HomeMy WebLinkAbout2004-06-23 e-packetAGENDA
REDEVELOPMENT AGENCY
CITY OF SOUTH SAN FRANCISCO
REGULAR MEETING
MUNICIPAL SERVICE BUILDING
COMMUNITY ROOM
WEDNESDAY, JUNE 23, 2004
7:00 P.M.
PEOPLE OF SOUTH SAN FRANCISCO
You are invited to offer your suggestions. In order that you may know our method of conducting Agency
business, we proceed as follows:
The regular meetings of the Redevelopment Agency are held on the second and fourth Wednesday of
each month at 7:00 p.m. in the Municipal Services Building, Community Room, 33 Arroyo Drive, South
San Francisco, California.
Public Comment: For those wishing to address the Board on any Agenda or non-Agendized item, please
complete a Speaker Card located at the entrance to the Community Room and submit it to the Clerk.
Please be sure to indicate the Agenda Item # you wish to address or the topic of your public comment.
California law prevents Redevelopment Agency from taking action on any item not on the Agenda
(except in emergency circumstances). Your question or problem may be referred to staff for investigation
and/or action where appropriate or the matter may be placed on a future Agenda for more comprehensive
action or a report. When your name is called, please come to the podium, state your name and address for
the Minutes. COMMENTS ARE GENERALLY LIMITED TO THREE (3) MINUTES PER SPEAKER.
Thank you for your cooperation.
The Clerk will read successively the items of business appearing on the Agenda. As she completes
reading an item, it will be ready for Board action.
RAYMOND L. GREEN
Vice Chair
RICHARD A. GARBARINO, SR.
Boardmember
RICHARD BATTAGLIA
Investment Officer
MICHAEL A. WILSON
Executive Director
KARYL MATSUMOTO
Chair
JOSEPH A. FERNEKES
Boardmember
PEDRO GONZALEZ
Boardmember
SYLVIA M. PAYNE
Clerk
STEVEN T. MATTAS
Counsel
PLEASE TURN OFF CELL PHONES AND PAGERS
HEARING ASSISTANCE EQUIPMENT IS AVAILABLE FOR USE BY THE HEARING-IMPAIRED AT REDEVELOPMENT AGENCY MEETINGS
CALL TO ORDER
ROLL CALL
AGENDA REVIEW
PUBLIC COMMENTS
CONSENT CALENDAR
1. Motion to approve the minutes of June 9, 2004
2. Motion to confirm expense claims of June 23, 2004
3. Resolution authorizing lease agreements for 109 Longford Avenue to Shelter Network
and 312 Miller Avenue to existing tenants
ADMINISTRATIVE BUSINESS
4. Resolution approving the use of the tax increment generated by the Downtown/Central
Redevelopment Project Area to pay for debt service on the South San Francisco
Conference Center site acquisition
ADJOURNMENT
REGULAR REDEVELOPMENT AGENCY MEETING
AGENDA
JUNE 23, 2004
PAGE 2
Redevelopment Agency
Staff Rep ort
DATE:
TO:
FROM:
SUBJECT:
June 23, 2004
Redevelopment Agency Board
Marty Van Duyn, Assistant Executive Director
RESOLUTION AUTHORIZING AGREEMENTS TO LEASE 109 LONGFORD
AVENUE TO SHELTER NETWORK AND 312 MILLER AVENUE TO EXISTING
TENANTS
RECOMMENDATION
It is recommended that Redevelopment Agency Board adopt a resolution approving month-to-
month leases to four existing tenants at 312 Miller Avenue, and approving a lease agreement to
rent 109 Longford Avenue to Shelter Network
BACKGROUND/DISCUSSION
312 Miller Avenue
In April 2004, the City of South San Francisco Redevelopment Agency authorized the purchase of
312 Miller Avenue to preserve these units as affordable housing. The property contains four
residential units, two facing Miller Avenue and two facing Tamarack Lane. Low-income tenants
occupy the four units and pay rents ranging between $800 and $1,000 per month.
As the new property owner, it is in the interest of the Agency to enter into month-to-month lease
agreements with the tenants to ensure the tenants are aware of the conditions under which they may
continue to rent these units from the Agency. North Peninsula Neighborhood Services Center
(NPNSC) will manage the property. NPNSC currently manages the City's units at 339-341
Commercial Avenue. Along with property management, NPNSC will provide case management
as needed by the low-income tenants.
109 Longford Avenue
Since September 2002, the City has leased 109 Longford Avenue to Shelter Network. Staff is
recommending that the City renew its lease to Shelter Network for its "Bridges" Program. The
"Bridges" Program is designed for transitional shelter graduates who need more than the usual two
to four months of assistance to sustain permanent housing. "Bridges" provides transitional
housing for six to twelve months to both individuals and families who demonstrate a need for
extended support to ensure they are able to secure and maintain themselves in permanent housing.
Over the past the past few years, three Bridges families have occupied 109 Longford Avenue.
Staff Report
Subject: Lease Agreements 312 Miller Avenue and 109 Longford Avenue
Page 2
The City's lease with Shelter Network includes provision to safeguard the City's investment in the
property while providing affordable housing to a "Bridges" participant. The lease agreement is for
a period of one year and will become a month-to-month lease thereafter. Notwithstanding this
agreement, the City has the fight to issue a notice to vacate the premises upon a ninety (90) day
notice. The City is giving Shelter Network a ninety-day notice to ensure they have sufficient time
to relocate the "Bridges" participant to new housing should the City terminate the tenancy. Such
an agreement between the City and Shelter Network will not preclude Shelter Network fi:om
issuing a thirty-day notice or a three-day notice to vacate to their sub-tenant if they find it necessary
to do so.
In addition, both Shelter Network and the subtenant will waive ail assistance and/or benefits or
other payments for relocation they may become eligible for under the Relocation Assistance Act.
Shelter Network will be responsible for paying all utility, maintenance, and damages caused by the
sub-tenant, and will inspect and maintain the property in the condition it was delivered.
An addendum to the leases at both Miller Avenue and Longford Avenue also sets rules with respect to
proper use of the premises and tenant behavior.
CONCLUSION
To continue providing affordable housing, it is recommended that Redevelopment Agency Board and
City Council approve month-to-month leases to four existing tenants at 312 Miller Avenue and
approve a lease agreement to rent 109 Longford Avenue to Shelter Network
Assistant Executive D~rector
Approved: - '
Michael A. Wilson
Executive Director
Attachment: Resolution
RESOLUTION NO.
REDEVELOPMENT AGENCY, CITY OF SOUTH SAN FRANCISCO
STATE OF CALIFORNIA
A RESOLUTION APPROVING MONTH-TO-MONTH 11~ASES TO
F()[!R EXISTING TENANTS AT 312 MILLER AVENUE AND
APPR()VING A LEASE AGREEMENT TO RENT 109 LONGFORD
AVENUE TO SHEIfFER NETWORK
WHEREAS, to continue providing affordable housing, it is recommended that the
Redevelopment Agency approve month-to-month leases to four existing tenants at 312 Miller
Avenue and approve a lease agreement to rent 109 Longford Avenue .to Shelter Network.
NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of
South San Francisco that the Redevelopment Agency hereby approves month-to-month leases to
four existing tenants at 312 Miller Avenue and approve a lease agreement to rent 109 Longford
Avenue to Shelter Network.
BE IT FURTHER RESOLVED that the City Manager/Executive Director are hereby
aUthorized to executive the leases.
I hereby certify that the foregoing Resolution was regularly introduced and adopted by the
Redevelopment Agency of the City of South San Francisco at a meeting held
on the day of ,2004 by the following vote:
AYES:
NOES'
ABSTAIN:
ABSENT:
S:\Current Reso's\6-23-04Longford. Ave. Lease.res.doc
ATTEST:
Clerk
Redevelopment Agency
S taft R ep o rt
Date:
To:
From:
Subject:
June 23, 2004
Redevelopment Agency Board
Jim Steele, Agency Financial Officer
APPROVAL OF THE USE OF TAX INCREMENT GENERATED BY THE
DOWNTOWN/CENTRAL REDEDVELOPMENT PROJECT TO PAY FOR
COST OF ACQUIRING THE SOUTH SAN FRANCISCO CONFERENCE
CENTER SITE
RECOMMENDATION:
It is recommended that the Redevelopment Agency Board approve the attached Resolution
that approves of the use of tax increment from the Downtown Redevelopment Project Area
to pay for debt service on the Conference Center site acquisition.
BACKGROUND/DISCUSSION:
The City originally took possession of the land and facilities at 255 South Airport Boulevard for
use as a site for the Conference Center, under terms of a long-term lease with Erwin W. Mayer
and Josephine Anne Mayer dated December 1, 1989. In 1999, the City issued $6,145,000 in
Certificates of Participation for the purpose of funding the acquisition of the Conference Center
Site from the Mayers. Since that time, the City's financial situation has deteriorated such that it
can no longer reasonably make the debt service payments on these bonds without causing service
level reductions to the community.
Therefore, staff is recommending that the Agency Board approve the attached resolution, which
would authorize the use of Downtown Redevelopment tax increment dollars to pay for the 1999
debt service payments. Approval of the attached Resolution would finalize the legislative steps
the Board needs to take under Redevelopment Law to complete the budget transactions discussed
and approved by the City Council in both the Midyear 2003-04 Budget Amendment'Resolution
and the 2004-05 Budget Adoption Resolution. The Board may recall that in those budget
documents, Council approved the shifting of debt service payments to the Redevelopment
Agency for the Conference Center site acquisition.
Changed Financial Situation
Since the time the 1999 bonds were issued, the City's General Fund budget has been adversely
impacted by a number of factors. They include:
Staff Report
Use of Downtown Tax Increment for Conference Center Bonds
Page 2 of 3
· Rising health and.retirement costs.
· The loss of a major sales tax generator.
· A continued economic downturn exacerbated by the September 11, 2001 events, which
negatively impacted the local hotel industry.
· State budget actions that have taken away previously secure City revenue sources.
It is no longer feasible for the City's General Fund to make debt service payments on the 1999
bonds without additional and critical service level reductions on the community. The City has
cut $6.9 million from its budget over the past three years, and taken other actions that combined
have totaled $10.9 million to address the budget shortfall caused by the factors mentioned above.
