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Irrn76_ CITY COUNCIL
-- "°J CITY OF SOUTH SAN FRANCISCO
Cdlipo o" REGULAR MEETING
MUNICIPAL SERVICES BUILDING
COUNCIL CHAMBERS
33 ARROYO DRIVE
SOUTH SAN FRANCISCO, CA
WEDNESDAY, JULY 9, 2014
7:00 P.M.
CALL TO ORDER TIME: 7:06 P.M.
ROLL CALL PRESENT: Councilmembers Addiego, Gupta and
Normandy, Vice Mayor Garbarino and
Mayor Matsumoto
ABSENT: None
PLEDGE OF ALLEGIANCE Led by Mayor Matsumoto.
AGENDA REVIEW
No Changes.
PRESENTATIONS
• Proclamation recognizing July as Parks and Recreation Month accepted by Richard Holt,
Chair of the Parks and Recreation Commission.
Presented by Mayor Matsumoto and accepted by Parks and Recreation Commission Chair,
Richard Holt.
Chair Holt thanked Council for their continued support and took the opportunity to inform
citizens about the upcoming Movie in the Park event on July 18.
• Library Presentation: Discover & Go Museum Pass Program presented by Adam Elsholz,
Library Program Manager.
Library Program Manager, Adam Elsholz informed the community of this feature now available
through the South San Francisco Library. This program allowed library card holders for the
Peninsula Library System to access free passes to various museums throughout the Bay Area.
• Presentation of award from Freedom House to the South San Francisco Police Department
presented to Public Safety Chief Massoni.
Public Safety Chief Massoni provided information about the Freedom House Agency and the award
that had been given to the South San Francisco Police Department. The Guardian Angel Award had
been awarded to the Department in recognition of their work against human trafficking.
PUBLIC COMMENTS
Former Councilmember Pedro Gonzalez and Sonny Koya respectfully requested the meeting be
adjourned in memory of City resident and former City Street Maintenance Worker, Efrain Loza.
Resident Patricia Watson asked for Council's support and approval of a Resolution recognizing
September Childhood Cancer Awareness month in honor of their daughter Juliana Pena, who
passed away from Neuroblastoma at the age of two (2). The State of California does not currently
recognize September as Childhood Cancer Awareness month, but it was her hope that they would
soon, and that Juliana's home city would recognize her battle as well with the issuance of the
Proclamation.
Council responded they would be more than happy to support, with Vice Mayor Garbarino noting
his personal experience with childhood cancer as the grandparent of a leukemia survivor.
COUNCIL COMMENTS/REQUESTS
Vice Mayor Garbarino thanked Firefighters from Local 1507 and Genentech employees for
assembling and distributing 120 bicycles and making the summer better for 120 children. He issued
a challenge to local businesses and service organizations, asking if they could match the gift and
added that he would write a check for the purchase of a bicycle to the first group that called him.
Details of where to leave your donations could be worked out.
Mayor Matsumoto and Councilmember Normandy agreed to donate as well.
Mayor Matsumoto announced a community e-waste recycling event on July 26and 27 at Station 61
from 9:00 a.m. to 2:00 p.m. All money raised will go to Community Preservation Task Force. Zarc
Recycling would be taking almost any electronic-related item for recycling. Mayor Matsumoto
noted a late public speaker card.
CONSENT CALENDAR
1. Motion approving the minutes from the meetings of January 15, 2014 and March 12, 2014.
2. Motion confirming payment registers for July 9, 2014.
3. Resolution authorizing the City Manager to sign a California Wastewater Process
Optimization Program (Ca1POP) Program Participation Agreement to receive an incentive
of $27,700 for the replacement of Blower #9 at the Water Quality Control Plant. (Brian
Schumacker, Superintendent of WQCP).
