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Home My WebLink About2019-03-20 e-packet@7:00Wednesday, March 20, 2019 7:00 PM City of South San Francisco P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA City Hall, City Manager's Conference Room 400 Grand Avenue, South San Francisco, CA Special City Council Special Meeting Agenda March 20, 2019Special City Council Special Meeting Agenda NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of California, the City Council of the City of South San Francisco will hold a Special Meeting on Wednesday, March 20, 2019, at 7:00 p.m., in the City Manager's Office, City Hall, 400 Grand Avenue, South San Francisco, California. Purpose of the meeting: Call to Order. Roll Call. Agenda Review. Public Comments - comments are limited to items on the Special Meeting Agenda. ITEMS FOR CONSIDERATION Study Session to present opportunities for a Community Facility District financing strategy for the East of Highway 101 Area. (Mike Futrell, City Manager) 1. Adjournment. Page 2 City of South San Francisco Printed on 4/17/2019 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:19-191 Agenda Date:3/20/2019 Version:1 Item #:1. Study Session to present opportunities for a Community Facility District financing strategy for the East of Highway 101 Area.(Mike Futrell, City Manager) ATTACHMENTS A.Comparable CFDs B.Proposed Boundaries of City of South San Francisco Industrial Area Community Facilities District No. 2019-01 C.Utah Avenue Six Alternatives D.PowerPoint Presentation E.Granicus Test Edits - Can we add a few more lines of text into this Text File? F.Line 1 - aldjflasdjlkasjdljalgkjaldjglaksjdflsdkla; G.Line 2 - alkdgkljgklajdlkjasdlkfjkdljflkdsfjlkdjfl;asdf H.Line 3 - alkdgkljgklajdlkjasdlkfjkdljflkdsfjlkdjfl;asdf I.Line 4 - alkdgkljgklajdlkjasdlkfjkdljflkdsfjlkdjfl;asdf J.Line 5 - alkdgkljgklajdlkjasdlkfjkdljflkdsfjlkdjfl;asdf City of South San Francisco Printed on 4/17/2019Page 1 of 1 powered by Legistar™ City of South San Francisco Page 1 of 19 Printed on 3/15/2019 powered by Legistar™ City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #: 19-191 Agenda Date: 3/20/19 Version: 1 Item#: 1. Study Session to present opportunities for a Community Facility District financing strategy for the East of Highway 101 Area. (Mike Futrell, City Manager) RECOMMENDATION Staff recommends that the City Council consider and provide guidance on next steps to establish a Community Facility District generally within the East of 101 Area. BACKGROUND The San Francisco Bay Area has experienced unparalleled economic succes s since the end of the Great Recession. Approximately 660,000 jobs have been created in the region since 2010, and the unemployment rate in San Mateo County as of December, 2018, was at 2%, reflective of our robust economy. South San Francisco and its residents have benefited from this economic success in the form of greater job opportunities, increased home values and elimination of blighted sites in the city, replaced by modern buildings. This economic growth has not come without a cost, however, and traffic in South San Francisco has increased with the growing number of jobs and associated commuters. Much of the increased traffic is associated with growth in the City’s biotechnology and industrial area, centered along Highway 101 and East of Highway 101 (E101 Area.) To understand traffic patterns and the impact of future economic growth, the City began developing a new E101 Area Traffic Master Plan. The City will develop a new master traffic plan for areas West of Highway 101 in 2019. Once complete, both traffic master plans will become part of the new General Plan for South San Francisco. The City hired the firm of Fehr & Peers, well-qualified transportation experts, to develop the master traffic plan for the East of Highway 101 area. Fehr & Peers held multiple public meetings to gain information, feedback and ideas; studied existing travel patterns, roadway congestion, bicycle and pedestrian gaps; and evaluated the transit service within the E101 Area. Fehr & Peers then studied and projected future growth in the E101 Area, modeled that growth in light of existing transportation conditions, and concluded continued growth will increase the stresses on the City’s transportation systems to an unacceptable level. In light of the conclusion that continued growth would negatively affect transportation systems, Fehr & Peers explored and modeled possible improvements to transportation. What emerged were five initiatives, which, if successfully implemented, would improve transportation to an acceptable level even with the projected future growth. The Fehr & Peers study is known as Mobility 2020. Mobility 2020 identifies major capital and operating investments for the E101 Area which City of South San Francisco Page 2 of 19 Printed on 3/15/2019 powered by Legistar™ improves the transportation system; however, the plan requires an investment of approximately $356 million for construction, and an annual operating revenue stream of approximately $7 million for operation and maintenance. There are insufficient local, regional, state, or federal funds available to cover the cost of the needed improvements, requiring that City Staff look to other solutions to fund the needed improvements. City Staff, in conjunction with many companies in the E101 Ar ea, have explored the establishment of a Mello-Roos Community Facilities District (CFD) as a means to raise needed funding. Essentially, upon formation of a CFD, businesses in the E101 Area would pay a special tax of a specified amount, with those funds going towards improving transportation in the E101 Area. Discussion of the CFD formation process and costs/benefits is the focus of this study session, with City Staff seeking the City Council’s guidance and direction to continue pursuing a CFD as a means to finance the identified transportation improvements. DISCUSSION Current and Future Growth East of the 101 Area The E101 Area is an international hub for the biotechnology industry as well as a regional center for industry, logistics, and travel. Presently, the E101 Area