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HomeMy WebLinkAboutMinutes 2008-01-09 MINUTES CITY COUNCIL CITY OF SOUTH SAN FRANCISCO REGULAR MEETING WEDNESDAY, JANUARY 9,2008 MUNICIPAL SERVICES BUILDING COMMUNITY ROOM 33 ARROYO DRIVE CALL TO ORDER: 7:30 p.ln. (Cassette Tape No.1) ROLL CALL: Present: Councihnen Addiego, Garbarino and Mullin, Mayor Pro Ten1 Matslnnoto and Mayor Gonzalez Absent: None PLEDGE OF ALLEGIANCE: Led by Mayor Gonzalez INVOCATION: Pastor J OIUl Cantley, Grace Covenant Church PRESENTATIONS . Recognition of Ballet Instructor Maria Sprelnich, recipient of the Peninsula Arts Council Diamond Award for AIis Educator: Mayor Gonzalez acknowledged Ms. Spren1ich's achieve1nents and dedication to her students. Ms. Spre1nich thanked Council for its cOlnn1itn1ent to arts education and urged continued support of mis progran1S. . Lindenville Pun1p Station Update: Director of Public Works White updated Council on the progress of installation of the Lindenville Stonn Water Plnnp Station at 27 South Linden Avenue. Director White then provided a visual presentation including photographs of locations in the Lindenville area where pipe would be installed, the pun1ps the area currently relies upon and installation of the plnnp station. Mayor Pro Te1n Matsun10to questioned whether the Departn1ent had received invoices for arnounts above the original bids and whether there were delivery delays due to current industry-wide supply issues relating to concrete and steel. She further questioned whether the pun1p station would n1itigate sonle of the flooding observed during the recent stonn. Director White responded that invoices were not reflecting higher than expected prices. Further, change orders were related to other unforeseen conditions. Regarding,lnitigation of flooding, Director White explained the pun1p station is expected to evacuate water at a capacity 10 tin1es greater than current capabilities. Mayor Gonzalez questioned storage capacity and whether the water collected could be reused. He also requested clarification as to when the project would be cOlnpleted. Director White responded the stnlcture will hold up to 125 gallons of water. He explained the water likely will not be suitable for re-use because it is not irrigation quality. The project is expected to be cOlnplete no later than October 2008. The Public Works Departnlent intends for the plnnp station to be in working condition for next winter. . Ferry Ternlinal Business Plan - presented by Steve Castleberry, WTA Mr. Castleberry presented a visual sun1111ary of financial plmuling estimates related to the proposed South San Francisco Ferry Service. As the visual was presented, Mr. Castleberry highlighted several points as follows: Ridership forecast for the South San Francisco Ferry Plan: WTA subjected the ridership forecast nlethodology to substantial independent scnltiny and review because it drives the revenue forecast for the financial plan. The review confinned that the forecast was based upon reasonable methodologies and represented a cost effective approach. Ferry Operating Costs: Mr. Castleberry pointed out that fuel costs represent 25% and crew wages represent about 17% of estilnated operating costs. Hourly operating cost estilnates were derived froln figures reflected on the operating costs table. Ten-Year Cash Flow for Ferry Service: Ten-year cash flow nUlnbers were derived fron1 hourly operating cost estilnates. Expenses were projected to run between 2.5 and 3 ll1illion dollars per year. WT A estilnated a fare of $5.40 and expects to generate 1 to 1. 5 lnillion dollars fron1 fares. Transit effectiveness: Mr. Castleberry noted that South San Francisco ridership is estiInated to be one of the higher bay area riderships in costs per passenger and fare box recovery. WTA estilnated fare box recovery for South San Francisco as $6.50 per passenger- a good n1easure of transit effectiveness. Ferry Capital Costs: Total project capital costs are estilnated at 46 Inillion dollars with a funding sholifall of 5 n1illion dollars. Lease between WT A and San Mateo County Harbor District: The lease includes a roughly 3.3 million dollar paYlnent to the San Mateo County Harbor District which mnortizes to an mmual rent of approxinlately $60,000 over the 55 year tenn of the lease. Mr. Castleberry concluded with a SUlnlnary of next steps as follows: 1) continue with construction of the South San Francisco ferry vessels; 2) finalize the allocation of San Mateo County Measure A funding; 3) cOlnplete tenninal design and pennitting; 4) execute the final lease; 5) award construction contract for ferry tenninal piers in Spring 2008; 6) secure additional funding in 2009; and 7) award the relnaining construction contract for the float. Councihnan Mullin requested identification of options to close the funding gap and the State Agency from which WT A sought funding. He further questioned whether the current state budget situation would impact expected funding. Councihnan Garbarino questioned whether it would be possible to use state and federal funding to close the funding gap. Mr. Castleberry responded by identifying two funding options. First, he stated that WT A believed it would have access to a certain allocation of 25 lnillion dollars in Proposition IB funds through the state OES by SUlmner of 2008. He opined this allocation would not be REGULAR CITY COUNCIL MEETING MINUTES JANUARY 9, 2008 PAGE 2 in1pacted by the state budget shortfall. WT A lnight also pursue federal funding in the mnount of 1- 2 million dollars per year. Mayor Pro Tem Matsun10to questioned infonnation pertaining to ridership demographics. She further sought identification of the service's hours of operation and questioned how the schedule would n1eet the delnands of riders bound by biotech industry work schedules. Mr. Castleberry estilnated ridership would priInarily consist of East Bay residents