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HomeMy WebLinkAboutMinutes 2009-05-13 (2)o~~x sANF MI TE S NU ~~ _.~ ~.- ~~ CITY COUNCIL U O -_----~ CITY OF SOUTH SAN FRANCISCO ~9trFOR~~~' REGULAR MEETING MUNICIPAL SERVICES BUILDING COMMUNITY ROOM WEDNESDAY ,MAY 13, 2009 7:00 P.M. CALL TO ORDER: 7:17 P.M. ROLL CALL Present: Councilmen Garbarino, Gonzalez and Mullin, Vice Mayor Addiego, and Mayor Matsumoto. Absent: None. PLEDGE OF ALLEGIANCE: Led by Mayor Matsumoto PRESENTATIONS • Proclamation recognizing National Historic Preservation Month -presented to South San Francisco Historic Preservation Commissioner Jeanette Acosta. Presented by Mayor Matsumoto and accepted by Historic Preservation Commissioner Jeanette Acosta. • Proclamations recognizing Teacher Appreciation Week and Classified School Employees Appreciation Week -presented to CSEA President Jolene Malfatti and CTA President Thomas Coddington. The Teacher Appreciation Week Proclamation was presented by Councilman Mullin to CTA President, Thomas Coddington. Mr. Coddington stated that on behalf of all teachers in South San Francisco it was an honor to receive the beautiful proclamation. The Classified School Employees Appreciation Week Proclamation was presented by Vice Mayor Addiego to CSEA President, Jolene Malfatti. Ms. Malfatti accepted the Proclamation on behalf of the 320 employees and extended their deepest appreciation. Furthermore, she noted not only pride in their jobs, but also their City government. • Announcement of Merit Award presented to City of South San Francisco for Centennial Way Phase 1, California Trails and Greenways Conference and Invitation to community to attend the Dedication of Centennial Way Phases IUIII, Orange Avenue at Memorial Drive, 10:00 a.m., Saturday, May 16, 2009. Presenter: Director of Parks and Recreation Sharon Ranals. Director Ranals invited public to attend the opening of Centennial Way. She presented a PowerPoint slideshow that highlighted some of the key developments of the project and announced the Parks and Recreational Department's receipt of the 24th California Trails and Greenways Conference Merit Award for Centennial Way Phase I. The slideshow continued and previewed some of the features of Phases II and III which included benches, mile markers, public art and memorial blocks for citizens to purchase if they desired. Director Ranals provided the phone number for the Parks and Recreation Department at (650)829-3800. Promotional flyers and maps were provided for meeting attendees. Councilman Gonzalez questioned if there was going to be a BART representative present at the Centennial Way opening and commended Director Ranals for the work on Centennial Way. Director Ranals noted that Lynette Suite of BART would be present to speak at the event. • H1N1 Flu Advisory -presented by Fire Chief Phil White. Fire Chief White provided an update to Council and the community on the Swine Flu pandemic through a PowerPoint presentation. The presentation highlighted current information about the swine flu. Further explained was the difference between an outbreak and a pandemic, signs and symptoms, methods by which it is spread, life expectancy of virus, prevention methods/reminders and treatment for the H1N1 flu. Chief White emphasized good health/hygiene practices to help with prevention and provided hand sanitizer for meeting attendees. He also urged citizens to contact their health care providers for specific concerns and gave the City of South San Francisco website at www.ssf.net as a resource for detailed information and relevant links. Chief White then introduced Information Technology Director Doug Hollis to further explain the website resource and links. Director Hollis highlighted the medical website page at www.ssf:.net as a beneficial resource and demonstrated the website's use as a warehouse of information available to the community. AGENDA REVIEW City Manager Barry Nagel advised Council hold off on Consent Calendar Item No. 5 until they had a chance to hear Redevelopment Agency Closed Session Item No. 8. PUBLIC COMMENTS Resident Jeanette Holt discussed the upcoming event Relay for Life, taking place on Saturday, May 16 at 10 a.m. through Sunday, May 17. Mrs. Holt noted that this year the City had 25, 10 - 15 member teams each taking a shift in a 24 hour walk to raise money in the fight against cancer. Highlighted were the day's events and schedule. The public was invited to attend and sign up to walk or just be a supportive spectator. For further questions, Ms. Holt provided Relay for Life's website at www.relayforlife.org and information leaflets were left at the back table. REGULAR CITY COUNCIL MEETING May 13, 2009 MINUTES PAGE 2 Liza Normandy announced in honor of May being Asian Heritage Month, a celebration