HomeMy WebLinkAboutMinutes 2017-12-13 @7:01MINUTES
SUCCESSOR AGENCY
•o _-_,,; CITY OF SOUTH SAN FRANCISCO
r y
b� SPECIAL MEETING
MUNICIPAL SERVICES BUILDING
COUNCIL CHAMBERS
33 ARROYO DRIVE
SOUTH SAN FRANCISCO, CA
WEDNESDAY DECEMBER 13, 2017
7:01 P.M.
CALL TO ORDER Time: 7:37 p.m.
ROLL CALL Present: Boardmembers Addiego, Garbarino and Gupta,
Vice Chair Matsumoto and Chair Normandy.
Absent: None.
AGENDA REVIEW
None.
PUBLIC COMMENTS
None.
MATTERS FOR CONSIDERATION
1. Report regarding a resolution of the Successor Agency to the Former Redevelopment
Agency of the City of South San Francisco, reviewing and approving the submittal to
the Successor Agency Oversight Board of a Recognized Obligation Payment Schedule
(ROPS) for the period July 2018 through June 2019. (Karen Miller, Financial Services
Manager)
1 a. Resolution No. 4 -2017 of the Successor Agency to the Former Redevelopment Agency of
the City of South San Francisco reviewing and approving submittal to the Successor Agency
Oversight Board of a Recognized Obligation Payment Schedule for the period July
2018 through June 2019, pursuant to Health and Safety Code Section 34177(1).
Assistant City Manager Lee presented the staff report recommending that the Successor Agency
approve a resolution reviewing and approving submittal to the Successor Agency Oversight Board of
a Recognized Obligation Payment Schedule (ROPS) for the period July 2018 through June 2019,
pursuant to the Health and Safety Code. Assistant Lee presented the draft ROPS and called the
Agency's attention to a cost escalation issue related to the Oyster Point Development (OPD) Project.
She provided a PowerPoint presentation to review the issue. She explained that as a result of cost
escalation, the ROPS 18 -19 reflected a new request for $18,890,000. The project approved by the
former Redevelopment Agency and San Mateo County Harbor District in 2011, identified $29.5M of
Redevelopment funds for Phase IC and Phase IIC. Assistant Lee presented slides depicting the
portion of the project funded by the Redevelopment Agency in Phases IC and IIC including public
infrastructure, parking and public amenities. She explained that the cost estimates contained in the
approved 2011 Development and Disposition Agreement (DDA), were based upon engineers'
estimates based on conceptual plans. Following approval of the agreements in 2011, the project
remained dormant for five (5) years until OPD acquired the project in 2016. Construction
groundbreaking occurred on November 11, 2017, for Phase IC and Phase IIC. City staff, with
approval from the City Manager and City Attorney, has and will be withdrawing funds from the
established escrow accounts, which hold the $29.5M to pay for the Successor Agency share of the
project cost. Since 2011, the cost of the development has increased. The DDA anticipated cost
escalations for Phase IC and Phase IIC and assigns responsibility to the Successor Agency and OPD.
Accordingly, included in the FY 2018 -19 ROPS is an additional need of $18.OM for Phase IC and
$890K for Phase IIC Cap Repair. Assistant Lee noted that the Successor Agency is not paying all of
the costs associated with the public infrastructure. The Developer is also contributing $25.8 million
towards the cost of Phase IC.
Assistant Lee advised the Agency that the request for additional funds conforms to the obligations of
the Redevelopment Agency identified in the DDA. All cost information was prepared by the OPD
construction management team, informed by preliminary bids from potential contractors, and peer
reviewed by City staff /consultants.
In response to a question from Vice Chair Matsumoto, Assistant Lee confirmed that the 2017 figures
assume housing east of 101.
Boardmember Addiego commented that while the cost escalation was not good news, it was
anticipated given the current construction market.
Boardmember Gupta commented that in reading through the document he was pleased that staff had
accounted for future impacts such as sea level rise.
Boardmember Garbarino commented on the expense of the project but noted costs of construction
had gone up since 2011.
Motion- Boardmember Garbarino /Second- Boardmember Gupta: to approve Resolution No. 4 -2017.
Approved by the following roll call vote: AYES: Boardmembers Garbarino, Gupta and Addiego and
Chair Normandy; NAYS: Vice Chair Matsumoto; ABSTAIN: None; ABSENT: None.
ADJOURNMENT
Being no further business, Chair Normandy adjourned the meeting at 8:11 p.m.
ub itted:
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City of South San Francisco
SPECIAL SUCCESSSOR AGENCY MEETING
MINUTES
Approved:
Liza �N&or2m�
City of South San Francisco
DECEMBER 13, 2017
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