HomeMy WebLinkAboutMinutes 2017-09-06 @7:00 MINUTE S
SPECIAL MEETING
Jam-y0
Ro��� CITY COUNCIL
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:
MUNICIPAL SERVICES BUILDING
COUNCIL CHAMBERS
33 ARROYO DRIVE
SOUTH SAN FRANCISCO, CA
WEDNESDAY, SEPTEMBER 6, 2017
7:00 p.m.
CALL TO ORDER TIME: 7:45 p.m.
ROLL CALL PRESENT: Councilmember Addiego, Garbarino,
Matsumoto, Vice Mayor Normandy and Mayor
Gupta.
ABSENT: None.
AGENDA REVIEW
None.
PUBLIC COMMENTS
None.
ADMINISTRATIVE BUSINESS
1. Report regarding Resolution No. 115-2017 approving the Implementation Agreement with
the San Mateo County Harbor District related to the 2011 Memorandum of Understanding
approved by the Harbor District, City of South San Francisco and South San Francisco
Redevelopment Agency and approving a budget amendment adding$125,000 to the City
Manager's Fiscal Year 2017-2018 Operating Budget. (Mike Futrell, City Manager and
Steve Mattas, Assistant City Attorney)
1 a.Resolution No. 115-2017 approving the Implementation Agreement between the City of South
San Francisco and the San Mateo County Harbor District related to the 2011 Memorandum of
Understanding approved by the Harbor District, City of South San Francisco and South San
Francisco Redevelopment Agency and approving Budget Amendment 18.005 to increase the City
Manager's Fiscal Year 2017-2018 Operating Budget by$125,000.
Assistant City Attorney Mattas presented the staff report recommending that the City Council adopt a
resolution approving the Implementation Agreement between the San Mateo County Harbor District and
the City and approving a budget amendment adding $125,000 to the City Manager's Fiscal year 2017-
2018 Operating Budget. Attorney Mattas advised the City entered a Joint Powers Agreement(JPA)with
the Harbor District in 1977 regarding the management, maintenance and operation of the Oyster Point
Marina and Park(Oyster Point). The JPA has a 49-year term and will expire on November 11,2026. In
March 2011,the City and the former Redevelopment Agency of the City of South San Francisco(RDA)
entered into a Development Agreement (DA) and Disposition and Development Agreement (DDA),
respectively,with Oyster Point Ventures, LLC(OPV)to form a public/private partnership to redevelop
certain land on Oyster Point,including over 40 acres of city-owned land managed by the Harbor District
under the JPA. The fully approved project did not immediately move forward. In 2016, OPV sold its
interest to a new development group,Oyster Point Development,LLC(OPD).The Council approved this
transfer and associated leases in 2016, and the District approved the transfer on June 29, 2016. The
DA/DDA commits OPD to implement Phase I,consisting of construction of office space with associated
infrastructure,and to make extensive public infrastructure improvements on property within and adjacent
to the City-owned property covered by the JPA.The Developer is planning to start construction of Phase I
in October 2017.Phase II work would take place on another portion of City-owned land managed by the
District. This would include a new pump station,repairs to the landfill clay cap,improved parking areas
and landscaping.The cost of the improvements for this work is borne mostly by the Successor Agency to
the Redevelopment Agency,although the Developer will perform some of the work and contribute funds
towards the new pump station associated with the future development of a hotel. The proposed
Implementation Agreement between the City and the District would ensure that the 2011 MOU and the
proposed Oyster Point Development is implemented.Attorney Mattas advised the City would reimburse
the District up to $35,000 for expenses related to preparation of the agreement. The City would also
reimburse the District for immediate and necessary repairs to the fuel dock in the amount of$90,000 but
those funds are planned to be reimbursed to the City from OPD,subject to OPD receiving a credit for that
payment against future community facilities district payments. Attorney Mattas concluded by stating that
Staff recommends that the City Council approve Budget Adjustment 18.005, appropriating $125,000
within the General Fund and amending the City's Manager' Fiscal Year 2017-18 Operating Budget.The
funding source would be FY 2017-18 General Fund Operating Surplus;the net impact of which will be
$35,000, as $90,000 will be reimbursed by Oyster Point Development, LLC.
Councilman Addiego noted extensive previous discussion related to the fuel dock.
Attorney Mattas noted that the City would allow the District fueling suppliers and contractors access to
City roads and parking lots in order to continue maintaining and operating the fuel lines and facilities.
Councilwoman Matsumoto queried whether eminent domain might be included in implementation of
ultimate plans for the area, including a community facilities district(CFD).