would be held Sunday, May 17th at the Joseph A. Fernekes Community Center in Orange Park. The program would feature abuffet-style lunch, entertainment from various Asian cultures, the art of Japanese Paper Folding (origami) and a demonstration on the art of using chopsticks. Costs for the celebration were reported as $8 for adults and $3 for children 12 under before 1 pm, and $5 for adults and free for children 12 and under after 1 pm. Ms. Normandy provided the RSVP phone number at (650)255-9974 and requested that interested parties leave their name, contact number and number of expected guests. Flyers were provided to Council and meeting attendees. ITEMS FROM COUNCIL • Announcements. • Committee Reports. Council members announced upcoming events, programs and public improvements and reported on individual attendance at community meetings and events. Specific items for further action and/or consideration were set forth as follows: Councilman Garbarino reported his attendance of the Airport Land Use meeting where development issues were discussed. Events reported on included the Cinco de Mayo event, judging the Malloy's Chili cook-off, and the ribbon cutting ceremony for the new Vietnamese restaurant, Da Thanh, on Linden Avenue. Councilman Garbarino also noted his attendance of the retirement dinner for Chief Raffaelli and offered his congratulations to Mike Massoni, the newly appointed Chief of Police. Lastly, the Councilman attended the Arbor Day Tree Planting Ceremony at Orange Park and opening day of the Farmers' Market. Councilman Gonzalez reported his attendance of the California Regional Water Quality Control meeting along with Public Works Director, Terry White. Permits being imposed upon the cities were discussed and many of the Mayors and local government officials in attendance voiced their opposition and asked the Board to reconsider their requests, as they had asked for too much. The Councilman thanked Mayor Matsumoto, Councilman Garbarino and Assistant to the City Manager Susan Kennedy, for obtaining the current site for the Farmers' Market. Councilman Gonzalez reported on his attendance of a meeting with the US Dept of Commerce and US Census Bureau representatives and Carla Molina and Doren Martin of the North Peninsula Neighborhood Services Center. Noted was the collaboration's hope to address Council in the future and gain support in its efforts to collect Census data. Among other events attended were the Ronald McDonald Scholarship Program, where over $170,000 in scholarship money was awarded, and the Mayors' Diversity Celebration Award hosted by the San Mateo County Hispanic Chamber of Commerce. Lastly, Councilman Gonzalez requested Council adjourn in memory of Paul Tognetti, retired South San Francisco fireman. Councilman Mullin thanked former Police Chief Raffaelli for the progress made with red light cameras, finally approved by Caltrans for the El Camino Real and offered his gratitude to the former Police Chief, Sgt. Paul Ritter and Officer Mark Saunders for arranging his ride-along with the South San Francisco Police Department. This opportunity gave him a new appreciation for the role police officers play in our community. He further reported his attendance of a speech given by Governor Schwarzenegger at the Bay Area Council event in support of the measures for the May 19 election and urged citizens to vote. Other noted events included the High Speed Rail forum sponsored by Assembly member Jerry Hill, the City Employee Recognition Luncheon, dedication of the Joseph A. Fernekes Community Center in Orange Park, the School REGULAR CITY COUNCIL MEETING May 13, 2009 MINUTES PAGE 3 District and Police Athletic League's Booster Night at the Giants game and the H.E.A.R.T. Workforce Housing Luncheon. Vice Mayor Addiego reported his and Councilman Garbarino's attendance of the Finance Subcommittee meeting where City Treasurer, Dick Battaglia and Chandler Asset Management reported on budget projections to be presented to Council at a future date. Social highlights included the Farmers' Market and the retirement party of Chief Raffaelli. The Vice Mayor commented that while Council members come and go, South San Francisco Chiefs of Police have included only six (6) individuals and he looked forward to the many years of service from Chief Mike Massoni. Mayor Matsumoto commented on the hectic pace of the past week, acknowledged and thanked the Library Service Volunteers and the Police Reserves and Service Volunteers. The Mayor also noted May as Older Americans' Month. Mayor Matsumoto reported on her attendance of a public forum sponsored by the Community Action Agency of San Mateo County who was in the midst of preparing their annual CDBG plan and gathering information from various communities. Mayor Matsumoto requested