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HomeMy WebLinkAboutMinutes 2012-12-1219E+1� ROLL CALL: PLEDGE OF ALLEGIANCE: AGENDA REVIEW REGULAR MEETING MUNICIPAL SERVICES BUILDING COMMUNITY ROOM 33 ARROYO DRIVE WEDNESDAY, DECEMBER 12, 2012 TIME: 7:05 P.M. PRESENT: Councilmembers Addiego and Garbarino, Mayor Pro Tern Matsumoto and Mayor Gonzalez. ABSENT: None. Led by Mayor Gonzalez. City Manager Nagel recommended moving Item 14, public hearing, to be heard after Items from Council due to the large audience in attendance for the Item. Council agreed. PUBLIC COMMENTS Kate Comfort —Harr, Executive Director of HIP Housing, congratulated Mayor Gonzalez and thanked the Council for its support of the organization. She presented Councilmembers with the 2013 HIP Housing Calendar.* *Ms. Comfort-Harr made her comments later in the meeting at the opening of the Public Hearing pertaining to Item No. 14. As the comments were general and not related to the public meeting, they are referenced here. ITEMS FROM COUNCIL • Announcements, • Committee Reports. Councilmembers reported on attendance at community meetings and events including, an Oversight Board Meeting, the League of California Cities Water Directors Meeting and a SamTrans meeting. Staff was commended for its work staffing the Oversight Board to the Successor Agency of the Former Redevelopment Agency. Announcements were made regarding upcoming events including a SamTrans Public Hearing that would be held in February or March pertinent to changes to local bus routes. Specific items for further action and/or consideration were set forth as follows: Councilman Addiego requested that the meeting be adjourned in honor of Helen May Cain, long time resident involved in the Boys and Girls Club, local PTA and PAL. Councilman Addiego, requested that staff agendize a report on the Proposition IA Implications of the State Department of Finance's Methodology for allocating Redevelopment Property Tax Trust Fund (RPTTF) Proceeds. He further requested additional discussion on the Public Safety Impact Fee passed at the December 10, 2012 Special Meeting and requested that staff schedule this item at a future Council meeting. Update on status of applications for appointment to vacant City Council seat and determination of procedure for filling such seat, including the setting of meetings to consider appointment and/or the setting of a special election. City Clerk Martinelli reported on the status of applications received from: Rhonda Marie Ceccato Pradeep C. Gupta Amel Junio Gutierrez Carlos Luis Martin Mark H. Nagales Richard Allen Ochsenhirt John William Poletti John William Prouty Nakshin Shah. Mayor Pro Tern Matsumoto reminded the public of the deadline for applications- Thursday, 12/1302012 at 5 p.m. City Clerk Martinelli advised applications are available on the City's website on the home page or by contacting the City Clerk's office at 650-877-8518. The application may be submitted by fax number, by e-mail or delivered to the office. City Manager Nagel requested to confirm dates to interview applicants. At a prior meeting Council had discussed Tuesday, Wednesday and/or Thursday of the upcoming week. He also inquired as to whether Council desired to formulate questions and/or create a subcommittee to do so. Council determined to hold the interviews on Wednesday, December 19'h at 6 p.m. and Saturday December 22nd at 9 a.m. at City Hall. Council decided against a subcommittee to develop questions. City Attorney Mattas queried Council's preference with respect to length of interview for scheduling purposes. Council concurred that 30 minutes was appropriate. anit Kok" 14. An Interim Ordinance of the City of South San Francisco making findings and establishing (1) a city-wide moratorium on the issuance of use permits, building REGULAR CITY COUNCIL MEETING DECEMBER 12, 2012 MINUTES 2 permits, or any other applicable entitlement for large format retail or superstore uses and (2) a moratorium on the issuance of use permits, building pen-nits, or any other applicable entitlement for grocery uses in the east of 101 area. Public Hearing Opened: 7:31 p.m. Principal Planner Beaudin presented the staff report recommending adoption of the 45 day moratorium. The effect of the moratorium would be to freeze any and all City permits for the approval of large format retail uses the in the entire City and to freeze all City permits and approvals that would be necessary to establish grocery uses east of the 101 area. The City commissioned a grocery use economic impact analysis earlier in the year which concluded that the addition of a grocery store within a new superstore in the community translated into the loss of 5% to 20% of grocery sales for existing stores in the City. The report also suggested that superstores with a grocery component could limit the community's ability to attract certain types of grocers in the future, The analysis raised questions pertinent to the City's land use regulations which identify the location where uses can be situated in the community and define the various uses permitted, conditionally permitted or not permitted. Staff believed that time should be taken to evaluate the optimal locations for new large format retail and grocery uses in the City and to generate better definition with respect to large format retail uses and evaluation of the positive and negative impacts of a superstore with respect to the land use regulations. Principal Planner Beaudin provided a PowerPoint presentation, including slides showing possible opportunity sites identified for large format retail and grocery uses in the community. The first slide depicted red circles identifying selected larger sites or areas that would have relatively good vehicular access and/or could be large enough