South San Francisco City Council Regular Meeting – May 22, 2024

The South San Francisco City Council held a regular meeting on May 22, 2024, starting at 6:30 PM. The meeting included multiple presentations, a public hearing, and administrative business covering the FY 2024-25 operating budget and capital improvement program, a study session on updating the business license tax, and ordinances to adjust the size of the Cultural Arts Commission and increase council salaries. The Council also approved the sale of a city-owned below-market-rate housing unit. The meeting adjourned at approximately 11:10 PM.

Presentations

• National Bike Month (May) – Vice Mayor Flores presented a certificate recognizing May as National Bike Month, honoring Teresa Valleys Kelly (Safe Routes to School), Clarissa Cabinsagan (Silicon Valley Bicycle Coalition), and Daryl Yeep (Bicycle & Pedestrian Commission).
• Jewish American Heritage Month – Mayor Coleman presented a proclamation, received by Isaac Goodman and Kohenet Ray Abelea, who spoke about Jewish heritage and the importance of a ceasefire.
• Asian American and Pacific Islander Heritage Month – Proclamation accepted by Han Ching Wong, Library Program Manager, highlighting events at the library on May 25.
• National Public Works Week (May 19–25) – Councilmember Nagales presented the proclamation; Public Works Director Eunejune Kim accepted.
• LGBTQIA+ Pride Month (June) – Mayor Coleman proclaimed June as Pride Month and announced the Pride celebration on June 1 with a roller skating rink, performances, and flag raising.

Consent Calendar

The following routine items were approved unanimously (motion by Councilmember Addiego, second by Councilmember Nicolas, roll call vote 5-0):

• Approval of minutes from May 8, 2024.
• Rejection of the sole bid for the 2024 Street Surface Seal and Citywide School Improvements Project.
• Resolution approving a partial quitclaim of a public sewer easement at 100 East Grand Avenue.
• First amendment to the consulting contract with Lotus Water for the Storm Drain Master Plan ($190,000).
• First amendment to the construction agreement with Draeger, Inc. for the Training Tower Maintenance Project ($307,433; total $916,648).
• Consulting services agreement with Dorman Associates for architectural design of the Westborough Preschool Project ($587,846).
• Authorization for HR&A Advisors to examine sales/use tax records.
• Agreement with San Mateo County Library for Big Lift Inspiring Summers program staffing, accepting $15,500 in reimbursement (Budget Amendment 24.051).
• Levy of special taxes for Community Facilities District No. 2021-01 for FY 2024-25.
• Letter of support for WETA’s Zero Emission Ferry Project grant application.

Public Comments & Testimony

• Sam Takuti and Annie Lowe – Raised concerns about transparency regarding the future of the Municipal Services Building (MSB), with Lowe requesting more information.
• Cynthia Markopoulis and Peggy DeRoss – Expressed strong support for preserving the MSB as a senior/community center, arguing it is structurally sound and needed.
• Tom Carney – Criticized the city’s process for selling public property at 400 Grand Avenue, alleging a secretive negotiation with Genentech; urged public auction and transparency.
• Corey David – Warned against political associations with Assemblyman Alex Lee, labeling some policy ideas as “dystopian”; also criticized the Youth Commission for lacking parental consent requirements.
• Unnamed speaker (passionate about MSB) – Called for integrity and transparency, noting that staff had previously acknowledged a 171-page plan requiring public engagement.
• Steve Castle – Condemned the Council for selecting two Jewish speakers at the proclamation who criticized Israel; accused Hamas of lying about casualties and argued against a ceasefire.
• Fiona via Mehor – Questioned the city’s ethics, alleging falsified records, conflicts of interest, and financial mismanagement given the $20 million budget deficit.
• Danny Speaker 2 – Supported firefighters deserving a new building and criticized the previous public comments as “bigoted and transphobic.”

