HomeMy WebLinkAboutMinutes 2019-09-25 @6:00MINUTES
SPECIAL MEETING
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CITY COUNCIL
CITY OF SOUTH SAN FRANCISCO
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Meeting held at:
MUNICIPAL SERVICES BUILDING
COUNCIL CHAMBERS
33 ARROYO DRIVE
SOUTH SAN FRANCISCO, CA
WEDNESDAY, SEPTEMBER 25, 2019
6:00 P.M.
CALL TO ORDER 6:00 p.m.
ROLL CALL Present: Councilmembers Addiego, Nagales, and Nicolas,
Vice Mayor Garbarino and Mayor Matsumoto.
AGENDA REVIEW
No changes.
PUBLIC COMMENTS — comments are limited to items on the Special Meeting Agenda.
None.
ADMINISTRATIVE BUSINESS
1. Report regarding a motion to accept the construction improvements of the Terrace Drive
Storm Drain Improvement Project (Project No. sd1701) as complete in accordance with
plans and specifications (Total Construction Cost $595,082.79). (Matthew Ruble, Principal
Engineer, and Peter Vorametsanti, Swinerton Management & Consulting)
Principal Engineer Ruble presented the report and indicated that the on September 26, 2018, the
City awarded a construction contract to Shaw Pipelines, Inc. to upgrade the City's storm drainage
system in the area of Terrace Drive and Spruce Avenue. The project installed new storm pipe, new
catch basins, and new manhole on Spruce Avenue and installed a raised crosswalk, replaced
existing curb ramps and sidewalk on Terrace Drive.
The storm drain system upgrades are designed to ensure that subsurface and surface drainage flows
are routed around the Francisco Terrace neighborhood, which is a natural low point of this area.
New high capacity drain inlets and laterals along Spruce Avenue maximize usage of the existing
underground storm drain main on Spruce Avenue. The raised crosswalk is designed to guide
surface flows around the Francisco Terrace neighborhood when the capacity of the underground
system on Spruce Avenue has been exceeded. The work was inspected by the Engineering Division
and found to be complete in accordance with the contract documents as of August 15, 2019.
This project is funded by the general fund, and the project is included in the City of South San
Francisco's Fiscal Year 2018-19 Capital Improvement Program (Project No. sd1701) with sufficient
funds allocated to cover the project cost. Contingency was used to remove an existing abandoned
utility in conflict with excavation, install bicycle friendly storm drain grates, and upgrading the
raised crosswalk from asphalt to concrete to allow more precise elevation and slope adjustments for
drainage.
Motion—Councilmember Nicolas/Second—Vice Mayor Garbarino: to accept, by motion, the
construction improvements of the Terrace Drive Storm Drain Improvement Project (Project No.
sd1701) as complete in accordance with plans and specifications (Total Construction Cost
$595,082.79). Unanimously approved by roll call vote.
2. Report regarding a motion to accept the construction improvements of the WQCP Effluent
Storage Pond Liner Replacement (Project No. ss 1704) as complete in accordance with plans
and specifications (Total Construction Cost $732,694) (Brian Schumacker, Superintendent
and Peter Vorametsanti, Swinerton Management & Consulting)
Superintendent Schumacker presented the report and indicated that on April 10, 2019, the City
awarded a construction contract to Flatiron West, Inc. to replace the geomembrane liner of the
effluent storage basin at the WQCP. The effluent storage basin is lined with an impermeable
geomembrane to control seepage into underlying soils. The original liner was installed in 2004 and
showed signs of deterioration. The Water Board required replacement of the aging liner due to this
deterioration. The project included removal and disposal of the old liner, minor spot repairs to the
basin's earthen berm, and installation of the new liner. Work is complete ahead of the next wet
season when the basin must be returned to service. The work was inspected by the Engineering
Division and found to be complete in accordance with the contract documents as of August 30,
2019.
Vice Mayor Garbarino inquired about future impacts caused by sea level rise. Superintendent
Schumacker indicated that pond area is not of concern, however, staff is working on engineering
and design to address sea level rise in the area north of the pond closer to the effluent pump station.
Councilmember Nicolas inquired about the life of the pond liner. Superintendent Schumacker stated
that the existing pond liner was had a life of 10-15 years and the new liner will have an estimated
life span of 18 to 20 years, replacement is part of the maintenance program.
Councilmember Addiego inquired about sea level rise and future anticipated impacts.
Superintendent Schumacker indicated that the sea level rise models and forecast show an impact
closer to the effluent pump station through 2050; staff is working with engineers to obtain federal
dollars to combat the anticipated impact.
