HomeMy WebLinkAboutMinutes 2019-11-25 @6:00MINUTES
CITY COUNCIL
CITY OF SOUTH SAN FRANCISCO
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CIO
SPECIAL MEETING
��zlF. �MUNICIPAL SERVICES BUILDING
COUNCIL CHAMBERS
33 ARROYO DRIVE
SOUTH SAN FRANCISCO, CA
CALL TO ORDER
ROLL CALL
AGENDA REVIEW
No changes
PUBLIC COMMENTS
None
PRESENTATIONS
MONDAY, NOVEMBER 25, 2019
6:00 P.M.
Time: 8:14 p.m.
Present: Councilmembers Addiego, Nagales, Nicolas,
Vice Mayor Garbarino, and Mayor Matsumoto.
1. Presentation providing a market update and review of the City's investment portfolio. (Janet
Salisbury, Finance Director, and Jeff Probst, Chandler Asset Management)
Jeff Probst with Chandler Asset Management presented the Investment Report for the period ending
October 31, 2019. He discussed employment rates, inflation, gross domestic product, Federal
Reserve, bond yields, portfolio characteristics for the City of South San Francisco. He indicated that
the Consumer Price Index (CPI) was up 1.8% year -over -year in October, up from 1.7% in September.
The Personal Consumption Expenditures (PCE) index was up just 1.3% year -over -year in September,
down from 1.4% year -over -year in August. Core PCE, which was the Fed's primary inflation gauge,
was up 1.7% year -over -year in September versus 1.8% year -over -year in August, Federal fund rates
have been cut, additional stimulus to the economy. The Core PCE softened and remains below the
Fed's 2.0% inflation target. The Gross Domestic Product (GDP) growth was stronger than expected
in the third quarter, up 1.9% on an annualized rate versus expectations of 1.7%, according to the
advance estimate.
Councilmember Addiego stated that the City is preparing to enter the bond market for a large
investment and inquired about opportunities. Mr. Probst indicated that they do not foresee a decline
in interest rates; however, the City is in a great position to raise bonds.
Mayor Matsumoto inquired if changes would be made to the City's investment process. Mr. Probst
indicated that they are working with City staff and City Treasurer Risso to access liquidity and
evaluate the City's portfolio. When the City raises funds, those funds may be invested, to help with
debt service costs.
Meeting Recessed: 8:14 p.m.
Meeting Resumed: 8:26 p.m.
COUNCIL COMMENTS/REQUESTS
Vice Mayor Garbarino wished staff, the community and Council a Happy Thanksgiving.
Mayor Matsumoto shared the City's efforts in coordinating a food distribution for the holiday season.
She indicated that the City in collaboration with the YMCA and Second Harvest Food Bank fed over
500 families. The event was successful due to the incredible team of volunteers and staff. She
congratulated former Public Works Director Terry White for completing the drag race in 6.6 seconds.
Mayor Matsumoto expressed her condolences and requested to adjourn the meeting in honor of
Steven White and Roy Hansen.
CONSENT CALENDAR
The City Clerk duly read the Consent Calendar, after which Council voted and engaged in discussion
of specific items as follows: Mayor Matsumoto pulled Item #6 for discussion.
2. Report regarding Resolution No. 155-2019 approving a one-year time extension for a
Tentative Parcel Map to reparcelize the Phase III Terrabay Specific Plan -Genesis Campus
property (APNs 007-650-180 and 007-650-190) consistent with South San Francisco
Municipal Code Chapter 20.230 and Title 19 entitled "Subdivisions". (Jason Hallare, Senior
Engineer)
3. Report regarding Resolution No. 156-2019 accepting $400,000 in Transportation
Development Act Article III (TDA 3) grant funds from the City/County Association of
Governments (C/CAG) for the East Grand Avenue-Caltrain Bicycle and Pedestrian Access
project. (Christina Fernandez, Assistant to the City Manager)
4. Report regarding Resolution No. 157-2019 approving the South San Francisco Fire Department's
annual inspections performance pursuant to the California Health and Safety Code section
13146.4. (Jesus Magallanes, Fire Chief)
5. Report regarding Resolution No. 158-2019 authorizing the acceptance of $220,000 in grant
funding for Fiscal Year 2019-20 from the Silicon Valley Community Foundation for the Big
Lift Little Steps Preschool at the Community Learning Center, and amending the Parks and
Recreation Department's Fiscal Year 2019-20 Operating Budget pursuant to budget
amendment #20.014. (Sharon Ranals, Director of Parks and Recreation)
6. Report regarding approval of the First Amendment to an Exclusive Negotiating Rights Agreement
with Ensemble Investments for a proposed hotel development at Oyster Point. (Ernesto Lucero,
Economic Development Coordinator)
SPECIAL CITY COUNCIL MEETING NOVEMBER 25, 2019
MINUTES PAGE 2
Item 6: Mayor Matsumoto inquired about the Exclusive Negotiation Rights Agreement extensions
presented to Council for approval. City Manager Futrell indicated that the project is complex and
staff continues to work with the developer. He expressed his support to extend negotiations and
continue discussions.
