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HomeMy WebLinkAboutMinutes 2009-05-27MINUTES CITY COUNCIL CITY OF SOUTH SAN FRANCISCO REGULAR MEETING MUNICIl'AL SERVICES BUILDING COMMUNITY ROOM WEDNESDAY, MAY 27, 2009 7:00 P.M. CALL TO ORDER: ROLL CALL PLEDGE OF ALLEGIANCE PRESENTATIONS • Citizens Academy Graduation 7:03 P.M. Present: Councilmen Garbarino, Gonzalez and Mullin, Vice Mayor Addiego, and Mayor Matsumoto. Absent: None. Led by Francisca Gueverra Assistant to the City Manager Susan Kennedy was pleased to present the graduates of this year's Citizens' Academy. This was the Academy's fifth session and the largest Academy to date. Assistant to the City Manager Kennedy thanked members of Council, Department Heads, Staff, Sam Bautista, Debbie Crisafi and her son Jeff, who have been with the program since its beginnings. Assistant to the City Manager Kennedy explained the best part of the Academy was that participants heard directly from Staff and learned about the various aspects and decision making processes each department endures. She noted questions from this particular group always came from an area of wanting to know more about the process. She also noted members of this year's Academy included a wide variety of citizens, including children of former participants and the grandfather of the City Clerk. Certificates were presented to Academy graduates by Sam Bautista and greeted by Council. Graduates were presented as followed: Gabino Anlonso, Kristina Anderson, Teresa Avelar, Hilda, Barradas, Mark Barradas, Bette Blake, Ed Bortoli, Robin Bortoli, Eugene Eufemio, Morena Gallagher, Susan Gonzales, Francisca Gueverra, Anna Hernandez, Din-Lii Lin, Leland Luna, Kathy Malkinson, Jenna McCoy, Susie MacFarland, Sergio Navarres, Cindy Petrovitz, John Petrovitz, Deborah Rainey, Chris Ramos, Rosalind Stewart, Karen Sumner, Chris Weatherford, Betty Young and Claire Young. • Third Quarter 2008-2009 Treasurer's Report on the City's Portfolio and Investments- Reported by City Treasurer Dick Battaglia and Chandler Asset Management Associates. City Treasurer, Richard Battaglia introduced Jason Schmidt of Chandler Asset Management Associates (Chandler) who delivered the Investment Report for the Quarter ending March 31, 2009. Mr. Schmidt presented a PowerPoint slideshow which highlighted the following areas of the City's Investment Report: Economic Update, Account Profile, Consolidation Information and Portfolio Holdings. Mr. Schmidt explained the objective of the City's portfolio as being 1) to preserve principal in the overall portfolio, 2) to provide liquidity, and 3) to earn a market rate of return. In order to achieve its objective, Chandler has invested in high quality U.S. Treasury and government agency securities on behalf of the City. He further stated due to weak economic conditions, the City currently held no U.S. Corporate Bonds. Assets reported by Chandler were in full compliance with State Law's and with the City's investment policy. A strategy was invoked; increasing the Portfolio characteristic's duration from 1.2 year to 2.1 years in order to enhance returns over time. Yields were reported to have increased from 1.01 % to 1.76%. New securities, with better characteristics, were purchased for the future; these included JP Morgan Notes and GE Capital, both FDIC Insured Corporate securities. The City Portfolio went from 100% Agency Bonds to a more diversified mix of FDIC Insured U.S. Corporate Bonds, U.S. Treasury Bonds and U.S. Agency Bonds. The quality of the City's portfolio was very high, with most securities being AAA rated, meaning very highly rated. The City's Consolidated Portfolio included information on average maturity time, modified duration, average book yield, average market yield, average quality and total market value, reported as $114,904,137. Mayor Matsumoto questioned Mr. Schmidt why he felt so optimistic about the Third and Fourth Quarters. Mr. Schmidt replied an increase in home sales and employment rate were key factors for his optimism. He further stated home sales were beginning to stabilize and leading indicators showed stabilization and economic activity based on the Federal Stimulus Program. Mayor Matsumoto questioned whether or not the Stimulus could sustain the economy. Mr. Schmidt reported the injection of capital into the banking system had been done and the banking system had been stabilized„ He further noted. spending was at an uptrend and continued to grow, but warned the recovery was not going to be "V" shaped, when you see the economy fall and come back up again. The economy should continue to recover although at a slower pace than normal, an approximate 1-2% Gross Domestic Product (GDP) growth. Councilman Garbarino questioned what effect the GM bankruptcy would