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AGENDA PAGE 2
4. Approval of resolutions: pledging sewer service charges to repayment of State Water
Resources Control Board loan financing; and declaring the City Council's intent to
reimburse the sewer enterprise fund from State Water Resources Control Board loan
proceeds for sewer enterprise fund capital expenditures made prior to the receipt of those
loan proceeds. (Jim Steele, Finance Director)
5. Resolution amending an existing on-call consulting services agreement with Ghirardelli
Associates of Oakland, California to include special construction management and
inspection services for the L-132 PG&E Pipeline Replacement Project in an amount not to
exceed $446,662 and appropriate funds in the same amount to the Engineering Division
operating budget from Inspection Fee Revenues. (Sam Bautista, Principal Engineer)
6. Motion to accept the City Hall Tot Lot Safety Surfacing Installation Project (Project No.
pfl 410) as complete in accordance with the plans and specifications. (Total construction
cost$125,420.73). (Sam Bautista, Principal Engineer)
7. Resolution approving the South San Francisco Conference Center Fiscal Year 2014-2015
Operating Budget. (Dean Grubl, Conference Center Director)
Discussion requested on item seven.
Item 7 - Mayor Matsumoto wanted to assure the public that the Conference Center budget had been
thoroughly reviewed and reported that the figures were included in the budget, ensuring the City
would not have to subsidize from the General Fund. She also took the opportunity to promote the
Conference Center being awarded the Pinnacle Award from the readers of Successful Meetings
Magazine for the twelfth year in a row and being named as the Best Meeting and Conference Center
in North American for the third year in a row by Business Destinations.
Councilmember Addiego had also wanted to discuss this item in relation to the City's participation
in the study for expansion, as he felt that $50,000 from the City's General Fund was not needed
because the Conference Center had enough funds of its own. He noted that the funding mechanism
was healthy, resulting in $2.1 million per year. Being such, he wanted to look at backing away
from the expenditure.
Councilmember Normandy asked if shared costs of studies had been done in the past.
City Attorney Mattas was not aware of any, but noted many things had been funded by
Redevelopment and had benefited the City. This particular circumstance was unique as the
Conference Center was created by the City and there was a special tax that could be used for debt
service and beyond.
Councilmember Addiego asked for the total reserves amount of the Conference Center. He also
asked when the last study had been completed.
City Manager Futrell explained the history of the item, noting that the City had been asked to fund
whole thing but offered a partnership instead. This was thought to be appealing as the City would
be impacted and share in the benefits. It was believed the City should participate and it was
presented in the budget and in a Memorandum of Understanding ("MOU") that was passed last
meeting.
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AGENDA PAGE 3
Conference Center Executive Director, Dean Grubl recalled the last study occurred approximately
five or six years ago and reported the total reserves at June 30, 2014 as a little over $2 million with
a total indebtedness of$500,000 plus annual rent to the City.
Further comments included Director Grubl's statement that the current conference center was
smaller than regional competitors. The Authority was looking at an expansion of 100,000 square
feet at an estimated $200 million given the numbers of the San Jose expansion. Request for
Proposals ("RFP") were going out August 1 and were expected back in late August.
Councilmember Addiego was not against an expansion and fully expected the City to participate in
a financial mechanism to make it happen. His uncertainty was that a study would build the resolve
of the authority. Given the large figure, Councilmember Addiego asked if regional efforts had been
discussed. Again, he questioned the value of a study if a roadmap or formula to fund $200 million
for an expansion could not be worked out.
Mayor Matsumoto noted buy in from the County and the San Francisco Travelers Association for
the first time and Director Grubl also noted this year as the first time the Conference Center was
included in the CIP, at $300,000.
Director Grubl believed the study was critical to any potential expansion and stated the Conference
Center Authority would have to decide on whether or not it would go forward without the funding
of the City.
City Manager Futrell corrected the record to reflect that the MOU mentioned earlier had only been
approved by the Authority and would come before Council later this month.
Clarification was made to the motion on the table as an amended budget motion.
Motion - Councilmember Addiego/Second - Councilmember Normandy: to approve the Conference
Center Authority budget with a $50,000 increase for consulting services and reducing the budget
surplus by $50,000. The following roll call vote result for the amended motion was: AYES:
Councilmember Gupta, Vice Mayor Garbarino and Mayor Matsumoto. NOES: Councilmembers
Addiego and Normandy. ABSENT: None. ABSTAIN: None. The motion was not passed.
