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HomeMy WebLinkAboutMinutes 2021-06-15 @5:00xSA"F MINUTES �' SPECIAL MEETING F f7 U O CITY COUNCIL c9LIFO CITY OF SOUTH SAN FRANCISCO TUESDAY, JUNE 15, 2021 5:00 p.m. Teleconference via Zoom City Council conducted this meeting in accordance with California Governor Newsom's Executive Orders N-29-20 and N-63-20 and COVID-19 pandemic protocols. CALL TO ORDER Mayor Addiego called the meeting to order at 5:00 p.m. ROLL CALL Present: Councilmembers Coleman, Flores, and Nicolas, Vice Mayor Nagales, and Mayor Addiego. AGENDA REVIEW No changes. PUBLIC COMMENTS — comments are limited to items on the Special Meeting Agenda. Members of the public wishing to participate were encouraged to submit public comments in writing in advance of the meeting via eComment by 3: 00 p.m. on the day of the meeting. None ADMINISTRATIVE BUSINESS 1. Report regarding the City of South San Francisco Operating Budget for Fiscal Year 2021- 22. (Janet Salisbury, Finance Director) Director of Finance Salisbury presented the report and provided an outline of the Operating Budget for Fiscal Year 2021-2022. She indicated that in 2017, the city made the strategic decision to switch from a one-year to a two-year operating budget cycle. The current fiscal year (FY) 2020-21 is the second year of the biennial operational budget for FY2019-21. However, in response to the worldwide economic crisis caused by the COVID-19 pandemic, considerable revisions were made to both the FY 2019-20 and FY 2020-21 budgets. As a result, instead of a biannual budget for the following fiscal year, staff is pursuing an annual budget for FY 2021-22. Once the economy shows signs of stabilization and longer-term recovery, the goal is to resume the two-year budget cycle, as biannual budgeting often necessitates a longer commitment of policy direction and funding levels. The General Fund is the City's largest and most important operational fund, and it is where most the city's vital services are budgeted, including Economic and Community Development, Fire, Library, Parks and Recreation, Police, Public Works, and City Administration. The operating shortfall and additional capital improvement projects for FY 2020-21 were expected to be financed from the prior year's General Fund surplus when the FY 2020-21 was adopted (FY 2019-20). The deficiency in property tax in lieu of Vehicle License Fee is one of the most significant unanticipated monetary considerations to emerge in the current fiscal year 2020-21. (VLF). Simply put, there is a gap in the amount of property tax available for the VLF due to cities and county due to a decline in the number of non -basic aid schools in the County. The sum payable in VLF for South San Francisco in FY2020-21 is $8.6 million. However, the city will only receive $4.9 million this year, resulting in a $3.7 million VLF deficiency. In August 2021, the city will file a claim with the State for the VLF shortfall, but whether the city will be able to collect on that claim will be determined by the State's budget appropriation. Stronger earnings in other areas, as well as strict expenditure controls at the departmental level, are expected to mitigate the negative effects of the $3.7 million in VLF shortfall, according to staff. However, until the books are closed, and the accounts audited, the exact results for the current fiscal year will not be known. The Finance Department estimates operating revenues of $109,487,658 million (not including carryover purchase orders) and operating expenditures of $112,079,632, with a net operating shortfall of $2,600,000 to be covered by the fund balance available from the FY2019-20 surplus and/or federal stimulus available through the American Rescue Plan. With a vast industrial base based by the world's largest biotechnology research facility, South San Francisco is well positioned to recover economically from COVID-19. The negative economic impact of COVID-19 is likely to last through FY 2021-22, when businesses recover, restaurants reopen, domestic and international air traffic improves, and hotel occupancy rises. With estimated receipts of $108,797,568, net of any carryover purchase orders, and expenditures of $112,084,085 in Fiscal Year 2021-22, the City's General Fund will require an additional $3,290,000 to achieve a balanced budget. The remaining fund balance from the FY 2019-20 budget surplus should be applied to the General Fund, according to the staff. Vice Mayor Nagales requested clarification on the City Manager's budget, specifically the South San Francisco Commission on Racial and Social Equity. City Manager Futrell indicated that the Diversity Officer is a full-time position currently on hold for this fiscal year. He will complete interviews for a Graduate Fellow to serve for one year. Mayor Addiego requested clarification on the cost of a full-time Diversity Officer and part-time Graduate Fellow. He expressed his desire to fulfill the commitment