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2013-02-13 e-packet
AGENDA o�zH �y 04S • -;pia: - in — CITY COUNCIL CITY CITY OF SOUTH SAN FRANCISCO s) c9((FORN�P REGULAR MEETING MUNICIPAL SERVICES BUILDING COUNCIL CHAMBERS 33 ARROYO DRIVE SOUTH SAN FRANCISCO, CA WEDNESDAY, FEBRUARY 13, 2013 7:00 P.M. PEOPLE OF SOUTH SAN FRANCISCO You are invited to offer your suggestions. hi 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 7:00 p.m. in the Municipal Services Building, Council Chambers, 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 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. PEDRO GONZALEZ Mayor KARYL MATSUMOTO MARK N. ADDIEGO Mayor Pro Tem Councilman RICHARD A. GARBARINO DR. PRADEEP GUPTA Councilman Councilman FRANK RISSO KRISTA MARTINELLI City Treasurer City Clerk BARRY M. NAGEL STEVEN T. MATTAS City Manager City Attorney PLEASE SILENCE CELL PHONES AND PAGERS HEARING ASSISTANCE EQUIPMENT AVAILABLE FOR USE BY THE HEARING IMPAIRED AT CITY COUNCIL MEETINGS In accordance with California Government Code Section 54957.5, any writing or document that is a public record, relates to an open session agenda item, and is distributed less than 72 hours prior to a regular meeting will be made available for public inspection in the City Clerk's Office located at City Hall. If, however, the document or writing is not distributed until the regular meeting to which it relates, then the document or writing will be made available to the public at the location of the meeting, as listed on this agenda. The address ot.QtE Hall is 400 Grand Avenue South San Francisco California 94080. CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE AGENDA REVIEW PUBLIC COMMENTS ITEMS FROM COUNCIL • Announcements. • Committee Reports. • City Selection Committee Appointments. • Discussion of Possible Proposition IA Violation by State in Implementing Redevelopment Trust Fund Distributions to Taxing Entities. • Discussion related to upcoming Board and Commission Interviews. CONSENT CALENDAR Motion to approve the Minutes of the meetings of January 8, 2013 and January 23, 2013. 2. Motion confirming payment registers for February 13, 2013. 3. Motion to waive reading and adopt an ordinance amending Chapter 8.50 of the South San Francisco Municipal Code Regarding Regulation of Smoking in Parks and Designated Public Areas. 4. Motion approving one sculpture, Flying Fish, for the Loan Art Program at the Orange Memoriaf Park Sculpture Garden as recommended by the Cultural Arts Commission. 5. Resolution approving an emergency construction contract with A.J. Uccelli & Son, Inc. in an amount not to exceed $150,000 related to Miller Residential Units. 6. Resolution approving a Loan Agreement in the amount of $8,652 with the Successor Agency to the Former Redevelopment Agency of the City of South San Francisco to allow the Successor Agency to make payments for two non - housing recognized obligation payment expenses shown on ROPS I but incurred during ROPS II. LEGISLATIVE BUSINESS 7. Motion to waive reading and introduce an Ordinance amending Chapter 6.72 of the South San Francisco Municipal Code to clarify the Vehicles for Hire Certificate of Convenience and Necessary Application Process. REGULAR CITY COUNCIL MEETING FEBRUARY 13, 2013 AGENDA PAGE2 8. Motion to waive reading and introduce an Ordinance amending the South San Francisco Municipal Code Chapter 2.78 to provide for City Manager Oversight of the Conference Center Executive Director and removing the City Manager as Ex- Officio member of the Conference Center Authority Board of Directors. PUBLIC HEARING 9. An Ordinance making revisions, corrections and clarifications to the South San Francisco Municipal Code (Dissolution of Redevelopment Agency) — related to the elimination of the Redevelopment Agency (RDA) references. ADMINISTRATIVE BUSINESS 10. Resolution approving the Fourth Amendment to the Agreement for Collection and Disposal of Solid Waste Matter in the City of South San Francisco. 11. Resolution approving a contract with City Manager Position Recruitment Firm. COMMUNITY FORUM ADJOURNMENT REGULAR CITY COUNCIL MEETING FEBRUARY 13, 2013 AGENDA PAGE3 Meeting of the City Selection Committee February 22, 2013 1. ABAG - 1 Vacancy representing Cities, term expiring June 30, 2013 1. Mayor Pedro Gonzalez, City of South San Francisco 2. HEART - 4 Seats representing Cities, term expiring February 28, 2013 2. Mayor Pam Frisella, City of Foster City 3. Councilmember Cliff Lentz, City of Brisbane 3. LAFCo - 1 Vacancy representing Cities, term expiring the first Monday in May 2014 4, Councilmember Richard Garbarino, City of South San Francisco (2 letters) 5. Vice Mayor Nadia Holober, City of Millbrae 4. SMCTA - 1 Vacancy, term expiring December 31, 2013 *Northern Judicial Cities are eligible: Brisbane, Colma, Daly City, Pacifica, San Bruno, and South San Francisco 6. Vice Mayor David Canepa, City of Daly City 7. Councilmember Helen Fisicaro, Town of Colma The final City Selection Committee agenda packet will be going out Thursday, February 14th. OFFICE OF THE MAYOR February 7, 2013 Dear San Mateo County Mayors and Council Members CITY COUNCIL 2013 PEDRO GONZALEZ, MAYOR KARYL MATSUMOTO, MAYOR PRO TEM MARK ADDIEGO, COUNCILMEMBER RICHARD A. GARBARINO, COUNCILMEMBER PRADEEP GUPTA, COUNCILMEMBER BARRY M. NAGEL, CITY MANAGER Please accept this letter of interest for the seat on the ABAG Executive Board recently vacated by Sepi Richardson. I currently serve as the Alternate Representative to ABAG and take it upon myself to attend as many meetings as possible so that I keep abreast of ongoing activities. I would like to continue to be a part of the ABAG Committee by filling the vacant Executive Board seat and playing a role in its mission to serve the Cities of San Mateo County. In addition to my previous experience within ABAG, my other City Council experience includes: • South San Francisco Councilmember since 2000, Mayor in 2003, 2008 and 2013 • Liaison on Oyster Point Advisory and Community Preservation Task Force • Representative on the San Francisco Bay Area Water Emergency Transportation Authority (WETA) and San Mateo County Water Transit Advocates (WTA) • Subcommittee member of the Downtown Area Redevelopment and City Facilities Naming • Housing Endowment and Regional Trust (HEART) • Housing our People Effectively (HOPE) • Resource Management and Climate Protection Task Force (RMCP) I am aware of the important role ABAG plays in our region and look forward to supporting its ongoing efforts. Thank you for your consideration. Sincerely, Pedro Gonzalez, Mayor City of South San Francisco City Hall: 400 Grand Avenue • South San Francisco, CA 94080 • P.O.Box 711 • South San Francisco, CA 94083 Phone: 650.877.8500 • Fax: 650.8_1 J609 * E -mail: citycouncil @ssf.net b� ESTERO MUNICIPAL IMPROVEMENT DISTRICT 610 FOSTER CITY BOULEVARD FOSTER CITY, CA 94404 -2222 (650) 266-3200 FAX (650) 57434M February 4, 2013 TO: Mayors and City Councilmembers of San Mateo County RE: Board Position of the Housing Endowment and Regional Trust (HEART) Dear Mayors and Councilmembers: I am seeking election to the position of Board Member of HEART. I have served as an elected councilmember for the City of Foster City for 6 years and selected Mayor for 2 years. I currently serve on the HEART JPA. I am very active with the Samaritan House and Boards and Committees around the County and appreciate the confidence of my colleagues by supporting me in these endeavors. I ask my peers of the City Selection Committee to consider my appointment to the HEART Board. Sincerely, �y'��, Pam Frisella, Mayor City of Foster City -2- �wsaA�y� CALIFORNIA February 4, 2013 CITY OF BRISBANE 50 Park Place Brisbane, California 94005 -1310 (415) 508 -2100 Fax (415) 467 -4989 To: My colleagues on the San Mateo County City Councils Re: HEART Board Re- Appointment 1 am writing to express my interest in continuing to serve as a representative on the Housing Endowment and Regional Trust (HEART) Board. I was appointed in August, 2012 and have found serving on this board to be a very important and rewarding experience. My interest in affordable housing programs in San Mateo County is of particular concern at this time due to the recent elimination of redevelopment agencies and the effect this has bad on affordable housing projects. I have been on the Brisbane City Council for over three years. Prior to that, I served on the Brisbane Planning Commission for over eight years. I have been an active supporter and volunteer for Rebuilding Together Peninsula which also serves to help low income families with their housing needs. And, I am currently serving as the representative on the City's Low and Moderate Housing Sub - Committee. My interest in preserving and making affordable housing available to San Mateo County residents is why I ask for your consideration in continuing to serve on this Board. Thank you. Sincerely, < -�}iff LbrTt Councilmember, City of Brisbane L s ce Pravidt y cjParry Sereffus January 10, 2013 OFFICE OF THE CITY COUNCIL CITY COUNCIL 2013 PEDRO GONZALEZ, MAYOR KARYL MATSUMOTO, MAYOR PRO TEM MARKADDIEGO, COUNCILMEMBER RICHARD A. GARBARINO, COUNCILMEMBER PRADEEP GUPTA, PH.D, COUNCILMEMBER BARRY M. NAGEL, CITY MANAGER Dear Honorable Mayors and City Council Members, I am applying for the full time seat on the LAFCo Commission recently vacated by Sepi Richardson. Since 2011, 1 have served as Sepi's alternate to the Commission, attending several meetings in her stead. I have also voluntarily attended LAFCo meetings to learn and understand the land issues facing our cities. Additionally, I read the agenda items for each meeting, preparing to serve if needed. I believe that this experience has qualified me to effectively and efficiently serve as your representative to LAFCo. As a member of the Regional Airport Planning Committee (former chair), ABAG Executive Board, the Airport Round Table and Land Use Committee, as well as a member of South San Francisco's former Redevelopment Agency, I have gained the experience and knowledge to address the land use issues that arise throughout San Mateo County. San Mateo County's geography and demographics make land use issues challenging. We range from coastal areas to wooded areas and open spaces, each having unique land use requirements. I am confident that I will make fair and equitable decisions in meeting these challenges. I have served the community in many capacities, locally and regionally. You have had the confidence in me to appoint me to various boards and commissions, ABAG and CMEQ and President of the Peninsula Division of the League of California Cities to name a few. I have done my utmost to serve and represent the cities and San Mateo County to the best of my ability. I respectfully request your support and continued confidence by appointing me to this seat on LAFCo. Thank you for your consideration, and please do not hesitate to call me at 650.438.7309 should you have any questions. Respectfully submitted, Richard A. Garbarino, Councilmember City of South San Francisco City Hall: 400 Grand Avenue • South San Francisco, CA 94080 • P.O. Box 711 • South San Francisco, CA 94083 Phone: 650.877.850_ A _Fax: 650.829.6609 OFFICE OF THE CITY COUNCIL February 4, 2013 Dear Honorable Mayors and City Council Members, CITY COUNCIL 2013 PEDRO GONZALEZ, MAYOR KARYL MATSUMOTO, MAYOR PRO TEM MARK ADDIEGO, COUNCILMEMBER RICHARD A. GARBARINO, COUNCILMEMBEI PRADEEP GUPTA, PH.D, COUNCILMEMBER BARRY M. NAGEL, CITY MANAGER I am following up on my letter dated January 10, 2013 regarding my interest in the LAFCo seat. As this seat is now vacated by Sepi Richardson, I want to reiterate my continued interest. As stated in my previous letter, I have filled in for Sepi at several meetings. I have read the meeting minutes and studied the decisions of the Committee. I feel I am well prepared to serve as your representative on LAFCo. It is my hope to serve in this capacity and fulfill my promise to make decisions in the best interests of the Cities and County. I am confident that I will effectively and efficiently serve as your representative. Thank you for your careful consideration. Respectfully submitted, Richard A. Garbarino, Councilmember City of South San Francisco City Hall: 400 Grand Avenue • South San Francisco, CA 94080 • P.O.Box 711 • South San Francisco, CA 94083 Phone: 650.877.85C_ d_ Fax: 650.829.6609 NADIA V. HOLOBER "T' f City of Millbrae y :� s Vice Mayor 621 Magnolia Avenue, Millbrae, CA 94030 -' '•� Phone (650) 259 -2334 Fax (650) 259 -2415 ��L 6 r��<ld�OR s E -Mail: nholoberr&i.millbrae.cams February 4, 2013 Honorable Mayor and Councilmembers of the Cities of San Mateo County Dear Honorable Mayor and Councilmembers: 1 am writing to express my interest in serving on the Local Agency Formation Commission (LAFCo) in the position recently vacated by Brisbane Councilwoman Sepi Richardson, and to respectfully ask for your support. I previously served on the LAFCa Board, including a term as Chair and a term as Alternate member before that. I vacated the seat when I was "termed out" of office in Millbrae, and since have been re- elected to the City Council. I worked diligently as a member of LAFCo and am very excited about the opportunity to resume my service. During my previous tenure on the LAFCo Board, LAFCo began service reviews of local agencies and districts. We worked to assist local districts to better achieve open meeting, general transparency and responsible budgeting standards, and to provide an unbiased outside look toward achieving the districts' goals of improving efficiency and reducing costs. We considered requests from dozens of applicants wishing to annex to sewer and utility service districts, and considered spheres of influence and future boundaries of the various districts. As a land use and government law attorney, I find the work of LAFCo very interesting and immensely gratifying, as it coincides so closely with the work I do in my "day job." I have over a decade of experience on the Millbrae City Council and am a former Mayor of my City. I have had the privilege over the years of serving the Cities of our County in several capacities. 1 have served as Chair of both the Council of Cities and Libraries Joint Powers Authority, and have served on many of the County's various transportation and air quality committees. In addition, I have represented the Cities of our County as an Association of Bay Area Government Executive Board member and am currently an Alternate member. If elected again to the LAFCo Board, I will serve with the equal commitment that I have served previously on the LAFCo Board and in these other positions. I truly enjoy working with all of the Cities of San Mateo County and am asking for the opportunity to work toward advancing our Cities' mutual goals and interests in this very important position. I respectfully ask for your City's vote for my appointment to represent the Cities of San Mateo County as your LAFCo representative. The vote is schedule for the next City Selection Committee meeting on Friday, February 22, 2013. Thank you for your consideration. Yours very truly, Nadia V. Holober Vice Mayor, City of Millbrae Cell: (650) 740 -3125 CITY COUNCIL 64/V RAYMOND A. BUENAV.ENTURA dj++Y A'ta DAVE) J- CANEPA MICHAEL P. GUINGONA • CAROL d.. KrATT QI SAL TORRES 9 �. LjFOa PATRICIA CRY MANAGER MANAGER () OFFICE OF TIE CITY CO V1V CIL P ANNErTE1TWONA CITY OF DALY CITY CIN CLERIC - 90TII 'STREET ANTITIONY DALY CITY, CA 94013 -1893 TREASURER CITY TREASURER PHONE (650) 991 -8008 January 24, 2013 RE: Appointment to the San Mateo County Transportation Authority Honorable Mayor and Council Members, I am writing to request the consideration and support of your City Council for my appointment to the San Mateo County Transportation Authority (SMCTA). As Daly City's representative on the City/County Association of Governments (C /CAG) Board, I have had the opportunity to work collaboratively with your city and others in San Mateo County and feel that I would be in a unique position to capably serve your community as a member of the Transportation Authority Board. Since the inception of Measure A, and its re- authorization in 2004, the SMCTA has funded local community shuttle services, railroad/street grade separations, ferry service to South San Francisco and Redwood City, and pedestrian and bicycle projects. With so many riders choosing to use Caltrain, a modem, reliable, and convenient public transportation system is essential to the region. I will be a strong and vocal advocate for projects like these that benefit our constituents across San Mateo County. Keeping up with the demands of maintaining an aging infrastructure is a huge challenge for all cities in the county, one that requires consistent investment. If elected to the SMCTA, my priority is to ensure that the SMCTA remains financially viable and able to fund the most important projects identified in the county that will best serve our residents. will work collaboratively with other local elected officials, city staff, and the SMCTA staff to secure necessary funding, identify innovative and creative solutions, and to make the most with the resources available by advocating for policies that provide the broadest public benefit. While serving on the C /CAG Board, I have been fortunate to be part of a group of Council Members from cities across the county who represent diverse interests, but who are also committed to working collaboratively for the betterment of San Mateo County residents. Our collective policy initiatives in the areas of Traffic Congestion Management, Transportation for Clean Air, the Abandoned Vehicle Abatement Program, and Climate Protection have set a standard for other regional governments to emulate. In the same manner by which all twenty cities in C /CAG were able to build consensus around difficult policy questions and decisions, if elected to the SMCTA, I will forge collaborative working relations with other board members to ensure the continued success of the TA Board in handling the most urgent regional transportation issues we face. Thus, I respectfully request your positive consideration for appointment to the San Mateo County Transportation Authority. If you need to reach me, please contact meat (415) 513 -9410. With sincere appreciation, David J. Canepa Vice Mayor -6- January 9, 2013 TOWN OF COLMA 1198 El Camino Real Colma. California • 94014 -3212 Tel 650-997-8300 e Fax 650- 997 -8308 City Council Re: San Mateo County Transportation Authority (SMCTA) Joanne F. del Rosario Honorable Mayors and Designees. Mayor Joseph Silva I am writing to express my continued interest in being appointed to the North County Vice Mayor Transportation Authority seat. Thirteen months ago, i competed for this seat and only Diana Colvin lost by one vote to Sepi Richardson or Brisbane. Since she recently decided to step Council Member down from this seat due to retirement, I am asking for each of San Mateo County Helen Fisicaro City's reconsideration and vote for the North County Representative to the SMCTA. Council Member Raquel Gonzalez The Transportation Authority works to improve transit and relieve traffic congestion. I Council Member have spent a great deal of my efforts working on solutions to mitigate housing issues City Treasurer affecting the residents of our county. As there is a direct correlation between housing and transportation, I will bring additional expertise that will complement the seated Laura Walsh Authority Board Members, if appointed. City Officials Laura Allen Some of my current and previous appointments include: City Manager • Co-Chair — Housing and Community Development Commission of San Mateo County Jon Read Chief of Police a Chair — Colma Creek Flood Control District Committee Roger Peters • Member— Housing and Endowment and Regional Trust (HEART) Member Action City Attorney Committee (MAC) ' a Member — San Mateo County Sub - Regional Housing Needs Allocation (RHNA) Cyrus Kianpour Committee City Engineer . Chair — HIP Housing Board of Directors Brad Donohue • Member — Grand Boulevard Task Force Public Works Director z Chair — Council of Cities Michael Laughlin. AICP • Chair — North County Council of Cities City Planner Brian Dossey I understand the needs of the community and am able to work with the present-day Director of Recreation Services fiscal challenges that create added barriers to sometimes simple solutions. Effective leadership not only Includes the ability to problem -solve it requires that the decision Lori Bums made today will make for a better tomorrow. I am committed to making that happen. Human Resources Manager Thank you again for your consideration, your support, and your vote. Sincerely, Helen Fisicaro Counciimember -7- Staff ReDort DATE: February 13, 2013 TO: Honorable Mayor and City Council FROM: Jim Steele, Director of Finance SUBJECT: PROPOSITION IA IMPLICATIONS OF STATE DEPARTMENT OF FINANCE METHODOLOGY FOR ALLOCATING REDEVELOPMENT PROPERTY TAX TRUST FUND ( RPTTF) PROCEEDS RECOMMENDATION This staff report is being presented for the City Council's information at the request of Councilmember Addiego. This item was discussed by the Oversight Board to the former Redevelopment Agency in December. Council discussion and direction is requested for this issue. BACKGROUND/DISCUSSION In November 2004, the voters of California approved Proposition I (Prop IA), an amendment to the California constitution intended to restore predictability and stability to local government budgets. The measure, among other things, prohibits the Legislature from altering the share of property tax revenues that cities, county and special districts are entitled to under the ordinary pro rata share of property taxes allocated under the Revenue and Tax Code, commonly known as an AB8 share. Prop IA did allow such shifting of revenues only if the Legislature declared an emergency and approved the measure authorizing the tax shift with 2/3 approval in each house. Attached to this staff report is a detailed policy paper which the League of California Cities published. In that white paper, the League states that the method the Department of Finance (DOE) has advised County Auditor /Controllers to use in calculating payments to the taxing entities as a result of the dissolution of Redevelopment Agencies through the Redevelopment Property Tax Trust Fund ( RPTTF) process appears to be a violation of Prop IA. The Legislative Analyst's Office and the California State Association of County Auditors have both questioned the methodology recommended by the Department of Finance to the County Auditor /Controllers. The initial Redevelopment Agency (RDA) Dissolution legislation, AB 26, included language that was consistent with Proposition 1A. AB 26 required the County Auditor /Controllers to use the funds in the RPTTF first to pay the enforceable obligations of the former RDA, then the administrative cost allowance for the Successor Agency. Next, each Auditor /Controller was to apply each taxing entities' A138 percentage share to the funds remaining in the RPTTF. If a taxing entity had a pass through agreement with the former Redevelopment Agency that exceeded the amount under the AB8 Staff Report Re: Proposition IA Implications from State Department of Finance Interpretation of the Distribution of RPTTF Funds Page 2 of 3 calculation, the pass through payment was to be capped at the A138 share amount. Conversely, if a taxing entity had a pass through agreement that was less than its calculated AB8 share; additional funds were to be allocated to the taxing entity so that the revenues received equaled the A138 share. Note that under these two scenarios under AB 26, the total RPTTF distribution was correctly capped at the total A138 share, which makes sense logically, as doing so would hold all taxing entities harmless from any impact of the redevelopment transactions. The State Department of Finance, after the final AB 1484 clarifying legislation, has since taken the position that the above "hold harmless" distribution method only applies to the distribution of funds "such as the proceeds from asset sales ", and that pass through payments must be honored with no reductions from proceeds of former RDA property taxes. If pass through payments are honored without regard to the A138 share the result is that some taxing entities (with larger pass through agreements) are receiving more than their AB8 share, and other taxing entities are receiving less than their AB8 share. This appears to be a tax shift and /or an alteration of taxing entities' share of property taxes, which is contrary to Prop IA. Countywide, the total tax shift for the January through June 2012 timeframe was $5.4M in additional dollars going to the County with this amount being taken away from cities, schools and other taxing entities. In South San Francisco alone, the shift to the County is $2.3M and the major losers in this calculation are (rounded) the South San Francisco Unified School District (SSFUSD) ($1.416 million) the City of South San Francisco ($.6 million), the Community College District ($141,000), the Colma Creek Flood Control District ($57,000), and the County Office of Education ($43,000). (See attached analyses prepared by Don Fraser, see Attachment II). Staff notes that after the former Redevelopment Agency obligations are paid down in approximately 2018, this issue will go away as the regular AB8 Property Tax distribution factors will go into effect, and no more pass through payments will occur. In internal discussions and emails with the League of California Cities, it seems as though the Governor's Office is not only aware of the impacts of the RPTTF distributions statewide, but may have actually sanctioned the DOF interpretation. It is possible that the Governor intended this interpretation as a way to make more palatable to Counties the extra judicial and corrections responsibilities that the Governor shifted to Counties as part of his realignment package last year. For that reason, the League has intimated that they do not wish to get involved on this issue at this time. This topic was discussed at the December Redevelopment Oversight Board meeting. The Oversight Board believed this issue would be more appropriately dealt with by interested taxing entities, so this issue is being forwarded to the City Council for their consideration. Should the Council choose to move forward with this, staff would suggest that it be handled in some concerted way regionally with other cities and school districts in the County, and not as a stand -alone South San Francisco issue. One outcome might be that a regional group asks a State legislator to formally request a California Attorney General's opinion on this matter as a first step. Staff Report Re: Proposition lA Implications from State Department of Finance Interpretation of the Distribution of RPTTF Funds Page 3 of 3 FISCAL IMPACT The City of South San Francisco has been negatively impacted by the RPTTF distribution sanctioned by DOF by $612,000 in fiscal year 2011 -12 (representing a partial year's distribution), and by a larger amount in 2012 -13, representing a full year's distribution, continuing until the time that all former RDA obligations are extinguished in approximately September 2018. CONCLUSION Staff believes a good argument can be made that the DOF direction to County Auditor /Controllers on how to distribute RPTTF funds is in violation of Prop 1 provisions in the State Constitution. Staff also believes that the political realities may be such that legal action may be expensive, and risky given the resources at the State's disposal. However, the dollars at stake are significant over the next five and a half years, both for the City and the SSFUSD. If the City Council wishes to pursue this issue further, staff believes a less risky and less expensive option would be to work with a regional collective of interested cities /school districts to seek out a State legislator to request a State Attorney General's opinion on this matter, perhaps as a first step. Further discussion of this matter is therefore warranted. r By: Approved: 7 1 Jim S ele Barry M. Nagel FinarWe Director City Manager Attachments: I. Fiscal Consultant analysis of the impacts to San Mateo County taxing entities by Don Fraser II. Pre -AB 1484 white paper from League of California Cities on the proper way to allocate RPTTF funds IRS a12071i P1 South San Francisco Successor Agency IMPACT FROM NOT APPLYING THE SECTION 34188 "HAIRCUT" Entities with Gahs From Pass Through GENERAL COUNTY TAV WILLOW GARDENS PKS -PKWYS MNT Total Entities with Losses GENERAL COUNTY TAX May June Impact Impact Total 11850,134 475,827 2 325,961 588 0 588 1,850,722 475,827 21326,549 SM JR COLLEGE GEN PUR (99,906) -(41766T—(141;072) COLMA CR FLOOD CONTROL ZONE (6,825) (1,706) (81531) COLMA CR FLOOD CONT SUB ZN 3 (2,960) (710) (31670) COLMA CR FLOOD CONT SUB ZN 2 (32,387) (8,204) (402591) COLMA CR FLOOD CONT SUB ZN 1 (21801) (660) (31460) WILLOW GARDENS PKS -PKWYS MNT 0 (250) (250) BAY AREA AIR QUALITY MANAGEMENT (61515) (1,584) (8,099) COUNTY HARBOR DISTRICT (11,111) (21694) (13,805) RESOURCE CONSERVATION DISTRICT (151) (35) (187) COUNTY EDUCATION TAX (30,728) (12,081) (42,809) Total (11850,722) (475,827) (21326,549) Fraser Associates Residual Impact SSF 10/25/2012 (O O co N m O (fl O) 00 O) W O N O m v M N 0'M N r W V 1� Lo O W W 0 N M 0 M s C\l O rl OoOOOOnOoolo �w OO(O OOOdDOV0�0�0 MMnONOO (Nq Lo OIO co C4 m U7 O c V r N �w OO(O OOOdDOV0�0�0 MMnONOO 0 t 00(O OIO m m U7 O c V O N 0 O M (D NN.. 3 N m `n' V . v m N I �w V'0 NO�MM0 OO(O Ld MMnONOO 0 t 00(O OIO m U7 O r U O N (O O M 00 0 M N m r V C4 N 00 i n (O " v O L L co Iq 0 .M...N.. O o > U U v" N V a) N O p N F= v o m a � o o` r 0 V O �o o c m m a o m .M.i m .N.. w g N_ C C C 0 m mLU ((n(n N O N (O M N N N 0 O �� M M00 CO V V'0 NO�MM0 OO(O Ld MMnONOO 0 t 00(O OIO m U7 O r N O N (O O M 00 0 M N m r V C4 N 00 i n (O " v L L co Iq 0 .M...N.. o > V'0 NO�MM0 (D Ld W 0 t 00(O OIO 00 U7 U7 (O 00 Lo (O O M O) V r� N m 00 V C4 N 00 i n (O " O) L L V'0 NO�MM0 m 0 P2 Ld N�0'Tfr C Lo 1h r� C M (O " mU U' o > Q x U O p 0 m o m a o o` 0 d m o c m m a o m 3 m U g N_ C C C m mLU ((n(n m 0 P2 P3 l� LEAGUE OF 'CITIES 1400 K Street, Suite 400 • Sacramento, California 95814 Phone: 916.658.8200 Fax: 916.658.8240 www.cacities.org Administration of Passthrough Payments from the Redevelopment Property Tax Trust Fund under ABx1 26 GENERAL DISCLAIMER: This document represents an attempt to interpret the requirements of AB x1 26 as modified by the California Supreme Court in California Redevelopment Association v. Matosantos. This document does not constitute legal advice. Given the significant ambiguities, conflicts, and murkiness of AB x1 26, it is important to consult with legal counsel regarding any issues discussed in this document. The statements in this document reflect the consensus or recommendation of the subgroup that drafted this document in consultation with the members of the entire Working Group. No statement in this document should be attributed to any individual member of the subgroup or the Working Group. This document represents an analysis as of the date set forth in the footer below. This document will be updated as needed to reflect legislative changes and revised analyses. If you have questions or comments regarding this document, please direct them to Patrick Whitnell, General Counsel for the League of California Cities, at 12whitnell0cacities.org. The Post - Redevelopment Working Group ( "Working Group ") of the League of California Cities (the "League ") provides this Statement of Position (referred to herein as the "white paper" or "position paper ") to (1) explain the Working Group's position concerning the disbursements from the Redevelopment Property Tax Trust Fund ( "RPTTF ") to pay for statutory and contractual passthrough payments as set forth in ABx1 26, and (2) assert that all California cities must receive the full property tax allocation assigned to them as required by State constitutional and statutory law. The elimination of redevelopment has substantially reduced the revenues available to California cities for important projects designed to produce jobs, economic development, affordable housing, and valued infrastructure. While the revenue losses compromise the ability of cities to achieve these important goals, a portion of the lost revenue should be returned to cities in the form of increased property tax revenues. v. 1.0 (May 7, 2012) FE In this regard, the Working Group supports the distribution methodology from the RPTTF for passthrough payments under ABxl 26 that has been identified by both the Legislative Analyst Office ( "LAO ") in Unwinding Redevelopment,' and the California State Association of County Auditors ( "Auditor's Association ") through its Accounting Standards Committee, in Draft Uniform Guidelines for the Implementation of Assembly Bill No. 26.2 The LAO and Auditor's Association, along with the Working Group, read ABxl 26 so as to require property tax distributions for each taxing entity to equal the property tax share assigned to that entity under the ordinary pro -rata share of property tax revenues allocated under applicable provisions in the Revenue and Taxation Code, commonly referred to as an "AB 8" share, and referred to herein as the "AB 8 Tax Share Reading." Under the AB 8 Tax Share Reading, passthrough payments to taxing agencies are adjusted so the overall property taxes paid to each taxing agency matches the ratios set by law under AB 8 allocations. The Working Group supports the AB 8 Tax Share Reading because it achieves a result that not only complies with the plain language of ABxl 26, but also conforms to the requirements of Article XIII, Section 25.5(a)(3) of the California Constitution, added by Proposition 1A in 2004, which requires 2/3 approval by both houses of the Legislature to enact a law that reallocates ad valorem property tax revenues among local taxing entities. The LAO appears to agree that the constitutionally sound interpretation of ABxl 26 requires the implementation of the AB 8 Tax Share Reading. Nevertheless, it appears that the California Department of Finance ( "DOF ") takes a contrary and, in the Working Group's opinion, unsupported reading of ABxl 26 with respect to passthrough payment provisions. Specifically, DOF's contrary reading appears in Answer 4 to Additional Frequently Asked Questions 2-29-201Z posted on DOF's website ( "FAQ Reading "), which contends that passthrough payments are not subject to adjustment under Health and Safety Code section 34188.3 As more specifically explained in this white paper, and the reports from the LAO and Auditor's Association cited herein, the Working Group asserts that the FAQ Reading from DOF should be rejected because it misreads the plain language of ABxl 26, conflicts with the California Constitution, and is mathematically unworkable. I. THE AB 8 TAX SHARE READING FOLLOWS THE LANGUAGE OF ABx126 AND SATISFIES THE STATE CONSTITUTION 1 See, pages 19 and 20 of the LAO report. z See, pages 23 and 24 of the Auditor's Association report. 