to accommodate a superstore. Locations included sites on Dubuque Avenue, Gellert Boulevard, S. Spruce Avenue, S. Airport Boulevard and Produce Avenue. The second slide depicted grocery uses as defined in the zoning ordinance. Food and beverage retail uses on the east side of 101 would more likely occur in the Freeway Commercial and Business Commercial Zoning Districts, Should Council adopt the moratorium for large format retail and grocery uses, staff would take the necessary time to comprehensively evaluate the City's land use regulations and report back with recommended changes to the zoning ordinance Based on these points and the information contained in the staff report, staff recommended that Council adopt the 45 day moratorium and determine that there is an immediate threat to health and welfare and that the issuance of permits or the approval of any entitlements would be detrimental to the community. The moratorium could be extended up to 2 years. Since the report was published, the Clerk and City Attorney each received one letter from Lowe's which currently operates a store on Dubuque Avenue, The first letter dated December 7 urges Council to reject any action which would limit large format retail or grocery uses on Dubuque Avenue. The second letter dated December 10 requests that Council amend the exemptions section to the interim ordinance to allow existing large format retail uses to complete repairs and remodeling work. In addition to the 2 letters from Lowe's the property owner, Intereal, addressed a letter to Council dated December 10 REGULAR CITY COUNCIL MEETING DECEMBER 12,2012 MINUTES 3 that also urges Council to reject any action that limits large format retail or grocery uses on Dubuque Avenue. Exempting existing uses from the moratorium could frustrate the City's effort to address comprehensive land use regulations for large forinat retail and grocery uses in the community. Staff was not recommending any changes at this time based on the written correspondence from Lowe's and Intereal, Principal Planner Beaudin further explained the proposed interim ordinance may only be adopted with a 4/5 vote of the Council and because Council only has 4 members seated at this time, a unanimous vote would be required for adoption of the Moratorium. Mayor Gonzalez advised that speakers would be limited to 2 minutes. He suggested that comments not be repeated and that a person's stance on the moratorium be stated in instances where comments would be repetitive of previous statements. Joe Mirata, a Grand Avenue business owner since 1964 stated he had heard rumors about a possible Wal-Mart coming into town. He believed it would be a disaster for the Downtown Merchants. He noted his opposition to a store like Wal -Mart coming into town. Resident Merlin Nelson stated his opposition to Wal-Mart moving in east of 101. He noted that in his line of work he has visited many Wal-Mart stores, including, among others, Sacrairiento, Atwater and Fresno. He noted that the stores cause a lot of congestion, with as much as 50-60 containers being loaded behind store buildings at any given time. He opined a Wal-Mart in South San Francisco would run small businesses out of the Downtown area. Resident since 1965, Ed Meintz presented Council with petitions opposing a Wal-Mart in South San Francisco. He stated Wal-Mart pays low wages and is contemptuous of public services and emergency services. He stated Wal-Mart workers are often on food stamps and it should not be permitted to operate this way. Serena 1p stated her comments were representative of a local coalition with a robust interest in the South San Francisco Downtown Plan. The coalition included representatives from the Housing Division Council of San Mateo County, the San Mateo Building Trades Council, the Sierra Club Loma Prieta Chapter, the San Mateo County Union Community Alliance, the Sheet Metal Workers Union, the Peninsula Interface Action, the Green Building Alliance and United Food and Commercial Workers, among others. The coalition wanted to emphasize the importance of community benefits that produce greener and healthier development alternatives, housing affordability and homelessness solutions, effective and affordable public transit, as well as pedestrian and bicyclist options, building a strong local economy and creating jobs in the community. The coalition is particularly concerned with the effect of superstores on businesses in close proximity to the plan area. It understands homebuyers and renters are looking for opportunities for shopping and other amenities in a vibrant pedestrian friendly atmosphere. Introduction of a superstore would stifle the ability for smaller retailers like those currently found in the Downtown to thrive. The coalition urged Council to implement the moratorium. Edward Al-Ghani of the Richview Community in South San Francisco stated support for a moratorium with a minimum of 90 days. REGULAR CITY COUNCIL MEETING DECEMBER 12, 2012 MINUTES 4 Minna Richardson was concerned about introducing another big box development. She noted rumors that a Supercenter Wal-Mart intends to be located at Lowe's present location. She opined Wal-Mart's image is inconsistent with the Biotech image that South San Francisco now enjoys and is known for. Dave Figueroa stated a parking structure was built to bring business to the Downtown area. He and his family shop and visit Downtown businesses. He supports his City and the people who live here. lie agreed with staff's recommendation regarding a moratorium, but believed a two year moratorium would be best. Jerry Reed stated he moved his family to South San Francisco to raise his children. He did not want them to be enslaved by having only one option when they get to working age. He wants his children to be able