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CITY OF SOUTH SAN FRANCISCO
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REGULAR MEETING
MUNICIPAL SERVICES BUILDING
COMMUNITY ROOM
33 ARROYO DRIVE
WEDNESDAY, FEBRUARY 22, 2012
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
• Presentation from Chandler Asset Management on the City's Investment Portfolio
results.
The City's Investment Advisor provided a PowerPoint Presentation of its Investment
Report for the period ending January 31, 2012. The report included an Economic Update,
Account Profile and Portfolio Holdings information. Regarding the present economy, the
report indicated a decline in unemployment. While the unemployment rate remains
elevated, current economic data suggests the labor markets may be entering a period of
slow to sustained growth. Further, the advance estimate of fourth quarter ( "4Q ") GDP
growth increased to a 2.7% annualized rate, following 1.8% growth in the third quarter.
The 4Q GDP growth rate is indicative of a modest acceleration in economic growth;
however, the recovery remains sub -par. The advance 4Q estimate was lower than
expectations of 3.1%. Looking ahead, market participants are forecasting GDP growth of
2% in the first quarter of 2012, and 2.3% for the full year 2012. In short, the economy
continues to recover and is gaining momentum appearing to be more robust than a couple
of quarters ago.
The presentation next shifted to the City's Account Profile. The investment objectives are
to preserve principal in the overall portfolio and to provide liquidity and earn a market rate
of return. Performance objectives include achievement of an annual total return on
portfolio that exceeds the return on a market index of one -to -five year government
securities. To meet this objective the City's strategy is to invest in US Treasury and
Government Agency Securities. The City's Portfolio is in complete compliance with this
investment policy.
Councilwoman Matsumoto questioned whether the City is withdrawing from the County
Pool.
Director of Finance Steele advised the City had just closed out the County Pool Account,
and it was presently at 0.
• Recognition for the Finance Department as recipient of two awards: the
Government Finance Officers Association - Distinguished Budget Presentation
Award and the California Society of Municipal Finance Officers - Excellence in
Budgeting Award.
Budget Manager Tribby and Financial Analyst Lovell accepted the awards on behalf of the
Department. Manager Tribby explained the awards were the result of the City's budget
document being an effective tool for understanding the City's financial position and its
overall goals.
Analyst Lovell thanked Department Heads for their extra work to plan the budget each
year.
Councilmember Addiego commented that the documents are so efficient he has never felt
as though he has had a better grasp of the budget.
• Introduction of New Employees.
Director of Public Works White introduced new employees Ruben Baca (Equipment
Mechanic) and Nelson Yuk (Operator 1).
Fire Marshall Da Silva introduced new employees Michele Evans (Customer Service
Specialist) and Dave Matthew (Deputy Chief)
Chief of Police Massoni introduced new employees Angelica Teaupu (Administrative
Assistant II); Communications Dispatchers: Andrew Torgerson, Debbie Louie and Nancy
Steidl; and Police Officers: Henry Velez, Jason Castro, Gordon Wong, Daniel Brown,
Bradley Palmquist, Jeffrey Camilosa, Thomas Lopez and Graham Matthews.
AGENDA REVIEW
None.
PUBLIC COMMENTS
Wynn Grcich addressed Council regarding her concerns related to Chloramine in drinking
water.
REGULAR CITY COUNCIL MEETING FEBRUARY 22, 2012
MINUTES 2
ITEMS FROM COUNCIL
• Announcements.
• Committee Reports.
Councilmembers reported on attendance at community meetings and events including a
CCAG Meeting, a luncheon with a representative from South San Francisco's Basque
Sister City, a Finance Committee Meeting, an Airport Land Use Meeting, a HEART
Meeting and a Meeting of the League of California Cities' Board. Announcements
regarding upcoming events included an IPP Community Weed Collection at Joanne's
Triangle and a free workshop for homeowners with Wells Fargo or Wachovia Mortgages.
The workshop would take place in Richmond on March 7 and 8 Specific items for
further action and /or consideration were set forth as follows:
Councilman Addiego made requests for additional review and information related to the
efficiency and cost effectiveness of the Red Light Cameras in the City.
