South San Francisco City Council Regular Meeting – July 13, 2022

The South San Francisco City Council held a regular teleconference meeting on Wednesday, July 13, 2022, starting at 6:00 PM. The agenda included presentations, public hearings on two major development projects, administrative business regarding a proposed parcel tax initiative and a study session on public housing, as well as approval of compensation for city employees. The meeting featured extensive public comment on the Oyster Cove Marina eviction and the early care and education parcel tax initiative.

Consent Calendar

• Minutes of June 22, 2022 approved.
• Acceptance of $4,520 from San Mateo County for a 30-Day Vote Center at the Main Library for the November 8, 2022 General Election (Budget Amendment 23.004).
• Acceptance of $5,985 from San Mateo County for COVID-19 outreach (Budget Amendment 23.007).
• Resolution to continue remote City Council and advisory body meetings due to health and safety concerns.
• Acceptance of $25,000 from Genentech and $10,000 from the South San Francisco Rotary Club for the Every Kid Deserves a Bike program (Budget Amendment 22.072).
• Amendment to Master Fee Schedule correcting Film Permit Application Fees for FY 2022-23.
• Memorandum of Understanding with San Mateo County Transportation Authority, City of San Bruno, and Peninsula Corridor Joint Powers Board for the Preliminary Engineering/Environmental phase of the South Linden Avenue and Scott Street Grade Separation Project.
• Approval of sale of 109 Longford Drive to Rick Arenas and Alejandra Gonzalez for $850,000.
• All consent items were approved unanimously.

Public Comments & Testimony

• Oyster Cove Marina: Several residents spoke about the eviction from the marina, citing displacement of approximately 30 households, many elderly and low-income. They requested an extension of the eviction timeline and asked the city to mediate with Kilroy Realty. City Manager Mike Futrell agreed to discuss the matter further with the Mayor.
• Item 13 – Parcel Tax Initiative: Numerous speakers expressed strong support for placing the initiative on the November 2022 ballot, highlighting the need for affordable early care and education. Some speakers opposed the measure, arguing it could harm the biotech industry and lacked oversight.
• Item 14 – Article 34 Study Session: Speakers urged the council to place a measure on the ballot to remove the Article 34 restriction, citing its racist origins and the need for future flexibility to build public housing.

Discussion Items

• Parks and Recreation Month Proclamation: Mayor Nagales read a proclamation designating July as Parks and Recreation Month, accepted by Parks and Recreation Commission Chair Bill Locke.
• Stage Two Water Shortage Contingency Plan: Representatives from Cal Water presented on the drought situation. Stage two restrictions limit outdoor irrigation to two days per week (odd/even addresses) and prohibit watering between 8 a.m. and 6 p.m. Penalties for violations include fines up to $100 and potential flow restrictors. Rebate programs include a Lawn to Garden program ($3 per sq ft), spray-to-drip conversions, and free landscape tune-ups. In May 2022, South San Francisco used 4% more water compared to 2020 levels, an improvement from 14% in April. Council members discussed options for residents who have already conserved significantly and the use of 2020 as a baseline.
• Item 11 – Gateway of Pacific Phase 4 Density Transfer: Staff and the applicant (Biomed Realty) presented a proposal to transfer 120,221 sq ft of development capacity from adjacent rail spur properties to the GOP4 North building, increasing it from 5 to 9 stories. The project includes a new multi-use path on the rail spur. The Planning Commission recommended approval. The city council certified the Supplemental EIR, adopted a Statement of Overriding Considerations, and conditionally approved the entitlements (subject to future General Plan Amendment). Votes: 5-0 on each of the four sub-items (11A, 11B, 11C, 11D).
• Item 12 – Southline Project: Staff and applicant (Lane Partners) presented a plan to redevelop a 28.5-acre industrial site adjacent to the San Bruno BART station with up to 2.8 million sq ft of office/R&D space. Phase 1 includes two office/R&D buildings (615,000 sq ft), an amenities building (69,710 sq ft), a parking garage (970 stalls), and a new east-west roadway. The project includes $25 million in community benefits, $50 million in impact fees over its life, a 45% alternative mode share TDM requirement, and a two-way class IV protected bike lane on Huntington Avenue. The EIR identified significant unavoidable VMT impacts, mitigated with a multi-use path. The Planning Commission unanimously recommended approval. The council approved all four sub-items (12A-12D) with 5-0 votes.
• Item 13 – Initiative Ordinance for Parcel Tax on Commercial Office Properties: City Attorney Sky Woodruff reported that a citizen-initiated petition proposing an annual parcel tax of $2.50 per sq ft on commercial office parcels 25,000 sq ft or larger had sufficient signatures (updated certification using correct voter registration numbers). The tax would raise an estimated $54.7 million annually for early care and education for children ages 2.5 to 5 from families living or working in the South San Francisco Unified School District. Council accepted the certificate of sufficiency (13A) unanimously. On the resolution to place the measure on the November 8, 2022 ballot (13B), council voted to delay action until a 9212 report analyzing the impacts is completed, with a deadline of August 10, 2022. The motion to defer passed (5-0). Staff will prepare the report by August 10.
• Item 14 – Study Session on Article 34 Ballot Measure: City Attorney Woodruff and City Manager Futrell presented a study session on placing a measure on the ballot to allow the city to develop, construct, or acquire low-rent housing (for households earning <80% AMI) without voter approval for each project, as currently required by Article 34 of the California Constitution. BAE Urban Economics presented a financial feasibility analysis comparing three prototypes (100% affordable via city gap funding, 100% affordable with LIHTC, and mixed-income). The analysis showed city gap funding per unit ranging from $315,000 to $565,000, compared to the city's typical $40,000–$75,000 per unit subsidy. Council discussed the potential for future state funds and the racist history of Article 34. Councilmembers expressed interest in giving voters the opportunity to remove the barrier. Council directed staff to bring the measure back on July 27, 2022, for action to place it on the November ballot.
• Item 15 – One-Time Compensation for Employees: Human Resources Director Leah Lockhart presented two resolutions. The first (15A) approved Letters of Agreement with the Police Association, Firefighters Local 1507, and Public Safety Managers for a one-time payment of $4,800 per employee, with a budget amendment of $1,247,000. The second (15B) approved a one-time payment for part-time hourly employees based on average weekly hours: $4,000 for 30-40 hours, $3,000 for 20-29 hours, and $2,000 for 10-19 hours, with a budget amendment of $313,000. Both resolutions were approved unanimously.

Key Outcomes

• Consent Calendar: Approved unanimously.
• Parks and Recreation Month: Proclamation accepted.
• Water Shortage Plan: Presentation received; council encouraged public engagement.
• Gateway of Pacific Phase 4: Certifications and approvals passed (5-0 on each of 11A, 11B, 11C, 11D).
• Southline Project: Certifications and approvals passed (5-0 on each of 12A, 12B, 12C, 12D).
• Parcel Tax Initiative: Certificate of sufficiency accepted; placement on ballot deferred pending staff analysis; report due by August 10, 2022.
• Article 34 Housing: Council directed staff to bring a resolution for the November ballot to the July 27, 2022 meeting.
• Employee Compensation: Resolutions 15A and 15B approved unanimously.
• Meeting adjourned at approximately 11:20 PM.