HomeMy WebLinkAboutMinutes 2014-08-20 @6:30 SPECIAL MEETING
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�.,.,__� JOINT CITY COUNCIL AND
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SUCCESSOR AGENCY
OF THE
CITY OF SOUTH SAN FRANCISCO
P.O. Box 711 (City Hall, 400 Grand Avenue)
South San Francisco, California 94083
Meeting to be held at:
CITY HALL CONFERENCE ROOM
400 GRAND AVENUE
SOUTH SAN FRANCISCO, CA
WEDNESDAY, AUGUST 20, 2014
6:30 P.M.
Purpose of the meeting:
1. Call to Order. TIME: 6:35 P.M.
2. Roll Call. PRESENT: Councilmembers Addiego, Gupta,
and Normandy, Vice Mayor
Garbarino and Mayor Matsumoto
ABSENT: None.
3. Public Comments—comments are limited to items on the Special Meeting
Agenda.
Residents and representatives of South City Coalition Gustavo Lopez, Fernando Aguilar and a third
unnamed commenter spoke about the potential uses for the Public Utility Commission sites.
Collectively, they felt uses should address the needs of the community by providing additional space
to recreate, conduct tutoring services, hold study groups and expand college preparatory
opportunities. Mr. Gustavo also added his desire to see these lands used in an environmentally
sustainable manner. The speakers all felt the lack of community resources contributed to increased
obesity rates, an increased number of drop-outs and criminal activity amongst youth. Using the
parcels to address these community needs would be a step in the right direction.
Councilmember Normandy thanked the speakers and strongly urged the speakers to attend an
upcoming School Board meeting scheduled for September 11 at the Municipal Services Building in
order to address their comments.
Councilmember Addiego thanked the group for their comments and informed them this session was
this first to be had and there would be plenty of opportunities to make further comments and
suggestions.
4. Agenda Review
None.
5. Administrative Business:
A Resolution awarding the construction contract to City Mechanical, Inc. of
Hercules, California for the Energy Savings Upgrade Project at Magnolia Senior
Center, Main Library and Orange Memorial Park Pool in an amount not to exceed
$271,062.07. (Brian McMinn, Public Works Director)
Public Works Director, Brian McMinn summarized report which was being presented at a special
meeting in an effort to get the project started and due to the cancellation of the regular Council
meeting scheduled for August 27, 2014
Bid proposals had been received by four companies with one was considered non-responsive due to
the omission of required information. City Mechanical, Inc. was the low bidder. This contract was
the final in a series of contracts for this particular project, the previous contracts being awarded to
Thermal Mechanical, Inc., Syserco, Inc., and California Hydronics Corporation. City Mechanical
would install the skid mounted boiler, five of the feed pumps and completion of weather sealing for
the skid and skylight areas of the Magnolia Senior Center roof. The existing 1965 vintage boiler at
the Main Library will be replaced and Variable Frequency drive ("VFD") for main air handler motor
will be installed. A VFD for the main pump motor at Orange Memorial Park pool would also be
installed. Staff recommended City Council approve the resolution and award the contract to City
Mechanical, Inc for the stated "not to exceed" amount.
Vice Mayor Garbarino asked if the pool schedule would be impacted at all, and if City Mechanical
would complete any necessary repairs to the Magnolia Senior Center's roof.
Director McMinn stated impact would be known once the contractor's schedule was submitted; staff
would with Parks and Recreation to make adjustments to minimize any impact. Regarding the
roofing, he noted there had been a roofing project but it had been postponed.
Councilmember Gupta asked if the design had been completed and wondered if there were any new
discoveries of additional work needed or points of weakness.
Director McMinn noted the only thing that had come up was some asbestos abatement and some
piping replacement at MSB. Everything had been identified as far as could be but there were
contingencies to address anything else that may come up.
Councilmember Gupta asked if there were any special requirements for dealing with asbestos.
Director McMinn stated an environmental specialist would come in to make sure that containment
and disposal were properly completed.
Councilmember Normandy asked if there were any warranties.
SPECIAL JOINT MEETING AUGUST 20,2014
MINUTES PAGE 2
Director McMinn stated the warranty was for 15-20 years.
Motion—Vice Mayor Garbarino/Second—Councilmember Gupta: to approve Resolution No. 99-
2014. Unanimously approved by roll call vote.
6. Public Uses and other Property Disposition issues at the former Public Utilities
Commission sites at El Camino Real and Chestnut Avenue. (Armando Sanchez,
Housing Consultant &Jim Steele, Finance Director)
Finance Director Jim Steele reviewed the staff report and gave a power point presentation detailing
the various elements of the public uses and property disposition options for the sites at El Camino
Real ("ECR") and Chestnut Avenue.
Director Steele noted the Long Range Property Management Plan("LRPMP") was currently before
the state for review. This plan held the parcels for development and allowed for the City to obtain a
master developer. Understanding of Council's preference on potential uses for the property was
needed to draft a proposal with that vision in mind. Base level public uses included a connection
from El Camino to Centennial Way, landscaping and modest public open spaces. Additional
suggestions on potential uses for the PUC property included a new Main Library, a recreation/cultural
facility, additional childcare, and a joint use education site. Council may want to consider these uses
if and when a master developer was selected.