3 See DOF Website link: bttp://www.dof.ca.goy/assembly bills 2627 /documents /RDA New FAOs 2 -2 Exhibit$ ndf. v. 1.0 (May 7, 2012) P5 Pursuant to ABxl 26, the former tax increment of each dissolved redevelopment agency is deposited into the RPTTF. Distributions are made from the RPTTF based on the property tax share of each taxing entity (i.e., the AB 8 share), as described in the first sentence of Health and Safety Code section 34188:4 "[A]]1 distributions of property tax revenues ... to each taxing entity shall be in an amount proportionate to its share of property tax revenues in the tax rate area in that fiscal year...." (Emphasis added.) The AB 8 share payable to each taxing entity is taken from the net amount in the RPTTF after payment of enforceable obligations and the administrative allowance ( "Net RPTTF Balance "): "For distributions from the Redevelopment Property Tax Trust Fund, the share of each taxing entity shall be applied to the amount of property tax available in the Redevelopment Property Tax Trust Fund after deducting the amount of any distributions under paragraphs (2) 5 and (3) 6 of subdivision (a) of Section 34183." (Section 34188(a)(1) [emphasis added].) These quoted provisions describe a "Standard Distribution Rule" through which each taxing entity takes its AB 8 share of the Net RPTTF Balance. By referencing "each taxing entity" in these provisions, the Legislature signaled its intention that the provisions would apply equally to taxing entities with and without passthrough obligations. Furthermore, Section 34188(a)(2) describes how to implement the Standard Distribution Rule "for each taxing entity that receives passthrough payments." Paragraph (2) places a ceiling on the amount that is payable as a passthrough Pursuant to Section 34183(a)(1): "For each taxing entity that receives passthrough payments, that agency shall receive the amount of any passthrough payments identified under paragraph (1) of subdivision (a) of Section 34183, in an amount not to exceed the amount that it would receive pursuant to this section in the absence of a passthrough agreement." (Section 34188(a)(2) [emphasis added].) 4 Unless otherwise indicated, all statutory references are to the California Health and Safety Code. s Amounts payable toward enforceable obligations based on an approved Recognized Obligation Payment Schedule. 6 Amounts payable toward the administrative cost allowance. v. 1.0 (May 7, 2012) I While such taxing entities can continue to receive passthrough payments, the payment is capped according to the Standard Distribution Rule (i.e., the entity's AB 8 share of the Net RPTTF Balance). However, the entity will receive a supplemental payment from the RPTTF when the amount of its passthrough is less than the amount that would be payable under the Standard Distribution Rule: "However, to the extent that the passthrough payments received by the taxing entity are less than the amount that the taxing entity would receive pursuant to this section in the absence of a passthrough agreement, the taxing entity shall receive an additional payment that is equivalent to the difference between those amounts." (Section 34188(a)(2).) In this manner, Section 34188(a) (2) assures that taxing entities with passthroughs receive payments from the Net RPTTF Balance equal to their AB 8 share by augmenting the passthrough payments or, when needed, adjusting the payments downward. Moreover, the AB 8 share paid to each taxing entity (with or without a passthrough) should total 100% of the Net RPTTF Balance. Not only does AB 8 Tax Share Reading match the language in ABx1 26, this interpretation allows ABx1 26 to withstand constitutional scrutiny under Article XIII, Section 25.5(a) (3). As noted in the LAO report, ABx1 26 was adopted only by a simple majority from both houses of the Legislature. ABx1 26 did not receive a 2/3 majority from each house of the Legislature, which is required constitutionally for the State to reallocate property tax revenues in a manner that would alter their ordinary AB 8 share. As such, the AB 8 Tax Share Reading is the only means to constitutionally implement passthrough payment provisions in ABx1 26. It is in this regard that any priority given to passthrough payments provided for in Section 34183 — even if to recognize those situations in which a taxing entity may have pledged proceeds from passthrough payments to repay that taxing entity's indebtedness obligations — must yield to Section 34188 and the AB 8 Tax Share Reading. Article XIII, section 25.5(a) (3). It trumps any intent by the Legislature to preserve some sort of priority for passthrough payments in ABx1 26, and therefore mandates the AB 8 Tax Share Reading.? 7 The Working Group is aware that taxing entities may have issued debt that pledged as security for repayment of that debt passthrough payments that, had the Legislature not dissolved redevelopment agencies with the enactment of ABx1 26, would have been disbursed from the redevelopment agencies to the taxing entities to cover costs related to redevelopment in accordance with applicable statutory or contractual passthrough provisions. To the extent that application of Section 34188 would produce a reduction in the amount of passthrough payments such that insufficient funds would be available to meet debt service on this indebtedness, a holder 4 v. 1.0 (May 7, 2012) P7 II. DOF'S FAQ READING CONFLICTS WITH THE PLAIN LANGUAGE OF ABx1 26 AND WOULD PRODUCE UNCONSTITUTIONAL RESULTS The FAQ Reading, found in Additional Frequently. Asked Questions 2 -29 -2012, conflicts with the plain language of ABx1 26, violates Article XIII, Section 25.5(a)(3), and it is mathematically impossible to implement. As such, it should be rejected. According to the FAQ Reading, Section 34188(a)(2) does not cap the amount of property taxes payable to a taxing entity as a passthrough pursuant to Section 34183(a)(1). Rather, the DOF posits that Section 34188(a)(2) applies only to "the distribution of other money, such as the proceeds from asset sales." Yet, the introductory sentence of Section 34188 indicates that its rules apply to "all distributions of property tax revenues and other moneys pursuant to this part." (Part 1.85, added by ABx1 26, consists of Sections 34170 - 34191). In the Working Group's opinion, the FAQ Reading is wrong. By its terms, Section 34188 applies to "all distributions of property tax," covered by "this part," which, therefore, includes passthrough payments described in Section 34183(a)(1). Moreover, Section 34188(a)(2) caps the "amount of any passthrough payments" made to a taxing entity to" an amount not to exceed the amount it would receive pursuant to this section in the absence of a passthrough." The FAQ Reading appears to render meaningless the language in ABx1 26 concerning this distribution cap. Additionally, the FAQ Reading appears to advocate the distribution of property taxes comprised of former tax increment so that some taxing entities (those with passthrough payments) would receive distributions of property tax exceeding their AB 8 shares, while others (those without passthrough payments) would receive distributions falling below their AB 8 shares. If this situation were to result, then ABx1 26 violates Article XIII, Section 25.5(a)(3) of the California Constitution, because the Legislature would have reallocated the distribution of property taxes without obtaining the requisite 2/3 vote approval from each house of the Legislature. Finally, the FAQ Reading is mathematically unworkable. Section 34188(a)(1) provides that "each taxing entity shall" receive a distribution, based on its tax share, drawn from the "Redevelopment Property Tax Trust Fund after deducting the amount of any distributions under paragraphs (2) and (3) of subdivision (a) of Section 34183." The described deductions do not include passthrough payments that are governed by Section 34183(a)(1). Of course, it is impossible (as would occur under the FAQ Reading) to first remove a slice from the RPTTF "pie" of such debt may need to negotiate or seek a remedy as appropriate to obtain timely payment from the taxing entity that issued the debt. v. 1.0 (May 7, 2012) consisting of passthrough payments, and then to distribute the pie once again to "each taxing entity" as though the passthrough slice still remained in place. III. CONCLUSION For the reasons discussed above, the Working Group agrees with the LAO and Auditor's Association, and their respective reports cited in this white paper, that the AB 8 Tax Share Reading implements the plain language of ABxl 26, satisfies the California Constitution with respect to the passthrough provisions in ABx1 26, and uses a methodology that properly distributes property taxes from RPTTF to the taxing entities. esx: 6 v. 1.0 (May 7, 2012) M Hy J O c9LIP0 Staff Report DATE: February 13, 2013 TO: Honorable Mayor and City Council FROM: Krista Martinelli, City Clerk SUBJECT: Upcoming Board and Commission Interviews /Scheduling RECOMMENDATION It is recommended that Council consider the schedule for upcoming Board and Commission Interviews. BACKGROUND/DISCUSSION The City Clerk's Office has initiated recruitment for the 13 respective Board and Commission positions on the Planning Commission, Parking Place Commission, Personnel Board and Parks and Recreation Commission listed on the attached notice. In the process of setting a date for interviews, the question of length of interview time arose, given that Council recently interviewed many of the applicants during the Council interview process that took place on December 19, 2012 and December 22, 2012. CONCLUSION It is recommended that Council consider the positions recruited for in the attached notice, discuss the length of interview time and direct the City Clerk to schedule the interviews accordingly. Kri a new ' Barry M. Mme. Nagel City Clerk City Manager Attachment: Notice S 5o��x o H J O c'�LIFOR�ti� BOARD AND COMMISSIONS TERM EXPIRATIONS & VACANCIES NOTICE is hereby given of vacancies on the South San Francisco Parking Place Commission, Personnel Board, and the Planning Commission as follows: Parking Place Commission: Two (2) seats are vacant due to term limits. Personnel Board: Two (2) seats are vacant due to term limits and a previously unfilled vacancy respectively. Planning Commission: One (1) seat is vacant due to resignation. The City Council will fill the above identified vacancies upon consideration of applications filed with the Office of the City Clerk as set forth below. NOTICE is hereby given of the expiration of terms on the South San Francisco, Parking Place Commission, Parks and Recreation Commission, Personnel Board and Planning Commission as follows: Parks and Recreation Commission: Commissioner Gallagher's, Commissioner Holt's, Commissioner Nagales' and Commissioner Velez' respective terms expired on December 31, 2012. Personnel Board: Boardmember Harris' term expired on December 31, 2012. Planning Commission: Commissioner Martin's, Commissioner Ochsenhirt's and Commissioner Prouty's respective terms expired December 31, 2012. The above identified incumbents are eligible to file applications for reappointment. The City Council will consider incumbents' applications along with any others filed with the Office of the City Clerk as set forth below. AGENCY RESPONSIBILITIES & MEETING TIMES The Parking Place Commission meets the second Tuesday of the month at 5 p.m. at City Hall. Commissioners are appointed to a three (3) year term with a limit of appointment to four (4) consecutive terms. The Parking Place Commission acquires, administers, maintains, operates, manages and enforces the rules governing parking spaces and parking lots located within Parking District No. 1, which encompasses most of the downtown business district. It further exercises powers set forth in the Streets and Highway Code of the State of California. The Parks and Recreation Commission meets on the fourth Thursday of every month at 7:00 p.m. in the Municipal Services Building located at 33 Arroyo Drive in South San Francisco. Commissioners are appointed to a four (4) year term with a limit of appointment to three (3) consecutive terms. The Commission advises the Council on matters pertaining to public recreation, including parks and playgrounds. The Commission also assists in the planning of a complete recreation program and in the planning of a department budget. The Personnel Board meets quarterly on the third (3rd) Tuesday of January, April, July and October at 6:00 p.m., in the City Hall Conference Room. Commissioners are appointed to a four (4) year term with a limit of appointment to three (3) consecutive terms. The Personnel Board reviews and oversees issues relative to recruitment - related testing and to certifying lists of persons eligible for employment in the City. It also hears appeals submitted by employees in the competitive service for disciplinary action related to dismissal, demotion, salary reduction, grievance, or alleged violation of the personnel rules and certifies its findings and recommendations. The Planning Commission meets the first and third Thursdays of the month at 7:30 p.m. at the Municipal Service Building. Commissioners are appointed to a four (4) year term with a limit of appointment to three (3) consecutive terms. The purpose of the Planning Commission is to make recommendations as to the orderly, physical growth and development of the community in relation to land subdivision, planning and zoning. It makes recommendations in matters of zoning changes, variances, special use permits, parcel maps, subdivision maps and other related matters. REQUIREMENTS: To be considered for appointment, persons must be registered to vote in the City of South San Francisco. Applicants should also be motivated to serve the public and have sufficient time available to devote to day or evening meetings and the requisite preparation. Submission of an application pursuant to the process set forth below and appearance before the City Council for a public interview at a Special Meeting on a date to be determined. APPLICATION PROCEDURES Applications may be retrieved by the following methods: 1) Contact the Office of the City Clerk: Krista Martinelli South San Francisco City Clerk City Hall 400 Grand Avenue South San Francisco, CA 94080 Tel: (650) 877 -8518 Fax: (650) 829-6641 e -mail: krista.martinelliAbssfnet or 2) Download a copy of the application at: i www.ssf.net 3) Those who have submitted applications for the positions listed above within the past year need not reapply. If you are unsure of your submittal date, please check with the Clerk's Office. 4) Applicants interested in participating in South San Francisco's Citizen's Academy to learn more about the day -to -day operations of the City may contact Susan Kennedy at susan.kennedvCabssEnet or 650- 829 -6603. APPLICATIONS MUST BE RECEIVED IN THE OFFICE OF THE CITY CLERK BY TUESDAY, FEBRUARY 26.2013 at 5:00 P.M. F eb ,2013 C;D s y ii elli ty Clerk 22 "MINVA F4 3. No changes. 4. None. 5. SPECIAL MEETING MINUTES CITY COUNCIL CITY OF SOUTH SAN FRANCISCO P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, California 94083 CITY HALL LARGE CONFERENCE ROOM 400 GRAND AVENUE SOUTH SAN FRANCISCO, CA, 94080 TUESDAY, JANUARY 8, 2013 6:30 P.M. Call to Order. TIME: 6:35 PM Roll Call. PRESENT: Councilmembers Addiego, Garbarino and Gupta, Mayor Pro Tern Matsumoto and Mayor Gonzalez ABSENT: None Agenda Review. Public Comments — comments are limited to items on the Special Meeting Agenda. Study Session to consider a request from the South San Francisco Scavenger Company for a Franchise Agreement extension. Finance Director Steele presented the staff report and overview of why staff agrees with the 20 contract extension. Representatives from South San Francisco Scavenger Company ( "SSFSC ") would provide greater detail with their presentation. The contract options available were: (1) A 20 year extension with a rolling one -year renewal. (2) A 20 year extension. Staff recommends this option as it would provide preferable financing and lend to greater capital investments /improvements and the ability to address the changing environmental regulations like those seen by the Water Quality Control Plant ( "WQCP "). Staff felt the extension made sense as the SSFSC provides residents with an excellent service at rates that are an average of 5% lower than the surrounding 32 cities included in the tri- annual survey. Periodical contract extensions, for example, every three to five years, would be prudent. The review process would allow the SSFSC to update Council on their long term financial needs and allow Council to consider an extension greater than 20 years. (3) Consider the current contract, expiring in 2017 with a one -time 10 year extension. (4) Lending to SSFSC with rates lower than the bank might offer but higher than rate of return on investments. (5) Although staff does not recommend, Council has the option of allowing the agreement to expire and request bid proposals from a new provider. Councilman Addiego sought to clarify if the one year rolling extension would be done on the front end. Director Steele confirmed it would, but also noted the provision in the contract that allowed for cancellation at any time with cause. Mayor Gonzalez asked if option one was ideal. Director Steele responded yes, adding that it gave SSFSC the best footing for financing. Mayor Pro Tern Matsumoto wanted more information regarding option four, lending from the City to SSFSC. Director Steele stated the City could lend the money at a lower rate than the bank. Currently, the City earned less that 1 % on their investments, so there may be a number in between that would be agreeable to both parties. SSFSC President Doug Button, Controller Paul Formosa, staff members Ed Bertolli, Ron Fernazi, and Attorney Andrew Rose were present. Mr. Button went through power point presentation outlining the history, achievements and future goals of the SSFSC. Mr. Button highlighted the innovative programs implemented by the company, allowing them to not only meet current regulations, but also to stay steps ahead with achievements towards greater sustainability. While historically loans were secured based on good faith and history with the community, the 2008 financial crisis has changed the process greatly. Now, banks require greater capitol and solid contracts in order to provide assurance and lend at the best rates available. Uncertainty in extension possibilities could equal costly loans or prohibit lending entirely. Due to the long term contract, SSFSC has been able to invest into their facility and increase the recycling rates for this community, going from a 36% diversion rate in 1997 to 57% in 2011. Future projects include an Anaerobic Digestion Facility, which would compost food and yard waste and produce enough gas to fuel six (6) trucks. Other plans not far down the line included: a biogenic fueling station within the year, upgraded trucks and equipment within 3 to 5 years, and an upgrade of the material recovery facility, allowing the City to meet a 75% diversion rate. The current contract with the 10 year extension would only cover trucks being purchased within the next few years. While SSFSC was not opposed to staff's recommendation, they wished for Council to consider adding five years to the current tern and then a 20 year extension could be given with the rolling one -year extension. Mr. Button stated his belief that some projects would SPECIAL CITY COUNCIL MEETING JANUARY 8, 2013 MINUTES PAGE not be financeable with a lesser commitment. He added that longer terms encourage divergent methods, cost competitiveness, allow for SSFSC to invest in progress towards meeting Zero Waste Goals, allow for SSFSC to invest in progress and meet GHG Emissions Goals, and maintain the ability to keep SSFSC accountable for their services. Other benefits were that the City maintained the right to terminate the contract with cause, services would be improved, and the 5% reduction in rates that residents currently see would remain. Attorney Andrew Rose spoke in support of the contract extension featuring the one -year renewal. He spoke about the uniqueness of the Company and how there was only one other Anaerobic Digestion Facility in the state, located in San Jose. He added that after 2008, banks became very conservative and uncertain, and that bank volatility was still increasing. Thus, an annually renewable contract was the best way to secure financing. The length of franchise leaves time for adjustments when a company has an off year due to various circumstances. The problem with a 20 year term is that you are only encouraged to finance long life items at the beginning because otherwise you have a diminishing term. SSFSC was simply asking for the best type of contract. Councilmember Addiego asked if they got involved with a 1 year in front end, could it be stopped at any time. Mr. Rose responded that either party can do that with cause. If it is done today, then contract is 20 years from today. 1 year from today it would be extended another 20 years. Councilmember Addiego asked further, if several projects that are in line for the next 3 to 7 years are completed, and then there is nothing else in line, could the city terminate then. Mr. Rose answered in the affirmative and added that this encourages innovation. The best way to do this is with the annual renewal contract. Therefore, there is a big upside and not much of a downside. Councilmember Garbarino stated that over his 40 years of residence, he has seen how innovative the SSFSC has been; not only because of government demand but because of the company's own philosophy. He understood that technology was ever changing, and that a key factor to securing optimum financing was to increase the length of the agreement. Mr. Button added that not only does this contract encourage thinking outside of the box. He also stated there were generations of South San Francisco families invested in the company and the community, it was their desire to stay here and continue in this partnership. Mr. Rose opined that since California is highly regulated, by the time some terms are implemented, the contract may only have 18 years left. Mayor Pro Tem Matsumoto expressed her appreciation for SSFSC and their partnership. She asked for more information regarding the $2.5 million grant that she had heard of Mr. Button responded they had applied for and been awarded a California Energy Commission grant in the amount of $2.6million to be distributed on February 9. This money would be used to SPECIAL CITY COUNCIL MEETING JANUARY 8, 2013 MINUTES PAGE help build the anaerobic facility. Mayor Pro Tem. Matsumoto noted the grant awarded speaks to the SSFSC's credibility. In regards to the 75% diversion figure, she asked whether it is required by SSFSC or by the city. Mr. Button responded the 2020 deadline for the 75% diversion rate was quickly approaching. He clarified that once it was mandated, the City would bare the burden. Director White clarified that the mandate was really on the City but SSFSC can be the tool used to get there. Mayor Pro Tem. Matsumoto asked whether the Anaerobic Digester would only be used to refuel the trucks. Mr. Button stated the Anaerobic Digester was capable of processing 40 tons of organic waste. The amount of methane produced would depend on the quality of the organic blend. The expectation was to produce 65,000 gallons of diesel compressed natural gas ( "CNG ") per year, enough to service 6 or 7 trucks per day. Councilmember Addiego pointed out that cities are asking their residents to use their disposals to send waste to their WQCP's digesters. Mr. White added the WQCP process was more of a wet process whereas the SSFSC was a solid process. Mayor Pro Tern Matsumoto asked for a clarification on the Source Reduction and Recycling Element ( "SRRE ") franchise fees mentioned on page 2 of the staff report. Finance Director Steele clarified that currently there was nothing in the franchise agreements mentioned the $15,000 fee currently paid by SSFSC for recycling purposes. Though the origin of the fee was unknown, it has been used to fund the annual citywide garage sale, monitoring of the Oyster Point landfill and other sustainability items beneficial to the city. He clarified that it had been segregated in the accounting system and SSFSC agreed to memorialize this fee in this next agreement so that it is formally paid and understood. Councilmember. Gupta welcomed the team from SSFSC and spoke about his dealings with them as a member of the Planning Commission. Given his background in financing and investment planning for the utilities industry, he understood the importance of having a long term contract in order to gain optimum financing terms and reducing the perception of risk to the bank. While he was in favor of the preferred option, he wondered if the proposal could be strengthened by including the customers as beneficiaries. Mr. Rose stated that Councilmember Gupta was correct on the financing terms but added that it is important to understand that banks do not trust cities. He opined that with a 20 year annual renewable contract the banks would at best treat it as a 14 year contract. The benefits to the citizens are all the new facilities, the ability to comply with regulations and the fact that SSFSC SPECIAL CITY COUNCIL MEETING JANUARY 8, 2013 MINUTES PAGE is investing without raising the rates. To Councilmember Gupta's point, Councihnember Addiego wanted to explore potential benefits to the residents but did not know how this could affect the SSFSC's profit margin. It was his opinion that the formalization of the SRRE, the ongoing franchise fee of $40,000 to 50,000 per month and the fact that the company was family owned were all positives. He recognized what they were up against and wanted their survival. In addition, the opportunity to scrutinize the operations and the ability to add as an item to any future agenda gave the City incredible power. Mr. Button reiterated the 20 year term would make them more financeable and that anything lower than 20 years would serve as a detriment. The give was that residents would get extra service without an increase in rates; that is, from bi- weekly to weekly service, new and updated facilities, new trucks, new drivers and new containers. Mayor Gonzalez stated that when he began his time on Council approximately 12 years ago, he was astonished at the length of the contract. Since then, he has seen the innovation that has been used to comply with the demands of the state. In 2008, the crash of the economy caused him to question the contract again. Though he has seen positive additions to the services provided, some services have also been lost such as the neighborhood bins. He would like to see some of these things come back as a part of service. The 5% reduction in the rate to the residents is fine, but he hoped to see it increased to at least 10 %. City Manager Barry Nagel clarified that formal action will be brought at a later regular Council meeting and asked if there was consensus on an option. After a brief discussion, Council reached consensus for option 1. City Manager Nagel stated that this will be brought back as early as possible. 6. Discussion related to the Public Safety Impact Fee. Assistant City Manager presented the staff report responded to the questions raised during the last discussion. He detailed the projects currently listed that were in the pipeline and subject to fees (noted on page 1), those without permits issued yet but still subject to fee (page 2) and those projects that were pending approval, working through developmental review process and subject to fees. He noted that if all the approved projects were added together it would be approximately $26,000 in fees, minus the City projects. If Council wished to give those a pass, it would really be "no harm, no foul." Councilmember Addiego appreciated the work by staff and stated there was inherent fairness in Assistant Manager Van Duyn's last statement. He was supportive of the new method, which he characterized as leveling the playing field and thought the City could afford to walk away from a handful of dollars. SPECIAL CITY COUNCIL MEETING JANUARY 8, 2013 MINUTES PAGE Councilmember Gupta felt the greater focus was on trying to get more development and in turn gain revenue with the increased growth. He opined that he would rather be more competitive than add a few drops into the ocean and was agreeable to forgoing some of the portions. Council reached a consensus and agreed not to implement the public safety impact fee for the following projects: Gimball's Candy expansion, 160 Produce Avenue, 1309 Mission Road, Centennial Towers — North Tower, St. Vincent de Paul, 418 Linden, and Westborough Square Shopping Center. Adjournment. Being no fitrther business, Mayor Gonzalez adjourned the meeting at 8:21 p.m. Submitted: Anna M. Brown Deputy City Clerk City of South San Francisco SPECIAL CITY COUNCIL MEETING MINUTES Approved: Pedro Gonzalez Mayor City of South San Francisco JANUARY 8, 2013 PAGE MINUTES So��HS�p ; py CITY COUNCIL U CITY OF SOUTH SAN FRANCISCO c117FOR��A REGULAR MEETING MUNICIPAL SERVICES BUILDING COUNCIL CHAMBERS 33 ARROYO DRIVE SOUTH SAN FRANCISCO, CA WEDNESDAY, JANUARY 23, 2013 7:00 P.M. CALL TO ORDER: TIME: 7:00 P.M. ROLL CALL: PRESENT: Councilmembers Addiego, Garbarino and Gupta, Mayor Pro Tem Matsumoto and Mayor Gonzalez. ABSENT: None. PLEDGE OF ALLEGIANCE: Led by Mayor Gonzalez. AGENDA REVIEW City Manager Nagel recommended that Item No. 10 be heard before or after Items from Council, in consideration of the large number of people present to hear and/or speak on the Item. Council agreed to hear Item No. 10 before Items from Council. PUBLIC COMMENTS None. PRESENTATIONS • Presentation of Proclamation honoring the retirement of Badminton Coach, Dick Ng. Mayor Gonzalez and Mayor Pro Tern Matsumoto presented the Proclamation to Badminton Coach Dick Ng. Coach Ng thanked his wife and children. He declared that when he first carne into the badminton world, it was all about winning, but as he matured he realized that mentoring athletes was most important. He pushed his students to educate themselves. Coach Ng shared his immense pride for what the athletes he worked with had accomplished. • South San Francisco Relay for Life Presentation. South San Francisco resident Nanette Cole extended an invitation to City Council, residents and local organizations and businesses to participate in the American Cancer Society Relay for Life. The event would take place on May 18a' at South San Francisco High School. She described the event as a great way to get out with family for a good cause. The presentation was continued by resident Janice Umlin, a 15 -year cancer survivor. She shared that she deals with cancer patients every day, and the Relay means a lot to them. She invited residents to join the cause and become involved in Relay for Life. Mrs. Cole emphasized that Relay for Life is a community event and is a great way to build relationships for a good cause. PUBLIC HEARING 10. Waive reading, introduce and adopt an Interim Ordinance of the City of South San Francisco making findings and extending (1) a City -wide moratorium on the issuance of Use Permits, Building Permits, or any other applicable entitlement for large format retail or superstore uses and (2) a moratorium on the issuance of Use Permits, Building Permits, or any other applicable entitlement for grocery or food and beverage sales uses in the East of 101 Area; and Resolution No. 7 -2013 approving an amendment to the agreement with Ascent Environmental in an amount not to exceed $126,185 and amending the 2012/13 General Fund Operating Budget. Public Hearing opened: 7:20 p.m. Principal Planner Beaudin presented a Staff Report with a 2 part recommendation related to an extension of an Interim Ordinance that was adopted by the City Council on December 12, 2012. Since the adoption of the ordinance staff had studied all existing zoning rules related to the formation of large format retail use and food and beverage uses. Staff was recommending a 16- month review or moratorium period in order to complete and refine the zoning ordinance amendments and the necessary environmental review processes. The first recommendation was to adopt an ordinance which would extend the city -wide moratorium regarding the issuance of use permits, building permits and other applicable entitlements for large format retail uses and the moratorium on use permits, building permits and any other entitlements for food and beverage sales in the East of 101 Area. The second part of the recommendation was related to the Environmental Review contract. Planner Beaudin advised that Council initially authorized staff to use up to $50,000 to evaluate the potential impact that a superstore could have on the grocery market in the City of South San Francisco. At that time staff entered into two contracts. The first contract, with Seiffel Consulting for the amount of $25,000, was to complete an economic impact analysis report. The completed report was presented to City Council in November 2012. Seiffel concluded that there could be an economic impact of five (5) to nine (9) percent on the grocery market in South San Francisco. It noted that it had seen an impact as high as twenty percent in other areas. The second contract was with Ascent Environmental, for $25,000 to complete a notice of preparation and initial study. The Resolution attached to the staff report would essentially approve an amendment to the latter agreement in an amount not to exceed $126,185 so that all the necessary REGULAR CITY COUNCIL MEETING JANUARY 23, 2013 MINUTES PAGE environmental review could be completed for the project. Planner Beaudin also advised that in response to a letter from an interested party seeking to amend the proposed ordinance to permit superstores engaged in business -to- business transactions, staff did not recommend any changes. Councilman Gupta emphasized that Council was considering this issue in a generic sense and not targeting a specific franchise. He queried progress in the past 45 days as well a why staff recommended a 16 month moratorium considering that the environmental review would take 12 months. Planner Beaudin stated that since the adoption of the interim ordinance, the Division had reviewed all of the existing zoning rules and definitions and looked at the zoning map to see where grocery uses and large format retail uses