to access the train station and would like to have the high speed rail stop here. He did not want people from Oakland to take the ferry to come here to shop at Wal -Mart. He preferred that Council approve the moratorium for as long as possible. Rick Hedges noted he had invited the Council to tour the Contra Costa Transit Center. Former Councilman Mullin took the tour. He believed South San Francisco has an excellent chance to have a similar type of development. He was in support of the interim moratorium cast of 101, He stated the Caltrain Station is 100 feet from the Lowe's entrance. He asked Council to imagine the backup of traffic on Dubuque Avenue due to Wal-Mart. He queried the difficulty this would cause for access in and out of the Caltrain Station. He did not believe it would be workable. He stated a moratorium was needed as was a conditional use ordinance that would force any change of use in that area to go through an evaluation process related to impact on the Downtown Plan and Station Improvements. Michelle Radcliffe, owner/operator of South City Grocery Outlet, a small family owned business, stated that if a superstore is allowed in the City, it was projected that current grocers like her would experience a 9-10% decrease in sales. Larger stores like Lucky or. Safeway could expect a 20-25% decrease, She noted the impact this would have on local jobs and stated that small businesses cannot compete with superstores. Rita Hernandez, owner of Panaderia Hernandez on Grand Avenue stated that if Wal-Mart comes into the City it would be the end of businesses on Grand Avenue. She had been in business in the City for 30 years and believed a small business like hers would suffer badly. She urged Council to make it easier for small businesses to get business licenses, but to say no to Wal-Mart. She closed by urging that South San Francisco take a stand and not allow a Wal-Mart in the City. William Nack of the San Mateo Building Trades Council stated the Trades Council represents 26 local construction unions with a membership of 14,000 of the highest skilled union crafts men and women in the construction industry today. He advised that many members and representatives were present in the audience. Mr. black quoted a few paragraphs of the analysis findings in the staff report and stated the last thing the Trades Council wants is for the large retail superstores to decimate South San Francisco's small business community and deter other high quality grocery retailers from locating in our community of South San Francisco. REGULAR CITY COUNCIL MEETING DECEMBER 12, 2012 MINUTES 5 Resident Steven Pitocchi stated his father had been a small business owner on Grand Avenue. He supported the moratorium, at least for 90 days if not for up to 2 years. His concerns related to threats to public health, safety and welfare that a large superstore might bring. He noted the staff report indicated geographic regions for possible placement of stores- three of which were in very close proximity to where he lives on Village Way. Traffic is already bad there especially during commuting hours. Trucks are continuously delivering to businesses in the area. He opined that environmental impacts should be taken into consideration, including pollution from transmission fuels as well as noise. He questioned how these would affect not only the elderly, but the young and adolescent. With regard to traffic there are also safety concerns related to police response, emergency response and fire response in the Downtown area. Sergio Hernandez of Panaderia Hernandez opined the general consensus is that the City of South San Francisco does not need big box retail stores. A big store east of 101 would be a pit stop for people from neighboring cities. Customers could get on and off the highway without having to come into South San Francisco. He believed a Wal-Mart would also impact business in other local cities. As a small business owner, one cannot afford the scale that Wal-Mart produces. He believed it was unfair and unjust. He stated the image it brings is unbearable. He observed other chain stores try to integrate within the community and reach out to help. He quoted a study on superstores from another state and noted neighboring grocery stores lost 10.1 % annual revenues after the first year and 20% annual revenues after five years. He urged Council not to permit Wal-Mart to come into the neighborhood. Dr. Leo Torio an Optometrist with a clinic located on Linden Avenue stated that over a decade ago he addressed the City Council when Wal-Mart was proposing to move into the City. After that meeting he was very impressed at how local small businesses and unions stood side by side against a large corporation. He was more impressed with how the City Council listened to the concerns and kept South San Francisco a Wal-Mart free City. He had spoken to many small businesses on Grand Avenue and noted great concern regarding the negative impact of Wal-Mart on the Downtown area. He personally patronizes and supports many of the small businesses and his neighbors around his office. He did not look forward to Wal-Mart driving these businesses out resulting in many vacant storefronts on Grand Avenue. He felt compelled to ask the City Council to listen to its local businesses and unions and not permit Wal-Mart to open a big box location in South San Francisco. Dave Radcliffe owner/operator of South City Grocery Outlet provided a brief history of his store. He noted his store's community outreach efforts, including a partnership with St. Vincent De Paul to donate food for people in need and $4,000 in cash. The store also donates bread and food to a church up the street. He stated his store would not be able to compete with a large superstore, because he does not have