Attorney Mattas advised eminent domain would not be involved. The CFD would be based on a vote of
the property owners.
SPECIAL CITY COUNCIL MEETING SEPTEMBER 6,2017
MINUTES PAGE 2
Councilwoman Matsumoto queried who owned the business operating the fuel station and what would
occur upon signing of the implementation agreement.
City Attorney Mattas advised that a subtenant of OPD was operating the dock.Once the implementation
agreement is signed,the District would take over operation and replacement activity would happen over
the next five(5)years or so. The District already collects revenue off of the property out at the Marina.
CFD funds would pay for replacement.
Councilman Garbarino queried funding of the obligation to replace the fuel line.
Attorney Mattas advised no General Fund money would go into replacement and it would be replaced
exclusively with money from the CFD upon formation. The District had advised staff that maintaining
the fuel system is important to voters.
Vice Mayor Normandy stated that on the advice of Counsel she would not be partaking in this vote or the
vote on Item No. 2, due to potential conflicts with her position as South San Francisco Chamber of
Commerce CEO.While it was currently uncertain whether an actual conflict existed,formal advice was
being sought in reference to OPD,since the entity is a Chairman's Circle Level Member of the Chamber.
Accordingly, she would be abstaining from this vote and the next vote on Item No. 2.
Councilman Garbarino queried whether the need to replace the existing fuel line system was driven by a
business or safety issue.
Attorney Mattas advised the need for replacement was primarily based on the age of the system. It did
not have the current technological improvements to make it compliant for the future as was reflected in
the anchor report.
John Ullom addressed Council and stated that City staff was less than forthcoming with respect to the
safety issue related to the fuel dock. He believed there to be a high level of danger associated with the
potential for electrocution. He stated that the electrical circuits associated with the station dip into the
water. He believed this electrical issue to be known by staff and was subject to discussion. The station
was way out of compliance and the cost to mitigate dangers would be higher than the proposed$90,000
replacement funding. He believed that nobody wanted to acknowledge the severity of the situation. He
stated that OPD should be held to account for the agreement and that it had not followed through and kept
its promise to the Council's constituents.Mr.Ullom closed by requesting that Council take his comments
into consideration when making its decision.
Motion=Councilman Addiego/Second—Councilman Garbarino:to approve Resolution No. 115-2017.
Approved by the following roll call vote: AYES: Councilmembers Matsumoto,Addiego,Garbarino and
Mayor Gupta; NAYS: none; ABSENT: none; ABSTAIN: Vice Mayor Normandy.
2. Report regarding Resolution No. 116-2017 approving a Subdivision Improvement Agreement
between the City of South San Francisco and Oyster Point Development,LLC related to the Phase
IC Improvements and authorizing the City Manager to execute the agreement. (Eunejune Kim,
Director of Public Works/City Engineer)
2a.Resolution No. 116-2017 approving the subdivision improvement agreement between the City
SPECIAL CITY COUNCIL MEETING SEPTEMBER 6,2017
MINUTES PAGE 3
of South San Francisco and Oyster Point Development,LLC in connection with Parcel Map No.
17-0002 (Oyster Point) and authorizing the City Manager to execute the agreement.
Director of Public Works and City Engineer Kim presented the staff report recommending that the
Council adopt a resolution approving a Subdivision Improvement Agreement between the City of South
San Francisco and Oyster Point Development,LLC related to the Phase IC Improvements and authorizing
the City Manager to execute the Agreement.He explained that per the DDA,the Developer has prepared
a Tentative Parcel Map to re-parcelize the property to allow separate parcels for each of the office/R&D
phases,the open space areas,the hotel parcel and the reconfigured roadways. The Tentative Parcel Map
has been reviewed by the City's Engineering Division and been found to comply with the provisions of
the Subdivision Ordinance. The Subdivision Improvement Agreement will ensure the Phase IC
Improvements including a new roadway and vehicle and pedestrian improvements will be completed per
City approved plans and specification.
Motion—Councilman Garbarino/Second—Councilman Addiego:to approve Resolution No. 116-2016.
Approved by the following roll call vote: AYES:Councilmembers Matsumoto,Addiego,Garbarino and
Mayor Gupta;NAYS: none; ABSENT: none; ABSTAIN: Vice Mayor Normandy.
PUBLIC HEARING
3. Report regarding Resolution No. 117-2017 amending the FY 2017-18 Master Fee Schedule.
(Richard Lee, Director of Finance)
3a. Resolution No. 117-2017 amending the FY 2017-18 Master Fee Schedule.
