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HomeMy WebLinkAboutMinutes 2016-11-30 @6:01 MINUTES SPECIAL MEETING °taIN CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO cgoR�y1� P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, California 94083 Meeting to be held at: MUNICIPAL SERVICES BUILDING Council Chambers 33 ARROYO DRIVE SOUTH SAN FRANCISCO, CA WEDNESDAY, NOVEMBER 30, 2016 6:01 P.M. 1. Call to Order. TIME: 6:05 p.m. 2. Roll Call. All present. Recess: 6:05 p.m. Meeting Resumed: 6:10 p.m. 3. Agenda Review. No Changes. At the request of Councilwoman Matsumoto South San Francisco High School Student, Russell Lee led the Pledge of Allegiance. 4. Public Comments. At the request of Mayor Addiego, Chief of Police Azzopardi provided an update on the condition of Officer Robby Chon, who was assaulted in the line of duty on Thanksgiving Day while responding to a call on Grand Avenue. While Officer Chon had a long road to recovery ahead, his condition had been downgraded from critical to stable. He had been speaking, getting up and moving around. His family and the Police Department were deeply appreciative of the outpouring of support. Officer Chon is a fighter and indicated that he looks forward to coming back to work. Councilmembers commented on their visits with Officer Chon at the hospital and were moved by his determination, the strength of his family and the round-the-clock commitment of his fellow officers to stay by his side at the hospital during their off hours. The Department exemplified what a team should be. Council also commented on the thoughtfulness of the Vigil organized by resident Kamala Silva Wolfe in Officer Chon's honor. STUDY SESSION 1. Oyster Point Study Session. (Mike Futrell, City Manager and Marian Lee, Assistant City Manager) City Manager Futrell introduced the staff report. He advised that staff sought Council's guidance on: 1) Council's vision for the portion of the Oyster Point Marina (Marina) that remains under the City's control; and 2) the Harbor District Joint Powers Agreement (JPA). City Manager Futrell noted that in August 2016 a Special City Council Meeting for study session regarding the private/public 80+ acre development program at Oyster Point occurred. The focus of the study session was to review detailed information regarding the commitments of the City of South San Francisco (City), Successor Agency(Agency), San Mateo County Harbor District (District) and Oyster Point Development (OPD). OPD desires to break ground next year. City Manager Futrell invited Assistant City Manager Lee to lead Council through the discussion. Assistant City Manager Lee advised that the first portion of the discussion would focus on the relationship between the City and the District. The second portion would serve as a visioning exercise for the City controlled portion of the Marina. This latter half of the program would include a presentation by SWA a landscape architecture consulting firm that had been engaged to assist with the visioning exercise. Before proceeding, Assistant Lee introduced key stakeholders present in the Council Chambers including, General Manager, Steve McGrath and Director of Operations, John Moren from the Harbor District. From Greenland, Clara Tang and Ruby Huang were present. Director of Entitlements and Development, Steve Shanks and Managing Partner Paul Stein from SKS were in attendance. Principal Elizabeth Shreeve and Daniel Cunningham from SWA were present. Finally, from the Hotel division of CBRE, Chris Krause was in the audience. Assistant Lee opened the discussion on the Harbor District JPA by providing a brief history of the agreement. The City entered into a JPA with the District in 1977. Under the JPA, the District is responsible for"management, maintenance and operation" of the Marina in return for keeping the revenues from the Marina, including berth rentals and any lease revenue from renting land to concessionaires. The term of the JPA expires in November 2026. Under the terms of the JPA, if the District is dissolved prior to the expiration, the obligation to operate the Marina and park would revert to the City. As the OPD Development moves forward this spring, a land swap will occur pursuant to a previously approved 2011 agreement. A portion of land the City currently owns will go to OPD. This land will no longer be covered by the JPA. This will release $30 million currently in escrow and the OPD Development can begin. At the time of the 2011 agreement, it was contemplated that 28 months from its effective date the City, Redevelopment Agency and the District would renegotiate the JPA. With the dissolution of the Redevelopment Agency shortly thereafter, this renegotiation did not occur. It is clear that the current JPA will not suffice for the next ten (10) years. For this reason, staff followed Council's September 2015 direction to pursue a working relationship with the District aimed at renegotiating the JPA. The Harbor District Liaison Standing Committee of the City Council and staff has worked with the District over the past year to explore options. Staff believes the District has improved operations such that its budgeting is more transparent and easier to understand. It is clear from the current reporting that the Marina loses money as presently constructed. Staff hired Anchor SPECIAL CITY COUNCIL MEETING NOVEMBER 30,2016 MINUTES PAGE 2 QEA, a marina consultant to provide a review of how the Marina could be made more profitable. The short answer from Anchor QEA is that an investment in appropriate capital improvements could yield a substantial profit. This would be important to understand moving forward. Nevertheless, City staff does not recommend operating the Marina as this would not be wise from a cost perspective. Indeed partnering with another agency that has marina expertise is the most efficient option. Accordingly staff met with the City of Brisbane,but it was not interested in a partnership to operate the Marina. Staff believes the most viable option to be the City's operation of the land side and the District's operation of the Marina side. If Council opts to pursue this route, then it could charge the Harbor District Liaison standing Committee of the City Council to work with the District to determine whether a renegotiated JPA is possible. Assistant Lee closed this portion of the presentation by requesting Council's direction as to how it sees the relationship with the District moving forward and articulation of preferred next steps. Councilwoman Matsumoto queried the OPD Greenland relationship. Assistant Lee responded that Greenland is the majority owner of OPD. Mayor Addiego echoed the City Manager's comments regarding the positive working relationship with the District. He noted that from the City's perspective, the relationship is much healthier and the conversations at the Standing Committee level have been productive. He was very optimistic that this progress would continue. Councilman Garbarino expressed interest in operating the land,but not the Marina. He felt operation of the Marina was better left to the District as it had expertise in this area. He believed in moving forward in a positive way to explore the best possible development options. Vice Mayor Gupta queried the District's CIP investment over the next few years. Assistant Lee advised that the District's CIP budget envisions replacement of docks 12, 13 and 14. This is consistent with the capital investment survey performed by the City's consultant. However, this improvement represents about 1/3 of what is required to make the Marina profitable. The City's consultant believes a 10 year CIP Program is necessary to bring the Marina to profitability. Vice Mayor Gupta next questioned whether the City would have to go to the District for approval on development of the land. Assistant Lee advised that under the current JPA, the City would have to seek District approval on land development. Vice Mayor Gupta opined that renegotiating the JPA on this point was critical. He further stated that he believed of the option of doing nothing for 10 years so that the JPA could expire was extreme. SPECIAL CITY COUNCIL MEETING NOVEMBER 30,2016 MINUTES PAGE 3 Councilwoman Matsumoto believed it necessary to modify the JPA, however she had reservations about the District's operations. She believed infrastructure improvements for both Oyster Point and Pillar Point lagged. Further despite significant spending on these properties by the District, both still operated at a loss. She further noted inordinate expenses directed at personal lawsuits and Public Records Act requests as opposed to management of the Harbor District. She believed any renegotiation of the JPA must focus on or include benchmarks for turning a profit. City Manager Futrell advised he believed the Marina could turn a profit if properly planned. Part of staff's task would be to work with District staff to make sure this happens. The Consultant's report relative to capital improvements indicates much work is needed, including upgrading of slips and the necessary dredging. He noted his faith in the District had improved over the last year and he believed it would be a good partner in this regard. Mayor Addiego commented that it would be difficult to wordsmith section 5 of the JPA. He noted he would enter negotiations in good faith, but ultimately an amicable release or renegotiation would be essential to any partnership moving forward. City Manager Futrell confirmed with Council that the direction was to proceed with discussions with the District for