the largest retailer in the world bankrolling it. He opined that having a Wal-Mart store in the community would only cause harm and further stated that Wal-Mart's focus has never been on the community. He provided an example from Chandler, Arizona in which the town did not allow a Wal-Mart supercenter. Shelly Kessler, Executive Secretary Treasurer of the San Mateo County Central Labor Council, stated that her comments were representative of 110 unions in the county and RE, GULAR CITY COUNCIL MEETING DECEMBER 12, 2012 MINUTES 6 75,000 workers and their families. She stated support for the interim grocery or large format retailer moratorium, and given the holidays, requested that the moratorium be extended at least 90 days, if not longer, to facilitate a reasoned analysis of the proposed development. Moving forward, she urged Council to create a conditional use ordinance that includes an environmental impact report as part of the process for future projects that come before the Council. She noted that Council rejected a Wal-Mart fifteen years ago based on reports that allowing such a business would increase traffic and be a significant prohibitive event and element. She opined it stood to reason that any impact would be worse today. Tina Acerec, introduced herself as a union business representative for the American Federation of State, County and Municipal Employees, including (AFCSME) Local 829 for the City of South San Francisco. On behalf of those employees and the community she stated support for the interim grocery moratorium and moving forward urged a requirement for a conditional use permit, including an environmental impact report. She stated that the City employees she represented wanted to maintain a level of service where people want to stay in the City. She opined this would raise property values to a level that makes it desirable for people to move here from all over because it is a great City to be in, live in, shop in and eat in. She stated that local businesses are an intricate part of the community and stated that bringing in a big box store would be a detriment. She advised that a 2009 study of the differential impact of locally owned businesses and big box stores showed that big box stores only re-circle 16% of revenue back into the community and locally owned business can lose twice as much. She further stated that according to the Orange County Business Council Report increased sales tax to local municipalities by large formula retailers is a myth. The study found that over the first 2 years sales increased. However, after that they all fell below the original benchmark. She opined that South San Francisco cannot afford that. She believed that we need to have the City that everyone wants to be at, that public employees work hard to maintain and that the Council works hard to maintain. Resident Mike Swanson stated Wal -Mart is bad business and would create hardships for the small companies that had spoken. He further opined it would have a negative effect on local employees and create layoffs at Safeway and Costco, stores in the area that pay a minimum wage to their employees and benefits. He asked that Council move forward with the moratorium and say no to Wal-Mart, Resident Mahina Haro noted she had raised her three boys in South San Francisco. Her boys looked up to Genentech as a place they might work. She was proud to say her sons are now employed as scientists and computer engineers. She did not want the average South San Francisco child to aspire to being a Wal-Mart employee. She opined that the City need to hang onto the Genentechs of the world and tell our children that they are good enough and that Wal-Mart is not the end all for jobs. She urged Council to approve the moratorium. Jack Donnekan a retired union member stated that the next Wal-Mart store that supports the City little league team or Chamber of Commerce or any other community activity will be the first. He asked Council to take that into consideration, including its impact on the community. He opined Wal-Mart encourages outsiders to come into the City but provides nothing for the local community. He stated it is not good community business to have a Wal-Mart within the city borders. REGULAR CITY COUNCIL MEETING DECEMBER 12,2012 MINUTES 7 Mayor Gonzalez thanked the public for the e-mails Council received. He stated receipt of 46 e-mails and advised the comments were very similar to the ones made at the meeting. He then queried whether anyone else wished to speak. Resident Robert Franklin Richardson commended the City for its excellent Police, Fire and Parks and Recreation Departments and thanked City staff for making South San Francisco a great place to live. He noted, however, that things were changing. He had recently received an e-mail about a woman who did not want to shop Downtown because of gangs. He hoped the Council would approve the moratorium for two years, Resident Mary Huber advocated for the moratorium. She stated concerns related to pollution and traffic, which would threaten residents' health. She further commented that Wal-Mart is open 24 hours, which is unhealthy for workers. She hoped Council would consider a two year moratorium to study the impacts a superstore would have on the community. Victoria Leonard stated that all the industry has left what used to be known as the Industrial City. She mentioned that manufacturing jobs have moved out of the country and that Wal- Mart is the biggest importer of goods from China. She opined that Wal -Mart is a Company that is destroying the industry that was once the backbone of South San Francisco. She also commented that Wal-Mart has three giant office buildings in San Bruno. Public Hearing closed: 8:22 p.m. Councilman Garbarino commented that he had received many