who work in the Oyster Point area. At least 80% of the ridership would likely have ties to the Biotech Industry. Regarding hours of operation, Mr. Castleberry estin1ated ferries would run between heavy n10n1ing peak hours of 6:00 to 9:30 a.nl. and evening peak hours of 4:00 to 7:30 p.ln. He flniher stated the service could n1eet significant delnand after peak hours. Mayor Pro Teln Matsun10to further questioned the WTA 10-year cash flow analysis. She pointed out that the old figure reflected a guarantied 3 lnillion dollar/year subsidy dedicated to the South San Francisco Ferry Service under Regional Measure 2. The new figure designates 15.3 million dollars/year to all ferry operations. She expressed concenl that South San Francisco might have to raise funds to recoup this sholifall. She further noted that the 10-year cash flow analysis did not account for cost escalation. Mr. Castleberry responded that SB 976 took funds that had been allocated to specific ferry services and put theln in a single pot. He acknowledged the associated risk, but pointed out that there is an upside in that the City's allocation is no longer constrained to just 3 n1illion dollars. He explained that the plan affords cost escalation up to 3 Inillion dollars and noted the estilnate is currently under this cap, which in any event is now gone under SB 976. Mayor Pro Teln Matsulnoto then questioned the operating cost figure related to shuttle service. She opined it seen1ed low and requested infonnation as to the source of funding. Mr. Castleberry explained the shuttle service contract had not been negotiated. WT A expects to pay whatever is needed to n10ve elnployees to and froln the ferry service. Mayor Pro Teln Matsulnoto noted that SB 976 includes language which n1ay authorize WET A to level asseSSlnents against the City if the service is not cost effective. Mr. Castleberry acknowledged the asseSSlnent language, but noted he interprets the legislation to be n10re focused on the ability to bond against future toll increases. AGENDA REVIEW City Manager Nagel recomn1ended Council hear Iten1 Number 14 peliaining to the Con1lnunity Developlnent Block Grant program as the first iteln under the Public Hearing section of the Agenda in order to accolnmodate the number of cOlnlnunity melnbers desiring to comlnent. Recomn1endation accepted. Noticed Agenda Item # 14 moved as Iteln # lIon Agenda. PUBLIC COMMENTS Resident Mark Nagales thanked the Depmilnent of Public Works for its efficiency in relnoving a tree that fell on a car near his hOlne during recent StOffi1S. REGULAR CITY COUNCIL MEETING MINUTES JANUARY 9, 2008 PAGE 3 Resident Tom Canley con1lnented on the City's Recycled Water Project. He opined that the project would have a positive effect on the City's water supply. He objected to Cal Water's proposed role in water distribution. He requested the City consider controlling the function and n1aintenance of water distribution services related to recycled water, which he further opined would be a revenue generator for the City's general fund. Resident Ricardo Salcedo appeared as a representative of the CPTF and the Fire Departnlent's CERT team. On behalf ofCPTF, he invited the public to an e-waste event at Fire Station 61 on Friday February 8th froln 12-5:00 p.ln. and Saturday, February 9th fron1 9-3:00 p.m. As a lnelnber of CERT, he advised the group was activated in response to elnergency situations related to recent stonns. He thank:ed City staff for responsiveness to stonl1-related conditions. ITEMS FROM COUNCIL . Alulouncelnents/Con1lnittee Reports Counciln1elnbers repolied on attendance at cOlnn1unity n1eetings and events, mU10unced upcolning events, progrmns and public in1provelnents and acknowledged City staff and the CERT temn for responsiveness to conditions caused by recent stonns. Specific itelns for fluiher action and/or consideration were set forth as follows: Councilman Mullin advised he would be subn1itting an application to serve on CCAG's Legislative COlnlnittee and would update Council when appointlnents were Inade. Councihnan Garbarino suggested setting a date for Day in the Park 2008 and requested consideration of citizen representatives on the Day in the Park Subcolnlnittee. Councihnan Addiego and Mayor Pro Teln Matsun10to requested clarification fron1 Mayor Gonzalez regarding votes he Inade at the Council of Cities event in Decelnber 2007 and particularly with respect to the Transportation Authority cities at large seat. Mayor Gonzalez explained he understood the seat on the Transportation Authority was left to his discretion and apologized if he misperceived his authority. Council confinned its policy as follows: On the first round vote to fill vacancies related to Council of Cities elections, Council would vote to select the candidate the Mayor would support. The Mayor's discretion would carry the second round. Mayor Pro Ten1 Matsulnoto noted she was appointed to the Transportation Authority as a representative of SamTrans. She fUliher lnade the following requests of City staff: 1) consideration of keeping the celebratory 100 display on Sign Hill for the entire Centennial Year; 2) a year to date breakdown of costs incurred for the Centelulial; 3) Police Departlnent attention to the area where traffic COlnes off the Westborough exit and lnerges west; 4) a "Did You Know" section of the South San Francisco quarterly newsletter that would remind citizens of safety protocols; 5) a staff summary of current energy efficient policies; 6) a repoli on the status of the Bay Trail and 7) creation of a bike lnap outlining bike walking routes, including the Bay Trail. REGULAR CITY COUNCIL MEETING MINUTES JANUARY 9,2008 PAGE 4 CONSENT CALENDAR 1. Motion to approve the Ininutes ofDecelnber 12, 2007 as revised on January 7, 2008. 2. Motion to confinl1 expense clainls of January 9,2008 in the an10unt of$6,989,522.17. 