Motion— Councilmember Addiego/Second-Vice Mayor Garbarino: to approve Consent Calendar
items #2 -6. Unanimously approved by roll call vote.
ADMINISTRATIVE BUSINESS
7. Report regarding Resolution No. 160-2019 approving budget amendment number 20.023
amending the Fire Department operating budget in the amount of $175,983 to fund two
contract hourly Safety Inspector positions. (Jesus Magallanes, Fire Chief)
Fire Marshal Lustenberger presented the report and provided an overview of the department's request
and the need for contract hourly safety inspections. He indicated that for the past several years, the
Fire Department has been working to complete internal reviews of its operational divisions. One of
these divisions is Fire Prevention. Completing a comprehensive analysis of workload in this division
was difficult due to software limitations, an unclear understanding of the building inventory within
the City, and the inclusion of Code Enforcement complicating time -on -task review.
With the transition of Code Enforcement to Public Works, it has become easier to analyze
productivity of the personnel assigned to the Fire Prevention division. Staff presented an analysis that
covered the full spectrum of responsibilities, time needed to complete tasks, the number and type of
tasks, fees associated and personnel availability. The document used internal data from fiscal year
2018-19, as well as the Standard on Organization and Deployment of Fire Prevention Inspection and
Code Enforcement, Plan Review, Investigation, and Public Education Operations National Fire
Protection Agency 1730, 2019.
Compiling all of this data gave a total Fire Prevention workload demand of 10,509.5 hours. The
division was broken down into number and type of personnel, including fiscal year 2020-21 approved
Deputy Fire Marshal position. Each position was analyzed to find a total availability of 7,466 hours
with 3,043 hours of remaining work to complete all the Fire Prevention division responsibilities.
The data indicated that an inspector could complete an average of five inspections a day. Using the
Master Fee Schedule, a minimum average inspection fee is $234. Assuming the lowest availability of
1,365 hours per year, the inspector would be available 170 days. Completing a rate of five
inspections per day, at an average of $234 per inspection, would generate $198,900 a year per
inspector. The report showed 3,043 hours deficiency, Fire Prevention would require two contract
hourly Safety Inspectors to complete the remaining workload.
Mayor Matsumoto shared her concerns with the constant shift of responsibilities between the Fire and
Public Works Department. She referenced Consent Item #4 and indicated that Exhibit A showed
numerous complaints routed to Code Enforcement and the shifting of responsibilities amongst Code
Enforcement officers would be sufficient. Mayor Matsumoto expressed her concern with the hiring of
contract employees and the lack of succession planning for staff.
SPECIAL CITY COUNCIL MEETING NOVEMBER 25, 2019
MINUTES PAGE 3
City Manager Futrell provided an overview of Code Enforcement duties and its reassignment to the
Public Works department. Since the split, the Fire Inspection Division met 100% of State mandates.
He indicated that the hiring of contract employees, would allow staff to follow the recommendations
of the Grand Jury Report. He is confident that the Code Enforcement Division will remain in the
Public Works Department. Mayor Matsumoto requested clarification on Fire Department vacancies
and the hourly staff request. Fire Chief Magallanes provided an overview of the 2019-2020 budgeted
positions and indicated that there were no vacancies in the department. Councilmember Addiego
expressed his support of the proposal.
Mayor Matsumoto requested a progress update from the Fire Department once the department hires
two contract hourly Safety Inspectors.
Motion— Vice Mayor Garbarino/Second—Councilmember Nicolas: to approve Resolution No. 160-
2019 approving budget amendment number 20.023 amending the Fire Department operating budget
in the amount of $175,983 to fund two contract hourly Safety Inspector positions. Unanimously
approved by roll call vote.
8. Report regarding Resolution No. 161-2019 approving an Exclusive Negotiating Rights
Agreement ("BNRA") between the City of South San Francisco, and Baden Development,
LLC, for the property located at 432 Baden Avenue, and authorizing the City Manager to sign
the agreement. (Julie Barnard, Economic Development Coordinator)
Economic Development Coordinator Barnard presented the report and indicated that in September
2018, Baden Development, LLC (then Sierra Investment Group) purchased 428 Baden Avenue for
development into a small multi -family housing project. During the entitlement process for 428 Baden
Avenue, the developer approached the City with a proposal to purchase the adjacent parcel at 432
Baden (the "Site") in order to assemble land for a larger housing project.