have on the market and consumer confidence. Mr. Schmidt stated GM was publicly traded and would have a "controlled" bankruptcy, where REGULAR CITY COUNCIL MEETING MAY 27, 2009 MINUTES PAGE 2 the Government is guaranteeing the warranties. This would play out differently than the Chrysler bankruptcy had. Vice Mayor Addiego noted a bright spot in the local housing market and cited the selling out of a 99 unit condominium complex in just 90 days. Mr. Schmidt referenced the Realtor Affordability Index as being at high levels, as well as the availability of money from the federal mortgage lenders. He noted more lending was going on because it was getting to be profitable again. • Improving Public Places Presentation, Presented by Sean Garrone & Judy Bush. Presenters Judy Bush and Sean Garrone gave a PowerPoint presentation about the Improving Public Places Committee. Citizens were invited to attend meetings and events and become volunteers for the Committee. The presentation highlighted some of the improvements made throughout the City by the Committee and Mr. Garrone noted a particular success located at the Main Library. Public involvement was solicited for the next phase on improvements and the public was asked to inform the Committee of areas that could benefit from its services. Volunteers could help in a variety of ways including development and maintenance of a site. Mr. Garrone noted volunteers were a key to the Committee's success. Mrs. Bush noted two upcoming events and extended the invitation for all to attend: 1) June 8 at 6 PM at the South San Francisco Corporation Yard located at 550 North Canal Street, an Arborist would speak on tree care and 2) July 18 would be Community Planning Day. More information on the latter event would be forthcoming. Citizens were encouraged to call (650)829-3837 or visit www.ssf.net for more information. Mayor Matsumoto requested committee members stand to be recognized. AGENDA REVIEW City Manager Nagel stated Closed Session Item No. 10 could be removed from the Agenda as there was no new information available. PUBLIC COMMENTS None ITEMS FROM COUNCIL • Announcements • Committee Reports Council members announced upcoming events, programs and public improvements and reported on individual attendance at community meetings and events. Specific items for further action and/or consideration were set forth as follows: Vice Mayor Addiego thanked Mr. McAuley for his years of service and dedication to the City. He then took the opportunity to announce the addition of the City's newest citizen, Lucca Michael Larson, born on May 12, 2009 to City Clerk, Krista Martinelli-Larson and her husband Ryan REGULAR CITY COUNCIL MEETING MAY 27, 2009 MINUTES PAGE 3 and offered his congratulations to the entire family. The Vice Mayor reported on a tour of the Barrango Warehouse on Swift Avenue. Barrango came to South San Francisco in 1980, and was responsible for decorations seen throughout the Holiday Season at various locations. They also fabricate, construct and install carousels, including the carousel at Great America in Santa Clara. He thanked Maria Martinucci, Chief Executive Officer of the Chamber of Commerce, for putting the tour together. The Vice Mayor also highlighted South San Francisco small business Lonora Gold Jewelers and Watchmakers, noting a recent makeover it received courtesy of the Small Business Neighborhood Renovation :Project through local Community Colleges, funded by grant money from Wells Fargo Bank. He stated this was exactly the type of thing the City would like encourage all merchants to take advantage of and his desire to have the City help replicate events such as this for other local merchants. The Vice Mayor reported the receipt of several telephone calls from merchants concerned over the benches on Grand Avenue and its users. He requested Staff to look hard at coming up with a solution to this issue and stated he was not opposed to having them removed if necessary. Lastly, he updated Council on the progress made by the Finance Subcommittee and was pleased to report there were no new concerns, but the main issue continued to be anticipated State actions. He thanked Finance Director Steele for his guidance and Director of Parks and Recreation Ranals and Fire Chief White for thinking outside of the box in the area of revenue enhancement. Councilman Garbarino reported on his attendance of the Congestion Management Program and Environmental Quality Committee (CMEQ) meeting where City Shuttle services and costs were reviewed. City/County Association of Governments (CCAG) cost per passenger mile was reported at $6.00 with South San Francisco's cost currently at $6.60. Compared to other City services that can range from $18.00 - 20.00, Councilman Garbarino felt the City