3. Resolution # 01-2008 authorizing the filing of an application with the state ofCalifonlia Resources Agency, 2007/08 EnvirOlunental Enhancelnent and Mitigation Progrmn, for $350,000 toward construction ofCentelulial Way Phase 2/3- Orange Avenue to South San Francisco Bart Station; and certifying that the City of South San Francisco will lnake adequate provisions for operation and n1aintenance. Item pulled from Consent Calendar by Mayor Pro Tem Matsumoto. 4. Resolution # 02-2008 authorizing the City Manager to execute an agreelnent with Wilson Ihrig & Associates, Inc. for the Sister Cities Boulevard Noise study. Item pulled from Consent Calendar by Mayor Pro Tem Matsumoto. 5. A Motion authorizing the sublnission ofTDA Article 3 Grant Application for Fiscal Year 2008-2009. Item pulled from Consent Calendar by Mayor Pro Tem Matsumoto. 6. Resolution # 03-2008 approving action of the Redeveloplnent Agency authorizing execution of a lease with respect to 1 Chestnut Avenue by and between the Agency and Ron Price Motors. 7. Resolution # 04-2008 authorizing acceptance of a $78,150.00 donation from Alexandria Real Estate Associates and appropriating the funds to the Fire Departn1ent budget to purchase training props and related equipment and an1ending the Fire Departlnent budget. 8. Resolution # 05-2008 authorizing acceptance of a $10,800.00 donation from the Lowes Corporation and appropriating the funds to the Fire Department budget to purchase a thennal ilnaging camera and related equipnlent and amending the Fire Departlnent budget. Item pulled from Consent Calendar by Mayor Pro Tem Matsumoto. 9. Resolution # 06-2008 authorizing a sole source purchase of the Fire Facilities and Nielsen Building Systelns Westech Insulation and Draeger Fire Silnulation Systelns and mnending the 2007-2008 CIP Budget to appropriate $580,000.00 for the project with funding fronl the Fire Donations Account. 10. Resolution # 07-2008 approving the Redeveloplnent Agency's action authorizing execution of a Subordination Agreelnent with Grand Oak Associates and State of Califon1ia Multifan1ily Housing Progrmn for the Grand Oak Housing Development. Motion- Councihnan Addiego/Second- Counciln1an Garbarino: to approve Resolutions respectively NUlnbered 3, 4, 6, 7-2008. Unanilnously approved by voice vote. REGULAR CITY COUNCIL MEETING MINUTES JANUARY 9, 2008 PAGE 5 Item Nlunber 3: Mayor Pro Teln Matsumoto requested confinnation that the additional allocation would carry the project tlu'ough the BART Station phase. Director of Recreation Ranals so cOllfinned. Motion- Mayor Pro Tenl Matsulnoto/Secolld- Councilnlan Addiego: to approve Resolution # 01-2008 authorizing the filing of an application with the State of California Resources Agency, 2007/08 Enviroillllental Enhancenlent and Mitigation Progranl, for $350,000 toward construction of Centennial Way Phase 2/3- Orange Avenue to South San Francisco Bmi Station; and certifying that the City of South San Francisco will make adequate provisions for operation and lnaintenance. Unaninlously approved by voice vote. Item Number 4: Mayor Pro Tem Matsulnoto requested confinnation for the public that this Resolution pertained to a sound wall and not a safety barrier. Associate Civil Engineer Scramalgia so confirmed. Motion- Mayor Pro Tem Matsulnoto/Second- Councilman Garbarino: to approve Resolution # 02-2008 authorizing the City Manager to execute an agreement with Wilson Ihrig & Associates, Inc. for the Sister Cities Boulevard Noise Study. Unanimously approved by voice vote. Item Number 5: Mayor Pro Tem Matsumoto requested Sf. Civil Engineer Chuck to confirm the application would be submitted in compliance with County requirements pertaining to proper color such that the application could not be denied on a technicality. Sf. Civil Engineer Chuck so confirmed. Motion- Mayor Pro Tem Matslunoto/Second- Councilman Garbarino to authorize the subnlission ofTDA Article 3 Grant Application for Fiscal Year 2008-2009. Unanimously approved by voice vote. Iteln Number 8: Mayor Pro Tem Matsulnoto requested information pertaining to the nUlnber of thennal ilnaging cameras currently possessed. She further requested the quantities that were donated to the Depmiment and cost information. Fire Chief White advised the Department has 6 elnergency units currently equipped with thenl1al inlaging canlera teclmology. This would be the ih thermal imaging camera for installation on an emergency unit. Three (3) of the cameras were purchased by donations froln various entities/individuals and 3 were purchased through funds froln a FEMA Firefighters' Grant. The units presently cost about $10,500.00. Chief White further explained thennal imaging technology permits more efficient location of persons trapped in fires and may reduce water use during fires. Motion- Mayor Pro Tem Matsumoto/Second- Councilman Garbarino: to approve Resolution # 05-2008 authorizing acceptance of a $10,800.00 donation from the Lowes Corporation and appropriating the funds to the Fire Department budget to purchase a thermal imaging camera and related equipment and amending the Fire Department budget. Unanimously approved by voice vote. REGULAR CITY COUNCIL MEETING MINUTES JANUARY 9, 2008 PAGE 6 PUBLIC HEARING 11. Conllnunity Development Block Grant Public Hearing to obtain citizens' views on housing and comlnunity develoPlnent needs for the Five Year (2008-2012) Consolidated Plan and One Year (2008-2009) Action Plan. Public Hearing Opened: 8:52 p.ln. COlnlnunity Developlnent Coordinator Adams explained the purpose of this Public Hearing was to discuss cOlnlnunity needs for the purpose of satisfying HUD requirenlents. The following entities and their representatives appeared before Council to urge consideration of their respective progranls as follows: Rosa Guerra of Shelter Network stated that it is the prinlary provider of housing and social services in San Mateo County. Shelter Network finds