very persuasive reasons for the registration requirement including that titles on foreclosed
properties are very difficult to trace due to the fact that numerous banks and lenders are
involved, which makes discerning an owner for enforcement purposes very difficult. In
addition, the various banking parties involved in a particular foreclosure often designate a
party responsible for maintenance. Having this contact information upfront would
substantially limit staff time spent determining where to send Code Enforcement
notifications.
Assistant City Attorney Wang advised staff sought Council's direction with respect to
preparing a plan for implementing HERA funds and making an application for such funds.
Staff also recommended Council to waive reading and introduce an ordinance amending
the CPO by adding an article regulating abandoned and distressed residential properties
within the City and establishing a registration program and approve a resolution
establishing the abandoned and distressed residential property registration program annual
fee amount as $125.00.
Councilman Garbarino questioned the number of foreclosed homes in the South San
Francisco area that fell in the abandoned/distressed condition. He further questioned
whether the City would lien the property if homeowners failed to comply with enforcement
notices.
Assistant City Attorney Wang responded Code Enforcement had over 1130 open cases, but
could not presently track which of these related to foreclosed homes. Regarding liens, she
stated that property could be liened if owners failed to comply with Code Enforcement's
notices.
REGULAR CITY COUNCIL MEETING NOVEMBER 12, 2008
MINUTES PAGE 7
Mayor Pro Tem Matsumoto opined the proposed ordinance added another layer of
bureaucracy. She questioned how banks could be charged $1000 when homeowners would
be charged less for the same violation.
Fire Chief White responded that banks and businesses are held to a hire standard as
sophisticated entities with more resources than the average homeowner who may fall on
hard times.
Mayor Pro Tem Matsumoto also questioned the over 1000 case backlog in Code
Enforcement and raised staffing concerns pertaining to the programs set forth in the
proposed ordinance.
Chief White clarified that the over 1000 case figure referred to active code enforcement
cases in South San Francisco. Regarding staffing, he stated the program established by the
proposed ordinance would reduce staff time spent trying to discern ownership interests in
foreclosed properties that happen to be the subject of Code Enforcement actions.
Mayor Pro Tem Matsumoto stated the mounting Code Enforcement caseload keeps
growing, which is why additional staff was added to the unit. She did not want to see Code
Enforcement become hostage to the requirements of the proposed ordinance.
Chief White stated the Department could start tracking this information in its monthly
Code Enforcement report to Council to determine its impact.
Chief Deputy Assistant City Attorney Woodruff advised the proposed ordinance did not
define a new category of nuisance and would not create a number of new cases as the
property at issue would be deemed a nuisance in any event. The ordinance would simply
provide staff with additional tools to deal with the cases presently in Code Enforcement
and/or in Code Enforcement in the future that happen to pertain to foreclosed properties.
Mayor Pro Tem Matsumoto questioned how banks would register under the ordinance.
Chief Deputy Assistant City Attorney Woodruff responded most lenders were already
aware of similar legislation that had been established in other municipalities and thus had
already organized compliance units.
Councilman Addiego questioned whether the ordinance would pertain only to bank-owned
properties.
Assistant City Attorney Wang responded the ordinance would apply to any home in the
foreclosure process that had been vacant for ten (10) days.
Councilman Addiego stated that at a minimum the number of such homes in violation of
the CPO should be assessed and he didn't see a downside to setting up a mechanism to
track this information. He wanted a better understanding of the HERA funds and
questioned whether if successful the City could use such funds to purchase foreclosed
properties.
REGULAR CITY COUNCIL MEETING NOVEMBER 12, 2008
MINUTES PAGE 8
Assistant City Attorney Wang responded the City could use HERA funds to purchase,
rehabilitate and sell or rent foreclosed homes.
Mayor Pro Tem Matsumoto opined HERA was beyond the City's staffing capabilities.
City Manager Nagel responded staffing for the application process and implementation of
the program could come from the City Attorney's Office in conjunction with Economic
and Community Development staff. He cautioned however that a small amount of dollars
was up for grabs.
Councilman Addiego opined HERA presented the opportunity side of a crisis situation and
might assist with market stabilization.
Assistant City Attorney Wang added that funds from homes sold by the City through the
HERA program could be used for five (5) purposes including, purchasing, rehabilitating,
providing second mortgages, demolishing blighted structures and redevelopment of certain
properties.
City Manager Nagel stated staff wanted to bring HERA to Council's attention and would
be looking for guidance with respect to the application process around the first of the year.
Councilman Garbarino stated he would like information pertaining to the City's capacity
and capability to pursue and implement HERA funding.
Assistant City Attorney Wang responded that much of the proposal would be an adaptation
of preexisting programs, including redevelopment and/or first time homebuyer programs.
Councilman Mullin stated support for applying for the funds but cautioned the amount
allocated to the state was small. He questioned how many cities South San Francisco
would compete with for funding.
Assistant City Attorney Wang responded there would be a lot of competition for the funds.
Councilman Mullin next turned to the proposed ordinance and questioned the remedy when
a bank failed to register.
Fire Chief White responded that if Code Enforcement learned of a case involving blighted
property associated with a foreclosed residence for which the responsible bank failed to
register, it could be cited $100/day until it completed the registration process. However, if
a particular lender established a pattern of failing to register, it could be charged $500/day
for each property until it registered. He further noted banks had an incentive to register in
order to keep the title on the property free and clear for purposes of sale.
Assistant City Attorney Wang added banks had been registering in cities that had
established similar ordinances.
Mayor Gonzalez questioned whether the proposed ordinance would create a need for
special personnel.
REGULAR CITY COUNCIL MEETING NOVEMBER 12, 2008
MINUTES PAGE 9
Chief White responded Code Enforcement staff was already dealing with 11 pending cases
involving foreclosed homes. The ordinance would simply make it easier for staff to
enforce against homes already in the case log or that would be in the case log in the future
that also happened to be in foreclosure. The registration process would decrease staff time
spent trying to trace the owner of such properties and make the Department more efficient
at dealing with foreclosed properties with pending Code Enforcement actions.
Mayor Gonzalez questioned whether Council had action to take with respect to Item No. 8.
City Manager Nagel responded staff just needed direction, which it had received through
Council's comments.
Councilman Addiego stated he remained unconvinced regarding the proposed ordinance
but was relying on the Fire Chief's belief that the legislation was needed.
Motion- Councilman Garbarino/Second- Councilman Mullin: to Waive reading and
introduce an ordinance amending Chapter 8.54 of the South San Francisco Municipal Code
by adding Article VI regulating abandoned and distressed residential properties within the
City and establishing a registration program; and approving Resolution No. 111-2008. The
motion was approved by the following vote: AYES: Councilman Addiego, Councilman
Garbarino, Councilman Mullin, and Mayor Gonzalez. NAYS: Mayor Pro Tem
Matsumoto. ABSTAIN: None. ABSENT: None.
Mayor Pro Tem Matsumoto requested a monthly report on progress and cost under the
ordinance.
COUNCIL COMMUNITY FORUM
Mayor Gonzalez thanked Director of Parks and Recreation Ranals and Recreation and
Community Services Manager Perotti for their work organizing events for the Kishiwada
Delegation visit.
ADJOURNMENT
Being no further business, Mayor Gonzalez adjourned the meeting at 9:24 p.m. in honor of
Mildred "Millie" Bessire.
Submitted by:
~, '4 ~-
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a rtinelli- J son, City Clerk
City of South S Francisco
App oved•
U
Karyl atsumoto, Mayor
City of South San Francisco
REGULAR CITY COUNCIL MEETING
MINUTES
NOVEMBER 12, 2008
PAGE 10