are currently permitted. It then took that analysis and formulated possible options. The first option was to not allow grocery uses in the East of 101 Area. The second option was to restrict large format retail with grocery city -wide. On the environmental side, staff had been working with Ascent Environmental to finalize the scope of work for the required CEQUA review. The recommended 16 month duration was advised to permit staff to finalize the scope of work, permit the consultant to perform the environmental review and complete any required Planning Commission and Council actions on the issue. Councilman Garbarino noted that the Ascent proposal included two (2) in- person meetings over a 12 month period. He questioned whether this would be sufficient. Planner Beaudin advised that there would be numerous consultations with Ascent, located in Sacramento, including e- mails, conference calls and other phone calls. He believed that given all the communications that would take place, two in- person meetings would be sufficient. City Attorney Mattas added that the contract also obligates Ascent to be present at the public hearing on the matter. Councilman Addiego commented that he believed decorum at the last meeting on this subject was unacceptable. He noted that the value of what is accomplished in a democratic forum is diminished if respect is not shown to each side. He recognized that the disrespect was shown by only a few and was not reflective of the whole body, but noted those few cast a shadow over the proceedings. He hoped the public concurred with his comments. Mayor Pro Tem Matsumoto requested a clarification on the proposed finding that the establishment of superstore uses would present a current and immediate threat to public health, safety and welfare. Planner Beaudin stated that staff believes that any failure to properly review land use regulations related to this matter would result in community and health impacts ranging from social and economic to environmental. City Attorney Mattas stated that ultimately it is Council's finding that is adopted. Before hearing public comment, Mayor Gonzalez concurred with Councilman Addiego regarding the need for decorum in the proceedings. He advised each speaker would be given two (2) minutes. REGULAR CITY COUNCIL MEETING JANUARY 23, 2013 MINUTES PAGE Shelley Kessler stated that she would like to see the Council affirm the extension of the moratorium. She urged that enough time be extended to permit the best possible investigation of issues and that all related studies be completed. She reiterated her hope that Council would extend the moratorium. Edward AL -Ghani brought greetings from Stonegate and added that the community supports the findings that staff just spoke about and the Council at large. He supported extension of the moratorium for 12 -16 months. Steve Pitocchi thanked staff for working hard through the holidays and for the past 45 days to come back with a solid recommendation. He stated support for the extension of the moratorium to allow time for further study and categorically look at all impacts on community health and safety. He concluded by urging Council to vote to extend the moratorium. Tina Acree, business agent for AFSCME Local 829, supported the moratorium and requested an environmental impact study on the issue. She advocated an open discussion on the City's best interests moving forward. On behalf of the San Mateo Building Trades Council, Bill Nack conveyed support for staff's recommendation to extend the moratorium. He noted that if a superstore received land use entitlements before the City could study and revise its zoning ordinance, it would create conflicts among land uses and long term planning goals. He believed a 16 month moratorium extension was needed to allow staff and consultants to complete the review. David Franklin, a partner at Mckenna Long and Aldridge representing Costco Wholesale, stated he did not oppose the moratorium. He requested clarification as to what City Council meant by a moratorium on large format retail. He pointed out that the definition in the Municipal Code pertains to retail establishments that sell merchandise and bulk goods for individual consumption. He believed this definition did not apply to Costco Business Centers. This format differed in that goods are not sold for individual consumption, but rather for business use. Thus, he concluded, a Costco Business Center should not be precluded from entering the City during the 16 month moratorium. Jerry Reed, a longtime resident of South San Francisco, praised the City's staff and suggested that Council follow its recommendations. Shannon Weeks, the Warehouse Manager at the Costco Hayward Business Center, explained that the Center supplies businesses with food, beverage and supplies. Customers range from catering companies, restaurants and daycare centers to general service providers. The Center includes a walk -in format and is distinctly different than that of a Costco Retail Center. The Business Center includes delivery service as well. He maintained that the delivery service is in high demand on the Peninsula. A resident apologized for his intensity at the previous meeting on this subject. He advised he had visited the Costoo Business Center and believed it would be a win -win for the City. He concluded by saying that South San Francisco has a lot to offer beyond Genentech, and a Costco Business Center would provide good paying jobs. REGULAR CITY COUNCIL MEETING JANUARY 23, 2013 MINUTES PAGE Michelle Radcliffe, co -owner of the South San Francisco Grocery Outlet, stated that voting against the moratorium extension would be a direct contradiction to the economic development strategy set out in the General Plan. While the strategy seeks to attract new businesses, build on existing clusters of high technology and biotechnology and nurture startups in a new market segment, it also outlines measures to retain and expand existing business establishments. She opined that by allowing certain businesses into the City, small businesses would be destroyed causing vacancies. She stated that she would like to see businesses like hers co -exist with existing businesses in the City. Mary Russi, a resident and business owner in South San Francisco, spoke in support of the moratorium. She stated that the Councilmembers represent those who live, work and own businesses in the City. She invited Council to stand -up to big businesses and box stores and once again vote for the extension of the moratorium. Marie Tanagychi, an employee of the South San Francisco Grocery Outlet and resident of South San Francisco, advised that 2 weeks ago, their store was featured on a show called "Making it in America" on CNN. The story depicted what a store like the Grocery Outlet provides for the community. She urged Council to extend the moratorium. Public Hearing closed: 8:21 p.m. Motion- Councilman Garbarino/ Second Councilman Addiego: to waive reading, introduce and adopt an Interim Ordinance of the City of South San Francisco making findings and extending (1) a City -wide moratorium on the issuance of Use Permits, Building Permits, or any other applicable entitlement for large format retail or superstore uses and (2) a moratorium on the issuance of Use Permits, Building Permits, or any other applicable entitlement for grocery or food and beverage sales uses in the East of 101 Area. The Mayor Called for discussion before taking a vote on the above motion. Regarding Costco's Business Center, Mayor Pro Tem Matsumoto queried the percentage of walk -in business to delivery business in the Business Center format. Mr. Weeks responded that typically, walk -ins would be 60 percent, and delivery 40 percent. Deliveries would typically be made to grocery markets, convenience stores, cemeteries, and liquor stores. He stressed that the Business Center does not compete with local businesses for this market. Mayor Pro Tern. Matsumoto pointed out the revised information from staff noted that the environmental review was anticipated to take approximately 11 months, including the public comment period. She inquired as to whether to avoid potential vacancies, it made sense to extend the moratorium for 12 months as opposed to 16 months on this basis. City Attorney Mattas responded that staff recommended a 16 month time frame to permit potential Planning Commission and Council action after the EIR is completed. Councilman Addiego added that staff has been able to trim roughly 6.54 months from the maximum impact of 2 years. He asked whether the moratorium could be suspended if work were completed sooner. REGULAR CITY COUNCIL MEETING JANUARY 23, 2013 MINUTES PAGE City Attorney Mattas responded that the moratorium could terminate upon the effectiveness of the documents brought forward. Councilman Gupta saw the discussion as being based on immediate and long term outcomes. The immediate involved the interests of the Costco Business Center to be differentiated from large format stores, which could possibly have a different impact on transportation. He strongly encouraged staff to include these differences in the study and ultimate reports. He believed the current plan did not foresee differential impact based on this business type. He questioned whether the issue of economic impact by different types of businesses would be revisited beyond the prior Seiffel study. Principal Planner Beaudin clarified the plan was to apply the Economic Impact Report by Seiffel as a basis for the grocery discussion. The Costco Business Center model was new to the discussion since that study. If there were additional economic impact analysis that needed to be done on that basis, an environmental review would certainly look at that as part of the process. Councilman Gupta requested further study of the means by which anchor stores might economically improve an area. He believed that for the Council to make decisions on superstores there must be an understanding of the relative difference between an anchor store that is a superstore and a store in a shopping center. Councilman Addiego stated that Council had indeed been looking at the study in a more comprehensive way. He further observed that the Grocery Outlet and Westborough Shopping Center were both good examples of anchor stores reinvigorating an area. Mayor Pro Tem Matsumoto stated support for an in -depth review and asked whether the Ascent study would be specific to South San Francisco. Principal Planner Beaudin confirmed the study would be South San Francisco- specific. Councilman Addiego requested clarification as to how the study could be more in- depth. City Attorney Mattas stated he understood Councilman Gupta to be seeking additional analysis beyond that done by Seiffel to differentiate business center models from large format retail stores and also look in greater depth at short and long -term economic impacts. The Seiffel report looked at the immediate impact on the market. He believed Councilman Gupta requested that this go further to include a more long -term analysis in terms of job growth. Councilman Gupta so confirmed. Councilman Addiego cautioned that the study should not look at specific stores to avoid the impact of picking winners and/or losers in the process. Assistant City Manager Van Duyn suggested that Council move ahead with staff s recommendation. Staff would have an opportunity to discuss the components of a manageable study, including objectives and needs in the context of retail or commercial development objectives, with the Consultants and then bring that back to the Council. Mayor Gonzalez noted that the ordinance had been moved and seconded. REGULAR CITY COUNCIL MEETING JANUARY 23, 2013 MINUTES PAGE City Attorney Mattas clarified Council had two actions to take. Motion— Councilman Garbarino /Second— Councilman Addiego: to Waive reading, introduce and adopt an Interim Ordinance of the City of South San Francisco making findings and extending (1) a City -wide moratorium on the issuance of Use Permits, Building Permits, or any other applicable entitlement for large format retail or superstore uses and (2) a moratorium on the issuance of Use Permits, Building Permits, or any other applicable entitlement for grocery or food and beverage sales uses in the East of 101 Area. Unanimously approved by voice vote. Motion- Councilman Garbarino /Second- Councilman Addiego: to adopt Resolution No. 7 -2013. Unanimously approved by voice vote. Recess: 8:37 p.m. Meeting Resumed: 8:50 p.m. ITEMS FROM COUNCIL • Announcements. • Committee Reports. Councilmembers reported on attendance at community meetings and events, including a San Mateo Emergency Services Council Meeting, a League of California Cities Policy Committee Meeting, a HEART Meeting, an ABAG Meeting and a Sister Cities Meeting. Announcements were made regarding upcoming events including the Youth of the Year Awards by the local Boys and Girls Clubs and the Gun Buy -Back Event being sponsored by local representatives. Specific items for further action and/or consideration were set forth as follows: Councilman Addiego congratulated the honorees at the upcoming Boys and Girls Clubs Youth of the Year Awards, including, Brittany Bergo, Amanda Blanco, Jordan Novice, Carlos Bonilla, Julia Goodenall, Joey Gentiel, Angelica Morales, Desia Fuentes and Ian Polenveret. Councilman Garbarino announced that he was recently appointed as Vice Chair for the Regional Airport Planning Committee. Mayor Pro Tem Matsumoto announced that bus tokens would soon be available for purchase by school children and residents at the City's Finance Department. Councilman Addiego shared a concern by a resident of Paradise Valley regarding damage to trees in the Paradise Valley Pocket Park. He requested that Director of Parks and Recreation Ranals provide information on this subject. Director Ranals advised that a tree located along the park and belonging to the South San Francisco Unified School District was found to have been drilled. The hole included a sticky substance, however a chemical analysis was not able to be performed. These concerns had been forwarded to the School District. REGULAR CITY COUNCIL MEETING JANUARY 23, 2013 MINUTES PAGE CONSENT CALENDAR 1. Motion to approve the Minutes of the meetings of December 31, 2012, January 9, 2013 and January 16, 2013. 2. Motion confirming payment registers for January 23, 2013. 3. Motion to waive reading and adopt Ordinance 1463 -2013 amending the South San Francisco Municipal Code, Chapter 14.04, to include changes and additions as required by the California Regional Water Quality Control Board contained within the Municipal Regional Permit Regulations related to the discharge of storm water into the storm water collection system. 4. Motion to waive reading and adopt Ordinance 1464 -2013 amending the South San Francisco Municipal Code, Chapter 14.08, to add recent Federal Pretreatment requirements related to the discharge of Fats, Oils and Greases (FOG) and Dental Wastes (DW) in the sanitary sewer collection system. 5. Resolution 3 -2013 approving the change of administrator for the current Voluntary Employees Beneficiary Association (VEBA) Plan. 6. Resolution 4 -2013 approving Compensation Plan for the Executive Management Unit July 1, 2012 through June 30, 2014. Resolution 5 -2013 accepting funds from Genentech and amending the 2012 -2013 Capital Improvement Program list to include the Forbes Boulevard Bike Lane Improvements Project and appropriating a project budget of $6,000,000. 8. Resolution 6 -2013 executing a consulting services agreement with Wilsey Ham of Foster City, California for engineering services for the Forbes Boulevard Bike Lane Improvements Project in an amount not to exceed $135,416. Motion— Councilman Addiego /Second— Councilman Garbarino: to approve Consent Calendar Items Nos. 1 and 3 -8. Unanimously approved by voice vote. Item No. 2: Councilwoman Matsumoto noted the significant investment in Centennial Way and observing that maintenance costs are $7,600 /month. Motion— Councilwoman Matsumoto /Second— Councilman Addiego: to approve Consent Calendar Item No. 2. Unanimously approved by voice vote. LEGISLATIVE BUSINESS 9. Implementation of Downtown Quality of Life Improvement Measures and Amendment to Smoking Ordinance. a. Waive reading and introduce an Ordinance amending Chapter 8.50 of the South San Francisco Municipal Code Regarding Regulation of Smoking in Parks and Designated Public Areas. REGULAR CITY COUNCIL MEETING JANUARY 23, 2013 MINUTES PAGE Assistant City Attorney Rosenberg presented the staff report recommending implementation of Downtown Quality of Life Improvement Measures. He explained the several actions being proposed beginning with the recommendation to waive reading and introduce an Ordinance amending chapter 8.50 of the South San Francisco Municipal Code Regarding Regulation of Smoking in Parks and Designated Public Areas. The proposed ordinance would revise the code to be consistent with current state and federal law by prohibiting smoking in all city parks and zones defined as Parks and Recreation (PR) in the city's zoning map and in city-owned public places designated by the City Manager. Regarding potential video surveillance in the area, he noted two locations were proposed along the Starbucks Breezeway and the City Hall Annex picnic area with the ability to view and record. The financial impact would be $55,000 for the Starbucks Breezeway and $15,000 for the Annex picnic area. Regarding Stay Away Orders, the Police Department worked with the District Attorney's Office, which is working with the Probation Department to seek Stay Away Orders in the identified areas on a case -by -case basis going forward. More activities were also planned with the Downtown Partnership. Mayor Pro Tern Matsumoto expressed concern related to the cost of the surveillance program, stating that she had thought use of a mobile camera would be less expensive. She was comfortable putting this item on hold. Councilman Addiego opined in light of recent circumstances, it might be worth the $15,000 expense to adopt the program at the Annex picnic area. He then requested clarification on enforcement of the proposed smoking ordinance. Chief of Police Massoni advised that depending on the circumstances, a warning or citation would be issued. City Attorney Mattas stated that the initial fine would be in the amount of $100. Councilman Garbarino inquired as to the effectiveness of the surveillance program absent constant monitoring. Chief of Police Masson stated that cameras are a general deterrent. Additionally, the Officers assigned to Bike Patrol would periodically look at the footage and have the added benefit of reviewing it in response to an incident. Councilman Garbarino noted that businesses might share in the surveillance costs related to the Starbucks Breezeway. City Attorney Mattas stated that businesses could voluntarily choose to help with the cost or it could be implemented as part of the Business Improvement District, but consent would be required. REGULAR CITY COUNCIL MEETING JANUARY 23, 2013 MINUTES PAGE In response to Councilman Garbarino's request for more information regarding camera logistics near City Hall, IT Director Hollis responded that the existing network at the Annex building would be used. Councilman Garbarino stated that as a beginning, he supported the $15,000 expenditure for the Annex picnic area surveillance. Mayor Pro Tem Matsumoto queried whether Business Improvement Districts (BIDs) were voluntary. City Attorney Mattas responded that BIDs effectively operate as assessment districts, which are voluntary and require property owner consent. Motion- Mayor Pro Tem Matsumoto /Second- Councilman Garbarino- to waive reading and introduce an Ordinance amending Chapter 8.50 of the South San Francisco Municipal Code Regarding Regulation of Smoking in Parks and Designated Public Areas. Unanimously approved by voice vote. Motion- Councilman Garbarino /Second- Councilman Gupta- to proceed with the option of introducing cameras off of the Annex Building and the park area adjacent to the building. Unanimously approved by voice vote. COMMUNITY FORUM The City Council congratulated Mayor Pro Tem Matsumoto's mother on her upcoming 100th birthday. ADJOURNMENT Being no further business, Mayor Gonzalez adjourned the meeting at 9:50 pm. REGULAR CITY COUNCIL MEETING MINUTES Approved: Pedro Gonzalez Mayor, City of South San Francisco JANUARY 23, 2013 PAGE 10 SPECIAL MEETING MINUTES CITY COUNCIL ° OF THE C9LIF0R CITY OF SOUTH SAN FRANCISCO P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, California 94083 Meeting to be held at: MUNICIPAL SERVICES BUILDING COUNCIL CHAMBERS 33 ARROYO DRIVE SOUTH SAN FRANCISCO, CA WEDNESDAY, JANUARY 23, 2013 6:45 P.M. 1. Call to Order: 6:45 p.m. 2. Roll Call: Present: Councilmembers Addiego, Garbarino and Gupta, Mayor Pro Tem Matsumoto and Mayor Gonzalez. 3. Public Comments — comments are limited to items on the Special Meeting Agenda. 4. City Selection Committee Appointments. City Manager Nagel reminded Council that a decision with respect to the MTC seat had not been made at the last Council of Cities Meeting. Accordingly, the determination would be made at the February Council of Cities Meeting. Council was to provide direction to Mayor Gonzalez as to first round voting. Councilman Garbarino noted he believed Burlingame City Councilman, Hon. Jerry Deal had dropped out of the race for the MTC seat, but he could not so confirm. Mayor Gonzalez stated that at the previous meeting he had endorsed Millbrae Mayor, Hon. Gina Papan. Since then, he had learned that Mayor Papan would be termed out of her position on the Millbrae City Council at the end of the year. Mayor Pro Tern Matsumoto noted that at the last meeting she had stated support for Mayor Papan, because she believed she was well qualified. However, she was concerned regarding her status on the Millbrae City Council at the end of the year. Mayor Pro Tern Matsumoto noted that based upon MTC rules, Mayor Papan might retain her seat irrespective of her status as a local elected representative. She did not favor having an MTC representative that was not accountable to an electorate. As much as she believed in Mayor Papan's skills and abilities, she would support Redwood City Mayor, Hon. Alicia Aguirre for appointment to the position. Mayor Gonzalez stated support for Mayor Papan because he wanted North County representation. Councilman Addiego noted the advantages to North County representation and queried the Board's current membership. Mayor Pro Tern Matsumoto advised that she believed the City was fortunate in that one of its Supervisors, Adrienne Tissier was the Chair of the MTC. Councilman Addiego stated that Mayor Papan was uniquely suited to holding her own with representatives from the counties of Santa Clara and San Francisco and had strong abilities from what he had witnessed. He then noted that he was not as familiar with Mayor Aguirre's skill set and supported Mayor Papan. Councilman Gupta stated that based upon Mayor Pro Tern Matsumoto's comments, he would support Mayor Aguirre. Councilman Garbarino stated support for Mayor Aguirre. Mayor Gonzalez noted 3 -2 Council support for Mayor Aguirre in first -round voting for the MTC seat at the upcoming Council of Cities Meeting. Recess: 6:56 p.m. Meeting resumed: 9:52 p.m. 5. Closed Session: Public Employment (Pursuant to Government Code Section 54957) Position: City Manager. Time entered Closed Session: 9:52 p.m. Open Session resumed: 10:19 p.m. Report out of Closed Session: By a 5 -0 vote Council directed staff to send out an RFP for a Recruitment Finn to provide recruitment services for the position of City Manager. 6, Adjournment. Being no further business, Mayor Gonzalez adjourned the meeting at 10:19 p.m. Approved: Pedro Gonzalez Mayor, City of South San Francisco SPECIAL CITY COUNCIL MEETING JANUARY 23, 2013 MINUTES PAGE Listing of City Payments for Council Review I certify that the payments shown on this payment register are accurate and sufficient funds were available for payment.* DATED: 2/8/2013 F� FINANCE DIREC OR *Note: Items below do not include payroll related payments Checks: Date 01123/13 01/28113 01130/13 02/04/13 02/06/13 Electronic Payments: Date 01/18/13 Total Payments $ Amount 434,054.80 666,962.69 89,983.47 229,287.59 970,877.74 Amount To 4,000.00 Neopost 273957166.29 Description Citywide Postage Meter Replenishment 4 `o N N N IL Y U W S U U w U 0 Z Z O F a K U fn w W U O Z z Z 0 O Q W U 0 Z r M (O L) V N O N L6 N LDN N L) > a U N N W O N O r m U C 0 O LL O M 0 N LL Ur V C �`r V V V It m U c r o(D r m co w U m9 w w o ro o Na r r .J r r r 3 U N N m m m m E m m O m m m Q. m m m a) m m m w m a Y U W S U U w U 0 Z Z O F a K U fn w W U O Z z Z 0 O Q W U 0 Z Z D LL LU LU W < W U LL w U Z LL O Z CO W J 01 O O r N N r a (O L) V N N N L6 U V 7 L) U) N U W O N O r m V O O O LL LL LL r r M V V V V V V V It m m r r r r m co w o, w w w o ro r r r r r r r r r m m m m m m m m m m O m m m m m m m m m m m w O Ix Q O+ O O O Y N N N N N N N N N N N N N N N N N N N N N N_ N_ O N (L N M V U U r V N V V V V V N W V V 0 W W M V V V V V V N 0 0 0 ❑❑ V 0 V V V V V M M M V N V V V V V w r (D N N N N N M V M V V V V V MD O qt c0 N N N O O In m m V N N N �- F. n N Lo W M �fl m m N O m U U Q m W co r r r m r O � V co N N N O W N O N N cN0 0 0 �r- 'Oa' O O O MM Z D LL LU LU W < W U LL w U Z LL O Z CO W J 01 O O r N N if (D EL T Z O w w K W U 0 >(If Q m U U co co M O N ❑ Q Q= U U Z O J W W W m � � J 2 U U Z U O U) U N M N N ° 00 O W m M ° M O 6 W r V b CN N O V M ujU (j U Z Q 0 U W T a. 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N J O ig Zoo cxi a ¢ z0a J ?~ LIJ 1 W W 0 ¢ C7 W �, w j 1. a a o Ewa m J rn¢¢ cn CL CL 0 In C¢J>u~i 4 aO OQmm \ � LU LU )(7222 (§(([f[E[\\$ z ()j\(( jj ( ¥( (() w� \( \< k)i ( >> [ 3E »( [C) ui zzz§K cq l2gzzz®zzz »» > ) \_ )\ \ »200000000 P ° \� 0 \LL I-- U) \ }§§F —F —F— \j) ��0 QwZ b» » �:)aa33@@a000 }/f \ 0E;m \} § [§( / §( / § / /\\Z § '§R§@LU 2 »oaaj3j:: " ` $G \IL7o § 90-0>> *>R$»G} t2/ § »ofZ §e ƒgam »�F- F- j/ Aft \ §Ja_EL / / /§incomm § §2 M j ,a� /{ 2 ,,,� „ , , , / § z §§ § Q \■ z § §k r Lij M t § § , § ) �k k \ k(\\ LU \m U � °°=w x m < & & ■aoz §z \3 C� IL §j§} <z, 2 ®0~ mk � § °( °( /) J )2) /( 0 0) zz zwNe §o�Q {e ° ( ,j ��§ \> »3� X06 =o e± -a :e j, ) \> 0 Y IL 2 i y a w Z) ; I: I; § ( $ ƒ \ \ 2 \ / \ / m a / 3 \ � } DATE: February 13, 2013 TO: Honorable Mayor and City Council FROM: Jason Rosenberg, Assistant City Attorney SUBJECT: AN ORDINANCE AMENDING CHAPTER 8.50 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE REGARDING THE REGULATION OF SMOKING RECOMMENDATION It is recommended that the City Council waive reading and adopt an Ordinance amending Chapter 8.50 to the South San Francisco Municipal Code regarding the regulation of smoking. BACKGROUND /DISCUSSION The City Council previously waived reading and introduced the following Ordinance. The Ordinance is now ready for adoption. AN ORDINANCE AMENDING CHAPTER 8.50 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE REGARDING THE REGULATION OF SMOKING. (Introduced on 01/23/2012; Vote: 5 -0) - -...< i � ' °L, By: Approved, =7 }7�! Steven T. Nfittas iBarry M. Nagel City Attorney Attachment: Ordinance 2035379.1 City Manager ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 8.50 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE REGARDING THE REGULATION OF SMOKING WHEREAS, according to the Center for Disease Control, scientific studies have concluded that cigarette smoking causes chronic lung disease, coronary heart disease, stroke, cancer of the lungs, larynx, esophagus, mouth, and bladder, and contributes to cancer of the cervix, pancreas, and kidneys; and WHEREAS, the U.S. Surgeon General has concluded that there is no risk -free level of exposure to secondhand smoke and neither separating smokers from nonsmokers nor installing ventilation systems effectively eliminates secondhand smoke; and WHEREAS, the United States Environmental Protection Agency (EPA) has found secondhand smoke to be a risk to public health, and has classified secondhand smoke as a group A carcinogen, the most dangerous class of carcinogen; and WHEREAS, the California Air Resources Board has put secondhand smoke in the same category as the most toxic automotive and industrial air pollutants by categorizing it as a toxic air contaminant; and WHEREAS, more than 440,000 people die in the United States from tobacco - related diseases every year, making it the nation's leading cause of preventable death; and WHEREAS, exposure to secondhand smoke is the third leading cause of preventable death in this country, killing over 52,000 non - smokers each year, including 3,000 deaths from lung cancer; and WHEREAS, secondhand smoke exposure adversely affects fetal growth with elevated risk of low birth weight, and increased risk of Sudden Infant Death Syndrome (SIDS) in infants of mothers who smoke; and WHEREAS, secondhand smoke exposure causes as many as 300,000 children in the United States to suffer from lower respiratory tract infections, such as pneumonia and bronchitis, exacerbates childhood asthma, and increases the risk of acute chronic middle ear infection in children; and WHEREAS, with certain exceptions, California Labor Code Section 6404.5 prohibits smoking inside an enclosed place of employment; and WHEREAS, state law prohibits smoking in playgrounds and tot lots and within twenty feet of the main entrances and exits of public buildings while expressly authorizing local communities to enact additional restrictions; and WHEREAS,, California Health and Safety Code Sections 118910 and 104495(h), Labor Code Section 6404.5(1) and Government Code Section 7597 authorize a local entity to regulate or completely ban the smoking of tobacco; WHEREAS, the City of South San Francisco ( "City ") adopted Ordinance No. 1010 -1987 for the purpose of enacting Chapter 8.50, Regulation of Smoking ( "Regulation of Smoking Ordinance "); and WHEREAS, the City has since amended the Regulation of Smoking Ordinance to more effectively regulate smoking and protect public health within the City; and WHEREAS, the City desires to further amend the Regulation of Smoking Ordinance in order to further protect the health and welfare of its residents and visitors, as well as have the Regulation of Smoking Ordinance be consistent with state law. NOW THEREFORE, the City Council of the City of South San Francisco does ORDAIN as follows: SECTION 1. AMENDMENTS The City Council hereby amends the following Chapter 8.50 of the South San Francisco Municipal Code to read as follows: Sections and subsections that are not amended by this Ordinance are not included below, and shall remain in full force and effect. 8.50.010 Purpose and intent It is the intent of this chapter to provide individuals with a reasonable degree of protection from involuntary exposure to tobacco smoke by prohibiting smoking in certain specified areas. The compelling purpose and intent of this chapter includes, but is not limited to, generally promoting the health, safety, and welfare of all people in the community against the health hazards and harmful effects of the use of addictive tobacco products and the dangers of secondhand smoke. 8.50.020 Definitions. The following words and phrases, whenever used in this chapter, shall be construed as defined in this section: "Employee" means any person who is employed or retained as an independent contractor by any Employer. "Employer" means any person, partnership, corporation, association, nonprofit, City or other entity who employs or retains the service of one or more Employees. "Enclosed" means any covered or partially covered space having more than 50% of its perimeter area walled in or otherwise closed to the outside (e.g. a covered porch with more than two walls); or any space open to the sky having more than 75% of its perimeter area walled in or otherwise closed to the outside (e.g. a courtyard). 2 "General Public" includes shoppers, customers, patrons, patients, students, clients and other similar invitees of a for - profit or nonprofit entity. "Enclosed Common Area" means every Enclosed area of a Multi -Unit Residence where residents of more than one (1) Unit and /or their guests are entitled to enter or use, including, but not limited to, elevators, hallways, stairways, Lobbies, lounges, recreation rooms, exercise facilities, shared restrooms, shared cooking facilities, and shared laundry rooms. "Lobby" means the public common area of an establishment in which the establishment's guests and members of the public typically congregate and in which registration and other related transactions are conducted. "Multi -Unit Residence" means any property with two (2) or more Units. A Multi -Unit Residence does not include a single - family residence with an in -law or second unit, or a single, contiguous residence in which rent is shared by the residents. "Open to the Public" means available for use by or accessible to the General Public during the normal course of business conducted by either private or public entities. "Place of Employment" means any area under the legal or de facto control of an Employer that an Employee may have cause to enter in the normal course of operations, regardless of the hours of operation, including, for example, vehicles used in employment or for business purposes, taxis, public transit buses, ferries and trains, and warehouses. A private residence is not a place of employment, unless it is used as a child care or health care facility. "Public Place" means any place, public or private, open to the General Public regardless of any fee or age requirement, including, but not limited to, bars, restaurants, clubs, stores, stadiums, theaters, museums, libraries, galleries, bowling alleys, parks, sidewalks, benches, playgrounds, hospitals, health care facilities, gymnasiums, taxis, and buses. "Retail Tobacco Store" means a retail store utilized primarily for the sale of tobacco products and tobacco accessories and in which the sale of other products is merely incidental. "Smoke" or "Smoking" means and includes inhaling or exhaling upon, or burning or carrying any lighted smoking equipment for tobacco, or any other plant or product used for the personal habit commonly known as smoking.. -, and includes possessing a lighted pipe, lighted cigar, lighted hookah, or lighted cigarette of any kind, or the lighting of a pipe, cigar, hookah, or cigarette of any kind. "Transient Lodging Establishment" means a bed and breakfast, hostel, hotel, motel or other, similar short-term lodging establishment. "Unenclosed" means any area that is not an Enclosed area as defined in this chapter. "Unit" means an apartment, condominium, detached home, townhouse, room in a single room occupancy facility, room in a homeless shelter, mobile home, camper vehicle, tent or other personal dwelling space, even where lacking cooking facilities or private plumbing facilities. 