HomeMy WebLinkAboutMinutes 2019-02-27 @6:00MINUTES
SPECIAL MEETING
CITY COUNCIL
CITY OF SOUTH SAN FRANCISCO
Meeting to be held at:
MUNICIPAL SERVICES BUILDING
COUNCIL CHAMBERS
33 ARROYO DRIVE
SOUTH SAN FRANCISCO, CA
WEDNESDAY, FEBRUARY 27, 2019
6:00 p.m.
CALL TO ORDER 6:02 p.m.
ROLL CALL Present: Councilmembers Addiego, Nagales, and Nicolas,
Vice Mayor Garbarino, Mayor Matsumoto.
AGENDA REVIEW
None.
PUBLIC COMMENTS — comments are limited to items on the Special Meeting Agenda.
None.
ADMINISTRATIVE BUSINESS
1. Study Session to present opportunities for a Community Facility District (CFD)
financing strategy for the East of Highway 101 Area. (Mike Futrell, City Manager)
City Manager Futrell presented the Industrial Area Community Facilities District (CFD) proposal
with financing strategies to solve the East of Highway 101 area Mobility Challenge by 2020. He
reported that the San Francisco Bay Area has experienced unparalleled economic success since the
end of the Great Recession. With approximately 660,000 created in the region since 2010, and the
unemployment rate in San Mateo County as of December 2018, was at 2%, reflective of the
robust economy. South San Francisco and its residents have benefited from the economic success
in the form of greater job opportunities, increased home values and the elimination of blighted
sites in the city, replaced by modern buildings.
He indicated that the economic growth has affected traffic in South San Francisco due to the
growing number of jobs and associated commuters. Much of the increased traffic is associated
with growth in the City's biotechnology and industrial area, centered along Highway 101 and East
of Highway 101 (E101 Area.) To understand traffic patterns and the impact of future economic
growth, the City began developing a new EI01 Area Traffic Master Plan. The City will develop a
new master traffic plan for areas West of Highway 101 in 2019. Once complete, both traffic master
plans will become part of the new General Plan for South San Francisco.
The E101 Area is an international hub for the biotechnology industry as well as a regional center for
industry, logistics, and travel. Presently, the E101 Area serves approximately 28,000 employees
across 21 million square feet of office/R&D, industrial, commercial, and hotel uses. Office/R&D
and industrial space is in very high demand, with vacancy rates under five percent. Over the next
two decades, the City expects to add over 13 million square feet of mostly office and R&D space in
the E101 Area, doubling its daytime population to up to 55,000 employees. Approximately half of
this growth has been approved or under construction and most will be office/R&D uses along with
new hotels, retail, and employer amenities.
He provided an overview of the E 101 challenges in accommodating expected growth such as
Regional congestion on US -101, 280, 380; Limited road access into the district via Oyster Point
Blvd, Grand Avenue, Produce Avenue or South Airport Blvd; Physical barriers created by US -101,
the Caltrain Corridor and the San Francisco Bay; and future environmental concerns related to
wetlands and sea level rise.
City Manager Futrell stated that the City hired the firm of Fehr & Peers, well-qualified
transportation experts, to develop the master traffic plan for the East of Highway 101 area. Fehr &
Peers held multiple public meetings to gain information, feedback and ideas; studied existing
travel patterns, roadway congestion, bicycle and pedestrian gaps; and evaluated the transit service
within the E 101 Area. Fehr & Peers then studied and proj ected future growth in the E 101 Area,
modeled that growth in light of existing transportation conditions, and concluded continued
growth will increase the stresses on the City's transportation systems to an unacceptable level.
In light of the conclusion that continued growth would negatively affect transportation systems,
Fehr & Peers explored and modeled possible improvements to transportation. What emerged were
five initiatives, which, if successfully implemented, would improve transportation to an
acceptable level even with the projected future growth. The Fehr & Peers study is known as
Mobility 2020. Mobility 2020 identifies major capital and operating investments for the E101
Area, which improves the transportation system; however, the plan requires an investment of
approximately $356 million for construction, and an annual operating revenue stream of
approximately $7 million for operation and maintenance. There are insufficient local, regional,
state, or federal funds available to cover the cost of the needed improvements, requiring that City
Staff look to other solutions to fund the needed improvements.
He indicated that city staff, in conjunction with many companies in the E101 Area, have explored
the establishment of a Mello- Roos Community Facilities District (CFD) as a means to raise
needed funding. Pursuant to the Mello -Roos Community Facilities Act of 1982 ("Mello -Roos
Act"), a CFD is a defined geographic area in which the City is authorized to levy annual special
taxes to be used to either finance directly the costs of specified public improvements and/or public
services, or to pay debt service on bonds issued to finance the public improvements, as well as to
pay costs of administering the CFD and for maintenance and operation of assets acquired through
the CFD. The formation of the CFD requires consent of 66.7% or more of the affected landowners.