staff follow up with the agency in the hopes of obtaining some of the monies and access to the programs for community members that may need some of the various services the agency had to offer. Also attended by Mayor Matsumoto was the SamTrans Board meeting where 2010 budget issues were discussed. The Mayor reported SamTrans had anticipated a shortfall of $30 million and was trying to reduce the budget by $5 to $10 million. This reduction would likely result in service cuts and layoffs. For informational purposes, the Mayor reported the California Commission on Economic Development had appointed her to the Advisory Committee on Biotechnology. Again, she called on staff to report the City's success on Biotechnology. CONSENT CALENDAR 1. Motion to approve the minutes of Apri122, 2009 and April 27, 2009. 2. Motion to confirm the expense claims of May 13, 2009 in the amount of $5,145,140.05. Motion to accept the Industrial Sewage Pumping Station No. 4 Rehabilitation Project as complete in accordance with the plans and specifications. 4. Resolution authorizing the filing of an application to the Metropolitan Transportation Commission for Transportation Development Act Article 3 Pedestrian and Bicycle Project funding for the Fiscal Year 2009/2010 for the In-Ground Lighted Crosswalk Project and the Bay Trail Improvements Project, committing the necessary non-federal match for the projects and stating the assurance of the City of South San Francisco to complete the projects. 6. Acknowledgement of Proclamations issued in honor of: the retirement of Chief of Police Mark Raffaelli; Police Services Volunteer Week; Police Reserves Officer Day; Arbor Day; and Public Works Supervisor Frank McAuley in recognition of his receipt of the 2008 Employee of the Year Award. REGULAR CITY COUNCIL MEETING May 13, 2009 MINUTES PAGE 4 The Mayor requested to continue the Employee of the Year Award acknowledgment until its recipient, Frank McCauley, was able to attend a Council meeting. Councilman Gonzalez relayed his personal history with Chief Raffaelli and commended him for many successful years of dedication and service to the City. Furthermore, he expressed personal his gratitude and respect for the former Chief. The Councilman also wished the best of luck to our new Chief of Police, Mike Massoni. Motion -Councilman Garbarino/ Second -Vice Mayor Addiego to approve items 1-4 and 6. Unanimously approved by voice vote. Recess: 8:21 p.m. Meeting Resumed: 8:58 p.m. 5. Resolution Approving Memorandum of Understanding with Oyster Point Ventures LLC and Resolution approving MOU with the San Mateo County Harbor District related to potential development of Oyster Point Business Park and Oyster Point Marina. Economic and Community Development Director, Marty Van Duyn presented staff report and noted the presentation covered both Item No.7 of Redevelopment Agenda and Item No. 5 of the City Council Agenda. The items would be covered together but voted on as separate actions. Director Van Duyn gave a PowerPoint presentation which detailed the history and outline of the Oyster Point Marina Project plans (Project). Oyster Point Ventures LLC, a joint venture between Shorenstein Properties and SKS Investments LLC ("S/SKS"), had recently purchased the Oyster Point Business Park, which is adjacent to the Oyster Point Marina, for the purpose of developing the Oyster Point Business Park into a modern research and development life sciences campus. The concept plan also included a Ferry Village/Oyster Point Marina, recreations/open spaced areas, major landscaping improvements, commercial uses, a hotel and new street configuration. The Project would be built in phases and in order to initiate development of the Infrastructure improvements, the Project required an investment of $16,640,908 from the Redevelopment Agency. Director Van Duyn further explained City staff and S/SKS had since negotiated and developed non-binding Memorandums of Understanding that established a mutual understanding among the City, Agency and S/SKS regarding (1) a description of the Project to undertake the required analysis by the City and Agency pursuant to the California Environmental Quality Act ("CEQA"), (2) the feasibility of the project and allocation of estimated costs among the parties, and (3) the necessary planning activities, entitlements and agreements to implement the Project. The MOU's were preliminary, non-binding agreements that would not commit the City to a definite course of action or foreclose consideration of alternatives; and certification of environmental review pursuant to CEQA would be required prior approval of any land use entitlements for the Project; therefore, execution of the MOU's was not an "approval" of a "project," as those terms are defined in CEQA. Mayor