the purpose of renegotiating the JPA such that the City would operate the land and the District would operate the Marina. Staff for both the City and the District would arrange for a meeting of the Standing Committee in late January after committee appointments had been revisited. Assistant Lee introduced the next portion of the presentation which focused on visioning for the City owned portion of the land. She presented a slide depicting the current Precise Plan including the open space and proposed hotel site on the land. She then introduced Elizabeth Shreeve from the landscape architect firm SWA. Ms. Shreeve provided a PowerPoint presentation including visual examples intended to promote discussion of the Council's vision for programming of the area. The slides depicted several case study locations including variations on hotel, retail, commercial office and open space tied to marina locations. Councilman Garbarino observed any ideas for open space recreation would be limited by the weather conditions at Oyster Point. Councilwoman Normandy observed that some of the case studies included features that she believed were unrealistic for Oyster Point, including an open space amphitheater. Any park installed would need to be scaled to the location. Mayor Addiego commented that the views at Oyster Point are one of its greatest features. He observed the tip of the point offers the most spectacular views. He thought a park might be better placed at that location as opposed to office and commercial. Staff advised that the open space parcel presently depicted as part of the Precise Plan was committed by the Development Agreement (DA) approved in 2011. Councilwoman Matsumoto queried the definition of"Open Space" included in the DA. SPECIAL CITY COUNCIL MEETING NOVEMBER 30,2016 MINUTES PAGE 4 Assistant City Attorney Mattas advised the open space concept was to be designed by the City as development moved forward. The DA included a cost allocation for the land area that was designated as Open Space. Councilwoman Normandy commented on the importance of preserving some of the uses presently at the site, including those currently housed at Drake's Marina. She hoped any open space use would not be to the detriment of these functions. Mayor Addiego suggested that at some point in the very near future the Council should convene a special meeting for the purpose of walking the site to experience how the open space concept might be best utilized. City Manager Futrell agreed. Ms. Shreeve next focused on possible hotel related concepts particularly focusing on building type. Several slides showing areas including differently scaled options were depicted. She focused particularly on the Oceana Hotel in Half Moon Bay on the smaller side and the Omni Hotel in San Diego which represented the higher end of the scale. Mayor Addiego commented on the importance of making sure the hotel site maximizes use of the views. Councilman Gupta commented on his hope that a convention center concept would be incorporated in plans for the area. Councilwoman Matsumoto opined that a convention center would not work in the area. She believed issues of density and competition with other local facilities would cause it to fail. Councilmembers Garbarino and Normandy commented that finding some sort of balance including a hotel that might accommodate smaller meeting space options might suit the area given its proximity to local Biotech companies. Mayor Addiego invited Chris Krause of CBRE's hotel division to weigh in on the idea of a convention or conference center. Mr. Krause addressed Council and advised that while he did not foresee a full-fledged conference center having success in the area, he believed that any hotel concept should include significant meeting and event space capable of accommodating the needs of corporate clients during the week and social events on the weekends. He added that he believed meeting space would be critical to the success of any appropriately sized hotel placed on the site. Ms. Shreeve next presented the concept of waterfront retail as this type of programming was permitted under the zoning code. She presented a variety of case studies depicting various examples of retail configurations along waterfronts. SPECIAL CITY COUNCIL MEETING NOVEMBER 30,2016 MINUTES PAGE 5 Councilwoman Matsumoto commented that she appreciated the industrial look of a building depicted in a slide showing a marina area in Sausalito. At the close of Ms. Shreeve's presentation, Assistant Manager Lee requested Council direction to issue a request for quotes (RFQ) on the hotel. Prior to Council discussion on this subject, Mayor Addiego invited Harbor District Commissioner Hon. Sabrina Brennan to the podium as she had submitted a public comment card. Commissioner Brennan