Director of Finance Lee presented the staff report recommending that Council approve a resolution
amending the Fiscal Year 2017-18 Master Fee Schedule. He advised that staff discovered various
clarifications and additions to the Master Fee Schedule,resulting in 11 proposed amendments.He advised
that five(5)of the proposed amendments are fees that were inadvertently removed,five(5)are language
clarifications, and one (1) is a fee that was missing a time increment, which was calculated to have no
cost.Director Lee confirmed that the additional fees were in compliance with Proposition 218,as the fee
is less than or equal to the cost to provide the service.
Public Hearing Opened: 8:11 p.m.
Public Hearing closed: 8:11 p.m.
Motion—Vice Mayor Normandy/Second—Councilman Garbarino:to approve Resolution No. 117-2017.
Unanimously approved by roll call vote.
4. Report regarding public hearing on the Community Development Block Grant 16-17 Consolidated
Annual Performance and Evaluation Report;the Assessment of Fair Housing Study and the City's
Citizen Participation Plan;and resolution authorizing the submittals.(Alex Greenwood,Economic
and Community Development Director)
4a.Resolution No 118-2017 approving the 2016-2017 Consolidated Annual Performance and
Evaluation Report and the Citizen Participation Plan for the Community Development Block Grant
SPECIAL CITY COUNCIL MEETING SEPTEMBER 6,2017
MINUTES PAGE 4
Program,and authorizing its submittal to the U.S.Department of Housing and Urban Development.
Economic Development and Housing Manager Poncel presented the staff report recommending that
Council hold a Public Hearing and adopt a Resolution approving the 2016-2017 Consolidated Annual
Performance and Evaluation Report (CAPER) and the Citizen Participation Plan for the Community
Development Block Grant Program,and authorizing its submittal to the U.S.Department of Housing and
Urban Development (HUD). Regarding the CAPER, in FY 2016-17 the City expended a total of
$730,629 in CDBG funding and$11,437 in HOME administrative funding received from the San Mateo
County HOME Consortium. This year 801 individuals were served through the City's public service
programs which provided dental services, clothing, shelter, foster youth services and rape trauma
services.There were 37 households that were served through the City's housing rehabilitation programs
through organizations like Rebuilding Together,El Concillo,and Center for Independence.Additionally,
two (2) public improvement projects were implemented in areas of need. These projects included the
resurfacing of Brentwood Park Playground and updating intersections to make them ADA compliant.A
total of 186 ADA ramps were installed throughout the City.
Regarding the City's Affordable and Fair Housing Study and Participation Plan,she advised it was a new
process established by HUD. Pursuant to the CDBG regulations,the City must provide a 30-day public
comment period and a public hearing on the draft AFH report. The draft AFH report has been made
available for public review on the respective websites of the San Mateo County Housing Authority and
South San Francisco Economic & Community Development Department and offices since August 7,
2017,and a public notice was published on August 7,2017.Any comments received during the comment
period or at the public hearing will be incorporated into the Final AFH.
Manager Poncel closed by recommending that Council hear public comments on the CAPER CPP and
AFH program and approve the 2016-2017 CAPER and the CPP for the Community Development Block
Grant Program, and authorize its submittal to HUD.
Public Hearing opened: 8:21 p.m.
Public Hearing closed 8:21 p.m.
Vice Mayor Normandy thanked Mayor Gupta for keeping her appointment on this Standing Committee
and for serving on it with her.
Councilwoman Matsumoto queried the demographics of the Safe Harbor Shelter. She specifically noted
that funds could go further to help the African American demographic, which made up only 2.4 % of
those helped. She suggested the City could accomplish better outreach to this demographic.
She further noted that when the total Asian population is considered,not as many Asian households were
being helped. She suggested outreach to this segment of the population using calligraphy.
Finally, she requested follow-up information as to how many total South San Francisco residents were
helped by Safe Harbor.
Mayor Gupta commented on the current state of housing discrimination in the City.He opined that HUD
should be aware of it and Council should focus on addressing the situation.
SPECIAL CITY COUNCIL MEETING SEPTEMBER 6,2017
MINUTES PAGE 5
Motion—Vice Mayor Normandy/Second—Councilman Garbarino:to approve Resolution No. 118-2017.
Unanimously approved by roll call vote.
5. Report regarding a Development Agreement, Purchase and Sale Agreement, and Affordable
Housing Agreement with ROEM Development Corporation for the disposition and development of
City-owned parcel at 418 Linden Avenue(APN 012-314-010),and 201-219 Grand Avenue(APNs
012-316-110, 012-316-100, 012-316-090 and 012-316-080), for $1,700,000 collectively, and
approving Budget Amendment 18.003. (Julie Barnard, Economic Development Coordinator)
5a.Ordinance approving a Development Agreement between ROEM Development Corporation
and the City of South San Francisco for the development of the properties located at 418 Linden
Avenue and 201-219 Grand Avenue.
