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HomeMy WebLinkAboutMinutes 1999-09-29o MINUTES CITY COUNCIL CITY OF SOUTH SAN FRANCISCO SPECIAL MEETING SEPTEMBER 29, 1999 MUNICIPAL SERVICES BUILDING COMMUNITY ROOM 33 ARROYO DRIVE CALL TO ORDER: 6:08 p.m. (Cassette Tape No. 1) ROLL CALL: Present: Councilmembers Fernekes, Multin and Penna, Mayor Pro Tem Matsumoto* and Mayor Datzman. Absent: None *Mayor Pro Tem Matsumoto arrived at 6:15 p.m. Also Present: Staff - City Manager Wilson, City Attorney Mattas, Assistant City Manager Moss, Director of Economic and Community Development Van Duyn, Conference Center Director O'Toole, Finance Director Steele, Chief Planner Sparks, City Engineer Kianpour Conference Center Authority Members - Chair Coffelt, and Commissioners Chimenti, Rosaia, and DeTomasi Consultants - Jay Scott, Scott Hospitality Consultants; Marianne Wolfe, Vemazza Wolfe Associates, Inc.; Cliff Chambers, Crain and Associates Other presents - Angela Rae and Dan McCoy, Peninsula Congestion Relief Alliance Oral Communications: None Study Session: a) Hospitality Industry Analysis Director O'Toole introduced the consultants and Authority members and indicated that Councilmembers Fernekes and Penna are also Authority members Consultants Scott and Wolfe gave a comprehensive review of the consultant analysis entitled "Hospitality Industry Analysis Prepared for the City of South San Francisco", and reviewed its scope, objectives, recommendations, and major conclusions. Methods used to prepare the report and to develop conclusions came from existing data (lodging statistics, demographics, etc.), but a majority of information came from interviews with civic and business leaders, hotel managers and sales staff, the San Mateo County Convention and Visitors Bureau (CVB), including Palm Springs Convention and Visitors Bureau, major clients of the Conference Center and selected biotech company representatives. It was recommended that the City focus on hotel development (first class, full-service hotels), and entertainment services (cinema multi-plex, destination restaurants, and encouragement of a water transit program). Fifty to sixty percent of the hotel occupancy comes from the business traveler in comparison to San Mateo's that receives 20%. They discussed the need to focus on airport travelers, which the City will see an increase in after 2011, to nurture the biotech industry, to have first class hotels within the vicinity of the Conference Center, and the critical need for additional parking at the Conference Center. The consultants reviewed the efforts made by the CVB and measured the cost effectiveness of its membership with the bureau. They stressed that there are certain areas of how the CVB promotes South San Francisco that can not be quantified. They recommended that the City not increase it dues until results are seen. The consultants concluded their presentation by summarizing alternatives and recommended against South San Francisco from forming its own bureau, and from quitting the CVB to join the San Francisco Convention and Visitors Bureau. They suggested that the City promote its own hospitality industry, create a cash reserve to purchase land behind the Conference Center for expansion, and promote South San Francisco's proximity to SFO. Mayor Datzman opened the meeting for discussion. He asked for comments from the Conference Center Authority and for any comments made at its recent meeting. Director O'Toole stated the Authority met and discussed the Conference Center expansion. The Authority requested an RFP to study a market analysis and related components of a possible expansion be prepared. Councilman Fernekes stated that the Authority has discussed expansion, but its feasibility is unknown. He commented that a second conference center site was discussed, because the current site needs parking. He stressed that the dollar amount needs to be known before any recommendations can be made. Councilman Mullin questioned the calculations made on page 17 and suggested it needed to be looked at more closely. He questioned if the Ramada Inn was being redeveloped and staff clarified that there has been an informal discussion with a representative of the hotel, but the hotel's owners do not want to make any changes. Councilman Mullin felt a multiplex cinema would not work near the downtown area, and questioned whether other entertainment venues were looked at. He commented on the expansion of the Conference Center and agreed it needs more parking. Councilman Fernekes responded that the Authority is in agreement that parking is necessary and options are being explored. REGULAR CITY COUNCIL MEETING MINUTES SEPTEMBER 29, 1999 PAGE 2 Councilman Mullin questioned what the City receives in return for what it pays to the CVB, since there aren't any attractions in South San Francisco since Rod McLellan closed down. Mayor Pro Tem Matsumoto voiced her approval of the report