telnporary housing and basic necessities for fmnilies for up to 4lnonths. Victoria Mendiola of Second Harvest Food Bank explained the dangers of chronic hunger, a societal condition the entity works to cOlnbat. AIm Marquart of Project Sentinel explained it provides fair housing services to citizens and assists with enforcement of housing discrilnination laws. Project Sentinellnay be adding a tenant landlord service if La Raza Centro Legal discontinues the service. I(Yistina Knudsen of Rebuilding Together Peninsula stated the average incolne of families the entity serves is $12,000.00/year. It is kicking off a pilot program to install solar panels on hOlnes. Bruce Hanlilton of HIP Housing elnphasized the ilnpoliance of affordable housing. He stated that HIP was forced to scale back work in the City last year because Council rejected provision of CDBG funds to HIP by a 3 to 2 vote because of a loan provided to the entity. Public Hearing Closed: 9:05 p.ln. Housing and COlnlnunity Developnlent Consultant Sanchez advised this year's CDBG Grant progrmn would be different than in past years due to HUD requirements. Thus, the purpose of the public hearing at issue was to hear conl1nunity input on needs before the subcolnmittee nlade rec011Ullendations to Council regarding distribution of funds. Once Council hears the subcolnlnittee's recommendations it lnay hold another public hearing before Inaking final recolnnlendations. Councihnen Addiego, Garbarino and Mayor Pro Tem Matsumoto stated that housing priorities are ilnportant to our cOlnmunity and should be strongly considered for CDBG funding. Assistant City Manager Van DUY11 clarified that CDBG funds total roughly $600,000.00/year. Accordingly, he explained that larger housing issues are often addressed with Redeveloplnent funding. Mayor Pro Teln Matsumoto asked if the loan to HIP was executed with Redevelopment funds. REGULAR CITY COUNCIL MEETING JANUARY 9, 2008 MINUTES PAGE 7 Assistant City Manager Van DUY1l so confinned. Housing and COlnlnunity Developlnent Consultant Sanchez clarified that CDBG funds would be distributed pursuant to two plans. He explained that Councillnay be more specific with its direction to staff pertaining to the One Year Plan, but noted federally ilnposed lilnitations on funding allocations. Councihnan Addiego explained he did not believe that the priorities identified under the 5 year plan in the staff repoli needed to be re-written. He noted his cOlnlnitment to lnaking housing a priority and expressed disappointInent that HIP housing did not receive funding last year. Mayor Gonzalez advised the HEART agency deals with affordable housing issues and invited Council to attend the agency's events to leanl about local housing issues. 12. Oyster Point Marina Concept Plan- Oyster Point Marina-Owner SF Bay Area Water Transit- Applicant P07-0108: PP07- 0002 & DR07-0066 Consideration of and lnotion to approve Design Review and Precise Plan to allow construction of a Ferry Tenninal at Oyster Point Marina in accordance with SSFMC Chapters 20.59 & 20.85. Public Hearing Open: 9:22 p.m. Associate PlmUler Beaudin introduced the Design and Precise Plan of the proposed ferry terminal located within the east basin of Oyster Point Marina. He explained that the terminal will consist of tlu'ee sections including, a pier, gangway and float with a proposed seating area adjacent to the Bay Trail. He noted that staffrecolnrnended additionallandsite improvements not presently in the Plan including, a bus shelter, a reconfigured vehicular circulation plan, ilnproved pedestrian connections on Oyster Point, Oyster Point directional signage, a designated parking area and identification SigIlage for the terminal. He opined that the Plan's nautical design elements consistent with the character of the Marina demonstrate that the tenninal would be an asset to the area. He explained that the DesigIl had been reviewed by the ferry terminal subcolnmittee; therefore staff reconlnlended that Council approve DesigIl Review application DR07 -0066 and Precise Plan application PP07 -0002 to allow construction of a ferry tenl1inal at Oyster Point Marina and direct staff to explore funding options for landsite improvements. Mr. Borris Drmnoff, Roma Design Group, provided a visual presentation of the proposed ferry tenl1inal design, including a simulation of the facility and a WT A vessel coming into the terminal. He explained the DesigIl includes a proposed 180 foot pier that extends over the water, a 92 foot gang way and a float where 2 vessels could be lnoored. The terminal is desigIled to be a landmark in the area such that ferry service would be perceived as the transit l1lode of choice. The desigIl recogIlizes the inlportance of protection fronl wind and weather and provides for adequate ventilation. He opined the facility exceeds the requirements of new vessels. Resident Lawrence Taoromina appeared and noted he had not seen anything addressing the process for selecting the workforce for the ferry service. He alluded to his thirty years of experience with ferry boats in San Francisco and stated his lnain concern with respect to the work force is passenger safety. REGULAR CITY COUNCIL MEETING MINUTES JANUARY 9, 2008 PAGE 8 Public Hearing closed. 