Motion - Vice Mayor Garbarino/Second - Councilmember Gupta: to approve the resolution for item
number seven as presented, as Resolution No. 77-2014. Motion passed by a unanimous roll call
vote.
Motion - Councilmember Addiego/Second - Vice Mayor Garbarino: to approve Consent Calendar
items 1-6. Unanimously approved by roll call vote.
ADMINISTRATIVE BUSINESS
8. Resolution awarding the purchase agreement to California Hydronics Corporation of
Hayward, California for the fabrication of the boiler and cooling tower skid for the Magnolia
Senior Center of the HVAC Replacement at Various City Buildings Project (Project No.
pfl 408) in an amount not to exceed $146,060. (Brian McMinn, Public Works Director)
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AGENDA PAGE 4
Public Works Director McMinn summarized the staff report and noted that the following item and
the first public hearing were all related; awarding contracts for the HVAC project for various City
buildings. This item was for the procurement of a boiler and cooling tower skid. Three potential
vendors were contacted with two providing quotes. Staff recommended the contract be awarded to
California Hydronics Corporation for the stated "not to exceed" amount.
Vice Mayor Garbarino commented that he was surprised the equipment had lasted for so long.
Director McMinn agreed, stating some of the equipment was dating back to 1986.
Motion - Councilmember Gupta/Second - Vice Mayor Garbarino: to approve Resolution 78-2014.
Unanimously approved by roll call vote.
9. Resolution awarding the construction contract to Thermal Mechanical, Inc. of Santa Clara,
California for the Municipal Services Building (MSB) HVAC & Fan Replacement Project
(Project No. pfl 408) in an amount not to exceed $993,583 and appropriate additional funds
in the amount of$30,000 to the project from the Police Department Seizure Fund. (Brian
McMinn, Public Works Director)
Director McMinn summarized the report for the construction at MSB and the largest component of
the HVAC replacement project. Phases one and two of on-bill financing ("OBF") steps were
reviewed. There was a difference between what the City qualified for and the cost of the project
partly because the original energy estimates used to calculate the OBF were high, the City only
received credit of the efficiency standards as of the 2008 baseline, and the City will realize greater
energy savings than given credit for. OBF Non eligible items were reviewed for Phase 1. Project
funding for each phase was discussed, noting an expected deficit in Phase 2. Staff would present
options for project funding if needed based upon the actual bids for the Phase 2 work.
Councilmember Normandy asked if California Hydronics Corporation had submitted a bid for this
project and complimented Director McMinn for the reference check this time around.
Director McMinn was not sure if they were eligible.
Motion - Councilmember Addiego/Second - Vice Mayor Garbarino: to approve Resolution No. 79-
2014. Unanimously approved by roll call vote.
PUBLIC HEARING
10. Resolution awarding the consulting services agreement to Syserco Inc. of Fremont,
California for the Energy Monitoring System (EMS) of the Municipal Services Building
(MSB) (Project No. pf1408) in an amount not to exceed $76,907. (Sam Bautista, Principal
Engineer)
Public Hearing opened at 8:10 p.m.
Director McMinn summarized the staff report, noting the item required a public hearing because it
was being awarded as an energy services contract under the Government Code. Two proposals
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AGENDA PAGE 5
were received with the most qualified and lowest bidder being Syserco, Inc. Council must make the
three findings in the resolution, which were (1) Upon completion of this Project, the City will save
approximately$38,162 annually in energy costs and reduce energy consumption by 273,145 million
kilowatt hours a year, a reduction of 440,168 pounds per year in CO2 emissions; (2) this Project
will qualify for On-bill Financing, which will help reduce the overall costs of the Project to the
City; and (3) the anticipated costs for energy conservation services provided by Syserco will be less
than the anticipated marginal costs to the City of energy consumed by the City in absence of the
Project. Director McMinn reiterated staff recommendations and availed himself for questions.
Being no public comments, Mayor Matsumoto closed the Public Hearing at 8:14 p.m.
Councilmember Gupta had some clarifying questions 1) is system generic to allow for
modifications, 2) does contract include ongoing maintenance, and 3) was control of the building
already determined or still to be tested.
