South San Francisco City Council Regular Meeting - July 12, 2023

The South San Francisco City Council held a regular meeting on July 12, 2023, at 6:00 PM in the Municipal Services Building Council Chambers. The meeting included presentations, public comments, a public hearing on a major office/R&D development at 800 Dubuque Avenue, and several administrative and consent items. Key outcomes include approval of the 800 Dubuque project, opposition to a statewide ballot initiative, and authorization for a new fire rescue boat.

Consent Calendar

• Minutes: Approved the minutes from June 28, 2023. Unanimous.
• Wage and Salary Schedules: Approved resolutions for Fiscal Year 2023-2024 and an amendment for Fiscal Year 2022-2023 effective September 30, 2022. Unanimous.
• Grant Acceptance: Accepted a $4,125 grant from San Mateo County Office of Arts and Culture for the Parks and Recreation Department (Budget Amendment 24.003). Unanimous.
• SB 1 Projects: Adopted the list of projects for Fiscal Year 2023-2024 funded by the Road Repair and Accountability Act of 2017. Unanimous.

Public Comments & Testimony

• Demetrius Vlahakos: Expressed safety concerns about a neighbor’s bee hives, stating bee swarms have made his backyard unusable and endangered his grandchildren. He requested city intervention. City Manager acknowledged a known code enforcement case and said follow-up would occur.
• Leah Taylor (Executive Director, South San Francisco Housing Authority): Introduced youth interns from the housing authority’s Civic Leadership program, thanked the city for prompt assistance with a sewer blockage, and announced a free vision screening event on July 17, 2023.
• Leslie Fong: Thanked the city for responding to her earlier housing inquiry and expressed support for Sign Hill restoration funding.
• Public Comment on Measure W (during Item 10): A speaker (not identified by name) criticized Measure W (a 0.5% sales tax), arguing that it did not reach the two-thirds threshold and that the public felt misled. The City Attorney clarified that Measure W was a general tax requiring only a simple majority under Proposition 218.

Presentations

• Proclamation – Disability Pride Month (July 2023): Recognized Ulysses (a youth with disabilities) for his community service and advocacy. His mother praised South San Francisco for inclusive programs (e.g., Full of Fun Camp, Gatepad Academy).
• Certificates – Oyster Point Dragons Dragon Boat Team: Congratulated the team for qualifying for Team USA 2023 and competing in Thailand in August 2023. Two paddlers shared personal stories of growth through the sport.
• Certificates – Outgoing Youth Commissioners: Recognized Ethan Mizzy, Melissa Hua, and Megan Yoshida for their service. Commissioners thanked the city for supporting youth voices.
• Proclamation – Parks and Recreation Month (July 2023): Presented to Parks and Recreation Commission Chair Steve Ferpo. Highlights included free bocce ball, swimming, open gym, and a movie night at Orange Park on July 21, 2023.

Discussion Items

Public Hearing – 800 Dubuque Avenue Office/R&D Development (Item 9)

• Proposal: A new office/R&D campus on a 5.89-acre site, consisting of 857,000 square feet across three buildings (max height 195 feet), 1,335 below-grade parking spaces (1.5 per 1,000 sq ft), 190 bike parking spaces, and a 7,500 sq ft event center. The project is all-electric, aiming for LEED Gold and Fitwel certification.
• Staff Presentation (Chris Espiritu, Senior Planner): The project conforms to the East of 101 Transit Core zoning, requires a community benefits program due to an FAR of 3.3 (exceeding 2.5), and includes a TDM plan targeting a 50% non-auto mode share. A Mitigated Negative Declaration under CEQA was adopted after a 30-day comment period.
• Applicant Presentation (Carrie Algazi, IQHQ): Highlighted transit-oriented design, sustainability, equity (50% women employees), union labor, and community benefits including public plazas, enhanced connectivity, public art, and over $50 million in impact fees.
• Council Discussion:
  • Vice Mayor Nagales inquired about TDM enforcement and the commercial linkage fees (estimated $15 million from this project, plus $3.4 million from the adjacent 580 Dubuque project, totaling ~$18.4 million for affordable housing).
  • Councilmember Coleman questioned the availability of amenities to the public; applicant stated event center can be rented, cafe/restaurant open to public.
  • Councilmember Adiego expressed concern about market conditions and the developer’s capacity, noting past stalled projects; applicant reassured they have strong lending relationships and track record.
  • Mayor Nicolas questioned the rounding of the community benefits fee ($12.6 million offered vs. $12 million if paying fee); staff clarified the offered package is binding and above the standard fee.
• Votes:
  • Resolution 9A (CEQA findings): Unanimous approval. (Councilmembers Addiego, Coleman, Vice Mayor Nagales, Mayor Nicolas all aye).
  • Resolution 9B (Design Review Permit, TDM Plan, Community Benefits): Unanimous approval.