Essentially, upon formation of a CFD, businesses in the E101 Area would pay a special tax rate of
$1.00 per building square foot per year, for a 30 -year term, with those funds going towards
improving transportation in the E101 Area. Discussion of the CFD formation process and
costs/benefits was the focus of the study session, with city staff seeking Council's guidance and
direction to continue pursuing a CFD as a means to finance transportation improvements.
SPECIAL CITY COUNCIL MEETING FEBRUARY 27, 2019
MINUTES PAGE 2
He indicated that without any improvements, the E101 Area would experience extended peak
period congestion and diminished regional competitiveness in the future. With its current
infrastructure and services, the E101 Area can theoretically absorb approximately 10,000 new
employees — equivalent to the amount of development currently under construction. However, the
growth (and any growth beyond it) will result in worsening congestion along key corridors such as
Oyster Point Boulevard and East Grand Avenue. Recent traffic studies suggest that sixteen E101
Area intersections would operationally break down if all projected growth materializes by 2040.
New roadway capacity and reduced solo driving is necessary to maintain an efficient and effective
transportation network in the E101 Area given future growth. This would require new street
connections, stronger Transportation Demand Management (TDM) programs, transit service
expansions, and walking/bicycling investments. The Mobility 2020 study focuses on five major
projects within the E101 Area to enhance access and provide viable options to travel to and from
work while reducing delay. Combined, these projects are intended to increase roadway throughput
capacity by approximately 20-30 percent and support a reduction in drive alone trips to 60 percent
of all commute trips. These projects will also improve traffic West of Highway 101 by reducing
the number of cars commuting through South San Francisco in route to major job centers East of
Highway 101. The five recommended initiatives include:
1. Utah Avenue Interchange with US -101
a. Description: Extends Utah Avenue from South Airport Boulevard to San Mateo
Avenue with a new southbound onramp and off -ramp.
b. Cost Estimate - $100M
c. Mobility Improvement: Provides a new east -west crossing of US -101 and a more
direct path to the US -101 southbound onramp, alleviating a bottleneck at South
Airport Boulevard/Produce Avenue intersection. Enables traffic to bypass East Grand
Avenue and helps maximize underutilized capacity of Utah Avenue.
d. Status: This project is on the State Transportation Improvement Program (STIP) and is
currently in design utilizing a $3.8 million grant from the Metropolitan Transportation
Commission (MTC). This Caltran supported project will finish design in early 2020,
and then move into the environmental phase, costing an additional $4 million and
lasting approximately 24 months. If placed on the fast track, this project could start
construction in 2023 and open in 2025, pending funding. This project is also on the list
of projects associated with the recently passed Measure W sales tax measure. Being on
the STIP and the Measure W list, this project is eligible for funding from multiple
sources.
2. I-380 Connector to Haskins Way/Littlefield Avenue
a. Description: Connects I-380/North Access Road directly to the E101 Area via either
Haskins Way or Littlefield Avenue
b. Cost Estimate - $130M
c. Mobility Improvement: Provides direct connection to I-380, US -101, and I-280 via
presently underutilized freeway stub. Enables traffic to travel 1-280 to I-380, then
directly into the E101 Area, bypassing US -101 completely.
d. Status: This project is in the South San Francisco FY18-19 CIP project for conceptual
design. This project is also on the list of projects associated with the recently passed
Measure W sales tax measure.
SPECIAL CITY COUNCIL MEETING FEBRUARY 27, 2019
MINUTES PAGE 3
3. Grand Avenue/US-101 Northbound Off -ramp Flyover
a. Description: Realigns northbound US -101 off -ramp to Grand Avenue by routing
traffic above the new Caltrain Station. Figure 8 shows the current and proposed road
alignment. Figure 9 is a rendering of the eastern Caltrain Plaza with the Off -Ramp
Flyover in place.
b. Cost Estimate - $35M
c. Mobility Improvement: Removes barrier to accessing Caltrain station and supports
more efficient connection to Grand Avenue for eastbound and westbound off -ramp
traffic.
d. Status: This project is in conceptual design.
