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HomeMy WebLinkAboutMinutes 2011-12-14 (2) � SA1y�p MINUTES o CITY COUNCIL CITY OF SOUTH SAN FRANCISCO c911Foleo* REGULAR MEETING MUNICIPAL SERVICES BUILDING COMMUNITY ROOM 33 ARROYO DRIVE WEDNESDAY, DECEMBER 14, 2011 CALL TO ORDER: TIME: 7:00 P.M. ROLL CALL: PRESENT: Councilmembers Addiego, Matsumoto and Mullin, Vice Mayor Gonzalez and Mayor Garbarino. ABSENT: None. PLEDGE OF ALLEGIANCE: Led by Mayor Garbarino. PRESENTATIONS • Proclamation honoring the Retirement of David Castagnola, Superintendent of the Water Quality Control Plant, after nearly 40 years of employment with the City. Mayor Garbarino presented Superintendent Castagnola with the Proclamation and thanked him for his dedicated and long tenured service to the City. Superintendent Castagnola thanked Council for the honor and stated it was his honor to serve the citizens of South San Francisco since 1972. He commended Councils present and past for showing concern regarding environmental health. He also thanked Director White for his leadership. • Proclamation honoring service of Director Robert Craig of the Westborough Water Board of Directors. Vice Mayor Gonzalez presented Director Robert Craig with a proclamation honoring his over 30 years of service on the Westborough Water District Board of Directors. Director Craig thanked Council for the honor and accepted the proclamation on behalf of the men and women of the District who work hard to make the water district of top quality. • Update on 11.25.11 Water Line Failure presented by SFPUC. Steve Richie, SFPUC Assistant General Manager, presented Council with an update on the investigation into the November 25, 2011 water line failure near Elm Court in South San Francisco. A series of slides depicting the location of the failure and the suspect coupling were displayed via PowerPoint Presentation. Mr. Richie then presented an Emergency response to timeline of the incident as follows: 9:45 AM Initial, smaller vault leak reported to SFPUC 10:00 AM So. San Francisco fire and police respond 10:15 AM Larger (12" diameter) pipe fails resulting in major leak 10:25 AM SFPUC crews arrive on site (en route at 9:55 am) 10:45 AM Response plan formulated and additional crews called in 11:45 AM SFPUC staff began closing large (5 foot diameter) CSPL valves 12:30 PM Large CSPL valves closed 12:30 PM SFPUC staff lowered into trench at Elm Court incident site to access 12" shutoff valve 12:45 PM Shutoff valve closed and leak stops 2:00 PM Full scale cleanup begins 4:00 PM Restoration contractor begins home cleanup. After presenting the timeline Mr. Richie explained the shutoff valve needs to be closed very slowly to avoid water hammer effect that causes damage further up the line. Mr. Richie next explained the incident follow -up involved the following: An independent expert was retained to fully investigate the cause of failure; the agency identified all other similar WSIP connections (35), reviewed design standards and construction management procedures, and proactively made some revisions. He noted that the independent expert report was expected in about 2 weeks. He explained the remedial actions being taken to compensate those whose homes were damaged and noted SFPUC was working with South San Francisco to address storm drains and confirm that no other South San Francisco assets are damaged and unrepaired. Councilman Mullin stated appreciation for the presentation but noted a number of concerns. He queried whether the water involved in the failure was utilized in South San Francisco or elsewhere. Mr. Richie advised the line involved was a service connection to South San Francisco and that the City was one of the 10 or so customers along the way served by the pipeline. Councilman Mullin questioned whether the failure caused a disruption of water service to South San Francisco neighborhoods. Mr. Richie responded that due to redundant systems there was no service interruption. Councilman Mullin stated he would ultimately like to know the cause of the incident. He then stated concern regarding the level of communication from SFPUC in the wake of the incident. He stated he was underwhelmed with the SFPUC response in the immediate aftermath which left City Officials with little information to provide to the community. He noted it was 72 hours before City Officials saw an email from SPFUC regarding the incident and there was no call from anybody during that time period. He observed this was surprising in light of the top notch level of communication the City had experienced from the SFPUC on the recent replacement project. He reiterated that his primary