The budget cuts have resulted in employee layoffs, and have included services in most aspects of
the City's budget, affecting services in such critical areas as:
· Police services: the 2004-05 budget freezes three vacant police officer positions.
· Fire services: the 2004-05 budget reduces overtime in the Fire budget, and will result in a
reduction in minimum staffing from 20 to 19 per shift on various days per year.
· Library services; hours have been reduced, library materials have been cut, and new fees are
being charged.
Parks, recreation, and facilities: parks and facilities are not being maintained to a level that is
prudent for the long term care of those facilities. Recreation programs have been
consolidated and/or scaled back.
No other reasonable means of financing the Conference Center site debt service payments exist.
If the General Fund were to continue making these debt service payments, significant additional
service losses to the community would result.
Benefit of the Conference Center to the Downtown Redevelopment Proiect Area
The Conference Center site is just outside the boundaries of the Downtown Redevelopment
Project Area. However, the Conference Center benefits the Downtown Redevelopment Project
Area because it assists in eliminating blight inside the Project Area. In addition:
The Project Area is the largest Redevelopment Project Area, and contains the most medium
and large sized businesses, which are the primary targets for the use of the Conference
Center.
· Businesses in the Project Area have a need for meeting space.
· Having sufficient meeting space has been a factor in new businesses locating in the Project
Area, which has contributed to the redevelopment and elimination of blight in that area. New
Staff Report
Use of Downtown Tax Increment for Conference Center Bonds
Page 3 of 3
businesses locating in the Project Area since the Conference Center was built include
portions of the Britannia/Pointe Grande Business Park and office buildings on' Oyster Point
Blvd. In addition, since the time the Conference Center was developed, South San
Francisco's second largest employer, Genentech, has also expanded its business.
· New hotels attracted to the Project Area since the Conference Center was built include the
Airport Inn and the Ramada Limited.
Consistency With Redevelopment Implementation Plan
Funding the Conference Center is consistent with the most recent Implementation Plan, adopted
in 1999 and updated in 2002. Specifically, the Implementation Plan calls for:
· Acquiring and improving "public buildings and structures, including a ...cultural facility";
· Activities and programs that attract new businesses;
· Encouraging development of visitor-oriented uses, and "stressing special events that draw
new attendees."
FISCAL IMPACT:
Approval of the attached resolution will result in savings of $400,000 annually to the City's
General Fund, preventing further budget cuts. Sufficient tax increment exists in the Downtown
Redevelopment Fund to make the ongoing debt service payments.
ereparedby: Approved~--~_~~~. _ .
Michael .4 Wilson
Executive Director
Agency Financial Officer
Attachments:
Resolution
RESOLUTION NO.~
REDEVELOPMENT AGENCY, CITY OF SOUTH SAN FRANCISCO,
STATE OF CALIFORNIA
A RESOLUTION AUTHORIZING THE USE OF TAX INCREMENT
GENERATED BY THE DOWNTOWN/CENTRAL REDEVELOPMENT PROJECT
TO PAY FOR THE COSTS OF ACQUIRING THE SOUTH SAN FRANCISCO
CO~rF~.~q~ c'~NT~ S~TE
WHEREAS, the Agency and the City of South San Francisco (the "City") have heretofore
entered into a Joint Exercise of Powers Agreement dated September 11, 1991, establishing the City
of South San Francisco Capital Improvements Financing Authority (the "Financing Authority") for
the purpose of providing an entity which can assist in providing financing for purposes which are
authorized under the Joint Powers Law (Section 6500 et seq. of the California Government Code);
and
WHEREAS, a Redevelopment Plan for the Downtown/Central Redevelopment Project (the
"Project Area"), in the City of South San Francisco (the "City"), has been adopted in compliance
with all requirements of the Law; and
WHEREAS, a transient occupancy tax in the amount of $2.50 per day per room is levied and
collected by the City for the exclusive purpose of funding the establishment and maintenance of a
conference center in the City (the "Conference Center Tax") pursuant to Ordinance No. 1066-89,
adopted by the City Council of the City on July 12, 1989 and approved by the voters on November 7,
1989, and Section 4.20.035 of the City's municipal code; and
WHEREAS, the City originally took possession of the land and facilities at 255 South
Airport Boulevard (the "Conference Center Site"), pursuant to a long term lease with Erwin W.
Mayer and Josephine Anne Mayer, his wife, as landlord (the "Prior Owners"), dated as of December
1, 1989; and
WHEREAS, the Conference Center is located in just outside the boundaries of the
Downtown Redevelopment Project Area (the "Project Area"); and
WHEREAS, the City caused to be executed and delivered $6,145,000 1999 Certificates of
Participation (the "1999 Certificates") pursuant to a Trust Agreement, dated as of January 1, 1999,
among the City, the Financing Authority and U.S. Bank Trust National Association for the purpose
of funding the acquisition of the Conference Center Site from the Prior Owners, and as a result of
such acquisition, the City is currently the owner of the Conference Center Site and the Conference
Center; and
WHEREAS, the Agency has determined to pay for the cost of acquiring the Conference
Center Site with tax increment generated by the Project Area.
NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of
South San Francisco that:
A public heating has been duly conducted by the City Council on the question of whether
the Agency shall pledge tax increment from the Project Area to pay the cost of acquiring
the Conference Center Site, and every person wishing to speak on that issue has been
heard. The Agency hereby confirms the determinations made by the City Council with
respect to the Conference Center, namely:
a) the Conference Center (including the Conference Center Site) is of benefit to the
Project Area for several reasons, among them:
(i) It has attracted new hotel development into the project area;
(ii) It has given project area businesses much needed meeting space at reasonable rates;
(iii)It has attracted new business investment into the Project Area;
b) no other reasonable means of financing the acquisition of the Conference Center Site
are available to the City;
c)
that the payment of tax increment for the Conference Center Site, by making payments
on the 1999 Certificates, will assist in the elimination of one or more blighting
conditions in the Project Area, and is consistent with the Implementation Plan adopted
pursuant to Section 33490 of the Health and Safety Code; and
d) use of tax increment for acquisition of the Conference Center site is consistent with
the most recent Redevelopment Implementation Plan.
o
The Executive Director, Financial Officer and Secretary, and all other appropriate officials of
the Agency, are hereby authorized and directed to execute such agreements, documents and
certificates as may be necessary to affect the purposes of this resolution and the payment
herein authorized.
I hereby certify that the foregoing Resolution was regularly introduced and adopted by the
Redevelopment Agency of the City of South San Francisco at a regular meeting held on the
__ day of~, 2000 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
S:\Current Reso's\6-23-04prom.note.rda..doc
ATTEST:
Clerk
AGENDA
CITY COUNCIL
CITY OF SOUTH SAN FRANCISCO
REGULAR MEETING
MUNICIPAL SERVICE BUILDING
COMMUNITY ROOM
WEDNESDAY, JUNE 23, 2004
7:30 P.M.
PEOPLE OF SOUTH SAN FRANCISCO
You are invited to offer your suggestions. In order that you may know our method of conducting
Council business, we proceed as follows:
The regular meetings of the City Council are held on the second and fourth Wednesday of each month at
7:30 p.m. in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San
Francisco, California.
Public Comment: For those wishing to address the City Council on any Agenda or non-Agendized item,
please complete a Speaker Card located at the entrance to the Council Chamber's and submit it to the
City Clerk. Please be sure to indicate the Agenda Item # you wish to address or the topic of your public
comment. California law prevents the City Council from taking action on any item not on the Agenda
(except in emergency circumstances). Your question or problem may be referred to staff for
investigation and/or action where appropriate or the matter may be placed on a future Agenda for more
comprehensive action or a report. When your name is called, please come to the podium, state your
name and address (optional) for the Minutes. COMMENTS ARE GENERALLY LIMITED TO THREE
(3) MINUTES PER SPEAKER. Thank you for your cooperation.
The City Clerk will read successively the items of business appearing on the Agenda. As she completes
reading an item, it will be ready for Council action.
KARYL MATSUMOTO
Mayor
RAYMOND L. GREEN
Vice Mayor
JOSEPH A. FERNEKES
Councilman
RICHARD A GARBARINO, SR.
Councilman
PEDRO GONZALEZ
Councilman
RICHARD BATTAGLIA
City Treasurer
SYLVIA M. PAYNE
City Clerk
MICHAEL A. WILSON
City Manager
STEVEN T. MATTAS
City Attorney
PLEASE TURN OFF CELL PHONES AND PAGERS
HEARING ASSISTANCE EQUIPMENT AVAILABLE FOR USE BY THE HEARING IMPAIRED AT CITY COUNCIL MEETINGS
CALL TO ORDER
ROLL CALL
PLEDGE OF ALLEGIANCE
INVOCATION
PRESENTATIONS
· Weed Abatement Program Update - Fire Prevention/Code Enforcement -
Paramedic/Firefighter Paule Medeiros
· Annual Jack Drago Cultural Arts Scholarship - recipient: Reina Victoria
· Soundwall Update - Public Works Director John Gibbs and Joe Metcalf, Myers
Development
· Report on Fourth of July illegal fireworks law enforcement activities - Police Chief Mark
Raffaelli and Fire Chief Phil White
AGENDA REVIEW
PUBLIC COMMENTS
ITEMS FROM COUNCIL
· Announcements
· Committee Reports
CONSENT CALENDAR
1. Motion to approve the minutes of May 26 and June 9, 2004
2. Motion to confirm expense claims of June 23, 2004
o
Motion to adopt an ordinance amending Chapter 20.125, Inclusionary
Housing, clarifying standards for income limits, imposing fines for non-compliance,
modifying the right of first refusal and making other cOnsistent administrative changes
Resolution amending FY 2004-05 capital improvement budget for the Mitchell Avenue
Rehabilitation Project in an amount not to exceed $180,000
o
Resolution authorizing acceptance of funds from Henry Cristopherson for a Revivant
CPR Board in the amount of $14,000
o
Resolution approving Fiscal Year 2004-05 interim funding for the South San Francisco
Conference Center
Acknowledgement of proclamations issued: Francisca deLarios Hansen, June 2, 2004,
and Flag Day, June 8, 2004
REGULAR CITY COUNCIL MEETING
AGENDA
JUNE 23, 2004
PAGE 2
PUBLIC HEARING
8. Consideration of approving the use of the tax increment generated by the
Downtown/Central Redevelopment Project Area to pay for debt service on the South
San Francisco Conference Center site acquisition
COUNCIL COMMUNITY FORUM
ADJOURNMENT
REGULAR CITY COUNCIL MEETING
AGENDA
JUNE 23, 2004
PAGE 3
StaffReport
DATE:
TO:
FROM:
SUBJECT:
.4 GEND.4 ITEM tt3
~une 23t 2004
The Honorable Mayor and City Council
Steven T. Mattas, City Attorney
Adoption of an Ordinance amending Chapter 20.125,
Requirements to the South San Francisco Municipal Code.
