HomeMy WebLinkAboutMinutes 2020-02-12 @7:00MINUTES
_ REGULAR MEETING
- CITY COUNCIL
gLIFO xe�" CITY OF SOUTH SAN FRANCISCO
Meeting held at:
MUNICIPAL SERVICES BUILDING
COUNCIL CHAMBERS
33 ARROYO DRIVE
SOUTH SAN FRANCISCO, CA
WEDNESDAY, FEBRUARY, 12, 2020
7:00 P.M.
CALL TO ORDER 7:00 p.m.
ROLL CALL Present: Councilmembers Matsumoto, Nagales, and Nicolas.
Vice Mayor Addiego and Mayor Garbarino.
PLEDGE OF ALLEGIANCE
Pledge of allegiance led by Mayor Garbarino.
AGENDA REVIEW
City Manager Futrell recommended moving Public Hearing Item No. 5 after Public Comments on
the agenda in deference to the members of the public in attendance. The Council agreed.
ANNOUNCEMENTS FROM STAFF
Community Programs Manager Boles announced that April 1, 2020, is National Census Day and
encouraged members of the community to be counted.
PRESENTATIONS
1. Presentation of a Certificate of Recognition to the City of South San Francisco -San Bruno
Water Quality Control Plant for being named Plant of the Year -Medium as part of the
California Water Environment Association Awards Program. (Richard Garbarino, Mayor)
Councilmember Matsumoto read into the record a proclamation to the South San Francisco Water
Quality Control Plant and congratulated staff for their hard work. Council congratulated staff Brian
Shumacker, Plant Superintendent and he provided an overview of the requirements needed in order
to receive the prestigious recognition. He thanked the California Water Environment Association
for the award and Water Quality Control Plant staff introduced themselves.
Nick Talbot Assistant Plant Superintendent
Javier Vasquez Administrative Assistant
Andrew Wemmer Sr. Environmental Compliance Supervisor
Louie Manio Lead Mechanic
Ryan Anderson Plant Operator
Natasha Gutierrez
Administrative Assistant
Jesus Govea
Plant Utility Worker
Christine Kopti
Laboratory Chemist
2. Presentation of a proclamation recognizing and celebrating the Centennial of the 19th
Amendment to the U.S. Constitution and the 100th Anniversary of the League of Women
Voters and their historic role in the Women Suffrage Movement. (Richard Garbarino,
Mayor)
Councilmember Nicolas read into the record a proclamation honoring the League of Women Voters
of North and Central San Mateo County. She introduced Jackie Jacobberger and Marie Baldisseri,
Board Members of the League of Women Voters of North and Central San Mateo County. They
thanked Council for the recognition and encouraged everyone to join the League of Women Voters.
PUBLIC COMMENTS
None
PUBLIC HEARING
5. Report regarding approval by the City of South San Francisco of the issuance by the City of
South San Francisco Public Facilities Financing Authority of its Lease Revenue Bonds,
Series 2020A. (Janet Salisbury, Director of Finance)
Public hearing opened: 7:13 p.m.
Director of Finance Salisbury presented the report and provided an overview of the issuance of
lease revenue bonds. She stated that the lease revenue bonds, Series 2020A (the "2020A Bonds")
were being issued to finance certain costs of the first phase of the civic center campus project,
consisting of a new police station facility. In connection with the issuance of the 2020A Bonds, the
city will enter into a Ground Lease with the Authority, pursuant to which the city will lease certain
city -owned property (currently consisting of the Miller Parking Garage (excluding the commercial
office space on the ground floor) and the Orange Memorial Park) (together, the "Leased Property")
to the City of South San Francisco Public Facilities Financing Authority (the "Authority"). Under a
Lease Agreement, the Authority will lease the Leased Property back to the city. Under the Lease
Agreement, the city will agree to make rental payments to the Authority for the beneficial use and
occupancy of the Leased Property. Such rental amounts will be calculated to be sufficient in time
and amount to pay the debt service payments on the 2020A Bonds.
Based on a preliminary pricing analysis reflecting market conditions as of January 31, 2020 with a
50 basis point cushion, the 2020A Bonds have an estimated par amount of $45.6 million and will be
issued at an estimated premium of approximately $10.3 million for total proceeds of approximately
$54.9 million. Such proceeds will be used to fund $54.6 million in project costs and approximately
$300,000 of issuance costs. The final maturity of the 2020A Bonds is June 1, 2046. Certain
estimates with respect to the financing are set forth below. Such figures are estimates and the final
principal amount and interest cost for the 2020A Bonds will be determined on the actual sale date of
the 2020A Bonds, which is currently scheduled for late February.
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The 2020A Bonds will be sold on a public offering basis (sale of bonds on the open market), by
Stifel, Nicolaus & Company, Incorporated, as representative of Citigroup Global Markets, Inc., and
Raymond James & Associates, Inc. (together, the "Underwriters") pursuant to a Bond Purchase
Agreement among the Authority, the city and the underwriters. The sale of the 2020A Bonds is
expected to occur in late February with a closing/settlement in early March. The foregoing dates are
subject to change depending on market conditions.