The Site (i.e., 432 Baden) is a 6,700 square foot parcel currently used as a public parking lot. The Site
is a former Redevelopment Agency property, and is subject to the State -approved Long Range
Property Management Plan (LRPMP) which requires the Site to be sold.
By assembling 428 and 432 Baden, the developer would be able to pursue a project with better design
and more housing units, including three Below Market Rate ("BMR") units at the extremely low-
income level. On September 23, 2019, Baden Development provided the City with a Letter of Intent
(LOI) for the purchase. On October 9, 2019, in closed session, the City Council considered the LOI
and agreed that the site had a greater value if assembled with 428 Baden rather than disposing of it as
a stand-alone site.
Economic Development Coordinator Barnard provided an overview of AB 1486 – Surplus Land Act
affecting property disposition including changes to the development proposal. She indicated that AB
1486 expands the Surplus Land Act to include former redevelopment agency property, which was
previously exempt. AB 1486 comes into effect on January 1, 2020, and would apply to the site if the
City and Developer were not in a binding agreement by December 31, 2019. She indicated that staff
and the developer were still in final negotiations on the deal points of the PSA and would require the
San Mateo County Countywide Oversight Board approval. Therefore, the PSA would not be
completely approved and executed before December 31, 2019.
SPECIAL CITY COUNCIL MEETING NOVEMBER 25, 2019
MINUTES PAGE 4
Councilmember Nagales requested a presentation on AB 1486 and the impact to future projects. City
Manager Futrell will schedule a study session to discuss the new housing bills and will provide a
memo to Council.
Deputy Director of Economic & Community Development Selander indicated that the City's
inclusionary requirement of 10% increased to 15% January 2020; 36 units.
Councilmember Addiego thanked the developer for their interest in the City.
Mayor Matsumoto expressed her concern with the design. The developer indicated that
improvements to the project will continue and will be reviewed by the Design Review Board once
completed.
Motion— Councilmember Addiego/Second—Councilmember Nagales: to approve Resolution No.
161-2019 approving an Exclusive Negotiating Rights Agreement ("ENRA") between the City of
South San Francisco, and Baden Development, LLC, for the property located at 432 Baden Avenue,
and authorizing the City Manager to sign the agreement. Unanimously approved by roll call vote.
9. Report regarding Resolution No. 162-2019 approving a Purchase and Sale Agreement
between the City of South San Francisco and United Food and Commercial Workers Union,
Local 5, for the City and Former RDA -owned parcel at 323 and 329 Miller Avenue in the
amount of $1,250,000. (Heather Ruiz, Management Analyst I)
Management Analyst Ruiz presented the report and indicated that in December 2006, the former
South San Francisco Redevelopment Agency ("Former RDA") authorized execution of a Purchase
and Sale Agreement ("PSA") for purchase of 323 Miller Avenue in the amount of $700,000. The
property was conveyed to the Former RDA by Grant Deed in March 2007. The City and Former
RDA combined this property with adjacent City -owned land to construct the Garage, which was
completed in 2011.
The Former RDA owned a portion of the garage and the remaining portion owned by the City. Since
a segment was owned by the Former RDA, the property is subject to the State -approved Long Range
Property Management Plan ("LRPMP") of the Successor Agency to the South San Francisco
Redevelopment Agency. The Former RDA -owned portion, measured as a 3,500 square foot lot,
currently used for an elevator and public circulation with a small amount of unimproved commercial
space on the ground floor. Per the terms of the LRPMP, and the grant deed to the City, the Former
RDA property (323 Miller Avenue) is deed restricted to governmental/public uses.
On February 13, 2019, the City Council held a closed session to review an unsolicited Letter of
Interest ("LOI") from the United Food and Commercial Food Workers Union, Local 5 ("UFCW")
offering to purchase the vacant 7,343 square foot commercial space for $1,250,000. The City Council
directed staff to negotiate a PSA with UFCW.
Per the LRPMP, in the event that the City, as Grantee of 323 Miller Avenue, discontinues the
governmental/public restricted use, the City must distribute the net revenue from the sale of the
governmental/public use property to the taxing entities. Because the Former RDA property is
SPECIAL CITY COUNCIL MEETING NOVEMBER 25, 2019
MINUTES PAGE 5
included, the transaction would also require approval by the San Mateo County Countywide
Oversight Board.