Inclusionary Housing
RECOMMENDATION:
Adopt an ordinance amending Chapter 20.125, Inclusionary Housing Re. quirements to the South San
Francisco Municipal Code.
B ACKGROUND/DISCUS SION:
Council has previously waived reading and introduced the following ordinance. The Ordinance is now
ready for adoption.
AN ORDINANCE AMENDING CHAPTER 20.125, INCLUSIONARY HOUSING
REQUIREMENTS TO THE SOUTH SAN FRANCISCO MUNIC~AL CODE
(Introd(~ 5~)04-Vote 5-0)
gteven ~ Mattas, City Attorney
Michael A. Wilson, City Manager
Enclosure: Ordinance
ORDINANCE NO.
AN ORDINANCE AMENDING
H()IISING REQUIREMENTS, TO
1541 INICIPAL CODE
CHAPTER 20.12,5, INCLUSIONARY
THE SOUTH SAN FILSNCISCO
WHEREAS, on October 13, 1999, at a duly noticed public hearing, the City of South San
Francisco adopted an updated General Plan; and
WHEREAS, at a duly noticed public hearing of the City Council on September 26, 2001, the City
Council adopted Chapter 20.125, Inclusionary Housing Requirements; and
WHEREAS, The City of South San Francisco certified the Housing Element of its General Plan
on December 11, 2002. The certified Housing Element provides for the development of affordable, well
designed and properly located residential housing for all economic sectors of the community in a manner
which fosters and maintains the support of the entire community; and
WHEREAS, staff has identified,
Requirements, certain areas that require
provisions requiring clarification; and
through implementation of the Inclusionary Housing
clarification and proposed amendments to address those
WHEREAS, the Planning Commission of the City of South San Francisco, at a duly noticed
public hearing on May 5, 2004, recommended that the City Council adopt the proposed amendments to
Chapter 20.125.
NOW THEREFORE, the City Council of the City of South San Francisco does hereby ordain as
follows:
SECTION 1: AMENDMENTS TO CHAPTER 20.125
Chapter 20.125, entitled "Inclusionary Housing Requirements" is hereby amended as set forth in Exhibit
A, attached hereto and incorporated herein by reference. Project applications submitted but not yet
approved by the governing body as of the Effective Date of this Ordinance shall be subject to the
provisions of Chapter 20.125 in effect at the time the project application was deemed complete.
SECTION 2: PURPOSE
To ensure that all residential developments provide a range of housing opportunities for all identifiable
economic segments of the population, including households of lower and moderate income.
SECTION 3: FINDINGS
Based on all evidence in the record, including but not limited to the testimony, staff reports and other oral
and written material provided to the City Council at the duly noticed public hearing on May 26, 2004, the
City Council makes the following findings:
A. South San Francisco General Plan and Housing Element
Appropriateness and Effectiveness of the Housing Element: In adopting the amendments to Chapter
20.125, the City of South San Francisco finds that the amendments further the Housing Element goals,
objectives, and policies in contributing to the attainment of the State's housing goal in that:
Housing Eletnent Goals and Policies:
mo
Goal 1. Encourage a supply of housing units sufficient to assure each resident an
attractive, healthful, safe environment within a wide range of designs, types, sizes, and
prices.
B. Goal 2. Continue to support the provision of housing by both the private and public
sector for all income groups in the community.
Policy 2A. Eliminate constraints to affordable housing.
Policy 2B. Stimulate the construction of lower cost units by providing incentives and
encouraging mixed use projects, second units, density bonuses, and mamtfactured
housing.
Policy 2D. hzvolve the City directly in retaining and increasing the supply of
a. ffbrdable housing.
Policy 2E. Continue to cooperate with other goven~mental agencies and take an active
interest in seeking solutions to area-wide housing problems.
Analysis: The above referenced policies support implementation of the proposed amendments as a means
to achieve the goal of providing housing to all income levels and at various phces. The amendments
clarify existing requirements as to income criteria, submittal of Affordable Housing Agreements and
make other administrative amendments designed to streamline approval of residential development.
Based on the foregoing, the amendments to the Inclusionary Ordinance are consistent with and further the
goals established in the Housing Element of the City of South San Francisco's General Plan.
B. California Environmental Quality Act:
Pursuant to the California Environmental Quality Act (CEQA) Guidelines, the City Council declares that
this ordinance is exempt from CEQA based on the following findings:
This ordinance is covered by the general rule that CEQA applies only to projects which have the potential
for causing a significant effect on the environment. This ordinance is not a "project" within the meaning
of Section 153'78 of the State CEQA Guidelines, because it has no potential for resulting in a physical
change in the environment, directly or ultimately. This ordinance does not, in itself, allow the
construction of any building or structure. This ordinance, therefore, has no potential for resulting in
physical change in the environment, directly or ultimately. For the reasons set froth herein, it can be seen
with cmXainty that there is no possibility that this ordinance will have a significant effect on the
environment, and therefore, the ordinance is not subject to CEQA.
SECTION 4: SEVERABILITY
In tine event any section or portion of this ordinance shall be determined invalid or unconstitutional, such
section or portion shall be deemed severable and all other sections or portions hereof shall remain in full
force and effect.
SECTION 5: PUBLICATION AND EFFECTIVE DATE.
Pursuant to the provisions of Government Code Section 36933, a Summary of this Ordinance shall be
prepared by the City Attorney. At least five (5) days prior to the Council meeting at which this Ordinance
is scheduled to be adopted, the City Clerk shall (1) publish the Summary', and (2) post in the City Clerk's
Office a certified copy of this Ordinance. Within fifteen (15) days after the adoption of this Ordinance,
the City Clerk shall (1) publish the summary, and (2) post in the City Clerk's Office a certified copy of
the full text of this Ordinance along with the names of those City Council members voting for and against
this Ordinance or otherwise voting. This ordinance shall become effective thirty days from and after its
adoption.
Introduced at a regular meeting of the City Council of the City of South San Francisco, held the
__ day of ,2004, by the following vote:
Adopted as an Ordinance of the City of South San Francisco at a regular meeting of the City
Council held the day of ,2004 by the following vote:
A YES:
NOES:
ABSTAIN:
ABSENT:
ATTEST:
City Clerk
As Mayor of the City of South San Francisco, I do hereby approve the foregoing Ordinance this
__ day of ,2004.
Mayor
Chapter 20.125 Inclusionary Housing
Requirements
Sections:
20.125.010
20.125.020
20.125.030
20.125.035
20.125.040
20.125.050
20.125.070
20.125.080
20.125.090
20.125.100
20.125.110
20.125.120
20.125.130
20.125.140
20.125.150
20.125.155
20.125.160
20.125.165
20.125.170
Purpose and Intent
Definitions
Inclusionary Housing
Requirement
New Master Plans Or Specific
Plans
Affordable Housing Standards
Calculating The Required
Number Of Inclusionary Units
Alternatives To New
Inclusionary Units
Combined Inclusionary
Housing Projects
Disposition Of Excess
Inclusionary Units
Offsets To The Cost Of
Affordable Housing
Development
In-Lieu Fees
Collection Of Fees
Preliminary Project Application
And Review Process
Affordable Housing Agreement
As A Condition Of
Development
Agreement Amendments
Period of Affordability
Pre-Existing Approvals
Enforcement
Savings Clause
20.125.010: Purpose and Intent
The purpose and intent of this chapter is as
follows:
(a) The City's objective, as established by the
housing element of the City's general plan, is to
ensure that all residential development, including
all master planned and specific planned
communities and all residential development
provide a range of housing opportunities for all
identifiable economic segments of the
population, including households of lower and
moderate income. It is the policy of the City to:
(1) Require that a minimum of twenty (20%)
percent of all approved residential development
consisting of four or more units be restricted to
and affordable to lower-income households;
subject to adjustment based on the granting of
certain incentives; and,
(2) Require that at least twenty percent
(20%) of all new dwelling units be restricted to
and affordable to Iow- or moderate-income
households. Not less than forty percent (40%) of
the affordable units, or eight percent (8%) of the
total units, are tO be restricted to and affordable
to low-income households; and,
(3) Require that all developments consisting
of ten units or more shall provide the affordable
units on-site, and,
(4) Under certain conditions, allow
alternatives to constructing new affordable units
onsite as a means of providing affordable units in
the City; and,
(5) For housing developments consisting of 4
to 9 units, allow Inclusionary requirements to be
satisfied through the payment of an in-lieu fee as
an alternative to requiring inclusionary units to
be constructed.
(b) It is the purpose of this chapter to implement
the City's obje~.tives and policies as stated in
subsection (a).
(c) Nothing in this chapter is intended to create a
mandatory duty on the part of the City or its
employees under the Government Tort Claims
Act and no cause of action against the City or its
employees is created by this chapter that would
not arise independently of the provisions of this
chapter. (Ord. 1303- 01, 2001)
20.125.020 Definitions.
Whenever the following terms are used in this
chapter, they shall have the meaning established
by this section:
(a) "Affordable housing" means housing for
which the allowable housing expenses paid by a
qualifying household shall not exceed thirty
(30%) percent of the gross monthly income for
Low-Income and Lower-Moderate, adjusted for
household size, as determined by the U.S.
Department of Housing and Urban Development
Income Limits.