Motion—Councilmember Addiego/Second—Councilmember Nagales: to accept, by motion, the
construction improvements of the WQCP Effluent Storage Pond Liner Replacement (Project No.
ssl704) as complete in accordance with plans and specifications (Total Construction Cost
$732,694). Unanimously approved by roll call vote.
3. Report regarding Resolution No. 116-2019 approving the First Amendment to the
Consulting Services Agreement with Lotus Water for the Orange Memorial Park Storm
Water Capture Project (sd1801), for an additional $1,500,929 for a total contract amount not
to exceed $2,252,720, and to extend the agreement for an additional year. (Bianca Liu,
Associate Engineer)
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Associate Engineer Liu presented the report and provided an update indicating that on April 26,
2017, the California Department of Transportation (Caltrans) agreed to fund $9,500,000 to the
Orange Memorial Storm Water Capture Project (Original Project) through Cooperative
Implementation Agreement No. D43CIASF0001. The Project's primary goal is to help the City and
California Department of Transportation (Caltrans) comply with the Regional Water Quality
Control Board's (RWQCB) Municipal Regional Permit (MRP) which stipulates a regulatory limit
requirement for trash, mercury and polychlorinated biphenyl (PCB) load reductions in waters
flowing to San Francisco Bay. RWQCB has established minimum pollutant load reduction limits
for each county and its cities and the MRP requires that a portion of the pollutant load reductions
shall be through green infrastructure.
On January 24, 2018, the City Council approved the selection of Lotus Water of San Francisco,
California for the engineering and environmental studies, design, permitting and construction bid
document preparation services for the Project. The agreement included assumptions which would
later need to be revisited once the preferred concept was chosen.
Staff, along with the assistance of Lotus Water, formed a steering committee to assist with the
review of the proposed design and work plan before presentations to the City's commissions and
committees, general public and other stake holders. The Project's steering committee provided its
feedback to Lotus Water regarding its proposed design alternatives and the Public Outreach Plan.
After extensive outreach, Staff presented the alternatives to the Environmental Standing Committee
to provide feedback on the recommended design alternative. Based on Environmental Standing
Committee feedback, staff presented the Project to the full City Council at its regular meeting dated
November 28, 2018. City Council approved the preferred alternative for the OMP Storm Water
Capture Project and authorized staff to complete the plans, estimate, and specifications.
The 60% design has been completed and is consistent with the original $9,500,000 budget.
Currently, we are working towards our 90% design which will refine the design and upsize the
project elements to effectively double the diversion and infiltration capacity. The current design
includes an instream diversion channel structure to re -direct all dry -weather urban runoff and up to
approximately 30 cubic feet per second of the first flush of wet -weather runoff from the Colma
Creek channel through pre-treatment structures to remove trash, debris, and sediment before
conveying the water into a subsurface multi-chambered storage reservoir with an overall storage
capacity of approximately 1,800,000 gallons. A portion (approximately 200,000 gallons) of the
storage functions as a cistern holding water that will receive 3 -step enhanced filtration and
disinfection for eventual non -potable irrigation use in and around the park, and the remainder
(approximately 1,600,000 gallons) functions as an infiltration chamber. When storage capacity is
exceeded, diverted water that has been screened for full trash capture and has been through
pretreatment for removal of floatables and settleables overflows back into the channel.
The preferred concept approved by the City Council and carried forward into design development
was very different and significantly more complex from the assumed concept. Furthermore,
additional unanticipated services became necessary through the course of the design development.
Also, the City Staff included an optional task for Lotus Water to provide inspection services for the
construction. Attachment A includes Lotus' additional services proposal for the Original Project.
Additionally, Lotus recently assisted the City in drafting a second Cooperative Implementation
Agreement No. D43CIASF0002 between Caltrans and the City that would result in Caltrans
funding an additional $6,000,000 to increase the scale of the Original Project. Caltrans and the City
SPECIAL CITY COUNCIL MEETING SEPTEMBER 25, 2019
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have verbally agreed and are in the process of executing the agreement. The Project Team
understands that the additional funding will be used to effectively double the treatment capacity of
the Original Project by increasing the capacity of the diversion, pretreatment structures, piping, flow
splitter, and infiltration gallery. Thus, the Original Project would be up scaled into an Expanded
Project, which will be reflected in the 90% design.
Additional services to be provided by the consultant team under this change order include the
following:
Project Management - Lotus Water will provide additional project management for the project
by acting as the City's External Project Manager. Also, the longer design and construction
periods resulting from the larger project requires additional project management.