Councilman Mullin requested that communication with the community regarding the
Developers' Plans at Westborough Square be stepped up.
Vice Mayor Gonzalez requested that the meeting be adjourned in honor of Miguel Molina,
Father of Karla Molina.
Mayor Garbarino suggested moving up Item number 8 on the Agenda. Council agreed.
• City Selection Committee Appointments
Motion— Vice Mayor Gonzalez /Second— Councilman Addiego: to support the
appointment of San Mateo Councilmember Jack Matthews, Menlo Park Councilmember
Andy Cohen and San Carlos Councilmember Ron Collins to the Housing Endowment and
Regional Trust (HEART). Unanimously approved by voice vote.
CONSENT CALENDAR
1. Motion to approve the minutes of February 8, 2012.
2. Motion to approve expense claims of February 22, 2012.
3. Motion to accept the City Hall exterior Lead Based Paint Stabilization (Abatement)
and City Hall, Tower, and City Hall Annex painting project as complete in
accordance with the plans and specifications.
4. Resolution No. 11 -2012 approving Amendment No. 7 to the Employment Agreement
between the City of South San Francisco and Barry M. Nagel for service as City
Manager.
REGULAR CITY COUNCIL MEETING FEBRUARY 22, 2012
MINUTES 3
Motion— Councilman Addiego /Second— Councilman Mullin: to approve Consent Calendar
Items Nos. 1 -4. Unanimously approved by voice vote.
5. Transmittal of Annual Financial and Audit reports for Fiscal Year 2010 -11.
At the request of Councilwoman Matsumoto, Director of Finance Steele confirmed
information listed on page 33 of the report.
Motion— Councilwoman Matsumoto /Second— Councilman Addiego: to approve Consent
Calendar Item No. 5. Unanimously approved by voice vote.
ADMINISTRATIVE BUSINESS
8. Caffino — Process to allow the Caffino Drive -thru Coffee Shop operation to relocate.
Senior Planner Beaudin reported that in response to questions raised under Public
Comment regarding the status of Caffino Drive -thru at the February 8 City Council
Meeting, staff was providing a process overview for the procedures necessary to keep the
business functioning in South San Francisco. Planner Beaudin explained that as part of the
renovation of the shopping center planned by its Developer, Caffino Drive -thru was not
asked to return. Additionally, in the interim between the inception of Caffino's business 15
years ago and the present, Council had passed zoning ordinances regulating drive -thru
businesses in the city. In light of these circumstances, for the business to continue to
operate in South San Francisco two issues were to be addressed. First, the business would
have to find another location to operate since the Westborough Developer was not
renewing its lease. Second, an entitlement process would need to take place so that the
business could function as a drive -thru in light of current zoning requirements. Senior
Planner Beaudin next explained that Caffino's owners had advised that they had secured a
location for the business at Westborough and Callan drive. It was further estimated that
picking up and moving the building would cost roughly $90,000. Additionally, federal law
required that it be modified and brought into compliance with current ADA requirements.
Community Member Laurie Dolly urged Council to move swiftly to take the necessary
steps to permit Caffino to operate in City limits. She suggested that Council carefully
consider zoning modifications to accommodate uses by current successful business. She
also urged Council to reduce or waive some of Caffino's planning fees under the
circumstances.
Resident Georgeanne Ferrar explained she had lived in Westborough since 1984. She
regarded Caffino employees as her friends and commented on the down -home feeling of
the business. She urged Council to take the steps necessary to allow Caffino to continue to
operate as a drive -thru and she requested more information regarding the Developer's plans
at Westborough Shopping Center.
Mita of Caffino advised the business had found a location to operate at 3575 Callan
Boulevard. She presented Council with petitions from community members.
REGULAR CITY COUNCIL MEETING FEBRUARY 22, 2012
MINUTES 4
Mayor Garbarino thanked members of the public for their comments. He questioned staff
regarding next steps.
City Attorney Mattas advised staff would gather information and work with the owners of
Caffino to come back with necessary the planning information and an application which
would be heard at a public hearing.
