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HomeMy WebLinkAboutMinutes 2008-11-12~~~t~ ~AN~ ~/~I~UTE ~~ _y: 9~ 5 ~~ S .~ ,~- ~, U O R ~ CITY COUNCIL ~`~ "~"~~ CITY OF SOUTH SAN FRANCISCO ~`~LIFOR~~~' 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 ~- ~.... 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