serves approximately 28,000 employees across 21 million square feet of office/R&D, industrial, commercial, and hotel uses. Office/R&D and industrial space is in very high demand, with vacancy rates under five percent. Over the next two decades, the City expects to add over 13 million square feet of mostly office and R&D space in the E101 Area, doubling its daytime population to up to 55,000 employees. Approximately half of this growth is already approved or under construction and most will be office/R&D uses along with new hotels, retail, and employer amenities. Figure 1 graphically displays the projected growth in the E101 Area. Figure 1 – Current and Future E101 Growth Current and Future Transportation Challenges City of South San Francisco Page 3 of 19 Printed on 3/15/2019 powered by Legistar™ The E101 Area faces several challenges in accommodating expected growth:  Regional congestion on US-101, 280, 380;  Limited road access into the district via Oyster Point Blvd, Grand Avenue, Produce Avenue or South Airport Blvd;  Physical barriers created by US-101, the Caltrain Corridor and the San Francisco Bay; and  Future environmental concerns related to wetlands and sea level rise. Today, the East of 101 Area experiences an extended peak travel period with local traffic congestion spanning multiple hours. On a typical weekday, the busiest commute times are 7:00 - 10:00 AM (inbound) and 4:00-6:00 PM (outbound). Approximately 80 percent of trips occur via driving alone. Most trips originate in San Mateo County, but a growing number of commuters travel from the East Bay given the Peninsula’s worsening jobs-housing imbalance. Figure 2 - Inbound and Outbound Trips by Time of Day Traffic congestion is especially prevalent during the evening commute period. Access to the East of 101 Area is constrained to four major gateways accessing US -101 and I-380: Oyster Point Boulevard, East Grand Avenue, and South Airport Boulevard (north and south). These corridors experience daily backups, often extending several blocks. Furthermore, the mode split, or way that employees travel to the E101 Area, is skewed heavily towards trips by driving alone originating within San Mateo County (shown in Figure 3). This is primarily a result of convenience for San Mateo County based employees and a product of challenging last mile connections. Although several transit operators have identified the E101 Area as a near-term service expansion opportunity, including Caltrain, SamTrans, and the Water Emergency Transportation Authority (WETA), the Area’s limited shuttles, disconnected - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 Person Trips In (Eastbound) Person Trips Out (Westbound) City of South San Francisco Page 4 of 19 Printed on 3/15/2019 powered by Legistar™ sidewalks, and lack of bicycle infrastructure limits the accessibility of these services. Absent a reliable transit option, the vast majority of workers in the E101 Area drive a car to work, and they drive alone. Figure 3 - Peak period mode split and trip origins Without any improvements, the E101 Area will experience extended peak period congestion and diminished regional competitiveness in the future. With its current infrastructure and services, the E101 Area can theoretically absorb approximately 10,000 new employees – equivalent to the amount of development currently under construction. However, this growth (and any growth beyond it) will result in worsening congestion along key corridors such as Oyster Point Boulevard and East Grand Avenue. Recent traffic studies suggest that sixteen E101 Area intersections will operationally break down if all projected growth materializes by 2040. CFD Traffic Modeling Using the City’s model, Fehr & Peers analyzed the effects of CFD projects on the East of 101 area. With no changes, substantial traffic congestion would occur entering and exiting the area during peak periods, especially on Oyster Point Boulevard, East Grand Avenue, and South Airport Boulevard. Due to constrained roadway capacity and limited transit services, not all demand would be served. The CFD projects would expand roadway capacity by 20 to 30 percent and support a reduction in driving alone to 60 percent of all trips. Consequently, roadways would generally function within their operational capacities, though some congestion may occur in certain locations. Potential Traffic and Transit Solutions City of South San Francisco Page 5 of 19 Printed on 3/15/2019 powered by Legistar™ New roadway capacity and reduced solo driving is necessary to maintain an efficient and effective transportation network in the E101 Area given future growth. This requires new street connections, stronger Transportation Demand Management (TDM) programs, transit service expansions, and walking/bicycling investments. The Mobility 2020 study focuses on five major projects within the E101 Area to enhance access and provide viable options to travel to and from work while reducing delay. Combined, these projects are intended to increase roadway throughput capacity by approximately 20-30 percent and support a reduction in drive alone trips to 60 percent of all commute trips. These projects will also improve traffic West of Highway 101 by reducing the number of cars commuting through South San Francisco en route to major job centers East of Highway 101. The five recommended initiatives include: 1. Utah Avenue Interchange with US-101 a. Description: Extends Utah Avenue from South Airport Boulevard to San Mateo Avenue with a new southbound onramp and off-ramp. b. Cost Estimate - $100M c. Mobility Improvement: Provides a new east-west crossing of US-101 and a more direct path to the US-101 southbound onramp, alleviating a bottleneck at South Airport Boulevard/Produce Avenue intersection. Enables traffic to bypass East Grand Avenue and helps maximize underutilized capacity of Utah Avenue. d. Status: This project is on the State Transportation Improvement Program (STIP) and is currently in design utilizing a $3.8 million grant from the Metropolitan Transportation Commission (MTC). This Caltran supported project will finish design in early 2020, and