South San Francisco City Council Regular Meeting - May 11, 2022

The South San Francisco City Council held a regular hybrid meeting on May 11, 2022, starting at 6:00 PM and adjourning around 9:30 PM. The meeting included proclamations, extensive public testimony from city employees regarding ARPA premium pay, approval of consent calendar items, a public hearing for a major development project at 580 Dubuque Avenue, authorization of lease revenue bonds for Orange Memorial Park improvements, approval of construction contracts for pavement rehabilitation and the aquatic center, and a discussion on a ballot measure for affordable housing under Article XXXIV of the California Constitution.

Presentations

• Proclamation recognizing May as Mental Health Awareness Month, presented to Mikaela Selly, a licensed clinical social worker embedded with the South San Francisco Police Department. Councilmember Flores highlighted the city's participation in the Community Wellness Crisis Response Team pilot program and other mental health initiatives.
• Proclamation recognizing May as Asian American, Native Hawaiian, and Pacific Islander Heritage Month, accepted by Parks and Recreation Commission Chair Bill Locke.

Consent Calendar

• Approved unanimously: minutes of April 13, 20, and 27, 2022; acceptance of Water Quality Control Plant Coating and Corrosion Protection Project (total construction cost $715,995.59); consulting services agreement with Kitchell CEM for Corporation Yard Roof and Photovoltaic System ($290,216); request to Metropolitan Transportation Commission for $400,000 in TDA Article 3 funding for Hillside Boulevard Road Diet Improvements; amendments to the Master Fee Schedule for FY 2022-23; adoption of SB1 project list; sewer main upgrade reimbursements at 180 El Camino Real and 375 Oyster Point Boulevard; and second reading of ordinances regarding large family daycare homes, accessory dwelling units, and Design Review requirements.

Public Comments & Testimony

• Public Comments (non-agenda): Multiple speakers, primarily AFSCME Local 829 members and their supporters, addressed the council about ARPA premium pay. Speakers requested a higher amount than the current city management offer of $3,000 per employee. Several cited Daly City's payment of $5,500 per essential worker. One speaker noted the city has $50 million in reserves and $12 million in ARPA funds. Speakers expressed disappointment and a feeling of being undervalued for working through the pandemic. Some also spoke about blight and trash in the downtown area.
• Item 11 (580 Dubuque Avenue): No public comments submitted.
• Item 12 (Lease Revenue Bonds): One public commenter, Mina Richardson, expressed concerns about the fire station not being included in the bond projects and questioned the need for an additional station given the city's population and call volume.

Discussion Items

• Item 11: 580 Dubuque Avenue Office/R&D Project – The council heard a staff presentation and from IQHQ, the developer, on a proposed eight-story, 265,000 sq ft office and research building adjacent to the Caltrain station. The project includes a 40% trip reduction TDM plan, all-electric building (one of the first life sciences buildings in South City), LEED Gold certification, and significant community benefits including $13.9 million in impact fees and additional contributions for power line undergrounding, public art, and park improvements. The council expressed strong support, noting the project's transit orientation, sustainability, and high design standards. The project received unanimous recommendations from the Design Review Board and Planning Commission.
• Item 12: Lease Revenue Bonds for Orange Memorial Park – Staff presented a plan to issue up to $75,000,000 in Series 2022A bonds to fund the Orange Memorial Park ballfields ($12.3 million), aquatic center ($49 million), Colma Creek bridge replacements ($3 million), and a playground replacement. Due to inflation and cost escalation, the aquatic center cost estimate rose from $34 million to $49 million. Councilmembers discussed debt service coverage ratios and the city's $52 million in reserves. A hedge fund of $10 million was proposed to mitigate risk. The council approved the bond issuance.
• Item 13: Aquatic Center Construction Management – Approved a $1,946,060 consulting services agreement with Swinerton Management & Consulting for construction management of the Orange Memorial Park Aquatic Center.
• Item 14: 2022 East Pavement Rehabilitation Project – Approved awarding a construction contract to Interstate Grading & Paving, Inc. ($6,444,248.50) and a construction management contract with Swinerton Management & Consulting ($598,920). The project includes pavement rehabilitation and ADA-compliant curb ramps in the eastern part of the city. Councilmember Flores raised concerns about impacts on small businesses on Linden Avenue and lighting in old town.
• Item 15: Article XXXIV Ballot Measure for Affordable Housing – The council considered an ordinance and resolution to place a measure on the November 8, 2022 ballot authorizing the city to develop, construct, or acquire low-rent housing units. The proposed authorization would allow up to 1% of the city's existing housing stock (approximately 250 units per year) over eight years. Councilmembers Flores and Vice Mayor Nicolas expressed concerns about funding sources, impact on school district property taxes, and the need for a concrete financial model. Councilmember Coleman supported the measure as a way to pursue mixed-income social housing. After debate, the council decided not to proceed with the ballot measure at this time and directed staff to prepare a detailed analysis of potential financial models, including impacts on other taxing entities, for a future study session.

Key Outcomes

• Approved Unanimously: Consent calendar items (motion by Councilmember Coleman, second by Vice Mayor Nicolas).
• Item 11 (580 Dubuque Avenue): Three separate votes:
  • 11a: Adopted the Initial Study/Mitigated Negative Declaration (CEQA) – unanimous (5-0).
  • 11b: Introduced ordinance amending zoning map to create Planned Development District – unanimous (5-0).
  • 11c: Conditionally approved East of 101 Area Plan Amendment, Design Review, and TDM Plan – unanimous (5-0).
• Item 12 (Lease Revenue Bonds): Approved resolution authorizing the issuance of Series 2022A bonds not to exceed $75,000,000 – unanimous (5-0). A companion action was taken in the South San Francisco Public Facilities Financing Authority meeting.
• Item 13 (Aquatic Center CM): Approved consulting services agreement with Swinerton – unanimous (5-0).
• Item 14 (Pavement Rehabilitation): Two separate votes:
  • 14a: Awarded construction contract to Interstate Grading & Paving – unanimous (5-0).
  • 14b: Approved construction management contract with Swinerton – unanimous (5-0).
• Item 15 (Article XXXIV Ballot Measure): No vote taken. Council directed staff to provide a detailed financial model and analysis in a public study session before further consideration.
• Postponed: Item 16 (Closed Session) was moved to the May 25, 2022 meeting.
• Adjournments in memory: The council adjourned in memory of Norman Mineta, Maria Samano Tempone, Elisa Reyes, and John Thomas Gent.