and informed the Authority that Mr. Robert Simm had stated his willingness to allow TRUX's parking garage to be used by the Conference Center. She supported the City remaining a member of the CVB if a new formula is developed, but wants accountability and to see a benefit to the City. Mayor Datzman felt there were still many things needed in South San Francisco when compared to communities down the Peninsula who have first class hotels. He asked the consultants if they had any overall comments on what they saw in South San Francisco. Ms. Wolfe felt another conference center at Oyster Point was not necessary because the current one is in an ideal location. There was also a discussion on how hotels are able to package bookings in comparison to the Conference Center. Director O'Toole commented on in-house sale efforts compared to competing hotels that offer an all inclusive package. She stated that the Conference Center is able to provide the same type packaging by working with two hotels; she felt that this is something the Conference Center does everyday and does better than the hotels. Mayor Datzman felt the Conference Center's strengths were encouraging, and asked for clarification on its expansion. The consultants referred to a building to the rear of the Conference Center that could be used for both additional parking and expansion. He addressed the recommendations and stated he supported having first class hotels, but unsure if the City has any control over that. He suggested that the proposed formula be reviewed further. He supported tying the hospitality industry to the water transit and suggested that Commodore Yachts, and Red and White fleets also be included. He also supported the cinema multiplex and questioned Councilman Mullin's objection, which Councilman Mullin responded was a personal opinion. Mayor Datzman commented that CVB staff have little interaction with cities, and do not attend council meetings. He stated he was still unsure about fair share and what an estimate is. Councilman Mullin asked questions regarding the study's comments on the airport expansion and its impact on South San Francisco hospitality industry, which the consultants stated was information provided by the airport. Mayor Pro Tem Matsumoto discussed a more aggressive sales approach by the CVB since cities are developing their own formulas, but Ms. Wolfe informed Council that the CVB has been able to adjust to the unpredictable-operating budget it receives. Mayor Pro Tem Matsumoto stated that she supports a cinema multiplex because leisure travelers tend to want more affordable entertainment. Mr. Scott clarified that the CVB provides marketing efforts for business groups, but the leisure segment is captured through advertising and promotion. Councilman Penna reviewed several charts and confirmed the type of office space and market South San Francisco has, which is business not tourist. Ms. Wolfe noted that there REGULAR CITY COUNCIL MEETING MINUTES SEPTEMBER 29, 1999 PAGE 3 is good growth in the kinds of travelers South San Francisco is trying to attract. He reviewed Pg. 33's formula and discussed the cost and return. He felt South San Francisco gets very little for what it pays the CVB. Ms. Wolfe reiterated that many leads that the CVB gives can not be quantified (advertising and food/beverage income). Councilman Penna stated he was disappointed with the section entitled "Recommended Potential Alternative Measurement Tool". The consultants stated that that this was a start since the City was starting from zero. Further discussion included methods of measuring results from the CVB, involvement in order to see results, and the market need for more hotel rooms between South San Francisco and San Francisco. Mr. Scott noted that on occasion there is a spill over that South San Francisco receives from San Francisco and from Burlingame due to its proximity to the airport. (Cassette Tape No. 2) Mayor Pro Tem Matsumoto commented that South San Francisco is not a destination city, but this is something the Council is working towards. She also asked how many hotels belong to the bureau and how much does the City subsidize. In response, Director O'Toole stated that three hotels are currently full dues-paying members, and three other hotels are members at a lower rate for promotional value only. Councilman Penna noted the hotel membership was low because of the lack of response from the CVB. In response to Mayor Datzman's question regarding promoting South San Francisco and evaluating its marketing success, Mr. Scott stated you must get your name out there to the leisure market, which is not being done now. Council agreed that the report is excellent and discussed whether to distribute it to the CVB. Several Councilmembers voiced their support to have the report made available to the bureau. Mr. Scott suggested that 4% is a reasonable amount to spend on a proactive marketing effort, but it