(b) "Affordable housing agreement" means a
legally binding agreement between a developer
and the City to ensure that the inclusionary
requirements of this chapter are satisfied. The
agreement establishes, among other things, the
number of required inclusionary units, the unit
sizes, location, affordability tenure, terms and
conditions of affordability and unit production
schedule.
(c) "Allowable housing expense" means the
total monthly or annual recurring expenses
required of a household to obtain shelter.
(1) For a for-sale unit, allowable housing
expenses include loan principal and interest at
the time of initial purchase by the homebuyer,
allowances for property and mortgage insurance,
property taxes, homeowners association dues and
a reasonable allowance for utilities as defined by
the Federal Regulations for the Tenant Based
Rental Assistance Program.
(2) For a rental unit, allowable housing
expenses include rent and a utility allowance as
determined annually by the U.S. Department of
Housing and Urban Development, as well as all
monthly payments made by the tenant to the
lessor in connection with use and occupancy of a
housing unit and land and facilities associated
therewith, including any separately charged fees,
utility charges, or service charges assessed by the
lessor and payable by the tenant.
(d) "Combined inclusionary housing project"
means separate residential development sites
which are linked by a contractual relationship
such that some .or all of the inclusionary units
which are associated with one development site
are produced and operated at a separate
development site or sites.
(e) "Conversion" means the change of status
of a dwelling unit from a purchased unit to a
rental unit or vice versa.
(f) "Density bonus (new residential
construction) For the purposes of this chapter,
"density bonus" means a density increase of at
least twenty (20%) percent, unless a lesser
percentage is elected by the developer, over the
otherwise maximum allowable residential
density under the applicable zoning ordinance
and land use element of the general plan as of the
date of application by the developer to the City.
The density bonus shall apply to housing
developments consisting of four more dwelling
units that meet 'ihe requirements for a Density
Bonus as established in Chapter 20.130.
(g) "Financial assistance" means assistance
to include, but not be limited to, the
subsidization of fees, infrastructure, land costs,
or construction costs, the use of redevelopment
set-aside funds, community development block
grant (CDBG) funds, or the provision of other
direct financial aid in the form of cash transfer
payments or other monetary compensation, by
the City of South San Francisco.
(h) "Incentives" means a reduction in the
inclusionary housing requirement granted in
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return for the provision of certain desired types
of affordable housing or related amenities as
determined by the City Council.
(i) "Inclusionary housing project" means a
new residential development or conversion of
existing residential buildings which has at least
twenty (20%) percent of the total units reserved
and made affordable to lower-income households
as required by this chapter. Of the 20%, at least
8% shall be affordable to persons of low-income
and no more than 12% affordable to persons of
low-to-moderate income as those terms are
defined in this Chapter.
(j) "Inclusionary unit" means a dwelling unit
that will be offered for rent or sale exclusively to
and which shall be affordable to lower-income
households, as required by this chapter.
(k) "Income" means any monetary benefits
that qualify as income in accordance with the
criteria and procedures used by the City of South
San Francisco Economic and Community
Development department. In addition to the
income of a targeted group, limitations on assets
may also be used as a factor in determining
eligibility for rental or for sale units.
(1) "Low-income household" means those
households whose gross income is more than
fifty percent (50%) but does not exceed eighty
percent (80%) of the unadjusted area median
income for San Mateo County.
(m) "Low-to-Moderate-Income household"
means households whose gross income is
between eighty-one percent (81%) and one
hundred and twenty percent (120%) of the
unadjusted area median income for San Mateo
County.
(n) "Median Income" means the median
income earned by a household or family,
adjusted by size, as published by U.S.
Department of Housing and Urban Development.
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(O) "Marketq:ate unit" means a dwelling unit
where the rental rate or sales price is not
restricted either by this chapter or by
requirements imposed through other local, state,
or federal affordable housing programs.
(p) "Offsets" means concessions or
assistance to include, but not be limited to, direct
financial assistance, density increases, standards
modifications or any other financial, land use, or
regulatory concession which would result in an
identifiable cost reduction enabling the provision
of affordable housing.
(q) "Residential development" means any
new residential construction of rental or for-sale
units; or development revisions, including those
with and without a master plan or specific plan,
planned unit developments, site development
plans, mobilehome developments and
conversions of apartments to condominiums, as
well as dwelling units for which the cost of
shelter is included in a recun'ing payment for
expenses, whether or not an initial lump sum fee
is also required.
(r) "Target income level" means the
unadjusted income standards for extremely low,
very low and low-income levels within San
Mateo County adjusted for family size.
(s) "Total residential units" means the total
units approved by the final decision making
authority. Total residential units are composed of
both market rate units and inclusionm'y units.
(Ord 1303 - 01, 2001)
20.125.030 Inclusionary Housing
Requirement.
The inclusionary housing requirements of this
chapter shall apply as follows:
(a) This chapter shall apply to all residential
market-rate dwelling units resulting from new
construction of rental and "for-sale" projects
consisting of four or more residential units, as
well as the conversion of apartments to
condominiums.
(b) For any residential development or
development revision of four or more units, not
less than twenty (20%) percent of the total units
approved shall be constructed and restricted both
as to occupancy and affordability to low-, and
lower-moderate income households.
(c) This chapter shall not apply to the
following:
(1) Existing residences which are altered,
improved, restored, repaired, expanded or
extended, provided that the number of units is
not increased, except that this chapter shall
pertain to the subdivision of land for the
conversion of apartments to condominiums;
(2) Conversion of a mobilehome park
pursuant to Section 21.37.120 of the code;
(3) The construction of a new residential
structure which replaces a residential structure
that was destroyed or demolished within two
years prior to the approval of a building permit
for the new residential structure, provided that
the number of residential units is not increased
fi'om the number of residential units of the
previously destroyed or demolished residential
structure;
(4) Second dwelling units not constructed to
fulfill inclusionary housing requirements and
developed in accordance with Section 20.__.
of this code;
(5) Those residential units which have
obtained approval of a Vesting Tentative Map or
a Development Agreement prior to the effective
date of this ordinance, as set forth in Section
20.125.160 of this chapter. (Ord. 1303- 01, 2001)
20.125.035 New Residential Projects
Applications for Planned Unit Development
Permits, Tentative Maps, Vesting Tentative Map,
and other land use entitlements that seek
approval of a residential development project of
four or more residential units shall submit an
inclusionary housing plan as follows:
(a) All applications approved on or after the
effective date, or deemed complete on or after
the effective date, of the ordinance codified in
this chapter are required by this chapter to
provide an Affordable Housing Agreement with
the application for development. This
Affordable Housing Agreement will include
appropriate text, maps, tables, or figures to
establish the basic framework for implementing
the requirements of this chapter. It shall
establish, at a minimum, but shall not be limited
to, the following:
(1) The number of market rate units in the
master plan or specific plan;
(2) The number of required inclusionary
units for lower-ificome households in the project
including the specific levels of affordability;
(3) The designated sites for the location of
the inclusionary units, including but not limited
to any sites for locating offsite inclusionary
housing projects or combined inclusionary
housing projects;
(4) An Affordable Housing Agreement shall
be a condition of all future discretionary permits
for the development area such as tentative maps,
parcel maps, planned unit developments and site
development plans. All relevant terms and
conditions of the Affordable Housing Agreement
shall be filed and recorded as a restriction on the
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project as a whole and those individual lots, units
or projects which are designated as inclusionary
units. The affordable housing agreement shall be
consistent with Section 20.125.140 of this
chapterl
(b) The location and phasing of inclusionary
dwelling units may be modified by the body
granting final approval of the project as a
condition of approval for the project.
(c) All existing Planned Unit Development
Pen'nits, Conditional Use Pelznits, master plans
or specific plans proposed for major amendment,
pursuant to Section 20.87 of this code, shall
incorporate into the amended master plan or
specific plan document an inclusionary housing
plan, consistent with this section of this chapter.
(Ord 1303 -01, 2001)
20.125.040 Affordable Housing Standards.
The affordable housing standards are as follows:
(a) All residential developments are subject
to and must satisfy the inclusionary housing
requirements of this chapter, notwithstanding a
developer's request to process a residential
development under other program requirements,
laws or regulations, including but not limited to
Chapter 20.130 (Residential Density Bonus) of
this code.
(b) Unless otherwise provided in this
Chapter, inclusionary units shall be built on the
residential development project site.
(c) The required inclusionary units shall be
constructed concurrently with market-rate units
unless both the final decision-making authority
of the City and developer agree within the
affordable housing agreement to an alternative
schedule roi' development.
(d) Inclusionary rental units shall remain
restricted and affordable to the designated
income group for fifty-five (55) years.
Notwithstanding anything to the contrary_in this
chapter, no inclusionary unit shall be rented for
an amount which exceeds ninety (90%) percent
of the actual rent charged for a comparable
market unit in the same development, if any.
(e) The inclusionary for-sale units shall
remain affordable for a term of fifty-five (55)
years and said affordability term shall be filed
and recorded as a restriction on those individual
lots, units or projects which are designated as
inclusionary units. After the initial sale of the
inclusionary for-sale units at a price affordable to
the target income level group, inclusionary for-
sale units shall remain affordable to subsequent
income eligible buyers pursuant to a resale
restriction with a term of fifty-five (55) years.
For-sale units may be sold at market price under
the conditions in(f) through (h) of this section.
(f) Base Resale Price: The price at which
the Owner purchased the Affordable Unit shall
be adjusted by the percentage increase or
decrease in the median annual income at 100%
of median of a family of four in San Mateo
County. The percentage increase or decrease
shall be computed for the period that the
Affordable Unit is held by Owner. This adiusted
price shall be increased by the market value, if
any, of any documented, permanent capital real
estate or fixed improvements approved by City.
No price adjustment will be made except upon
presentation to the City of written documentation
of all expenditures made by Owner for which an
adjustment is requested. The adjusted price shall
be decreased by the amount necessary to repair
any damages and to put the unit into a sellable
condition, includin~ items such as paint,
cleaning, construction repairs, and to bring said
unit into conformity with all applicable
provisions of the South San Francisco Municipal
Code and the affordable housing guidelines
established by the City. The value of price
adjustments shall be reasonably determined by
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the City. The resulting price shall be the Base
Resale Price of the unit.