concern was determining the cause and making sure it does not happen again. He wanted further assessment of the impact on the community noting it was a major incident in the affected neighborhood. REGULAR CITY COUNCIL MEETING DECEMBER 14, 2011 MINUTES 2 Vice Mayor Gonzalez stated he looked forward to the report of the independent expert and its conclusion regarding repairs. He noted that he believed it took too much time to turn the water off. Councilman Addiego commended the South San Francisco Department of Public Works for its focused response to the incident on a holiday. He further commented on the good nature of the citizens in South San Francisco who showed tolerance in the face of the emergency. He further commented that the City required a lot more information from SFPUC before the issue was put to rest. Councilwoman Matsumoto stated that a memorandum issued by City Staff the day after the incident included a timeline that differed from that presented by Mr. Richie earlier in the evening. She noted that South San Francisco first responders could not reach anyone at SFPUC for sometime. She believed a better regional communication system was called for. Mayor Garbarino echoed his colleagues concerns. He stated more information was required on the cause as well as assurances that this would be prevented from occurring in the future. • Update on PG &E Pipeline Repair Project. Ashlie Simpson of PG &E Government Relations appeared before Council to provide an update on recent gas pipeline work in South San Francisco along Mission Road. She stated that construction was completed and the line was put back into service on November 22 in advance of the December 1, 2011 deadline. She thanked the City for working hard to minimize impacts on residents during construction. Councilman Addiego stated it was gratifying to see construction workers helping with traffic issues caused by the construction. He noted, however, that the construction was fairly impactful on local businesses particularly those in the Sunshine Gardens Shopping Center. He encouraged PG &E to check in with businesses in the Center to determine if they were impacted as much as it appeared. Councilwoman Matsumoto thanked PG &E for advising of the construction in its newsletter. Councilman Mullin stated PG &E was very proactive in its level of communication and moved aggressively on the project. AGENDA REVIEW None. PUBLIC COMMENTS Jackie Jo Lopez addressed Council regarding issues she perceived the body had with her landlord Mrs. Metwally. Ms. Lopez stated she was an entrepreneur and noted Mrs. Metwally had helped her with her business. She believed the City was suppressing Mrs. Metwally instead of embracing her and moving forward. Ms. Lopez stated she met with REGULAR CITY COUNCIL MEETING DECEMBER 14, 2011 MINUTES 3 Councilmembers on November 24 and her business was nearly shut down. She noted she built her business from scratch. She stated Cities should be working with small businesses and not against them as we are all in it together. Mrs. Metwally stated City staff was discouraging her tenants from doing business. She would appreciate Council working with her to remedy the situation. Kate Comfort Harr, the Executive Director of HIP Housing, thanked Council for its support throughout the year. She also presented the Annual Calendar featuring children's drawings depicting the meaningfulness of their homes. Fire Captain Travis Knuckolls appeared to advise that the Fire Department's Holiday Toy Drive was in full swing, but noted it was not too late to donate a toy. Donations would be accepted all the way up to Christmas Eve. There was a need for toys for the age groups of 0 -3 and 12 and over. ITEMS FROM COUNCIL • Announcements. • Committee Reports. Councilmembers reported on attendance at community meetings and events including a League of California Cities Board of Directors Meeting, a WETA Meeting, a SamTrans Meeting, a Familias Latinas Meeting, the Town of Colma's Reorganization, a meeting of the SFO Community Roundtable and a Peace March from South San Francisco High School organized to raise awareness related to recent violent and tragic acts that would not be tolerated by City Officials and residents. Council congratulated and thanked Aysha Haq, the inspiring mother of victim Joseph Maharaj, for suggesting the Peace March and courageously standing to up to advocate for peace in the Community. Announcements regarding upcoming events pertained to the following: A January 13 Round Table Discussion that would be held at the College of San Mateo pertaining to the Building of Healthy and Safe Communities for the County's