stated appreciation for the positive comments regarding the District. She stated that the District had worked to make improvements. She believed there was a good working relationship between City and District staff. Further, as a member of the Standing Committee, she believed elected officials from both the District and the City were working together well. Commissioner Brennan noted that she had hoped that the evening's discussion would have included more information about plans for how to mitigate sea level rise and address recapping of land fill. She stated support for the concept of a hotel and meeting space that might fit-in nicely given proximity to the Ferry Terminal and SFO. She closed by noting she saw development of the Marina as a tremendous opportunity and believed things were moving in the right direction. Mayor Addiego thanked Commissioner Brennan for her comments and turned the discussion back over to Council to focus on the direction requested by staff. Councilwoman Normandy expressed concern over pursuit of a wind study. Assistant Lee explained that the study was perhaps best retitled as a way to determine recreational uses appropriate for the conditions in the area. Councilwoman Matsumoto stated she supported development of the area,but was not prepared to provide direction to issue a hotel RFQ. She believed too many issues to be outstanding, including the possibility of housing and increased density in the area. She was concerned that infrastructure issues could arise if the area was not more thoroughly planned before moving forward with a hotel. Mayor Addiego stated support for moving forward with the hotel RFQ. City Manager Futrell stated that the responses to the RFQ would be reviewed through a lens reflective of Council's concerns. He was hopeful that the proposals would fit with Council's vision for Oyster Point. Councilwoman Matsumoto queried the time frame on the OPD development. City Manager Futrell advised that under the DA, OPD hoped to break ground around August 2017. At that time the current hotel would be torn down, Drake's Marina would be removed and the land fill would be peeled back and a replacement cap installed. In addition, sea level rise work would begin. Further, road work and basic infrastructure improvements to prepare for the next phases would begin. All of that anticipates a roughly two (2) year process from today. SPECIAL CITY COUNCIL MEETING NOVEMBER 30,2016 MINUTES PAGE 6 Councilwoman Matsumoto stated the need for a short term and long term strategic plan for the area. Councilwoman Normandy cautioned that the City needed to be careful about the densities placed in the area. She stated her preference for the placement of two (2)boutique hotels with banquet space to accommodate roughly 150 people. Councilman Garbarino stated support for moving forward with the RFQ for the hotel. Vice Mayor Gupta stated support for the hotel RFQ as he believed it to be more akin to an idea generating concept. The market reaction to the request would be instructive as to what might be possible for the area. City Manager Futrell thanked Council for the direction noting that staff would move forward with the hotel RFQ on this basis. Meeting recessed: 8:11 p.m. Meeting resumed: 8:22 p.m. CONSENT CALENDAR 2. Report regarding a motion to accept the Grand Avenue and Magnolia Avenue Traffic Signal and Pedestrian Improvements Project with total construction cost of$430,107 as complete in accordance with the plans and specifications. (Lawrence Henriquez, Associate Civil Engineer). 3. Report regarding a resolution rejecting the only bid for the HVAC Improvements at Main Library& Magnolia Center Projects and authorize staff to rebid the project. (Robert Hahn, Senior Civil Engineer). 3a. Resolution 136-2016 rejecting all bids for the HVAC Improvements at the Main Library&Magnolia Center project. 4. Report regarding a resolution authorizing the City Manager to execute Program Supplemental Agreement No. 078 with the State of California for the Systematic Safety Analysis Report Program in the amount of$99,000. (Sam Bautista, Principal Engineer) 4a. Resolution No. 137-2016 authorizing the City Manager to execute Program Supplemental Agreement No. 078 with the State of California for the Systematic Safety Analysis Report Program in the amount of$99,000. 5. Report regarding a resolution modifying Appendix 1 A of the City Council Handbook pertaining to the Annual Reorganization of the City Council. (Krista Martinelli, City Clerk and Jason Rosenberg, City Attorney). 