PUBLIC HEARING
6. Resolutions Nos. 12,13 & 14 and Ordinance Brookwood Group /applicant City of
SSF /owner 418 LINDEN AVE P10 -0055: GPA10 -0003, RZ10 -0001, UP10 -0020,
DR10 -0020, SA10 -0003 & ND10 -0004 General Plan Amendment to incorporate the
project site into the Downtown Core (DC) Land Use District, Rezoning application to
change the zoning district from Downtown Mixed Use (DMX) to Downtown Core
(DC), and Use Permit, Design Review, Tentative Subdivision Map and Mitigated
Negative Declaration to construct a four -story mixed -use (commercial /residential)
condominium project including 6,200 square feet of commercial space on the
ground floor, 25 residential units on the upper floors, and below grade parking on a
14,000 square foot site located at 418 Linden Avenue in accordance with SSFMC
Chapters 20.100, 20.300, 20.330, 20.460, 20.480, 20.490, 20.540 & 20.550.
Public Hearing opened: 8:17 p.m.
City Planner Kalkin presented the staff report outlining the proposed project at 418 Linden
Avenue. She explained that to facilitate the project a number of entitlements were
required. A description of the project and location were also provided. She further
explained that the property was conveyed to the City by the developer of the Terra Bay
Housing Tract in lieu of building 32 workforce housing units at Terra Bay. The
development would accommodate a mixed -use and was consistent with all requirements of
the Downtown Core Zone District. The design had been reviewed by the Design Review
Board at several meetings. She advised that staff recommended accepting the Planning
Commission's recommendations and passing the necessary resolutions and ordinance.
Shep Heery, The CEO of the Brookwood Group addressed Council and noted the Company
had worked with the City on projects since 1989. He noted the plan for this development
was a collaboration amongst Council, City staff and the Brookwood Group and
accomplished the City's objectives for the area. The project is guided by development
principles of smart growth and sustainability. The design concept for the building was
interesting and of an eclectic character appropriate for the neighborhood.
A fly- through video of the project was presented.
Public Hearing closed: 8:38 p.m.
Councilman Mullin questioned whether rooftop uses were anticipated.
Mr. Heery responded that roof top uses were expected as an outdoor common
area/gathering space.
REGULAR CITY COUNCIL MEETING FEBRUARY 22, 2012
MINUTES 5
Councilman Addiego opined the outdoor area was pleasing. He further commented that the
project included a spectacular design component.
Councilman Mullin commented that the building would be a catalyst for Downtown
growth. He questioned the demand for the project.
Mr. Heery responded that according to focus group data there was a strong demand for
quality rental properties, but lease to sale was eventually anticipated.
Mayor Garbarino noted he was pleased to see this type of project in the Downtown District.
Councilwoman Matsumoto queried the city's investment in the project.
Assistant City Manager VanDuyn responded $600,000.
The Mayor questioned the actions necessary to approve the project.
City Attorney Mattas explained 4 separate actions were required.
Motion— Councilman Addiego /Second— Vice Mayor Gonzalez: to approve Resolution
No. 12. Unanimously approved by voice vote.
Motion— Councilman Addiego /Second— Councilman Mullin: to approve Resolution No.
13. Unanimously approved by voice vote.
Motion— Vice Mayor Gonzalez /Second— Councilwoman Matsumoto: to waive reading
and introduce an ordinance making findings and amending the City of South San Francisco
Zoning Map, related to the Mixed -use Development at 418 Linden Avenue. Unanimously
approved by voice vote.
Motion— Councilman Mullin/Second— Councilman Addiego: to approve Resolution No.
14. Unanimously approved by voice vote.
ADMINISTRATIVE BUSINESS
7. Resolution Nos. 15 & 16 approving the City's Associate Membership in the
California Enterprise Development Authority ( "CEDA ") and authorizing the City's
participation in the California Property Assessed Clean Energy ( "PACE ") Program.
