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HomeMy WebLinkAbout2002-10-09 e-packetAGENDA REDEVELOPMENT AGENCY CITY OF SOUTH SAN FRANCISCO REGULAR MEETING MUNICIPAL SERVICE BUILDING COMMUNITY ROOM OCTOBER 9, 2002 7:00 P.M. PEOPLE OF SOUTH SAN FRANCISCO You are invited to offer your suggestions. In order that you may know our method of conducting Agency business, we proceed as follows: The regular meetings of the Redevelopment Agency are held on the second and fourth Wednesday of each month at 7:00 p.m. in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California. Public Comment: For those wishing to address the Board on any Agenda or non-Agendized item, please complete a Speaker Card located at the entrance to the Community Room and submit it to the Clerk. Please be sure to indicate the Agenda Item # you wish to address or the topic of your public comment. California law prevents Redevelopment Agency from taking action on any item no__[ on the Agenda (except in emergency circumstances). Your question or problem may be referred to staff for investigation and/or action where appropriate or the matter may be placed on a future Agenda for more comprehensive action or a report. When your name is called, please come to the podium, state your name and address for the Minutes. COMMENTS ARE GENERALLY LIMITED TO FIVE (5) MINUTES PER SPEAKER. In the event that there are more than six persons desiring to speak, the Chair may reduce the amount of time per speaker to three (3) minutes. Thank you for your cooperation. The Clerk will read successively the items of business appearing on the Agenda. As she completes reading an item, it will be ready for Board action. EUGENE R. MULLIN Chairman PEDRO GONZALEZ Vice Chair RAYMOND L. GREEN Boardmember BEVERLY BONALANZA FORD Investment Officer MICHAEL A. WILSON Executive Director JOSEPH A. FERNEKES Boardmember KARYL MATSUMOTO Boardmember SYLVIA M. PAYNE Clerk STEVEN T. MATTAS Counsel PLEASE TURN OFF CELL PHONES AND PAGERS HEARING ASSISTANCE EQUIPMENT IS AVAILABLE FOR USE BY THE HEARING-IMPAIRED AT REDEVELOPMENT AGENCY MEETINGS CALL TO ORDER ROLL CALL AGENDA REVIEW PUBLIC COMMENTS CONSENT CALENDAR 1. Motion to approve the minutes of the September 25, 2002 regular meeting 2. Motion to confirm expense claims of October 9, 2002 CLOSED SESSION 3. Pursuant to Government Code Section 54956.8, real property negotiations related to 178- 190 Airport Boulevard; 338,339,340, and 341 Railroad Avenue, and vacant parcel on the 400 block of Commercial Avenue (APN: 012-332-600); Agency Negotiator: Redevelopment Agency Assistant Director Van Duyn ADJOURNMENT REGULAR REDEVELOPMENT AGENCY MEETING OCTOBER 9, 2002 AGENDA PAGE 2 AGENDA CITY COUNCIL CITY OF SOUTH SAN FRANCISCO REGULAR MEETING MUNICIPAL SERVICE BUII,DING COMMUNITY ROOM OCTOBER 9, 2002 7:30 P.M. PEOPLE OF SOUTH SAN FRANCISCO You are invited to offer your suggestions. In order that you may know our method of conducting Council business, we proceed as follows: The regular meetings of the City Council are held on the second and fourth Wednesday of each month at 7:30 p.m. in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California. Public Comment: For those wishing to address the City Council on any Agenda or non-Agendized item, please complete a Speaker Card located at the entrance to the Council Chamber's and submit it to the City Clerk. Please be sure to indicate the Agenda Item # you wish to address or the topic of your public comment. California law prevents the City Council from taking action on any item not on the Agenda (except in emergency circumstances). Your question or problem may be referred to staff for investigation and/or action where appropriate or the matter may be placed on a future Agenda for more comprehensive action or a report. When your name is called, please come to the podium, state your name and address for the Minutes. COMMENTS ARE GENERALLY LIMITED TO FIVE (5) MINUTES PER SPEAKER. In the event that there are more than six persons desiring to speak, the Mayor may reduce the amount of time per speaker to three (3) minutes. Thank you for your cooperation. The City Clerk will read successively the items of business appearing on the Agenda. As she completes reading an item, it will be ready for Council action. PEDRO GONZALEZ Mayor Pro Tem EUGENE R. MULLIN Mayor JOSEPH A. FERNEKES Councilman RAYMOND L. GREEN Councilman KARYL MATSUMOTO Councilwoman BEVERLY BONALANZA FORD City Treasurer SYLVIA M. PAYNE City Clerk MICHAEL A. WILSON City Manager STEVEN T. MATTAS City Attorney PLEASE TURN OFF CELL PHONES AND PAGERS HEARING ASSISTANCE EQUIPMENT AVAILABLE FOR USE BY THE HEARING IMPAIRED AT CITY COUNCIL MEETINGS CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE INVOCATION PRESENTATIONS · Proclamation - Fire Prevention Week, October 6-12, 2002; recipient: Phil White · Proclamation - Recreation Supervisor John Wong · Day in the Park, September 21, 2002 AGENDA REVIEW PUBLIC COMMENTS ITEMS FROM COUNCIL · Community Forum · Subcommittee Reports CONSENT CALENDAR o Deputy Fire Chief Motion to approve the minutes of the September 18 and 25 special meetings and September 25 regular meeting Motion to confirm expense claims of October 9, 2002 Motion to adopt an ordinance amending Chapter 20.71 of the South San Francisco Municipal Code related to front, rear and side yard regulations Resolution accepting funds from the California Law Enforcement Equipment Program for technology in the Police Department in the amount of $49,015 Resolution accepting funds from the Supplemental Law Enforcement Services Fund Program in the amount of $121,165 Resolution amending the FY 2002-2003 Capital Improvement Program Budget to include the E1 Camino Real/Arlington Drive Traffic Signal Project Acknowledgement of proclamations issued: Genentech Goes to Town, September 17, 