HomeMy WebLinkAboutMinutes 2020-07-22 @6:31SANS MINUTES
SPECIAL MEETING
U O
CITY COUNCIL
�4LIFotNCITY OF SOUTH SAN FRANCISCO
WEDNESDAY, JULY 2252020
6:31 p.m.
Teleconference via Zoom
City Council conducted this meeting in accordance with
California Governor Newsom's Executive Orders N-25-20 and
N-29-20 and COVID-19 pandemic protocols.
CALL TO ORDER Mayor Garbarino called the meeting to order at 6:31 p.m.
ROLL CALL Present: Councilmembers Matsumoto, Nagales, and Nicolas,
Vice Mayor Addiego, and Mayor Garbarino.
AGENDA REVIEW
No Changes.
REMOTE PUBLIC COMMENTS — comments are limited to items on the Special Meeting Agenda.
1. Members of the public wishing to participate were encouraged to submit public comments in
writing in advance of the meeting to all-cc@ssfnet by 4:31 p.m. on Wednesday, July 22,
2020. The following public comments were received:
None
ADMINISTRATIVE BUSINESS
2. Report regarding the creation of a Management Fellow position to support the Mayor's
Commission on Racial and Social Equity (Leah Lockhart, Human Resources Director)
Human Resources Director Lockhart introduced the report and provided background information
the formation of the Mayor's Commission on Racial and Social Equity. In order to provide staff
support for the Commission, staff recommends the creation of a management fellow opportunity for
a final -year graduate student or recent graduate with a Master's degree in the field of public policy,
public health, social work or other related fields with an academic focus on racial equity and
inclusion in a variety of contexts. The Management Fellow would be expected to bring current
knowledge and understanding of successful policies and best practices in the area of community
racial equity initiatives, possess research, analytical, and organizational skills, and be able to work
effectively and collaboratively with a variety of City staff and members of the public. The
management fellow will report directly to the City Manager, with mentorship and guidance from
other City executive staff members.
The Management Fellow would be employed on an hourly, at -will basis with compensation at a rate
of $46 - $50 per hour depending on graduate status, equivalent to the City's Management Analyst I
classification. Benefits include the option to enroll in the City's health plan with 75% premium
contribution by the City. While scheduled hours may vary, it is estimated that the position will
work an average of 35 hours per week between early September, 2020 through mid-July, 2021.
Upon Council approval, recruitment and outreach will be conducted with regional universities with
related graduate programs, with an application deadline of August 7, 2021. From there, review and
selection process will be conducted by staff and designated Commission members. It would be
anticipated that the selected applicant would begin work by early September.
The cost of one hourly Management Fellow position as proposed above is approximately $86,000 -
$104,000 depending on hourly rate and total number of hours of work. In the 2020-2021 Fiscal
Year Operating Budget, Council approved $185,000 in funds transferred to establish the
Community Action Fund within the City Manager's office. These funds will be used to create the
Management Fellow position and to support the work of the Commission.
Councilmember Matsumoto requested clarification on the funding for the Management Fellow
position. Human Resources Director Lockhart stated that the funding was allocated to the City
Manager's budget from a program the police department would no longer operate. City Manager
Futrell provided an overview the staff and resources that would provide support for Mayor's
Commission.
Motion —Councilmember Nicolas/Second—Councilmember Nagales: to approve by motion, the
creation of a one-year Management Fellow position fund to support the Mayor's Commission on
Racial and Social Equity and related City initiatives, by roll call vote: AYES: Councilmembers
Matsumoto, Nagales and Nicolas, Vice Mayor Addiego and Mayor Garbarino; NAYS: None;
ABSENT: None; ABSTAIN: None
3. Presentation providing a market update and review of the City's investment portfolio. (Janet
Salisbury, Finance Director, and Jeff Probst, Chandler Asset Management)
Finance Director Salisbury introduced Jeff Probst, Chandler Asset Management and Frank Risso,
City Treasurer to provide a market update and review of the City's investment portfolio. Jeff Probst
provided background information on the current economy given the COVID-19 pandemic.
Investors sought safety during the first part of the COVID-19 crisis and saw that the US Treasury
yields set new all-time lows in a dramatic fashion. The entire yield curve closed on March 9, 2020
with yields under 1% (except the fed funds rate). Since then yields on long maturity Treasury
securities have rebounded above 1%. In reaction to market uncertainty, the Federal Reserve made
two emergency fed funds rate cuts The Federal Reserve cut fed funds rate 50 basis points (0.50%)
on March 3rd and 100 basis points (1.00%) on March 15th. The Federal Reserve also acted in
unprecedented ways to support the economy and markets using nearly every tool in their toolbox.
The Federal Reserve created several liquidity facilities and has purchased over $2 trillion in
government securities since March.
The City's portfolio is composed of a mix of high-quality fixed income securities that performed
well during recent periods of market volatility. The US Treasury yields fell by nearly 150 basis
points (1.50%) over the past six months and interest rates were expected to remain low as prospects
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MINUTES PAGE 2
for growth, inflation and employment remain challenging. If the current interest rate environment
persisted for an extended period, it would be expected that the investment portfolio interest income
to decrease.
The unemployment rate decreased to 11.1% in June from 13.3% in May, still at a historically very
high level. The initial jobless claims and continuing claims provide weekly data points on the health
of the labor market. The trajectory of both indicators are positive, but both are at historically very
high levels. The first quarter of Gross Domestic Product (GDP) was at -5.0%, which was below
expectations and showed that COVID-19 was having a severe impact on the economy before most
Shelter In Place orders were mandated. The expectation was that the third quarter would be positive,
but the magnitude of the positive reading was dependent on containing the spread of COVID-19.
The City's portfolio was very highly rated and over the past three months the average rating of the
portfolio had not changed, was still mid to high AA rated. The portfolio had performed well over
the past 12 months and returned over 5%.
Councilmember Matsumoto inquired about the total value of the portfolio. Jeff Probst stated that the
long-term portfolio was about $150 million dollars and the short-term account was about $30
million dollars.
ADJOURNMENT
Being no further business Mayor Garbarino adjourned the meeting at 6:58 p.m.
Respectfully submitted by:
Cindy 'vila
AssistWnt City Clerk
Appro ed by:
i fav,
Ric and Garbarin
Mayor
Approved by the City Council: 0 8 / 24 / 20 2-0
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