Design Development and Construction Documents. The project scope has become significantly
larger and more complex than envisioned in the RFP, thus requiring a greater effort to
produce construction documents and a longer period to oversee construction.
Water Quality Monitoring Plan. Regulatory requirements to monitor water reuse systems must
be addressed in this document.
Construction Support Services. Additional submittal reviews and responses to requests for
information are expected due to the complex and unusual nature of the project.
Educational Placard. An educational placard will be designed and installed at the park to
illustrate the mostly underground system and how it works.
Subconsultant Services
o CEQA and Permitting. Additional environmental studies and permits beyond the
original scope of work have become necessary. Also, the Project Team conducted
CEQA noticing and Native American consulting.
o Geotechnical Services. The geotechnical engineer produced a Design Criteria Letter
and a Geotechnical Plan Review for excavation operations.
o Survey. The Project location moved from the original site and so the site had to be
re -surveyed.
o Trenchless Pipe Expert. An expert evaluated this pipe installation technique as a
potential means to protect trees in the park, but found it to be too expensive and
risky.
o Arborist. Tree protection measures and limited tree removal have become necessary
along the diversion pipe alignment.
o Health and Safety Plan (HASP). This is necessary for worker safety due to impacted
soils at the southern former greenhouse parcel.
o Irrigation Plans. The existing irrigation systems within Orange Memorial Park and
Centennial Trail must be retrofit for use of non -potable water.
Due to extensive negotiations required between the Project Team, Caltrans, and the Water Board
about expanding the Project and providing additional funding, as well as the additional time
required to design and construct the larger project, construction is now planned to begin in May
2020 and be completed in October 2021. However, this arrangement will allow SSF High School to
finish baseball season before construction begins.
Vice Mayor Garbarino inquired about the additional environmental studies and the process for
reviewing invoices for payment. Lotus Water consultant indicated that the wetlands delineation
along the adjacent corridor identified by a sub -consultant in addition, the due diligence report
SPECIAL CITY COUNCIL MEETING SEPTEMBER 25, 2019
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identified a cultural resources exploration. Staff will provide Council with a Friday memo
explaining the need for additional environmental studies. Associate Engineer Liu stated that
invoices are submitted on a monthly basis and reviewed by staff including the Public Works
Director prior to submission to Caltrans for project reimbursement.
Councilmember Nicolas inquired about the project funding and the City's contribution. Associate
Engineer Liu stated that the project design and construction is fully funded by Caltrans and the City
will be reimbursed for their costs. Councilmember Nicolas and Mayor Garbarino inquired about
pre -qualifying consultants to deter sole source contracts. Associate Engineer Liu indicated that
consultants are not pre -qualified. City Manager Futrell indicated that the project was unique due to
the increase in funding by Caltrans.
Councilmember Addiego inquired about the use of 200 gallons of water for landscaping in the event
of severe drought. Lotus Water consultant indicated that there is a 5 day supply of storage for
Orange Memorial Park and Centennial Way.
Motion—Vice Mayor Garbarino/Second—Councilmember Addiego: to approve Resolution No.
116-2019 approving the First Amendment to the Consulting Services Agreement with Lotus Water
for the Orange Memorial Park Storm Water Capture Project (sd1801), for an additional $1,500,929
for a total contract amount not to exceed $2,252,720, and to extend the agreement for an additional
year. Unanimously approved by roll call vote.
4. Report regarding Resolution No. 117-2019 awarding a construction contract to RK
Engineering, Inc. of San Francisco, California for the North Access Road Bike and
Pedestrian Improvement Project (ST1806) in an amount not to exceed $534,119.50,
authorizing a total construction budget of $667,649.38, and authorizing the City Manager to
execute an agreement on behalf of the City. (Jason Hallare, Associate Civil Engineer)
Principal Engineer Ruble presented the report and indicated that the City of South San Francisco
("City") is one of the permittees of a San Francisco Bay Conservation and Development
Commission (`BCDC") permit under BCDC Permit No. 1998.011.05 for the Park SFO parking
structure. One of the conditions of this BCDC Permit is to provide connectivity to the San Francisco
Bay Trail through the installation of a Class IV separated bike way on North Access Road from
South Airport Boulevard to the San Bruno Canal Bridge where it will connect to the existing San
Francisco Bay Trail. The City will construct these required improvements as part of this Project
ST1806 North Access Road Bike and Pedestrian Improvements Project.