then move into the environmental phase, costing an additional $4 million and lasting approximately 24 months. If placed on the fast track, this project could start construction in 2023 and open in 2025, pending funding. This project is also on the list of projects associated with the recently passed Measure W sales tax measure. Being on the STIP and the Measure W list, this project is eligible for funding from multiple sources. City of South San Francisco Page 6 of 19 Printed on 3/15/2019 powered by Legistar™ Figure 4 – Highway 101/Produce Avenue Project Alternative 1 Utah Avenue Interchange with US-101 Alternatives The following alternatives are currently being considered. All of the build alternatives would involve constructing a new overcrossing extension of Utah Avenue over US 101 that would connect with San Mateo Avenue. Please refer to Attachment C for all 6 Alternatives. A. No Build Alternative The “No Build” alternative assumes no construction of the Utah Ave/Produce Ave Interchange. Under this alternative, the existing southbound US 101 on-/off-ramps, Produce Avenue, South Airport Boulevard and Utah Avenue would remain unchanged. This alternative does not meet the need and purpose of the project. Rather, it provides a basis for the analysis and evaluation of the “Build” alternatives for the proposed project. B. Alternative 1 - Braided US 101 Southbound Off-Ramp This alternative would shift the existing southbound Produce Avenue on-ramp northerly to improve the weaving distance to I-380. The existing southbound off-ramp would be closed City of South San Francisco Page 7 of 19 Printed on 3/15/2019 powered by Legistar™ and replaced by a new diagonal off-ramp grade that would connect to the new overcrossing. The southbound off-ramp would begin as a single lane ramp and widen to two lanes, providing off-ramp storage improvement. A new local road would be constructed starting just before the southbound on-ramp and ending west of Utah Avenue extension. The existing Terminal Court would be closed. Alternative 1 increases capacity for the southbound off-ramp by constructing a new clear- span bridge over Colma Creek and Produce Avenue. It also provides connectivity and circulation with the west-side of the freeway and the proposed Utah overcrossing, and reduces traffic on Airport Boulevard between Produce Avenue and Gateway Boulevard. The cul-de-sac would have to extend parallel to the proposed Utah Avenue to provide access to the Park N’ Fly lot adjacent to US 101. However, because of the cul-de-sac, there would be necessary right-of-way takes at the produce market and therefore a refined version of this alternative was created (Alternative 5). C. Alternative 2 - Modified Partial Cloverleaf Alternative 2 proposes to construct a modified partial cloverleaf interchange. The existing southbound on- and off-ramps would be closed. A new southbound off-ramp would connect to Produce Avenue in a “T” intersection with the loop on-ramp. A new local road starting right after the Colma Creek Bridge would run alongside the new southbound off-ramp and connect to a signalized intersection, west of Produce Avenue. Similar to Alternative 2, the access to the Park ‘N Fly parking lots would be provided at the signalized intersection and the existing Terminal Court would be closed. This alternative also maintains Produce Avenue as a through road along the perimeter of the Park ‘N Fly lot (similar to Alternative 1), connecting Airport Blvd to the proposed Utah Avenue extension. This interchange design also requires a cul-de-sac roadway connection from Utah Avenue to the Produce Market and south Park ‘N Fly lot which cannot be avoided, and requires acquisition of a portion of the Produce Market. D. Alternative 3 - Tight Diamond With Braided Ramps Alternative 3 is the maximum foot-print alternative. It proposes to reconfigure the interchange to a tight diamond interchange. The on- and off-ramps south of the overcrossing would be braided with the I-380 connector ramps. In the northbound direction, the I-380 two- lane connector ramp would braid over the off-ramp to the Utah Avenue overcrossing. In the southbound direction, the two-lane on-ramp would split in two: one going to west I-380 and the other heading to southbound 101. The existing southbound 101 to westbound I-380 connector ramp would also be shifted 1700 feet to the north. The existing on- and off-ramps in both directions would be closed. Produce Avenue would be relocated along the westerly side of the new southbound diagonal off-ramp and it would continue under the new overcrossing, providing access to the parcels in the southwest quadrant. Alternative 3 would improve storage capacity for the northbound and southbound ramps. City of South San Francisco Page 8 of 19 Printed on 3/15/2019 powered by Legistar™ This alternative would have the highest right-of-way impacts along both sides of US 101. This alternative would also have substantially higher costs than the other alternatives, due to the needed right-of-way and the number of structures. E. Alternative 4 - Roundabout Intersections Alternative 4 proposes to construct an overcrossing extending Utah Avenue westerly over US 101 to connect with San Mateo Avenue at a new “T” intersection. This alternative would incorporate roundabouts in place of traffic signals at key locations. The existing southbound on- and off-ramps would be closed. This alternative also proposes a roundabout at the intersection of South Airport Boulevard and Utah Avenue. The Utah Avenue/S. Airport Boulevard roundabout will have to be raised, and the higher vertical profile will cause access problems for adjoining businesses (at their driveways). The roundabouts would have to be two lanes wide to accommodate traffic volumes, plus additional space may be necessary to allow adequate separation between bikes and cars. The southbound on-ramp would be limited to one general purpose and one HOV lane which is not anticipated to have sufficient capacity. Similar to Alternative 1 and 2, the removal of Terminal Court for the proposed southbound off- and on-ramps also removes existing access to the Produce