5a. Resolution No. 138-2016 modifying Appendix lA of the City Council Handbook pertaining to the Annual Reorganization of the City Council. SPECIAL CITY COUNCIL MEETING NOVEMBER 30,2016 MINUTES PAGE 7 The City Clerk duly read the Consent Calendar, after which Council discussed the following items: Item No. 2: Councilwoman Matsumoto commented that she would like to see consistency in the striping at intersections. She further commented on the confusing nature of different brick work at different intersections. Interim Director of Public Works Towne advised that pursuant to the Vehicle Code, the striping around intersections at schools is to be painted yellow to signify the existence of a school zone. Councilmembers requested that Interim Director Towne review the traffic calming measures around Los Cerritos Elementary School. Due to its proximity to South San Francisco High School, traffic related to Los Cerritos Elementary backs up onto El Camino Real. Further, traffic conditions around the school do not seem safe. Item No. 4: Councilmembers requested that the information regarding streets identified in the report, including Spruce Avenue, West Orange and the Hillside and Chestnut Corridors be clarified. For example, were the streets being reviewed end to end or in segments? Interim Director of Public Works Towne agreed to gather this information and provide it to Council. Motion—Councilman Garbarino/Second—Vice Mayor Gupta: to approve Consent Calendar Items Nos. 2-4. Unanimously approved by roll call vote. Item No 5: Councilwoman Matsumoto stated she had a different interpretation of the proposed Reorganization spending limit for elected officials than was reflected in the proposed Appendix 1A. She preferred that the spending limit be capped at $200 per elected official and that the City Clerk and City Treasurer only participate in cost sharing in their election years. She further believed the spending limit on the Mayor's gift did not need to be addressed in the Appendix. Councilmembers agreed with this direction. Mayor Addiego queried whether Council had been this specific on the Reorganization topic in past iterations of the Council Handbook. Councilwoman Normandy advised that she had requested that the procedures in the Council Handbook be clarified so that better defined protocols and guidelines were available to Councilmembers and elected officials would not be surprised by charges associated with the Reorganization. Mayor Addiego stated that while it was helpful to have the guidance of the procedures set forth in the Council Handbook, if at any time, three (3) Councilmembers disagreed with its text, the policy would not control. For example, while the proposed Mayoral rotation was helpful, it could be overruled by a vote of three (3)members of the Council at the meeting for Reorganization. Further, he did not want to see the location of the Reorganization fixed at the Municipal Services SPECIAL CITY COUNCIL MEETING NOVEMBER 30,2016 MINUTES PAGE 8 Building (MSB). He believed that over the years, Council and staff had been flexible with respect to the location to accommodate the times. For example, in tight economic times, the meeting was moved to the MSB. In years of significant election participation, the event was held at the Conference Center to better accommodate the crowd and provide the needed parking. Councilman Garbarino agreed that more flexibility would be better. Councilmembers agreed to strike the reference to the MSB as the location of the Reorganization event. Motion—Councilman Garbarino/Second—Vice Mayor Gupta: to approve Consent Calendar Item No. 5 modified so that the cost to City elected officials was not to exceed $200 and that the City Clerk and City Treasurer only participate in cost sharing in their election years; and to delete the following: 1) The reference to the Reorganization being held at the Social Hall of the Municipal Services Building; and 2) The $50 limit on the Mayor's gift. Unanimously approved by roll call vote. In response to a question from the Italian American Citizens' Club, Councilwoman Matsumoto queried whether the Mayor would present the Proclamation at the organization's annual dinner on December 4, 2016. Since the Mayor could not attend, Councilwoman Matsumoto would present the Proclamation. Mayor Addiego requested that the meeting be adjourned in honor of Mary Shihadeh, George Garibaldi and Albert Martin. Councilwoman Matsumoto requested that the meeting be adjourned in honor of Marion Bordi. Councilman Garbarino requested that the meeting be adjourned in honor of Raymond Ming, Robert Eserini, Jr. and William "Bill" Medeghini. ADJOURNMENT Being no further business the meeting was adjourned at 8:45 p.m. in honor of Mary Shihadeh, George Garibaldi, Raymond Ming, Robert Eserini, Jr., Marion Bordi, William "Bill" Medeghini and Albert Martin. ,Sub • by: ' Approved by: ' -Pori Krista M. li, City Clerk Pradeep Gupta, Mayor City of Sout San Francisco City of South San Francisco SPECIAL CITY COUNCIL MEETING NOVEMBER 30,2016 MINUTES PAGE 9