8.50.030 Smoking Prohibited (a) Enclosed Places. Smoking shall be prohibited in the following Enclosed Places within the City except as otherwise permitted in Section 8.50.040, and except in such places in which Smoking is already prohibited by state or federal law, in which case those laws apply: (1) Places of Employment. Smoking is prohibited in all Enclosed Places of Employment, as defined in this Chapter and by California Labor Code Section 6404.5, as may be amended. (2) Enclosed Common Areas. Smoking is prohibited in all Enclosed Common Areas of Multi -Unit Residences. (3) City Buildings. Smoking is prohibited in all Enclosed areas of any building or facility owned and occupied or leased and occupied by the City. (4) City -Owned Enclosed Parking Structures. Smoking is prohibited in all City -owned Enclosed parking structures. (5) City Vehicles. Smoking is prohibited in all City - owned, leased and/or controlled vehicles. (b) Unenclosed Places. Smoking shall be prohibited in the following Unenclosed Places within the City except in such places in which Smoking is already prohibited by state or federal law, in which case those laws apply: (1) Parks and Recreation Areas. Smoking is prohibited in all Parks and Recreation Areas within the City, designated as Parks and Recreation (PR) on the South San Francisco Zoning Map. (2) Outside of City Buildings. Smoking is prohibited within twenty (20) feet of a main exit, entrance or operable window of any facility covered by Section 8.50.030 (a)(3). (3) City -Owned Parking Lots. Smoking is prohibited at all City -owned parking lots. (4) Designated Public Places. Smoking is prohibited in any open -air Public Places on City -owned property not otherwise covered by this section when designated by the City Manager. 8.50.040 Smoking permitted. (a) Unless otherwise affirmatively protected by state or federal law, Smoking is permitted in the following places within the City: (1) Retail Tobacco Stores. Smoking is permitted in Retail Tobacco Stores. (2) Transient Lodging Establishments. Smoking is permitted in up to sixty -five percent (65 %) of Transient Lodging Establishment guest rooms. Nothing in this section shall prohibit Transient Lodging Establishments from choosing to be one hundred percent (100 %) Smoke free. (3) Designated Lobby Areas. Smoking is permitted in areas of the Lobby in a Transient Lodging Establishment designated for Smoking by the establishment. An establishment may permit Smoking in a designated Lobby area that does not exceed twenty -five percent (25 %) of the total floor area of the Lobby or, if the total area of the Lobby is two thousand (2,000) square feet or less, that does not exceed fifty percent (50 %) of the total floor area of the Lobby, provided that the Smoking area of the Lobby is not used primarily for the sale and service of food or beverages. (4) Theatrical Performances. Smoking is permitted in theatrical performances if Smoking is an integral part of the story in the theatrical production. (5) Medical Research or Treatment Sites. Smoking is permitted in medical research or treatment sites if Smoking is integral to the research and treatment being conducted. (6) Employee Break Rooms. Smoking is permitted in Enclosed Employee break rooms designated by Employers for Smoking, provided that they meet all of the following criteria: (i) air from the room is exhausted directly to the outside by an exhaust fan; (ii) the Employer complies with applicable state and federal ventilation standards; (iii) the room is located in a non -work area; (iv) the employer does not store or maintain any item necessary or related to the performance of any Employee's duties in the Smoking break room such that non - Smoking Employees are required to enter or pass through the room in order to access said items, and (v) there are sufficient non - Smoking break rooms to accommodate non - Smokers. (b) Notwithstanding any other provisions of this section, any owner, operator, manager or other person who controls an establishment may declare that entire establishment, or designated sections thereof, as a non - Smoking establishment; provided however that the designation does not conflict with existing state or federal law. 8.50.050 Posting of signs. Posting of signs shall be the responsibility of the owner, operator, manager or other person having control of the place where Smoking is prohibited by this chapter. Except in facilities owned or leased by county, state, or federal governmental entities, "No Smoking" signs with letters of not less than one (1) inch in height or the international "No Smoking" symbol (consisting of a pictorial representation of a burning cigarette enclosed in a red circle with a red bar across it) shall be clearly, sufficiently and conspicuously posted in every room, building or other place where Smoking is regulated by this chapter, including but not limited to, all entrances, all restrooms, all elevators, and at least one (1) conspicuous place within an Unenclosed area where Smoking is prohibited. Signs of equivalent size and character reading "Smoking Permitted" may be posted where legally applicable. Alternative means of notification (individual place cards, film clips, etc.) may be employed, provided they are equivalent to the aforementioned signs in their effect. For purposes of this Chapter, the City Manager or designee shall be responsible for the posting of signs in regulated facilities owned or leased in part by the City. Notwithstanding this provision, the presence or absence of signs shall not be a defense to the violation of any other provision of this Chapter. 8.50.060 Unlawful acts. (a) It is unlawful for any person to Smoke in a place within the City where Smoking is prohibited by this chapter. (b) It is unlawful for any person who owns, manages or otherwise controls the use of any premises subject to the prohibition of this chapter to fail to post signs as required by this chapter. (c) No person, owner, manager, operator or employer of any establishment controlled by this chapter shall knowingly permit Smoking in an area which is under the legal or de facto control of that person, owner, manager, operator or Employer and in which Smoking is prohibited by this chapter, unless otherwise required by state or federal law. 8.50.070 Nondiscrimination. No person shall discharge, refuse to hire, or in any manner discriminate against any employee or applicant for employment because such employee or applicant exercises any rights afforded by this chapter. 8.50.080 Violations. (a) Any owner, manager, operator, employer or employee of any establishment regulated by this chapter shall have the right to inform persons violating this chapter of the appropriate provisions thereof. (b) Any violation of this chapter shall be and is hereby declared to be a public nuisance, and may be abated as such through appropriate civil proceedings brought by the City. (c) Any person violating any of the provisions of this chapter not superseded by state or federal law shall be guilty of an infraction. Upon conviction of an infraction, a person shall be subject to payment of a fine, not to exceed the limits set forth in California Government Code Section 36900. (d) Any violation of this chapter that is also a violation of state law may be subject to an enforcement action by the City as authorized by state law. SECTION 2. SEVERABILITY If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid or unconstitutional, the remainder of this Ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this Ordinance are severable. The City Council of the City of South San Francisco hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable. SECTION 3. 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 , 2013. Adopted as an Ordinance of the City of South San Francisco at a regular meeting of the City Council held the _ day of 2013 by the following vote: AYES: 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 , 2013. Pedro Gonzalez, Mayor 2035378.1 DATE: February 13, 2013 TO: Honorable Mayor and City Council FROM: Sharon Ranals, Director of Parks and Recreation SUBJECT: APPROVE BY MOTION ONE SCULPTURE, FLYING FISH, FOR THE LOAN ART PROGRAM AT THE ORANGE MEMORIAL PARK SCULPTURE GARDEN AS RECOMMENDED BY THE CULTURAL ARTS COMMISSION RECOMMENDATION: It is recommended that the City Council, by motion, approve a sculpture, Flying Fish, by Patricia Vader of Martinez, California, for the Loan Art Program at the Orange Memorial Park Sculpture Garden, as recommended by the Cultural Arts Commission, BACKGROUND /DISCUSSION: At their regular meeting on November 15, 2012, the Cultural Arts Commission voted unanimously to recommend installation of two pieces of loan art in the Sculpture Garden. They also selected one additional piece as an "alternate" in the event that for one of their selections was not approved, or could not be installed. Unfortunately artist Patricia Vader withdrew her piece, Sunflower, from consideration just prior to the City Council meeting. At the meeting, the Council approved both Electric Slide and the alternate piece Zodiac Totem 4, however expressed some reservations about installing two pieces by the same artist. The issue was referred back the Cultural Commission for further consideration. At their regular January meeting the Commission confirmed their selection of Electric Slide, and directed staff to proceed with preparing an agreement with the artist and coordinating installation of the piece. The Commission also voted to recommend an alternate piece by Patricia Vader, Flying Fish, in the place of Sunflower. The proposed location for Flying Fish is in the plant material across from the Bocce Ball Court front entrance, as shown on the attached map of the Sculpture Garden. The cost for the Public Works Department to prepare a base for the piece is approximately $850 to construct a new 2' diameter and 18" thick round concrete slab, including staff time and materials. Parks staff would clear the site and move irrigation lines to accommodate the new pad. Staff Report Subject: Loan Art Program Sculpture Date: February 13, 2013 Page 2 In her proposal, Patricia Vader provided the following information: Flying Fish: Wind -driven Kinetic Sculpture The flying fish is perched on a bicycle fork that allows it to both gyrate in weather vane mode and bob up and down looking for food. • Weight: 300 pounds • Stainless steel frame work, aluminum • To be installed on a 2' diameter by 18" high concrete pad with 3 Strong -Bolt anchor wedges through the sculpture base plate into the base • Height/Width/Depth: 12' x 6.5' x 6.5' • Estimated value: $7,500 Ms. Vader is a visual artist with a Master of Fine Arts in Sculpture, California College of the Arts, San Francisco; Ph.D. Mathematics and Natural Sciences, University of Amsterdam, The Netherlands. She has exhibited a number of public sculptures, including commissions and exhibits in San Francisco, San Rafael, Walnut Creek, Napa, Lafayette, and Orinda. Staff reviewed the sculpture recommended for installation and spoke with the artist about how the piece is constructed with regard to possible safety issues, and to ensure an understanding of the artist's obligations under this program. Staff feels the sculpture does not present a hazard to the public, or present any installation or maintenance issues that would cause us not to support the Commission's recommendation. Ms. Vader provided information from an engineer that the sculpture, pole, and mountings have been properly designed to support the piece. Under the terms of the agreement, the sculpture will be on loan to the City for two years, and the artist will receive a $1,500 stipend. The artist must commit to at least one year of displaying the sculpture, with the option to sell the piece during the second year of display. The City has the option of renewing the loan for a third year of exhibit, with the artist's agreement, and would pay the artist an additional $750 stipend if the loan is extended. The artist is responsible for the cost of shipping or transporting the piece to the installation location. It should also be noted that while the sculpture is on loan, the City is not responsible for theft, damage, or vandalism to her property. As with any other public location, liability for public injury associated with the sculptures installed at the Garden would be handled as a claim through the City Clerk's office, and processed accordingly depending upon the circumstances. Installation of the sculpture would be coordinated with the artist based on when the agreement can be executed, the piece can be delivered, and with the availability of City staff to prepare the pad and assist with installation. Ms. Vader has confirmed that Flying Fish is immediately available. It is anticipated that installation would occur in March or April of 2013. FUNDING: There are sufficient funds in the Commission's Art Fund to cover the costs of the $1,500 stipend Staff Report Subject: Loan Art Program Sculpture Date: February 13, 2013 Page 3 and the installation of the sculptures. Installation will be done in- house, with modest costs to be absorbed in the operating budget. Assistance to the artist, including the use of equipment to move and install the sculpture, would be provided in- house. CONCLUSION: If approved as recommended by the Cultural Arts Commission the sculpture Flying Fish will be exhibited for two years "on loan" in the Orange Memorial Park Sculpture Garden. By: w Sharon Ranals Director of Parks and Recreation Attachments: 1. Loan Art Program Agreement 2. Photographs of Flying Fish 3. Map of Sculpture Garden Approved:' Barry M. Nagel City Manager City of South San Francisco Orange Memorial Park Sculpture Garden Loan Art Program Agreement This Loan Art Program Agreement ( "Agreement "), made and entered into on [DATE], by and between the CITY OF SOUTH SAN FRANCISCO, a municipal corporation (hereinafter "CITY "), and [ARTIST] of [CITY, STATE] (hereinafter "ARTIST "). I. Purpose. ARTIST agrees to temporarily loan to CITY, and CITY agrees to arrant ARTIST, a temporary exhibition permit to display ARTIST'S sculpture entitled [SCULPTURE NAME] (hereinafter "SCULPTURE ") at a public location, (the Sculpture Garden in Orange Memorial Park, or other public location designated by the City), South San Francisco, California (hereinafter "SCULPTURE GARDEN, or PUBLIC LOCATION "). 2. Exhibition Site. The said referenced exhibition site is located in area [AREA NUMBER] of the SCULPTURE GARDEN, ( "Display Location "). 3, Term. A. The exhibition dates shall begin on the date of installation [START YEAR] and continue for two years following the date of installation [END YEAR] ( "Initial Term "). At the end of the Initial Term, the CITY and ARTIST may elect to extend the term of the Agreement and exhibition of SCULPTURE for an additional 12 months. Unless otherwise extended, the ARTIST shall remove SCULPTURE on or before the expiration of the Initial Term consistent with the provisions of Section 6 of this Agreement. The exact date for removal shall be arranged between CITY and ARTIST. B. If, after twelve (12) months of the Initial Term have elapsed, and ARTIST elects to sell SCULPTURE, the Initial Tenn will terminate upon the date of sale of the SCULPTURE by the ARTIST. Upon sale of the SCULPTURE, ARTIST shall remove the SCULPTURE consistent with the provisions of Section 6 of this Agreement. 4. Base. SCULPTURE shall be installed on abase (hereinafter "BASE") agreed to and designed by ARTIST and CITY. BASE will be constructed and installed by CITY following approval of SCULPTURE design by the City. 5. ARTIST Obligations. In addition to applicable provisions contained within this Agreement, the ARTIST shall be responsible for the following: A. SCULPTURE Plans. ARTIST must submit and receive approval of plans by City Engineer regarding the SCULPTURE design, Base and installation method. B. SCULPTURE Delivery. ARTIST, at its sole cost and expense, shall deliver the SCULPTURE to the Display Location at a date and time and in a manner coordinated with, and approved by the CITY. This includes, but is not limited to: packing, shipping, transportation and unloading of the SCULPTURE at the Display Location. C. Attendance During Installation. ARTIST must be present at the Display Location during all City installation and removal activities related to the SCULPTURE. Artist shall reimburse City for any costs incurred in the event the ARTIST fails to be present during any installation or removal activities. Only upon issuance of a written and signed waiver by the City, can this requirement be waived. D. SCULPTURE Removal. Following de- installation for any reason, ARTIST is responsible for removal of the SCULPTURE from the Display Location consistent with Section 7 of this Agreement. 6. Site Preparation, Installation and Removal. A. SCULPTURE Installation will not be performed until the preparation and construction of any BASE required from CITY is complete. CITY is responsible for preparing SCULPTURE site according to the instructions supplied by ARTIST and approved by CITY. B. Notwithstanding the foregoing, in the event CITY is unable to construct or is delayed in the constriction of BASE or preparation of SCULPTURE site due to budgetary constraints, inadequate available staffing, natural disaster or any other cause, ARTIST shall not have any right to bring action or make any claim against CITY as a result of such inability or delay of the display of SCULPTURE. C. Upon approval by City of all SCULPTURE design plans, City shall install SCULPTURE. During installation, the CITY reserves the right to make necessary revisions to the installation plans in order to ensure that the Base, Sculpture and Display Location are safe. CITY shall de- install SCULPTURE. D. ARTIST will be responsible for, and cover all expenses concerning the delivery of SCULPTURE to the site. Further, ARTIST will be responsible for, and shall cover all expenses concerning the removal of SCULPTURE from the Display Location following de- installation by the CITY. 7. Identification Plaque. CITY shall provide and install an identification plaque at the site of SCULPTURE to identify title, artist's name, year of creation, and construction material. Design of the plaque shall be at the full discretion of CITY. S. Maintenance. ARTIST shall maintain the SCULPTURE at ARTIST'S sole cost and expense during the Term of this Agreement. CITY shall maintain Base and SCULPTURE Display Location. but is not responsible for any costs or reimbursement related to ARTIST'S SCULPTURE maintenance costs. City shall notify the artist immediately should the SCULPTURE become damaged, defaced or altered in any material manner. In the event of defacing of or damage to SCULPTURE, ARTIST shall make such repairs as are necessary within 72 hours of receiving notice from CITY of damage. In the event repairs cannot be completed within that time, ARTIST shall provide CITY a written plan and timetable for the repairs within that time. If the nature of the damage renders SCULPTURE hazardous to the public and SCULPTURE is detennined not safe to remain in said location, SCULPTURE must be repaired to a condition not considered hazardous to the public within a 24 hour time window after ARTIST receives notification from CITY or SCULPTURE shall be de- installed. The determination of hazardous shall be within the sole discretion of the City. Failure to comply with this section shall be deemed grounds for termination of this Agreement. 9. Compensation. CITY will provide compensation to ARTIST for being chosen to exhibit SCULPTURE within the CITY of South San Francisco. CITY shall pay ARTIST one thousand five hundred dollars (S 1.500.00) for display of SCULPTURE for the Initial Term. ARTIST will also receive exposure in CITY brochures publicizing the public art within the CITY of South San .Francisco. If the CITY elects to extend the Initial Term pursuant to Section 3 of this Agreement, CITY shall pay ARTIST an additional seven hundred and fifty dollars ($750.00) for each 12 month Term extension. 10. Termination. ARTIST acknowledges that permission to exhibit the aforesaid SCULPTURE may be revoked at any time by CITY, with or without cause, and ARTIST further acknowledges that said SCULPTURE may be removed by CITY upon termination. If ARTIST does not reclaim the aforesaid SCULPTURE within (30) days of Notice of Termination, CITY or any of its agents, servants, officers or employees may dispose of said SCULPTURE as they see fit. For purposes of the foregoing sentence, it is further agreed that a written request to reclaim the aforesaid SCULPTURE executed by CITY and mailed to ARTIST by United States registered or certified mail, or other form of mail which offers proof of mailing and postage prepaid shall constitute "Notice of Termination ". 11. Insurance. If desired by ARTIST, ARTIST may secure provide property insurance on the SCULPTURE at ARTIST'S sole cost and expense. CITY will not provide reimbursement for property insurance. 12. Assumption of Risk/Waiver. CITY will not be held liable for any accident, theft. vandalism, or damage to SCULPTURE from any and all causes. ARTIST acknowledges that the display of SCULPTURE presents known and unanticipated risks that could result in physical injury, or damage to ARTIST or to ARTIST's property. ARTIST expressly assumes the risk of, and responsibility for any such injury, or damage which ARTIST or ARTIST's property may sustain arising out of or in any way connected with the installation and display of SCULPTURE, including injury or damage resulting from any acts or omissions, whether negligent or not, by or on behalf of the City of South San Francisco, its officials, officers, employees, agents or volunteers. 13. Indemnification. ARTIST shall indemnify, defend with counsel acceptable to CITY, and hold harmless CITY, its officers, officials, employees, agents and volunteers from and against any and all liability, loss, damage, claims, expenses and costs (including, without limitation, attorney's fees and costs and fees of litigation) (collectively, "Liability ") of every nature arising out of or in connection with ARTIST's obligations under this Agreement, including but not limited to design, shipping, construction, or maintenance of the SCULPTURE, except such Liability caused by the sole negligence or willful misconduct of CI'T'Y. 14. Photography, Publicity, Rights and Reproductions. While on exhibit, SCULPTURE may be photographed, filmed, or videotaped by the general public for personal use and CITY for promotional use. To that end, ARTIST hereby consents to the CITY's limited commercial use of the SCULPTURE and grants to the CITY and its assigns a revocable license for the proposes of making and selling two- dimensional reproductions of the SCULPTURE, provided that these rights are exercised in a tasteful and professional manner. 15. Applicable Laws and AttomeV s Fees. This Agreement shall be interpreted and enforced pursuant to California law. Any action to enforce or interpret this Agreement shall be brought in a court of competent jurisdiction in San Mateo County, California. Should any legal action be brought by a party for breach of this Agreement or to enforce any provision of this Agreement, the prevailing party shall be entitled reasonable attorney's fees, court costs, and other such costs as may be affixed by the Court. 16. Amendment. This Agreement constitutes the entire Agreement of parties and may only be amended by written Agreement signed by both parties. 17. Notice. Unless otherwise provided herein, all notices required hereunder shall be given by United States registered or certified mail, or other form of mail which offers proof of mailing, postage prepaid and addressed to the party at the address below: If to CITY: City of South San Francisco City Manager P.O. Box 711 South San Francisco, CA 94083 If to ARTIST: [NAME, OF ARTIST] [ADDRESS] [CITY, STATE ZIPCODE] [SIGNATURES ON THE, FOLLOWING PAGE] IN WITNESS WHEREOF, the City and Artist have executed this Agreement as of the date first above written. City Artist The CITY OF SOUTH SAN FRANCISCO, a municipal corporation Barry Nagel City Manager APPROVED AS TO FORM City Attorney 2019702.2 [NAME] -8- S i o � a v a C l7 w a � d � > O a 0 O .o � � C V J > v O V1 > L Y = 1a N V � w C QN d ZIAX 0 `w W Im c 0 to = a v+ M W W- q ¢ N L lL v d >'x O U a V I VD `o:)suueAJ ueS yjnoS N3aadJ 3unidims Ved IeIJOWfDW a6ueap �t y w � _O C O `r v _ o N O CL y O u W lJ ' i i I 4t 04 Is * L w� 0 c n 1p u 0 O L H v iL a c O` T a LL o � ry N o� �o O Z d d . m O O n` a Y l7 U1 v a Q)Y 0 c a Y > � V > _ � C CL C a o_ 00 v _ � Y 2 N O_ 0 a LL � a � � 2 O L kD C � N T � r O C tD � C Y LL mC _N Y C d y 7 X 0 m O LL l7 2 a; a a � a C l7 w a � d � > O a O .o � � C V J > O V1 > L Y = 1a N V � w a m � a d O � a rn O Y c 0 C QN d ZIAX 0 `w W Im c 0 to = a v+ W W mi ¢ m DATE: February 13, 2013 TO: Honorable Mayor and City Council FROM: Marty Van Duyn, Assistant City Manager SUBJECT: A RESOLUTION APPROVING AN EMERGENCY CONTRACT WITH A.J. UCCELLI & SON, INC., IN AN AMOUNT NOT TO EXCEED $150,000 RECOMMENDATION It is recommended that the City Council, by a four - fifths vote, adopt a resolution awarding an emergency construction contract with A.J. Uccelli & Son, Inc. in an amount not to exceed $150,000 for emergency replacement and /or repairs to gas and sewer lines at 310, 312, and 312A Miller Avenue and 313 A and B Tamarack Lane. BACKGROUND/DISCUSSION On Thursday, November 7, 2012, HCD staff was conducting inspections at the City -owned residential properties on Miller Avenue when they detected a strong gas odor from 312A Miller Avenue, which is currently vacant. Pacific Gas & Electric Company ( "PG & E ") was contacted immediately and arrived shortly thereafter to the property site. The unit was inspected and the gas shut off. PG & E determined that there was a gas leak under the unit but could not determine the exact location. HCD staff immediately contacted Southwood Plumbing to inspect the unit and diagnose the leak as staff considered this to be an emergency health and safety situation. The Southwood Plumbing technician did an initial inspection; however, Southwood Plumbing was unresponsive in providing a final inspection and estimate of work. The City then contacted A.J. Uccelli & Son ( "Uccelli ") to inspect and diagnose the leak. Uccelli started work immediately at 312A Miller Avenue and concluded that the source of the leak was coming from the gas line. Uccelli and Chief Building Official, Jim Kirkman, both concluded that the gas line to 312 and 312A Miller Avenue needed to be replaced immediately. To protect the City's property which is adjacent to City owned residential units, the gas line has been replaced at 312 and 312 A Miller Avenue and the gas meter was turned back on, on January 22, 2013. While working in the gas line trenches, Uccelli noticed that the sewer lines were deteriorating and/or broken and that the sewage line at 310 Miller Avenue was blocked to the street. Staff then requested that Uccelli inspect all the units for gas leaks and/or sewage problems. Uccelli inspected 311, 313 A and B Tamarack Lane, 310A Miller Avenue and the laundry room ( "Miller Properties "). The gas and sewer lines to 313 A and B Tamarack lane were also deteriorated and replaced. Replacement of the sewer lines at 310 Miller Avenue and 313 A and B Tamarack Lane were completed in January 2013. Uccelli began working on replacing the gas lines at 313 A and B Tamarack Lane at the end of January and work is proceeding to complete the replacement in February. Staff Report Subject: A RESOLUTION APPROVING AN EMERGENCY CONTRACT WITH A.J. UCCELLI & SON, INC., IN AN AMOUNT NOT TO EXCEED $150,000 Page 2 Finally, the on -site laundry room water heater is cracked, not functioning properly and being replaced. Uccelli and Jim Kirkman inspected the garages along Tamarack Lane and found dry rot on the shared wall with the laundry room. The repairs to the laundry room, including some dry rot, began at the end of January and will be completed in February. Upon a four -fifths vote of the City Council, the California Public Contract Code Sections 22168 and 22050 permit a public entity to forego competitive bidding when the public interest and necessity demands the immediate commencement of work and the expenditure of public money for such work to safeguard life, health and property. The gas and sewer conditions required immediate attention and competitive solicitation for bids would not have allowed repairs to be completed in a timely manner and potentially caused health and safety issues for the City's tenants and further damage to City property. FUNDING Funding for this contract will come from the City's CDBG Housing Rehabilitation Program. The CDBG regulations require that housing rehabilitation activities must serve low to moderate income households, which is defined as households with incomes at or below 80% of Area Median Income (AMI). The Miller Properties are rented to low- income households with incomes at or less than 80% AMI, therefore this project meets the CDBG requirements. The entire work to fix the problems at the Miller Properties is estimated to cost $150,000. Currently, the City has received one invoice from Uccelli for the initial work completed, including gas and sewer line replacements and water heater replacement, in the amount of $72,800 and the remaining work to be completed, which is currently underway, is estimated to cost approximately $75,000. CONCLUSION It is recommended that the City Council, by a four -fifths vote, adopt a resolution awarding an emergency construction contract with A.J. Uccelli & Son, hic. in an amount not to exceed $150,000 for emergency replacement and /or repairs to gas and sewer lines at 310, 312, and 312A Miller Avenue and 313 A and B Tamarack Lane. By: Marty Van Duyn Assistant City Mana Attachment: Resolution BMN:MVD:n£al Approved: L0 >r r3arry M. Nagel City Manager RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION APPROVING AN EMERGENCY CONTRACT WITH A.J. UCCELLI & SON, INC. IN AN AMOUNT NOT TO EXCEED $150,000. WHEREAS, on November 7, 2012 a gas leak was found at 312 and 312A Miller Avenue and City staff contacted A.J. Uccelli & Son, Inc. ( "Uccelli ") who was able to respond immediately and perform the immediate necessary repairs to remediate the issues; and WHEREAS, while the gas line trenches were open at 312 and 312A Miller, City further learned that the sewer lines were deteriorating and/or broken and needed to be replaced immediately at 310 Miller; and WHEREAS, the City then requested that Uccelli inspect all the units for gas leaks and /or sewage problems. Uccelli inspected 311, 313 A and B Tamarack Lane, 310A Miller and the laundry room. Uccelli determined that the gas and sewer lines to 313 A and B Tamarack lane were also deteriorated and also needed replacement; and WHEREAS, Uccelli also identified multiple problems with the on -site laundry room. The repairs include replacing the gas line, replacing the water heater and exhaust pipe, and remediating dry rot; and WHEREAS, Uccelli has completed the initially necessary repairs at 312 and 312A Miller, 310 Miller and 313 A & B Tamarack ( "Miller Properties ") and is in the process of completing the on -site laundry room repairs; and WHEREAS, funding for this contract will come from the City's CDBG Housing Rehabilitation Program; and FINDINGS WHEREAS, the City Council of the City of South San Francisco hereby finds as follows: A. Pursuant to California Public Contract Code Section 22168, the public interest and necessity demanded the immediate commencement of the above - described work at the Miller Properties offices and the expenditure of public money for such work to safeguard life, health and property; B. Pursuant to California Public Contract Code Section 22050, substantial evidence as set forth in the staff report prepared concerning this resolution, and as set forth in this resolution, establishes that the emergency conditions at the Miller Properties would not permit delay resulting from competitive solicitation for bids for the work staff ordered done at such properties as described above, and such work was necessary to respond to the emergency conditions at the Miller Properties; C. Competitive bidding of the emergency work ordered at the Miller Properties would have jeopardized the public health, safety and welfare, and risk further damage to public and private property, and result in the public incurring additional expense, including, but not limited to, additional expense due to delay and potential property loss, and therefore competitive bidding of such work would not have produced an advantage for the public; D. The emergency work ordered at the Miller Properties offices is statutorily exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to California Public Resources Code Section 15269, subparagraphs (b) and (c), because it involves specific actions necessary to prevent or mitigate an emergency; NOW, THEREFORE, the City Council of the City of South San Francisco does hereby resolve as follows: 1. The above recitals are true and correct and hereby declared to be findings of the City Council of the City of South San Francisco. $150,000. 2. Award of contracts for the emergency work ordered at the Miller Properties described above is exempt from California Public Contract Code competitive bidding requirements pursuant to California Public Contract Code Sections 20168 and 22050 and the established common -law doctrine articulated in the case of Graydon v. Pasadena Redevelopment,4gency (1980) 104 Cal.App. 3d 631. 3. Approves an emergency contract for the gas line and sewer line repairs with A.J. Uccelh & Son, Inc. in an amount not to exceed $150,000. 4. The City Manager or her designee are hereby authorized and directed to execute on behalf of the City contracts for the performance of the emergency work described above at contract prices substantially in accordance with the staff cost estimates and the vendor quotes specified above and on terms and conditions that are appropriate for such projects of general law cities, as approved by the City Attorney, and any such contracts executed prior to the adoption of this resolution are hereby ratified. 