2002 PUBLIC HEARING 8. Heating to consider negative declaration for the East of 101 Traffic Fee; motion to continue to the regular meeting of October 23, 2002 REGULAR CITY COUNCIL MEETING OCTOBER 9, 2002 AGENDA PAGE 2 ADMINISTRATIVE BUSINESS 9. Resolution extending the term limits of Housing Authority Commissioners LEGISLATIVE BUSINESS 10. Consideration of consumer information privacy legislation: a) Waive reading and introduce an ordinance adding Title 6, Chapter 50 to SSFMC regulating the disclosure of confidential consumer information by financial institutions; b) Resolution supporting adoption of statewide legislation requiring consumer authorization for disclosure of consumer financial information CLOSED SESSION 11. Pursuant to Government Code Section 54957.6, conference with Labor Negotiator Bower on Operating Engineers' negotiations ADJOURNMENT REGULAR CITY COUNCIL MEETING AGENDA OCTOBER 9, 2002 PAGE 3 Staff Report DATE: October 9, 2002 TO: The Honorable Mayor and City Council FROM: Steven T. Mattas, City Attorney SUBJECT: Adoption of an Ordinance amending Chapter 20.71 of the South San Francisco Municipal Code Related to Front, Rear, and Side Yard Regulations RECOMMENDATION: Adopt an ordinance amending Chapter 20.71 of the South San Francisco Municipal Code Related to Front, Rear, and Side Yard Regulations BACKGROUND/DISCUSSION: Council has previously waived reading and introduced the following ordinance. The Ordinance is now ready for adoption. AN ORDINANCE AMENDING CHAPTER 20.71 OF THE SOUTH SAN FRANCISCO MUNICI?AL CODE RELATED TO FRONT, REAR, AND SIDE YARD REGULATIONS (Introduced 9/25/02, 4-0-1 Vote - Councilmember Raymond L. Green, absent) Steven T. Mattas, City Attomey/J Enclosure: Ordinance IN THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 20.71 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE RELATED TO FRONT, REAR, AND SIDE YARD REGULATIONS. WHEREAS, the Planning Commission, after a duly noticed public heating on September 5, 2002, recommended that the City Council adopt an ordinance that allows for reductions in the rear yard setback on Substandard Reverse Comer Lots in the R-1 (Single Family Residential) Zoning District to no less than 10 feet subject to approval of a Minor Use Permit; and, WHEREAS, allowing this reduction in the rear yard setback subject to approval of a minor use permit is consistent with the General Plan. Specifically, the Land Use Element of the General Plan requires all lots in areas designated as Low Density Residential to contain as much usable private outdoor yard space as possible. This amendment would result in a minimal loss of existing open yard space on all of the approximately 220 substandard reverse comer lots citywide, while the alternative currently allowed by the Zoning Ordinance to build a detached garage or carport in the rear yard would actually consume more usable yard space. Therefore, this amendment is in accordance with the policies of the Land Use Element of the General Plan; and, WHEREAS, Pursuant to Section 15305 (a) of the California Environmental Quality Act (CEQA) Guidelines, this ordinance is categorically exempt from CEQA as it only involves minor changes to the City's land use limitations, NOW THEREFORE, the City Council of the City of South San Francisco does ORDAIN as follows: 1. Chapter 20.71, Table 21.71.030, Footnote (q) of the City of South San Francisco Municipal Code is amended to read as follows: Table 20.71.030 Note (q): On substandard reverse comer lots in the R-1 zone district, the minimum rear yard setback shall be fifteen feet, but may be reduced to no less than 10 feet subject to the approval of a Minor Use Permit. 2. PUBLICATION AND EFFECTIVE DATE This Ordinance shall be published once, with the names of those City Councilmembers voting for or against it, in the San Mateo Times, a newspaper of general circulation in the City of South San Francisco, as required by law, and shall become effective thirty (30) days from and after its adoption. 3. SEVERABILITY In the event any section or portion of this ordinance shall be determined invalid or unconstitutional, such section or portion shall be deemed severable and all other sections or portions hereof shall remain in full force and effect. Introduced and adopted at a regular meeting of the City Council of the City of South San Francisco, held the 25th day of September, 2002. Adopted as an Ordinance of the City of South San Francisco at a regular meeting of the City Council held the day of, 2002 by the following vote: AYE S: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk As Mayor of the City of South San Francisco, I do hereby approve the foregoing Ordinance this __ day of ,2002. DATE: October 9, 2002 TO: Honorable Mayor and City Council FROM: Director of Public Works SUBJECT: EL CAMINO REAL/ARLINGTON DRIVE TRAFFIC SIGNAL PROJECT - COORDINATION RECOMMENDATION: It is recommended that the City Council adopt a resolution amending the FY 2002-2003 Capital Improvement Program (CIP) to include the El Camino Real/Arlington Drive Traffic Signal Project and appropriate $10,000 in order to establish a budget for coordination efforts. BACKGROUND: In 1999, City staff approached Caltrans for installation of a traffic signal at the intersection of E1 Camino Real and Arlington Drive in response to requests made by Winston Manor residents. Several community meetings were held in order to get public input into the design. Caltrans agreed to install a signal and widen the intersection to accommodate a new left turn lane from northbound E1 Camino Real to Arlington Drive. A retaining wall will be constructed on the west side of E1 Camino Real and the east side shoulder will be reduced to provide the required roadway width. Recently, Caltrans notified the City of their current schedule. City staff will spend time