(g) Upon resale of the unit, if the Affordable
Unit is sold above the restricted affordable price
during the fifty-five (55) year affordability term,
the City will receive the difference between the
Base Resale Price and the actual market sales
price of the unit.
(h) Funds recaptured by the City shall be
used in assisting other eligible households with
home purchases at affordable prices. To the
extent possible, projects using for-sale units to
satisfy inclusionary requirements shall be
designed to be compatible with conventional
mortgage financing programs including
secondary market requirements.
(i) Ideally, off-site inclusionary units should
be located on sites that are in proximity to or will
provide access to employment opportunities,
urban services, or major roads or other
transportation and commuter rail facilities and
that are compatible with adjacent land uses.
O) The design of the inclusionary units shall
be consistent with general plan standards;
compatible with the design of the total project
development in terms of appearance, materials
and finished quality and conform to general plan
standards; and, consistent with affordable
housing development standards prepared by the
Department of Economic and Community
Development as adopted by the City Council.
(k) Inclusionary projects shall provide a mix
of number of bedrooms in the affordable
dwelling units in response to affordable housing
demand priorities of the City. Inclusionary
projects shall provide a distribution of affordable
units within the designated affordabilit¥ range as
follows: One third (33.3%) of lower income
units shall be affordable to households between
50 and 60 percent of median income; one third
(33.3%) of lower income units shall be
affordable to households between 60 and 70
percent of median income; one third (33.3%) of
lower income units shall be affordable to
households between 70 and 80 percent of median
income; and one third (33.3%) of lower-to-
moderate income units shall be affordable to
households between 80 and 90 percent of median
income; and one third (33.3%) of lower-to-
moderate income units shall be affordable to
households between 90 and 100 percent of
median income; one third (33.3%) of lower-to-
moderate income units shall be affordable to
households between 100 and 110 percent of
median income.
(1) No building permit shall be issued, nor
any development approval granted for a
development which does not meet the
requirements of this chapter. No inclusionary
unit shall be rented or sold except in accordance
with this chapter. (Ord 1303 01 2001)
20.125.050
Calculating The Required
Number Of Inclusionary Units.
Subject to adjustments for incentives, the
required number of lower-income inclusionary
units shall be twenty (20%) percent of the total
residential units,..approved by the final decision-
making authority.
If the inclusionary units are to be provided
within an offsite combined or other project, the
required number of affordable inclusionary units
shall be twenty (20%) percent of the total
residential units to be provided both onsite
and/or offsite. Subject to the maximum density
permitted in the General Plan or granted by
specific authorization of the Planning
Commission or City Council. Fractional
inclusionary units of .5 will be subject to
payment of the in-lieu fee for the proportionate
amount of the fractional unit.
The in-lieu fee to be paid for each inclusionary
dwelling unit shall be equal to the developer's
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fractional costs of constructing a market rate unit
in the proposed project, including land and
improvements.
20.125.070 Alternatives To Constructing New
Inclusionary Units.
Notwithstanding any contrary provisions of this
chapter, at the sole discretion of the City
Council, the City may determine that an
alternative to the construction of new
inclusionary units is acceptable.
(a) The City Council may approve
alternatives to the construction of new
inclusionary units where the proposed alternative
supports specific housing element policies and
goals and assists the City in meeting its state
housing requirements.
(1) Such determination shall be based on
findings that new construction would be
infeasible or present unreasonable hardship in
light of such factors as project size, site
constraints, market competition, price and
product type disparity, developer capability, and
financial subsidies available. Evidence must be
submitted to the City Manager or his or her
designee and included in the request for any
waiver of the construction of new inclusionary
units.
(2) Alternatives may include, but are not
limited to, acquisition and rehabilitation of
affordable units, conversion of existing market
units to affordable units, construction of special
needs housing projects or programs (shelters,
transitional housing, etc.), and the construction
of second dwelling units.
(b) Second dwelling units constructed to
satisfy an inclusionary housing requirement shall
be rent restricted to affordable rental rates, and
renters shall be income-qualified, as specified in
the applicable affordable housing agreement. In
no event shall a developer be allowed to
construct more than a total of fifteen (15) second
dwelling units in any given development to
satisfy an inclusionary requirement.
(c) Contribution to a special needs housing
project or program may also be an acceptable
alternative based upon such findings. The
requisite contribution shall be calculated in the
same manner as an in-lieu fee per Section
20.125.110. (Ord 1303 - 01, 2001)
20.125.080 Combined Inclusionary Housing
Projects.
An affordable housing requirement may be
satisfied with offsite construction as follows:
(a) When it can be demonstrated by a
developer that the goals of this chapter and the
City's housing element would be better served by
allowing some or all of the inclusionary units
associated with one residential project site to be
produced and operated at an alternative site or
sites, the resulting linked inclusionary project
site(s) is a combined inclusionary housing
project.
(b) It is at the sole discretion of the City
Council to authorize the residential site(s) which
form a combined inclusionary housing project.
(1) Such decision shall be based on findings
that the combined project represents a more
effective and feasible means of implementing
this chapter and the goals of the City's housing
element.
(2) Factors ..to be weighed in this
determination include:
(A) the feasibility of the onsite option
considering project size, site constraints;
(B) competition from other projects;
(C) difficulty in integrating due to
significant price and product type disparity; and,
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(D) lack of capacity of the onsite
development entity to deliver affordable housing.
Also to be considered are whether the offsite
option offers greater feasibility and cost
effectiveness, location advantages such as
proximity to jobs, schools, transportation, and
services, diminished impact on other existing
developments, capacity of the development
entity to deliver the project, and satisfaction of
multiple developer obligations that would be
difficult to satisfy with multiple projects.
(c) All agreements between parties to form a
combined inclusionary housing project shall be
made a part of the affordable housing agreement
required for the site(s), which affordable housing
agreement(s) shall be approved by Council. (Ord
1303 - 01, 2001)
20.125.090 Disposition of Excess Inclusionary
Units.
Inclusionary units created which exceed the final
requirement for a project may, subject to City
Council approval in the affordable housing
agreement, be utilized by the developer to satisfy
other inclusionary requirements for which it is
obligated or market the units to other developers
as a combined project subject to the requirements
of Section 20.125.080. (Ord 1303 - 01, 2001)
20.125.100 Offsets To The Cost Of Affordable
Housing Development.
The City shall consider making offsets available
to developers when necessary to enable
residential projects to provide a preferable
product type or affordability in excess of the
requirements of this chapter.
(a) Offsets will be offered by the City to the
extent that resources and programs for this
purpose are available to the City and approved
for such use by the City Council, and to the
extent that the residential development, with the
use of offsets, assists in achieving the City's
housing goals. To the degree that the City makes
available programs to provide offsets, developers
may make application for such programs.
(b) Evaluation of requests for offsets shall be
based on the effectiveness of the offsets in
achieving a preferable product type and/or
affordability objectives as set forth within the
housing element; the capability of the
development team; the reasonableness of
development costs and justification of subsidy
needs; and the extent to which other resources
are used to leverage the requested offsets.
(c) Nothing in this chapter establishes, directly
or through implication, a right to receive any
offsets from the City or any other party or
agency to enable the developer to meet the
obligations established by this chapter.
(d) Projects are entitled to density bonuses
and/or other incentives in accordance with
provisions of state law, pursuant to the
provisions of Chapter 20.130.105 of this code.
(e) Any offsets approved by the City Council
and the housing"affordability to be achieved by
use of those offsets shall be set out within the
affordable housing agreement pursuant to
Section 20.130.140 or, at the City's discretion in
a subsequent document.
(f) Developers are encouraged to utilize local,
state or federal assistance, when available, to
meet the affordability standards set forth in
Sections 20.125.030 and 20.125.040. (Ord 1303
- 01, 2001)
20.125.110 In-lieu Fees.
Payment of a fee in-lieu of construction of
affordable units may be appropriate in the
following circumstances:
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(a) For any residential development or
development revision consisting of four to nine
units, the inclusionary requirements may be
satisfied through the payment to the City of an
in-lieu fee.
(b) The in-lieu fee to be paid for each
inclusionary dwelling unit shall be equal to the
developers costs of constructing a market rate
unit in the proposed project, including land and
improvements.
(c) In lieu-fees shall be paid at the time a
building permit is issued for the development.
(d) At the discretion of the City Council,
where a developer is authorized to pay a fee in-
lieu of development, an irrevocable dedication of
land or other non-monetary contribution of a
value not less than the sum of the otherwise
required in-lieu fee may be accepted as an
alternative to paying the in-lieu fee if it is
determined that the non-monetary contribution
will be effectual in furthering the goals and
policies of the housing element and this chapter.
The valuation of any land offered in-lieu shall be
determined by an appraisal made by an agent
mutually agreed upon by the City and the
developer. Costs associated with the appraisal
shall be borne by the developer.
(e) Where a developer is authorized to pay a
fee in-lieu of development of affordable housing
units, any approvals shall be conditioned upon a
requirement to pay the in-lieu fee in an amount
established by the Chapter in effect at the time of
payment.
(f) An alternative to paying an in-lieu fee(s),
inclusionary housing requirements may be
satisfied either through a combined inclusionary
housing project, pursuant to Section 20.125.080
of this chapter or new construction of
inclusionary units subject to approval of the final
decision-making authority. (Ord 1303 - 01,
2001)
20.125.120 Collection Of Fees.
All in-lieu fees collected hereunder shall be
deposited in a housing trust fund. Said fund shall
be administered by the City and shall be used
only for the purpose of providing funding
assistance for the provision of affordable housing
and reasonable costs of administration consistent
with the policies and programs contained in the
housing element of the general plan. (Ord 1303 -
01, 2001)
20.125.130 Preliminary Project Application
And Review Process.
The preliminal~, project application/review
process shall be as follows:
(a) A developer of a residential development,
proposing an inclusionary housing project shall
have an approved site development plan prior to
execution of an affordable housing agreement for
the project. The developer may submit a
preliminary application to the housing and
redevelopment director prior to the submittal of
any formal applications for such housing
development. The preliminary application shall
include the following information if applicable:
(1) A brief description of the proposal
including the number of inclusionary units
proposed;
(2) The zoning, general plan designations
and assessors parcel number(s) of the project
site;
(3) A site plan, drawn to scale, which
includes: building footprints, driveway and
parking layout, building elevations, existing
contours and proposed grading; and,
(4) A letter identifying what specific offsets
and/or adjustments are being requested of the
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City. Justification for each request should also be
included.