5. This resolution shall become effective immediately. I hereby certify that the foregoing Resolution was adopted by the City Council of the City of South San Francisco at a City Council meeting held on the 13'x' day of February, 2013 by the following vote: AYES: NOES: ABSTAIN ABSENT: ATTEST: 2041298.1 Clerk Staff Report DATE: February 13, 2013 TO: The Honorable Mayor and City Council FROM: Jim Steele, Director of Finance SUBJECT: LOAN AGREEMENT BETWEEN THE CITY OF SOUTH SAN FRANCISCO AND THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF SOUTH SAN FRANCISCO FOR PAYMENT OF TWO ENFORCEABLE OBLIGATIONS RECOMMENDATION It is recommended that the City Council approve the attached resolution which approves a loan agreement in the total amount of $8,652, between the City and the Successor Agency (SA) to pay for two enforceable obligations of the SA. BACKGROUND/DISCUSSION The SA and Oversight Board have approved several enforceable obligations which, due to the timing of the payments, did not coincide with the Recognized Obligations Payment Schedules (ROPS) for their payments. This latest loan agreement covers $8,652 to fund former Redevelopment enforceable obligations shown on ROPS I but incurred during ROPS II. The Successor Agency will also review this loan agreement tonight, and the Oversight Board is scheduled to review this February 14, 2013. The loan agreement is for the following items: Line on ROPS I Line on ROPS IV Project Name / Debt Obligation Payee Description/ Project Scope Amount Detail Remediation work expense shown on Train Station ROPS I with Imprvamts Ph TechAccutite /Wisley Contracted work -site expenses coming 28 21 1 fl002 Ham remediation $15380.00 due during ROPs II. Final roll correction cost shown on ROPS Local Tax I with expenses Compliance/Rptg. Muni Financial Contracted roll coming due during 56 44 Services Services correction work $7,272.00 ROPs II. $8,652.00 Total Staff Report Subject: Loan Agreement between the City of South San Francisco and the Successor Agency of the Former Redevelopment Agency of South San Francisco Page 2 FISCAL IMPACT The loan agreement totals $8,652 and funds had to be advanced from the City to the SA to pay these Successor Agency obligations. If the State Department of Finance (DOF) approves the loan agreement on the next - submitted ROPS (also on the SA agenda for this evening) as enforceable obligations of the SA, staff expects that the loan will be fully repaid by August 1, 2013. The funds were also requested to be retained by the SA through the Non - Housing Funds Due Diligence Review (DDR) process. CONCLUSION The attached loan agreement obligates the SA to pay the City back for funds the City had to advance to the SA to make ROPS payments that were expended in a different ROPS time period (ROPS II) than where they had been listed (ROPS 1). By: Jim Ste e Finance Director Attachments: Resolution Loan Agreement KR/JS/MVD:ed Approved: Marty Van Duyn Assistant City Manager and irector of Economic and Community Development RESOLUTION NO. RESOLUTION OF THE CITY OF SOUTH SAN FRANCISCO APPROVING A LOAN AGREEMENT IN THE AMOUNT OF $89652 WITH THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO TO ALLOW THE SUCCESSOR AGENCY TO MAKE PAYMENTS FOR TWO NON - HOUSING RECOGNIZED OBLIGATION PAYMENT EXPENSES SHOWN ON ROPS I BUT INCURRED DURING ROPS II WHEREAS, pursuant to Health and Safety Code Section 34177(1), before each six -month fiscal period, the Successor Agency to a dissolved Redevelopment Agency is required to adopt a draft Recognized Obligation Payment Schedule ( "ROPS ") that lists all of the obligations that are "enforceable obligations" within the meaning of Health and Safety Code Section 34177; and WHEREAS, each ROPS must be approved by the Oversight Board for the Successor Agency and by the State Department of Finance in order for payment of listed obligations to be made; and WHEREAS, the timing of payment of various items identified and approved as enforceable obligations on ROPS I did not coincide with the payment dates listed on that ROPS; and WHEREAS, timely payment of enforceable obligations of the Successor Agency was deemed essential and could not await approval of a ROPS submitted for the next six -month fiscal period; and WHEREAS, the Successor Agency had no other source of funding to make these payments for enforceable obligations on its own; and WHEREAS, the City therefore advanced, or is willing to advance, funds for the payment of said enforceable obligations; and WHEREAS, Health and Safety Code Section 34173(h) authorizes loans between the City and the Successor Agency for the purpose of funding enforceable obligations for which there are insufficient funds in the Real Property Tax Trust Fund; and WHEREAS, Health and Safety Code Section 34173(h) further provides that a new enforceable obligation shall be created for the repayment of each such loan, provided that the receipt and use of the loan funds is reflected on a ROPS approved by the Oversight Board for the Successor Agency and submitted to the State Department of Finance for its review and approval; and WHEREAS, pursuant to Health and Safety Code Section 34180(h) the Oversight Board may approve a request by the Successor Agency to enter into an agreement with the City; and WHEREAS, City and Successor Agency staff have negotiated a loan agreement covering these enforceable obligations for which there are insufficient funds available for timely payment by the Successor Agency; and WHEREAS, funds are available to be loaned by the City for such purpose, and the loan agreements do not violate the City's debt limit under the California Constitution. NOW, THEREFORE, the City Council of the City of South San Francisco does hereby resolve as follows: 1. The Recitals set forth above are true and correct, and are incorporated herein by reference. 2. The loan agreement, in the form attached hereto, is hereby approved, and the City Manager is hereby authorized to execute it on behalf of the City and to take such other and further action as necessary and appropriate to implement the intent of this Resolution. 3. The loan agreement, along with the supporting calculations and references to prior ROPS are attached to this Resolution and are hereby incorporated herein, is for $8,652 to fund former Redevelopment enforceable obligations shown on ROPS I but incurred during ROPS II. 4. The City Council consents to the inclusion of this loan agreement, with such supporting documentation and other information as it deems necessary and appropriate, on the next ROPS to be submitted to the Oversight Board and the State Department of Finance. PASSED AND ADOPTED this 13th day of February, 2013, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: City Clerk 2043571.1 Mayor Loan Agreement Support Line Line on on Project Name / Description/ ROPS ROPS I IV Debt Obligation Payee Project Scope Amount Detail Remediation work expense shown on Train Station ROPS I with expenses Imprvmnts Ph TechAccutite /Willey Contracted work -site coming due during 28 21 1( fI002) Ham remediation $1,380.00 ROPsII. Final roll correction Local Tax cost shown on ROPS I Compliance/Rptg. Muni Financial Contracted roll with expenses coming 56 44 Services Services correction work $7,272.00 due during ROPs II. $8,652.00 Total LOAN AGREEMENT BETWEEN THE CITY OF SOUTH SAN FRANCISCO AND THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO This Loan Agreement (Agreement) is entered into as of February 14, 2013 ( "Effective Date "), by and between the City of South San Francisco, a municipal corporation ( "City ") and the Successor Agency to the Redevelopment Agency of the City of South San Francisco, a public entity ( "Successor Agency "). City and the Successor Agency are hereinafter collectively referred to as the "Parties ". RECITALS WHEREAS, the Redevelopment Agency of the City of South San Francisco ("Redevelopment Agency ") was established under the provisions of the Community Redevelopment Law (California Health and Safety Code § 33000 et seq.) ( "CRL "); and WHEREAS, effective June 30, 2011, the Governor signed into law ABx1 26 which automatically suspended redevelopment activities, and on December 29, 2011, the California State Supreme Court upheld the provisions of ABxl 26, thereby dissolving all redevelopment agencies on February 1, 2012; and WHEREAS, ABxl 26 was modified by AB 1484, effective as of July 27, 2012, which together with ABx 126 is referred to herein as the "Dissolution Law"; and WHEREAS, as a result of the dissolution of the former Redevelopment Agency, the Successor Agency is now administering the daily operations of the former Redevelopment Agency; and WHEREAS, Health and Safety Code § 34171(d)(1)(E) provides that any legally binding and enforceable contract that is not otherwise void as violating the debt limit or public policy constitutes an enforceable obligation authorized for payment from the Real Property Tax Trust Fund ( "RPTTF ") established pursuant to the Dissolution Law; and WHEREAS, Health and Safety Code § 34171(d)(1)(F) provides that contracts or agreements necessary for the administration or operation of a successor agency constitute enforceable obligations authorized for payment from the RPTTF; and WHEREAS, enforceable obligations must be listed on a Recognized Obligation Payment Schedule ( "ROPS ") and approved for payment by a successor agency's oversight board and the California Department of Finance ( "DOF ") in order for funds to be received therefore; and WHEREAS, two enforceable obligations pursuant to Health and Safety Code §§ 14171(d)(1) (E) and 3417 1 (d)(1)(F) were listed on the ROPS for the period January -June 2012 ( "ROPS I ") as line items 28 and 56, in the total amount of Eight Thousand Six Hundred Fifty Two Dollars ($8,652.00) ( "Non- Housing Obligations "), but the work for these projects was not completed until ROPS II; and WHEREAS, accordingly, the City advanced funds for the payment of the Non- Housing Obligations upon the Successor Agency's receipt of invoices therefore; and El WHEREAS, at present there are insufficient funds in the RPTTF to permit repayment of the Non - Housing Obligations by the Successor Agency; and WHEREAS, Health and Safety Code § 34173(h) authorizes a loan between a city and the successor agency to the city's redevelopment agency for the purpose of funding enforceable obligations for which there are insufficient funds in the RPTTF; and WHEREAS, Health and Safety Code § 34173(h) further provides that a new enforceable obligation shall be created for the repayment of such a loan, provided that the receipt and use of the loan funds is reflected on a ROPS approved by the oversight board for the successor agency and submitted to the DOF for its review and approval; and WHEREAS, pursuant to Health and Safety Code § 34180(h), an oversight board may approve a request by a successor agency to enter into an agreement with a city; and WHEREAS, the City and Successor Agency wish to enter into a loan agreement in the principal amount of Eight Thousand Six Hundred Fifty Two Dollars ($8,652.00) for the purpose of enabling the Successor Agency to pay the Non - Housing Obligations; and WHEREAS, on February 13, 2013 the Successor Agency and the City each respectively approved the Loan and authorized the execution of this Agreement, pursuant to Resolution No. and Resolution No. respectively; and WHEREAS, on February , 2013, the Oversight Board for the Successor Agency approved the Successor Agency's request to enter into this Agreement, pursuant to Resolution No. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties to this Agreement agree as follows: ARTICLE 1 LOAN TERMS 1.1 Loan. (a) Loan Amount. City agrees to lend to Successor Agency, and Successor Agency agrees to borrow from and repay to City, a Loan in the principal amount of not to exceed Eight Thousand Six Hundred Fifty Two Dollars ($8,652.00). (b) Maturity Date. The total outstanding Loan principal is due and payable by August 1, 2013. 1.2 Prepayment. Successor Agency may prepay the Loan, in whole or in part, at any time, without penalty or other charge. 1.3 Payment. The outstanding principal of the Loan is due and payable on the Maturity Date, 1.4 Security for the Loan. As security for the repayment of the Loan, the Successor Agency hereby pledges certain Unrestricted Revenues (defined below) ( "Pledged Revenues ") that are received, accrued or held by the Successor Agency and are provided within or attributable to fiscal year 2012 -13, and the principal of the Loan constitutes a first lien and charge on the Pledged Revenues, and is payable from the first moneys received by the Successor Agency from the Pledged Revenues. The term "Unrestricted Revenues" means property taxes assessed and levied by San Mateo County on behalf of the Successor Agency allocated to the Successor Agency in accordance with the Dissolution Law, together with any other income, revenue, cash receipts and any other moneys of the Successor Agency lawfully available for repayment of the Loan. ARTICLE 2 DISBURSEMENT AND ACCOUNTING; USE OF FUNDS 2.1 Disbursement. Loan proceeds may be disbursed to the Successor Agency in accordance with this Agreement upon approval of drawdown requests executed by the City Finance Director. 2.2 Use of Loan Proceeds. Successor Agency may use proceeds of the Loan exclusively for meeting the Non - Housing Obligations obligation as described herein. ARTICLE 3 REPRESENTATIONS AND WARRANTIES 3.1 Authority. Successor Agency warrants that it has authority, and has completed (or will complete, as applicable) all proceedings and obtain all approvals necessary to execute, deliver, and perform under this Agreement and the transactions contemplated thereby. 3.2 Valid and Binding Obligations. Successor Agency warrants that, when duly executed by the Successor Agency, this Agreement shall constitute the legal, valid and binding obligations of Successor Agency enforceable in accordance with their respective terms. Successor Agency hereby waives any defense to the enforcement of the terms of this Agreement related to alleged invalidity of any provisions or conditions contained in this Agreement. 3.3 No Adverse Action. Successor Agency warrants that there is no action, suit or proceeding pending or threatened against it which might adversely affect the Successor Agency with respect to this Agreement. ARTICLE 4 SUCCESSOR AGENCY COVENANTS 4.1 Notification. Until the Loan is repaid in full, Successor Agency covenants that it will promptly notify City in writing of the occurrence of any event that might materially and adversely affect its ability to perform its obligations under this Agreement, or that constitutes, or with the giving of notice or passage of time or both would constitute, an Event of Default under this Agreement. 4.2 Legal Compliance. Successor Agency covenants that this Agreement does not violate the Constitutional debt limitation for municipal governments set forth in Article XVI, Section 18 of the California Constitution. ARTICLE 5 INDEMNITY REQUIREMENTS 5.1 Indemnity. Successor Agency and City shall each defend, hold harmless and indemnify the other, its officers, employees and agents from and against all claims, liability, cost, expenses, loss or damages of any nature whatsoever, including reasonable attorneys' fees, arising out of or in any way connected with its failure to perform its covenants and obligations under this Agreement and any of its operations or activities related thereto, excluding the willful misconduct or the gross negligence of the person or entity seeking to be defended, indemnified, or held harmless. 0 ARTICLE 6 DEFAULT AND RE] 6.1 Events of Default. Each of the following events will constitute an event of default ( "Event of Default ") under this Agreement: (a) Nonpayment. Successor Agency's failure to repay the Loan pursuant to Article 1 hereof. (b) Failure to Perform. Successor Agency's failure, neglect or refusal to perform any promise, agreement, covenant or obligation contained in this Agreement, after any applicable cure periods. 6.2 Declaring Default. Whenever any Event of Default has occurred, other than a failure to pay any sums due, City shall give written notice of default to Successor Agency. If the default is not cured within thirty (3 0) calendar days after the Date of Default (defined herein), or any extension approved in writing by City, City may enforce its rights and remedies under Section 6.3 below. Any default that has occurred shall be deemed to commence on the date that written notice of default is effective pursuant to Section 7.2 of this Agreement ( "Date of Default "). In the event of a default in the payment of any installment payment when due, Successor Agency shall have ten (10) calendar days from the payment due date to cure such default, whether or not City gives written notice. 6.3 Remedies. Upon the occurrence of any Event of Default, City, in addition to any other remedies provided herein or by law, shall have the right, at its option without any further demand or notice, to take one or any combination of the following remedial steps: (a) declare that outstanding balance of the Loan and all other sums owing to City under this Agreement immediately due and payable, and (b) take whatever other action at law or in equity which may appear necessary or desirable to collect the amounts then due and thereafter to become due hereunder or to enforce any other of its rights hereunder. 6.4 Default Interest. Commencing on the Date of Default and continuing through the date that all indebtedness and other amounts payable under this Agreement are paid in full, interest on the Loan will accrue on the outstanding balance, at the rate equal to LAIF plus one percent (1 %). 6.5 Disclaimer. If City elects to employ any of the remedies available to it in connection with any Event of Default, City will not be liable for: (1) the payment of any expenses incurred in connection with the exercise of any remedy available to City, and (2) the performance or nonperformance of any other obligations of Successor Agency. ARTICLE 7 NHSCELLANEOUS 7.1 Conflict of Interest Interest of Employees Agents Consultants Officers and Officials of City or Successor Agency. Except for approved eligible administrative or personnel costs, no employee, agent or consultant who is in a position to participate in a decision - making process or gain inside information with regard to such activities assisted under this Agreement, may obtain a personal or financial interest in or benefit from the activities assisted under this Agreement, or have an interest, direct or indirect, in any contract, subcontract or agreement with respect thereto, or in the proceeds there under either for him/herself or for those with whom s /he has family or business ties, during his/her tenure and for one year thereafter. 7.2 Notices. Any notice, request or consent required pursuant to this Agreement shall be deemed given when delivered personally or three (3) business days after being deposited in the U.S. mail, addressed as follows: If to Successor Agency: If to City: Successor Agency to the Redevelopment City of South San Francisco Agency of South San Francisco P.O. Box 711 P. O. Box 711 South San Francisco, CA 94083 South San Francisco, CA 94083 Attention: City Manager Attention: Assistant City Manager With copy to Oversight Board for the Successor Agency to the Redevelopment Agency of the City of South San Francisco or to such other addresses as the Parties may designate by notice as set forth above. 7.3 Successors and Assigns. All of the terms of this Agreement shall apply to and be binding upon, and inure to the benefit of, the successors and permitted assigns of City and Successor Agency, respectively. 7.4 Attorneys' Fees. If any action is instituted by either Party to enforce this Agreement or to collect any sums due hereunder or pursuant to this Agreement, the prevailing party in such action shall be entitled to recover its costs and reasonable attorneys' fees as awarded by the court in that action. 7.5 Severabilitv. If one or more provisions of this Agreement are found invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, the remaining provisions shall not in any way be affected, prejudiced, disturbed or impaired thereby, and all other provisions of this Agreement shall remain in full force and effect. 7.6 Amendments/Entire Agreement. City and Successor Agency reserve the right to amend this Agreement by mutual consent. It is mutually understood and agreed that no amendment, modification, alternation or variation of the terms of this Agreement shall be valid unless in writing and signed and acknowledged and approved by both parties. This Agreement constitutes the entire agreement of the Parties and no oral understandings or agreement not incorporated herein shall be binding on either Party. 7.7 Time. Time is of the essence in the performance of the terms and conditions of this Agreement. 7.8 Governing Law. The laws of the State of California govern this Agreement. 7.9 City's Rights and Consent. No forbearance, failure or delay by City in exercising any right, power, or remedy, nor any single or partial exercise of City or any right or remedy hereunder shall preclude the further exercise of such right, power or remedy. The consent of City to any act or omission by Successor Agency may not be construed as City consent to any other or subsequent act or omission or as a waiver of the requirement to obtain City consent in any other instance. All of City's rights, powers and remedies are cumulative and shall continue in full force and effect until specifically waived in writing by the City. 7.10 Duration/Survival. This Agreement continues in full force and effect until the Loan is repaid in full. 7.11 Headings. The headings within this Agreement are for the purpose of reference only and do not limit or otherwise affect any of the terms of this Agreement. 7.12 Counterparts, Facsimile Copies. This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which together constitute one and the same agreement. This Agreement is effective upon transmission by either Party to the other Party of a fully signed facsimile copy of the Agreement after the formal approval by the governing body of the Successor Agency and the City Council. In case of any conflict, the counterpart maintained by the City Council will be deemed to be determinative. IN WITNESS WHEREOF, City and the Successor Agency have executed this Agreement as of the date first above written. City of South San Francisco Successor Agency to the Redevelopment Agency of the City of South San Francisco By: Attest: Barry M. Nagel, City Manager Krista J. Martinelli, City Clerk Approved as to Form: Steven T. Mattas, City Attorney 2012595.1 By: Marty Van Duyn, Assistant City Manager Krista J. Martinelli, Secretary Steven T. Mattas, Agency Counsel DATE: February 13, 2013 TO: Honorable Mayor and City Council FROM: Marty Van Duyn, Assistant City Manager Michael Massoni, Police Chief SUBJECT: AN ORDINANCE AMENDING CHAPTER 6.72 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE TO CLARIFY THE VEHICLES FOR HIRE CERTIFICATE OF CONVENIENCE AND NECESSITY APPLICATION PROCESS. RECOMMENDATION It is recommended that the City Council waive reading and introduce an Ordinance amending Chapter 6.72 of the South San Francisco Municipal Code ( "Vehicle for Hire Ordinance ") in order to add regulations clarifying the certificate of convenience and necessity application process. BACKGROUND /DISCUSS ION The City of South San Francisco ( "City ") last amended its taxicab regulations in 2009, in order to comply with newly adopted state taxicab regulations. Those amendments allowed the City to increase enforcement measures such as fines for violations, require the City to test drivers for drugs and alcohol, require the City to investigate certain complaints and regulate taxicab advertisements. It is recommended that the City Council now amend Chapter 6.72 of the Municipal Code in order to clarify the application process. Certificate of Convenience & Necessity The application process fora Certificate of Convenience and Necessity (the Certificate) fora taxi cab operation in the City currently puts the onus on staff to complete the necessary research to prove the current cab company is not meeting the needs of the community. By ordinance, the investigation involves both police department and planning division staff. Police Department Investigation The police department focuses its investigation on the financial responsibility of the applicant, their experience operating a similar business, the character of the applicant, and criminal history — staff does not anticipate significant changes in the police department's role it the application investigation, although the applicant may be required to provide more information upfront, so the police department can verify, rather than do preliminary research. Staff Report Subject: Amendment of City's Taxicab Ordinance Page 2 Planning Division Investigation Planning division staff is responsible for determining whether the business conforms to the General Plan and applicable zoning, whether there is adequate demand for the service, the appropriateness of the level of public transportation and taxi cab service in the city, whether the existing agencies could furnish additional services if granted the right, and the impact an additional taxi cab service might have on traffic congestion and parking. The adequacy and appropriateness of the existing taxi cab service are time consuming to evaluate. In the past, planning division staff has spent substantial time surveying and /or conducting phone interviews with all hotels in the City and major institutions such as Genentech and Kaiser Permanente. Additionally, staff has reviewed dispatch logs from the existing taxi cab company, all without clear guidance as to the alleged shortfall in the existing service. The changes recommended in the attached Ordinance put the initial onus on the applicant to provide evidence that the existing taxicab operation is not meeting the needs of the community. The proposed revisions to the Ordinance include the specific submittal requirements for applicants, including the addition of a statement (and any relevant supporting documentation) demonstrating how the public convenience and necessity will be met by the issuance of the requested Certificate. An application would not be deemed complete and an investigation would not commence until all of the required information is submitted to the City. FUNDING No City funding is required if the City Council approves the recommendation. CONCLUSION Adoption of the proposed Ordinance will clarify the application process and ease the administrative burden on City staff. By: a t Approvel Michael Massoni Barry M. Na el Police Chief City Manager I By: (i Warty Van Duyn Assistant City Mana / ECD Director Attachment: Draft Ordinance ORDINANCE NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA AN ORDINANCE AMENDING CHAPTER 6.72 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE TO CLARIFY THE VEHICLES FOR HIRE CERTIFICATE OF CONVENIENCE AND NECESSITY APPLICATION PROCESS WHEREAS, Article XI, Section 7 of the California Constitution provides that a city or county may make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general laws; and WHEREAS, Vehicle Code Section 21100 authorizes cities to regulate the operation and licensing of vehicles for hire and the driver of passenger vehicles for hire in order protect the public health, safety and welfare; and WHEREAS, pursuant to such authorities, the City Council has adopted local regulations regarding the operation of vehicles for hire, which is contained within Chapter 6.72 of the South San Francisco Municipal Code; and WHEREAS, the City of South San Francisco ( "City ") has determined that it is in the public interest and welfare to amend the South San Francisco Municipal Code in order to clarify the burden of proof regarding applications for certificates of convenience and necessity for taxicab owners and drivers within the City. NOW THEREFORE, the City Council of the City of South San Francisco does hereby ordain as follows: SECTION 1. AMENDMENTS The City Council hereby amends the following sections of Chapter 6.72 of the South San Francisco Municipal Code to read as follows (with text in strikee indicating deletion and double underlined text indicating addition). Sections and subsections that are not amended by this Ordinance are not included below, and shall remain in full force and effect. 6.72.030 Certificate of convenience and necessity. (a) It is unlawful to operate any taxicab, bus, or rent car in the city unless the owner thereof applies for and obtains a certificate of convenience and necessity authorizing such activity (hereinafter "eCertificate "), which gCertificate shall be applied for, granted, and in effect, all in compliance with the provisions of this chapter and Title 20. 1 The burden of proof shall be upon the applicant to establish by clear and convincing evidence the existence of public convenience and necessity for the operation of the -t - taxicab or taxicabs specified in any Further, the establishment of any facts necessary application. to grant the Certificate shall also be the burden of the applicant to establish. (b)Ucc1 No #Certificate shall be issued until a standard, distinctive and uniform color scheme, name, monogram and/or insignia has been adopted by the applicant and approved by the city council. (e)Ud After the service for which a eCertificate is granted hereunder is discontinued, or if the owner sells or discontinues his, her or its business for a period of forty -five days or longer, the eCertificates granted hereunder shall be automatically cancelled and shall be reissued only in accordance with the provisions of this chapter. 6.72.040 Application for eCertificate. (a) The application for such eCertificate shall be in writing, on a form approved by that , duly certified under oath, and it, together with two copies thereof, shall be filed first with the police department for its investigation and report. The police department shall forward an advance copy to the planning division, and shall transmit the original to the city clerk, who shall file the same. (b) Each application shall include at a minimum, the following information: (1) A full identification of the applicant and all persons to be directly or indirectly interested in the business, if authorized; (2) The residence and business address and the citizenship of the applicant, including all members of any firm or partnership, or all officers and directors of any corporation applying; (3) The exact nature of the proposed business for which the eCertificate is requested, and the name under which it is to be operated; (4) Whether or not any similar eCertificate held by the applicant(s) has been revoked, and if so, the circumstances of such revocation; (5) The number of vehicles proposed to be operated; (6) The complete description of the vehicles proposed to be operated (including VIN) and the proposed operations; (7) Proof of ability to respond in damages as required by Section 6.72.090; (8) The color scheme and characteristic insignia to be used to designate the vehicles of the owner; (9) A receipt from the finance director which certifies that the applicant has paid the fees required by T=om this code, if any, and a nonrefundable processing fee as set forth in the master fee schedule for the city adopted by resolution of the council. The latter processing -2- fee shall be used solely to defray the costs of the police and planning departments' investigation and report required herein. (10) A statement (and any relevant supporting documentation) demonstrating how the public convenience and necessity will be met by issuance of the requested Certificate The statement should, at a minimum, include sufficient information to provide justification to those items that the City will investigate pursuant to Section 6.72.050. (c) An application will not be deemed complete until the police department has received an application comnlvjng with all requirements of this section. Once the police department has received a complete application, the police department will notify the applicant in writing that the application has been deemed complete and the subseaue_nt investigation will commence 6.72.050 Certificate— Application— Investigation. (a) Upon receipt of the complete application for a eCertificate, as required by Section 6.72.040(c) the planning division shall conduct an investigation into the following: (1) Whether or not the business for which application is made conforms in all respects to the requirements of the general plan and any applicable specific plan and Title 20 of this code; (2) The demand of the public for the services to be rendered by the applicant; (3) The adequacy of existing mass transportation and taxicab services in the city; (4) Whether existing agencies will furnish additional service if granted the right; (5) The effect such additional taxicab service may have upon traffic congestion and parking. A report of the results of the investigation shall be forwarded to the council within sixty days from the date of receipt of a complete application for consideration in deciding whether or not to issue a eCertificate. (b) Upon receipt of a copy of the complete application for a eCertificate, the chief of police or his/her designee shall investigate the following: (1) The financial responsibility of the applicant; (2) The experience of the applicant in operating businesses similar to the one for which application is made; (3) The character of the applicant and any person with a direct or indirect interest in the business. -3- (c) If the chief of police ascertains that the applicant or any person with a direct or indirect interest in the business has a criminal record, or has falsified the application, it shall be the duty of the chief of police to report such matters at the earliest possible date to the council with his or her recommendation regarding issuance or denial of the eCertificate. (d) The chief of police shall report to the council regarding the results of the investigation conducted pursuant to this section, within sixty days from the date of receipt of a complete application, and shall include in his or her report a recommendation to deny or approve the said Certificate and the specific reasons for that recommendation. Said report shall be considered by the council in reaching a decision to issue or not to issue a eCertificate. 