Market and south Park ‘N Fly lot. F. Alternative 5 – Braided US 101 Southbound Off-Ramp (Modified) This alternative is similar to Alternative #1, but includes several major design refinements to avoid or minimize impacts. The alignment of the Utah Avenue overcrossing was adjusted to avoid direct impacts to the two main buildings at the Produce Market property. This alignment still impacts the entrance gate to the market and administrative buildings, but avoids the produce market structures that may potentially be considered historic. It provides for direct access from the Produce Market area to the intersection at Utah Avenue and Produce Avenue. To serve the south Park ‘N Fly lot, a connector roadway provides access from the realigned Produce Avenue. The southbound Produce Avenue on-ramp would accommodate multiple lanes including an HOV bypass, with increased capacity. The southbound off-ramp would require a clear span bridge over Colma Creek. G. Alternative 6 – Utah Avenue and Local Road Improvements This alternative is a reduced scope version of Alternatives #1 and #5. It features several design refinements and deletions to avoid and minimize impacts as shown in the other alternatives. The alignment of Utah Avenue was adjusted further to the north to avoid direct impacts to the two main buildings at the Produce Market property. The major difference of this alternative is that Produce Avenue and the connecting southbound on-ramp are kept almost intact. The intersection at Airport Boulevard and San Mateo Avenue is upgraded to a ‘complete streets’ configuration. The segment of San Mateo Avenue between the new Utah Avenue connection and Airport Boulevard (which is currently one lane in each direction with on-street parking) will be restriped to show two northbound lanes and one southbound lane City of South San Francisco Page 9 of 19 Printed on 3/15/2019 powered by Legistar™ with no on-street parking. This alternative will maintain a shorter cul-de-sac at terminal court while providing a revised entrance to the south Park ‘N Fly lot and Produce Market area. A second/alternative entrance to the Produce Market and north Park ‘N Fly lot is provided along Utah Avenue. This alternative minimizes or avoids impacts to the north Park ‘N Fly lot, the Park ‘N Fly lot’s new entrance plaza, and the gas station on Produce Avenue near the Colma Canal. The existing southbound off-ramp will be maintained in its current location. The existing free right-turn connector (from northbound Produce Avenue to eastbound Airport Boulevard, with a stop sign at Airport Boulevard) will be removed. It will be replaced with two right turn lanes from Produce Avenue to Airport Boulevard, controlled by a signal. This alternative would likely be the lowest cost of all of the alternatives evaluated. 2. I-380 Connector to Haskins Way/Littlefield Avenue a. Description: Connects I-380/North Access Road directly to the E101 Area via either Haskins Way or Littlefield Avenue b. Cost Estimate - $130M c. Mobility Improvement: Provides direct connection to I-380, US-101, and I-280 via presently underutilized freeway stub. Enables traffic to travel I-280 to I-380, then directly into the E101 Area, bypassing US-101 completely. d. Status: This project is in the South San Francisco FY18-19 CIP project for conceptual design. This project is also on the list of projects associated with the recently passed Measure W sales tax measure. Figure 6 – Highway 380/Haskins Way or Littlefield Avenue Causeway Alternatives City of South San Francisco Page 10 of 19 Printed on 3/15/2019 powered by Legistar™ Figure 7 – Highway 380/Haskins Way Causeway Notional Design 3. Grand Avenue/US-101 Northbound Off-ramp Flyover a. Description: Realigns northbound US-101 off-ramp to Grand Avenue by routing traffic above the new Caltrain Station. Figure 8 shows the current and proposed road alignment. Figure 9 is a rendering of the eastern Caltrain Plaza with the Off-Ramp Flyover in place. b. Cost Estimate - $35M c. Mobility Improvement: Removes barrier to accessing Caltrain station and supports more efficient connection to Grand Avenue for eastbound and westbound off-ramp traffic. d. Status: This project is in conceptual design. City of South San Francisco Page 11 of 19 Printed on 3/15/2019 powered by Legistar™ Figure 8 – Grand Avenue/Highway 101Northbound Off-Ramp Flyover City of South San Francisco Page 12 of 19 Printed on 3/15/2019 powered by Legistar™ Figure 9 – Grand Avenue/Highway 101Northbound Off-Ramp Flyover Notional Design 4. Street Operations, Safety, and Active Transportation Improvements a. Description: Modernizes street infrastructure to provide more efficient intersection operations, on-street bus stops, bicycle and pedestrian improvements, and new trail connections, creating safer links to Caltrain, Ferry Terminal and BART. See Figure 10 for a visual summary of projects. Below is a summary of project areas and cost estimates. City of South San Francisco Page 13 of 19 Printed on 3/15/2019 powered by Legistar™ a. Cost Estimate - $91M b. Mobility Improvement: Supports improved circulation within E101 Area and enhanced connections to transit, Bay Trail, and Centennial Trail. c. Status: In planning. Figure 10 – Street Operations, Safety, and Active Transportation Improvements Summary 5. Increase in Commuter Shuttles a. Description: The City is well served by transit – two nearby BART stations, Caltrain Station and Ferry Terminal – but cannot effectively use these assets due to the severe lack of “last mile” commuter shuttles. Increasing the number of shuttles, and operation and maintenance of same, is required to reduce the number of employees driving to work. b. Cost Estimate - Purchase shuttles, plus $6 million per year for operation and maintenance. c. Mobility Improvement: Maximizes ridership to promote a mode shift to transit. City of South San Francisco Page 14 of 19 Printed on 3/15/2019 powered by Legistar™ d. Status: In design. Benefits of the Five Point Solutions in Mobility 2020 The Five Point Solutions described above will enable the East of 101 Area’s transportation system to keep pace with growing demand. These