coordinating with local property owners. There is an existing roofing company that will be affected by the widening. The roofing company is within Colma city limits, but its driveway is within South San Francisco. City staff will need to coordinate with Caltrans and the Town of Colma in order to determine the mitigation required to accommodate the business owner. In addition, City staff will be notifying Winston Manor residents of the project schedule and updates as promised in the public meetings. The coordination and public notification is included in the $10,000. Caltrans has estimated that construction will begin in the summer of 2003. The City's share of construction costs will be approximately $60,000 to $80,000 or one third of the traffic signal cost for the project. Depending upon Caltrans' schedule, City staff will request construction costs in the spring of next year or include it in the FY 2003-2004 Capital Improvement Program. Staff Report To: Re: Date: Honorable Mayor and City Council E1 Camino Real/Arlington Drive Traffic Signal Project - Coordination October 09, 2002 Page: 2 of 2 The coordination costs in the amount of $10,000 will be obtained from Gas Tax Reserves. There is sufficient funding for this transfer. By: " ~ ~)~r~-c~-o-r-~ Public Works Michael A. Wilson City Manager ATTACHMENT: Resolution TS/JG/ed RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AMENDING THE FISCAL YEAR 2002-2003 CAPITAL IMPROVEMENT BUDGET (NO. 03-.5) TO INCLUDE THE EL CAMINO REAL/ARLINGTON DRIVE TRAFFIC SIGNAL PROJECT AND APPROPRIATE $10,000 IN ORDER TO ESTABLISH A BUDGET FOR COORDINATION EFFORTS WHEREAS, the City's share of construction costs will be approximately $60,000 to $80,000 or one third of the traffic signal cost for the project; and WHEREAS, the coordination cost in the amount of $10,000 will be obtained from Gas Tax Reserves; there is sufficient funding for this transfer. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council hereby amends the Fiscal Year 2002-2003 Capital Improvement Program budget (No. 03-5) to include the E1 Camion Real/Arlington Drive traffic signal project and appropriate $10,000 in order to establish a budget for coordination efforts. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a meeting held on the __ day of ,2002 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk \WIULDER\VGATTRELL\file cabinet\Current Reso's\l 0-9E1CaminoReal-ArlingtonDr ..res.doc AGENDA ITEM NO. 8 PUBLIC HEARING Hearing to consider negative declaration for the East of 101 Traffic Fee motion to continue to the regular meeting of October 23, 2002 ort Date: October 9, 2002 ro~ Honorable Mayor and City Council From: Steven T. Mattas, City Attorney By: Kimberly Johnson SUBJECT: Resolution related to term limits for Housing Authority Commissioners RECOMMENDATION: It is recommended that the City Council adopt the attached Resolution which extends the term limits of Housing Authority Commissioners from two consecutive termsto four consecutive terms. BACK/DISCUSSION: Term limits for most of the City's Boards and Commissions were recently extended from two consecutive terms to four consecutive terms. At the time of those extensions, the term limits of the Housing Authority Commissioners were not changed. Adoption of this resolution will extend the term limits of Housing Authority Commissioners from two consecutive terms to four consecutive terms. Such an extension is consistent with the Council's approach to appointments on other Boards and Commissions such as the Library Board, Planning Commission, Recreation Commission and Parking Place Commission. Michael A Wd}on, City Manager Attachment: Resolution I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a meeting held on the __ day of ,2002 by the following vote: AYES: NOES' ABSTAIN: ABSENT: ATTEST: City Clerk \WIULDER\VGATTRELL\file cabinet\Current Reso's\9~25housing.terms.reso.doc StaffReport DATE: October 9, 2002 TO: The Honorable Mayor and City Council FROM: Steven T. Mattas, City Attorney SUBJECT: Financial Privacy Ordinance RECOMMENDATION: Consider the following alternatives and provide direction to staff: (1) Waive reading and introduce the attached ordinance adding Chapter 50 to Title 6 of the South San Francisco Municipal Code related to consumer financial information privacy requirements and direct staff to not place the matter on the City Council agenda until a court has ruled that local governmental agencies are authorized to adopt such an ordinance; (2) Waive reading and introduce the attached ordinance adding Chapter 50 to Title 6 of the South San Francisco Municipal Code related to consumer financial information privacy requirements and direct staff to place the matter on the next agenda for adoption; (3) Adopt the attached resolution expressing the City of South San Francisco's support for State legislation imposing similar consumer financial privacy obligations on a statewide basis BACKGROUND/DISCUSSION: In 1999, Congress enacted the Financial Services Modernization Act, also known as the Gramm-Leach-Bliley Act ("GLB"). As part of the GLB Act, businesses are authorized to share and sell customer information. The act requires financial institutions to inform customers of their right to "opt-out" of this scheme by notifying the financial institution that the consumer does not want his or her information shared. However, this opt-out provision applies only to disclosures to non-affiliated third parties such as telemarketers and cannot prevent the sharing of nonpublic information between affiliates. Congress specifically established GLB as a minimum level of protection that could be exceeded by the States. Page 2 DATE: TO: FROM: SUBJECT: October 9, 2002 The Honorable Mayor and City Council Steven T. Mattas, City Attorney Financial Privacy Ordinance A bill establishing