6.72.060 Certificates— Application denial— Suspension, revocation — Number reduction. (a) The council shall approve, conditionally approve or deny owners' applications by resolution and shall deny any such application, if in its sole discretion, it determines any of the following: (1) The proposed operation will be undesirable or inadequate to the city's needs; (2) The public convenience and necessity do not require the proposed service; (3) The vehicle(s) proposed to be operated is /are inadequate or unsafe; (4) The applicant has been convicted of a felony or the violation of a narcotic law or of any penal law involving moral turpitude, or has had a similar eCertificate revoked in any city, county or state for just cause; (5) The proposed color scheme or characteristic insignia will tend to confuse the identification of the vehicles proposed to be operated with those of another owner operating in the city; (6) The owner is not in compliance with the provisions of Section 6.72.090 herein. (b) The council may, by resolution, and after ten days' written notice to an owner, suspend or revoke a eCertificate for any of the grounds for which it may deny an application and, in addition thereto, it may suspend or revoke any eCertificate for a violation of any of the provisions of this chapter, or for a failure to pay any fees or business license tax due or judgment for damages arising from the operation of the vehicles, or any of them, for which the certificate was issued. (c) The council may at any time, and after a public hearing, by resolution, determine that the number of eCertificates for taxicabs, buses or rent cars, should be reduced or increased and provide for such reduction or increase. 6.72.070 Issuance of certificate. M (a) Upon the council's approval or conditional approval of an owner's application for a eCertificate, the owner shall inform the chief planner of the location at which the business is proposed to be operated. If the chief planner determines that a use permit or other land use approval is required for the business to operate at said location, no eCertificate shall be issued unless and until such land use approvals have been obtained by the owner. (b) Prior to the issuance of a #Certificate, business license fees shall be paid in accordance with the applicable provisions of Chapters 6.04 through 6.16. 6.72.080 Additions and substitutions. (a) Any owner holding a eCertificate to operate one or more taxicabs, buses or rent cars as provided in this chapter, who desires to add to the number of such vehicles shall do so only upon obtaining from the council permission therefor, which shall be granted only upon application made and processed in the same manner as required in this chapter to obtain the original eCertificate. (b) Any owner holding a eCertificate to operate one or more taxicabs, buses or rent cars, as provided in this chapter, who desires to substitute a different vehicle for a vehicle operated under such eCertificate, may do so upon obtaining permission from the police chief, which permission shall not unreasonably be withheld. SECTION 2. SEVERABILITY If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid or unconstitutional, the remainder of this Ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this Ordinance are severable. The City Council of the City of South San Francisco hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable. SECTION 3. 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. -5- Introduced and adopted at a regular meeting of the City Council of the City of South San Francisco, held the day of , 2013. Adopted as an Ordinance of the City of South San Francisco at a regular meeting of the City Council held the day of 2013 by the following vote: AYES: 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 , 2013. Pedro Gonzalez, Mayor 1729840.3 -6- 0 Staff Rica DATE: February 13, 2012 ort TO: Honorable Mayor and City Council FROM: Steven T. Mattas, City Attorney SUBJECT: AN ORDINANCE AMENDING SOUTH SAN FRANCISCO MUNICIPAL CODE CHAPTER 2.78 TO PROVIDE FOR CITY MANAGER OVERSIGHT OF CONFERENCE CENTER EXECUTIVE DIRECTOR AND REMOVING CITY MANAGER AS EX- OFFICIO MEMBER OF CONFERENCE CENTER AUTHORITY BOARD OF DIRECTORS BACKGROUND/DISCUSSION At the January 22, 2013 meeting of the South San Francisco Conference Center Authority Board of Directors ("Authority'), the Authority approved a motion recommending that the City Council adopt the attached ordinance. The ordinance would implement an organizational change to the reporting structure of the Conference Center staff, authorizing the City Manager to have general oversight over the duties of the Conference Center Executive Director. The Executive Director would continue to report to the Authority and the Authority would continue to have authority to retain and dismiss the Executive Director. To implement the modified structure, revisions to Chapter 2.78 of the South San Francisco Municipal Code ( "SSFMC ") are required. Specifically, Section 2.78.101 would be modified to identify the oversight role of the City Manager. In addition, because of the City Manager's new oversight role, we recommend revision of Section 2.78.030 to remove the City Manager from the role of ex- officio member of the Authority. CONCLUSION Adoption of the proposed ordinance would modify the oversight structure of the Conference Center Authority; allowing the City Manager to oversee the duties of the Executive Director. By At Approved: Steven T. Mattas, City Attorney Barry M. Nagel City Manager Attachment: Ordinance ORDINANCE NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA AN ORDINANCE AMENDING CHAPTER 2.78 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE WHEREAS, the Chapter 2.78 of the South San Francisco Municipal Code ( "Municipal Code ") establishes the South San Francisco Conference Center Authority ( "Authority ") and sets forth rules and regulations for its structure and operation; and WHEREAS, the Authority recommends that the City Council adopt the proposed ordinance to allow oversight of its Executive Director by the City Manager. NOW THEREFORE, the City Council of the City of South San Francisco does hereby ordain as follows: SECTION 1. AMENDMENT The City Council hereby amends Chapter 2.78 of the South San Francisco Municipal Code to read as follows (with text in strikeout indicating deletion and double underlined text indicating addition). Sections that are not amended by this Ordinance are not included below, and shall remain in full force and effect. 2.78.030 Authority established — Members and appointment. (a) The South San Francisco Conference Center authority is created. (b) The authority shall consist of nine members who shall be referred to individually as "commissioners" and collectively as "the South San Francisco Conference Center commission." (c) The make -up of the commission shall be as follows: (1) Two councilmembers of the city; and (2) Two representatives from hotels located within the city limits of South San Francisco; and (3) Five representatives from either of the following categories: city residents eighteen years or older, or representatives of businesses located in South San Francisco; and -1- (5) (4) The executive director of the South San Francisco chamber of commerce, who shall serve as an ex- officio, non - voting member of the commission. (d) The mayor, with the confirmation of the city council, shall appoint the councilmembers. Non -hotel representatives of the conference center shall be appointed by the city council. The hotel representatives shall be recommended by the South San Francisco Hotel Group and appointed by the city council. 2.78. 101 Creation of position— Functions and duties of Conference Center director. (a) The position of Conference Center director is created. The director shall serve at the pleasure of the Conference Center commission. (b) The director shall be the administrative head and chief executive officer of the Conference Center and shall be responsible for the efficient administration of all affairs of the Conference Center. (c) In addition to the general powers as administrative head, and not as a limitation thereof, it shall be the duty of the Conference Center director and the director shall have the power to perform the following tasks, subject to the oversight by the City Manager; (1) Appoint, discipline and dismiss all employees of the Conference Center except legal counsel directly appointed by the commission; (2) Establish, organize and assign functions to such employees, divisions and offices as considered necessary or appropriate for the efficient operation of the Center; (3) Make rules and regulations as deemed necessary for the efficient management, operation, promotion, maintenance and administration of the Conference Center; (4) Attend all meetings of the Conference Center authority and all committee meetings unless otherwise excused by the appropriate authority; (5) Recommend the adoption of rules, regulations, measures and resolutions as deemed necessary and proper; (6) Keep the Conference Center commission advised of the financial condition and needs of the Conference Center; (7) Prepare and submit to the commission an annual budget for approval and recommendation to the city council and to be responsible for its administration after its adoption; (8) Prepare and recommend a salary plan to the Conference Center commission for all employees of the Conference Center; -2- (9) Negotiate and execute contracts on behalf of the Conference Center for materials, supplies and services included in the annual budget, or authorized by commission action; (10) Investigate all complaints in relation to all matters concerning the administration of the Conference Center; (I1) Exercise general supervision and oversee the day -to -day operations of the Conference Center; (12) Devote the entire time during customary working hours to the duties and interests of the Center; (13) Perform such other services and duties and exercise such other powers as are otherwise delegated by the commission. SECTION 2. SEVERABILITY If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid or unconstitutional, the remainder of this Ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this Ordinance are severable. The City Council of the City of South San Francisco hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable. SECTION 3. PUBLICATION AND EFFECTIVE DATE This Ordinance shall be published once, with the names of those City Councilmembers voting for or against it, in the San Mateo Times, a newspaper of general circulation in the City of South San Francisco, as required by law, and shall become effective thirty (30) days from and after its adoption. -3- Introduced at a regular meeting of the City Council of the City of South San Francisco, held the 13th day of February, 2013. Adopted as an Ordinance of the City of South San Francisco at a meeting of the City Council held the day of 2013 by the following vote: AYES: 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 , 2013. R-IAI*Wv -4- Pedro Gonzalez, Mayor 0 n y J O C.° Staff ReDort DATE: February 13, 2013 TO: Honorable Mayor and City Council FROM: Marty Van Duyn, Assistant City Manager SUBJECT: MUNICIPAL CODE AMENDMENTS (DISSOLUTION OF REDEVELOPMENT AGENCY) — PROPOSED AMENDMENTS TO SOUTH SAN FRANCISCO MUNICIPAL CODE MAKING REVISIONS RELATED TO THE ELIMINATION OF THE REDEVELOPMENT AGENCY (RDA) REFERENCES. RECOMMENDATION It is recommended that the City Council waive reading and introduce an Ordinance making revisions and clarifications to Chapters 2.18, 6.20, 8.54 and Title 20 ( "Zoning ") of the South San Francisco Municipal Code related to the elimination of the Redevelopment Agency. BACKGROUND Dissolution of Redevelopment Agencies In 2011, the State of California Legislature approved the dissolution of redevelopment agencies (RDAs) in the State. The RDAs were officially eliminated as of February 1, 2012. As a result of the dissolution of South San Francisco's RDA, amendments to various sections of the Municipal Code are required to omit the actions and authority of the former RDA and to reassign decision - making authority within the City. DISCUSSION Proposed Text Amendments The list below includes all of the Municipal Code chapters affected by the dissolution of South San Francisco's RDA. The draft ordinance attached to the staff report contains a complete double underline/ rt version highlighting all of the proposed changes. Two examples of the amendments are included in the staff report below for illustrative purposes — Chapter 2.18 ( "City Council — General Provisions "), and Chapter 20.440 ( "Planning Agency "). Chapter 2.18 "City Council — General Provisions" Chapter 6.20 "Newspaper Racks and Banks" Chapter 8.54 "Community Preservation" Chapter 20.210 "Bay West Cove Specific Plan District" Chapter 20.220 "Gateway Specific Plan District" Staff Report Subject: Municipal Code Amendments — RDA Dissolution Page 2 Chapter 20.390 "Bonus Residential Density" Chapter 20.440 "Planning Agency" Chapter 20.450 "Common Procedures" Chapter 20.530 "Specific Plans and Plan Amendments" Chapter 20.540 "Amendments to General Plan" Chapter 20.550 "Amendments to Zoning Ordinance and Map" Chapter 20.630 "Terms and Definitions" In total, 12 chapters require amendments, three of which are not related to Title 20 ( "Zoning "). The three non - zoning chapters — Chapter 2.18 ( "City Council — General Provisions "), Chapter 6.20 ( "Newspaper Racks and Banks "), and Chapter 8.54 ( "Community Preservation ") — required very straightforward amendments to simply remove references to the "Redevelopment Agency" or the "South San Francisco Redevelopment Agency ". In order to remove RDA references from the Zoning Ordinance and transfer the former -RDA's decision - making authority, the Planning Commission is recommending amendments to all specific plan districts (except the Terrabay Specific Plan District). The main focus of the amendments is on transferring decision - making authority from the "Executive Director of the Redevelopment Agency" and "Redevelopment Agency" to the "Chief Planner" and "Planning Commission ", which is consistent with the review and approval process for other zoning districts. Projects within the Terrabay Specific Plan District are subject to review and approval by City Council; therefore, no modifications are required to the Terrabay Specific Plan regulations. Two Examples of Proposed Amendments For illustrative purposes, the proposed amendments for Chapters 20.210 ( "City Council — General Provisions ") and 20.440 ( "Planning Agency ") are included below. The complete text amendments for the chapters listed above are included in the attached Ordinance. Example 1: Chapter 2.18 "City Council — General Provisions" (1) Delete Section 2.18.010 "Council declared redevelopment agency ", in its entirety, as follows: Example 2: Chapter 20.440 "Planning Agency" (6) Delete Section 20.440.003 — "Redevelopment Agency ", in its entirety, as follows: WWI - _ Example 2: Chapter 20.440 "Planning Agency" (6) Delete Section 20.440.003 — "Redevelopment Agency ", in its entirety, as follows: Staff Report Subject: Municipal Code Amendments — RDA Dissolution Page 3 NONNI - - ---------- -- --- (7) Amend Section 20.440.004 — "Planning Commission ", as follows: The Planning Commission is established and organized pursuant to Chapter 2.56 ( "Planning Commission ") of the South San Francisco Municipal Code and the requirements of the California Government Code. The powers and duties of the Planning Commission under this Ordinance include, but are not limited to: D. Initiate, conduct hearings, and make recommendations to the City Council Agonoy on proposed Specific Plans and plan amendments pursuant to the provisions of Chapter 20.530 ( "Specific Plans and Plan Amendments "). E. Approve, conditionally approve, modify or deny Conditional Use Permits, Precise Plans (except within Terrabay Specific Plan Districtl and variances pursuant to the provisions of Chapter 20.490 ( "Use Permits "), and Chapter 20.500 ( "Variances "). G. Conduct hearings and make recommendations to the City Council on applications for preliminary development plans pursuant to the provisions of Chapter 20.140 ( "Planned Development District ") and Precise Plans within the Terrabay Specific Plan District Planning Commission Review On January 17, 2013, the Planning Commission conducted a public hearing on the proposed text amendments pertaining to the dissolution of the Redevelopment Agency. The Commission's review authority is limited to the recommended changes to Title 20 ( "Zoning ") of the Municipal Code. No members of the public spoke on the item, and the Commission was supportive of the proposed revisions (Planning Commission Draft Meeting Minutes are attached). ENVIRONMENTAL REVIEW In accordance with the California Environmental Quality Act (CEQA), an Initial Study/Negative Declaration for the Zoning Ordinance Update was prepared and circulated, and in July of 2010, the Council adopted the Initial Study/Negative Declaration. The proposed changes and clarifications to remove all references to the Redevelopment Agency (RDA) are minor in nature and do not require any major revisions to the environment review or Initial Study/Negative Declaration prepared and circulated for the Zoning Ordinance Update (2010). Therefore, no further environmental review is required at this time. I: Staff Report Subject: Municipal Code Amendments — RDA Dissolution Page 4 CONCLUSION In order to ensure that the City's Municipal Code, is consistent with State law, staff is recommending the revisions included in the attached Ordinance to remove all references to the Redevelopment Agency from the Municipal Code. Accordingly, staff recommends that the City Council accept the Planning Commission's recommendation that Council conduct a public hearing, waive reading and introduce an Ordinance making the necessary Municipal Code revisions to address the dissolution of the Redevelopment Agency. Marty Van Duyn Assistant City M ECD Director BMN/MVD /SK/GB/la Approved: :,.� .q -Barry M. Nagel City Manager Attachments: I. Draft Ordinance II. Planning Commission Staff Report and Draft Meeting Minutes, dated January 17, 2013 III. Planning Commission Resolution 2729 -2013 ORDINANCE NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO STATE OF CALIFORNIA AN ORDINANCE MAKING REVISIONS AND CLARIFICATIONS TO THE SOUTH SAN FRANCISCO MUNICIPAL CODE RELATED TO THE ELIMINATION OF REDEVELOPMENT AGENCY REFERENCES WHEREAS, the California Legislature adopted, the Governor signed, and the California Supreme Court, in California Redevelopment Association, et al. v. Matosantos, (2012) 53 CalAth 231, upheld Assembly Bill xl 26 ( "ABx1 26 "); WHEREAS, pursuant to ABxl 26, all California redevelopment agencies were dissolved effective February 1, 2012; WHEREAS, pursuant to Resolution No. 8 -2012, adopted by the City Council on January 25, 2012, the City of South San Francisco ( "City ") agreed to serve as the successor agency to the Redevelopment Agency of the City of South San Francisco (the "Redevelopment Agency ") commencing upon the dissolution of the Redevelopment Agency on February 1, 2012; and WHEREAS, the City has identified areas of the Municipal Code that require refinement, clarification, and/or correction, including revisions to the City's ordinances to reflect the elimination of redevelopment agencies, as further set forth in the Ordinance. NOW, THEREFORE, the City Council of the City of South San Francisco does hereby ORDAIN as follows: SECTION I. AMENDMENTS. The City Council hereby amends the following sections of the South San Francisco Municipal Code to read as follows (with text in le stFike@w indicating deletion and double underlined text indicating addition). Sections and subsections that are not amended by this Ordinance are not included below, and shall remain in full force and effect. A. Chapter 2.18 "City Council — General Provisions" (1) Delete Section 2.18.010 "Council declared redevelopment agency ", in its entirety, as follows: Gou—ne-R! declared redevelopment ageneyr •+ it d a „ -I- B. Chapter 6.20 "Newspaper Racks and Banks" (1) Amend Section 6.20.060 "Application for newsrack permit" as follows: 6.20.060 Application for newsrack permit. (a) A person seeking issuance of a permit pursuant to this chapter shall file with the director a written application on a form supplied by the city. The application shall include the following information: (5) A written statement in a form approved by the city attorney, whereby the applicant agrees to indemnify and hold harmless the city, 90143a 98NFZF_Ois��� and the4 its officers, employees, agents and representatives, from any loss, claim, liability, or damage, including expenses and costs, for bodily or personal injury, and for property damage sustained by any person as a result of the installation, use, placement and/or maintenance of a newsrack within the city. C. Chapter 8.54 "Community Preservation" (1) Amend Section 8.54.060 "Street," of Article I, as follows: 8.54.060 Street. "Street" means the full width of the right -of -way of any street, as defined in the California Vehicle Code used by the general public, whether or not such street has been accepted as and declared to be part of the city system of streets, including streets forming a part of the state highway system. "Street" also includes easements where the city is the grantee of the easement and property owned by the city of South San Francisco or the md@N the, F-sa aL O--„ LaPC2C�8'Fa${� . (2) Amend subsection (k) of Section 8.54.070 "Unlawful property nuisance — Private property" of Article II, as follows: (k) Miscellaneous. (1) Any other condition or use of property which gives rise to a reasonable determination that said condition or use represents some threat to the health and welfare of the public by virtue of its unsafe, dangerous or hazardous nature, or which is so out of harmony with the standards of properties in the vicinity so as to cause substantial diminution of the enjoyment, use, or property values of such properties. -2- (2) The existence of any condition or use causing dense smoke, gas, soot, cinders or other particulate matter in such quantities as to render the occupancy of surrounding properties uncomfortable to a person of ordinary sensibilities. (3) Any violation of the South San Francisco Municipal Code, including but not limited to a failure to comply with a term or condition imposed by any agreement, entitlement, permit, license or environmental document issued or approved by or on behalf of the city D. Chapter 20.210 Bay West Cove Specific Plan District (1) Amend Table 20.210.003 "Land Use Regulations —Bay West Cove Specific Plan District ", as follows: Table 20.210.003 Land Use Regulations —Bay West Cove Specific Plan District I V VilllllVl l.lsl ll1G l "AAA\INIK- wrlegalK .. 1 Eating and Drinking Establishments P Bay West'Cove Planning p p Area See Section 20.350.028 Outdoor Seating Uses Permitted °: la lb L 2 3 1. 4 Addtional.Regulatirns Public and Semi - Public. Use Classifications . Day Care Centers p p p p p See Section 20.350.014 Day Care Maintenance and Repair Services P P P P P Centers Park and Recreation Facilities, Public P P P P P p I V VilllllVl l.lsl ll1G l "AAA\INIK- wrlegalK .. 1 Eating and Drinking Establishments P P p p p See Section 20.350.028 Outdoor Seating Food and Beverage Sales See subclassifications below Convenience Market p I p p I p _ See Section 20.350.013 Convenience Market Lodging See subclassifications below Hotels and Motels _ p _ I _ p Maintenance and Repair Services P P P P P Offices P P(1) P P - Personal Services p p p p P See Section 20.350.030 Personal Services Retail p p p p p Research and Development P _ p p _ Specific Limitations: 1. Office use may be permitted in Planning Area lb only if it is proven to the satisfaction of the Planning Commission that a full service hotel project is not viable on the site. -3- (2) Amend Section 20.210.004 "Development Standards ", as follows: A. Maximum Floor Area Ratio (FAR). The maximum floor area in Planning Areas 1 a, 1b, 2 and 3 is 1.2 for Hotels and Motels and .5 for all other uses unless the ld� Planning Commission grants an FAR bonus in accordance with the following: 1. 0.4 for Hotels and Motels and 0.2 for all other uses for the incorporation of Transportation Demand Management (TDM) measures. 2. 0.2 for the provision of off -site improvements. 3. 0.2 for Hotels and Motels and 0.1 for all other uses for projects meeting specified design standards. (3) Amend Section 20.210.010 "Transportation Demand Management ", as follows: A. General Requirements — Planning Areas la, lb, 2 and 3. 1. Transportation Demand Management (TDM). Project sponsors shall implement a TDM plan to reduce vehicular trips, and shall be required to achieve a minimum 35 percent alternative mode use by tenant employees. 2. TDM Monitoring Report. The project sponsors shall prepare an annual TDM report to document a minimum 35 percent alternative mode usage as identified in the Bay West Cove Supplemental EIR. a. Required monitoring shall commence two years after a certificate of occupancy is granted for any building within Planning Area 1 a, 1 b, 2 or 3. b. The report will be prepared by an independent consultant, hired by the City, and paid for by the project sponsors, working in full cooperation with the on -site TDM coordinator. C. The report will be based on an employee survey to determine employee commute methods on a typical workday. All nonresponses will be counted as a drive alone trip. 3. If the results of the annual report indicate that the TDM program is not achieving the 35 percent alternative mode usage, the project sponsor will receive a warning and be required to identify changes in the TDM program which will be undertaken during the subsequent year in order to achieve the minimum 35 percent standard. If the annual TDM report for the subsequent year indicates that, in spite of the changes in the TDM program, the 35 percent alternative mode usage is still not being achieved, the project sponsor may be assessed a financial penalty by the Ageney Planning Commission for each percentage point below the minimum 35 percent alternative mode use standard, as indicated in the owner participation agreement. (4) Amend Section 20.210.011 "Public Improvements and Infrastructure ", as follows: A. The public improvements to serve the uses set forth in this chapter may be funded, as practicable and legally and fiscally feasible, by one or more of the following measures: 1. Contributions and advances by the owner. 92. Assessment districts (including but not limited to public improvement districts, landscaping and lighting districts and other mechanisms) and bond issues authorized thereunder. -4- (5) Amend Section 20.210.014 "Administration and Implementation ", as follows: The Bay West Cove specific plan shall be implemented through the review of precise plans, which sets forth in detail development details for proposed structures and related improvements and their arrangements on individual parcels; parcel maps, design review and sign permits. The Redevelopment Ageney Planning Commission shall review precise plans, parcel maps, and sign applications to determine consistency with the Bay West Cove specific plan ead A. Precise Plans. Precise plans shall be governed by the following requirements: 1. No person shall commence any use, erect any structure or make exterior modifications to any existing structure, parking area or structure, or shall any certificate of occupancy be issued for any new use or structure or modification until a precise plan has been approved in accord with this section. The following shall not require the approval of a precise plan: a. Change in sign copy on existing sign, or on signs designed to allow a change of copy; or b. Changes required in whole or part by a requirement of any governmental agency. 2. Application. When a precise plan is required by the Bay West Cove specific plan, the precise plan shall be submitted to the Chief Planner �. The Chief Planner shall check each application for completeness and, if the precise plan is deemed incomplete, the Chief Planner shall notify the applicant of any deficiency within 30 days of precise plan submittal. 3. Contents. The following information and drawings shall be required for precise plan consideration, except that the hief Planner may require either less or additional information, depending on the nature of the application: a. Applicable tentative or final parcel and/or subdivision maps for the area encompassed by a precise plan; b. All landscape, hardscape and amenity features with appropriate plant materials and sizes; C. Grading and drainage plans, unless the South San Francisco City Engineer determines such plans are not needed; d. Architectural plans and exterior elevations indicating profiles and exterior materials and colors, drawn to scale; e. Scale drawing of all signs and light standards, with details of height, area, color, methods of sign illumination; f. Any other drawings or additional information necessary for the Rodevelopmen Agene Planning Commission to review and make its necessary determinations. 4. Guidelines for Review. In reviewing precise plans, the Planning Commission shall adhere to the standards set forth within and shall further attempt to foster and promote the general character and purposes of the specific plan. 5. Design Review. Each precise plan application shall be referred to the design review board, which shall forward a recommendation to the Planning Commission prior to final action on the precise plan. 6. Period of Review To ensure orderly development of the site, the Pl Commission Ageney shall act promptly on any request for approval. -5- 7. hiefPlanner's Review mow The Chief Plmer hall review the application in light of guidelines and standards set forth herein and shall consult with the staff of the affected departments in the review of each precise plan. Upon completion of his or her review, the jQbe Planner - _ Pe n •_•=-•_.• shall submit the precise plan to the Planning Commission and shall recommend that the bow Planning Commission approve, conditionally approve, disapprove, or suggest modifications to the precise plan. 8. Planning Commission Decision. The evelopffient Planning Commission shall approve, conditionally approve, disapprove or suggest modification to the precise plan. No approval shall be unreasonably withheld by the Commission if the precise plan complies with the specific plan. The Planning Commission shall make the following findings in approving or conditionally approving a precise plan: a. The proposed precise plan is consistent with the Bay West Cove $Specific Plan Gity's mdovelepmeat p4aa=and the owner participation agreement. b. The proposed precise plan is consistent with the City's General Plan. C. The proposed precise plan is consistent with the East of 101 Area Plan. 9. Changes to Approved Plans If significant changes to an approved precise plan are desired by the applicant, a revised precise plan shall be submitted and processed according to the procedures established herein for approval of the original precise plan. Revisions which are minor in nature, other than those applied as a conditional of approval, shall be reviewed and approved by the Chief Planner. the 10. Expiration of Approval. Any approved precise Ulan shall lapse and shall be deemed void: (a) two years after the date of its approval if a building Hermit bas not been issued v iavL VVVll lAJUVl1 and/or construction has not commenced or has not proceeded with due diligence thereafter or (b) after a lop er duration as otherwise provided in an approved development agreement One-year extensions of the time maybe granted by the Planning Commission. Projects are subject to the phasing, if any. established for the buildings within the approved precise elan R OF its P@Fmit has not been issued M- jago aq At ==a @86de'd -L, C. J;1; man as Reasonable exteasiefts J YYtl B. Variance Procedure$. Where practical difficulties, unnecess my hardships or results inconsistent with the general purpose of the Specific Plan may result from the stric application of certain provisions thereoff, variances may be granted pursuant to Chanter 20.500 of the municipal code. Iles— OkI 01 L . a 1_ a ,< 19heati-O.M. Of ^ r s r r � rr fefffi PrOSSAhe'd lay the p1maing Division. - the Redevelopment a J - e a the Ageney on the applieft6oft. -6- i A --4a_ It-ti-e- South Redevel@ meat Ageney and evideace thm so C. Parcel Maps. Applications for parcel maps within the specific plan areas shall be governed by the following requirements: 1. Applications for parcel maps shall be prepared in accordance with the requirements of the City's subdivision ordinance. 2. All lots shall either abut a dedicated and improved street or shall provide like access in the form of an access easement, or other means acceptable to the City Engineer, to a dedicated and improved street. 3. Parcel map applications shall be processed in accordance with the standards and procedures identified in the City's subdivision ordinance with the A@ Ageffey ftetiag OR the Pilau iRg G@ffijjqjQ-;Q= E. Chapter 20.220 "Gateway Specific Plan District" (6) Amend Section 20.220.001 — "Gateway Specific Plan District Purpose ", as follows: The Gateway specific plan provides for the coordinated development of certain property located in the City of South San Francisco Gateway area so as to take advantage of the superior environment which can result from large scale comprehensive planning. The concepts, regulations and conditions established by the Gateway specific plan are intended to provide for various commercial and research and development land uses integrated by consistent development standards. The Gateway specific plan serves to refine and to implement the general plan of the City of South San Francisco with respect to the specific plan area. The Gateway specific plan further provides the opportunity to combine the concepts, procedures and regulations of several documents into one. These documents include the general plan, the redevelopment plan adopted on June 17, 1981 by Ordinance No. 867 -81, the Zoning Ordinance and certain aspects of the Subdivision Ordinance. The Gateway specific plan establishes the type, location, intensity and character of development to take place in the specific plan area, while allowing for creative and imaginative design concepts. The zoning regulations, development standards and other regulations of the Gateway specific plan are designed to foster well - conceived development of the specific plan area as a positive community asset of the City of South San Francisco. . (7) Amend Section 20.220.005 — "Building Improvements ", as follows: -7- All construction shall comply with all provisions of the California Building Code, the various Mechanical, Electrical and Plumbing Codes, the Uniform Fire Code and the Building Security Standards adopted by the City of South San Francisco, as amended from time to time. All buildings and improvements located on any site shall be constructed by the owner of such site in accordance with the requirements of the Planning Commission and in accordance with the following standards, unless an exception is approved in writing by the Planning Commission A. Exterior Walls. Exterior walls shall be of wood, masonry, concrete or other equivalent material approved by the Planning Commission and shall be finished in a manner acceptable to the Planning Commission Redeveleigment (8) Amend Section 20.220.007 — "Fences ", as follows: No fence, wall, or similar structure shall be erected, installed or permitted to remain on any site within 20 feet of the front property line, or within ten feet of a side or rear property line that is not a street property line, or in front of a building facing the street, without the prior approval of the Planning Commission (9) Amend Section 20.220.009 — "Circulation and Parking ", as follows: D. Off - street Parking. 