youth. Specific items for further action and /or consideration were set forth as follows: Councilwoman Matsumoto noted comments regarding Burlingame's efforts to deal with concerns over the installation of wireless towers that were set forth recently in the Daily Journal. She requested that staff speak with staff in Burlingame regarding their efforts. The Councilwoman also posed questions for Chief Massoni pertaining to the operations of the NRT between 11.11.11 and 11.20.11 as well as the impact on South San Francisco of neighboring Cities' possible consolidation of Police services with the County Sheriff's Department. Regarding the NRT, Chief Massoni responded that there were no community meetings for the group to attend during the specified time period. In addition, there were no code enforcement referrals during the same interval. He stated, however, that foot patrols had resumed. REGULAR CITY COUNCIL MEETING DECEMBER 14, 2011 MINUTES 4 Regarding the impact of local cities' consolidation of Police Services with the Sheriff's Department, the Chief noted that Sherriff Munks has stated that the Department would honor the mutual aid agreements for the Cities it contracts with. Councilwoman Matsumoto next expressed concern about the recent financial incident at the County's Mosquito Abatement District. She requested that staff invite Director Robert Gay to appear at a Council Meeting and address Council regarding the issue. • Current Projects Review. Councilwoman Matsumoto presented a slide show depicting the recent accomplishments of the Improving Public Place Committee. The presentation highlighted beautiful floral panels recently installed by the group along Centennial Way. Several recent local plantings were also displayed. The Councilwoman also announced the January 21 dedication of the Evohelix Sculpture installed on Centennial Way's Spruce Avenue intersection. She thanked staff and IPP Committee members for their dedication to the program. • City Selection Committee Appointments. Council discussed and provided direction for the Mayor's first round vote at the December 16, 2011 Council of Cities Meeting in Colma as follows: Bay Area Air Quality Management District: Councilmember, Carol Klatt, Daly City Domestic Violence Council: No candidates presented Domestic Violence Council Alternate: Vice Mayor, Pedro Gonzalez, South San Francisco TA Cities at large: Council Member, David Lim, San Mateo TA North County: Councilmember, Helen Fisicaro, Colma Chairperson to the City Selection Committee for 2012: Vice Mayor, Maryann Moise Derwin, Portola Valley Vice Chairperson: No candidates presented. CONSENT CALENDAR 1. Motion to approve the minutes of October 18, 2011, November 9, 2011, November 15, 2011, December 5, 2011 and December 6, 2011. 2. Motion to approve expense claims of December 14, 2011. 3. Motion to waive reading and adopt ordinance 1452 -2011 - City Wide Minor Zoning amendments. to re- establish Shopping Center Parking Regulations including revisions to the On -Site Parking and Loading Use table and Division IV, General Terms; and to revise the Land Use Regulations for the Downtown Districts to allow clinics and medical/business /professional offices on the ground floor, including revisions to the Land Use Regulations table, to further clarify the location of permitted or conditionally permitted uses; and make content and format changes to Chapter 20.350 to include additional standards and regulations for clinic uses in accordance with South San Francisco Municipal Code Chapter 20.550. REGULAR CITY COUNCIL MEETING DECEMBER 14, 2011 MINUTES 5 4. Resolution No. 136 -2011 awarding a Consulting Services Agreement to URS Corporation, of San Jose, California for design services of the Bridge Preventive Maintenance for Seven Bridges Project (Project No. st1009) in an amount not to exceed $36,247.54. 5. Resolution No. 137 -2011 approving the Annual Impact Fee and Sewer Capacity Charge Report. 6. Motion to accept the Paradise Valley Storm Drain Repair Project (Project No sd1101) as complete in accordance with the plans and specifications. 7. Motion to accept the Siebecker Childcare Expansion Project (Project No. pfl 018) as complete in accordance with the plans and specifications. 8. Motion to accept the 2011 Street Scrub Seal & Micro - Surfacing Project (Project No. st1201) as complete in accordance with the plans and specifications. 9. Motion to accept the East Grand Avenue - Haskins Way Traffic Signals Installation Project (Project No. tr1011) as complete in accordance with the plans and specifications. 