Matsumoto requested clarification as to property ownership reflected in the report and if City owned property was the key to this project. She also questioned the occupancy and boat slips on S/SKS portions of property, the origin of the $16.64 million dollars, the debt involved, and whether or not the money could be used to fund other Redevelopment projects. REGULAR CITY COUNCIL MEETING May 13, 2009 MINUTES PAGE 5 Director Van Duyn used an electronic highlighter in response to property ownership and activity for future development. He confirmed that City owned property was a key element to the Project. He further stated that occupancy had an interesting mix of land use with unknown vacancies and boat slips. In response to the origin of the funds, Director Van Duyn explained funds were borrowed against existing bond funds from the four (4) merged Redevelopment areas with a current debt of $24 million. Out of that, $19 million was committed to several projects including the parking garage, train station, downtown real estate acquisition and sewer fund loans. $5.1 million was uncommitted. He further explained the money could be used to fund any other Redevelopment projects which could include the El Camino Corridor and Downtown Central projects. The presentation continued with the review of the Ferry village plans, public portion of development locations, landscaping locations, and intended improvements of the bay trail. Director Van Duyn then reviewed the Land Exchange Agreement, which included the conveyance of the King's leases to the city, valued at $7.5 million. It was noted that Shorenstein would undertake environmental remediation for the City with an estimated investment of $17.8 million and pay the City $4.5 million. The exchange could not occur until S/SKS commenced construction. The Development Agreement and Owner Participation Agreement terms were also reviewed. Mayor Matsumoto questioned if the City could purchase the King leases if so desired. Director Van Duyn stated that the City had the option but not the obligation to purchase the leases and the City retained certain rights, such as acquiring King's leases, if S/SKS does not perform within the 10 years and deliver a commitment to complete and construct Phase I. A timeline for Project milestones was presented. Director Van Duyn then explained the Memorandum of Understanding (MOU) with the Harbor District. The purpose of the MOU was to establish anon-binding mutual understanding among the City, Redevelopment Agency and the Harbor District regarding: (1) potential and anticipated fiscal impacts of the Project to the Harbor District, (2) ongoing operations and management of the Marina, and (3) the necessary planning activities to implement the Project and redevelop and operate the Marina. A cap for the City's contributions to the District was reported to be an estimated $30 million. Should hotel or commercial space be developed at the site, the Harbor District would share in the financial participation along with the City. Transient Occupancy Tax (TOT) and sales tax would be revenue for the City, which it could choose to share with the District or, as in the previous hotel proposal, a gross revenue exaction amount would be targeted as revenue for the District. Mayor Matsumoto questioned who would be responsible for the development of a hotel at the site and if TOT had to be shared with the Harbor District. Director Van Duyn responded the Redevelopment Agency would provide seed money and most likely take the lead in the development of a hotel, but consultations would be made with the District. However, unless the current agreement under the JPA was amended, the Harbor District retained the leasing authority for the properties. Under the agreement, TOT was merely given as a potential source of District revenue. It could be left untouched and revenues for the Harbor District could instead be provided from other areas such as tax increment funds or an adjustment of the gross rent. REGULAR CITY COUNCIL MEETING May 13, 2009 MINUTES PAGE 6 Mayor Matsumoto noted this was land owned by the City. She questioned the revenue generated for Harbor District since they took over the management. She also questioned if the City shared any of the boat slips/rentals with the District. Director Van Duyn stated prior to the area being a Redevelopment area three (3) years ago; there were no funds that went directly to the city. Capitol borrowing was being paid back by the District through other agencies and had no relationship to paying the City. As an offshoot, the City received sales taxes for the general fund. However, due to the low occurrence of retail in the area, little sales tax was generated. Boat slips/rentals funds went directly to the Harbor District, which they used for