(b) Within thirty days of receipt of the
preliminary application by the planning director
for projects not requesting offsets or incentive
adjustments, or ninety days for projects
requesting offsets or incentive adjustments the
department shall provide to an applicant, a letter
which identifies project issues of concern, the
offsets and incentive adjustments that the City
Manager or his or her designee can support when
making a recommendation to the final decision-
making authority, and the procedures for
compliance with this chapter. The applicant shall
also be provided with a copy of this chapter and
related policies, the pertinent sections of the
California codes to which reference is made in
this chapter and all required application forms.
(Ord 1303 - 01,2001)
20.125.140 Affordable Housing Agreement As
A Condition Of Development.
This chapter requires the following:
(a) Developers subject to this chapter shall
demonstrate compliance with this chapter by
executing an affordable housing agreement
prepared by the Department of Economic and
Community Development Department and
submitted to the developer for execution.
Agreements which conform to the requirements
of this section and which do not involve requests
for offsets and/or incentives, other than those
permitted by right, if any, shall be reviewed by
the City Manager or his or her designee and
approved by the City Manager or his or her
designee.
(b) Agreements which involve requests for
offsets and/or incentives, other than those
permitted by right, shall require the
recommendation of the Department of Economic
and Community Development and action by the
City Council as the final decision-maker.
(c) Following the approval and execution by
all parties, the affordable housing agreement
with approved site development plan shall be
recorded against the entire development,
including market-rate lots/units and the relevant
terms and conditions therefrom filed and
subsequently recorded as a separate deed
restriction or regulatory agreement on the
affordable project individual lots or units of
property which are designated for the location of
affordable units.
(d) The approval and execution of the
affordable housing agreement shall take place
prior to final map approval and shall be recorded
upon final map recordation or, where a map is
not being processed, prior to the issuance of
building permits for such lots/units.
(e) The affordable housing agreement may
require that more specific project and/or unit
restrictions be recorded at a future time.
(f) The affordable housing agreement shall
provide that the proiect applicant pay an
administrative fee to reimburse the City for all
administrative/processing costs and fees incurred
in processing the affordable housing plan and
implementing the requirements of this Chapter
on a project specific basis. The City may waive
the administrative fee as an incentive or off-set
for the provision of affordable units.
(g) The affordable housing agreement shall
bind all future owners and successors in interest
for the term of years specified therein.
(h) An affordable housing agreement, for
which the inclusionary housing requirement will
be satisfied through new construction of
inclusionary units, either onsite or offsite, shall
establish, but not be limited to, the following:
(1) The number of inclusionary dwelling
units proposed, with specific calculations
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detailing the application of any incentive
adjustment credit;
(2) The unit square footage, and number of
bedrooms;
(3) The proposed location of the inclusionary
units;
(4) Amenities and services provided, such as
daycare, after school programs, transportation,
job training/employment services and recreation;
(5) Level and tenure of affordability for
inclusionary units;
(6) Schedule for production of dwelling
units;
(7) Approved offsets provided by the City;
(8) Where applicable, requirements for other
documents to be approved by the City, such as
marketing, leasing and management plans;
financial assistance/loan documents; resale
agreements; and monitoring and compliance
plans;
(9) Where applicable, identification of the
affordable housing developer and agreements
specifying their role and relationship to the
project.
(10) An affordable housing agreement,
for which the inclusionary housing requirement
will be satisfied through payment to the City of
any in-lieu contributions other than fee monies,
such as land dedication, shall include the method
of determination, schedule and value of total in-
lieu contributions.
(11) An affordable housing agreement
will not be required for projects which will be
satisfying their inclusionary housing requirement
through payment to the City of an in-lieu fee
unless the applicant requests payment options
not provided by this Chapter. (Ord 1303 - 01,
2001)
20.125.150 Agreement Amendments.
Any amendment to an affordable housing
agreement shall be processed in the same manner
as an original application for approval, except as
authorized in Section 20.125.035 (c).
20.125.155 Period of Affordability
The City or its designee shall have a first fight of
refusal to purchase affordable units offered for
sale during the tenure of affordability. The first
right of refusal .to purchase the affordable unit
shall be submitted in writing to the Director of
the Department of Economic and Community
Development. Within ninety days of its receipt,
the City shall indicate its intent to exercise the
first right of refusal for the purpose of providing
affordable housing. (Ord 1303- 01, 2001)
20.125.160 Pre-existing Approvals.
The following projects shall not be subject to
requirements of the ordinance codified in this
chapter.
(a) Any residential developments for which
an application for a vesting tentative map has
been deemed complete prior to the effective date
of this ordinance, unless otherwise authorized by
law.
(b) Any project subject to an executed
development agreement when the effective date
of the agreement is prior to the effective date of
this ordinance or the development agreement
contains the affordability requirements of this
Chapter. (Ord 1303 -01, 2001)
20.125.165 Enforcement.
Enforcement provisions are as follows:
Page 15 of 16
S:\Current Ord's\i nclusionary.ordinance.6-9-04.DOC
(a) The provisions of this chapter shall apply
to all developers and their agents, successors and
assigns proposing a residential development
governed by this chapter. No building permit or
occupancy permit shall be issued, nor any
entitlement granted, for a project which is not
exempt and does not meet the requirements of
this chapter. All inclusionary units shall be
rented or owned in accordance with this chapter.
(b) The developer and its agents, successors
and assigns shall annually certify tenants as to
the income eligibility for occupancy of Below
Market Rate Rental Units and the annual
certification shall be submitted to the
Department of Economic and Community
Development. If Developer and its agents,
successors and assigns fail to perform an annual
certification, developer shall be fined ONE
THOUSAND DOLLARS ($ 1000.00) for each
Below Market Unit whose tenants were not
subject to an annual certification. The City shall
continue to fine developer an additional ONE
THOUSAND DOLLARS ($1,000.00) for every
thirty (30) day period for each Below Market
Unit whose tenants have not been subject to an
annual certification. City shall take steps to
assess these fines as a lien against either the
property where the Below Market Units are
located or against the Project Property
(c) If developer at any time fails to make
available or to provide Below Market Rate
Rental Unit at the required affordable rent levels,
developer is subject to a fine of TWO
THOUSAND FIVE HUNDRED DOLLARS
($2,500.00) for each Below Market Unit not
provided pursuant to the affordable housing
agreement. The City shall continue to fine
Developer an additional TWO THOUSAND
FIVE HUNDRED DOLLARS ($2,500..00) for
every thirty (30) day period after the initial fine
for each Below Market Unit not provided
pursuant to the affordable housing agreement.
City shall take steps to assess these fines as a lien
Page 16 of 16
S:\Current Ord's\i nclusionary.ordinance.6-9-04.DOC
against either the property where the Below
Market Units are located or against the Project
Property.
(d) The City may institute any appropriate
legal actions or proceedings necessary to ensure
compliance with this chapter, including but not
limited to actions to revoke, deny or suspend any
permit or development approval. In the event the
City must institute legal action to enforce the
provisions of this ordinance, the City shall be
entitled to recover its administrative costs,
including reasonable attorneys' fees, in addition
to any other remedy provided by the court.
(e) Any individual who sells or rents a
restricted unit in violation of the provisions of
this chapter shall be required to forfeit all
monetary amounts so obtained. Such amounts
shall be added to the City's housing trust fund.
(Ord 1303 - 01 2001)
20.125.170 Savings Clause.
All code provisions, ordinances, and parts of
ordinances in conflict with the provisions of this
chapter are repealed. The provisions of this
chapter, insofar as they are substantially the
same as existing code provisions relating to the
same subject matter shall be construed as
restatements and continuations thereof and not as
new enactments. With respect, however, to
violations, rights accrued, liabilities accrued, or
appeals taken, prior to the effective date of this
ordinance, under any chapter, ordinance, or part
of an ordinance shall be deemed to remain in full
force for the purpose of sustaining any proper
suit, action, or other proceedings, with respect to
any such violation, right, liability or appeal. (Ord
1303 - 01, 2001)
StaffReport
DATE:
TO:
FROM:
SUBJECT:
June 23, 2004
The Honorable Mayor and City Council
Marty Van Duyn, Assistant City Manager
MITCHELL AVENUE REHABILITATION - ENGINEERING FILE NO. 51-13231-0404,
PROJECT NO. ST-03-4
RECOMMENDATION:
It is recommended that the City Council adopt a resolution appropriating $180,000 towards the FY
2004-2005 Capital Improvement Budget for the Mitchell Avenue Rehabilitation Project.
BACKGROUND:
Mitchell Avenue (from South Airport Boulevard- Harbor Way) is a major arterial roadway servicing various
commercial and industrial businesses in the east side of the City. Businesses and motorists complain that the
road is no longer serviceable; causes damage to vehicles, and increased travel time due to motorists avoiding
the road.
Staffhad initially deferred construction maintenance of the road to FY 2006-2007 for the sewer upgrade as
part of the Wet Weather Program. However, this project can now proceed because the Wet Weather Final
Project Study indicated that the existing sewer line along Mitchell Avenue is in good condition and can handle
the existing & future capacity. Upon visual survey by staff, the existing road is heavily raveled, has
longitudinal and alligator cracks, potholes are on the entire roadway surface, and presence of pavement
rutting/depressions indicating pavement base failure.
The Engineering Division evaluated the pavement condition and determined that full depth pavement
rehabilitation is needed to make the road serviceable for existing and future use. Staff also determined that the
scope of work and services for Mitchell Avenue Rehabilitation is consistent with the scope of work and
services of the Greendale Drive Rehabilitation Project currently being performed by G. Bortolotto & Co., Inc.
By adding the Mitchell Avenue Rehabilitation Project to the G. Bortolotto & Co., Inc. contract, the City will
get the favorable unit prices tendered by G. Bortolotto & Co., Inc. and the economies of scale for both
projects.