Library Director, Valerie Sommer and Parks and Recreation Director, Sharon Ranals spoke about the
potential of a state of the art library and a performance art center, and how they could help form civic
identity, adding that the current trends show that people are flocking to these public spaces for a
variety of activities. A video showing the potential for a Science, Technology, Engineering, Arts, and
Mathematics ("STEAM") focus at a new main library that would serve as a technology incubator and
community gathering place, as well as provide space for group work areas. What was represented in
the video was achieved with a gift of$1 million.
Director Ranals stated the Master Plan survey had shown significant support for a performance art
center, at 43 percent. Child impact fees, Park in lieu fees and other creative ways of putting together
funding sources could help make this happen.
Director Steele reviewed the General Fund forecast for the next five years and outlined the items that
he believed could compete as funding priorities; Conference Center expansion, Caltrain Station
improvements/relocation, a new Main Library and Performing Arts Center.
Councilmembers discussed preferences for the new site. Noted as priority were a new Police Station
and Main Library. Even though Mayor Matsumoto was a person of the arts, she did not think a
performing arts center should have priority. Vice Mayor Garbarino recalled discussion of a civic
center, with Municipal Services Building being sold.
Councilmembers Addiego and Gupta agreed with the Vice Mayor's recollection, adding that there
was talk of moving the Safeway as well.
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MINUTES PAGE 3
City Manager Futrell summarized what he believed was Council's direction; yes to a library, moving
Police and Parks and Recreation to the same location. Options related to the selling or retaining the
MSB would play into financing.
Director Steele discussed financial constraints. He noted previous discussion about the use of the
parcels focused on public use as they were thought to be unsuitable for development. One of the
main considerations to take into account would be, the more grandiose the plan, the more difficult it
may be to gain Oversight Board approval. He added that even with the new hotel development and
the Park SFO expansion, the City would still be looking at a deficit because of PERS. New taxes
would be needed to fund development. A slide displaying future bond measures and various tax
scenarios was shown. Listed were: (1) a Transient Occupancy Tax ("TOT") increase from 10%to
11% would generated $16 million; (2) parking tax increase from 8%to 10%to generate $10 million;
(3) Annual Parcel Tax of$50/parcel to generate $36 million; (4) Business License tax increase of
50%to generate $8 million; (5) 1/4 cent sales tax $56 million; (6) pledge taxes from new Airport
Parking Garage to generate $9 million; (7) pledge property taxes from developed PUC site to generate
$5 - $10 million; and (8) General Obligation Bonds tax on a $500,000 house: $120 /year to generate
$50 million.
Council discussed the scenarios presented as a means of generating the funds for the priority
developments. Recent tax increase initiatives that passed in the nearby cities of San Mateo and Half
Moon Bay were noted and Councilmember Addiego pointed out that there had been no General
Obligation bonds in the City since the seventies. He felt that if people considered the amenities to be
enjoyed, there could be tremendous support. He believed a General Obligation bond for the library
could be palatable to residents.
Council expressed their leanings towards a one-quarter cent sales tax, the TOT increase and the
parking tax increase.
City Manager Furtell reviewed the timing of the RFP and information on the developed timeline, with
it being noted that the old golf course and Pet Club would be the first to see development and that the
middle lots would not be developed until the Oak Avenue extension was completed. It was
anticipated that the RFP would be put out in the next three months.
Council noted their preference of allowing a developer look at potential uses for the strip of land on
ECR. Further comment included looking at a new location for Fire Station 63 if the MSB were to be
sold and perhaps reaching out to the County to discuss the long term property management plan for
the North County Court House on Mission Road.
City Manager Futrell noted that if the strip of land was not preserved for public use, only 16 percent
of the money would be gained from commercial development.
Assistant City Attorney, Jason Rosenberg advised that the RFP be written similarly and include the
same information that was included in the LRPMP, not to specify but still maintain that a public
facility would increase the tax base for all taxing entities. This should be factored into RFP for any
potential developer to consider.
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MINUTES PAGE 4
City Manager Futrell summarized Council direction as drafting RFP to include the development of a
new Main Library that would also house a new Police Station and the Parks and Recreation
Department; allow developers to respond on the potential of ECR parcel development; perform
further study on potential sale of the Municipal Services Building; contact County regarding the
North County Court house located on Mission Road; and perform further study on the bonding and
taxing options preferred by Council.
Before closing the meeting, City Manager Futrell provided update on the fogging scheduled for the
evening of August 21. Suggestions on placing electronic signs and conducting robo-calls to help
inform the public would be explored.
7. Adjournment.
Being no further business, Mayor Matsumoto adjourned the meeting at 8:03 p.m.
Submitted by: Approved by: ,
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Anna M. Brown, Deputy City Clerk oto, Mayor
City of South San Francisco City of South San Francisco
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