improvements will help expand the Area’s peak period street capacity by approximately 20-30 percent and support a quadrupling of transit and bicycle ridership. Specifically, these improvements will enable the following area- and city- wide benefits: Traffic Benefits: The Five Point Solutions would improve traffic operations at freeway interchanges and on major arterials such as East Grand Avenue, Oyster Point Boulevard, and South Airport Boulevard, keeping most intersections operating within the City’s level of service (LOS) standards. They provide a more resilient transportation network providing two new east- west street connections providing additional circulation options and rerouting commuter and freight trips away from downtown, East Grand Avenue, and the Caltrain station area. By providing better non-auto commute options, they support continued compliance with employer trip reduction requirements described in the City’s TDM ordinance. These solutions will also provide ancillary benefits to the areas West of Highway 101. More transit users equates to fewer commuters driving to work, equating to fewer cars on major arterials such as Westborough Boulevard, Hillside Boulevard and Sister Cities Boulevard. Construction of the I-380/Littlefield Flyover allows vehicles to bypass South San Francisco all together, travelling to work via I-280 to I-380 and directly into the industrial area East of Highway 101. Transit Benefits: The Five Point Solutions would help create a more competitive transit service to efficiently funnel riders to transit and support the extension of SamTrans to the East of 101 Area. By bridging the first/last mile gap for transit riders, they help increase demand for transit services and the Area’s regional competitiveness for bus, rail, and ferry trips. Active Transportation Benefits: The Five Point Solutions would improve active transportation connections to increase walking and biking. By seamlessly connect residents, employers, transit hubs, and the Bay Trail, the Five Point Solutions supports growth of the citywide bicycle network and more walking trips within the East of 101 Area. A Note About the East of 101 Traffic Impact Fee The East of 101 Traffic Impact Fee was first established in 2001 and updated in 2005 through resolution 101-2005 and updated again in 2007 through 84-2007. The East of 101 Traffic Impact fee is used to fund traffic improvements that help mitigate increased traffic generated from new developments in the East of 101 Area. The fee is paid by developers of new projects. Each land use category has a different generated fee paid per square foot. Commercial use has the highest fee, followed by Office/R&D, hotels, and industrial. The fee is paid as part of the building permit issuance. Completed East of 101 Traffic Impact Fee funded projects include City of South San Francisco Page 15 of 19 Printed on 3/15/2019 powered by Legistar™ adding additional Northbound US 101 exit lanes on South Airport Boulevard and Grand Avenue; adding additional turn lanes on Dubuque and Oyster Point Boulevard; and improving the Utah Avenue and South Airport Boulevard intersection. In the fiscal year 2018-19 Capital Improvement Program, the East of 101 Traffic Impact Fee is funding the design of intersection improvements at East Grand Avenue and Gateway Boulevard and Oyster Point Boulevard at Gateway Boulevard and Veterans Boulevard. A total of $3,729,452 is allocated for these projects, leaving a current unallocated balance in the East of 101 Traffic Impact Fee fund of $12,127,761. Receipts into the East of 101 Traffic Impact Fee fund over the past five years are shown below:  FY13-14: $1,886,962  FY 14-15: $1,411,850  FY 15-16: $1,637,445  FY 16-17: $ 109,867  FY 17-18: $5,698,648 The revenue generated by the East of 101 Traffic Impact Fee is helpful; however, it is not adequate to address the five recommended solutions in Mobility 2020. Creation of the South San Francisco Industrial Area Community Facilities District (IA-CFD) A common tool used in California to raise revenue for defined projects is formation of a Community Facilities District (CFD). Pursuant to the Mello-Roos Community Facilities Act of 1982 (“Mello-Roos Act”), a CFD is a defined geographic area in which the City is authorized to levy annual special taxes to be used to either finance directly the costs of specified public improvements and/or public services, or to pay debt service on bonds issued to finance the public improvements, as well as to pay costs of administering the CFD and for maintenance and operation of assets acquired through the CFD. The formation of the CFD requires consent of 66.7% or more of the affected landowners. Numerous CFDs have formed in the Bay Area. For example, the City of San Mateo formed a CFD in the Bay Meadows project, and the City of Redwood City formed a CFD around the One Marina project, both to fund public infrastructure. Recently formed CFDs are listed in Attachment A. Utilizing this tool, staff recommends pursuing creation of the South San Francisco Industrial Area Community Facilities District (IA-CFD) to provide financing for the eligible project areas in the Mobility 2020 plan. The proposed IA-CFD boundaries would include all non-residential parcels in the East of 101 Area, plus certain non-residential parcels extending to San Mateo Avenue and Airport Blvd, located to the west of Highway 101. A map outlining the proposed IA-CFD boundaries is provided as Attachment B. In total, the IA-CFD would be comprised of approximately 492 taxable parcels with 348 unique property owners, made up of a total land area of 1,138 acres containing approximately 23 million building square feet. Note that publicly City of South San Francisco Page 16 of 19 Printed on 3/15/2019 powered by Legistar™ owned parcels are excluded from the proposed IA-CFD area. This funding allocation provides a large part of the construction dollars needed to move forward the four construction oriented elements of Mobility 2020, an acquire additional shuttle buses or other assets needed to provide last mile transit solutions. Additional funding from federal, state, regional