e-i-nails and phone calls on this subject and it was clear to him that the community was not in favor of the addition of a large superstore to the City. As the son of a small business owner, he empathized with the bard working men and women that appeared before him this evening. He was in full support of the 45 day moratorium and would support an extension as well. Councilman Addiego, rerninded the public that Council was looking at this issue in the abstract and that the proposed action was not aimed at a specific retailer. He advised that Council was looking at the concept of large big box retailers generally. He further opined that businesses like the Grocery Outlet, owned and operated by the Radcliffes represented the fundamental key to this issue. He noted that the Grocery Outlet had entered a dormant strip mall, invested in the community and revitalized business in the area. He cited the business as an example of revitalization done in an ethical and judicious manner. He complemented the Council for its careful consideration of the issue and thanked the public for its comments. He stated support for the moratorium. Mayor Gonzalez thanked the public for turning out and making comments on this issue. Based on the comments received, he was in support of the moratorium. Mayor Pro Tem. Matsumoto stated she had listened to all arguments and respected the comments of those that had appeared before the Council. She could not support the moratorium due to the fact that a new business would bring increasingly needed revenue to the City. She stated that with the dissolution of RDA continuing to play out, the need for revenue was unknown and would likely increase. Based upon this uncertainty, she was REGULAR CITY COUNCIL MEETING DECEMBER 12,2012 MINUTES uncomfortable prohibiting new businesses that might bring money into the community. She noted that she was on Council when the community opposed Costeo due to traffic impacts. She stated that the revenue from Costco stores has helped to ensure the fluidity of City services. She stated that she doesn't shop at Wal-Mart and she does not like it, but in considering her fiduciary responsibility to the City, she could not in good conscious outright prohibit such stores from being considered. She further commented that the reason the City enjoys outstanding Police and Fire services is due to revenue sources that are drying up, including development fees. She commented that such stores might bring in $500,000 to $1,000,000 in sales tax revenue- money that is needed for Police, Fire and parks that she could not simply say no to. She further believed that positioned well, such stores might generate foot traffic in the City and improve the business climate generally. She observed that the Wal-Mart in Mountain View did not topple small businesses in the thriving Downtown area of that city. She further advised that she sat on Council when the Lowe's application was approved. She noted it was one of the most costly Lowe's stores ever constructed, which was done to meet the City's requirements. In consideration of all these factors, she could not support the moratorium. Upon inquiry from Councilman Addiego, Mayor Pro Tem. Matsumoto stated she could tentatively support the grocery moratorium in the east of 101 area. Council Mattas suggested a recess so that staff might briefly study whether it was advisable to separate the moratoriums in this manner. Mayor, Gonzalez called for a recess. Recess: 8.37 p.m. Meeting resumed 8:58 p.m. City Attorney Mattas advised that if Council were to simply focus the moratorium on grocery uses, it would not effectuate the suspension of the ability to go in with large format retail. If the intent of the Council was to allow a period of time to revisit the zoning ordinance and consider whether it wished to prohibit a superstore of any sort, then limiting the moratorium to grocery would not achieve this objective because the zoning ordinance allows grocery as a function of large format retail. Councilman Addiego noted that the moratorium was for 45 days. He reminded Mayor Pro Tern Matsumoto that a 45 day moratorium would allow the Council time to reconsider the item when a fifth member might be present due to possible appointment by the City Council. Motion— Councilman Addiego/Second— Councilman Garbarino: to waive reading and adopt an interim Ordinance of the City of South San Francisco making findings and establishing (1) a city-wide moratorium on the issuance of use permits, building permits, or any other applicable entitlement for large format retail or superstore uses and (2) a moratorium on the issuance of use permits, building permits, or any other applicable entitlement for grocery uses in the east of 101 area. Unanimously approved by voice vote. REGULAR CITY COUNCIL MEETING DECEMBER 12, 2012 MINUTES 9 ITEMS FROM COUNCIL (Cont.) 0 City Selection Committee Appointments. Councilmembers discussed the candidates for the various City Selection Committee appointments. Candidate Hon. Gina Papan, Mayor of Millbrae appeared and was heard with respect to her candidacy for the Metropolitan Transportation Commission seat. Council determined to support the individual candidates for uncontested seats. Where seats were contested, Council determined the following individuals would be supported in first- round voting. Per Council policy, the Mayor's discretion would apply to voting in later rounds. Metropolitan Transportation Commission: Council determined to support Hon. Gina Papan, Mayor, City of Millbrae. San Mateo County Transportation Authority, Southern Judicial Cities: Council determined to support Hon. Rosanne Foust, Councilmember, City of Redwood City. Chairperson to the City Selection Committee,for 2013: Council determined to support Hon. Marina Fraser, Councilmember, City of Half Moon Bay. Vice Chairperson to the City Selection Committee.for 2013: Council determined to support Hon. Marie Chuang, Councilmember, City of Hillsborough. CONSENT CALENDAR Motion to approve the Minutes of the meetings of November 14, 2012, November 26, 2012 and November 27, 2012. 