5b.Resolution No. 119-2017 approving a Purchase and Sale and Affordable Housing Agreement
with ROEM Development Corporation, for the disposition of City-owned parcel at 418 Linden
Avenue, (APN 012-314-010), and 201-219 Grand Avenue (APNs 012-316-110, 012-316-100,
012-316-090 and 012-316-080) for$1,700,000.
Community Development Manager Barnard presented the staff report recommending that Council: 1)
introduce an Ordinance approving a Development Agreement between ROEM Development
Corporation and the City of South San Francisco for the development of the properties located at 418
Linden Avenue and 201-219 Grand Avenue, and waive further reading; and 2) adopt a resolution
approving a Purchase and Sale Agreement and Affordable Housing Agreement
between the City of South San Francisco and ROEM Development Corporation for the sale of the
City-owned parcels at 418 Linden Avenue and 201-219 Grand Avenue, and authorizing the City
Manager to execute the Agreements. Manager Barnard advised that the City approved the Grand and
Linden Project in December 2015, including a Disposition and Development Agreement(DDA)with
Brookwood Equities, LLC. Brookwood was unable to advance the project. Accordingly, the City
Council and Successor Agency terminated the DDA. After termination,the City retained the project
entitlements, which allowed the City to solicit a new developer with the entitled development. Staff
conducted an extensive Request for Proposals (RFP)process and selected ROEM Development
Corporation(ROEM). On January 23, 2017,the Oversight Board approved the Agency's
recommendation to select ROEM for the 201 Grand site. The City then entered an ENRA with
ROEM to establish procedures and standards for the negotiation between the City and ROEM in
order to reach a Purchase and Sale Agreement.
On June 21, 2017, ROEM informed the City that it had recently received new construction bids that
showed that the Project was facing a$5.8 million shortfall. The City and ROEM negotiated, and as a
result the Linden Land price was reduced by$500,000. The City agreed to contribute up to $3.5
million in City Affordable Housing Funds and work with ROEM to seek other non-City funding
sources, including funding from HEART of San Mateo, and San Mateo County Measure K funds.
ROEM agreed to reduce its ROC from 6.0%to 5.75% and identified cost reductions of approximately
$1 million dollar through measures that do not impact exterior design. Finally, an adjustment to the
Area Median Income(AMI) of the 17 Below Market Rate(BMR)units would be required in order to
meet the Affordable Housing Fund regulations. Staff recommended approval as the project would
include considerable public and economic benefits in the Downtown. Further the project is consistent
with the Downtown Station Area specific plan and would be a catalyst in the area.
SPECIAL CITY COUNCIL MEETING SEPTEMBER 6,2017
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Mr. Emami of ROEM thanked Council and complemented City staff for its diligence on the project.
Public Hearing opened: 8:51 p.m.
Public Hearing closed: 8:51 p.m.
Councilman Addiego commented that he was pleased ROEM came to the table on this project,which was
very important to the City's Downtown.
Councilwoman Matsumoto commented on the original intended use of the Linden land, which was
exclusively for affordable housing. While some would be included in this project, it was not near the
expectation upon the acquisition of the property years ago. However, this project continued to be
significant to the Downtown. She queried the community benefits included in the deal.
Director of Economic and Community Development Greenwood advised a major community benefit was
commitment to prevailing wage. In addition the project would be a catalyst site in the Downtown.
Vice Mayor Normandy and Councilman Garbarino commented on the significance of the project to the
Downtown and noted the importance of continuing to pursue affordable housing options and plans in
light of the difficulties projects are facing against increased construction costs.
Motion—Councilman Addiego/Second—Councilman Garbarino: to waive reading and introduce an
ordinance approving a Development Agreement between ROEM Development Corporation and the City
of South San Francisco for the development of the properties located at 418 Linden Avenue and 201-219
Grand Avenue. Unanimously approved by roll call vote.
Motion—Councilman Garbarino/Second—Councilman Addiego:to approve Resolution No. 119-2017.
Unanimously approved by roll call vote.
ADJOURNMENT
Being no further business, Mayor Gupta adjourned the meeting at 9:08 p.m.
Submitted: r Approved:
j aeli.44;
a Martine! lerk Pradeep Gupta, Mayor
City of South San Francisco City of South San Francisco
SPECIAL CITY COUNCIL MEETING SEPTEMBER 6,2017
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