a higher level of protection than GLB - SB 773, authored by State Senator Jackie Speier - recently failed to pass through the Legislature. As a result, some cities and counties are considering enacting similar financial privacy measures at the local level. The County of San Mateo and the City of Daly City are two examples of local entities that have recently enacted such measures. The proposed ordinance would, with exceptions, prohibit "financial institutions" from disclosing "confidential information" to third parties unless the financial institution has given written notice to the consumer and has received a signed consent acknowledgement from the consumer authorizing the disclosure. This ordinance would allow a consumer to recover damages against a financial institution that negligently or intentionally discloses such information. In addition, the ordinance authorizes an administrative fine for intentional violation of it's provisions. The proposed ordinance would provide greater protection to consumers than currently exists under the GLB Act. By requiring consumers to "opt in" financial institutions will be prohibited from disclosing or sharing confidential consumer information without the consumers prior written approval. The ordinance would require a written notice be provided to the consumer detailing the information to be shared, and to what entities and for what purposes the information would be shared. However, this ordinance would not prohibit financial institutions from conducting everyday business such as using a separate company for mailing services for monthly bills and statements. This ordinance would also not prohibit financial institutions from marketing to their own customers. This ordinance would only apply to financial institutions located within the City of South San Francisco, and to customers who reside or operate a business within South San Francisco and who use financial institutions located in South San Francisco. The proposed ordinance would provide the authority for consumers to bring an action and recover damages for the negligent or intentional violation of the ordinance and would also authorize an administrative fine or civil penalty not to exceed $500 for each intentional violation of the ordinance. Thus, the ordinance would be enforceable both by consumers and the City or District Attorney's office. As an alternative to introducing the proposed ordinance, the City Council may desire to adopt the attached resolution expressing support for statewide legislation requiring that financial institutions obtain approval from their customers prior to disclosing or sharing confidential consumer information. Steven T. Mattas, City Attorney Mich ad 7~./'~'i~on, ,~f~iaI~ger Enclosure: Ordinance Resolution ORDINANCE No. AN ORDINANCE ADDING TITLE 6, CHAPTER 50 TO SOUTH SAN FRANCISCO MUNICIPAL CODE REGULATING THE DISCLOSURE OF CONFIDENTIAL CONSUMER INFORMATION BY FINANCIAL INSTITUTIONS The City Council does hereby ordain as follows: Section 1. Chapter 50 of Title 6 of the South San Francisco Municipal Code is hereafter added to the South San Francisco Municipal Code to read as follows: Chapter 6.50 DISCLOSURE OF CONFIDENTIAL CONSUMER INFORMAITON BY LOCAL FINANCIAL INSTITUTIONS Sections: 6.50.010 6.50.020 6.50.030 6.50.040 6.50.050 6.50.060 6.50.070 6.50.080 Definitions. Non-Disclosure of Confidential Consumer Information. Notice and Consent. Exempt Disclosures. Insurance and Securities Disclosures. Administrative Penalties and Civil Remedies. Fair Credit Reporting Act or Federal or State Conflict. Severability 6.50.010 Definitions For the purposes of this Chapter, the following definitions apply: (a) "Confidential consumer information" means personally identifiable financial information (1) that a consumer provides to a financial institution to obtain a product or service from the financial institution, (2) about a consumer resulting from any transaction involving a product or service between the financial institution and a consumer, or (3) that the financial institution otherwise obtains about a consumer in connection with providing a product or service to that consumer. Any personally identifiable information is financial if it was obtained by a financial institution in connection with providing a financial product or service to a consumer, including the fact that a consumer is a customer of a financial institution located within the City of South San Francisco. Confidential consumer information does not include publicly available information that is lawfully made available to the general public from (1) federal, state or local government records, (2) widely distributed media, or (3) disclosures to the general 600148-1 (b) (c) public that are required to be made by federal, state, or local law, except that confidential consumer information shall include any list, description, or other grouping of consumers, and publicly available information pertaining to them that is derived using any nonpublic personal information other than publicly available information, but shall not include any list, description, or other grouping of consumers, and publicly available information pertaining to them that is derived without using any confidential consumer information. "Personally identifiable financial information" includes, but is not limited to, all of the following: (1) Information a consumer provides to a financial institution located within the City of South San Francisco on an application to obtain a loan, credit card, or other financial product or service. (2) Account balance information, payment history, overdraft history and credit or debit card purchase information. (3) The fact that an individual or business entity is or has been a customer of a financial institution located within the City of South San Francisco or has