The issuance of the 2020A Bonds are consistent with the city's strategic priorities. The financing
will bolster the city's public safety and allow the city's Police Department to provide better service
to the community.
Matt Butler, a resident of South San Francisco addressed the Council to express his opposition to
the city issuing bonds.
Mina Richardson, a resident of South San Francisco addressed the Council to express her concerns
with the city issuing bonds.
Public hearing closed: 7:29 p.m.
Vice Mayor Addiego inquired whether staff explored the option of using general obligation bonds.
City Manager Futrell provided an overview of general obligation bonds and expressed his
satisfaction with the mechanism being used to fund the project.
Councilmember Matsumoto shared her experience serving on the board of the Transportation
Authority and suggested the city adopt a debt policy. Director of Finance Salisbury indicated that
the city had already adopted a debt policy and would provide a copy to Council.
Councilmember Matsumoto inquired what funding options would be available in the event of
recession. Director of Finance Salisbury indicated that the city would have enough funds to move
forward due to the debt to income ratio. City Manager Futrell indicated that an analysis was made
that modeled a future economy crash, similar to previous ones in recent history and funding would
still be ample.
Councilmember Nagales shared that the city has a very strong financial standing and thanked staff
for preparing models of a possible recession. He expressed gratitude for easing his fears and that it
spoke volumes of the city's financial position.
Vice Mayor Addiego indicated being comfortable approving the item at hand due to his former
experience with bonds and the benefits it would bring to the community.
Mayor Garbarino indicated being very comfortable with the investment, noting there would always
be some element of risk when investing. He shared his experience as a councilmember in 2008 and
the impacts it had to the market.
Motion Councilmember Nicolas/Second Vice Mayor Addiego: to approve Resolution No. 20-
2020. Approved by the following roll call vote: AYES: Councilmembers Matsumoto, Nagales and
Nicolas, Vice Mayor Addiego and Mayor Garbarino; NAYS: None; ABSENT: None; ABSTAIN:
None.
Meeting recessed: 7:44 p.m.
Meeting resumed: 7:48 p.m.
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MINUTES PAGE 3
COUNCIL COMMENTS/REQUESTS
Councilmember Nicolas thanked the Public Library Department staff for a successful event held
over the weekend and the Public Works Department for facilitating the removal of a generator. She
encouraged the community to attend the South San Francisco Women's Conference on Saturday,
March 7th from 9am to 2pm at the Joseph A. Fernekes Recreation building and asked that the
meeting be adjourned in honor of Frances Charles Cianciolo, a Mater Dolorosa Parishioner.
Councilmember Nagales expressed his concerns with the Regional Housing Needs Assessment
numbers and the city's requirement to fulfill the needs. He read into the record the nominees for the
volunteer citation award.
Councilmember Matsumoto requested information of the current waitlists for the various Parks and
Recreation programs and classes. She expressed her concerns with the management lanes and the
possible impacts to the city. She requested a copy of the confidential emergency contact list and for
the Police Department to follow up on parking issues due to the construction on Appian Way.
Vice Mayor Addiego attended the Airport Community Roundtable meeting and gave a report out.
He expressed his gratitude with Public Works Department staff in addressing graffiti along the 101
Corridor and Dubuque Avenue. He shared the passing of retired South San Francisco Police Captain
Raymond McKeon.
Mayor Garbarino attended the Association of Bay Area Governments meeting and gave a report
out. He requested information on tax preparation services for seniors. Assistant City Manager
Ranals provided the information for free tax preparation services to residents at the Magnolia Senior
Center. Mayor Garbarino requested to adjourn the meeting in memory of Barbara Lewis, longtime
resident and former employee of the South San Francisco School District.
CONSENT CALENDAR
The City Clerk duly read the Consent Calendar, after which Council voted and engaged in
discussion of specific items as follows: Mayor Garbarino pulled item #3.
Item 3: Minutes of the meeting for December 11, 2019 were pulled and would be brought back to
Council at a future meeting.
3. Motion to approve the Minutes for the meetings of November 25, 2019, December 3, 2019,
December 11, 2019 and December 20, 2019. (Rosa Govea Acosta, City Clerk)
4. Report regarding Resolution No. 19-2020 declaring the City -owned real property located at
109 Longford Drive (APN O 10-071-05 0) to be surplus, and authorizing the City Manager to
initiate the process of disposing of the property pursuant to the Surplus Land Act and
marketing of the property for sale at a market rate price if the City does not negotiate the
sale of the property to a preferred buyer under the Surplus Land Act. (Deanna Talavera,
Management Analyst)
Motion— Vice Mayor Addiego—Councilmember Nagales: to approve Consent Calendar items 3
(excluding Minutes of December 11, 2019) and 4. Unanimously approved by roll call vote.