maintenance operations. Vice Mayor Addiego explained prior to the Harbor District's involvement with Oyster Point Marina, it was an expense to city. Director Van Duyn continued the presentation and stated the next step would be for the City to consent to the assignment of the King leases to S/SKS. Future analysis and infrastructure cost studies would be done as currently viewed spreadsheets were the best estimate available for review. These studies would take place before the City committed to any binding agreements. There were no foreseen major discrepancies between the numbers reported now and the numbers expected. Director Van Duyn stated S/SKS would undertake improvements to the King leaseholds, a major element of the negotiation as facilities had been unimproved upon for some time. S/SKS had assured the City it had planned to bring properties into better standards and $1.4 million dollars of improvements were to be immediate. Director Van Duyn ended the presentation and asked Council if there were any further questions. Councilman Garbarino questioned the status of the fitness center previously approved by Council. Director Van Duyn responded it was still a valid development, the lease existed, and the applicant had desired to proceed. He further explained that several years may go by before those buildings would be raised but the applicant understood. He did not feel the project was in jeopardy. Vice Mayor Addiego questioned if the $1.4 million in improvements was to be applied to the buildings clustered around the beach area, when the soonest opportunity for the buildings to come down would be and whether or not the time frame would be determined by the City. Director Van Duyn confirmed the referenced buildings would be affected, as well as, the fuel docking station, which was currently not in use. This could not happen until entitlements were completed, finances were assured and a construction contract was initiated. After all these elements were completed, the time frame would be mutually agreed upon between the City and S/SKS. Councilman Gonzalez requested clarification of the stated 2013 projected commencement date. Director Van Duyn clarified the 2013 date as the projected best effort schedule. REGULAR CITY COUNCIL MEETING May 13, 2009 MINUTES PAGE 7 City Attorney Steve Mattas made a point of clarification as to the projected date being an optimistic schedule. Director Van Duyn concurred with Attorney Mattas and further stated optimistically, it would be four to five years. Mayor Matsumoto questioned if the concentration would be on the office buildings being the first project built and when the projected ribbon cutting date would take place. Also questioned was the projected date for groundbreaking on the Ferry Village, retail spaces and hotel. Director Van Duyn responded the life science and office facilities would be the first to commence and the earliest for groundbreaking for just the infrastructure would be four (4) years out and six (6) years out to have the pads ready to begin to solicit the interest of retailers and hotels. Mayor Matsumoto expressed concern over the setback in scheduling that has already occurred in regards to the Ferry Village and the Water Emergency Transportation Authority (WETA) contract. She questioned WETA's contractual obligation if the ferry ridership was not there. Director Van Duyn clarified that the name "Ferry" was there to help stimulate the relationship between where the village, the activity and the ferry might benefit. If the ferry were not there, he felt the attraction to the location, as far as hotels and retailers were concerned, would not be diminished and financing was not tied to the performance of the ferry. Mayor Matsumoto questioned how much money the City had to borrow to meet its financial obligations. Director Van Duyn stated the City had the opportunity to sell over $50 million more in bonds. For this particular Project the amount would be $16.6 million, to be paid back out of the expected revenues generated out of the completed Project. Councilman Gonzalez questioned when the Council might receive more information pertaining to the Project and could Council request more information from Staff within the next six (6) months. Director Von Duyn responded that Staff intended to come back to Council periodically with progress reports, which would not necessarily require any action. Also, Council could request Staff to come back at anytime, within six (6) months if so desired. Attorney Mattas noted it was likely that Council would be seeing documents consenting to a joinder pertaining to the King leases. Formal documents would be presented for action at the next meeting. With a current shortfall of $2 million taken into consideration, Mayor Matsumoto expressed a