was doing a good job of providing an affordable and valuable service. Also attended was the League of Cities meeting, the Finance Subcommittee and Day in the Park (DIP) Subcommittee meetings. Activities attended included the Italian American Women's Luncheon, the Centennial Park and Dog Park openings, the Senior Volunteer Luncheon and the Asian American celebration. The Councilman noted an activity at Ponderosa School where children learned about Science and Engineering by putting together a chocolate factory. This was the fifth year of the program which had reached over 5000 students. Councilman Garbarino attended a dinner for Project Read and thanked Holly Fulghum-Nutters for her work with program. Lastly, Councilman Garbarino talked about his tour of the Barrango Warehouse, an experience he found truly stunning. Councilman Gonzalez reported his attendance of the H.E.A.R.T. meeting where the Board decided to invest 20% of their remaining money into CD's. He also reported the fundraiser, which took place May 13, had 170 attendees and made over $20,000. Councilman Gonzalez reported the current number of foreclosed homes in San Mateo County as 360 and noted Menlo Park was buying properties for the purpose of renting to low income families. He requested Staff to investigate and report on the possibility of how South San Francisco could do the same. The Councilman thanked the South San Francisco Police Department (SSFPD) for the D.U.I. checkpoints and opined that the numbers reported were too high and he wished the checkpoints could be done more often. Councilman Gonzalez reminded residents about the upcoming public hearing of June 24 for the proposed sewer rate increase and urged them to attend and express their opinions. Lastly, the Councilman reported on an important meeting scheduled for Saturday, May 30 at 1 pm located at the Magnolia Senior Center. The topic of discussion would be anticipated plans for the new BART station. Again, he urged residents to attend in order to become informed of any situations before they were approved. REGULAR CITY COUNCIL MEETING MAY 27, 2009 MINUTES PAGE 4 Councilman Mullin reported the State was looking to close a $21 billion deficit and in wake of the defeat of Budget Measures lA through lE in the May 19 Election, the City would be bracing itself for the local effects. These current events underscored the systemic dysfunction that was occurring in Sacramento. He concurred with many others that perhaps the only way forward was for the State to convene a Constitutional Convention, an action which has been called for by the Bay Area Council and other reform oriented groups. The reform. discussed involved the placing of two (2) measures on the 2010 ballot: 1) allowing voters to directly call for a constitutional convention and 2) to actually call the convention. Difficulties may occur when voters are asked to weigh in on the actual reforms such as term limits and structure of the legislature, but nonetheless Councilman Mullin stated he would like to see the City draft a Resolution in support of such actions. The Councilman further stated he would follow the effort and provide updates as needed. At the most recent County Workforce Investment Board meeting, data on the City's current unemployment rate was reported at 10.2%, which was higher than the County average, but lower than the State's. The City is currently above the median but there were still demonstrated pockets of need in this community. Even though the recession has been reported to end by late 2009, local government would continue to make difficult decisions and cuts due to the budget fallout. Events attended by Councilman Mullin included the Festa Italiana, dedication opening of Centennial Way, West Winston Manor Community Association Barbeque, State of the City Luncheon, Citizen's Academy Council night, and the Senior Volunteer Recognition Luncheon. It was noted all were very well attended and worthwhile events. Mayor Matsumoto began by thanking the SSFPD for the D.U.I. checkpoint which was very well organized. Thirty-one officers were in attendance, including officers from the cities of Belmont, Daly City and San Carlos and the California Highway Patrol. Though there were seven (7) D.U.I. stops, most stops were for driving without a license. The Mayor cautioned this could be a very expensive proposition considering you would be cited and your car would be towed and impounded for a minimum of 30 days. Mayor Matsumoto read from a memorandum in regards to Code Enforcement cases and reported an increase in the number of cases closed. She acknowledged and thanked those in Code Enforcement for all of their hard work. The Mayor attended a Library event with guest speaker Al Young, the Governor's former Poet Laureate. She