9:35 p.m. Mayor Pro Teln Matsulnoto noted the staffrepoli estilnated that 124 belihs would be relocated as pmi of the Plan and requested clarification on this point and its inlpact. Councihnan Addiego requested the proposed nlllnber of berths to be renloved. He fluiher questioned the reduction's inlpact on parking. Mr. Peter Grilulell, Harbor District General Manager, explained that docks 9 and 10, including approxi111ately 124 thiIiy (30) foot berths, would be renloved to clear space for the tenninal. Neighboring Dock 11 would be reconfigured to accOlnlnodate larger vessels. He fUliher explained the Harbor currently has 589 berths. This nlllnber would be reduced by about 130 as a result of the Plan, which would reduce the vacancy rate by 50%. Mr. Griilllell further explail1ed that berth reduction would bring a conconlitant reduction in the total llulnber of parking spaces required for harbor purposes. He opined this would yield Inore than enough to Ineet WTA's request for 50 ferry service designated spaces. Mayor Pro Teln Matsulnoto questioned whether the tenninal would include seating and heating. Mr. Dramoff replied the tenninal desigIl included infonnal seating. While there is no heating systeln, the thernlal aspects of the desigIl indicate the clilnate within the tenninal would be quite comfortable. Mayor Pro Teln Matsumoto and Councilman Garbarino noted the staff-recomlnended landsite ilnprovelnents appeared to be ilnmediate needs and questioned a funding source. Assistant City Manager Van DuYll explained the additionallandsite improvements came to staff s attention as pmi of consideration of alternatives for approaching the over-all Oyster Point Marina Developlnent. Mr. Van DUY1l fllliher advised the Oyster Point Master Plan is eligible for Redevelopnlent funds and added the Harbor District and WT A have funds allocated for additiol1al ilnprovelnents. Motiol1- Councilman Addiego/Second- Councilnlan Garbarino: to approve Design Review and Precise Plan to allow construction of a Ferry Tenninal at Oyster Point Marina in accordance with SSFMC Chapters 20.59 & 20.85. Unanilnously approved by voice vote. Recess: 9:51 p.ln. Meeting Resunled: 10:00 p.ln. 13. Zoning Text Alnendment -Displays- Genentech Inc. -Applicant Genentech Inc. -Owner 1 DNA Way P07-0118: ZA07-0006 Consideration of and motion to waive reading and introduce an Ordinance amending SSFMC Chapter 20.40 (Genentech Research and Developlnent Overlay District) to include regulations for signs and bmmer displays in accordance with SSFMC Chapters 20.40,20.76 and 20.86. Public Hearing opened: 10:01 p.m. REGULAR CITY COUNCIL MEETING MINUTES JANUARY 9, 2008 PAGE 9 Associate PlmUler Beaudin summarized the application for a zoning text mnendnlent to allow SigI1S and displays on Genentech's Cmnpus as part of Genentech' s Patient Success Stories ProgI'am. The application gI'ew out of the Master Plan approval process. Section A.8-4 described the purpose of the progrmn and acknowledged that future SigIIS would require Planning Comlnission approval. Consistent with this section, Genentech sublnitted a Master SigIl Progrmn application that was considered at the Septelnber 20, 2007 Plmuling COlnnlission lneeting. The Plmuling COlnmission approved the application with certain conditions. It also rejected 3 proposed building displays because it determined that the required findings of approval for the Type C Sign Applications could not be lnade. Because the Plmuling Comlnission was concerned about the potential precedent setting nature for SigIIS in the City as a whole, it directed staff to propose a text anlendnlent to the Genentech R & D Overlay Zoning District to permit approval of the 3 additional SigI1S. Staff prepared the proposed anlendnlent, which was approved by the Plmming Comnlission at a Decelnber 6, 2007 Ineeting and was then presently before Council. Public Hearing closed: 10:06 p.nl. Mayor Pro Tenl Matsunloto requested that the sign ordinance be changed generally so as to pernlit silnilarly purposed SigIlage displays proposed by other businesses. Assistant City Manager Van DuYll responded that Council could so direct staff. Councilnlen Addiego and Garbarino suggested that as a starting point, the ordinances be amended to apply to East of 101 businesses. Mayor Pro Teln Matslllnoto concurred. Mayor Gonzalez requested infonnation pertaining to proposed SigIl maintenance and size. Ms. Geraldine O'Colulor, Genentech Associate Director of Local Govemnlent Affairs, responded that the signs would be pmi of an annual progrmn and new SigIIS were slated to be raised in March. She fUliher stated that the proposed SigIIS were proportional to their respective buildings, with the largest SigIl being 434 square feet ranging down to 250 square feet. Counsel Mattas advised that Council's discussions suggested two-part action. The first action related to consideration of the suggested motion to waive reading and introduce the amendment to the SSFMC peliaining to the Genentech Research and Development Overlay District. The second would be to consider amending the zoning code to pennit sil1lilar signage on other East of 101 business buildings in the future. Motion- Mayor Pro Teln Matsumoto/Second- Councilman Addiego: to waive reading and introduce an Ordinance mnending SSFMC Chapter 20.40 (Genentech Research and Developlnent Overlay District) to include regulations for SigI1S and bmmer displays in accordance with SSFMC Chapters 20.40, 20.76 and 20.86. Unanilnously approved by voice vote. REGULAR CITY COUNCIL MEETING MINUTES JANUARY 9, 2008 PAGE 10 14. Peillla, John R/Owner & Applicant 435 Grand Ave AP07 -0003: Parent Proj ect - P07 -0093 Consideration of appeal of the Plmuling Conlnlission decision upholding the Chief Plmuler's detennination to disallow an outpatient medical surgery center at 435 Grand Avenue in accordance with SSFMC chapter 20.90. Consideration of resolution to affinll Plmuling COlnlnission detennination. Public Hearing opened: 10:15 p.ln. ChiefPlmuler I(alkin sumlnarized the circunlstances leading to the appeal as follows: In late August 2007 Planning staff advised potential tenant, Access Partners ("Access"), and propeliy owner, JOIUl Pe1ma, that the General Plan would not pennit use of the property at 435 Grand Avenue for Access Partners' stated purpose of an outpatient vascular access surgical center. She noted the building's gI'ound floor had been Inost recently used as a real estate office. She further stated General Plan policies require ground floor space to be used prilnarily for retail and restaurant