Staff advertised a notice inviting bids for the project on July 21, 2019. On August 30, 2019, staff
received four (4) bids in response. Public Works contracts are ordinarily awarded to the lowest
responsible bidder whose bid is responsive to the solicitation. (Public Contract Code §20166.) The
lowest responsible bidder was RK Engineering, Inc. of San Francisco, California. Staff verified the
low bidder's current contractor's license with the California State Licensing Board and found it to
be in good standing.
The construction contingency of 15% will be used for any additional costs related to design or
construction method changes during the construction operations. The construction management and
administration of 10% will cover staff time and consultant costs to oversee and manage the
contractor. There are no Disadvantaged Business Enterprise (DBE) requirements since no federal
funds are being utilized on the project.
SPECIAL CITY COUNCIL MEETING SEPTEMBER 25, 2019
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This project is funded by the General Funds, Measure A, and Senate Bill 1 (SB 1) funding. The
project is included in the City of South San Francisco's Fiscal Year 2019-20 Capital Improvement
Program (Project No. ST1806). Staff requests approval of Budget Amendment No. 20.019 to
transfer an additional $110,000 from Measure A funds into the project budget to cover this project's
construction and contingency.
Councilmember Nagales inquired about the calculation of the Engineer's estimate. Principal
Engineer Ruble provided an overview of the project and indicated that there is a variability due to
market costs.
Councilmember Nicolas inquired if the 10% Engineer's estimate includes construction and
administration costs. Principal Engineer Ruble indicated that staff will begin to show line item
expenses to represent the true cost of projects and assist with future calculations.
Councilmember Addiego thanked Principal Engineer Ruble and his team for their thoroughness in
completing the project.
Mayor Matsumoto inquired about future placement of bike signs. Principal Engineer Ruble
indicated that the City currently has "share the road" signs throughout town and will look into
placement of additional signs.
Motion—Councilmember Nagales/Second—Councilmember Addiego: to approve Resolution No.
117-2019 awarding a construction contract to RK Engineering, Inc. of San Francisco, California for
the North Access Road Bike and Pedestrian Improvement Project (ST1806) in an amount not to
exceed $534,119.50, authorizing a total construction budget of $667,649.38, and authorizing the
City Manager to execute an agreement on behalf of the City. Unanimously approved by roll call
vote.
5. Report regarding Resolution No. 118-2019 approving a second Exclusive Negotiating
Rights Agreement ("ENRA") between the City of South San Francisco, and Firehouse
Work, LLC and Habitat for Humanity Greater San Francisco, for the property located at 201
Baden Avenue, and authorize the City Manager to execute the agreement. (Julie Barnard,
Economic Development Coordinator)
Economic Development Coordinator Barnard presented the report and stated that the City -owned,
retired firehouse at 201 Baden (the "Property") fronts Baden Avenue to the north and Second Lane
to the south, between Linden Avenue and Airport Boulevard. The Property is approximately 22,460
square feet (0.51 acres) and consists of three parcels (APN 012-335-100, 012-335-110 and an
unnamed parcel). Through a competitive Request for Proposals ("RFP") process, the developer
team, Firehouse Live, LLC and Firehouse Work, LLC (formerly Fire House Live/Work), was
selected by Council as the developer for the site.
The development team initially proposed: Concept: Retain the firehouse for office/commercial (for
occupancy by Group 4 and other businesses) and develop residential units and some new retail in
the current undeveloped space. Ideal tenants: Locally sourced food and beverage establishments or
creative new experiences not currently found in the downtown area. Total Number of Units: 24
units (studios - 2 bedroom units). BMR Units: Proposing 50% of units to be affordable. Retail
Space: 9,800 square feet.
SPECIAL CITY COUNCIL MEETING SEPTEMBER 25, 2019
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At its August 20, 2018 meeting, the Housing Standing Committee directed staff to begin
negotiations on an Exclusive Negotiating Rights Agreement ("ENRA") with the team. At that time
the team was comprised of members of Group 4 who represent the Firehouse Work team and
Lawlor Land Use, representing the Firehouse Live team. The consortium agreed to offer 50% of the
housing units at Below Market Rate ("BMR") prices in partnership with Habitat for Humanity
Greater San Francisco.
On February 27, 2019, the City Council approved the ENRA ("Original ENRA"). Since the March
4, 2019 effective date of the Original ENRA, the developer team has been working with City staff
on meeting the obligations of the ENRA and troubleshooting the more complicated components of
the proposed project. The initial proposal included 12 market rate units and 12 BMR units.
