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HomeMy WebLinkAboutMinutes 2012-04-11 �o �� x SPECIAL MEETING "- -" MINUTES J O CITY COUNCIL c,A oTtO OF THE CITY OF SOUTH SAN FRANCISCO P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, California 94083 CITY HALL CONFERENCE ROOM 400 GRAND AVENUE WEDNESDAY, APRIL 11, 2012 6:30 P.M. 1. Call to Order. TIME 6:31 p.m. 2. Roll Call. Present: Councilmembers Matsumoto and Mullin, Vice Mayor Gonzalez, and Mayor Garbarino Absent: Councilmember Addiego 3. Agenda Review. No changes. 4. Public Comments — comments are limited to items on the Special Meeting Agenda. None. 5. Consideration and ratification of Mayor's appointment of Gerry Beaudin to the Oversight Board and appointment of alternate member for the Oversight Board position held by Councilmember Addiego. Mayor Garbarino stated Council had concluded that due to uncertainties related to statutory interpretation, it would be in the City's best interest to replace City Manager Nagel on the Oversight Board. He then appointed Principal Planner Gerry Beaudin to serve on the Board. Mayor Garbarino next appointed City Manager Nagel as Boardmember Addiego's alternate. 6. Study Session: 2012/2013 Operating Budget & CIP. City Manager Nagel noted the RDA dissolution had affected the cash flow into the CIP budget. Budget and Financial Manager Colleen Tribby would present the assumptions and details related to the CIP. Manager Tribby reviewed the major changes to Revenues, Expenditures, Personnel and Other /Reserves. Property tax experienced minimal growth. To be conservative, there was no net impact on the general fund as a result of the dissolution of RDA. The City estimated it would be receiving $4.3 million in additional property tax revenues to absorb the loss of pass- through and administrative revenue received from the RDA. Councilwoman Matsumoto had heard contrary to the presented information regarding TOT and asked if Manager Tribby could confirm the number with the Conference Center Authority. Councilwoman Matsumoto next questioned the affect of NPDES legislation. Public Works Director White explained the City was required to achieve 40% reduction by 2014, a threshold that had already been met. Councilwoman Matsumoto next questioned the possibility of surrounding cities beginning to share the costs. Director White explained it was basically left to staff to figure out how much trash was generated and how to make reductions between 40 to 70% without spending massive amounts of money. Earlier this year the Water Board had announced rules and public outreach was a big component in determining a more favorable outcome. Councilwoman Matsumoto commented the City had no control over what went down the drains. Director White stated the City had some control, noting money received from ABAG to put capture devices in strategic areas throughout the City. Manager Tribby continued to summarize expenditure items including: a $250,000 increase to internal service fund charges, RDA positions and supplies shifting back to the General Fund, recommended contributions to OPEB in the amount of $1 million, and personnel changes amounting to $1.1 million. Under Other /Reserves, Manager Tribby noted a one -time property tax increase from RDA dissolution that could get spread out over 2011/2013 and 2012/2013 or all booked in 2011/2012. All the reserves met the target with undesignated reserves projected at $15.3 million. Councilman Mullin asked if the 12% jump in workers' compensation was unusually large and if it was based off of insurance cost or actual pay -outs. Manager Tribby stated staff had used the last three (3) years of actual claims to find the average. The amount was strongly driven by health premiums. Premiums will go up with cost of finalizing claims. Manager Tribby then provided a General Fund summary, review of General Fund Reserves and Departmental Minor Maintenance Projects. Total General Fund Reserves were approximately SPECIAL CITY COUNCIL MEETING APRIL 11, 2012 MINUTES PAGE 2 $25.5 million. Regarding Department Budget additions, several things proposed were funded by other funds, such as replacement of Police Department Mobile Laptops and the purchase of a Compact Tractor for the Parks and Recreation Department. Total of Minor Maintenance Budget was $764,607 with $49,673 in proposed funding from the General Fund. Capital Improvement Projects were then addressed by Director White. Director White explained there were 23 new General Fund requested projects. Councilman Mullin asked about the roof at the Municipal Services Building ( "MSB "). Director White stated it was roofed in 1993 and the state it was in today was typical of its life expectancy. Repairs would be done in segments. Vice Mayor Gonzalez asked if the Hillside Boulevard pedestrian bridge belonged to the City or the School District. The Vice Mayor also asked if any efforts were being made to fix the north access area as he was