concern of a potential of $3 million being needed from the general fund. She questioned if the fund was responsible for public safety and grounds maintenance issues and if so, would the money not be better spent elsewhere, with a quicker return and not having to be shared with the Harbor District. REGULAR CITY COUNCIL MEETING May 13, 2009 MINUTES PAGE 8 Director Van Duyn expressed his understanding and noted concern as a critical factor for reducing time frames of development in order to generate revenue needed for other Redevelopment projects. However, he stated the Project was along-term investment as compared to the other developments being mid-range and immediate investment areas and he felt confidant in this type of staging. He further stated money would still be available for other projects throughout the City even though a substantial amount of Redevelopment money was being put up. It was further explained anticipated revenues of $1.6 million generated from property taxes, TOT, vehicle in lieu fees, and sales tax would go into the general fund. Director Van Duyn stated Council had the right to decide if funding would be better used for Capital Improvement Projects elsewhere, but felt the purpose of Redevelopment was to reinvest money into development areas. He clarified funding for public safety and maintenance services would likely be out of the general fund and further details would need to be discussed with Council at a future date as this issue may be a key in how terms were negotiated. Vice Mayor Addiego made a point of clarification as to how much effort would be needed to generate $1.6 million into the general operating fund and noted that $1 billion dollars in improvements to the property tax-rolls would be needed generate that type of money. He further stated though he sees the complexity of the project, he also sees the big picture of the re-creation of Oyster Point, which cannot happen without $16 million. Councilman Garbarino concurred with the Vice Mayor and saw the Project as the next step. Furthermore, he felt the City could not afford to pass up this opportunity. Councilman Mullin applauded staff for their many hours of work. He expressed that he understood the uncertainties but felt that the Project would solidify the City's position as a national leader in Life Sciences. Councilman Mullin stated the City should seize the opportunity and show confidence in the community's ability to generate private investment. He further stated his confidence in the ability to balance the Project with other development projects on the West side. While he agreed that there was a risk, he also felt it was a good investment. Councilman Gonzalez stated during his nine (9) years on the Council he had little expectations for Oyster Point, but with the current Project he had hope and this was why he was supporting the effort. In regards to the ferries, he felt they would come to fruition and the City had a responsibility to help the ferries succeed as they went hand in hand with the development. Councilman Gonzalez offered his support for the Project. Mayor Matsumoto stated she felt the Project was too speculative and would prefer S/SKS develop their currently owned property and for the City to reap the benefits. For all of her previous stated reasons, she was not comfortable in giving her support to the Project. Motion -Vice Mayor Addiego/2"d -- Councilman Garbarino: to adopt Resolution No. 37-2009. The motion was approved by the following roll call vote: AYES: Councilmen Garbarino, Gonzalez and Mullin, Vice Mayor Addiego. NOES: Mayor Matsumoto. ABSTAIN: None. ABSENT: None. Motion -Councilman Garbarino/2"d -Councilman Gonzalez: to adopt Resolution No. 38-2009. The motion was approved by the following roll call vote: AYES: Councilmen Garbarino, Gonzalez and Mullin, Vice Mayor Addiego. NOES: Mayor Matsumoto. ABSTAIN: None. ABSENT: None. REGULAR CITY COUNCIL MEETING May 13, 2009 MINUTES PAGE 9 CLOSED SESSION 7. Conference with Legal Council: Anticipated Litigation. (Pursuant to Government Code § 54956.9(b)) Significant Exposure to Litigation: One Case. Closed Session opened 10:25 p.m. Report out of Closed Session: Direction. given. No reportable action taken. 8. Conference with Legal Counsel: Existing Litigation. (Pursuant to Government Code § 54956.9(a) South San Francisco v. State BOE. Open Session Resumed: 11:40 p.m. Report out of Closed Session: Direction given. No reportable action taken. COMMUNITY FORUM None ADJOURNMENT Being no further business, Mayor Matsumoto adjourned the meeting at 11:40 p.m. in memory of Paul Tognetti. Submitted by: Approved: ~~. Anna M. Hernandez, Deputy City rk City of South San Francisco Karyl`A~.tsumoto, Mayor City of South San Francisco REGULAR CITY COUNCIL MEETING MINUTES May 13, 2009 PAGE 10