Discussion Items

• Zoning Ordinance Amendments (Item 16) – Senior Planner Stephanie Skangos presented a package of minor revisions, corrections, and updates to implement Housing Element programs, including ADU regulations, supportive housing, and objective design standards. The public hearing was held with no public comments. Council approved a single motion (5-0) finding the amendments exempt from CEQA and introducing the ordinance.
• FY 2024-25 Operating Budget (Item 17) – Finance Director Karen Chang presented a draft budget with projected revenues of $134 million and expenditures of $145 million, leaving a $10.8 million deficit. Strategies include $6 million in department savings (5% cuts), use of $3 million from Measure W, and $7.8 million from general fund reserves, maintaining a 20% reserve and AAA bond rating. City Manager Sharon Ranals noted no layoffs or service cuts. Council gave feedback and directed staff to bring the budget for adoption on June 12.
• Capital Improvement Program (Item 18) – Principal Engineer Matt Rubel outlined the $171 million CIP with 26 projects requesting new appropriations. Notable projects: $140,000 for police station closeout, $960,000 for LPR Phase 2, $500,000 for Westborough broadband, $900,000 for corp yard roof, $200,000 for facility condition assessment, $650,000 for pickleball courts, $200,000 for shoreline feasibility study, $1 million for storm drain improvements, $6 million for Oyster Point sewer main, $220,000 for bridge design, $400,000 for downtown Vision Zero improvements, $3.5 million for 2025 street surface seal (Area 1: Westborough), $1 million for pavement repair/crack sealing, $200,000 for reconnecting communities/highways to boulevards, and $345,000 for Junipero Serra buffered bike lanes (with $50,000 city match). Council discussed PG&E delays on public Wi-Fi and the need to release $1.62 million from infrastructure reserves. Staff directed to bring the finalized CIP on June 12.
• Business License Tax Study Session (Item 19) – Financial Services Manager Greg Henry, with consultants from Matrix and HDL, presented options to modernize the tax structure. Current tax generates $2.5 million from 3,500 businesses using a per-employee model with 21 categories. Two alternatives were presented: a progressive per-employee model (proposing $30–$150 per employee, projected to raise $3.8 million) and a gross receipts model (projected $1.9–$4.4 million). Council directed staff to develop a per-employee based proposal with adjustments for progressive rates, contractors using permit valuation, and clarifying rental property definitions. The ordinance must be finalized by August 9 for the November ballot.
• Cultural Arts Commission Membership Reduction (Item 20) – Assistant City Attorney Kimia Mahalati presented an ordinance to reduce the commission from 11 to 9 members, effective when current terms expire. Council approved (5-0).
• Council Salary Increase (Item 21) – City Attorney Sky Woodruff noted the state cap increased to $1,600/month; current salary is $1,000/month. Assistant City Manager Rich Lee provided a comparison table of all San Mateo County cities. After debate about optics amid a budget deficit, Council adopted an amendment to raise salary to $1,400/month (increase of $400), effective after the November election. Vote: 3-2 (Mayor Coleman, Vice Mayor Flores, Councilmember Addiego yes; Councilmembers Nicolas and Nagales no).
• Sale of Below Market Rate (BMR) Unit (Item 22) – Management Analyst Elia Moreno presented a resolution to sell a city-owned 3-bedroom, 2-bathroom unit (1,290 sq ft) at 2230 Gellert Blvd, Unit 3105, to a qualified buyer earning up to 100% of area median income for approximately $553,000. Council approved (5-0).

Key Outcomes

• Approved the zoning text amendment ordinance (5-0).
• Received the draft FY 2024-25 operating budget and CIP; final adoption set for June 12, 2024.
• Directed staff to proceed with a per-employee based business license tax revision, with draft language to be presented June 12; ballot deadline August 9.
• Approved reducing Cultural Arts Commission membership from 11 to 9 (5-0).
• Approved council salary increase to $1,400/month, effective after November 2024 election (3-2).
• Approved sale of BMR unit (5-0).
• Adjourned in memory of Aida Yasi (mother of city employee Inez Mendez) and Estella Maracha (mother of police officer Armando Maracha).