noted what an honor it was to have the well distinguished author in our City and how she found the event truly enlightening and informative. The North County Mayors' Managers Meeting met to discuss the issues of High Speed Rail (HSR) and the failure of the May 19 ballot issues. Caltrain and HSR were currently working in conjunction on a presentation for a future date. In regards to the ballot failures, the expected costs and concerns were discussed. The Mayor gave special thanks to Mrs. Jeanette Holt for her work with the Relay for Life; the event was extremely successful and planned on returning to the City in the future. She noted she would love to see City Staff teams participate in next year's event. Other announcements included community events such as the Farmers' Market and care packaging of items for the City's adopted Echo Company Marines; the Mayor invited the community to participate in the packaging, scheduled to take place at the North Canal Fire Station. If you chose to donate items rather than time, a donation list was currently posted on www.SSF.net. Lastly, the Mayor reported on her attendance of the CCAG meeting where storm water issues were discussed. She urged residents to be aware of what went into the street drains, as it flows directly to the bay and could result in the City being fined. Councilman Gonzalez noted a conversation he had with Pen-TV in regards to adopting shows previously taped by himself and the Mayor at Comcast studios in Burlingame, which had been closed. Pen-TV agreed to adopt the shows at a cost of $50 per show and he questioned if the City would be allowed to pay for such services. Lastly, Councilman Gonzalez noted that Census REGULAR CITY COUNCIL MEETING MAY 27, 2009 MINUTES PAGE 5 2010 would like the City to issue a proclamation in support of the census. In regards to the cable television shows, City Attorney Mattas stated he would review the provided handbook before responding to Council. • City Selection Committees Nominations. City Selection Committee voting would take place this Friday at the Council of Cities Meeting. Current Committees seeking appointments included: Association of Bay Area Government (ABAG), the California Coastal Commission, and the Local Agency Formation Commission (LAFCO). Councilman Garbarino was seeking reappointment to ABAG as well as Councilman Gonzalez seeking reappointment as an Alternate. Mayor Matsumoto noted Councilman John Boyle stated he would serve as either a primary or Alternate, therefore the Mayor would like to support Councilmembers Garbarino and Sepi Richardson as the primary members and Councilmembers Gonzalez and Boyle as Alternates. Councilman Gonzalez noted his support for Councilman Sepi Richardson for one of the member appointments. In regards to the California Coastal Commission, the Mayor stated her inclination to support Councilmember Jim Vreeland of Pacifica. Councilman Garbarino felt if there was going to be an official vote it should be for one of the three (3) Councilmembers from the coast. He stated all candidates were strong and deferred to the Mayor. Councilman Gonzalez stated in addition to Councilmember Vreeland, Councilmember Sue Digre was also a very strong candidate. He noted he would be comfortable with the Mayor's selection in any case. Councilman Mullin felt all three (3) candidates were well qualified and deferred to the Mayor for an official decision. • Acknowledgment of Proclamation issued in honor of Public Works Supervisor Frank McAuley in recognition of his receipt of the 2008 Employee of the Year Award. Public Works Supervisor, Frank McAuley was nominated by Public Works Director, Terry White. The proclamation was read by Mayor Matsumoto and. presented to Frank McAuley. Mr. McAuley thanked Council and stated he was humbled and honored by the recognition. REGULAR CITY COUNCIL MEETING MAY 27, 2009 MINUTES PAGE 6 CONSENT CALENDAR Motion to approve the minutes of April 15, 2009. 2. Motion to confirm the expense claims of May 27, 2009 in the amount of $915,649.33. 3. Resolution authorizing a contract with Municipal Resources Group, LLC to prepare a Parkland and Park Improvements Fee Study. 4. Resolution authorizing the acceptance of $122,000 in grant funding from Silicon Valley Community Foundation to support Project Read Services and amending the Library Department's 2008/2009 Operating Budget. 5. Resolution finding a severe fiscal hardship will exist if additional city property tax funds are seized and additional unfunded mandates are adopted by the State of California. 