obtained a financial product or service from a financial institution located within the City of South San Francisco. (4) Any information about a financial institution's consumer if it is disclosed in a manner that indicates that the entity is or has been the financial institution's consumer. (5) Any information that a consumer provides to a financial institution or that a financial institution located within the City of South San Francisco or its agent otherwise obtains in connection with collecting on a loan or servicing a loan. (6) Any information collected through an Internet cookie or an information- collecting device from a web server. (7) Information from a consumer report. "Financial institution" generally means any institution located in the City of South San Francisco that is engaging in financial activities as described in Section 1843(k) of Title 12 of the United States Code and doing business in the City of South San Francisco. The term "financial institution" does include a commercial bank, trust company, savings association, industrial loan company, credit union, insurance company, securities brokerage or person to the extent, and only to the extent, that the business or person is engaged in the business of lending money or engaging in financial activities as defined above in the City of South San Francisco. The term "financial institution" does not include the Federal Agricultural Mortgage Company, any entity chartered and operating under the Farm Credit Act of 1971, or any institution chartered by Congress specifically to engage in securitization, secondary market sale, or similar transactions related to a transaction of the consumer, or any person licensed as a dealer under Article 1, (commencing with § 11700) of Chapter 4 of Division 5 of the Vehicle Code that enters into contracts for the installment sale or lease of motor vehicles pursuant to the requirements of Chapter 2b (commencing with § 2985.7) of Title 14 of Part 4 600148-1 or Division 3 of the Civil Code and assigns substantially all of those contracts within 30 days. (d) "Affiliate" means any person or entity that, directly or indirectly, controls, is controlled by, or is under common control with another person or entity. A franchisor, including any affiliate thereof, shall be deemed an affiliate of the franchisee for purposes of this Chapter. (e) "Nonaffiliated third party" means any entity that is not an affiliate of, or related by common ownership or affiliated by corporate control, with the financial institution. (f) "Consumer" means an individual or business, who is a resident of the City of South San Francisco, that obtains or has obtained, from a financial institution as defined in subsection (c) above, a financial product or service that is to be used primarily for personal, family, or household purposes, or that individual's legal representative. For purposes of this ordinance, an individual is not a consumer of a financial institution solely because he or she is (1) a participant or beneficiary of an employee benefit plan that a financial institution administers or sponsors, or for which the financial institution acts as a trustee, insurer, or fiduciary, (2) covered under a group or blanket insurance policy or group annuity contract issued by the financial institution, or (3) a beneficiary in a workers' compensation plan provided that (A) the financial institution provides all required notices and fights required by this ordinance to the plan sponsor, group or blanket insurance policyholder, or group annuity contract holder, and (B) the financial institution does not disclose to any affiliate or any nonaffiliated third-party confidential consumer information about the individual except as authorized in Section 6.50.050. A consumer does not include an individual who obtains products or services for business, commercial, or agricultural purposes. (g) "Control" means the direct or indirect possession of the power to direct or cause the direction of the management and policies of another entity. Control includes any of the following: (1) ownership or power to vote 25 percent or more of the outstanding shares of any class of voting security of a company, acting through one or more persons, (2) power in any manner over the election of a majority of the directors, or of individuals exercising similar functions, or (3) the power to exercise a directing influence over the management or policies of a company. (h) "Necessary to effect, administer or enforce," means the following: (1) The disclosure is required, or is a usual, appropriate, or acceptable method to carryout the transaction or the product or service business of which the transaction is a part, and record or service or maintain the consumer's account in the ordinary course of providing the financial service or financial product, or to administer or service benefits or claims relating to the transaction or the product or service business of which it is a part, and includes the following: 600148-1 (i) (2) (3) (4) (A) Providing the consumer or the consumer's agent or broker with a confirmation, statement, or other record of the transaction, or information on the status or value of the financial service or financial product. (B) The accrual or recognition of incentives or bonuses associated with the transaction that are provided by the financial institution or another party involved in providing the financial service or product. The disclosure is required or is a lawful method to enforce the rights of the financial institution or of other persons engaged in carrying out the financial transaction or providing the product or service. The disclosure is required, or is a usual, appropriate, or acceptable method for insurance underwriting at the consumer's request, for reinsurance purposes, or for any of the