space with only linlited exceptions for service/colnlnercial type offices, specifically real estate offices, banks or travel agencies. On subsequent appeal by Access, the Plaillling Conlmission upheld the Chief Plmuler' s decision. The propeliy owner's appeal of the Plaillling COlnnlission's decision was thus before Council. ChiefPlmuler I(alkin outlined the appellant's principle issues on appeal as follows: 1) the zoning ordinance lists lnedical service use as pernlitted in the Downtown COlnmercial District and several current exmnples of ground floor Inedical use exist; 2) staff and the Plmming COlnlnission opposed the surgery center's occupation of the ground floor, but otherwise thought Access proposed an appropriate use; and 3) the large vacancy factor in the District dictates owners should have additional flexibility for leasing space regardless of General Plan policies. She responded to the issues on appeal as follows: While medical service use is identified in the zoning ordinances as permitted, the General Plan provides specific guidance and lilnits ground floor space to retail or restaurant use. Upon application for a use pennit, specific service cOlnlnercial uses could be approved. The Plaillling Comnlission found a surgical center perfonning up to 6 hour surgeries would not yield the type of activity the General Plan dictates should be apparent on the ground floor. Chief Plailller Kalkin further stated the Plaillling Conlmission tried to accolnlnodate Access' proposed use, but was linlited by state law requiring direct gI'ound floor access to surgery facilities. Thus it suggested lnodifying the proposed design including, conveliing the building to incol porate a Grand Avenue store front and side ground-floor access to the surgical facility. She repolied the applicant declined the re-desigIl and pursued the appeal. The Chief Plmmer concluded by stating staff s reconl1nendation that Council affirm the Plaillling Commission's decision and approve the proposed resolution upholding the appeal. Resident John Peillla appeared to appeal the Plmuling COlnmission's decision. He explained he owned the building at 435 Grand Avenue since 1973, when it was built as an office building. He opined the building would never be appropriate for retail use because of required construction elements, including two shear walls- one within 15 feet from the entrance of the building and one in the cel1ter with an interior staircase and restroolns. He stated he was nlost cOl1cenled that potential tenal1ts be permitted to occupy the building for office use since it is structurally an office building. REGULAR CITY COUNCIL MEETING MINUTES JANUARY 9, 2008 PAGE 11 Mr. PelUla further opined the proposed use falls under the definition of lnedical use not hospital use. He explained the surgery center would perfonn relatively short vascular surgeries encolnpassing a longer recovery period yielding a c0111plete procedure time of relatively 6 hours. Thus, the proposed facility would be unlike a hospital, which use would anticipate 24 hour service al1d/or ovenlight or lnultiple-night patient stays. Mr. PelUla stated medical use is pernlitted under the zoning code. He opined office use is treated separately in the General Plan and is allowed on the ground floor. He fllliher explained his disagreenlent with the ChiefPlailller's interpretation of General Plan Section 3.1g and Table 3.1-2 and footnotes 1 and 2, which he opined pertain only to retail and eating establislunents and not office use. He stated the General Plan was passed when he was on Council and the intent was never to exclude office space on the ground floor. He invoked the exanlple of the building at 472 Spruce at the conler of Grand, which the City purchased a few nlonths before Council passed the General Plan and is currently occupied for medical use. Mr. Pelma concluded by pointing to Table 3.1-2 and footnotes 1 and 2 as evidence that unrestricted office use is pennitted in the Downtown COlnlnercial District. He requested to reserve the right to speak again prior to Council action on the appeal. Public Hearing closed: 10:28 p.nl. Mayor Gonzalez, Mayor Pro Teln Matsunloto and Councihnen Addiego and Mullin disclosed they had each separately lnet with Mr. Peillla to tour the 435 Grand Avenue building to better understand the issues. Councilnlan Garbarino disclosed pmiicipation in several phone conversations with Mr. Peillla about the issue. Councilman Addiego asked the ChiefPlmuler to address Mr. Pelula's comlnents regarding Table 3.1-2 of the General Plan. ChiefPlmmer I(alkin responded the Planning Depmilnent had consistently interpreted the General Plan to require ground floor retail or restaurant use with specific exceptions for office use tlu'ough the use pennit application process. Councihnan Addiego challenged this interpretation to the extent his experience indicated real estate use was unlikely to bring nlultiple stops to the downtown area, whereas the proposed lnedical use Inight have brought appreciably lnore activity to the area. (Casette Tape No.2) Councilman Mullin stated that since silnilar medical uses exist in the area, he was cOlnfortable with the proposed use. Councilman Garbarino echoed Councilnlan Mullin's sentiment pertaining to existing similar uses. He questioned the conflict in permitting lnedical use on the second floor if state law requires access to a surgical facility from the first floor. Counsel Mattas explained the state law at issue was an access ordinance, not a state nlandate that the facility be on the first floor. He further advised Council on the implication of their decision as follows: Council would be interpreting the plan as a matter of first ilnpression, REGULAR CITY COUNCIL MEETING MINUTES JANUARY 9, 2008 PAGE 12 which would set precedent as to Plan application generally. He further advised that the uses Mr. Pelma referred to pre-date the