1. Parking Location. Parking shall be permitted within a required setback but shall not be permitted within 20 feet from any street -side property line or within 20 feet from any building. 2. Iniprovenzents Paving structural sections for parking areas shall be designed in accordance with recommendations of a professional soils engineer based on the site's soils' conditions and projected traffic loadings. Such soils report shall be submitted to the Ageney Planning Commission along with the precise plan for the site. (10) Amend Section 20.220.011 — "Signs ", as follows: E. Sign Illumination. A sign may be illuminated provided that no flashing, traveling, animated or intermittent illumination shall be used. Such illumination shall be confined to the area of the sign except when such illumination is backlighting for an otherwise nonilluminated sign. No colored illumination, other than white, shall be used without prior approval by the Chief Planner . 0.22001 (11) Amend Section 20.220.012 — "Administrative Provisions ", as follows: C. Master Plan and Precise Plan Procedures. 1. Application. Master Plan and Precise Plan applications shall be submitted to the Planning Division. The Chief Planner shall check each application for completeness and, if the Master Plan or Precise Plan is deemed incomplete, the Chief Pla er shall notify the applicant of the deficiency within 30 days of submission of the master plan or precise plan -8- 2. Contents The following information and drawings shall be required for Master Plan or Precise Plan consideration, except that the Chief Planner may require either less or additional information as necessary to meet the intent and purpose of this section: a. All applicable tentative, final or parcel maps within the area covered by the proposed precise plan; b. A legal and physical description of the site including boundaries, easements, existing topography, natural features, existing buildings, structures and utilities; C. A plot or site plan, drawn to scale which depicts all proposed on -site improvements and utilities and the locations of same in accordance with the standards established in the Gateway specific plan; d. A landscape plan drawn to scale which sets forth information pertinent to the landscape requirements of the Gateway specific plan and the zoning ordinance and shows all existing trees and shrubs on the site; e. Grading and drainage plans unless the City Engineer determines they are unnecessary for the review process; f. Architectural plans and exterior elevations indicating profiles, glazing and materials drawn to scale. The applicant shall submit one colored full -size print showing elevations drawn to scale and ten 8 -1/2" x 11" reductions showing all land uses and buildings; g. Scale drawings of all signs and light standards with details of height, area, color and materials specified therein; and h. A Phasing Plan shall be required as part of a Master Plan application. i. Any other drawings or additional information necessary for the Planning Commission l to review and make its determination as required hereby. 3. Guidelines for Review. In reviewing precise plans pursuant to the Gateway specific plan, the Planning Commission shall review to ensure consistency with an approved Master Plan for the site, and shall adhere to the standards set forth in this chapter and shall further attempt to foster and promote the general character and purposes of the specific plan area asset forth in this chanter and the owner participation agreement. 4. Period of Review To ensure the orderly development and marketing of property in the specific plan area, the Planning Commission shall act promptly on any request for its approval. 5. Design Review. Each application for a master plan or precise plan shall be referred to the design review board, which shall formulate a recommendation to the P annin Commission sgam;y. The Planning Commission � shall adopt design guidelines for master plan, research and development, and office /sales /service projects. These guidelines, which may be amended from time to time, shall provide the standards for the design review of these projects. 6. Wd" "'M@#Or Chief Planner' Review The Chief Planner shall review the application in light of the guidelines and standards set forth in this chapter, and shall consult with the staff of affected departments and offices of the City in connection with the review of each master plan or precise plan. Upon completion of his or her review and consultations, the Chief Planner &k@@66*044ireoter shall submit the master plan or precise plan to the Planning Commission -4goney and shall recommend that the Planning Commission -9- A --- approve, conditionally approve, disapprove or suggest modifications to the master plan or precise plan. 7. Planning Commi ion Approval Decision. The Planning Commission approve, conditionally approve, disapprove or suggest modifications to the master plan or precise plan. Any conditions shall be reasonable, and designed to assure attainment of the standards set forth in this chapter. No approval shall be unreasonably withheld by the board if the master plan or precise plan shall be within the standards set forth in this chapter. 8. Mandatory Findings forApprovaL The Planning Commissionde� shall review precise plans submitted for approval to determine whether they are consistent with the Gateway specific plan, , and the owner participation agreement. The Planning Commission shall make the following findings before approving or conditionally approving any master plan or precise plan: a. The project proposed in the master plan or precise plan is compatible with the intent and purpose of the Gateway specific plan. b. The proposed development and/or construction standards of the master plan or precise plan are designed to achieve compliance with the development and/or construction standards of the Gateway specific plan. C. The project proposed in the master plan or precise plan is consistent with the owner participation agreement. d. The project proposed in the master plan or precise plan is consistent with the general plan. 9. Changes afterApprovaL If significant changes to an approved master plan or precise plan are desired by the applicant, a revised master plan or precise plan shall be submitted and processed according to the procedures established herein for approval of the original master plan or precise plan. Revisions which are minor in nature, other than those applied as a condition of approval, shall be reviewed and approved by the Chief Planner r° itiv - Pits Any changes to the phasing plan approved as part of a Master Plan shall be subject to approval by the Planning Commission 10. Expiration ofApprovaL Any approved precise elan shall lapse and shall b deemed void: (a) two years after the date of its approval if a building permit has not been issued and/or construction has not commenced or has not proceeded with due diligence thereafter' or fhl after a longer duration as otherwise provided in an approved devrelopmenLagreement. One-year extensions of the time may be granted by the Planning Commission Proiects are subject to the 1hasing, if any, established for the buildings within the approved precise pl Aw",buiming remit @* w4i@h a Promise plan has been appraeved, phasing pMd a pmeise r D. Variance Procedure$. Where practical difficulties, unnecessary hardships or results inconsistent with the general pwo a of the Specific Plan many result from the strict application of certain provisions thereof, variances may be granted pursuant to Chapter 20.500 of the municipal code. Whow praai A di~' - _,6-- " L a hi — -10- F. Chapter 20.390 "Bonus Residential Density" (12) Amend Section 20.390.008 — "Expiration of Affordability Tenure ", as follows: A. At the end of the minimum tenure for rental units in projects containing target units or for -sale target dwelling units, a notice of availability of the rental project or for -sale target dwelling unit(s), shall be prepared by the property owner and submitted to the Economic and Community Development DirectorWithin 90 days of the notification of availability of the rental project or for -sale target dwelling unit(s), the City or its designee has the first right of refusal to buy the rental or for -sale target dwelling unit(s) for the purposes of providing affordable housing. Under this option, the City or its designee will make a good -faith effort to close escrow within 90 days. The sales price of the rental project or for -sale unit(s) shall be the fair - market appraised value at the time of sale, assuming continued affordability restrictions. The fair - market valuation of the rental project or for -sale target dwelling unit(s) shall be determined by an appraisal made by an agent mutually agreed upon by the City and the property owner. Costs associated with the appraisal shall be borne by the property owner. (13) Amend Section 20.390.009 — "Density Bonus or In -lieu Incentive Application and Review Process ", as follows: -11- A. General. All residential projects requesting a density bonus, additional incentive(s) or in -lieu incentives pursuant to this chapter, shall be required to comply with the following application requirements: 1. Application for On Site Target Dwelling Units Target dwelling units proposed to be developed within the same project site requiring such units shall be designated on the project plans and shall be processed under a site development plan application in addition to the otherwise required project development application(s) (i.e., tentative maps, parcel maps, planned unit developments and Conditional Use Permits The site development plan shall be processed pursuant to Chapters 19 ( "Subdivisions ") and 20 ( "Zoning ") of the South San Francisco Municipal Code. No additional hearings or approvals shall be required, except as provided herein with regard to the provision of financial incentives. If the application involves a request to the City for direct financial incentives, then any action by the Planning Commission on the application shall be advisory only, and the City Council shall have the authority to make the final decision on the site development plan application and any related discretionary permits. (14) Amend Section 20.390.010 — "Inclusion of Density Bonus Housing Agreement as a Condition of Development ", as follows: .390.009 A. Applicants /developers, requesting a density bonus, additional incentives or in -lieu incentives pursuant to this chapter, shall demonstrate compliance with this chapter by the preparation and approval of a density bonus housing agreement. A density bonus housing agreement shall be submitted by the applicant to the City. The terms of the draft agreement shall be reviewed by the Chief Planner, who shall formulate a recommendation and refer the matter to the Economic and Community Development Director or his/her designee for final approval ?' _a.... @ f h@ =Maki to the 7 Following the approval and the signing by all parties, the completed density bonus housing agreement shall be recorded and the relevant terms and conditions there from filed and recorded as a deed restriction on those individual lots or units of a property which are designated for the location of target dwelling units. The approval and recordation shall take place prior to final map approval, or, where a map is not being processed, prior to issuance of building permits for such lots or units. The density bonus housing agreement shall be binding to all future owners and successors in interest. F. Chapter 20.440 "Planning Agency" (15) Delete Section 20.440.003 — "Redevelopment Agency ", in its, entirety, as follows: -12- - - - - RN -12- (16) Amend Section 20.440.004 — "Planning Commission ", as follows: The Planning Commission is established and organized pursuant to Chapter 2.56 ( "Planning Commission ") of the South San Francisco Municipal Code and the requirements of the California Government Code. The powers and duties of the Planning Commission under this Ordinance include, but are not limited to: D. Initiate, conduct hearings, and make recommendations to the City Council Ageney on proposed Specific Plans and plan amendments pursuant to the provisions of Chapter 20.530 ( "Specific Plans and Plan Amendments "). E. Approve, conditionally approve, modify or deny Conditional Use Permits P_ ex cise Plans (except within Terrabay Specific Plan District) and variances pursuant to the provisions of Chapter 20.490 ( "Use Permits "), and Chapter 20.500 ( "Variances "). G. Conduct hearings and make recommendations to the City Council on applications for preliminary development plans pursuant to the provisions of Chapter 20.140 ( "Planned Development District ") and Precise Plans within the Terrabay Specific Plan District (17) Amend Table 20.440.011 — "Review Authority ", as follows: Application or onnd ��.cuon llype: .� in Advisory Body. ]Decision Maker Appeal Body lChapter T a One Ministerial Actions Site Clearance 20.470 N/A Chief Planner Planning Mam Commission Sign Permit 20.360 N/A Chief Planner City Council -- 20.030 N/A Chief Planner Planning (16) Amend Section 20.440.004 — "Planning Commission ", as follows: The Planning Commission is established and organized pursuant to Chapter 2.56 ( "Planning Commission ") of the South San Francisco Municipal Code and the requirements of the California Government Code. The powers and duties of the Planning Commission under this Ordinance include, but are not limited to: D. Initiate, conduct hearings, and make recommendations to the City Council Ageney on proposed Specific Plans and plan amendments pursuant to the provisions of Chapter 20.530 ( "Specific Plans and Plan Amendments "). E. Approve, conditionally approve, modify or deny Conditional Use Permits P_ ex cise Plans (except within Terrabay Specific Plan District) and variances pursuant to the provisions of Chapter 20.490 ( "Use Permits "), and Chapter 20.500 ( "Variances "). G. Conduct hearings and make recommendations to the City Council on applications for preliminary development plans pursuant to the provisions of Chapter 20.140 ( "Planned Development District ") and Precise Plans within the Terrabay Specific Plan District (17) Amend Table 20.440.011 — "Review Authority ", as follows: Application or onnd ��.cuon llype: .� in Advisory Body. ]Decision Maker Appeal Body lChapter T a One Ministerial Actions Site Clearance 20.470 N/A Chief Planner Planning Commission Sign Permit 20.360 N/A Chief Planner City Council Interpretations 20.030 N/A Chief Planner Planning Commission Minor Changes to an 20.440 N/A Chief Planner Planning Approved Permity _ Commission Acti+yms N/A Chief Planner Planning ws� _ 1 Waiver from 20.510 Dimensional Commission Standards Permit Modifications 20.440 Chief Planner Chief Planner or City Council Planning Commission Parking District 20.330 N/A Parking Place City Council Parking Exceptions I Commission Temporary Use 20.520 N/A Chief Planner Planning -13- T�•pe Three.- Discretionary Legislative Actions Precise Plans 20.240 Planning City Council Superior Court p 00 Specific Plans and 20.530 Planning City Council Permits Plan Amendments Commission Commission Design Review 20.480 Design Review Chief Planner or Planning Superior Court Ma Amendments Board Planning Commission Commission or Zoning Ordinance and 20.550 Planning City Council Minor Use Permits 20.490 N/A Chief Planner Planning Prezoning 20.560 Planning Commission Conditional Use 20.490 Chief Planner Planning Commission City Council Permits Variances 20.500 Chief Planner Planning Commission City Council Certificates of l 2.56 N/A Planning Commission City Council Alteration Master Sign Program 20.360 Advisory Body of Review Authority of Appeal Body of Associated Associated Project Associated Project Project Permit Permit Permit Precise Plans 20.210 — Chief Planner Planning Commission City Council (excluding Terrabav) 20.220 20.230 T�•pe Three.- Discretionary Legislative Actions Precise Plans 20.240 Planning City Council Superior Court Terraba Commission Specific Plans and 20.530 Planning City Council Superior Court Plan Amendments Commission General Plan Text and 20.540 Planning City Council Superior Court Ma Amendments Commission Zoning Ordinance and 20.550 Planning City Council Superior Court Ma Amendments Commission Prezoning 20.560 Planning City Council Superior Court Commission G. Chapter 20.450 "Common Procedures" (18) Amend Section 20.450.013 – "Indemnification ", as follows: A. Agree to Defend, Indemnify, and Hold Harmless. When submitting an application for a discretionary approval in compliance with this Ordinance, except for those identified in subsection B, below, the applicant shall agree, as part of the application, to defend, indemnify, and hold harmless the City of South San Francisco, the, eg S S � and its agents, officers, and employees from any action, claim, or proceeding brought against the City or its agents, officers, or employees which challenges the -14- validity of any approval by the City, its agencies, boards, Commission, or Council. The indemnification shall apply to any attorney fees, costs of suit, damages, or other expenses awarded against the City, its agents, officers, and employees in connection with the action. H. Chapter 20.530 "Specific Plans and Plan Amendments" (19) Amend Section 20.530.004 — "Initiation ", as follows: A Specific Plan may be initiated by: Fees "); A. Any qualified applicant identified in Section 20.450.002 ( "Application Forms and B. A motion of the City Council, , or Planning Commission; C. A verified petition of at least 10 percent of the registered voters of the City; or D. A person who has entered into an a valid and enforceablg agreement with the former Redevelopment Agency for the possible assembly of the property affected by the proposed Specific Plan. (20) Amend Section 20.530.009 — "Review Procedures and Public Notice ", as follows: 20.530. A. Staff Report. The Chief Planner shall prepare a report and recommendation to the Commission on the application for a Specific Plan. The report shall include, but is not limited to, a discussion of how the proposed Specific Plan complies with the purposes of this chapter, a determination as to whether the proposed amendment will require amendment to other plans that the City Council has adopted, and an environmental assessment prepared in compliance with the California Environmental Quality Act. (21) Amend Section 20.530.012 — "Required Findings ", as follows: 20.530.011 The Planning Commission shall not recommend and the City Council orb Agmtoy shall not adopt a Specific Plan unless the following findings are made: A. The Specific Plan implements and is consistent with the General Plan; B. The Specific Plan will not be detrimental to the public interest, health, safety, convenience, or welfare of the City; C. The Specific Plan area is physically suitable for the proposed land use designation(s) and the anticipated development; and D. The proposed development will be superior to development otherwise allowed under conventional zoning classifications. (22) Amend Section 20.530.0123 — "Amendment Procedure ", as follows: A Specific Plan may be amended to change the text or land use designation in the same manner as was adopted_ greeifie Pig P48n==Amendment of a Specific Plan is subject to the same findings as prescribed for the initial approval. -15- (23) Amend Section 20.530.014 — "Specific Plan Administration ", as follows: A specific plan may be implemented through precise plans, which set forth in detail development criteria for proposed structures and related improvements and their arrangements on individual parcels; parcel maps, design review, and sign permits. A. No discretionary entitlement applications or other permits may be approved, adopted or amended within an area covered by a Specific Plan, unless found to be consistent with the adopted Specific Plan. 7 , I. Chapter 20.540 "Amendments to General Plan" (24) Amend Section 20.540.003 — "Initiation ", as follows: An amendment to the General Plan may be initiated by: A. Any qualified applicant identified in Section 20.450.002 ( "Application Forms and Fees "); B. A motion of the City Council or Planning Commission; C. A verified petition of at least 10 percent of the registered voters of the City; or D. A person who has entered into em a valid and enforceable agreement with the former Redevelopment Agency for the possible assembly of the property affected by the proposed amendment. (25) Amend Section 20.540.005 — "Review Procedures and Public Notice ", as follows: A. Staff Report. The Chief Planner shall prepare a report and recommendation to the Planning Commission on the application for a General Plan amendment. The report shall include, but is not limited to, a discussion of how 'the proposed amendment complies with the purposes of this chapter, a determination as to whether the proposed amendment will require amendment to other plans that the City Council has hmEe adopted, and an initial environmental assessment prepared in compliance with the California Environmental Quality Act. J. Chapter 20.550 `Amendments to Zoning Ordinance and Map" (26) Amend Section 20.550.003 — "Initiation ", as follows: An amendment to the text of the Zoning Ordinance or to the Zoning Map may be initiated by: Fees "); A. Any qualified applicant identified in Section 20.450.002 ("Application Forms and B. A motion of the City Council or Planning Commission; C. A verified petition of at least 10 percent of the registered voters of the City; or -16- D. A person who has entered into an a valid and enforceable agreement with the former Redevelopment Agency for the possible assembly of the property affected by the proposed amendment. K. Chapter 20.630 "Terms and Definitions" (27) Amend Section 20.630.001 — "List of Terms ", to delete the term "Redevelopment Agency" as follows: (28) Amend Section 20.630.002 — "Definitions ", to delete the term and definition for "Redevelopment Agency" as follows: SECTION II. SEVERABILITY. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid or unconstitutional, the remainder of this Ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this Ordinance are severable. The City Council of the City of South San Francisco hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable. SECTION III. 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 (30) days from and after its adoption. Introduced and adopted at a regular meeting of the City Council of the City of South San Francisco, held the day of 92013. -17- Adopted as an Ordinance of the City of South San Francisco at a regular meeting of the City Council held the day of , 2013 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: Krista Martinelli, City Clerk As Mayor of the City of South San Francisco, I do hereby approve the foregoing Ordinance this day of , 2013. Pedro Gonzalez, Mayor 2017 972.1 -18- Planning Commission ,Z O Staff Report DATE: January 17, 2013 TO: Planning Commission SUBJECT: Municipal Code Amendments (Dissolution of Redevelopment Agency) — Proposed Amendments to South San Francisco Municipal Code making revisions related to the elimination of the Redevelopment Agency (RDA) references. Location: City -wide Case Nos.: P12-0119: ZA 12 -0006 RECOMMENDATION That the Planning Commission adopt the attached Resolution recommending that the City Council adopt an Ordinance making revisions, corrections and clarifications to Title 20 ( "Zoning ") of the South San Francisco Municipal Code, related to the elimination of the Redevelopment Agency. BACKGROUND Dissolution of Redevelopment Agencies In 2011, the State of California Legislature approved the dissolution of Redevelopment Agencies (RDAs) in the State. The RDAs were officially dissolved as of February 1, 2012. As a result of the dissolution of South San Francisco's RDA, amendments to various sections of the Municipal Code are required to omit the actions and authority of the former RDA and to reassign decision - making authority, as applicable, within the City. DISCUSSION Planning Commission Authority The Planning Commission's review authority is limited to the recommended changes to Title 20 ( "Zoning ") of the Municipal Code. The discussion below includes the complete list and discussion of all Municipal Code amendments that will be presented to the City Council. Overview ofRecommended Zoning Ordinance Amendments In order to remove RDA references from the Zoning Ordinance and transfer the former -RDA's decision - making authority, staff is proposing amendments to all Specific. Plan Districts (except the Terrabay Specific Plan District). The main focus of the amendments is on transferring decision - making authority from the "Executive Director of the Redevelopment Agency" and "Redevelopment Agency" to the "Chief Planner" and "Planning Commission ", which is consistent with the review and approval process for other Zoning Districts. Projects within the Terrabay Specific Plan District are subject to review and approval by City Council; therefore, no modifications are required to the Terrabay Specific Plan regulations. 19 STAFF REPORT Subject: Municipal Code Amendments Date: January 17, 2013 Page 2 of 8 In addition to the specific plan district amendments, several procedural and definition sections of the Zoning Code must also be updated. A complete list of all sections of the Municipal Code that must be amended is provided below. Proposed Text Amendments for Entire Municipal Code The proposed text amendments would modify the following sections of the Municipal Code, as follows: Chapter 2.18 "City Council — General Provisions" Chapter 6.20 "Newspaper Racks and Banks" Chapter 8.54 "Community Preservation" Chapter 20.210 "Bay West Cove Specific Plan District" Chapter 20.220 "Gateway Specific Plan District" Chapter 20.390 "Bonus Residential Density" Chapter 20.440 "Planning Agency" Chapter 20.450 "Common Procedures" Chapter 20.530 "Specific Plans and Plan Amendments" Chapter 20.540 "Amendments to General Plan" Chapter 20.550 "Amendments to Zoning Ordinance and Map" Chapter 20.630 "Terms and Definitions" The changes included in the attachments are done using a double underline /fit format, where text that is double underlined is added and text that is struck out is deleted. Two Examples of ProposedAmendments For illustrative purposes, the proposed amendments for Chapters 20.210 and 20.440 are included below. All of the full text amendments for the sections listed above are included in the Ordinance attached to the Planning Commission Resolution. Example 1: Chapter 20.210 `Bay West Cove Specific Plan District" (1) Amend Table 20.210.003 "Land Use Regulations —Bay West Cove Specific Plan District ", as follows: Table 20.210.003 Land Use Regulations —Bay West Cove Specific Plan District Day Care Centers p TP p P P See Section 20.350.014 Day Care Centers Park and Recreation Facilities, Public IP IP IP IP P K;ommercial Use Classifications -20- STAFF REPORT Subject: Municipal Code Amendments Date: January 17, 2013 Page 3 of 8 (2) Amend Section 20.210.004 "Development Standards ", as follows: A. Maximum Floor Area Ratio (FAR). The maximum floor area in Planning Areas la, lb, 2 and 3 is 1.2 for Hotels and Motels and .5 for all other uses unless the lannin Commission grants an FAR bonus in accordance with the following: 1. 0.4 for Hotels and Motels and 0.2 for all other uses for the incorporation of Transportation Demand Management (TDM) measures. 2. 0.2 for the provision of off -site improvements. 3. 0.2 for Hotels and Motels and 0.1 for all other uses for projects meeting specified design standards. (3) Amend Section 20.210.010 "Transportation Demand Management ", as follows: A. General Requirements — Planning Areas la, lb, 2 and 3. 1. Transportation Demand Management (TDM. Project sponsors shall implement a TDM plan to reduce vehicular trips, and shall be required to achieve a minimum 35 percent alternative mode use by tenant employees. 2. TDM Monitoring Report. The project sponsors shall prepare an annual TDM report to document a minimum 35 percent alternative mode usage as identified in the Bay West Cove Supplemental EIR. a. Required monitoring shall commence two years after a certificate of occupancy is granted for any building within Planning Area la, lb, 2 or 3. b. The report will be prepared by an independent consultant, hired by the City, and paid for by the project sponsors, working in full cooperation with the on -site TDM coordinator. -21- Eating and Drinking Establishments P p p p P FSea Section 20.350.028 Outdoor ing (2) Amend Section 20.210.004 "Development Standards ", as follows: A. Maximum Floor Area Ratio (FAR). The maximum floor area in Planning Areas la, lb, 2 and 3 is 1.2 for Hotels and Motels and .5 for all other uses unless the lannin Commission grants an FAR bonus in accordance with the following: 1. 0.4 for Hotels and Motels and 0.2 for all other uses for the incorporation of Transportation Demand Management (TDM) measures. 2. 0.2 for the provision of off -site improvements. 3. 0.2 for Hotels and Motels and 0.1 for all other uses for projects meeting specified design standards. (3) Amend Section 20.210.010 "Transportation Demand Management ", as follows: A. General Requirements — Planning Areas la, lb, 2 and 3. 1. Transportation Demand Management (TDM. Project sponsors shall implement a TDM plan to reduce vehicular trips, and shall be required to achieve a minimum 35 percent alternative mode use by tenant employees. 2. TDM Monitoring Report. The project sponsors shall prepare an annual TDM report to document a minimum 35 percent alternative mode usage as identified in the Bay West Cove Supplemental EIR. a. Required monitoring shall commence two years after a certificate of occupancy is granted for any building within Planning Area la, lb, 2 or 3. b. The report will be prepared by an independent consultant, hired by the City, and paid for by the project sponsors, working in full cooperation with the on -site TDM coordinator. -21- STAFF REPORT Subject: Municipal Code Amendments Date: January 17, 2013 Page 4 of 8 C. The report will be based on an employee survey to determine employee commute methods on a typical workday. All nonresponses will be counted as a drive alone trip. 3. If the results of the annual report indicate that the TDM program is not achieving the 35 percent alternative mode usage, the project sponsor will receive a warning and be required to identify changes in the TDM program which will be undertaken during the subsequent year in order to achieve the minimum 35 percent standard. If the annual TDM report for the subsequent year indicates that, in spite of the changes in the TDM program, the 35 percent alternative mode usage is still not being achieved, the project sponsor may be assessed a financial penalty by the Planning Commission for each percentage point below the minimum 35 percent alternative mode use standard, as indicated in the owner participation agreement. (Ord. 1432 § 2, 20 10) (4) Amend Section 20.210.011 "Public Improvements and Infrastructure ", as follows: A. The public improvements to serve the uses set forth in this chapter may be funded, as practicable and legally and fiscally feasible, by one or more of the following measures: 1. Contributions and advances by the owner. Health and &&fOtY=G@dO, 9@6660 _230911" -32. Assessment districts (including but not limited to public improvement districts, landscaping and lighting districts and other mechanisms) and bond issues authorized thereunder. The "" dit (5) Amend Section 20.210.014 "Administration and Implementation ", as follows: The Bay West Cove specific plan shall be implemented through the review of precise plans, which sets forth in detail development details for proposed structures and related improvements and their arrangements on individual parcels; parcel maps, design review and sign permits. The 1 Ageno� Planning Commission shall review precise plans, parcel maps, and sign applications to determine consistency with the Bay West Cove specific plan and the red- A. Precise Plans. Precise plans shall be governed by the following requirements: 1. No person shall commence any use, erect any structure or make exterior modifications to any existing structure, parking area or structure, or shall any certificate of occupancy be issued for any new use or structure or modification until a precise plan has been approved in accord with this section. The following shall not require the approval of a precise plan: a. Change in sign copy on existing sign, or on signs designed to allow a change of copy; or b. Changes required in whole or part by a requirement of any governmental agency. 2. Application. When a precise plan is required by the Bay West Cove specific plan, the precise plan shall be submitted to the Chief Planner &, R Pireetor of The Chief Planner e,006v c D 6etor—shall check each application for completeness and, if the precise plan is deemed incomplete, the Chief Planner shall notify the applicant of any deficiency within 30 days of precise plan submittal. 3. Contents The following information and drawings shall be required for precise plan consideration, except that the Chief Planner may require either less or additional information, depending on the nature of the application: -22- STAFF REPORT Subject: Municipal Code Amendments Date: January 17, 2013 Page 5of8 a. Applicable tentative or final parcel and/or subdivision maps for the area encompassed by a precise plan; b. All landscape, hardscape and amenity features with appropriate plant materials and sizes; C. Grading and drainage plans, unless the South San Francisco City Engineer determines such plans are not needed; d. Architectural plans and exterior elevations indicating profiles and exterior materials and colors, drawn to scale; e. Scale drawing of all signs and light standards, with details of height, area, color, methods of sign illumination; f. Any other drawings or additional information necessary for the A ff on Bill Planning Commission to review and make its necessary determinations. 