Administrative Business – Ballot Initiative 1935 (Item 10)

• Presentation (Christina Fernandez, Deputy City Manager; Niccolo De Luca, Townsend Public Affairs): Described the “Taxpayer Protection and Government Accountability Act” (qualified for Nov 2024 ballot), which would increase voter thresholds for taxes/fees, require stricter cost-justification, and retroactively cancel taxes adopted after Jan 1, 2022 unless re-approved.
• Council Discussion: Vice Mayor Nagales and Councilmember Coleman opposed the measure, citing its threat to local control and citing South San Francisco’s successful Measure W (a 0.5% general sales tax approved by simple majority). Councilmember Addiego declined to support the opposition letter, stating he was not “there yet” and noted that the public may support accountability. Mayor Nicolas supported local control and favored the resolution.
• Vote: 3-1 to adopt the resolution opposing ballot initiative 1935 and authorize the mayor to send a letter. (Councilmember Addiego opposed).

Extended Learning Program (Item 11)

• Presentation (Angela Duldulao, Deputy Director of Parks and Recreation): Request to operate an Expanded Learning Opportunities Program (ELOP) in partnership with SSFUSD, providing free after-school care for income-eligible families, including transitional kindergarteners (new). Budget amendment of $510,000 (fully reimbursed by district) to serve up to 120 children across six school sites.
• Council Discussion: Questions about waitlists (currently 23 at Bury Bury, 55 at Monteverdi, 3 at Los Ritos). Council supported expanding services.
• Vote: Unanimous approval.

Kaiser Permanente Grant for Senior Meals (Item 12)

• Presentation (Greg Mediati, Parks and Rec Director): Accepted $25,000 grant to sustain the senior congregate meal program (serving 90-100 meals twice a week). Without grant, program would have to reduce frequency or seek city funds.
• Vote: Unanimous approval.

Fire Rescue Boat Purchase (Item 13)

• Presentation (Fire Chief Jess Magallanes): Request to purchase a 32-foot North River rescue/fire boat for $389,949.33 to replace a 2001 surplus Coast Guard boat with hull deterioration. The new boat will have an enclosed cab, enhanced electronics, and firefighting capability. A temporary boat was purchased for $23,000. Delivery expected in 18 months.
• Council Discussion: Councilmember Adiego raised concerns about hull maintenance and suggested developing a regular inspection schedule. Chief acknowledged need for better maintenance protocols.
• Vote: Unanimous approval.

Tourism Marketing District (Item 14)

• Presentation (Ernesto Lucero, Economic Development Manager; John Hutar, San Francisco Peninsula): Request to consent to the City of Burlingame forming the San Francisco Peninsula Tourism Marketing District, replacing the existing district, to generate ~$10.9 million per year from lodging assessments (1.5% for large hotels, 0.75% for others). South San Francisco hotels have been members since 1971. The district would fund marketing and sales to offset slow post-pandemic recovery, especially given reduced San Francisco convention traffic.
• Council Discussion: Councilmember Addiego expressed initial skepticism but became supportive after meeting with stakeholders. Mayor Nicolas noted the importance of TOT revenue for the general fund.
• Vote: Unanimous approval.

Key Outcomes

• 800 Dubuque Avenue Development: Approved with unanimous votes; developer must deliver $12.6M community benefits package, adhere to TDM plan (50% non-auto mode share), and pay ~$51.3M in impact fees (including $15M commercial linkage fee).
• Opposition to Ballot Initiative 1935: Resolution adopted 3-1; mayor authorized to send opposition letter to legislative delegation.
• ELOP Program: Authorized with $510,000 budget (fully reimbursed) to provide after-school care for up to 120 children, including TK.
• Senior Meal Program: Accepted $25,000 Kaiser grant to continue twice-weekly meals.
• Fire Rescue Boat: Approved $389,949.33 purchase; boat to be delivered within 18 months.
• Tourism Marketing District: Granted consent to Burlingame; South San Francisco hotels included in new district.
• League of California Cities Delegates: Appointed Mayor Nicolas as primary voting delegate, City Manager Ranals as first alternate, and Councilmember Flores as second alternate for the September 20-22, 2023 conference.
• Closed Session: Held to discuss real property negotiations with San Mateo County regarding tax sale properties on Westborough Boulevard, Sylvester Road, and several other parcels. No reportable action.