Director McMinn stated the language within the system was open source communication and the
actual logic controls would still be able communicate if there is some change in the future.
Maintenance was not included, but he did not expect constant updates would be necessary. For
controls, the system would be responsive to set points in the computer and staff would have ability
to set.
Mayor Matsumoto asked for clarification of the financial aspects, noting a pricing difference of
$15,670.00.
Director McMinn stated the proposed project budget, base consulting was $61,237 and the delta
was for the next two (2) items and totals up to the contract amount. He apologized for not
separating it out.
Motion - Councilmember Normandy/Second - Councilmember Gupta: to approve Resolution No.
80-2014. Unanimously approved by roll call vote.
11. Resolution making findings and awarding an energy services consulting agreement to
Pacific Gas and Electric Company of San Francisco, CA for the "Streetlight Conversion to
LED" (Project No. st1404) in an amount not to exceed $1,129,458. (Justin Lovell,
Management Analyst II)
Public Hearing open 8:20 p.m.
Management Analyst II, Justin Lovell summarized the staff report, providing a history of the
processes gone through thus far for the "Streetlight Conversion to LED" project. Project is for
replacement of 4000 street lights in the City that would result in a savings of 62% in current bills,
reduction of greenhouse gases, reduction of maintenance costs and a material lifespan of
approximately 15 to 20 years. Savings will help pay off project in less than five years. PG & E
rebates received were expected to be about 27% of the total project costs. The use of an Energy
Services Contract allowed for flexibility and relieved staff administrative time as well as allowed
staff the selection of a fixture that would best suit the needs of the City. Analyst Lovell reviewed
the RFP process, which included the independent evaluation, ranking and scoring of the three (3)
proposals received. Of the three responses, PG&E and Siemens were the top two. Upon a
reference check, PG&E was determined to be the better of the two and the decision was to
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AGENDA PAGE 6
recommend Council awarded the contract to them. Because PG&E is regulated under the California
Public Utilities Commission ("CPUC"), they are exempt under the Business and Professions Code
from meeting the licensing requirements.
Council expressed concern about PG&E being exempt from licensing requirements and what it
meant in terms of adherence to standards and recalled that the lack of licensing had been the reason
Tanko was not pursued. Additional questions included: if the Siemens reference check revealed
something dissatisfactory, so much so that they were no longer viable option; to whom should
complaints be directed; and clarification on the evaluation process.
Analyst Lovell reassured Council that the consultant met all the requirements regardless of the
exemption and noted the City fell under the same exemption. He added that the specific staff who
would oversee the contractors were the exempted, not the contractors performing the work.
Director McMinn added that the RFP required that consultant meet all the legal requirements to
perform the work and PG&E still met those requirements under the exemption. Regarding the
Siemens reference check, Analyst Lovell noted that the fixture selection by Siemens was less than
what the City had wanted in terms of warranty and maintaining function and aesthetics in salt fog
conditions. Complaints would come through the City and handled as a matter of contract
compliance. Director McMinn added that both parties were bound by the terms of the contract,
bonding was required of PG&E, and that the same enforcement mechanisms would be available
with PG&E as they are with any other contractor. To clarify the evaluation process, Analyst Lovell
explained the proposals had been evaluated by three evaluators who had no knowledge of each
other or communications with each other; the evaluations were performed independently of each
other.
Public Comment: Mark Leach commented that all of the companies spoken of this evening were
great companies and that they were all signatory with the International Brotherhood of Electrical
Workers ("IBEW"); Thermal Mechanical, Syserco, Siemens and PG&E. In defense of Siemens, he
noted that had they been awarded, they would actually being doing the work whereas PG&E would
hire subcontractors. Still, these were all good employers who all provide solid careers for workers
in this community. Lastly, he wanted to come and thank Council and staff for reconsidering and
reevaluating their previous choice.
Being no further public comment, Mayor Matsumoto closed the public hearing at 8:35 p.m.
Councilmember Addiego asked if it was known who would be subcontracting.