General Plan. Assistant City Manager Van DUY11 addressed the purpose behind the ground floor retail envirolmlent policy. He invoked the pre-General Plan example of the H&R Block office occupying the fonller A11chor Drugs space. He opined the space was well situated for retail use and noted the current use only brings seasonal visits to the downtown area. He renlinded Council that a liberal interpretation of the General Plan would restrict staff s ability to prevent H&R Block-type situations fronl OcculTing when future vacancies arise. He further suggested that if Council desired to pennit the proposed nledical use, it direct staff to develop criteria for authorizing a use penl1it for nledical use on the gI'ound floor. Mayor Pro Tenl Matsumoto requested Mr. PelUla to explain the stnlctural condition of the building when he acquired it and specifically with respect to the shear walls. Mr. Penna advised he built the building at 435 Grand Avenue and code dictated placelnent of the shear walls. He asked the Mayor to be recogIlized and proceeded to state he was not trying to set precedent. He opined that precedent had been set when the City permitted medical use to continue at the building it purchased on the conler of Spnlce and Grand. Chief Plmuler Kalkin noted the building Mr. PelUla identified at the conler of Spruce and Grand was occupied for lnedical use when the City purchased it. Councilnlan Addiego questioned why the building at the conler of Grand and Spruce was pennitted to remain occupied for nledical use given the Plmming Departlnent's policy requiring occupants that would foster vitality in the downtown area. He further suggested that retail should have been encouraged in that location to be consistent with the General Plan. Assistant City Manager Van DUY1l responded the use fell under a non-conforming use exception because the building was occupied for medical use at the time the General Plan went into effect. He further noted the current effort to have a dnlg store occupy the ground floor space, which he opined would be consistent with retail use. Mr. PelUla disagI'eed that the building was occupied for lnedical use at the tilne the General Plan took effect. He fllliher stated that ifhis building at 435 Grand Avenue could not be used or sold as an office building, it would be effectively condelnned. He opined that Council's decision on the appeal would not set precedent, because it was his understanding when he sat on the Council that passed the General Plan that buildings presently occupied for office use would be pennitted to continue to be occupied for office use as long as the use was pennitted by zoning regulations. Mayor Gonzalez asked Mr. PelUla to explain why the building could not be used by retail occupants and asked whether a slnall retail frontage space conceptually suited to co-occupation with the nledical facility could be accOlnlnodated. Mr. Pelma responded the building's proportions and permanent structural features were not suitable for retail use. He fUliher noted reconfiguring the building to accomlnodate retail use would cost an estinlated $185,000, which did not make economic sense. Counsel Mattas advised that the General Plan does not say ground floor space can only be occupied for retail use. Rather, it says ground floor space should be occupied for retail or restaurant use, but real estate, travel agencies and banks are pennissible through a conditional REGULAR CITY COUNCIL MEETING MINUTES JANUARY 9, 2008 PAGE 13 use permit. Thus, there is a lneans for approval of celiain office uses, including the nlost recent use of the subject property. Mr. PelUla asked the Mayor to be recogIlized and opined the General Plan does not restrict pennissible office use to real estate, travel agents or banks, but identifies these uses as examples of pennissible office use tlu'ough use of the words "such as." Counsel Mattas stated the actual wording is "the Municipal Code lnay allow with a use pennit non-residential service oriented establislunents such as banks, travel agencies and real estate offices on the first floor." He advised that if Council chose to interpret this language to allow for lnedical facilities, the interpretation would apply generally to all properties. He further noted his disagI'eenlent with Mr. PelUla's interpretation of the General Plan. He advised that an interpretation that would read office use as separate from retail or eating establislunents would negate the effect of footnote 1. Mr. Penna stated that if footnote 1 were intended to apply to office use, it should appear where the plan discusses office and not retail use. He stated the Plan contelnplated that buildings built as office buildings should have the right to renlain as office structures, without lilnitation on the type of office use, as long as the use continues for a year after and maybe two years after with an extension. Councilnlan Addiego and Mayor Pro Tenl Matsulnoto requested clarification of the impact of granting Mr. Penna's appeal. Mayor Pro Te1n Matsumoto also asked Mr. Penna if Access was still a potential tenant. ChiefPlmuler I(alkin replied that gI'anting Mr. Penna's appeal would impede staffs ability to restrict office use in buildings where retail might be desirable. Mr. Pemla responded he presently had Access as a potential tenant but noted that he would lose it ifhe had to go through the use pennit process. He asked Council to find that existing pennitted uses should be allowed to continue without restriction on the type of office use until the zoning codes that have applied since 1985 have changed. Councihnan Mullin questioned how the Upcoll1ing zoning code review would play into the present issue. Counsel Mattas advised that Council could address the issue through the zoning code. He fluiher advised that the Public Hearing be re-opened before Council entertained further COlnnlents fronl Mr. Penna. Mr. Penna