StaffReport
Subject: Mitchell Avenue Rehabilitation
Project No. ST-03-4
Page 2
The project will repair the structural pavement fail,e, install cement treated pavement base using the existing
asphalt grindings (commonly called recycled asphalt pavement). The project's major items of work involve
setting up traffic controls, the removal and replacement of severely damaged sections of asphalt concrete
pavement, pavement grinding, the mixing of and installation of recycled asphalt pavement, installation and
mixing of Portland cement concrete for the new cement treated pavement base, asphalt concrete overlay and
related pavement striping.
The following is a cost breakdown for the project:
Construction
Construction Contingency (15%)
Administration/Inspection (5%)
Total
$ 150,000.00
$ 22,500.00
$ 7,500.00
$ 180,000.00
FUNDING:
Reserves are available in the Gas Tax and Measure A Sales Tax accounts to fund this appropriation as part of
the 2004-2005 Capital Budget. This budget amendment is being recommended now, rather than when the full
Capital Budget comes to Council in July, to expedite the contract award to take advantage of the favorable bid
from the contractor.
~ich~'el A. tWilson
City Manager
Attachments:
Location Map
Endneer's Estimate
Resolution
RESOLUTION NO.
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION APPROPRIATING $180,000 TOWARD THE
FISCAL YEAR 2004-2005 CAPITAL IMPROVEMENT PROGRAM
BUDGET FOR THE MITCHELL AVENUE REHABILITATION
PROJECT
WHEREAS, staff recommends appropriating $180,000 towards the Fiscal Year 2004-
2005 Capital Improvement Program budget for the Mitchell Avenue Rehabilitation Proj eot; and
WHEREAS, the project will repair the structural pavement failure and install cement
treated pavement base using the existing asphalt grindings; and
WHEREAS, sufficient funds are available in the Gateway Assessment Fund to fund this
budget amendment; and
WHEREAS, reserves are available in the Gas Tax and Measure A Sales Tax accounts to
fund this appropriation as part of the 2004-05 Capital budget; and
WHEREAS, this budget amendment is being recommended now rather than when the full
Capital budget goes to Council in July; this is to expedite the contract award to take advantage of
the favorable bid from the contractor.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San
Francisco that the City Council hereby appropriates $180,000 towards the Fiscal Year 2004-2005
Capital Improvement Program budget for the Mitchell Avenue Rehabilitation Project.
* * * * *
I hereby certify that the foregoing Resolution was regularly introduced and adopted by the
City Council of the City of South San Francisco at a meeting held on the
__ day of ,2004 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
S:\Current Reso's\6~23-04mitchell.ave.proj ect.res.doc
ATTEST:
City Clerk
o ~
ENGINEERING DIVISION
ENGINEER'S ESTIMATE
MITCHELL AVENUE REHABILITATION PROJECT
JUNE 7, 2004
Engineer's Estimate Based on Unit
Estimated Prices by G. Bortolotto & Co., Inc.
Bid Item Item Description Unit
Quantity
Bid Unit Price Bid Total
1 Traffic Control & Mobilization LS 1 $ 6,000.00 $ 6,000.00
2 Asphalt Concrete Overlay TN 1,500 $ 55.55 $ 83,325.00
3 Milling/Pulverize Existing AC Pavement & Cement SY 6,550 $ 4.47 $ 29,278.55
Treated Native
4 PCC for Cement Treated Native TN 75 $ 123.00 $ 9,225.00
5 Curin~l Seal TN 6 $ 300.00 $ 1,800.00
6 Adjust Storm Manholeto Grade EA 3 $ 100.00 $ 300.00
7 Adjust Monument Boxto Grade EA 1 $ 100.00 $ 100.00
8 =CC ADA Ramps EA 4 $ 1~491.00 $ 5,964.00
9 Excess Recycled Materials TN 1,200 $ 7.00 $ 8~400.00
10 Detail 4 Stripin~l LF 1,255 $ 0.87 $ 1,091.85
11 12" Limit Line LF 120 $ 2.73 $ 327.60
12 Detail 38C LF 100 $ 1.50 $ 150.00
13 Detail 38 LF 400 $ 1.50 $ 600.00
14 R/R Stop Bar LF 100 $ 3.50 $ 350.00
15 RXR Markin~l EA 2 $ 200.00 $ 400.00
16 "30" Markin~l EA 2 $ 100.00 $ 200.00
17 Crosswalk White LF 200 $ 2.75 $ 550.00
18 Type VIIR Arrow EA 2 $ 100.00 $ 200.00
19 Type IVL Arrow EA 2 $ 100.00 $ 200.00
20 Adjust Sanitary Manhole to Grade EA 4 $ 330.00 $ 1,320.00
21 "STOP" Le~lend EA 2 $ 109.00 $ 218.00
Estimated Construction Cost(Bid Items 1 -21) $ 150,000.00
Add 15% Contingencies $ 22,500,00
Add 5% Construction Administration $ 7,S00.00
Estimated Total Cost $ 180,000.00
G. BORTOLOTTO & CO., INC. - LISTED SUB-CONTRACTORS
CONCRETE - GOLDEN BAY, SAN CARLOS, CA
CEMENT TREATMENT - GRIFFIN SOIL, SUNOL, CA
STRIPING - STRIPING GRAPHICS, PETALUMA. CA
{ Staff Report
DATE:
TO:
FROM:
SUBJECT:
June 23, 2004
Honorable Mayor and City Council
Fire Chief
Resolution to Accept a Donation in the Amount of $14, O00 from Henry
Christopherson to apply toward the purchase of an AutoPulse Resuscitation
System.
RECOMMENDATION
It is recommended that the City Council approve a resolution accepting a donation in the
amount of $14,000 to apply toward the purchase of an AutoPulse Resuscitation System.
BACKGROUND/DISCUSSION
Henry Christopherson has donated $14,000 to the Fire Department. The money will be used to
purchase an AutoPulse Resuscitation System
FUNDING:
Funding from Mr. Christopherson will be combined with other donation funds as necessary and the
appropriate items will be purchased. This funding does not create any ongoing financial obligation
for the City of South San Francisco
By:
Phlhp D ~aitD~e' -
Fire Chief
Approved:
Michael A. Wilson
City Manager
June 17, 2004
San
.g6mu : 65fL55521 0
65 : 555-2211
Phil White, Fire Chief
Susan Kennedy, Emerg. Services Coordinator
South San Francisco Fire Department
33 Arroyo Drive, Suite F
South San Francisco, CA 94080
Dear Phil and Susan,
Your candid, disclosure of all available information relative to the
AutoPulse Resusitation System developed by Revivant Corp. of Sunnyvale is
appreciated.
Being a resident at the above address for the past 53 years, I have
appreciated that we have always had good Police and Fire Departm~qts. Your
Fire Department has a reputation thru out the County and elswhere for ~-~-~
having the the best trained paramedics in the area.
Fortunately, I have never had to personally call on the services of
these fine young (and older) members of your department. However, based On
my own personal experiences, I am well aware of the importance of having
well equipped personell equipped with the latest technologies to effective-
ly render life saving emergency service in a-tin~ly manner.
I realize that financial restraints mandated upon our City during the
current Statewide money crisis preclude funding for new state of the art
equipment that may enhance your ability to provide additional emergency
life saving procedures when required.
Therefore, to augment the present life saving equipment available to,
your Fire Department, attached is a check for $14,000 as a donation to your
department for application to the purchase of an AutoPulse R~susitation
System.
Sing~ely,
~enry Chr~stophersbn
RESOLUTION NO.
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION ACCEPTING A DONATION IN THE AMOUNT
OF $14,000 FROM HENRY CHRISTOPHERSON TO APPLY
TOWARDS THE PURCHASE OF AN AUTOPULSE
RESUSCITATION SYSTEM
WHEREAS, staff desires to accept a donation in the mount of $14,000 from Henry
Christopherson to apply towards the purchase of an AutoPulse Resuscitation System.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San
Francisco that the City Council hereby accepts a donation in the amount of $14,000 from Henry
Christopherson to apply towards the purchase of an AutoPulse Resuscitation System.
* * * * *
I hereby certify that the foregoing Resolution was regularly introduced and adopted by the
City Council of the City of South San Francisco at a meeting held on the
__ day of ,2004 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
S:\Current Reso's\6-23-04Longford. Ave. Lease.res.doc
ATTEST:
City Clerk
~ ~'~ ,~,~ -~x . .4 GENDA ITEM #6
DATE:
TO:
FROM:
RE:
June 23, 2004
Honorable Mayor and City Council
Conference Center Executive Director
Fiscal Year 2004-05 Interim Funding for the
South San Francisco Conference Center
RECOMMENDATION
It is recommended by the Conference Center Authority that the City Council approve
interim funding for Fiscal Year (FY) 2004-05 for the South San Francisco Conference
Center.
BACKGROUND
To enable the continued operation of.the Conference Center while the FY 2004-05 budget
is finalized, it is recommended that the City Council approve interim funding for FY 2004-05
for ninety (90) days through September 28, 2004. The interim funding appropriation is one
third (1/3) of the approved FY 2003-04 budget. The Conference Center Authority will
cOnsider the budget in July. After that time, the budget will be presented to the City
Council.
S'~ndra M. O'Toole
Executive Director
Attachment: ResolUtion
DRAFT 6/23/04
RESOLUTION NO,
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION APPROVING INTERIM FUNDING FOR
FISCAL YF_AR 2004-05 FOR THE
SOUTH SAN FRANCISCO CONFERENCE CENTER
WHEREAS, estimates of revenues from all sources and estimates of expenditures
required for the proper conduct of activities of the South San Francisco Conference Center
for Fiscal Year 2004-05 are being prepared; and
WHEREAS, fiscal conditions may require additional time for development of budget
priorities; and
WHEREAS, it is the intention of the City Council to grant interim spending authority
to allow for the continued orderly operation of the South San Francisco Conference Center
for a period of ninety (90) days from July 1, 2004; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South
San Francisco that it finds:
Interim spending authority'is hereby granted for a period of ninety (90) days
from July 1,2004, through September 28, 2004, to allow for the continuation
of operations and projects of the Conference Center.
All amounts necessary for the continued operation of the Conference Center
for the ninety (90) day period set forth in Paragraph 1 are hereby
appropriated for expenditure. Such appropriation shall be based upon the
Fiscal Year 2003-04 Operating Budget in a ratio of 365 to 90.