During the past five years, the City received three offers for the vacant commercial space, of which
UFCW's offer is the highest. A space in this location would normally attract more private sector
interest; however, due to the fact that it is unfinished space, it requires an extraordinary amount of
improvements (e.g., new concrete flooring, utilities, restrooms, accessibility features, and other code
requirements) that render the space cost -prohibitive for most potential uses. Staff indicated that
UFCW's offer is equal to or in excess of fair market value, the City commissioned the appraisal firm
of Watts, Cohn, and Partners to perform an appraisal of the vacant commercial space. The appraiser
determined that the market, as -is value of the space is $1,250,000
When the garage was constructed, parking spaces were not set aside for this unit. Because of this, the
LOI requests fifteen (15) dedicated parking spaces. Instead, UFCW will purchase ten (10)
unrestricted, monthly parking permits at the published rate for the Miller Garage for twenty five (25)
years. This arrangement is referenced in the PSA and will be reflected in the Conditions of Approval
associated with UFCW's Minor Use Permit for the proposed office use in the property.
As part of the condominium mapping process, the City will also draft and record Covenants,
Conditions, and Restrictions (CC&R). These CC&Rs will define roles, responsibilities and costs
associated with maintenance of shared facilities and utilities. Economic and Community
Development and City Attorney's Office will work closely with staff in Facilities and Maintenance,
as well as UFCW, to arrive at a complete set of CC&Rs. UFCW anticipates beginning construction
for tenant improvements in January 2020 with completion by June 2020. They expect to occupy the
property as early as July 2020.
The vacant commercial space totals 7,343 square feet. The Former RDA portion measures 2,069
square feet or 28.18% of the total space. These measurements are for the interior condominium space
being sold, and do not include the area used for the garage elevator and stairs. As such, the taxing
entities will receive their portion of $352,250 (i.e., 28.18% of the net unrestricted sales proceeds of
$1,250,000).
The sales proceeds would be distributed proportionately between the City -owned portion and Former
RDA portion of the vacant commercial space. The City would receive all of the net sales proceeds for
the City -owned portion (estimated at approximately $897,750) plus the City's share of net proceeds
for the Former RDA portion (estimated at approximately $58,826) for a total combined net sale
proceeds of approximately $956,750. In addition, City and Buyer entered into a reimbursement
agreement in which the City will be reimbursed for time and costs spent on the project.
Motion— Councilmember Addiego/Second—Vice Mayor Garbarino: to approve Resolution No.
162-2019 approving a Purchase and Sale Agreement between the City of South San Francisco and
United Food and Commercial Workers Union, Local 5, for the City and Former RDA -owned parcel
at 323 and 329 Miller Avenue in the amount of $1,250,000. Unanimously approved by roll call vote.
CLOSED SESSION
10. Closed Session: Conference with Legal Counsel - Anticipated Litigation
SPECIAL CITY COUNCIL MEETING NOVEMBER 25, 2019
MINUTES PAGE 6
(Pursuant to Government Code Section 54956.9)
Initiation of Litigation: One potential case
(Sky Woodruff, City Attorney and Christina Fernandez, Assistant to the City Manager)
11. Conference with Real Property Negotiators
(Pursuant to Government Code 54956.8)
Properties: 241 Grand Avenue (Parking Lot #4) (APN 012 316 040)
Agency Negotiators: Julie Barnard
Negotiating Parties: City of South San Francisco and Billy and Kosta Panoutsopoulos
Under Negotiation: Price and Terms
12. Closed Session: Conference with Legal Counsel - Existing Litigation
(Paragraph (1) of subdivision (d) of Government Code Section 54956.9)
Name of Case: James Hale v. City of South San Francisco
Workers' Compensation Appeals Board Case Number: ADJ9330348
Name of Case: Robby Chon v. City of South San Francisco
Workers' Compensation Appeals Board Case Number: ADJ 10927431
Time entered Closed Session: 9:45 p.m.
Open Session Resumed: 10:52 p.m.
Report out of Closed Session by Mayor Matsumoto: Direction given. No reportable action.
ADJOURNMENT
Being no further business Mayor Matsumoto adjourned the meeting at 10:53 p.m. in honor of Steven
White and Roy Hansen.
Respectfully submitted by:
Rosa G a Aco , CMC, CPMC
City Clerk
Approved:0z / �'Z/ '2020
Approved:
4� Gam.
4RichdZG,a,rbarino
Mayor
3MUTAL Ui i Y WUNUIL MEETING NOVEMBER 25, 2019
MINUTES PAGE 7