10. Resolution No. 138 -2011 authorizing the City Manager to execute the Program Supplemental Agreement No. 018 -N with the State of California for preliminary engineering of the Grand Avenue /Magnolia Avenue traffic signal located in the City of South San Francisco. 11. Resolution No. 139 -2011 authorizing the Acceptance of $15,880 in Grant Funding from the FY 2011/2012 Bureau of Justice Assistance Grant program and amending the Police Department's 2011/2012 Operating Budget. 12. Resolution No. 140 -2011 designating City representative to the San Mateo County Housing and Community Development Committee. 13. Resolution No. 141 -2011 accepting a grant amendment in the amount of $30,000 from the Bay Area Suburban Area Security Initiative (SUASI) to purchase medical equipment (cardiac monitor /defibrillator), water rescue suits, tools and equipment; amending the Fire Department 2011 -2012 Operating Budget, and authorizing the City Manager to sign a Memorandum of Understanding. 14. Resolution No. 142 -2011 approving the side letter to the current Memorandum of Understanding between the City of South San Francisco and the South San Francisco Police Association, dated July 1, 2011 through June 30, 2012. 15. Resolution No. 143 -2011 approving the side letter to the current Memorandum of Understanding between the City of South San Francisco and the American Federation of State, County, and Municipal Employees, Local 829, dated July 1, 2011 through REGULAR CITY COUNCIL MEETING DECEMBER 14, 2011 MINUTES 6 June 30, 2012. 16. Resolution No. 144 -2011 approving the side letter to the current Memorandum of Understanding between the City of South San Francisco and the International Association of Firefighters, Local 1507, dated Julyl, 2011 through June 30, 2012. 17. Resolution No. 145 -2011 approving the side letter to the current Memorandum of Understanding between the City of South San Francisco and the International Union of Operating Engineers, Local 39, dated July 1, 2011 through June 30, 2012. Motion— Councilman Addiego /Second— Vice Mayor Gonzalez: to approve the Consent Calendar. Unanimously approved by Voice Vote. ADMINISTRATIVE BUSINESS 18. Resolution No. 146 -2011 to approve the final design for the restoration of Paradise Valley pocket park, and amending the 2011 -2012 Capital Improvement Program in the amount of $355,000 to complete the work. Public Works Director Terry White presented the staff report and a Power Point presentation detailing the information regarding the project. Director White reported that heavy rains in March 2011 caused two storm drains under the park to collapse, creating a large sinkhole. The park was closed and received temporary repairs pending investigation and permanent repairs. The investigation revealed that the rains caused serious damage to the park's walkways and turf; accordingly, private fences were removed to allow for permanent repairs. Due to the cost of repairs, it was decided to study whether the park met the needs of its users, which were mainly the park's immediate neighbors. Parks and Recreation Director Ranals explained the public outreach that took place in order to gain feedback from residents. Callander Associates Landscape Architecture and Design ( "Callander ") was contracted to design repairs incorporating residents' ideas. Feedback generated included the addition of a dog park among other things, but at a later meeting, residents preferred to restore the park to its original use without any additions. Callander prepared a final design which was unanimously approved by the Parks and Recreation Commission at its December 1 meeting. Brian of Callander and Associates reviewed the design and proposed improvements with a PowerPoint presentation. Mayor Garbarino noted two speaker cards. Resident George Stammerjohn stated he owns one of the first houses as you enter the park. He attended all the meetings and approved of the plans. He hoped Council would approve the plans. He supported staff' recommendation to remove the eucalyptus tree that was a safety concern. REGULAR CITY COUNCIL MEETING DECEMBER 14, 2011 MINUTES 7 Jackie Jehl felt the design was wonderful except for the proposed removal of the Eucalyptus Tree. The trees are alive and healthy and she felt they were only targeted to avoid maintenance. She also noted that they were good for air quality, housed nests for the protected red tailed hawk and kept the rodent population down. The block is located less than three blocks from HWY 101 as well as SFO causing noise and pollution to be greater. She hoped the design would be changed to keep the entrance to the park the way it has been. Director White stated an amended resolution was included and required action in regards to funding. Councilmember