following purposes as they relate to a consumer's insurance: (A) Account administration. (B) Reporting, investigating or preventing fraud or material misrepresentation. (C) Processing premium payments. (D) Processing insurance claims. (E) Administering insurance benefits, including utilization review activities. (F) For internal research purposes. (G) As otherwise required or specifically permitted by federal or state law. The disclosure is required, or is a usual, appropriate or acceptable method, in connection with the following: (A) The authorization, settlement, billing processing, cleating, transferring, reconciling, or collection of amounts charged, debited, or otherwise paid using debit, credit or other payment card, check or account number, or by other payment means. (B) The transfer of receivables, accounts or interest therein. (C) The audit of debit, credit, or other payment information. "Financial product or service" means any product or service that a financial holding company could offer by engaging in any activity that is financial in nature or incidental to financial activity under subsection (k) of Section 1843 of Title 12 of the United States Code (the United States Bank Holding Company Act of 1956). Financial service includes an institution's evaluation or brokerage of information that the financial institution collects in connection with a request of an application from a consumer for financial products or services. 600148-1 (J) (k) "Clearly and conspicuously" means displayed in a manner that is readily noticeable, readable, and understandable to consumers. Factors to be considered in determining whether a notice or disclosure is clear and conspicuous include prominence, proximity, and absence of distracting elements, and clarity and understanding of the text disclosure. "Widely distributed media," means publicly available information from a telephone book, a television or radio program, a newspaper, or a web site, that is available to the general public on an unrestricted basis. 6.50.020 Non-Disclosure of Confidential Consumer Information (a) A financial institution shall not disclose to, or share a consumer's confidential consumer information with, any nonaffiliated third party or affiliate unless the financial institution has provided written notice to the consumer to whom the confidential consumer information relates and unless the financial institution has obtained a consent acknowledgement signed by the consumer that authorizes the financial institution to disclose or share the confidential consumer information. (b) A financial institution shall not deny a consumer a financial product or a financial service because the consumer has not provided the signed consent acknowledgement required by this section to authorize the financial institution to disclose or share his or her confidential consumer information with any non- affiliated third party or affiliate. (c) Nothing in this Chapter shall prohibit a financial institution from marketing its own products and services or the products and services of others to the financial institutions own customers, provided no confidential consumer information is disclosed except as permitted by Section 6.50.040. (d) Except as otherwise provided in this ordinance, an entity that receives confidential consumer information from a financial institution under this ordinance shall not disclose this information to any other entity, unless the disclosure would be lawful if made directly to the other entity by the financial institution. 6.50.030 Notice and Consent (a) Nothing in this Chapter shall require a financial institution to provide a written notice to a consumer pursuant to Section 6.50.020 if the financial institution does not disclose confidential consumer information to any nonaffiliated third-party or to any affiliate, except as provided in Section 6.50.040. (b) A financial institution shall provide written notices and consent acknowledgements required by this ordinance to consumers as separate written documents that are easily identifiable and distinguishable from other documents 600148-1 that otherwise may be provided to a consumer. A notice provided to a member of a household pursuant to Section 6.50.020 shall be considered notice to all members of that household unless that household contains another individual who also has a separate account with the financial institution. (c) Written notices required by this ordinance shall include at least the following: (1) (2) (3) (4) The specific types of information that would be disclosed or shared, The general circumstances under which the information would be disclosed or shared, The specific types of persons or businesses that would receive the information, and The specific proposed types of uses for the information. 6.50.040 Exempt Disclosures (a) This Chapter shall not apply to information that is not personally identifiable to a particular person. (b) This Chapter shall not prohibit the release of confidential consumer information under the following circumstances: (1) The confidential consumer information is necessary to effect, administer, or enforce a transaction requested or authorized by the consumer, or in connection with servicing or processing a financial product or service requested or authorized by the consumer; or in connection with maintaining or servicing the consumer's account with the financial institution, or with another entity as part of a private label credit card program or other extension of credit on behalf of such entity, or in connection with a proposed or actual securitization or secondary market sale, including sales of servicing rights, related to a transaction of the consumer. (2) The confidential consumer information is released with the signed consent acknowledgement of or at the written direction of the consumer. (3) The confidential consumer information is: (A) Released to protect the confidentiality or security of the financial institution's records pertaining to the consumer, the service or product, or the transaction therein (B) Released to protect against or prevent actual or potential fraud, identity theft, unauthorized transactions, claims or other liability. (C) Released for required institutional risk control, or for resolving customer disputes or inquiries. (D) Released to persons holding a legal or beneficial interest relating to the consumer. (E) Released to persons acting in a fiduciary or representative capacity on behalf of the consumer. (F)Released to a court of competent jurisdiction. 