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PUBLIC HEARING- continued
6. Report regarding an Ordinance approving the First Amendment to the Second Amended and
Restated Development Agreement to the Gateway Business Park Master Plan Project
between the City of South San Francisco and BMR -700 Gateway LP, BMR -750, 800, 850
Gateway LP, BMR -900 Gateway LP, and BMR -1000 Gateway LP to make minor
modifications to the previously approved Development Agreement, and determining that no
subsequent environmental document is necessary pursuant to the criteria of Section 15162 of
the California Environmental Quality Act Guidelines. (Billy Gross, Senior Planner)
Public hearing opened at 8:11 p.m.
Senior Planer Gross presented the report and provided background information on the project. The
City and the applicant have negotiated a First Amendment to the Second Amended and Restated
Development Agreement, which would reflect the modifications related to the replacement
childcare obligation. He stated that the proposed First Amendment to the Second Amended and
Restated Development Agreement is consistent with the originally entitled project in 2010 and the
revised project in 2013. The amendment creates more flexibility for the City to determine what
childcare facilities will best serve its residents, where they should be located, and how the funds
should be directed. There are no new or increased environmental impacts that would occur as a
result of the proposed First Amendment to the Second Amended and Restated Development
Agreement.
Accordingly, staff recommends that the City Council follow the recommendation of the Planning
Commission to conduct a public hearing and introduce an Ordinance approving the First
Amendment to the Second Amended and Restated DA (DAA 19-0003), and waive further reading.
Public hearing closed at 8:15 p.m.
Councilmember Matsumoto inquired about the proximity restriction as she is concerned with the
proposed expansion and limited childcare facilities. She would like staff to plan proactively and not
preclude relocation of a childcare facility. Senior Planner Gross indicated that removal of the
proximity restriction would designate the funding strictly to childcare.
Councilmember Nagales expressed his concerns of not providing childcare for. future developments
east of 101 and would like collaboration between biotech companies and other industries to address
future childcare needs.
Vice Mayor Addiego inquired about the cost of in -lieu fees and whether the city will address
childcare needs of the community and commuters. Assistant City Manager Ranals indicated that the
waitlist does not distinguish between residents and nonresidents.
Motion Councilmember Matsumoto/Second Vice Mayor Addiego: to introduce an Ordinance
approving the First Amendment to the Second Amended and Restated DA (DAA19-0003), and
waive further reading. Approved by the following roll call vote: AYES: Councilmembers
Matsumoto, Nagales and Nicolas, Vice Mayor Addiego and Mayor Garbarino; NAYS: None;
ABSENT: None; ABSTAIN: None.
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7. Report regarding consideration of a Development Agreement, a Relocation Agreement, and
Sign Permit to allow the installation of a 80 foot tall, double-faced, digital billboard on
property located at 345 Shaw Road, and determining that the 2015 IS/MND continues to
serve as the applicable environmental review document pursuant to CEQA. (Billy Gross,
Senior Planner)
Public hearing opened at 8:28 p.m.
Senior Planner Gross reported out that due to unforeseen delays, the applicant has requested that
additional time be provided before final action can be taken on their application. Therefore, staff
recommends a motion to open the public hearing and to continue the item to the March 11, 2020
City Council meeting.
Public hearing closed at 8:29 p.m.
ITEMS FROM COUNCIL — COMMITTEE REPORTS AND ANNOUNCEMENTS
None
CLOSED SESSION
Entered into closed session: 8:30 p.m.
8. Conference with Legal Counsel -Anticipated Litigation
(Pursuant to Government Code section 54956.9(d)(2))
Significant Exposure to Litigation: One Potential Case
(Sky Woodruff, City Attorney and Christina Fernandez, Assistant to the City Manager)
9. Closed Session: Conference with Legal Counsel -Existing Litigation
(Paragraph (1) of subdivision (d) of Government Code Section 54956.9)
Name of Case: Kashiwa Fudosan America, Inc. v. City of South San Francisco
San Mateo County Superior Court Case Number: 18 -CIV -01728
10. Conference with Labor Negotiators
Agency designated representatives: Leah Lockhart, Human Resources Director, Donna
Williamson, Liebert Cassidy Whitmore
Employee organization: AFSCME, Local 829; Confidential Unit - Teamsters Local 856;
International Union of Operating Engineers, Local 39; and Mid -management Unit -
Teamsters Local 856; IAFF Local 1507
Resumed from closed session: 9:48 p.m.
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ADJOURNMENT
Being no further business, Mayor Garbarino adjourned the meeting at 9:49 p.m. in memory of
Frances Charles Cianciolo and Barbara Lewis.
Respectfully submitted by:
Cindy A Aa
Assistant City Clerk
Approved by:
7
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Ric and -Gr arbari Wo
Mayor
Approved by the City Council: �f / � / 2,020
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