4. Street Operations, Safety, and Active Transportation Improvements
a. Description: Modernizes street infrastructure to provide more efficient intersection
operations, on -street bus stops, bicycle and pedestrian improvements, and new trail
connections, creating safer links to Caltrain, Ferry Terminal and BART. See Figure 10
for a visual summary of projects. Below is a summary of project areas and cost
estimates:
Street Corridor Operations & Safety
$
71,100,000
Forbes Blvd
S
4,200,000
Gateway Boulevard
$
2,900,000
Grand Ave
$
21,800,000
Gull Drive
$
6,000,000
Oyster Paint Boulevard
S
7,100,000
South Airport Boulevard
$
14,100,000
Other Internal Street Operations TSD
$
15,000,000
Bicycle & Pedestran Access to Transit
$
28,000,000
Caltrain Trail Connections
$
7,100,000
BART/Centennial Trail Connections
5
12,900,000
b. Cost Estimate - $91M
c. Mobility Improvement: Supports improved circulation within E101 Area and
enhanced connections to transit, Bay Trail, and Centennial Trail.
d. Status: In planning.
5. Increase in Commuter Shuttles
a. Description: The City is well served by transit — two nearby BART stations, Caltrain
Station and Ferry Terminal — but cannot effectively use these assets due to the severe
lack of "last mile" commuter shuttles. Increasing the number of shuttles, and operation
and maintenance of same, is required to reduce the number of employees driving to
work.
b. Cost Estimate - Purchase shuttles, plus $6 million per year for operation and
maintenance.
c. Mobility Improvement: Maximizes ridership to promote a mode shift to transit.
d. Status: In design.
SPECIAL CITY COUNCIL MEETING FEBRUARY 27, 2019
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City Manager Futrell stated that the Five Point Solutions would enable the East of 101 Area's
transportation system to keep pace with growing demand. The improvements would help expand
the Area's peak period street capacity by approximately 20-30 percent and support a quadrupling
of transit and bicycle ridership. These solutions would also provide ancillary benefits to the areas
West of Highway 101. More transit users equate to fewer commuters driving to work, equating
to fewer cars on major arterials such as Westborough Boulevard, Hillside Boulevard and Sister
Cities Boulevard. Construction of the I-380/Littlefield Flyover allows vehicles to bypass South
San Francisco all together, travelling to work via 1-280 to I-380 and directly into the industrial
area East of Highway 101.
He stated that the East of 101 Traffic Impact Fee was established in 200, and updated in 2005
Resolution #101-2005, and in 2007 Resolution #84-2007. The East of 101 Traffic Impact fee
funds traffic improvements that help mitigate increased traffic generated from new developments
in the East of 101 Area. The fee is paid as part of the building permit issuance by developers of
new projects. Each land use category has a different generated fee paid per square foot.
Commercial use has the highest fee, followed by Office/R&D, hotels, and industrial. Completed
East of 101 Traffic Impact Fee funded projects include adding additional Northbound US 101 exit
lanes on South Airport Boulevard and Grand Avenue; adding additional turn lanes on Dubuque
and Oyster Point Boulevard; and improving the Utah Avenue and South Airport Boulevard
intersection.
In the fiscal year 2018-19 Capital Improvement Program, the East of 101 Traffic Impact Fee is
funding the design of intersection improvements at East Grand Avenue and Gateway Boulevard
and Oyster Point Boulevard at Gateway Boulevard and Veterans Boulevard. A total of $3,729,452
is allocated for these projects, leaving a current unallocated balance in the East of 101 Traffic
Impact Fee fund of $12,127,761. Receipts into the East of 101 Traffic Impact Fee fund over the
past five years are shown below:
• FY13-14: $1,886,962
• FY 14-15: $1,411,850
• FY 15-16: $1,637,445
• FY 16-17: $ 109,867
• FY 17-18: $5,698,648
He indicated that the revenue generated by the East of 101 Traffic Impact Fee was not adequate
to address the five recommended solutions in Mobility 2020. He stated that numerous CFDs have
formed in the Bay Area. For example, the City of San Mateo formed a CFD in the Bay Meadows
project, and the City of Redwood City formed a CFD around the One Marina project, both to fund
public infrastructure.
He presented Council with the proposed IA -CFD boundaries, which included all non-residential
parcels in the East of 101 Area, plus certain non- residential parcels extending to San Mateo
Avenue and Airport Blvd, located to the west of Highway 101. In total, the IA -CFD would be
comprised of approximately 493 taxable parcels with 348 unique property owners, made up of a
total land area of 1,124 acres containing approximately 20 million building square feet. He noted
that publicly owned parcels would be excluded from the proposed IA -CFD area.
SPECIAL CITY COUNCIL MEETING FEBRUARY 27, 2019
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Councilmember Addiego praised City Manager Futrell for his vision and thanked him for his
thorough presentation. He requested a study session due to discuss potential impact of the proposed
project.
City Manager Futrell stated that a study session would be scheduled for Council to discuss the
proposed CFD.