and local sources will bridge the gaps to move projects to completion. How to Form a Community Facilities District (CFD) The process of establishing a CFD requires at least four City Council meetings: Meeting Number One: Adoption of two resolutions: a Resolution of Intention (ROI) setting forth the City’s intention to establish the CFD, designating the name of the CFD, identifying the services and facilities to be funded by the CFD, stating the City’s intention to levy a special tax annually on property within the CFD to pay for these services and facilities, and approving the Rate and Method of Apportionment of Special Tax (RMA) for the CFD, which details how the special tax will be levied on properties within the CFD and sets the maximum special tax rates that can be levied within the CFD. The ROI also sets the date for the required public hearing (30 to 60 days later) on the matters set forth in the ROI. The second resolution a Resolution of Intention to Incur Indebtedness, sets forth the Council’s intention to issue bonds supported by the special taxes. This resolution also sets a public hearing for the same date. Meeting Number Two: Hold the noticed public hearings at a City Council meeting. Following the public hearings, the City Council is presented with two resolutions: a resolution forming the CFD, and a resolution calling the special tax election (90 to 180 days later) by the landowner voters within the CFD. Meeting Number Three: Opening and counting of ballots. If the CFD gains the required number of votes for passage, the City Council will adopt a Resolution Confirming Results of Special Election, and introduce an ordinance ordering the levy of special taxes within the CFD Meeting Number Four: Hold a second reading to adopt the special tax ordinance ordering the levy of special taxes within the CFD. After formation of the CFD, a special tax is levied annually on taxable properties that are located within the boundaries of the CFD. Community Facilities District Boundaries The proposed CFD boundaries include all non-residential parcels in the East of 101 Area, plus certain non- residential parcels extending to San Mateo Avenue and Airport Blvd, located to the west of Highway 101. In total, this CFD area is comprised of 492 taxable parcels and 348 unique property owners, with a total acreage of 1,138 acres containing approximately 23 million building square feet. This figure includes projects estimated to be built to completion by June 2020 and is subject to change. Public parcels have been excluded from the initial proposed CFD area. City of South San Francisco Page 17 of 19 Printed on 3/15/2019 powered by Legistar™ Who are the Landowners? There are currently 348 property owners in the E-101 Area, comprising of 492 taxable parcels and a total acreage of 1,138 acres containing approximately 23 million building square feet. The top three land uses by total building area (SF) are Warehouse (35% or 8,122,460 SF), Biotech (31% or 7,261,736 SF) and Multi-story Office (15% or 3,365,900 SF). E-101 Area General Land Use Classes The top 10 property owners account for 679 acres and 52.2% of the total voting acreage. Top property owners include Genentech, HCP, Alexandria Real Estate Equities, Prologis, Blackstone, Phase 3 Real Estate Partners, Valacal, Boston Properties, Golden Gate Produce Terminal, South San Francisco Scavenger Company. All other property owners account for 596 acres. 35% 31% 15% 6% 5% 8% Total Building Area (SF) by Land Use Warehouse Biotech Multi-Story Office Hotel Light Manufacturing Misc City of South San Francisco Page 18 of 19 Printed on 3/15/2019 powered by Legistar™ Community Facilities District Financing To estimate the total financing capacity of the CFD, the City and its consultants are currently evaluating two (2) different scenarios, Model 1 and Model 2.  Model 1 uses a proposed special tax rate of $1.00 per building square foot ("BSF") for all non- residential property. Using the methodology outlined above, the CFD is estimated to raise approximately $22.9 million per year in special tax revenue, a portion of which will be used for administration, operations and maintenance.  Model 2 proposes a lower special tax rate of $0.60 per BSF for warehouse parcels only. Using the methodology outlined above, the CFD is estimated to raise approximately $20.1 million per year in special tax revenue, a portion of which will be used for administration, operations and maintenance. Conceptually these funds could be used to implement the recommendations of Mobility 2020 as follows:  Maintenance and Operation of tangible property (i.e. shuttle busses) identified in Mobility 2020 and purchased with CFD funds: $6 million annually  Bond Out Revenue for Construction: $230 million (estimated $15.9 million debt service)  Administration and Contingency: $1 million per year The City notes that certain parcels in the Oyster Point area are also a part of Community Facilities District No. 2017-01, and as such, these parcels would only pay the difference between its existing special tax for CFD No. 2017-01 and the proposed rates for the various scenarios. Additionally, future building square feet developed through new construction or up-zoning will be subject to the tax, and the additional funds will be able to used to secure additional bonds. All figures are estimates, subject to change. Any funds not allocated for administration, operations and maintenance can be made available for bond financing; and as such, the City can raise a range of bond proceeds between $189 million and $230 million for public facilities and infrastructure. All figures are estimates, subject to change. Outreach Over the last several months, City Staff have met individually with 27 landowners, tenants and others in the E-101 Area to gauge interest in supporting the IA-CFD, at the noted rate of $1.00 per square foot per year. In general, all those met with appreciated the City’s proactive approach to finding traffic solutions, and agreed that pursuing a CFD to fund those solutions was appropriate. Assuming City Council likewise agrees that continuing to pursue a CFD