made by the South San Francisco Commission on Racial and Social Equity. City Manager Futrell provided an overview of the department's budget constraints. Human Resources Director Lockhart provided an overview of staffing costs. Vice Mayor Nagales inquired about the Parks and Recreation Department, Common Greens Maintenance budget, and the proposed plans to address San Mateo County's drought. Deputy Director Mediati provided an overview of the department's plan to address the expected drought. Assistant City Manager Ranals provided an overview of the city's former efforts during the previous drought. She noted that the city won an award for outstanding water conservation and indicated that staff would follow the same process to address the expected drought. SPECIAL CITY COUNCIL MEETING JUNE 15, 2021 MINUTES PAGE 2 Vice Mayor Nagales indicated that the South San Francisco Chamber of Commerce needs assistance due to COVID-19 impacts. Deputy Director of Economic and Community Director Selander provided an overview of funding needs and possible one-time funding. City Manager Futrell indicated that he would reach out to Executive Director Normandy to provide information on one-time funding. A consensus of the Council to approve one-time funding. Mayor Addiego requested an update on the proposed Sports Fields in the Irish Greens area downtown. Deputy Director of Parks and Recreation Mediati provided an overview of the proposed project for the area. Councilmember Coleman requested an update on the future renovation of Cypress Park. Assistant City Manager Ranals provided an overview of the project status and noted that staff continues to explore better ways to increase amenities in the area. City Manager Futrell indicated that staff would schedule a Closed Session to apprise Council. Councilmember Flores inquired about funding for the South City Shuttle and the Holiday Decoration budget. Director of Finance Salisbury indicated that the proposed budget does not include budget allocations approved on June 23, 2021. Deputy Director of Economic and Community Development provided clarification on the Holiday Decoration project. 2. Report regarding proposed Capital Improvement Program for fiscal year 2021-22. (Eunejune Kim, Director of Public Works/City Engineer and Mathew Ruble, Principal Engineer) Principal Engineer Ruble presented the report and provided an overview of the Capital Improvement Program (CIP). It lays out the city's major capital expenditures and infrastructure improvement initiatives. When creating the CIP, city departments identify needed improvements and prioritize project implementation. The projected CIP budget for fiscal year (FY) 2021-22 is $280.1 million, including $126.3 million in new appropriations and $153.8 million in ongoing project appropriations from previous years. There are 158 projects in the FY 2021-22 CIP: 19 new projects, 32 potential projects, and 107 ongoing projects. Public Facilities, Parks, Storm Drains, Sanitary Sewer, Streets, and Traffic are the six project types included in the CIP. Principal Engineer Ruble provided an overview highlighting proposed new projects and requests for additional funding for ongoing programs. Councilmember Coleman requested a report of citywide sound wall projects. City Manager Futrell indicated that he would provide the information to Council in a Thursday memo. Vice Mayor Nagales inquired about the feasibility study of the Downtown Parking Garage and the Westborough Preschool expansion. City Manager Futrell provided an update on the status of the garage and noted that the consultant would come to Council with their findings and recommendation in the near future. Assistant City Manager Ranals indicated that the project is called the "Carter Park Preschool." She noted that they are in the design process with SIM Architects, with construction costs higher than anticipated. Staff continues to explore the number of classrooms needed to accommodate 60 children and may need to cut back on amenities to stay within budget. Once the analysis is complete, staff will bring the report back to the Council. Councilmember Flores inquired about the feasibility of a recreation center in the Old Town community. City Manager Futrell indicated that staff continues to explore that option for members of the community. SPECIAL CITY COUNCIL MEETING JUNE 15, 2021 MINUTES PAGE 3 CLOSED SESSION Entered Closed Session: 6:34 p.m. Resumed from Closed Session: 7:05 p.m. 3. 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; Mid -management Unit - Teamsters Local 856; and International Union of Operating Engineers, Local 39 Report out of Closed Session by Mayor Addiego: Council gave direction. No action taken. ADJOURNMENT Being no further business Mayor Addiego adjourned the meeting at 7:06 p.m. Respectfully submitted by: osa Govea Acosta, CMC, CPMC City Clerk Approved: OS/J/ �� Approved: -x'j"4jj'4 Mark ddiego Mayor SPECIAL CITY COUNCIL MEETING JUNE 15, 2021 MINUTES PAGE 4