Addiego questioned the level of use the space had enjoyed. Director Ranals responded the neighbors expressed their appreciation for the park and considered it a hidden gem. It is a passive recreation area, nicely forested. Some negative activity has occurred but neighbors have tried to remain vigilant in reporting such occurrences. Perceived hiding places have been designed out, creating better lines of sight. Councilmember Addiego respected the neighbors' desire to have a cared -for green space buffer between homes. He liked the bioswale and thought perhaps the park could be an education tool and means to increase native species. Brian of Callander and Associates explained the prominence and features of the bioswale, noting it as a major impact to the site. Councilmember Mullin asked for the rationale in removing the eucalyptus tree and queried the type of Measure A funding being utilized to support the project. Director White stated Measure A, which has a transportation requirement, was applied because the application was originally to help with watershed on local streets such as Franklin and Hemlock. Director Ranals stated the City Arborist Drew Arzaga gave three (3) reasons why the tree needed to be removed: (1) Multi - trunked, 90 ft tall and prone to fall apart, basically structurally deficient, (2) large top heavy trunk with an extreme lean at the entrance to the park, the tree could experience failure, (3) the target area under the tree generated safety concerns for the residents, children and other structures. She noted every tree removal is taken seriously and in consideration of the Heritage Tree Ordinance. Vice Mayor Gonzalez enjoyed the park himself many times, and the many functions that took place there. He agreed with residents wanting to keep it the same. It was a hidden park, so he suggested that in the future it be patrolled a little more often. He asked if the entrance on Hillside was included in the renovations. Director Ranals responded that it was not within the scope of this project. Vice Mayor Gonzalez asked Director Ranals to let Council know when improvements to that area could be completed and reiterated his preference for the entrance to be included as REGULAR CITY COUNCIL MEETING DECEMBER 14, 2011 MINUTES 8 part of these renovations. While she likes bioswales, Councilmember Matsumoto found them to be high maintenance and asked if those costs were factored into the $400,000. Director Ranals stated the costs were not, but would be absorbed by existing staff time. With renovations and remodeling need for maintenance would be greatly reduced. Councilmember Matsumoto stated she had fought for the eucalyptus in Orange Park, but agreed with the removal of this particular tree. She understood that the shallowness of the roots of the eucalyptus made it more prone to falling. Director Ranals understood that it wasn't the danger of the entire tree falling but rather giant branches falling off and failing. Motion - Councilmember Mullin/Second - Councilmember Matsumoto: to approve Resolution No. 146 -2011. Unanimously approved by voice vote. 19. Resolution No. 147 -2011 authorizing the City Manager to execute a grant agreement between the Metropolitan Transportation Commission (MTC) and the City of South San Francisco (City); accepting a grant in the amount of $600,000 from MTC in order to prepare the Downtown Station Area Specific Plan (SASP) and Environmental Impact Report (EIR); awarding the SASP and EIR to BMS Design Group of San Francisco, California. Principle Planner Gerry Beaudin presented the staff report outlining the infrastructure improvements and other physical changes that would be detailed in the specific plan and worked on by BMS Design Group. The total fund for the project was $720,000. Selection of BMS came after interviewing five (5) consultant teams out of the seven (7) bids that were received. The interview panel included members of City staff and ABAG staff. BMS had worked extensively in land use and transportation areas of planning and had actively sought community involvement with past projects. BMS had also worked successfully with MTC and ABAG and planned on bringing in a sub consultant that the City has had prior success with. BMS Project Manager Barbara Maloney was present to address any further questions. Councilman Mullin applauded staff for the development. He was excited about what this development would mean for the downtown. Vice Mayor Gonzalez asked the location of the proposed improvements. Referring to the map, Planner Beaudin noted the Caltrain station as being in the center. Although these areas were not typically thought of