Analyst Lovell stated the potential subcontractors were CalWest Lighting Signal Maintenance of
San Jose, St Frances Electric of San Leandro, Advanced Lighting Services of Dublin, and Mike
Ferrel Company of Walnut Creek. These subcontractors all held the required C-10 Electrical
Contractors license and two were known and signatory with the IBEW, although it is only required
that they pay prevailing wage.
Councilmember Gupta understood how the evaluation scores had been arrived at but asked if the
deficiency indicated in Siemen's score was something that could have been discussed with them in
order to change.
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Analyst Lovell stated there were differences in the evaluators derived from the information that was
provided in the proposal and staff could not change an evaluator's score if the independent nature of
the evaluation was to be maintained.
Motion - Vice Mayor Garbarino/Councilmember Normandy: to approve Resolution No. 81-2014.
Unanimously approved by roll call vote.
12. Zoning Text and Map Amendments—Commercial and Public Parking Uses
City of South San Francisco-Owner/Applicant
Citywide
P07-0136:ZA14-0002
Proposed Amendments to South San Francisco Municipal Code Chapter 20 — Zoning
Ordinance — to clarify regulations related to commercial and public parking uses, including
the definition and location of permitted or conditionally permitted parking uses, in
accordance with South San Francisco Municipal Code Chapter 20.550 ("Amendments to
Zoning Ordinance and Map"). ( Billy Gross, Senior Planner)
Public Hearing opened at 8:40 p.m.
Senior Planner Billy Gross summarized staff report and provided some background of the issue
before reviewing the proposed amendments to the Zoning Code related to commercial and public
parking uses citywide. Images showing allowed districts for public parking, commercial parking
was displayed. Land Use Regulations were discussed for Commercial, Office and Mixed-Use
Districts, Downtown Districts, Employment Districts, and Public and Semi-Public Districts.
During Planning Commission review conducted on June 5, no members of the public commented
and Planning Commission comments only sough to clarify the difference between parking as a
primary use and accessory use. The Planning Commission unanimously recommended approval of
proposed Zoning Amendment. It was then recommended that City Council introduce an Ordinance
making modifications to the Zoning Code related to commercial and public parking uses citywide,
and waive further reading.
Being no public comment, Mayor Matsumoto closed the Public Hearing at 8:49 p.m.
Councilmember Gupta asked if underground parking was covered under the zoning and questioned
why the option of City owned parking in the Employment Districts was not left open. He thought
there could be future interest in having a City owned lot and felt that a barrier was being created.
He felt this should be left open for the Council to decide and the amendment be changed to allow
for that determination.
Planner Gross stated underground parking would be subject to the proposed zoning. Regarding City
Parking in the Employment District, typically the City provides parking in the areas where it
provided services. There was no regulation or policy that prohibited the City from putting parking
in an Employment District so it could be made a permitted use by adding a line item for public
parking in the Employment Districts.
Councilmember Addiego noted the City's ownership of the Brentwood parking lot and on how that
was a burden to the City. While he could not see a scenario where the City would be the builder of
parking structures for employment districts, the question was worth noting.
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Mayor Matsumoto also found it a point well taken because of the lack of public transportation and
access. Regarding the Brentwood lot, she found it to be an eyesore and thought perhaps metering
the lot should be looked into so the revenue could be used to make improvements. Vice Mayor
Garbarino agreed.
City Manager Futrell stated he would look into it.
With the changes requested by Councilmember Gupta, Attorney Mattas noted the item would have
to go back to the Planning Commission. He advised Council to introduce the Ordinance as
presented, adopt it and at the same time direct staff to take the further modification back to the
Planning Commission for their consideration and then back to Council.
Motion - Councilmember Gupta/Second Vice Mayor Garbarino: to waive reading and introduce an
ordinance making modifications to the Zoning Code related to commercial and public parking uses
citywide and to direct staff to take the amendment to section 20.110.002 to add public parking as a
permitted use back to the Planning Commission for consideration and then to the City Council as a
potential further amendment. Unanimously approved by roll call vote.