600148-1 (4) (5) (6) (7) (8) (9) (10) (G) Released to a state or local agency for the purposes of child support enforcement. The confidential consumer information is released to provide information to insurance rate advisory organizations, guaranty funds or agencies, applicable rating agencies of the financial institution, persons assessing the institution's compliance with industry standards, and the institution's attorneys, accountants, and auditors, provided that the information obtained is not used for any other purpose. The confidential consumer information is released to the extent specifically required under other provisions of law and in accordance with the Right to Financial Privacy Act of 1978 (12 U.S.C. Sec. 3401 et seq.), to law enforcement agencies, including a federal functional regulator, the Secretary of the Treasury with respect to subchapter II of Chapter 53 of Title 31, and Chapter 2 of Title I of Public Law 91-508 (12 U.S.C. §§ 1951-1959), the California Department of Insurance, or the Federal Trade Commission, and self-regulatory organizations. The confidential consumer information is released (A) to a consumer reporting agency in accordance with the Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.) or (B) from a consumer report reported by a consumer reporting agency. The confidential consumer information is released in connection with a proposed or actual sale, merger, transfer, or exchange of all or a portion of a business or operating unit if the disclosure of confidential consumer information solely concerns consumers of the business or unit. The confidential consumer information is released to comply with federal, state, or local laws, rules, and other applicable legal requirements; to comply with a properly authorized civil, criminal, or regulatory investigation or subpoena or summons by federal, state or local authorities; or to respond to judicial process or government regulatory authorities having jurisdiction over the financial institution for examination, compliance, or other purposes as authorized by law. When a financial institution in the City of South San Francisco is reporting a known or suspected instance of elder or dependent adult financial abuse or is cooperating with a local adult protective services agency investigation of known or suspected elder or dependent adult financial abuse pursuant to Article 3 (commencing with Section 15630) of Chapter 11 of Part 3 of Division 9 or the Welfare and Institutions Code. The confidential consumer information is released to a nonaffiliated third party in order for the nonaffiliated third party to perform services for or functions on behalf of the financial institution in connection with the financial institution's products and services, such as mailing services, data processing or analysis, or customer surveys, provided that all of the following requirements are met: (A) The services to be performed by the nonaffiliated third party would be lawful if performed by the financial institution. 600148-1 (c) (B) There is a written contract between the nonaffiliated third party and the financial institution that prohibits the nonaffiliated third party from disclosing or using the confidential consumer information other than to carry out the purpose for which the financial institution disclosed the information, as set forth in the written contract. (C) The confidential consumer information provided to the nonaffiliated third party is limited to that which is reasonably necessary for the nonaffiliated third party to perform the services contract on behalf of the financial institution. (11) The confidential consumer information is released to identify or locate missing and abducted children, witnesses, criminals and fugitives, parties to lawsuits, parents delinquent in child support payments, organ and bone marrow donors, pension funds beneficiaries, and missing heirs. Nothing in this ordinance is intended to change existing law relating to access by law enforcement agencies to information held by financial institutions. 6.50.050 Insurance and Securities Disclosures (a) The restrictions on disclosure and use of confidential consumer information, and the requirement for notification, disclosure, and opportunity for the consumer to direct that the confidential consumer information confidential consumer information be disclosed through prior written consent, as provided in this Chapter, do not apply to any person or entity that meets the requirements of paragraphs (1) or (2), below: (1) The person or entity is licensed in one or both of the following categories and is acting within the scope of the respective license: (A) As an insurance agent, licensed pursuant to chapter 5 (commencing with Section 1621), Chapter 6 (commencing with Section 1621), or Chapter 8 (commending with Section 1831 of Division 1 of the Insurance Code. (B) Is licensed to sell securities by the United States Securities and Exchange Commission. (2) The person or entity meets the requirements in paragraph (1) and has a written contractual agreement with another person or entity described in paragraph (1) and the contract clearly and explicitly includes, but is not limited to, the following: (A) The rights and obligations of the parties in the insurance or securities transaction. (B) An explicit limitation on the use of confidential consumer information about a consumer to transactions authorized by the contract and the requirements contained din this Chapter. (C) The transactions specified in subparagraph (B) fall within the scope of the activities permitted by the licenses of the parties. 