Sustainability Manager McCue explained that through CEDA's PACE Program,
commercial property owners can take advantage of up -front fixed -rate financing to buy and
install energy- efficient, renewable energy and water conserving improvements on their
properties. Participation in PACE is completely voluntary with no up -front costs. High
efficiency air conditioners, dual -pane windows, solar photovoltaic panel systems,
insulation, cool roofs and other permanently installed energy efficient improvements along
with water conservation equipment would be included.
Manager McCue advised that to permit these benefits, cities need to opt in by March 23,
2012 then South San Francisco would be included in the Statewide PACE Assessment
REGULAR CITY COUNCIL MEETING FEBRUARY 22, 2012
MINUTES 6
District. A hearing for the District is scheduled for April 26, 2012 in Sacramento.
Following the sale of limited obligation bonds or notes, PACE would offer up -front
financing to all qualifying commercial property owners in the District. Property owners
would repay the up -front financing on property tax bills over a period of years. However,
it was anticipated that in most cases, the savings from energy efficient systems would
outweigh the repayment obligations overtime.
Vice Mayor Gonzalez questioned whether any protections were in place to make certain
quality contractors were used for the improvement projects.
Manager McCue responded that quality assurances came along with the program. The
burden would be on competing contractors to prove their fitness for the program.
Councilman Addiego questioned the CEDA representative as to whether it had met with
San Mateo County representatives regarding the program.
CEDA responded that it had met with San Mateo County in the past and would meet again
regarding this program.
Councilman Mullin opined PACE seemed like an excellent program and thanked Manager
McCue for her work to recommend it. He questioned whether any other San Mateo County
Cities were participating.
Manager McCue responded that South San Francisco was the first San Mateo County City
to take advantage of the program.
Motion— Vice Mayor Gonzalez /Second— Councilman Mullin: to approve Resolution No.
15. Unanimously approved by voice vote.
Motion— Councilman Addiego /Second— Councilman Mullin: to approve Resolution No.
16. Unanimously approved by voice vote.
9. Transmittal of Mid -Year 2011 -12 Financial Report and Resolution No. 17 -2012
amending the 2011 -12 Budget.
Budget Manager Tribby presented the staff report transmitting the mid -year 2011 -12
financial results and recommending changes to certain revenues and expenditures in the
2011 -2012 budget. She provided a PowerPoint presentation noting that the City's
operating budget was tracking closely with the overall Bay area economy and continued to
climb out of the recession. Tourism in the region was expanding evidenced by increases in
airport traffic, hotel tax revenue and employment in the leisure and hospitality industry.
Sales tax was also showing improvement in our region. Further, while San Mateo County
home sale prices decreased 6.5% from October 2011 to October 2012, sales volume
increased 7.2 %. Based upon these factors, the City's General Fund revenues were
projected to come in $1.1 million higher than the amended budget yielding a favorable
variance of 1.7 %. Regarding expenditures, General Fund Departments were projected to
come in at their amended budget targets. The additional cost of funding the positions no
longer charged to the RDA would increase expense figures somewhat. In addition, the City
REGULAR CITY COUNCIL MEETING FEBRUARY 22, 2012
MINUTES 7
General Fund Departments would also need to cover the remaining budgeted blight clean-
up costs through June 30, 2012 at $520,104.00.
Councilwoman Matsumoto requested a break -down of RDA position costs in a Friday
report.
Budget Manager Tribby stated this information could be provided.
Councilman Addiego noted the news was generally positive with the exception of the
decline in housing prices which hit South San Francisco harder than other cities in the
County. Regarding the travel industry, he encouraged staff to question hotels as to whether
they had information indicating that increased travel was due to a greater number of
domestic or international visitors.
Motion— Vice Mayor Gonzalez /Second— Councilman Mullin: to approve Resolution No.
17 -2012. Unanimously approved by voice vote.
10. Resolution No. 18 -2012 accepting the bid withdrawal of Jedco Consulting Engineers,
Inc., awarding a Construction Contract to Ashron Construction and Restoration, Inc.
of Sunnyvale, California, for the Water Quality Control Plant (WQCP) Blower
Building No. 1 Seismic Upgrade Project (Project No. ss1018) in an amount not to
exceed $178,000, and rejecting all bid protests.