6. Resolution awarding the construction contract to G. Bortolotto and Company, Inc. for the Hillside and Forbes Boulevard Dig-Outs Project in an amount not to exceed $176,775.20. Motion -Councilman Garbarino/ 2"'~ -Councilman Gonzalez to approve Consent Calendar items 1- 4 and 6. Unanimously approved by voice vote. Item No. 5 -Vice Mayor Addiego questioned whether or not there was an obligation on the City's part to loan the money and deferred to Councilman Mullin for further information about Proposition lA. He opined that where ever the money sits, it was all taxpayer money and if the State was in need, the City should oblige. He further stated South San Francisco was in better shape than most, but felt torn about supporting the Resolution. He stated he would likely support the Resolution to benefit communities that were facing greater challenges, such as Pacifica. Councilman Mullin noted under Proposition lA the City would be reimbursed with interest within three (3) years. Although there was question regarding the time frame, he stated Proposition lA was written and crafted to protect cities and he felt confident that the cities would be paid back. Councilman Gonzalez noted if the City chose to support the Resolution, it would be helping less fortunate cities, as all cities would be effected across the board. Mayor Matsumoto questioned what would happen if the State does not pass a budget. Attorney Mattas stated it would likely be an extension of what we have seen, with contracts being suspended, work being suspended and State employee lay-offs. Attorney Mattas also noted Proposition 1 A had significant restrictions involving lending and payment requirements. A two-thirds vote by the legislature would be required before the State could move forward with the borrowing. Mayor Matsumoto stated she felt the loans would not solve the problem in Sacramento. REGULAR CITY COUNCIL MEETING MAY 27, 2009 MINUTES PAGE 7 Vice Mayor Addiego clarified some of the loans would be considered "Bridge" loans, seeing as the majority of money does not come into the State until, for example, income tax time. The loans would be for the flow of money; for the State to have liquidity now. Attorney Mattas stated the State revenue was greatly tied to income tax revenue, which had the strong propensity of being fluctuant. Councilman Mullin added his sense that the budget maybe on time this year due to a certain resignation that there will be no more revenue coming in, aside from a borrowing budget. With all of the cuts and hardships the State was faced with, he felt there was a real desire and effort to have the budget done on time. Motion -Councilman Garbarino/2nd. -Councilman Gonzalez: To approve Resolution No. 42- 2009. Unanimously approved by voice vote. PUBLIC HEARING 7. Resolution amending the 2008-2009 Action Plan to incorporate the American Recovery and Reinvestment Act Community Development Block Grant Stimulus Funding into the Current Fiscal Year 2008-2009 budget. Community Development Coordinator Joy Adams presented the Staff Report which highlighted the planned usage of $161,564 in stimulus funding from the American Recovery and Reinvestment Act of 2009. HUD was strongly urging the City to use the CDBG stimulus funds for activities that included hard development costs associated with infrastructure activities along with essential programs that provided services to residents or activities that promoted energy efficiency and conservation through rehabilitation or retrofitting of existing buildings. To that end, the Economic and Community Development (ECD) staff has worked in partnership with Rebuilding Together and North Peninsula Neighborhood Services Center to develop a Green Home Enhancement and Retrofit Program. Overall the program concept included training of youth, volunteers and local contractors to conduct energy efficiency audits of homes in the community and implement home enhancements that would maximize the energy efficiency of the home and provide energy education to the residents of those homes and the community at large. Representatives from both North Peninsula Neighborhood Services Center and Rebuilding Together Peninsula were on hand to answer any questions. Mayor Matsumoto requested clarification pertaining to the Davis Bacon requirements mentioned in the attachment and clarification as to how this project would be considered "green" rather than energy efficiency, which is how she views it. Coordinator Adams explained the Davis Bacon requirements pertained to Federal Fair Wage requirements. She further explained the terms "green" and "energy efficiency" were used interchangeably. She noted systems to be put in place would use less energy, therefore creating a "greener" home. Mayor Matsumoto questioned who would provide the training referred to in the Staff Report. REGULAR CITY COUNCIL MEETING MAY 27, 2009 MINUTES PAGE 8 Karla Molina of North Peninsula Neighborhood Services Center explained the education component would be taken care of by their company and they were currently looking to help out displaced individuals in the construction field to conduct training for targeted to youth. Vice Mayor Addiego questioned how the homes to be retrofitted would be selected and if the Redevelopment Agency would have any input in their selection. He noted he would like to see the City have a hand in the selection process, though not at a Council level. Ms. Molina stated homes are selected from pool of applications previously received and included homes from locations throughout the; entire City. Applicants were selected jointly by Rebuilding Together and North Peninsula. Assistant City Manager and Redevelopment Agency Director Marty Van Duyn clarified the CDBG was resourced as the funding source for the program, which was basically an extension of services already provided by Rebuilding Together, who had brought in North Peninsula as a partner. He saw no reason why City Staff could not have a leverage position as evaluations were made. Coordinator Adams assured Council all applicants submitted by North Peninsula and Rebuilding Together went through a vigorous review process conducted by her office as standard procedure before any approval is given. Councilman Gonzalez questioned whether or not this program intended on covering costs of home improvements such as solar panels. Seana O'Shaughnessy of Rebuilding Together Peninsula stated the agency had explored solar panel installation, but had determined costs to be too high for the limited funds available. In addition, there was already another non-profit. agency called Great Alternatives, which provided this service throughout San Mateo County. Ms. O'Shaughnessy also noted the repair work was going to be hired out to individuals who normally volunteer for the purpose of providing jobs as requested by the Stimulus Package requirements. Councilman Gonzalez questioned if the City would be receiving any credit when reporting the energy savings as reported through AB-32. Coordinator Adams responded the City would receive credit in these regards. Mayor Matsumoto questioned if the programs would look to employ local South San Francisco contractors. Ms. O'Shaughnessy stated the agency would absolutely look at hiring local contractors as well as local businesses for the purchase of materials. On a side note, Ms. O'Shaughnessy thanked Council for their participation at National Rebuilding Day. Motion -Councilman Gonzalez/ 2nd -Councilman Mullin: To approve Resolution No. 43-2009. Unanimously approved by voice vote. REGULAR CITY COUNCIL MEETING MAY 27, 2009 MINUTES PAGE 9 ADMINISTRATIVE BUSINESS 8. Resolution approving the Nuisance Abatement Cost Report and certifying special assessments for collection of delinquent abatement costs amounting to $8,430.35 against 109 Arroyo Drive, South San Francisco, APN 010-397-020. Fire Chief White presented the Staff Report which highlighted nuisance conditions and the many collection efforts in regards to Nuisance Abatement costs for 109 Arroyo Drive, South San Francisco, APN 010-397-020. Chiefs White noted the City had taken similar action on two prior cases. Councilman Gonzalez questioned if the property owner was aware of the impending actions and the age of the property owner. Chief White stated the owner had attended various hearings and had been provided with numerous notifications as required under the ordinance. Age of the owner was unknown, though they appeared to be older. That being said, the parties owned several properties in the City. Motion -Councilman Garbarino/ 2nd Councilman Mullin: To approve Resolution No. 44-2009. Unanimously approved by voice vote. CLOSED SESSION 9. CONFERENCE WITH LABOR NEGOTIATORS (Pursuant to Government Code § 54957.6) Agency designated representative: Kathy Mount Employee organizations: AFSCME, Local 1569, AFL-CIO Confidential Unit, Teamsters Local 856 International Association of Firefighters, Local 1507 Mid-management Unit International Union of Operating Engineers, Loca139 South San Francisco Police Association Public Safety Managers Executive Management Unit. Closed session opened: 8:50 P.M. Open Session resumed: 9:50 P.M. Report out of Closed Session: Direction given. No reportable action taken. 10. Conference with Legal Council: Anticipated Litigation. (Pursuant to Government Code § 54956.9(b)) Significant Exposure to Litigation: One Case. Item Not Heard REGULAR CITY COUNCIL MEETING MAY 27, 2009 MINUTES PAGE 10 COMMUNITY FORUM None. ADJOURNMENT Being no further business, Mayor Matsumoto adjourned the meeting at 9:50 P.M. Submitted by: C~a~-~. Approved: Kary atsumoto, Mayor City of South San Francisco Anna M. Hernandez, Deputy City Clerk City of South San Francisco REGULAR CITY COUNCIL MEETING MINUTES MAY 27, 2009 PAGE 11