in the past, there were certainly opportunities to make connection improvements, reduce auto use and enhance public transportation options, specifically directly east of the station. The Vice Mayor applauded the plan and saw it as an opportunity to bring the community what they've been asking for in terms of small business opportunities and a larger consumer market in the area. REGULAR CITY COUNCIL MEETING DECEMBER 14, 2011 MINUTES 9 Councilmember Matsumoto gave details of a plan recently approved that awarded money to the City of San Carlos for various transportation improvements. She suggested staff explore similar opportunities. Planner Beaudin stated the point was very well taken and staff was always looking for grant opportunities. He added Corrinne Goodrich of SamTrans had been an important ally in the past. The involvement of agencies like SamTrans would hopefully build relationships and allow the City to be first in line when opportunities arise. Councilman Addiego stated the City was well prepared to move forward once the economy turned around. Motion - Councilmember Matsumoto /Second - Vice Mayor Gonzalez: to approve Resolution No. 147 -2011. Unanimously approved by voice vote. 20. Resolution No. 148 -2011 amending the City's 2011 -12 Operating Budget in order to adjust First Quarter revenues and expenditures. Budget and Financial Manager Colleen Tribby presented the staff report recommending the changes to certain revenues and expenditures in the 2011 -2012 budget. Major changes included increases in sales tax and the transient occupancy tax ( "TOT "), and decreases to charge for services, interest and State Budget impacts. There were no significant changes to other funds to report on. Councilmember Matsumoto, referring to the increase in TOT, asked whether staff worked closely with the Conference Center Authority and hoteliers. Manager Tribby responded that staff does work closely with them. What had happened at the end of the last fiscal year was a really high rise in occupancy rates which had not been taken into consideration at the time of the adopted budget. At this point, that growth is continued into the first three (3) months of this year. Councilmember Mullin was pleasantly surprised to see the additional dollars. He appreciated the conservative estimate approach, but wanted to ensure accuracy and make sure goals were not set artificially low. Manager Tribby used sales tax as an example, stating three (3) scenarios; an optimistic, a most likely, and a pessimistic. We do stick to the most likely scenario. Councilmember Addiego noted the vulnerability of the travel industry and appreciated the conservatism. He found it to be good news and a positive that the improvement was in the business community, as that tends to happen first. Mayor Garbarino also believed the conservative approach had served South San Francisco well and hoped to continue down that path. In his opinion, it was that fiscal conservatism that put the City in its current and positive situation comparatively speaking. Motion - Councilmember Addiego /Second - Vice Mayor Gonzalez: to approve Resolution No. 148 -2011. Unanimously approved by voice vote. REGULAR CITY COUNCIL MEETING DECEMBER 14, 2011 MINUTES 10 21. A resolution approving the City of South San Francisco's participation in the San Francisco Bay Region Automatic Aid Agreement for Maritime Emergency Response. Fire Captain Samson presented the staff report recommending approval of the San Francisco Bay Region Automatic Aid Agreement for Maritime Emergency Response on Bay waters. He explained the need for the agreement was brought to the forefront during an incident on August 3rd in which a boating emergency that began in San Francisco waters drifted into Brisbane and the South San Francisco water borders. A coordinated response from all jurisdictions involved was required. In order to make such response automatic, the coordinated maritime emergency response agreement was drafted for proposal to local government agencies. Signers to the agreement would agree to utilize their proprietary maritime response equipment to assist in Bay waters as needed. Captain Samson presented a list of assets presently owned by various Bay area emergency response units. He noted that assets were limited, which made the need for the agreement all the more pressing, particularly when in an emergency the response needs to be as seamless as possible. He explained the agreement would have little impact on funding but might add some increased fuel and maintenance costs. Councilwoman Matsumoto questioned what the City of South San Francisco would gain by participating in the