makes sense, City Staff will, over the next five months, continue to meet with landowners and tenants in the proposed IA- CFD area to gain user input on both the Mobility 2020 plan and the CFD as a financing tool. City of South San Francisco Page 19 of 19 Printed on 3/15/2019 powered by Legistar™ FISCAL IMPACT Depending on the model selected, staff estimates that the CFD will generate approximately $20.1 million to $22.9 million in annual CFD revenues with a range of bond proceeds between $189 million to $230 million to pay for public facilities and improvements, depending on the special tax revenue allocation towards operations, maintenance, and services. RELATIONSHIP TO STRATEGIC PLAN Exploring the creation of a Community Facilities District (CFD) in the East of the 101 Area meets Strategic Plan Goals #3 Public Safety, #4 Financial Stability, and #5 Economic Viability. The improved mobility and transportation options East of the 101 ensures that South San Francisco remains a viable economic hub with a full range of employment options and a diverse mix of industries while preserving strong city revenues resistant to economic downturns (#4 and #5). A CFD East of the 101 Area will also provide improved accessibility to first responders during times of emergency or natural disaster. CONCLUSION Both new roadway capacity and improved transit to reduce solo driving is necessary to maintain the economic viability of the East of Highway 101 industrial area. Anticipated economic growth will increase the stress on existing transportation infrastructure and systems, requiring action today to meet those anticipated challenges. Taking meaningful action requires substantial financial investments well beyond the current capability of City finances. City Staff seeks City Council direction and guidance as staff continues to explore a Community Facilities District for the industrial areas around Highway 101 and East of Highway 101 as a means to finance the needed transportation improvements Staff recommends continuing outreach efforts to E101 Area landowners and stakeholders in order to determine feasibility. Further, staff recommends scheduli ng additional study sessions to keep Council apprised and gain further direction. ATTACHMENTS A. Comparable CFDs B. Proposed Boundaries of City of South San Francisco Industrial Area Community Facilities District No. 2019-01 C. Utah Avenue Six Alternatives City of South San Francisco Page 20 of 19 Printed on 3/15/2019 powered by Legistar™ File #: 19-78 Agenda Date: 3/7/2019 Version: 1 Item #: 2. City of South San Francisco Page 21 of 19 Printed on 3/15/2019 powered by Legistar™ File #: 19-78 Agenda Date: 3/7/2019 Version: 1 Item #: 2. City of South San Francisco Page 22 of 19 Printed on 3/15/2019 powered by Legistar™ File #: 19-78 Agenda Date: 3/7/2019 Version: 1 Item #: 2. Project Name Project Location Purpose Bond Series Amount of Bond Issue District Name Year of Bond Issue Base Year Maximum Special Tax (Residential)Base Year Maximum Special Tax (Non-Residential)Total Effective Tax Rates 2018 Maximum Special Tax Rates Bay Meadows City of San Mateo 2012 $31,800,000 City of San Mateo CFD No. 2008-1 2012 Bay Meadows City of San Mateo 2013 $26,000,000 City of San Mateo CFD No. 2008-1 2013 Bay Meadows City of San Mateo 2014 $28,475,000 City of San Mateo CFD No. 2008-1 2014 Transbay City and County of San Francisco 2017A $36,975,000 City and County of San Francisco CFD No. 2014-1 2017 Transbay City and County of San Francisco 2017B $171,405,000 City and County of San Francisco CFD No. 2014-1 2017 Alameda Landing City of Alameda Public Infrastructure including: Roadways, Sanitary Sewer, Storm Drain, Parks, Street Lights and Traffic Signals, Wharf Improvements, Floating Dock 2016 $15,415,000 City of Alameda CFD No. 13-1 2016 $4,915 per SFD Residential, $3,348 per MF Residential $1.63 per BSF Non-Residential 1.81% - 1.83%$1.70 per BSF Non-Residential One Marina City of Redwood City Public Infrastructure including: Blomquist Bridge Extension, Highway 101 Pedestrian Undercrossing, Grading, Sanitary Sewer, Walkways, Landscape, Erosion Control, East Bayshore Road Pavement 2011 $5,760,000 City of Redwood City CFD No. 2010-1 2011 $3,080 per Residential Unit, $1,540 per BMR Unit $86,820 per Non-Residential Acre 1.71%$99,730 per Non-Residential Acre Mission Bay South City and County of San Francisco 2013A $81,775,000 City and County of San Francisco CFD No. 6 2013 Mission Bay South City and County of San Francisco 2013B $19,635,000 City and County of San Francisco CFD No. 6 2013 Mission Bay South City and County of San Francisco 2013C $21,601,256 City and County of San Francisco CFD No. 6 2013 Northern California - Bay Area - Community Facilities Districts Bonds $1.99 per Office SF, $0.58 per Retail SF Public Infrastructure including: Streets, Roadways, Avenues, Parks, Storm Drain, Sanitary Sewer, Utilities, Mitigation Fees Public Infrastructure and Public Services, including: Open Space, the Train Box, Salesforce Park, Street and Sidewalk Improvements, Maintenance $1.77 per Office SF, $0.52 per Retail SF 1.69% - 1.70% Unchanged Public Infrastructure including: Streets, Walkways, Landscaping, Open Space, Parks, Utilities, Fire Station, School Site 1.25% - 2.71%$8.61 per Residential SF, $5.88 per Rental SF $5.74 per Office SF, $3.72 per Retail SF $5,719 per SFD Residential, $1,658 per MF Residential $114,000 per Acre of Developed Property $125,865 per Acre of Developed Property, $0.55 per Retail BSF1.54%$114,000 per Acre of Developed Property, except $0.50 per Retail BSF AIRPORT BLVDE GRAND AVE PARK WY SHAW RDMAPLE AVE4TH LN 2ND LN AIR PO RT BLVDS AI RPORT BLVDLINDEN AVEDUBUQUE AVE1ST LN SISTER CITIES BLVD HEMLOCK AVE U T A H A V E S LINDEN AVETAMARACK LN POLETTI WYUS HIGHWAY 101RAILROAD AVE LOWRIE AVEGATEWAY BLVDDNA WYN ACCESS RD GULL DR3RD LN SPRUCE AVEGRAND AVE S MAPLE AVESAN MATEO AVEEC C LES AVELARCH AVE ROCCA AVE SWIFT AVE VIOLA ST E JAMIE CTALLERTON AVEPECKS LNMITCHELL AVEASH AVEOLIVE AVEE BASIN RD LAWRENCE AVE A L L E Y BEACON ST VICTORY AVE DOLLAR AVEE HARRIS AVE G AR D IN ER AVESYLVESTER RDOY S T ER P O I N T B LVD B E L L E A I R E R