requested additional tilne to address Council. Public Hearing Opened: 11: 15 subject to 3 minute time limitation. Mr. Penna opined that the City's ordinances support the conclusion that existing use can continue without lilnitation on the type of office use. He reiterated his belief that Council could amend the Plaillling COlnnlission's deternlination without setting precedent. Public Hearing Closed: 11: 16 p.m. Counsel Mattas requested that Council provide direction as to whether it desired to uphold or grant the appeal of the Planning Conlmission's determination. He further questioned whether REGULAR CITY COUNCIL MEETING JANUARY 9, 2008 MINUTES PAGE 14 Council wished to direct staff to prepare an ordinance requiring a conditional use permit application for future nledical use. He stated the ordinance could be designed to capture the precedential nature of granting the appeal. He further advised that if Council desired to gI'ant the appeal, it should clarify the basis of its decision as follows: it would either be based on an interpretation of footnote 1 to include lnedical use in the list of items for which a use pelmit could be applied, or on an interpretation that office use is separate fronl footnote 1 in the General Plan. Mayor Pro Tenl Matsulnoto stated her intent to support the Plamling Comlnission and Departlnent. After discussion and based upon the concurrence of the remaining Councihnenlbers, Mayor Gonzalez directed Counsel Mattas to phrase the nlotion which was stated and voted as follows: Motion- Councilman Mullin/Second- Councihnan Addiego: to grant Mr. Pelula's appeal conditioned as follows: the Council's interpretation involves footnote 1 of Table 3.1-2 of the General Plan, which would allow, through the acquisition of a conditional use pennit, service oriented establishlnents that would include the medical center type use that was proposed by the applicant along with the other itelns presently specified. In addition, staff is directed to prepare for Planning Commission and ultinlately City Council consideration, a zoning ordinance mnendnlent that would iInplelnent the policy direction that the Council has ilnplelnented through the footnote and would set parmneters for when one could avail themselves of the oppoliunity to get a conditional use permit such that they would not be providing retail or eating establislunents on the first floor in the Downtown Comlnercial District. AYES: Mayor Gonzalez, Councihnan Addiego, Councilman Garbarino, Councilman Mullin. NOES: Mayor Pro Tem Matsunloto. ABSTAIN: None. ABSENT: None. ADMINISTRATIVE BUSINESS 15. Resolution # 08-2008 authorizing rejection of all Bids No.1 Landscaping for Orange Memorial Park Project Bid No. 2448-Site Work Package Group A, #1. Four-fifths vote required pursuant to Public Contract Code 22038(a)(2). Senior Civil Engineer Bautista advised staffreconllnended Council reject all the bids for landscaping of the Orange Memorial Park Recreation Building Project. He further reCOlnlnended authorizing Public Works to install the landscaping because the work could be performed lnore econonlically by City staff. Mayor Pro Teln Matslnnoto questioned the engineer's estimate. Councihnan Addiego echoed her concerns. Mayor Pro Tem Matsunloto further stated that she perceived an issue with the bidding system as an ongoing concern. She requested infonnation about how City staff would accolnplish the work. Director of Public Works White stated that including nlaterials and labor force the work could likely be accolnplished within the $110,000 to $120,000 range. Councihnan Garbarino suggested that multiple prime bids no longer be pernlitted. City Manager Nagel advised that concerns over the engineer's estimate were traceable to issues with the consultant initially hired for the project. Motion-Councilman Garbarino/Second-Councilman Addiego: to adopt Resolution # 08-2008 REGULAR CITY COUNCIL MEETING MINUTES JANUARY 9,2008 PAGE 15 authorizing rejection of all Bids No.1 Landscaping for Orange Memorial Park Project Bid No. 2448-Site Work Package Group A, #1. Unanilnously approved by voice vote. 16. Resolution #09-2008 endorsing the Ten Guiding Principles of the Grand Boulevard Initiative and directing that they be incorporated into future plans involving EI Camino Real. Associate Plmmer Snlalley introduced the Grand Boulevard initiative as a coalition of all cities bordering the EI Cmnino Real. He explained the task force, comprised of elected officials, including SSF City Councihnan Garbarino, developed Ten Guiding Principles and reconllnend all participating cities to adopt them. The Plmming Conl1nission adopted a resolution reconllnending Council approve the principles on Decenlber 6, 2007. He opined adopting the principles SY1l1bolized conlnlitInent to the City's existing General Plan. Mayor Pro Teln Matsunloto requested that in the future, staff prepare lnore substantive explanations silnilar to a table-like SUlnlnary she received at a SmnTrans meeting. Councihnan Addiego questioned how the guideline suggesting a continuous street parallel to EI Canlino Real was consistent with the General Plan. Assistant City Manager Van DuYll explained the parallel road did not have to be contiguous, but rather, should be interpreted to advocate lnaintenance of SOlne sort of North/South access. Motion- Councilman Garbarino/Second- Councihnan Mullin: to adopt Resolution # 9-2008 endorsing the Ten Guiding Principles of the Grand Boulevard Initiative and directing that they be incorporated into future plans involving EI Cmnino Real. Unanimously approved by voice vote. COUNCIL COMMUNITY FORUM Nothing reported. ADJOURNMENT Being no further business, Mayor Gonzalez adjounled the nleeting at 11:44 p.ln. Submitted by: / Approved: Pedro City of South San Francisco ~IZ;ista inelli-Larsol City City of South San Francb.Gn REGULAR CITY COUNCIL MEETING MINUTES JANUARY 9, 2008 PAGE 16