agreement. She was concerned that because the City's Fire Department was one of the few local Departments with a boat, a disproportionate amount of City Fire staff time would be spent responding to emergencies in areas outside the City. She further questioned the Department's goals with respect to Maritime response. Captain Samson responded that Foster City and Menlo Park also operate Water Response Units, but their response was limited based on the capability of the vessels. He noted Redwood City also had plans to bring a boat online in the near future. Fire Chief White explained that irrespective of the proposed Mutual Aid Agreement, the Depaitnient is responsible for a significant area of Bay waters in the event of Maritime Emergency. He noted the Agreement would benefit the City in the event its Fire Staff was on other calls when a Maritime incident came in. The assistance of surrounding jurisdictions would allow for an integrated approach to emergencies. Councilman Mullin stated he was surprised WETA was not a signatory to the Agreement. Councilman Addiego suggested that Fire staff review the need for the agreement in more detail and provide a stronger case supporting the need for the Agreement at a future Council meeting. Councilman Mullin questioned whether there was any time urgency to the Agreement. Chief White noted there was need to keep momentum going on the agreement, however, due to the fact that 9 counties, multiple cities and companies such as Chevron were signatories, execution of the agreement would likely take some time. Mayor Garbarino directed Fire staff to do more research into the need for the agreement and present it to Council at a future meeting. REGULAR CITY COUNCIL MEETING DECEMBER 14, 2011 MINUTES 11 22. Resolution no. 149 -2011 awarding the construction contract to Gonsalves and Stronck Construction Company, Inc., of San Carlos, California for the Miller Avenue Parking Structure Tenant Improvements Project (Project No. pfl 107) in an amount not to exceed $645,700. Acting City Engineer Bautista presented the staff report outlining the tenant improvement needs, construction costs, and procedures followed for soliciting bids for the Miller Avenue Parking Structure. Gonsalves & Stronk Construction Company, Inc. was found to be the lowest responsible bidder. Sufficient funding for the project was included in the City's 2011 -2012 Capital Improvement Program. Councilmember Matsumoto asked how much over budget the entire project was to begin with. She thought tenant space was included in the initial plans for the Garage. Engineer Bautista stated these improvements were not included and that only the city office spaces were finished and included in the initial project. Assistant City Manager Marty Van Duyn stated tenant improvements were both anticipated and budgeted for. With the building completed, we can now move onto the next phase. Improvements had already been done to the police substation and parking district offices. The actual tenant improvements were not included for the commercial space, but were set aside via RDA until this time. Based on the bid, there were also some funds left on the table to act as an incentive for a merchant or restaurant to fill the space. Councilmember Matsumoto asked why not table the improvements until the City knows who the tenant will be. Assistant Manager Van Duyn recalled the goal was to identify projects the Agency would be willing to commit funds to in order to avoid the potential take always under AB26. This was one of the projects where cash was set aside and plugged into the Capital Improvement Budget. The space being talked about is approximately 14,000 square feet including some restaurant space and two office space components, a smaller space and a larger space that could be carved up or used as a restaurant space. He continued that having a competitive space was crucial to getting the commitment of a tenant, who would have to make all of the basic improvements on top of the improvements that include things like kitchen equipment and furniture. Councilmember Matsumoto stated she would feel more comfortable if uses were already being targeted and stated her desire to upgrade the types of business in the downtown area. Assistant Director Van Duyn noted that 10,000 sq ft was being set aside for a restaurant, significantly more space than is required for a fast food establishment. Restaurants being courted were in a different level, a quality sit -down, non fast -food facility. With that in mind, a basic level of improvements needed to be made in order to make the space desirable. REGULAR CITY COUNCIL MEETING DECEMBER 14, 2011 