recently informed someone had lost their life in the area. Director White stated the bridge belonged to the District and negotiations were underway to demolish it. Regarding the north access, steps have been taken to purchase and install metal covers over openings where there are wood covers. The area was currently leased to Park SFO. Director White outlined the work and expenses related to the storm drains and sewer lines. Vice Mayor Gonzalez asked if any complaints had been heard about the Linden Avenue storm water pump. Director White hadn't heard of any. The station was working with large size pipes and working as intended. Councilwoman Matsumoto asked about the possibility of San Bruno contributing in the next fiscal year. Director White had no knowledge of an approved CIP for San Bruno. It was somewhat questionable as to the formal level of commitment, but any bill ever sent to them had always been paid. Director White then detailed the improvements intended for parks. Work was to be done on Francisco Terrace Play Lot, Buri Buri Playground and Clay Park Playground, tennis courts at Stonegate and North Access trail. Total for these improvements would be approximately $600,000. Improvements for Traffic included: Grand /East Grand ramp entrance, Oyster Point /Route 101 northbound ramp, Route 101 off ramp to East Grand /Executive Drive, pedestrian crossing at El Camino High School, and traffic calming improvements at Fairway Drive and West Orange SPECIAL CITY COUNCIL MEETING APRIL 11, 2012 MINUTES PAGE 3 Avenue. Study sessions would be held on each of these in the future to come up with configurations. Vice Mayor Gonzalez expressed concern about fading signage. Director White assured that new signage would be made once configurations were complete. Concern was also voiced about painting or markers on the streets. Director White stated those items were part of the miscellaneous traffic improvement dollars. Staff was currently pricing the costs of repainting versus the cost to replace with product that does not require paint. 7. Study Session: Other Post Employment Benefits (OPEB). It was recommended Council direct staff to bring back the necessary enrollment forms and legal documents for the City to participate in the California Public Employees Retirement System. ( "Ca1PERS ") Other Post Employment Benefit Trust ( "OPEB "), consistent with actions approved by Council in November 15, 2011. Director Steele recounted the amount of Actuarial Accrued Liability ( "AAL ") was $82.1 million. He noted distinct advantages to setting up a formal trust, including a diversified portfolio of stocks and bonds. Staff was not recommending fund a trust at this time, only that the City accept an RFP process done by the County. If no OPEB Trust Fund were set up, the return rate would be no higher than 4 to 4.5% versus a 7 to 7.5% if an OPEB trust were set up. Also, the Annual Required Contribution ( "ARC ") would dramatically decrease from the $10.98 million required over a thirty year period. Council directed staff to move forward as recommended. 8. 7:00 p.m.: PUBLIC HEARING: Motion to Continue Community Development Block Grant Program Hearing scheduled for April 11, 2012 to the South San Francisco City Council's Regular Meeting of April 25, 2012. Public Hearing Opened: 7:45 p.m. Public Hearing closed: 7:45 p.m. Motion — Vice Mayor Gonzalez /Second — Councilwoman Matsumoto: to continue Community Development Block Grant Program Hearing scheduled for April 11, 2012 to the South San Francisco City Council's Regular Meeting of April 25, 2012. Unanimously approved by voice vote. SPECIAL CITY COUNCIL MEETING APRIL 11, 2012 MINUTES PAGE 4 Councilman Gonzalez asked if there were any restrictions tied to the properties in terms of selling them. Director Steele stated he was not addressing any one particular property. City Attorney Steve Mattas clarified the specific properties would be dealt at subsequent Successor Agency meetings. He did note there were restrictions when City property is sold, but that relates mainly to the selling process and not to whom you sell to. Steps to follow were all intended to get maximum value. Steps in state law differ from RDA property. Classic thing with RDA you could write value down to zero if selling for RDA purpose. Cities don't have same level of flex. Have to get market value. Councilman Addiego asked what RDA had paid for the properties and if it was reasonable, given the time frame, to assume the properties had less value today than when they were first acquired. Assistant City Manager Marty Van Duyn referred him to the asset list and noted acquisition prices for each of properties was included. 6. Adjournment. Being no further business, Mayor Garbarino adjourned the meeting at 6:42 p.m. Submitted: Approved: d k Krista J. 1 • in ity Jerk Ric - and A. Garb. 'no, Mayor City of South San Francisco City of South San Francisco SPECIAL CITY COUNCIL MEETING MAY 16, 2012 MINUTES PAGE 2