DRO EBLING RDWEST WY CFD Boundary Area SFO Brisbane San Bruno O y s t e r P o i n t M a r i n a INTERSTATE -3 8 0 City Hall San Bruno Mountain County Park Lege nd CFD Boundary Other Parcels in SSF City Limit EAST OF 101 TRANSPORTATION PLAN City Council Study Session March 20, 2019 Agenda I. Traffic Modeling II. Improvement Concepts III. CFD Process & Financing IV. Q & A E101 Traffic Modeling with Investment •Existing Conditions support 28,000 employees in E101 area •In Year 2040, with no investment: 55,000 employees expected with severe traffic conditions •In Year 2040, with completion of recommended projects: 55,000 employees with moderate traffic conditions Requires reducing solo driving from 80% to 60% Action is Required to Save E101as a Viable Economic Center About 80% of peak period trips occur by driving alone. *Among TDM ordinance participants, 64% drive alone. A majority of peak period trips are not covered by the TDM ordinance. AM Peak Travel Patterns Most trips originate in San Mateo County •With no changes, substantial traffic congestion would occur across East of 101 Area. •With constrained roadway capacity and limited access transit services, not all demand would be served. 2040 Conditions V/C Ratio DefinedVolume to capacity (V/C) ratio is a measure of roadway demand versus operational capacity. A V/C ratio over 1 indicates a roadway is heavily congested, while some delay may be experienced starting around a V/C ratio of 0.75. CFD Project Description Infrastructure & Services •Hwy 380 to Littlefield Ave Connection - $130M est. •Grand Avenue/ US 101 Improvements - $35M est. •Corridor Improvements & Access to Transit - $90M est •Last Mile Connections: Caltrain & BART & Ferry - $6M est. •Utah Avenue/Hwy 101 Interchange - $100M est. Transportation Recommendations Project Cost estimate is $355M and unfunded I-380 Connection •Leverage underused capacity on I-380 and North Access Road to create new bypass Cost: Approximately $130 Million I-380 Connection •Leverage underused capacity on I-380 and North Access Road to create new bypass Cost: Approximately $130 Million Grand Ave Offramp •Separate offramp traffic from Caltrain station area to improve efficiency and safety Cost: Approximately $35 Million Grand Ave Offramp •Separate offramptraffic from Caltrainstation area to improve efficiency and safety Cost: Approximately $35 Million Street Operations & Safety •Modernize major arterials and active transportation network Street Operations & Safety Corridor Improvement Estimated Cost Oyster Point Blvd Add bus lanes and bus stops, reconfigure median, improve sidewalks/crosswalks $7M East Grand Avenue Modernize traffic signals, improve sidewalks/crosswalks,add bikeways, close gap in median, add new signals or roundabouts, add bus stops $22M South AirportBlvd & Gateway Blvd Close gaps in median and sidewalks, improve crosswalks, add bike lanes, modify lane configurations $17M Gull Drive Widen from two to four lanes $6M Forbes Boulevard New signal at Corporate Drive, close sidewalk and bikeway gap between Eccles and Allerton $4M Other Improvements TBD Changes to streets such as Utah, Harbor, Mitchell, Eccles, and Allerton to support other CFD improvements $15M Total $71M Last Mile •Develop a shuttle service carrying >10,000 riders per day •Capacity for Future Service -Caltrain: 8 stops/hour •$9M in capital costs to purchase 13 vehicles; $6M/Year for operations & maintenance Street Operations & Safety Project Improvement Estimated Cost Caltrain Trail Connections Connects Caltrain with 3 miles of trails and improvements to intersection crossings $7M BART / Centennial Trail Connection Connects Bay Trail with Centennial Trail and San Bruno BART Station via bridge across US-101. $13M Total $20M Utah Avenue Interchange •New East-West US-101 Crossing •6 Alternatives Community Facilities District Process & Financing Community Facilities District (CFD) •Requires Two-Thirds (2/3) vote of Property Owners through Mail Ballot •Votes are calculated based on acreage •Assessment is calculated on building square footage 24 East of Hwy 101 CFD 25 CFD Boundary Area: - East of Hwy 101 - Partial West of Hwy 101 Properties: - All Non-Residential - Excludes Public Properties East of Hwy 101 CFD CFD Boundary Area: -East of Hwy 101 -Partial West of Hwy 101 Properties: -All Non-Residential -Excludes Public Properties 26 Total Building Area (SF) by Land Use Warehouse Biotech Multi Story Office Hotel Light Manufacturing Misc 348 Property Owners Land Use by Square Footage Land Use Total Building Area (SQ FT) Warehouse 8.1M Biotech 7.2M Multi-Story Office 3.4M Hotel 1.5M Light Manufacturing 1.2M 28 Genentech 249 HCP 127 Alexandria Real Estate Equities 99 Prologis 62 Blackstone 33 Phase 3 Real Estate Partners 27 Valacal 26 Boston Properties 25 Golden Gate Produce Terminal LTD 16 South San Francisco Scavenger Co.15 All Others 596 Top Property Owners (Private) Acres (Rounded for Voting Purposes) 52% Total Acreage 1,138 acres Two Financial Models Model #1 – •$1 per square foot (all land types) Model #2 – •.60 cents per square foot - Warehouse •$1 for all others Model #1 : $1 per SF for All •$22.9M in CFD revenue (est.) •$7M for annual O&M and Administration •$15.9M for annual debt service (bonding) •$230M estimated bonding capacity 30 Model #2: Warehouse Pays a Different Rate 31 •$20.1M in CFD revenue •$7M for annual O&M and Administration •$13.1M for annual debt service (bonding) •$189M estimated bonding capacity Questions and Answers Questions & Answers 32 Upcoming Milestones •Continued Meetings with Landowners – March 2019 to TBD •Next City Council Study Session (Proposed Date: May 13, 2019) •CFD to City Council for a vote – TBD •Staff Recommendation: Continue to meet with landowners and stakeholders in order to determine feasibility. Bringing the Mobility 2020 Plan to Life! CITY OF SOUTH SAN FRANCISCO SPEAKER CARD To address the City Council, please complete this card and submit it to the City Clerk Speaker comments are limited to three (3) minutes Please indicate which item you'd like to speak on: 1)_._Public Comments, or 2) Agenda Item Name: 0- " ° Date: Pronounced: Address (optional)