MINUTES 12 Councilman Addiego understood the apprehension expressed from all sides. He asked whether the improvements were so specific they could only support a restaurant? Director Van Duyn stated that they were not. Councilmember Mullin felt the improvements were consistent with the longer range goal of generating the intended use of the space. Vice Mayor Gonzalez sought clarification on whether the money had to be spent or be lost. Assistant City Manager Van Duyn stated the money did not have to be spent, but was set aside and Council had the authority to commit to spend it. Councilman Addiego summarized his understanding as the majority of the money being spent would be for all types of potential tenants with a little bit extra being spent specific to restaurants. He added that a better job of marketing needed to be done to generate use of the facility, citing a recently missed opportunity during the holiday season to keep meters running and offer up the garage for free parking. He did not want to see it become labeled as a boondoggle. Assistant Manager Van Duyn explained had the money not been spent, it would have been lost and there would have never been a garage. Putting it into context, having something that is slow to fill right now was not necessarily a bad thing. There is a lot of land currently used as surface parking but purchased for future development projects, many of which have already been introduced. The garage is a piece of a larger development puzzle. Mayor Garbarino understood that you could not market shells; spaces had to include basic features while still having flexibility. That is how he saw this item tonight. He felt there needed to be something to show potential suitors and that not everyone could visualize something better when presented with a patch of dirt. Motion - Councilmember Mullin/Second - Councilmember Addiego: to approve Resolution No. 149 -2011. AYES: Councilmembers Addiego and Mullin, Vice Mayor Gonzalez and Mayor Garbarino. NOES: Councilmember Matsumoto. ABSTAIN: None. ABSENT: None. 23. Resolution No. 150 -2011 awarding the construction contract to Michels Corporation, dba Michels Pipeline Construction, of Salem, Oregon, for the Sanitary Sewer Rehabilitation 2011 Project (Project No. ss1009) in an amount not to exceed $405,887. Public Works Director Terry White presented the staff report recommending awarding the construction contract to Michels Pipeline Construction ( "Michels "), the lower of two (2) bids received in response to the sanitary sewer rehabilitation project. The work is spread all around town and did not lend itself to list the addresses or affected streets. The project allows for the repair of 1.3 miles of sewer mains with the main goals of preventing root intrusion, preventing blockage and spills, and reducing overall future maintenance costs. Michels had been selected as the lowest responsible bidder. REGULAR CITY COUNCIL MEETING DECEMBER 14, 2011 MINUTES 13 Vice Mayor Gonzalez wondered why the contract was awarded to a company out of Oregon. Director White explained it was awarded to the Oregon Company because it was the lowest bidder. He further stated the Company was expected to bring its own crews out of Oregon, but local material suppliers would be used and other local companies, such as asphalt companies, would be used to complete additional work. Vice Mayor Gonzalez questioned the difference between the two (2) bids. Director White responded it was approximately $65,000. Despite the savings, the Vice Mayor still expressed his preference for awarding the contract to a California company but deferred to Council. Councilmember Addiego clarified that it was not really an option, but asked if there were any other ways to make the fixes that would result in more local bids. Director White stated staff was looking for the least invasive and costly way to conduct the work. The other type of fix that could have been employed would have involved pipe bursting which was more evasive and expensive. Motion - Councilmember Addiego /Second - Councilmember Matsumoto: to approve Resolution No. 150 -2011. Unanimously approved by voice vote. COMMUNITY FORUM Mayor Garbarino requested that the Meeting be adjourned in honor of long time Housing Authority Commissioner, Nancy Stampfer. ADJOURNMENT Being no further business Mayor Garbarino adjourned the meeting at 10:41 p.m. in honor of long -time Housing Authority Commissioner, Nancy Stampfer. ubmitted by: Ap . i ved: I 110 /• drktarim40' s J. Marti li, Cit Clerk ' is and A. arb h o, Mayor City o -ou San Fran isco City of South San Francisco REGULAR CITY COUNCIL MEETING DECEMBER 14, 2011 MINUTES 14