600148-1 (b) The restrictions on disclosure and use of confidential consumer information and the requirement for notification and disclosure provided in this Chapter, shall not limit the ability of insurance agents and brokers to respond to written or electronic, including telephone, requests from consumers seeking price quotes on insurance products and services. 6.50.050 Administrative Penalties and Civil Remedies (a) In addition to any other remedies available at law, any consumer may bring an action against any financial institution located in the City of South San Francisco that negligently or intentionally discloses or shares confidential consumer information concerning him or her in violation of this Chapter, for either or both of the following: (1) Nominal damages of one hundred dollars ($100). In order to recover under this paragraph, it shall not be necessary that the plaintiff suffered or was threatened with actual damages. (2) The amount of actual damages, if any, sustained by the consumer. (b) Any financial institution located in the City of South San Francisco that knowingly and willfully obtains, discloses or uses confidential consumer information in violation of this ordinance shall be liable, irrespective of the amount of damages suffered by the consumer as a result of that violation, for an administrative fine or civil penalty not to exceed five hundred dollars ($500) per violation. 6.50.070 Fair Credit Reporting Act or Federal Conflict This chapter shall not be construed in a manner that is inconsistent with the Federal Fair Credit Reporting Act (15 U.S.C. Sec. 1681 et seq); or to be in conflict with any federal statute or regulation that preempts this area of regulation to the exclusion of local control. Section 2. Severability If any provision of this ordinance is held by any court or by any Federal or State agency of competent jurisdiction, to be invalid as conflicting with any Federal or State law, rule or regulation now or hereafter in effect, or is held by such court or agency to be modified in any way in order to conform to the requirements of any such law, rule or regulation, such provision shall be considered a separate, distinct and independent part of this ordinance, and such holding shall not affect the validity and enforceability of all other provisions hereof. In the event that such law, rule or regulation is subsequently repealed, rescinded, amended or otherwise changed, so that the provision thereof which had previously been held invalid or modified is no longer in conflict with such law, rule or regulation, said provision shall thereupon return to full force and effect and shall thereafter be binding. 600148-1 Section 3. Publication and Effective Date. Pursuant to the provisions of Government Code Section 36933, a summary of this Ordinance shall be prepared by the City Attorney. At least five (5) days prior to the Council meeting at which this Ordinance is scheduled to be adopted, the City Clerk shall (1) publish the Summary, and (2) post in the City Clerk's Office a certified copy of this Ordinance. Within fifteen (15) days after the adoption of this Ordinance, the City Clerk shall (1) publish the summary, and (2) post in the City Clerk's Office a certified copy of the full text of this Ordinance along with the names of those City Council members voting for and against this Ordinance or otherwise voting. This ordinance shall become effective thirty days from and after its adoption. Introduced and at a regular meeting of the City Council of the City of South San Francisco, held the day of 2002, by the following vote: Adopted as an Ordinance of the City of South San Francisco at a regular meeting of the City Council held the __ day of __ 2002: AYES: NOES: ABSENT: ABSTAIN City Clerk As Mayor of the City of South San Francisco, I do hereby approve the foregoing Ordinance this __ day of ,2002. Mayor 600148-1 RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION IN SUPPORT OF STATEWIDE FINANCIAL PRIVACY LEGISLATION WHEREAS, the United States Congress established the "opt-out" privacy protections of the Gramm-Leach-Bliley Act, Public Law 106-102, as a minimum level of protection for consumer privacy that could be exceeded by the states; WHEREAS, the City Council is aware of the advances in technology which have enabled financial institutions to sell and utilize information of all kinds including nonpublic personal information about consumers; WHEREAS, the City Council recognizes the pressing need for comprehensive financial privacy protection; WHEREAS, the City Council supports legislation which would prohibit financial institutions from disclosing confidential information to third parties unless the financial institution has provided written notice to the consumer and received a signed consent acknowledgement from the consumer authorizing the disclosure; NOW THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco hereby requests that the California State Legislature introduce and enact statewide legislation preventing financial institutions from disclosing confidential information to third parties unless the financial institution has provided written notice to the consumer and received a signed consent acknowledgement from the consumer authorizing the disclosure. AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk