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HomeMy WebLinkAboutMinutes 2021-02-23 @6:00x SAv MINUTES SPECIAL MEETING A U O CITY COUNCIL c411FO CITY OF SOUTH SAN FRANCISCO WEDNESDAY, FEBRUARY 23, 2021 6:00 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 Addiego called the meeting to order at 6:00 p.m. ROLL CALL Present: Councilmembers Coleman and Nicolas, Vice Mayor Nagales, and Mayor Addiego. 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 via GoogleDoc by 4: 00 p.m. on the day of the meeting. The following individuals provided public comments: • Lien Uy ADMINISTRATIVE BUSINESS 2. Report regarding a study session on a South San Francisco Universal Basic Income pilot program. (Christina Fernandez, Assistant to the City Manager) Assistant to the City Manager Fernandez presented the report and provided background information on Universal Basic Income (UBI). The South San Francisco UBI pilot program's goals would be to provide direct, immediate economic relief to our most vulnerable residents facing food and housing insecurity. It would supplement existing assistance programs and help at -risk households impacted by COVID-19. A secondary goal is to gather enough data to create a longer-term, sustainable program to assist those residents in the greatest need. In its current form, the South San Francisco UBI pilot limits payments to one person per household. Universal Basic Income which provides every resident of South San Francisco with a monthly check. Given the approximate cost of $402M to provide 67,000 residents with $500 every month over twelve months, staff recommends focusing the pilot on our communities most in need. The cost of direct cash payments of $500 every month for 400 households would be $2.4 million. Based on existing city programs, our non-profit partner's administration costs are estimated at 15% or $360,000. Costs for outreach materials and translation services are estimated at $30,000. City staff continues to explore potential fiscal and administrative partners, including Open Research Labs, San Francisco Foundation, Mayors for a Guaranteed Income, Jain Family Institute, YMCA, and others. Staff hopes to secure an administrative partner within the next month. Securing fiscal partners is an ongoing endeavor as the City seeks a layered funding approach. Vice Mayor Nagales thanked Assistant to the City Manager Fernandez and City Manager Futrell for their assistance with this item. He expressed the reasons he brought this item forward and encouraged the Council to establish the pilot program. Councilmember Nicolas inquired about the program requirements and raised some concerns about defining a household. Assistant to the City Manager Fernandez stated that details were still being considered, and staff would be exploring various options. Councilmember Coleman inquired whether the program would replace the federal program. Assistant to the City Manager Fernandez stated it would depend on how the program was designed. Councilmember Flores thanked city staff and Vice Mayor Nagales for bringing the item forward. He acknowledged the public comment about calling the program Universal and stated that the Council should consider a different program name. He would also like to extend the program to families at risk of eviction or who have trouble paying their bills and suggested a different payout method. Councilmember Coleman provided background information about other similar programs; specify the Alaskan Permanent Fund. He agreed with the public comment speaker that the program should not be misleading by calling it universal. Mayor Addiego expressed his unhappiness with the Council's efforts to alleviate the communities' needs, given that the State had passed similar programs. He would like to know of all the city's programs for residents that are struggling and how they work with each other. He supported a program to assist residents; however, there was a lot more work to be done. 3. Report regarding implementation of a Partnership for Workforce Development in the City of South San Francisco to provide career path opportunities for underserved and disadvantaged residents and assist local businesses in need of a skilled workforce. (Mike Lappen, Economic Development Coordinator, and Nell Selander, Deputy Director, Economic and Community Development Department) Economic and Community Development Director Greenwood provided opening remarks and introduced Economic Development Coordinator Lappen to provide a report. In June 2020, ECD prepared an Economic Base Analysis for the City's General Plan Update. Based on this analysis, South San Francisco continues to be a major job center for San Mateo County, with 35% of all transportation jobs, 23% of all warehousing jobs, and 54% of all biotechnology jobs in the County. The City's largest industry sector continues to be manufacturing, representing nearly 25% of all SPECIAL CITY COUNCIL MEETING FEBRUARY 23, 2021 MINUTES PAGE 2 jobs, followed by information, professional, scientific, technical services, transportation, and warehousing. Since the beginning of COVID, staff had been researching and tracking impacts and trends in the Bay Area economy and the job market. Staff found that South San Francisco residents' employment characteristics and skills fit closer to higher -unemployment communities, such as East Palo Alto and Oakland, than San Mateo County. Recent economic and labor market data show that there is a skills gap between the industry in the City and our residents' educational attainment level and training. Based on data from the State's Employment Development Department (EDD), South San Francisco had the third-highest unemployment rate in San Mateo County, at just over 7% in December 2020. Likewise, the South San Francisco Unified School District prepared a report that notes that South San Francisco residents may be vulnerable to future changes in industries, occupations, and skills requirements. Staff recommended implementing the program in three phases. In Phase 1, staff recommended engaging a partner or partners to provide "rapid response" services to residents who are unemployed and/or at risk of falling into poverty. The selected partner(s) would evaluate the participant's employment barriers while considering their family situation, work history, education, occupational skills, financial resources and needs, supportive service needs, interests, and aptitudes. The immediate goal of Phase 1 would be to find a job and connect the individual with social supports, such as rental assistance, health care, and food assistance. Phase 1 may be provided virtually or offsite, although when possible, the partner(s) would use community spaces in South San Francisco for in-person support. In Phase 2, concurrent with the delivery of services in Phase 1, and likely lasting three to nine months, the selected partner(s) would work with City staff to design a long-term program to facilitate economic mobility and sustainability underemployed and unemployed workers and communities at risk. In addition to designing this new Partnership for Workforce Development, the selected partner(s) would work with the City to establish a financing strategy to ensure long-term program success. Phase 3 is the implementation of the program designed in Phase 2 and will include pursuing financing identified in Phase 2. Phase 3 would likely include outfitting classrooms for training courses. City staff has had several staff -level, preliminary conversations with school district staff regarding locating classroom training in underutilized SSFUSD classrooms. The initial Phase, 3 implementation period, will be two years and may utilize the partner(s) identified for Phases 1 and 2 or different partner(s) depending on the program needs. On February 3, 2021, staff issued a Request for Qualifications (RFQ) soliciting experienced partners that offer comprehensive and sustainable workforce development programs. Letters of Interest were due on February 17, 2021, and full submittals will be due on March 2, 2021. SPECIAL CITY COUNCIL MEETING FEBRUARY 23, 2021 MINUTES PAGE 3 Vice Mayor thanked staff and agreed to have case management for this program. He would like to ensure that residents would be successful and asked for the next steps in the selection process. Economic Development Coordinator Lappen provided an overview of the selection process. Councilmember Nicolas thanked Economic and Community Development staff and supported the program. She inquired about the skills held by the unemployed. Economic Development Coordinator Lappen provided the information based on the general plan economic development study conducted. Councilmember Coleman supported the program and inquired about outreach. Economic Development Coordinator Lappen indicated they would target the unemployed and would be aggressive in the outreach. Councilmember Flores inquired on how staff came up with the initial number of program participants and would like the inclusion of coding. Economic Development Coordinator Lappen provided an overview of how staff came up with the initial number of participants. The following individuals provided public comments: • Lelan Anders • Kathleen ButlerTom 4. Report regarding a study session on establishing a Small Business Resource and Entrepreneurship Center in South San Francisco. (Ernesto Lucero, Economic Development Coordinator and Nell Selander, Deputy Director, Economic and Community Development Department) Economic Development Coordinator Lucero presented the item and provided background information on establishing a Small Business Resource and Entrepreneurship Center. The COVID- 19 crisis caused major disruption for small businesses in South San Francisco and has intensified existing structural inequities, demanding a strong response for local economic recovery. In South San Francisco, the high technology and biotechnology industrial sectors appear to be weathering changing economic conditions, with the city's biotech companies and associated real estate developers continuing to invest in new research, construction, and essential employees. However, similar to national trends, many South San Francisco restaurants, personal care services, "mom and pop" stores, long-time or legacy businesses, and hotels have struggled significantly since the first shelter in place order was issued in March 2020. Many local businesses continue to face operational challenges, a lack of business, a reduced workforce, and the need for additional working capital to sustain through the remainder of the pandemic and survive in a post-COVID economy. On February 3, 2021, staff issued a Request for Qualifications soliciting experienced partners who currently offer business support services for small businesses and entrepreneurs. Letters of Interest were due on February 17, 2021, and full submittals would be due March 3, 2021. SPECIAL CITY COUNCIL MEETING FEBRUARY 23, 2021 MINUTES PAGE 4 Staff anticipates that the proposed Small Business Resource and Entrepreneurship Center would be able to leverage partners and service providers funded through other means, such as other governmental organizations and programs. Examples include the Small Business Administration (SBA), which is federally funded, and the Employment Training Panel (ETP), which is state funded. A well-designed program will also be eligible for federal and state grants, as well as philanthropy funding and corporate partnerships. Councilmember Flores expressed his support for the program and welcomed sponsorships and partnerships from the biotech and tech industries. Councilmember Coleman inquired about financing options for small businesses. Economic Development Coordinator Lucero stated there were Federal, state, and regional resources coming soon. Councilmember Nicolas expressed her support for the program and echoed the Council's comments. She would like the program to give women businesses a preference and requested clarification on the change of the current partnership with the Renaissance Entrepreneurship Center. Economic Development Coordinator Lucero provided an overview of the changes, including a satellite center in South San Francisco. Deputy Director Selander provided additional information on the current relationship with Renaissance Entrepreneurship Center. The following individuals provided public comments: • Sharon Miller, Chief Executive Officer, Renaissance Entrepreneurship Center Vice Mayor Nagales inquired how many small businesses applied to the San Mateo County Strong Fund and received assistance. Economic Development Coordinator Lucero believed it was about 20. There were about 180 businesses that applied to the South San Francisco Small Business Relief Fund. ADJOURNMENT Being no further business, Mayor Addiego adjourned the meeting at 8:10 p.m. Respectfully submitted by: Cindy )la Assistant City Clerk Approved by the City Council: 03/2-1 SPECIAL CITY COUNCIL MEETING MINUTES Approved by: f Q Mark Xddiego Mayor / 2021 FEBRUARY 23, 2021 PAGE 5