Senior Civil Engineer Bautista presented the staff report recommending that Council adopt
a resolution accepting the bid withdrawal of Jedco Consulting Engineers, Inc., awarding
the construction contract to Ashron Construction and Restoration, Inc. of Sunnyvale,
California for the Water Quality Control Plant Blower Building No. 1 Seismic Upgrade
Project in an amount not to exceed $178,000 and rejecting all bid protests. Engineer
Bautista explained that the Blower at Building No. 1 at the Plant had several cracks in the
walls and seismic deficiencies. Accordingly, staff advertised a notice inviting bids for the
project in November. On January 10, 2012, staff received 5 responsive bids. Jedco
Consulting Engineers of Berkeley, CA was the low bid. Within five (5) days of the bid
opening, Jedco provided the City with notices that it had made a mistake in the preparing
of its bid and requested permission to withdraw. After consultation with the City Attorney,
staff recommends granting this request.
On January 12, 2012, staff received a bid protest letter from John Plane Construction Inc of
Brisbane, Ca. This protest claimed the bids received by the lowest three (3) bidders were
non - responsive because the general contractors did not list any electrical subcontractors to
perform the scope of work. Staff checked the contractor licenses of the affected
contractors and found all were allowed to perform electrical work and no subcontractor for
electric work would be needed. Because staff verified that the low bidder's current
contractor's license is in good standing it recommended rejecting the bid protest and
awarding the construction contract to Ashron Construction and Restoration Inc.
Motion— Vice Mayor Gonzalez /Second— Councilman Mullin: to approve Resolution No.
18 -2012. Unanimously approved by voice vote.
REGULAR CITY COUNCIL MEETING FEBRUARY 22, 2012
MINUTES 8
11. Resolution No. 19 -2012 awarding the purchase agreement to APG - Neuros, Inc. of
Quebec, Canada, to procure a turbo blower for the Water Quality Control Plant
(WQCP) Blower Replacement Project (Project No. ss1203) in an amount not to
exceed $299,000.
Engineer Bautista presented the staff report recommending that the City adopt a resolution
awarding the purchase agreement to APG - Neuros, Inc. of Quebec, Canada to procure a
turbo blower for the Water Quality Control Plant Blower Replacement Project in an
amount not to exceed $299,000. He explained the WQCP Blower Replacement Project
would procure a new turbo blower to help decrease power consumption at the WQCP.
Staff would then work with the vendor to install the blower. In addition, provisional items
such as observing the efficiency testing of the new blower, integrating a new control
system to the existing control system and extending the equipment warranty from two to
five years would be provided by the vendor. In response to advertisements, staff received
bids from three (3) vendors, APG - Neuros, Inc. of Quebec Canada was the lowest
responsible bidder based on the Total Evaluated Cost Accounting Method, which is
determined by the total base bid price plus the evaluated power cost. The power cost is the
present cost of electric power to operate the vendor's blower for a project life of twenty
years.
Councilman Addiego noted that assumptions were predicated on the cost of energy. He
questioned how energy costs could be projected 20 years out.
Engineer Bautista responded that the estimate consisted of carrying the rates forward at an
increase rate of 3 %.
Motion— Councilwoman Matsumoto /Second— Councilman Addiego: to approve
Resolution No. 19 -2012. Unanimously approved by voice vote.
COMMUNITY FORUM
Mayor Garbarino requested that the meeting be adjourned in honor of Theresa Premenko,
mother of employee Mike Premenko.
Councilman Addiego requested that the meeting be adjourned in honor of long -time
resident Mary Boone.
ADJOURNMENT
Being no further business, Mayor Garbarino adjourned the meeting at 9:40 p.m. in honor of
Miguel Molina, Theresa Premenko and Mary Boone.
Submitte I . y: Approved:
. J. . ine • ity Clerk � Ri hard A. Garbarino, Mayor
h Sam rancisco City of out Y of South San Francisco
REGULAR CITY COUNCIL MEETING FEBRUARY 22, 2012
MINUTES 9