However, through the planning process, Lawlor Land Use discovered they could not make the
project financially feasible with such a small number of market rate units. Habitat for Humanity is
prepared to entirely assume the Firehouse Live portion of the Project. They have proposed the
following minor revisions to the development proposal: Construct at least 24 `family sized' units;
Units will be offered for -sale; and sale prices will target households earning 60% to 80% of Area
Median Income ("AMI"). The Original ENRA has expired and the City and development team are
no longer in exclusive negotiations. Rather than an ENRA amendment, the development team have
requested a new ENRA.
The new ENRA contemplates the Firehouse Work and Habitat for Humanity projects moving
forward together, with the execution of the PSA being the point at which they separate. The two
projects have different time constraints and the developers have expressed repeated interest to split
as soon as possible. There have been discussions with City Planning staff relating to the entitlement
requirements of each project, but without an application, it is difficult to determine the full extent
that the projects depend on one another.
Nevertheless, the Firehouse Work team would like to prepare the retired firehouse for occupancy by
Group 4 as soon as possible because of the company's operational needs. Doing so will require, at a
minimum, a lot merger and lot line adjustment, tenant improvements, and resolving other technical
issues that bind the projects, such as shared parking and garbage pickup. Conversely, Habitat for
Humanity's proposed residential development will require a full entitlement package and securing
public financing, both lengthy processes. The Habitat team is willing to submit a Pre -App during
the ENRA period and will submit a full Planning application once the City and developer have
executed a PSA because of the cost -commitment required of a full Planning application and the site
control needed to seek public financing. Between the entitlement process and securing funding, it is
unlikely that Habitat for Humanity will be ready for property conveyance until early 2021.
To address their different needs, the developer team has contemplated a path forward where the
developers remain joined through the Pre -App and PSA negotiation phase, but split when the PSAs
are taken forward to Council and the Property is split into two lots. Through the Pre -App process
and prior to the PSA finalization, the developer team intends to resolve some of the issues that may
bind the projects (parking and garbage, for example). If in the unlikely event one of the developers
is unable to proceed, the ENRA provides the City with an option to replace one developer or
terminate both, subject to City Council's approval
The developer team submitted a deposit in the amount of $50,000 for the land during the previous
ENRA term. This deposit was paid by the Firehouse Work team and will be credited towards the
purchase price of the old firehouse portion of the Property. The City has set up a cost recovery fund
SPECIAL CITY COUNCIL MEETING SEPTEMBER 25, 2019
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and received a payment of $30,000 to pay for City Attorney fees and staff time for the Firehouse
Work portion of the project. Once this is exhausted, the City may request an additional $30,000.
The City has no past practice of cost recovery for City Attorney fees and staff time when
negotiating property disposition with non-profit affordable housing developers. Therefore, the
General Fund will be impacted through staff time and City Attorney fees for the Habitat for
Humanity portion of the project only.
Once the purchase price of the Property has been negotiated, after the fiscal impact of the Project
has been determined, these funds will also belong to the General Fund.
Mayor Matsumoto expressed her concern with splitting the property due to the risk of funding.
Councilmember Addiego expressed his support of the project.
Councilmember Nagales expressed his concern with Habitat for Humanity's economic feasibility
and requested clarification on financing options. Peter Dunn, VP of Real Estate for Habitat for
Humanity, stated that all projects are carefully reviewed. He indicated that they have evaluated the
site and determined that it fits well within the financial model that has been successful with other
projects. He provided an overview of possible funding sources and indicated that additional funding
will be pursued if the ENRA is approved.
Vice Mayor Garbarino expressed his support of creating 24 affordable units that will benefit the
community.
Motion—Vice Mayor Garbarino/Second--Councilmember Addiego: to approve Resolution No.
118-2019 approving a second Exclusive Negotiating Rights Agreement ("ENRA") between the City
of South San Francisco, and Firehouse Work, LLC and Habitat for Humanity Greater San
Francisco, for the property located at 201 Baden Avenue, and authorize the City Manager to execute
the agreement. Approved by roll call vote: Yes: 3- Vice Mayor Garbarino, Councilmember
Addiego, and Councilmember Nagales. No: 2- Mayor Matsumoto and Councilmember Nicolas
ADJOURNMENT
Being no further business, Mayor Matsumoto adjourned the meeting at 6:59 p.m.
submitted by:
Rosa Govea Acosta, CMC, CPMC
City Clerk
Approved: 119 1)5 / a0
SPECIAL CITY COUNCIL MEETING
MINUTES
Approved by:
SEPTEMBER 25, 2019
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