13. Flight Car - Conditional Use Permit and Development Agreement to allow an automobile
rental business and parking facility at 323 South Canal Street in the Mixed Industrial (MI)
Zoning District in accordance with SSFMC Chapters 19.60, 20.110, 20.460 and 20.490 and
determination that the project is categorically exempt from CEQA. (Tony Rozzi, Associate
Planner)
Public Hearing opened 9:02 p.m.
Associate Planner Tony Rozzi, summarized staff report and gave staffs recommendation to
approve the Development Agreement and the Conditional Use Permit for FlightCar. Detail about
the site location, the business model and business operations were given. General Plan and Zoning
Consistency allowed for both parking and rental uses at the location; further detail was given for
parking requirements, layout and impacts. Exterior improvements included new signing and
landscaping with updated irrigation. A slide depicting landscaping selections was shown.
Development Agreement included fee structure for the City, making the location the West Coast
Operations Hub and a "Shop South San Francisco" promotional component. Planning Commission
recommended approval at their June 19 meeting and comments from that meeting were included in
the staff report. Planner Rozzi noted that staff and FightCar representatives were available for
questions.
Mr. Greg Johnson, FlightCar Chief Operations Officer, thanked City staff across the board for all
the assistance they provided in reaching the agreement. The spirit was welcoming and left him
feeling encouraged with the relationship that was being built between the City and Flight Car.
Being no public comment, Mayor Matsumoto closed the Public Hearing at 9:11 p.m.
Councilmembers each disclosed they had met with Mr. Johnson individually to have the majority of
their questions answered. Overall Council expressed excitement and support for the new business
and thanked him for the consideration he paid towards addressing access for fire trucks.
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Councilmember Gupta asked if it was by design or omission that charging stations for electric
vehicles were not included on the site. He also expressed concern about the entrance to the site and
how it may be a little unsafe. He checked with Director McMinn and was told if mirrors were
placed it would make it safer. Lastly, he asked about the previous use of the building and if the
requirements for that company were the same the type of business FlightCar would be conducting.
Mr. Johnson responded that the exclusion of charging stations was really about expediency and
making as little modifications as possible. Over time there would be applications for modifications
submitted and adding proper charging stations was something that FlightCar definitely wanted to do
in the future.
Regarding the previous use and currently proposed use, Planner Rozzi stated that would be the
Chief Building Officer's discretion and would be handled as part of the business licensing the
application. Mr. Johnson was familiar with the process.
Mayor Matsumoto expressed concern about the potential for vehicles to be struck by some of the
large tractor trailers that use the street and she wanted to put staff on notice about the potential
issue. Clarification was sought as to the type of monitoring that would be conducted and a request
to have regular status updates calendared was made.
Planner Rozzi stated reviews would be at six and twelve months from the beginning of operation.
The review would include several things, making certain that all the conditions of approval were in
compliance; no Code Enforcement or Police or Fire calls; no queuing or traffic issues. Planner
Rozzi stated this project would be part of the weekly case load and be continuously reported on
through Friday memos.
Motion - Vice Mayor Garbarino/Second - Councilmember Addiego: to approve Resolution No. 82-
2014. Unanimously approved by roll call vote.
Motion - Councilmember Addiego/Second - Councilmember Gupta: to waive reading and introduce
an ordinance approving a Development Agreement with FlightCar. Unanimously approved by roll
call vote.
ITEMS FROM COUNCIL—COMMITTEE REPORTS AND ANNOUNCEMENTS
Councilmember Normandy reported on her attendance of the Peninsula Traffic Relief Alliance
where group safety in biking was discussed. She requested that Council recognize a local Safeway
Clerk who had assisted an individual avoid becoming the victim of a scam. Lastly, Councilmember
Normandy congratulated Hector Comacho, Jr on becoming the newest Trustee of the San Mateo
County Board of Education.
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ADJOURNMENT
Being no further business, Mayor Matsumoto adjourned the meeting at 9:28 p.m. in honor of Ira
Ruskin and Efrain Loza.
Submitted by: App eyed b
Anna M. Brown, Deputy City Clerk Kaa V atsumoto, Mayor
City of South San Francisco City of South San Francisco
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