2. Motion confirming payment registers for December 12, 2011 I Motion to cancel the Regular Meeting of December 26, 2012. 4. Motion to waive reading and adopt an Ordinance adding Chapter 8.64 to the South San Francisco Municipal Code regarding reusable bags. 5. Motion to waive reading and adopt an Ordinance approving a Development Agreement with Bayside Area Development, LLC for two 2-Story Office/R&D Buildings located at 328 Roebling Road. 6. Motion to waive reading and adopt an Ordinance approving a Development Agreement with HCP Forbes, LLC for two Office/R&D Buildings (one four and one five stories) located at 494 Forbes Boulevard. REGULAR CITY COUNCIL MEETING DECEMBER 12, 2012 MINUTES 10 7. Motion to accept the East of 101 Sewer Improvements Pump Station No. 8 Rehabilitation Project (Project No. ss]010) as complete in accordance with the plans and specifications. Motion to appoint Jim McGuire and Mark Jenkins to respective hotelier representative seats on the Conference Center Authority Board effective January 1, 2013 with term expiration dates of March 27, 2016, and Bruce Tognetti and Laura Fanella to respective business/resident representative seats on the Conference Center Authority Board effective January 1, 2013 with term expiration dates of March 27, 2016. 9. Loan agreements between the City of South San Francisco and the Successor Agency to the Redevelopment Agency of South San Francisco for payment of several enforceable obligations. a. Resolution No. 99-2012 of the Successor Agency to the Redevelopment Agency of the City of South San Francisco approving a Loan Agreement in the amount of $227,083 with the City of South San Francisco to allow the Successor Agency to make payments related to a settlement agreement for a claim that had been on prior recognized obligation payment schedules. b. Resolution No. 100-2012 of the Successor Agency to the Redevelopment Agency of the City of South San Francisco approving a Loan Agreement in the amount of $252,465 with the City of South San Francisco to allow the Successor Agency to make a recognized obligation payment for housing bond debt service incurred by the former Redevelopment Agency. c. Resolution No. 101-2012 of the Successor Agency to the Redevelopment Agency of the City of South San Francisco approving a Loan Agreement in the amount of $17,906.76 with the City of South San Francisco to allow the Successor Agency to make payments for several housing recognized obligation payment expenses incurred but not invoiced until after June 30, 2012. d. Resolution No. 102-2012 of the Successor Agency to the Redevelopment Agency of the City of Soutli San Francisco approving a Loan Agreement in the amount of $74,160.71 with the City of South San Francisco to allow the Successor Agency to make payments for several non-housing recognized obligation payment expenses incurred but not invoiced until after June 30, 2012. e. Resolution No. 103-2012 of the Successor Agency to the Redevelopment Agency of the City of South San Francisco approving a Loan Agreement in the amount of $27,937.50 with the City of South San Francisco to allow the Successor Agency to make a recognized obligation payment for debt service bonds issued by the former Redevelopment Agency. REGULAR CITY COUNCIL MEETING DECEMBER 12, 2012 MINUTES 10. Resolution No. 104-2012 approving the Annual Impact Fee and Sewer Capacity Charge report. 11, Resolution No. 105-2012 authorizing the purchase of tools and equipment for the new Sutphen Aerial Platform Quint in an amount not to exceed $206,486.21; amending the City's 2012-13 Equipment Replacement Fund; and authorizing the City Manager to enter into purchase agreements for the tools and equipment. 12. Resolution No. 106-2012 authorizing the acceptance of $5,000 in grant funding to support Project Read's VITA program and amending the Library Department's 2012/2013 operating budget. 13. Acknowledgment of Proclamations Issued: Proclamation honoring retirement of John Wong. Motion— Councilman Garbarino/Second— Councilman Addiego: to approve Consent Calendar Items Nos. 1-4, 7-9 and 13. Unanimously approved by voice vote. Items 5 and 6: Councilman Addiego pointed out that the recent Public Safety Impact Fee would apply to HCP, but that certain previous contracts included a negotiated number. He questioned the methods used to derive these figures. City Planner Kalkin advised that at the time the HCP contract was negotiated, the Public Safety Impact Fee recommendation was in preparation. With respect to negotiated numbers in other agreements, estimates were devised to yield the most fair and equitable results based on all information available at the time. Item 10: In response to inquiry from Mayor Pro Tem Matsumoto, Director of Finance Steele advised the funds to pay for the Oyster Point Improvements had already been expended. Item 11: Councilman Addiego questioned whether the Public Safety Impact Fee would defray such costs as those associated with this item in the future. Fire Chief White advised that in the future 25% of Public Safety Fee Impact Fee revenue could be used for such purposes. Councilman Addiego further requested clarification as to why the low bidder was not selected for certain items. Battalion Chief Magallanes advised some of the rejected lower bids had been for items called by the same name but functionally and operationally different than what was needed for installation on the truck and called for bid. Finally, Councilman Addiego requested that