should not all go to the CVB. He suggested that there are other things to do with the money that will suit the City better. City Manager Wilson suggested that Council look at a formula that looked at net dollars instead of gross dollars, and spend the money on our own hotels. He felt a reasonable rate of return on our investment needed to be looked at, and not what is currently received, but what is expected. Councilman Mullin suggested that the City Manager's proposal be written out with specific details as a follow-up. (Recess: 7:50 - 7:55 p.m.) b. East of 101 Transity Study Ms. Angela Rae, Managing Director of Peninsula Congestion Relief Alliance, briefly discussed the project's background, which includes a study of the existing and future needs of transit for the El01 business park area. She stated that Mayor Datzman and Councilman Penna sit on the Alliance board. She introduced Dan McCoy, Director of Shuttle Programs for San Mateo County. REGULAR CITY COUNCIL MEETING MINUTES SEPTEMBER 29, 1999 PAGE 4 Mr. McCoy updated Council on the current status of the Utah/Grand and Oyster Point shuttle program that was identified a year ago as needing professional management (Genentech is a successful third shuttle system). He detailed how the shuttle service has expanded with an increase in the number of employers financially supporting the program, and an increase in grant funding, ridership and service hours. Mr. Chambers stated he was commissioned to look at improving the shuttle service East of 101, consolidating hotel shuttle services, BART's impact on the shuttle service, and changes in growth patterns. He reviewed his study, "South San Francisco East of 101 Transit Development Business Plan" with an oral and visual presentation, and noted the key challenges. He concluded by raising two key issues for discussion regarding district funding being available in the future, and to what degree will the City sponsor or subsidize these lower demand markets. Mayor Datzman opened the meeting for discussion. Councilman Mullin's questions included a discussion of the ferry service shuttle costs, consolidating hotel shuttles (it was noted that Los Angeles and Denver currently have a consolidated service), and the Airport's intention to charge loop fees. The cost of the shuttle service is $2.00 per passenger per year (dollar figure was corrected under discussion with Councilman Penna); there is an average of 802 passengers per day. Councilman Fernekes suggested that the Tanforan BART station be considered as a shuttle pick up site rather than the Hickey Boulevard station. Ms. Rae stated that many riders prefer the Glen Park station because it will cost passengers more to ride BART down the Peninsula. Councilman Penna discussed SamTrans' lack of providing service in the E 101 area, and Mr. McCoy stated that they currently provide grant funding to the shuttle service program. He also questioned how other cities were able to get their hotels to consolidate airport shuttle service, and Mr. Chambers agreed to find out. Ms. Rae mentioned that the cost per rider/per year is $2.00. Councilman Penna wanted to know the amount of ridership during the lunch hour, and Assistant City Manager Moss indicated that Genentech no longer provides the service because it became too expensive. Mayor Pro Tem Matsumoto further addressed consolidating the airport shuttle service, with the number of trips to the airport being controlled. She also commented that the proposed service kiosks will be subject to vandalism. Mayor Datzman questioned the status of the current shuttle service program in comparison to others and Mr. McCoy stated that it is doing much better than others. Mayor Datzman stated that concerns regarding water transit being expensive is often implied, but it is a viable alternative to being caught in congested traffic on the San Mateo Bridge. In response to how the hotel shuttle consolidation study was conducted, Mr. Chambers stated he spoke with hotel managers. Mayor Datzman stressed it is important to talk to the right people at the hotels, and informed Mr. Chambers that a meeting is scheduled for October 21, at the Conference Center to discuss the shuttle service plan with hntel representatives REGULAR CITY COUNCIL MEETING SEPTEMBER 29, 1999 MINUTES PAGE 5 Having no further questions Mayor Datzman concluded the study session. ADJOURNMENT Motion-Penna/Second-Fernekes: To adjourn the meeting at 9:10 p.m. Unanimously approved by voice vote. Respectfully Submitted: Approved: Sylvia M. Payne, ({jlty Clerk City of South San Francisco The entries of this Council meeting show the action taken by the City Council to dispose of an item. Oral communications, arguments, and comments are recorded on tape. The tape and documents related to the items are on file in the Office of the City Clerk and are available for inspection, review and copying. REGULAR CITY COUNCIL MEETING MINUTES SEPTEMBER 29, 1999 PAGE 6