2. Report regarding an overview of City's progress towards meeting September 2019
deadline for Green Infrastructure Plan in accordance with requirements of the
Municipal Regional Permit. (Matthew Ruble, Senior Civil Engineer, Keith Lichten
from Regional Water Quality Control Board)
Senior Civil Engineer, Matthew Ruble introduced Keith Lichten with the Regional Water Quality
Control Board who provided Council with an overview of the City's progress towards the SSF
Green Infrastructure Plan and provided an overview of the Clean Water Act and the National
Pollutant Discharge Elimination Systems (NPDES) stormwater program. He stated that the San
Francisco Bay Regional Water Quality Control Board's Municipal Regional Permit (MRP)
regulates pollutants in stormwater runoff from municipal storm drain systems throughout San
Mateo, Santa Clara, Alameda, and Contra Costa Counties. Provision C.3.j of the MRP requires each
jurisdiction subject to the MRP, including City of South San Francisco, to develop a Green
Infrastructure Plan that demonstrates how each permittee will gradually shift from traditional "gray"
storm drain infrastructure -which channels polluted runoff directly into receiving waters without
treatment -to a more resilient and sustainable storm drain system comprised of "green"
infrastructure, which captures, stores and treats stormwater using specially designed landscape
systems.
Mr. Lichten stated that in addition to managing runoff in a more sustainable fashion, the Green
Infrastructure Plans must be designed to collectively achieve specific reductions in mercury and
polychlorinated biphenyls (PCBs) in stormwater runoff by 2020 and 2040, per Provisions C.1 I and
C.12 in the MRP. The City of South San Francisco's Green Infrastructure Plan must be developed and
submitted to the Water Board by September of 2019. The City is currently working on updating
conditions of approval for private development to encourage greener infrastructure. In addition, the City
received $9.5 million dollars in grant funding from Caltrans to design a regional green infrastructure
project at Orange Park. He indicated that while the short-term costs to develop a Green Infrastructure
Plan are known and were presented in 2017 with a work plan, the potential long-term costs to
retrofit existing urbanized areas with green infrastructure at levels necessary to achieve the required
pollutant load reductions may be significant.
Schaaf & Wheeler consultants provided an overview of the pre -urban development indicating that
green infrastructure projects are specifically designed to help maintain a balance of natural drainage
systems by capturing, slowing, and absorbing stormwater, as well as filtering pollutants such as
mercury and PCBs. Green infrastructure such as green streets, bioswales, permeable surfaces, green
parking lots, rain harvesting systems, and green roofs helps increase the time it takes stormwater to
runoff to flow downstream having the capability to decrease flooding, reduce erosive forces of
water, as well as filtering pollutants. Green stormwater infrastructure provides amenities with many
benefits beyond water quality improvement and groundwater replenishment, including creation of
attractive streetscapes, reduction of heat island effect, bicycle and pedestrian accessibility, clean air,
climate change resilience and mitigation, place making and community cohesion, energy savings,
SPECIAL CITY COUNCIL MEETING FEBRUARY 27, 2019
MINUTES PAGE 6
higher property values, and enhanced flood protection. The City of South San Francisco has green
infrastructure projects, created as part of the C3 requirement for private developments, the Orange
Memorial Park Regional Project, and Safe Routes to School grants (safer street crossings). Staff
will continue to participate in the C/CAG Green Infrastructure Committee meetings and will bring
the draft GI Plan to Council for adoption summer of 2019.
Mayor Matsumoto inquired about the City's efforts to implement Green Infrastructure (GI)
elements with new developments and the City's Community Civic Campus. The City of South San
Francisco implemented Green Infrastructure elements and is in the process of reviewing GI
elements for the Community Civic Campus. She inquired about trash enforcement on Caltrans
property.
Mr. Lichten stated that the San Francisco Bay Regional Water Quality Control Board issued an
enforcement order that requires Caltrans to comply with trash control from at least 1/3 of Bay Area
right of way (approximately 9,000 acres) within the next seven years. As a result, Caltrans has
committed $400 million dollars towards trash control and will be seeking partnerships with Bay
Area cities to fund cooperative projects to help cities advance clean water goals.
Councilmember Addiego indicated that the city has requested partnerships with Caltrans to address
trash on local roadways and thanked Mr. Lichten for his efforts in addressing trash control and
pursuing enforcement.
ADJOURNMENT
Being no further business, Mayor Matsumoto adjourned the meeting at 7:01 p.m.
Respectfully submitted by:
Rosa Govea Acosta, CMC, CPMC
City Clerk
App ved by:
1L
atsumoto
Mayor
Approved by the City Council: C73 10 / 201 Q
SPECIAL CITY COUNCIL MEETING FEBRUARY 27, 2019
MINUTES PAGE 7