All annual contracts, leases and obligations previously entered into and
agreed to by the Conference Center Authority may be renewed. The funds
necessary to finance such renewals are hereby appropriated.
The distribution of the appropriations, transfers and reserves to the various
accounts of the Conference Center in accordance with generally accepted
accounting practices and consistent with the approved budget is hereby
authorized.
The rollover of any outstanding encumbrances from Fiscal Year 2003-04 into
Fiscal Year 2004-05 is hereby authorized.
The rollover of any unencumbered appropriations from Fiscal Year 2003-04
into uncompleted capital improvement projects is hereby authorized.
The staffing level for the Conference Center contained within the 2003-04
operating budget is hereby authorized for a period of ninety (90) days.
Consistent with the limitations set forth herein, any and all expenditures for,
and agreements relating to, the programs and materials described in the
budget may be expended or entered into under authority of the Conference
Center Authority, are hereby approved and authorized, and payments
herefore may be made.
I hereby certify that the foregoing Resolution was regularly introduced and adopted
by the City Council of the City of South San Francisco at a meeting
held on the day of .., 2004 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST:
City Clerk
Date:
To:
From:
Subject:
Staff Report
AGENDA ITEM #8
June 23, 2004
Honorable Mayor and City Council
Jim Steele, Finance Director
APPROVAL OF THE USE OF TAX INCREMENT GENERATED BY THE
DOWNTOWN/CENTRAL REDEDVELOPMENT PROJECT TO PAY FOR
COST OF ACQUIRING THE SOUTH SAN FRANCISCO CONFERENCE
CENTER SITE
RECOMMENDATION:
It is recommended that the City Council approve the attached Resolution that approves of
the use of tax increment from the Downtown Redevelopment Project Area to pay for debt
service on the Conference Center site acquisition.
BACKGROUND/DISCUSSION:
The City originally took possession of the land and facilities at 255 South Airport Boulevard for
use as a site for the Conference Center, under terms of a long-term lease with Erwin W. Mayer
and Josephine Anne Mayer dated December 1, 1989. In 1999, the City issued $6,145,000 in
Certificates of Participation for the purpose of funding the acquisition of the Conference Center
Site from the Mayers. Since that time, the City's financial situation has deteriorated such that it
can no longer reasonably make the debt service payments on these bonds without causing service
level reductions to the community.
Therefore, staff is recommending that the Council approve the attached resolution, which would
authorize the use of Downtown Redevelopment tax increment dollars to pay for the .1999 debt
service payments. Approval of the attached Resolution would finalize the legislative steps the
Council needs to take under Redevelopment Law to complete the budget transactions discussed
and approved by the City Council in both the Midyear 2003-04 Budget Amendment Resolution
and the 2004-05 Budget Adoption Resolution. The Council may recall that in those budget
documents, Council approved the shifting of debt service payments to the Redevelopment
Agency for the Conference Center site acquisition.
Changed Financial Situation
Since the time the 1999 bonds were issued, the City's General Fund budget has been adversely
impacted by a number of factors. They include:
Staff Report
Use of Downtown Tax Increment for Conference Center Bonds
Page 2 of 3
· Rising health and retirement costs.
· The loss of a major sales tax generator.
· A continued economic downturn exacerbated by the September 11, 2001 events, which
negatively impacted the local hotel industry.
· State budget actions that have taken away previously secure City revenue sources.
It is no longer feasible for the City's General Fund to make debt service payments on the 1999
bonds without additional and critical service level reductions on the community. The City has
cut $6.9 million from its budget over the past three years, and taken other actions that combined
have totaled $10.9 million to address the budget shortfall caused by the factors mentioned above.
The budget cuts have resulted in employee layoffs, and have included services in most aspects of
the City's budget, affecting services in such critical areas as:
· Police services: the 2004-05 budget freezes three vacant police officer positions.
· Fire services: the 2004-05 budget reduces overtime in the Fire budget, and will result in a
reduction in minimum staffing from 20 to 19 per shift on various days per year.
· Library services; hours have been reduced, library materials have been cut, and new fees are
being charged.
Parks, recreation, and facilities: parks and facilities are not being maintained to a level that is
prudent for the long term care of those facilities. Recreation programs have been
consolidated and/or scaled back.
No other reasonable means of financing the Conference Center site debt service payments exist.
If the General Fund were to continue making these debt service payments, significant additional
service losses to the community would result.
Benefit of the Conference Center to the Downtown Redevelopment Project Area
The Conference Center site is just outside the boundaries of the Downtown Redevelopment
Project Area. However, the Conference Center benefits the Downtown Redevelopment Project
Area because it assists in eliminating blight inside the Project Area. In addition:
The Project Area is the largest Redevelopment Project Area, and contains the most medium
and large sized businesses, which are the primary targets for the use of the Conference
Center.
· Businesses in the Project Area have a need for meeting space.
· Having sufficient meeting space has been a factor in new businesses locating in the Project
Area, which has contributed to the redevelopment and elimination of blight in that area. New
Staff Report
Use of Downtown Tax Increment for Conference Center Bonds
Page 3 of 3
businesses locating in the Project Area since the Conference Center was built include
portions of the Britannia/Pointe Grande Business Park and office buildings on Oyster Point
Blvd. In addition, since the time the Conference Center was developed, South San
Francisco's second largest employer, Genentech, has also expanded its business.
· New hotels attracted to the Project Area since the Conference Center was built include the
Airport Inn and the Ramada Limited.
Consistency With Redevelopment Implementation Plan
Funding the Conference Center is consistent with the most recent Implementation Plan, adopted
in 1999 and updated in 2002. Specifically, the Implementation Plan calls for:
· Acquiring and improving "public buildings and structures, including a ...cultural facility";
· Activities and programs that attract new businesses;
· Encouraging development of visitor-oriented uses, and "stressing special events that draw
new attendees."
FISCAL IMPACT:
Approval of the attached resolution will result in savings of $400,000 annually to the City's
General Fund, preventing further budget cuts. Sufficient tax increment exists in the Downtown
Redevelopment Fund to make the ongoing debt service payments.
Prepared by: ~
~im Steele
Finance Director
Michael A. W41son
City Manager
Attachments:
Resolution
RESOLUTION NO.
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION APPROVING THE USE OF TAX INCREM]ENT
GENERATED BY THE DOWNTOWN/CENTRAL REDEVELOPMENT
PROJECT TO PAY FOR COST OF ACQUIRING THE SOUTH SAN
FRANCISCO CONFERENCE CENTER SITE
WHEREAS, the Redevelopment Agency of the City of South San Francisco (the
"Agency") and the City have heretofore entered into a Joint Exercise of Powers Agreement dated
September 11, 1991, establishing the City of South San Francisco Capital Improvements
Financing Authority (the "Financing Authority") for the purpose of providing an entity which
can assist in providing financing for purposes which are authorized under the Joint Powers Law
(Section 6500 et seq. of the California Government Code); and
WHEREAS, a Redevelopment Plan for the Downtown/Central Redevelopment Project
(the "Project Area"), in the City of South San Francisco (the "City"), has been adopted in
compliance with all requirements of the Law; and
WHEREAS, a transient occupancy tax in the amount of $2.50 per day per room is levied
and collected by the City for the exclusive purpose of funding the establishment and maintenance
of a conference center in the City (the "Conference Center Tax") pursuant to Ordinance No.
1066-89, adopted by the City Council of the City on July 12, 1989 and approved by the voters on
November 7, 1989, and Section 4.20.035 of the City's municipal code; and
WHEREAS, the City originally took possession of the land and facilities at 255 South
Airport Boulevard (the "Conference Center Site"), pursuant to a long term lease with Erwin W.
Mayer and Josephine Anne Mayer, his wife, as landlord (the "Prior Owners"), dated as of
December 1, 1989; and
WHEREAS, the Conference Center is located in just outside the boundaries of the
Downtown Redevelopment Project Area (the "Project Area"); and
WHEREAS, the City caused to be executed and delivered $6,145,000 1999 Certificates
of Participation (the "1999 Certificates") pursuant to a Trust Agreement, dated as of January 1,
1999, among the City, the Financing Authority and U.S. Bank Trust National Association for the
purpose of funding the acquisition of the Conference Center Site from the Prior Owners, and as a
result of such acquisition, the City is currently the owner of the Conference Center Site and the
Conference Center; and
WHEREAS, the Agency has determined to pay for the cost of acquiring the Conference
Center Site with tax increment generated by the Project Area; and
NOW, TI-IEREFORE, BE IT RESOLVED by the City Council of the City of South San
Francisco that:
The City hereby specifically finds and declares that the actions authorized hereby
constitute the municipal purposes of the City, and that the statements, findings and
determinations of the City set forth herein are true and correct.
o
A public heating has been duly conducted by the City Council on the question of whether
the Agency shall pledge tax increment from the Project Area to pay the cost of acquiring
the Conference Center Site, and every person wishing to speak on that issue has been
heard.
a) the Conference Center (including the Conference Center Site) is of benefit to the
Project Area for several reasons, among them:
i. It has attracted new hotel development into the project area;
ii. It has given project area businesses much needed meeting space at reasonable
rates;
iii. It has attracted new business investment into the Project Area;
b) no other reasonable means of financing the acquisition of the Conference Center
Site are available to the City; and
c)
that the payment of tax increment for the Conference Center Site, by making
payments on the 1999 Certificates, will assist in the elimination of one or more
blighting conditions in the Project Area, and is consistent with the Implementation
Plan adopted pursuant to Section 33490 of the Health and Safety Code; and
d) use of tax increment for acquisition of the Conference Center site is consistent with
the most recent Redevelopment Implementation Plan.
o
The City Manager, Finance Director, City Clerk, and all other appropriate officials of the City
are hereby authorized and directed to execute such agreements, documents and certificates as
may be necessary to affect the purposes of this resolution and the payment herein authorized.
I hereby certify that the foregoing Resolution was regularly introduced and adopted by the
City Council of the City of South San Francisco at a meeting held on the
__ day of ,2004 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
S :\Current Reso's\6-23 -04Tax.inc.council.res.doc
ATTEST:
City Clerk