future staff reports provide more clearly discernable charts and graphs where necessary. REGULAR CITY COUNCIL MEETING DECEMBER 12, 2012 MINUTES 12 Item 12. Inquiry regarding Item 12 was dropped and Council proceeded with action based on the staff report and recommendation. Motion— Councilman Garbarino/Second— Councilman Addiego: to approve Consent Calendar Items Nos. 5-6 and 10-12. Unanimously approved by voice vote, PUBLIC HEARING cunt.) Public Hearing opened: 9:45 p.m. Planning Consultant Knapp presented the staff report recommending that the Council adopt resolutions ' to (1) approve the 2012 addendum to the 1998/99 and 2005 Supplemental Environmental Impact Reports and 2000, 2006 and 2008 Addenda as the appropriate environmental document for the Project; and (2) approve an amendment to the Terrabay Specific and Precise Plan and TDM Program to modify conditions of approval A.21 and A.22. These amendments were being requested by the Project Sponsor, Myers Development, to release the obligation to construct a child care facility within the project, and allow for a permitted retail use instead, which Mr. Myers believed would be a Fitness Center/Gym. The modification would require Myers Development to pay the City's Childcare Impact In Lieu Fee. The sponsor was requesting that this fee be payable upon commencement date of construction of Phase 11 (the North Tower) of Centennial Towers. The request was made in light of the financial pressures which Myers Development was continuing to endure through the current economic downturn, which commenced in July 2008. Mr. Myers addressed Council and provided a brief update on the progress being made with the project. He believed the project would prove to be successful for the community in the long run. Several floors of the first tower were presently being occupied by Success Factors, or SAP. Despite standing empty for a number of years, Myers Development stayed the course and believed additional tenants would be taking occupancy soon. Although Myers Development had not compromised its efforts to find quality tenants, this had a negative financial impact on the Company. In light of this situation, Mr. Myers respectfully requested the modifications set forth above and in the application and supplemental letter. Mayor Gonzalez questioned whether Mr. Myers had a time in mind when construction of the second tower might begin. -- REGULAR CITY COUNCIL MEETING DECEMBER 12, 2012 MINUTES 113 Mr. Myers responded that while there was no specific time set, prospects were improving that the tower would be constructed. He pointed out that all of the construction materials, including structural steel and glazing systems, were purchased and sitting in various warehouses awaiting commencement of the project. Councilman Addiego questioned staff with respect to the logistics of the modified payment schedule. City Attorney Mattas advised the payment of the childcare impact fee would typically have occurred upon the first building permit issuance. Accordingly, since the building had already gone up, it would be payable for building one upon issuance of the next building. Myers Development had requested that the entire child care fee be deferred to commencement of construction of the second tower. He noted there was no guarantee the second tower would be constructed. There was a further request that the total amount of fees be dropped by $10,000, in consideration of the fact that the buildings' Performing Arts Studio and Design Studio do not generate childcare impacts as contemplated by the ordinance. Mayor Pro Tenn Matsumoto pointed out that the City's Childcare Impact fund balance was presently operating upwards of $2 million. She believed the health and fitness center proposed at the site would be a benefit to the community. She further believed that the success of this project would benefit the community. City Attorney Mattas clarified certain modifications to the proposed resolution and noted the sunset on the payment would be January 1, 2018. Mr. Myers agreed to this sunset date. Public Hearing closed: 101 :13 p.m. Motion— Councilman Addiego/Second— Councilman Garbarino: to approve Resolutions 107-2012 and 108-2012. Unanimously approved by voice vote. ADMINISTRATIVE BUSINESS 16. 2011-2012 Year End Financial Results and Resolution No. 109-2012 approving various budget closing actions. Budget and Financial Manager Tribby provided a PowerPoint presentation recommending that Council approve the resolution authorizing various budget actions allowing staff to close the books on the Fiscal Year 2011-2012. The Budget Overview showed an increase in regional travel and hotel rates, along with a significant increase in hotel occupancy. In addition, the City's top three revenues had spiked: Property tax was -up by 5%, sales tax was up by 27%, and Transient Occupancy Tax (TOT) was up by 48%. Though revenues were up by $3.5 million compared to the prior fiscal year, expenditures were also up by $1.5 million. Manager Tribby explained that the shifting of the Redevelopment Agency expenses, key retirement payouts and REGULAR CITY COUNCIL MEETING DECEMBER 12, 2012 MINUTES 14 higher than estimated vacation/sick pays had caused the increase in expenses. The net revenue prior to transfers for fiscal year 2011-2012 was a surplus of $3.2 million. Manager Tribby next advised of larger changes to the Fiscal Year 2011-2012 Budget. She reported that the City received $1,049,000.00 in property tax revenue from the dissolution of the RDA. However, because staff positions formerly charged to RDA were absorbed by the General Fund, the net impact was a loss of $1,049,000.00. Sales taxes were up by $491,000.00 due to increased use of service stations, increased sales of wholesale building materials, and more business to business (office leasing and office equipment leasing). TOT reports showed that room and occupancy rates were up by 16%. June 2012 alone showed a revenue spike of $245,000.00 (27%) due to the US Open. SFO reported a 7,8% increase for passenger arrivals for fiscal year 2011-2012. Also noted were the decreases in revenue for both Building and Fire Divisions, down by $100,000.00. The impact was caused by the economy's continuing recovery and pending collections on permit payments. Manager Tribby reported on revenues from other agencies for projects; balances would be carried over in the amount of $1.5 million to the next fiscal year pending spending for projects by June 30. The presentation also included Charges for Services spending. Manager Tribby advised that Advanced Life Support (ALS) spending increased by $516,000.00, while Aflerschool Program/High School Program spending increased by $896,000.00, reflective of an increase in program use, Code Enforcement revenues were up by $253,000.00, along with an increase in parking citation revenue. Manager Tribby also noted that various City Departments were under budget, totaling to $1.5 million dollars that would carry over to the next fiscal year. Vacation and Sick Leave payouts amounted to $532,000.00. RDA cost shifts were $1.1 million for February and June 2012 alone, while the annual estimate for the next Fiscal year was $2.7 million. Transfers Out of the General Fund in Fiscal Year 2011-2012 included $ 196,000.00 towards the Capital Improvement Program (CIP), $550,000.00 toward Other Post Employee Benefits (OPEB), and $275,000.00 toward the Storm Water Fund. Also noted was a substantial surplus in the Storm Water Fund which would result in a decrease in transfers for future years. City Reserves showed a balance of $5.6 million in Undesignated Reserves, while a balance of $17.0 million remained in Undiscretionary Reserves. Manager Tribby also reported on the City's Other Funds, which included RDA and Successor Agency dissolutions, the City Housing funds, and the RDA Obligation Retirement Fund (Non-Housing), The Non- Housing RDA Obligation Retirement Fund showed a zero balance, while the Housing RDA Obligation Retirement Fund portion showed a balance of $27.8 million. The City's share of local taxing entities payouts was 16.75%, which was estimated at $4.7 million. Mayor Gonzalez commented on local hotel rates improving drastically and showing progress. Mayor Pro Tern Matsumoto thanked Councilman Addiego and Councilman Garbarino for serving on the City Budget Subcommittee. She then directed the following questions to Budget and Financial Manager Tribby. REGULAR CITY COUNCIL MEETING DECEMBER 12, 2012 MINUTES 15 Councilman Garbarino and Councilman Addiego thanked Manager Tribby and Finance Director Steele for their work with the subcommittee and for the thoroughness of their reporting. Motion— Councilman Garbarino/Second— Mayor Pro Tern Matsumoto: to approve Resolution 109-2012. Unanimously approved by voice vote. 17. Resolution authorizing the City Manager to execute Agreement for Services with Inn Vision/Shelter Network to implement the Homeless Outreach Team (HOT) for South San Francisco; and amending the operating budget for fiscal year 2012-13 to allow expenditure of $125,000 from the foriner rental rehabilitation program. Manager of Housing and Community Development Fragoso presented the staff report recommending authorization of the agreement for services with INN Vision/Shelter Network to implement the HOT for South San Francisco and amending the operating budget accordingly. She described the program as one that would provide outreach to the homeless and help to move the chronically homeless off the streets to become contributing members of society. She explained that HUD funding for the program had been secured and advised that Dr. Brian Greenburg of the HOT Program and Chris Cantor from Shelter Network were present. Councilmembers expressed opposition to the program due to the need for City provided housing in the Downtown area and questioned whether a better location might have been suggested. Councilman Addiego noted that families and business owners in the Downtown area were pushing back and expressing feelings of victimization by the homeless population in the area. Dr. Greenburg and Mr. Cantor reported on the successes of the program in the Downtown area of San Mateo. They noted comments from business owners in the area that the residents of the program were not problematic. Mayor Pro Tem. Matsumoto commented that she was not in favor of congregating 30 such units in the Downtown area. Manager Fragoso noted that staff could look at alternative locations for the housing. City Manager Nagel suggested that staff consider alternatives with the caution that if such alternatives were not approved by the end of February, the HUD funding would be gone. Mayor Gonzalez stated that Council presently was not prepared to take the recommended action. • i weitue LVAI Mayor Gonzalez appointed Councilman Garbarino and Mayor Pro Tern Matsumoto to serve on the CDBG subcommittee in order that subcommittee meetings might begin in early January. REGULAR CITY COUNCIL MEETING DECEMBER 12, 2012 MINUTES 16 Mayor Gonzalez announced he planned to start a program with a Doctor at Kaiser called "A Healthy Walk with a Mayor and a Doctor." He hoped to bring people together to enjoy a walk and improve health. Councilman Addiego advised the community of a DUI Checkpoint in the City on the upcoming Saturday evening. ADJOURNMENT Being no farther business, Mayor Gonzalez adjourned the meeting at 10:53 p.m. in honor of Helen May Cain. tted: City Clem; City Af South'San Francisco Approved: Pedro Gonzalez Mayor, City of South San Francisco REGULAR CITY COUNCIL MEETING DECEMBER 12, 2012 MINUTES 17