4. Guidelines for Review. In reviewing precise plans, the Planning Commission shall adhere to the standards set forth within and shall further attempt to foster and promote the general character and purposes of the specific plan. 5. Design Review. Each precise plan application shall be referred to the design review board, which shall forward a recommendation to the Planning Commission prior to final action on the precise plan. 6. Period of Review. To ensure orderly development of the site, the Planning Commission _ shall act promptly on any request for approval. 7. Chief Planner FweeffMw Pimeler 4 - " -W~ The Chief Planne �� T`' t f � - r a��ob �-��6�a��6 Agene shall review the application in light of guidelines and standards set forth herein and shall consult with the staff of the affected departments in the review of each precise plan. Upon completion of his or her review, the Chief Planner awe; : �rds Be shall submit the precise plan to the Planning Commission and shall recommend that the board approve, conditionally approve, disapprove, or suggest modifications to the precise plan. 8. Planning Commission Decision. The Agollp Planning Commission shall approve, conditionally approve, disapprove or suggest modification to the precise plan. No approval shall be unreasonably withheld by the Commissioner if the precise plan complies with the specific plan. The Planning Commission shall make the following findings in approving or conditionally approving a precise plan: a. The proposed precise plan is consistent with the Bay West Cove @Specific Plan d the owner participation agreement. b. The proposed precise plan is consistent with the City's General Plan. C. The proposed precise plan is consistent with the East of 101 Area Plan. 9. Changes to Approved Plans If significant changes to an approved precise plan are desired by the applicant, a revised precise plan shall be submitted and processed according to the procedures established herein for approval of the original precise plan. Revisions which are minor in nature, other than those applied as a conditional of approval, shall be reviewed and approved by the dwive pee£of=ef Chief Planner. 10. Expiration of ApprovaLAnv approved Precise Plan shall lapse and shall be deemed void: (a) two years after the date of its approval if a building permit has not been issued and/or construction has not commenced or has not proceeded with due diligence thereafter or (b) after a longer duration as oth i e rovided in an approved development agreement One extensions of the time may be granted _by the Planning Commission. Projects are subject to the phasing if any established for the buildings within the approved Precise Plan_ -23- STAFF REPORT Subject: Municipal Code Amendments Date: January 17, 2013 Page 6of8 3. Parcel map applications shall be processed in accordance with the standards and procedures identified in the City's subdivision ordinance with the RedewelepmeK4 Ag Example 2: Chapter 20.440 "Planning Agency" (6) Delete Section 20.440.003 — "Redevelopment Agency ", in its entirety, as follows: - - - - -- . , . ME -24- STAFF REPORT Subject: Municipal Code Amendments Date: January 17, 2013 Page 7 of 8 (7) Amend Section 20.440.004 — "Planning Commission ", as follows: The Planning Commission is established and organized pursuant to Chapter 2.56 ( "Planning Commission ") of the South San Francisco Municipal Code and the requirements of the California Government Code. The powers and duties of the Planning Commission under this Ordinance include, but are not limited to: D. Initiate, conduct hearings, and make recommendations to the City Council mmj=the on proposed Specific Plans and plan amendments pursuant to the provisions of Chapter 20.530 ( "Specific Plans and Plan Amendments "). E. Approve, conditionally approve, modify or deny Conditional Use Permits, Precise Plans fexcept within Terrabav Specific Plan District) and variances pursuant to the provisions of Chapter 20.490 ( "Use Permits "), and Chapter 20.500 ( "Variances "). G. Conduct hearings and make recommendations to the City Council on applications for preliminary development plans pursuant to the provisions of Chapter 20.140 ( "Planned Development District ") and Precise Plans within the Terrabay Specific Plan District ENVIRONMENTAL REVIEW In accordance with the California Environmental Quality Act (CEQA), the City's Zoning Ordinance Update consultant prepared. and circulated an Initial Study/Negative Declaration for the Zoning Ordinance Update, and in July of 2010, the Council adopted the Initial Study/Negative Declaration. The proposed changes and clarifications to remove all references to the redevelopment agency, for which the Commission is being asked to provide a recommendation to the City Council, are minor in nature and do not require any major revisions to the environment review or Initial Study/Negative Declaration prepared and circulated for the Zoning Ordinance Update (2010). Therefore, no further environmental review is required at this time. CONCLUSION In order to ensure that the City's Municipal Code, including the Zoning Ordinance, is consistent with State Law, staff is recommending the revisions included in the attached Resolution to remove all references to the Redevelopment Agency. Staff recommends that the Commission conduct a public hearing and adopt the attached Resolution which makes findings in support of the City Council adopting an Ordinance that addresses the dissolution of the Redevelopment Agency. -25- iM (7) Amend Section 20.440.004 — "Planning Commission ", as follows: The Planning Commission is established and organized pursuant to Chapter 2.56 ( "Planning Commission ") of the South San Francisco Municipal Code and the requirements of the California Government Code. The powers and duties of the Planning Commission under this Ordinance include, but are not limited to: D. Initiate, conduct hearings, and make recommendations to the City Council mmj=the on proposed Specific Plans and plan amendments pursuant to the provisions of Chapter 20.530 ( "Specific Plans and Plan Amendments "). E. Approve, conditionally approve, modify or deny Conditional Use Permits, Precise Plans fexcept within Terrabav Specific Plan District) and variances pursuant to the provisions of Chapter 20.490 ( "Use Permits "), and Chapter 20.500 ( "Variances "). G. Conduct hearings and make recommendations to the City Council on applications for preliminary development plans pursuant to the provisions of Chapter 20.140 ( "Planned Development District ") and Precise Plans within the Terrabay Specific Plan District ENVIRONMENTAL REVIEW In accordance with the California Environmental Quality Act (CEQA), the City's Zoning Ordinance Update consultant prepared. and circulated an Initial Study/Negative Declaration for the Zoning Ordinance Update, and in July of 2010, the Council adopted the Initial Study/Negative Declaration. The proposed changes and clarifications to remove all references to the redevelopment agency, for which the Commission is being asked to provide a recommendation to the City Council, are minor in nature and do not require any major revisions to the environment review or Initial Study/Negative Declaration prepared and circulated for the Zoning Ordinance Update (2010). Therefore, no further environmental review is required at this time. CONCLUSION In order to ensure that the City's Municipal Code, including the Zoning Ordinance, is consistent with State Law, staff is recommending the revisions included in the attached Resolution to remove all references to the Redevelopment Agency. Staff recommends that the Commission conduct a public hearing and adopt the attached Resolution which makes findings in support of the City Council adopting an Ordinance that addresses the dissolution of the Redevelopment Agency. -25- STAFF REPORT Subject: Municipal Code Amendments Date: January 17, 2013 Page 8 of 8 t By: Linda Ajello, AICP, Asso ate lanner Attachment: Draft Resolution — Recommendation to City Council o Exhibit A — Ordinance -26- Commission comments /questions: • The Commission asked if this was the same use as the Westborough sleep clinic. Associate Planner Ajello stated that it was same type of use but was not affiliated with the other facility. • The Commission stated their support for the project and their pleasure to have another in the community. • The Commission inquired about the typical time in which the patients arrive and depart. The applicant replied that the patients typically arrive between 8pm to 9pm and leave no later than 7am. • The Commission asked if patients can leave earlier than 7:00 am. The applicant responded that if enough data has been collected for the study, the patient can leave early. • The Commission asked how many shifts.per day and how many days per week they would be open. The applicant stated 1 shift/session a night, Monday through Friday, with 2 staff and up to 4 patients. They always have 1 technician for every 2 patients. • The Commission inquired whether the side light window replacement shown on the plans was like for like. The architect stated it was an in -kind replacement. Motion - -Vice Chairperson Ochsenhirt/Second -- Commissioner Prouty to approve P12- 0107:UP12 -0007. Approved by unanimous voice vote. Municipal Code Amendments - Dissolution of Redevelopment Agency City of South San Francisco -Owner /Applicant Citywide P07- 0136:ZA12 -0006 Zoning Ordinance Amendments making revisions related to the elimination of the Redevelopment Agency (RDA). Chairperson Zemke opened the public hearing and asked for the staff report. Associate Planner Ajello presented the staff report. Public hearing closed. Commission comments /questions: • The Commission questioned whether the approval bodies chosen to replace the RDA was the right approach and if they were comparable or do the processes need to be changed with regards to decision making issues. Chief Planner Kalkin stated that the approach has been to carry the same processes forward and only change the approval bodies due to the elimination of the Redevelopment Agency. Motion -- Commissioner Prouty /Second- -Vice Chairperson Ochsenhirt to adopt the resolution recommending that the City Council adopt an ordinance making revisions to the South San Francisco Municipal Code Title 20 related to the elimination of the Redevelopment Agency. Approved by unanimous voice vote. ADMINISTRATIVE BUSINESS 5. REORGANIZATION- Election of 2013 Planning Commission Chair and Vice Chairperson Motion -- Commissioner Prouty /Second -- Commissioner Giusti to nominate Vice Chairperson Ochsenhirt as the 2013 Planning Commission Chairperson. Approved by unanimous voice vote. Motion -- Commissioner Giusti /Second -- Commissioner Sim to nominate Commissioner Martin as 2013 Planning Commission Vice Chairperson. Approved by unanimous voice vote. Newly appointed Chairperson Ochsenhirt thanked the Commission for his 2013 appointment and presented the outgoing Chairperson Zemke with an appreciation plaque. Commissioner Zemke reflected on the last year and thanked the Commission and staff for their support and a great year. ITEMS FROM STAFF Chief Planner Kalkin invited the Commission, in the spirit of Healthy Communities, to indulge in a celebratory fruit platter after the meeting. January 17, 2013 Minutes -27- Page 2 of 4 RESOLUTION NO.2729_2013 PLANNING COMMISSION, CITY OF SOUTH SAN FRANCISCO STATE OF CALIFORNIA A RESOLUTION RECOMMENDING THAT THE CITY COUNCIL ADOPT AN ORDINANCE MAKING REVISIONS TO TITLE 20 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE, RELATED TO THE ELIMINATION OF REDEVELOPMENT AGENCIES WHEREAS, the California Legislature adopted, the Governor signed, and the California Supreme Court, in California Redevelopment Association, et al. v. Matosantos, (2012) 53 CalAth 231, upheld Assembly Bill xl 26 ( "ABx1 26 "); WHEREAS, pursuant to ABx1 26, all California redevelopment agencies were dissolved effective February 1, 2012; WHEREAS, pursuant to Resolution No. 8 -2012, adopted by the City Council on January 25, 2012, the City of South San Francisco ( "City ") agreed to serve as the successor agency to the Redevelopment Agency of the City of South San Francisco (the "Redevelopment Agency ") commencing upon the dissolution of the Redevelopment Agency on February 1, 2012; and WHEREAS, the City has identified areas of the South San Francisco Municipal Code that require refinement, clarification, and /or correction to reflect the elimination of redevelopment agencies, as further set forth in the Ordinance, attached hereto as Exhibit A; and WHEREAS, the South San Francisco Municipal Code requires that all Zoning Code amendments (Title 20) shall be first referred to the Planning Commission, which shall hold at least one public hearing on any proposed zoning code amendment and shall make a recommendation on the proposed zoning amendment to the City Council; and WHEREAS, pursuant to the California Environmental Quality Act ( "CEQA') the Initial Study/Negative Declaration for the Citywide Zoning Ordinance Update analyzed the environmental impacts of the Zoning Ordinance Update, including administrative review provisions, and these limited revisions to the Municipal Code related to the former Redevelopment Agency, are minor in nature and require no further CEQA review. NOW, THEREFORE, BE IT RESOLVED that based on the entirety of the record before it, which includes without limitation, CEQA and the CEQA Guidelines, 14 California Code of Regulations § 15000, et seq.; the South San Francisco General Plan and General Plan EIR; the South San Francisco General Plan Update and General Plan Update EIR; the South San Francisco Municipal Code, including the comprehensive Zoning Ordinance Update; all reports, minutes, and public testimony submitted as part of the Planning Commission's duly noticed meeting on January 17, 2013; and any other evidence (within the meaning of Public Resources -28- Code §21080(e) and §21082.2), the Planning Commission of the City of South San Francisco does hereby find as follows: The foregoing recitals are true and correct and made a part of this Resolution. 2. The documents and other material constituting the record for these proceedings are located at the Planning Division for the City of South San Francisco, 315 Maple Avenue, South San Francisco, CA 94080, and in the custody of Chief Planner, Susy Kalkin. NOW, THEREFORE, BE IT FURTHER RESOLVED, as related to Title 20 of the South San Francisco Municipal Code, that the Planning Commission hereby recommends that the South San Francisco City Council adopt an ordinance to remove references to the former Redevelopment Agency, and to update the South San Francisco Municipal code accordingly to reassign former Redevelopment Agency decision - making authority and actions, as set forth in the ordinance attached hereto as Exhibit A. BE IT FURTHER RESOLVED that the Resolution shall become effective immediately upon its passage and adoption. I hereby certify that the foregoing resolution was adopted by the Planning Commission of the City of South San Francisco at the regular meeting held on the 17th day of January, 2013 by the following vote: AYES: Chairperson Zemke Vice - Chairperson Ochsenhirt Commissioner Giusti Commissioner Martin, Commissioner Prouty and Commissioner Sim NOES: ABSTENTIONS: ABSENT: -29- Susy Kalkin Secretary to the Planning Commission 0 n ?� CO2 o oR� Staff Report DATE: February 13, 2013 TO: Honorable Mayor and City Council FROM: Jim Steele, Director of Finance SUBJECT: RESOLUTION APPROVING THE FOURTH AMENDMENT TO THE AGREEMENT FOR THE COLLECTION AND DISPOSAL OF SOLID WASTE IN THE CITY OF SOUTH SAN FRANCISCO WITH THE SOUTH SAN FRANCISCO SCAVENGER COMPANY RECOMMENDATION It is recommended that the City Council approve the attached resolution which approves an extension to the Franchise Agreement by the South San Francisco Scavenger Company for 20 years. BACKGROUND/DISCUS SION The City Council considered several options for entertaining a request from the South San Francisco Scavenger Company (Scavengers) to extend their Franchise Agreement for solid waste collection at the study session on January 8, 2013. That request was made to facilitate the Scavengers being able to obtain longer term financing for some major capital investments that they are going to be making in South San Francisco to, among other things, comply with additional environmental requirements, realize energy efficiencies, and reduce greenhouse gas emissions. More information on those investments was included in the January 8, 2013 staff report, which is attached for reference. After reviewing the materials also provided by the Scavengers at the January 8, 2013 meeting, the Council requested that staff come back with a resolution formally extending the terms of the Franchise Agreement. That action will allow the Scavengers to obtain financing in the next several months, and again in the future as they will need to invest in new technology on an ongoing basis. FISCAL IMPACT Rates are already covered by the current Franchise Agreement and are set at a rate not to exceed 95% of the average of 32 cities' rates specified in the agreement. This methodology ensures that City ratepayers receive refuse service at 5% below average rates. No fiscal impact will occur due Staff Report Subject: Resolution to extend the Term of the Franchise Agreement With the South San Francisco Scavenger Company Page 2 to the contract extension, but will facilitate the Scavengers obtaining better financing from their lenders. CONCLUSION The City Council has indicated that they concur that it is in the community's interest to grant the Scavengers a 20 year contract extension. By: 4�mne le D irector of Finance Attachments: - Resolution Approved: (/yL rL r Barry M. Nagel City Manager - Fourth Amendment to the Agreement with the South San Francisco Scavenger Company - January 8, 2013 Staff Report (without attachments) -1997 Franchise Agreement cc: Paul Formosa, South San Francisco Scavenger Company 7sBN:ed RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION APPROVING THE FOURTH AMENDMENT TO THE AGREEMENT FOR THE COLLECTION AND DISPOSAL OF SOLID WASTE MATTER IN THE CITY OF SOUTH SAN FRANCISCO WHEREAS, on July 9, 1997, the City of South San Francisco ( "City ") and South San Francisco Scavenger Company, Inc., entered into an agreement for collection and disposal of solid waste matter in the City ( "Agreement "); and WHEREAS, in 2001, 2002 and 2003, respectively, the City and South San Francisco Scavenger have amended the Agreement; and WHEREAS, the City and South San Francisco Scavenger now desire to further amend the Agreement by extending the term of the Agreement to a twenty (20) year term, that automatically extends for one (1) year every year. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council hereby approves of the Fourth Amendment to the Agreement for the Collection and Disposal of Solid Waste Matter in the City of South San Francisco with South San Francisco Scavenger Company, Inc., as set forth in Exhibit A, attached hereto. BE IT FURTHER RESOLVED that the City Manager is hereby authorized and directed to execute the Fourth Amendment on behalf of City of South San Francisco, subject to approval as to form by the City Attorney. 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 regular meeting held on the 13th day of February, 2013 by the following vote. AYES: NOES: ABSTAIN: ABSENT: ATTEST: Krista Martinelli City Clerk ri P2 Exhibit A FOURTH AMENDMENT TO THE AGREEMENT FOR THE COLLECTION AND DISPOSAL OF SOLID WASTE MATTER IN THE CITY OF SOUTH SAN FRANCISCO This Fourth Amendment dated , 2013 is made by and between the City of South San Francisco, a municipal corporation (hereinafter "City "), and South San Francisco Scavenger Company, Inc., a California corporation (hereinafter "Scavenger Company "), and amends that certain Agreement for the Collection and Disposal of Solid Waste in the City of South San Francisco dated July 9, 1997 by and between the City and the Scavenger Company, as previously amended (hereinafter the "Franchise Agreement "), with reference to the following: WHEREAS, the current term of the Franchise Agreement ends on October 31, 2017; and WHEREAS, there is a single optional extension provision in the Franchise Agreement which could extend its term for an additional ten years but which has not yet been exercised; and WHEREAS, the Scavenger Company has embarked upon a number of large capital projects which City and Scavenger Company believe will be of benefit to the citizens of South San Francisco and in some cases, are required by changes in state law; and WHEREAS, the Scavenger Company will need to seek a substantial amount of financing for those capital projects; and WHEREAS many of those capital projects have useful lives extending for many years beyond the current term of the Franchise Agreement even should it be extended as described above; and WHEREAS financing for such capital projects with principal repayment provisions extending through a term closer to those useful lives will keep the annual cost of financing those projects as low as possible for the Scavenger Company and the ratepayers of the City; and WHEREAS bank underwriting criteria generally requires that the term of any financing for solid waste, recycling and similar projects cannot extend past the expiration of any such exclusive franchise; and WHEREAS the parties hereto have determined that in order to allow development of the various capital projects described above and to assist the Scavenger Company in obtaining the lowest possible annual cost of financing therefor and resulting beneficial effect on the City's ratepayers, that the term of the Franchise Agreement should be extended and structured so as to provide the Scavenger Company and its lender with the ability to finance its beneficial projects now and in the future over periods closer to the useful lives of those projects; and WHEREAS the parties are not changing the provisions in Section 10 of the Franchise Agreement with respect to rights to terminate with cause, which provide ratepayers and customers adequate protections, even with the Franchise Agreement extension. THEREFORE, the City and the Scavenger Company in consideration of the above and other valuable consideration, receipt of which is hereby acknowledged do agree as follows: P3 A. Section 3 of the Franchise Agreement is hereby amended by striking it and replacing it in its entirety with the following: 3. Term. 3.1 The term of the Franchise Agreement shall be for a period of twenty (20) years, commencing on November 1, 2012 and ending on October 31, 2032. 3.2 Provided that Scavenger Company is in material compliance with the terms of this Franchise Agreement, the term of this Franchise Agreement shall be annually extended for one (1) additional year on October 31, 2013, and on October 31 of each succeeding year as determined by the City so that the remaining term of this Franchise Agreement shall be twenty (20) years. 3.3 The annual one (1) year extension described in Section 3.2 above may be terminated by either party in its sole discretion, without cause, by providing written notice to the other party ( "Notice of Non - Extension "). Such Notice of Non - Extension shall cause the one year extension described in Section 3.2 to not occur. Accordingly, the term of the Franchise Agreement shall end twenty (20) years from the date of the Notice of Non - Extension. B. Section 4 of the Franchise Agreement is hereby amended by adding the following Section 4.3 to read as follows: 4.3 Beginning July 1, 2013, the Scavenger Company shall remit to the City $15,000 each month as a Source Reduction and Recycling Element franchise fee ( "SRRE fee "), which the City may use for purposes related to, but not limited to, landfill monitoring, landfill remediation and/or reducing the City's stream of solid waste within the City of South San Francisco. (a) Each July 1 beginning on July 1, 2014, the $15,000 SRRE monthly fee will be adjusted by an amount equal to eighty percent (80 %) of the percentage increase, if any, in the Consumer Price Index for Urban Wage Earners and Clerical Workers, as published and maintained by the United States Bureau of Labor Statistics for the San Francisco - Oakland Metropolitan Area (1982 -84 =100) for the prior year, using the Index most recently published on or before March 31 st of such year and on or before the prior March 31 st. C. Section 6 of the Franchise Agreement is hereby amended by adding the following section 6.2(e) to read as follows: (e) Concurrently with the rate review materials submitted to the City as described in this Section, not later than March 31st, of each year that is subject to a rate increase, the Scavenger Company shall provide the City with an updated twenty (20) year capital master plan which outlines the Scavenger Company's capital investment needs and any other documents reasonably necessary to keep the City Council informed of the Scavenger Company's longer term investment plans consistent with the twenty (20) year Franchise Agreement term. D. Section 10 of the Franchise Agreement is hereby amended by striking Section 10.2 in its entirety and shall read as follows: 10.2 Reserved. As modified by this Fourth Amendment, the Franchise Agreement shall remain in full force and effect in accordance with its terms. In the event of any inconsistency between this Fourth Amendment and the Franchise Agreement, this Fourth Amendment shall prevail. IN WITNESS WHEREOF, the parties have executed this Fourth Amendment effective as of the date first set forth above. SOUTH SAN FRANCISCO SCAVENGER COMPANY, INC. LOW CITY OF SOUTH SAN FRANCISCO LE ATTEST: City Clerk APPROVED AS TO FORM: City Attorney 2046302.1 P4 P5 ,A", , 10. c n H G0 V O c�'F °gam Staff Report DATE: January 8, 2013 TO: Honorable Mayor and City Council FROM: Jim Steele, Director of Finance Terry White, Director of Public Works SUBJECT: STUDY SESSION TO CONSIDER A REQUEST FROM THE SOUTH SAN FRANCISCO SCAVENGER COMPANY FOR A FRANCHISE AGREEMENT EXTENSION RECOMMENDATION It is recommended that the City Council review, discuss, and provide direction to staff on a formal contract amendment request to extend the Franchise Agreement by the South San Francisco Scavenger Company for 20 years. This would facilitate their obtaining lower cost financing for major environmental investments they are about to undertake. BACKGROUND /DISCUSS ION The City Council approved an exclusive Franchise Agreement for collection and disposal of solid waste with the South San Francisco Scavenger Company (Scavengers) on July 9, 1997. That agreement is currently set to expire in 2017, with a single optional extension provision in the Franchise Agreement which could extend its term for an additional ten years, through 2027, just short of 15 years from now. Rather than seeking that option, the Scavengers is seeking a contract extension that facilitates their obtaining better loan/financing rates from banks that would allow them to invest in several environmental /energy saving initiatives in order to meet growing environmental requirements. The Scavengers will present these initiatives to the Council in more detail at the study session. A copy of their PowerPoint presentation is attached to this staff report. While a contract extension is being sought, there are still provisions in the Franchise Agreement that allows the City to cancel the contract with cause. Banks axe hesitant to lend money to solid waste companies for terms that exceed the remaining lives of their franchise contracts. For that reason, if the contract is not extended, the Scavengers would be looking at higher borrowing costs in order to obtain financing. That is the reason for their request for a contract extension. P6 Staff Report Subject: STUDY SESSION TO CONSIDER A REQUEST FROM THE SOUTH SAN FRANCISCO SCAVENGER COMPANY FOR A FRANCHISE AGREEMENT EXTENSION Page 2 The investments the Scavengers seek total in the millions of dollars and include grant funding to cover: Anaerobic Digestion System - creating renewable energy Renewable Biogenic Fueling Station - decreasing pollution and GHG emissions Upgrading Trucks and Equipment - decreasing pollution and GHG emissions Upgrading Our Material Recovery Facility - increase recycling CNG Fueling Station - decreasing pollution and GHG emissions Staff has met with the Scavengers several times, and recommends their contract be extended for 20 years for the following reasons: -the importance of technological investments they are seeking to make, -the good service that the Scavengers have provided to the community, -the comparatively lower rates and favorable contract terms the City enjoys with the Scavengers currently. The Council may recall that Scavenger rates are set every three years at a rate not to exceed 95% of the average of 32 cities' rates specified in the agreement. This methodology ensures that City ratepayers receive refuse service at 5% below average rates, and -the Scavengers have agreed to formally memorialize in their Franchise Agreement with a payment they have been making informally for years to the City. That payment is for a Source Reduction and Recycling Element franchise fee (SRRE fee), which has been paid for years at the rate of $14,443.75 per month. Staff has deposited those funds in a separate Solid Waste Fund, reported on that fund in the budget and the year end financial statements, and has used those funds (always appropriated through the budget process) to pay for such source reduction programs as monitoring the methane gas at the former Oyster Point landfill, paying for administrative costs associated with the Citywide garage sale, and most recently, paying for costs associated with reducing the City's record storage paper files, led by the City Clerk's office. The Scavengers have agreed to formally add $15,000 to their Franchise Agreement for this source reduction purpose for a monthly payment. Options: There are several policy options that the City Council could consider. They are: 1. Approve the Scavengers' request for a 20 year contract extension with an automatic rolling annual extension of one year. The Scavengers propose this as their most favorable option, in that it would give them certainty to approach banks for ongoing financing for their upcoming and ongoing capital improvement needs. Staff Report Subject: STUDY SESSION TO CONSIDER A REQUEST FROM THE SOUTH SAN FRANCISCO SCAVENGER COMPANY FOR A FRANCHISE AGREEMENT EXTENSION Page 3 2. Approve the Scavengers' request for a one time contract extension for 20 years. Staff recommends this option, as it allows the Scavengers to obtain the lower cost financing for their currently planned improvements. Staff believes it would be prudent to consider a contract extension periodically, for example every 3-•5 years rather than have an automatic annual renewal for 20 years. Such a periodic review would allow the Scavengers to update the Council on their longer term capital financing needs, after which a contract extension beyond the initial 20 years could be considered. 3. Consider the already negotiated I0 year extension through 2027. The Scavengers have indicated they believe they can obtain financing for this option, but a higher borrowing cost. 4. The Council could consider any number of other options, such as loaning the Scavengers the money for their investments directly at a rate lower than the bank might offer but higher than the City can earn on its investments. 5. Although not recommended, the Council always has the option of allowing the Franchise Agreement to expire as early as 2017 and soliciting proposals competitively on the market from the Scavengers and other solid waste companies. FISCAL IMPACT Rates are already covered by the current Franchise Agreement and are set at a rate not to exceed 95% of the average of 32 cities' rates specified in the agreement. This methodology ensures that City ratepayers receive refuse service at 5% below average rates. Staff does not expect any fiscal impact from approving the Scavengers' request. Denying their request would likely cause them to pay higher borrowing costs, as the loan they would get under a shorter contract would be for a shorter term and perhaps at a less attractive interest rate. CONCLUSION The City Council has a number of policy options to consider for extending the Scavengers' franchise. Staff believes it is in the community's interest to grant the Scaven 20 contract extension. BY: \,.,� '„ X111 &,r Jim Steele Director of Finance By: _.�• Terry White Director of lic Works Approved: _ r B M. Nagel City Manager gers a year P7 PS Staff Report Subject: STUDY SESSION TO CONSIDER A REQUEST FROM THE SOUTH SAN FRANCISCO SCAVENGER COMPANY FOR A FRANCHISE AGREEMENT EXTENSION Page 4 Attachments: 1. PowerPoint Presentation 2. Letter from Scavengers dated September 28, 2412 cc: Paul Formosa, South San Francisco Scavenger Company JSrTW/BN:ed AGREEMENT FOR THE COLLECTION AND DISPOSAL OF SOLID WASTE MATTER IN_ THE CITY OF SOUTH SAN FRANCISCO This Agreement, dated MdA 19 , 1997, is made by and between the City of South San Francisco, a mu icipa corporation (hereinafter "City "), and South San Francisco Scavenger Company, Inc., a California corporation (hereinafter "Scavenger Company', with reference to the following: WHEREAS, the Integrated Waste Management Act of 1989 ( "AB 939 ") requires that .City divert fifty percent (50%) of its waste stream from landfills by the year 2000; and WHEREAS, City and Scavenger Company have determined that the primary method for City to satisfy this requirement will be to increase the recycling and reuse of materials otherwise disposed of in landfills; and WHEREAS, the most contemporary public education and recycling programs, and a modern materials recovery facility capable of diverting greater amounts of solid waste, will be needed to accomplish such result; and WHEREAS, such new programs and facility will entail a significant, long -term financial investment; and WHEREAS, City desires for Scavenger Company to assume, and Scavenger Company is willing to assume, the obligation to ensure that compliance with the requirements of AB 939 is achieved, subject to-the terms and conditions in this Agreement and applicable law; and WHEREAS, City desires, and Scavenger Company is willing to provide, an indemnity, on the terms and conditions in this Agreement, agaimst penalties assessed for failure to meet the 50% diversion requirement under. 939; and WHEREAS, City desires to provide adequate, ongoin& service revenues. to fund the required programs and facilities while assuring City's residents and-businesses of service rates that are competitive with those charged in neighboring communities; and WHEREAS, Scavenger Company currently collects and disposes of solid waste matter accumulated in the it pursuant to an exclusive franchise agreement with City entitled AGREEMENT FOR THE COLLECTION AND DISPOSAL OF SOLID WASTE REFUSE IN THE CITY OF SOUTH SAN FRANCISCO and dated August 1, 1990 (hereinafter the "Prior Franchise Agreement "); and WHEREAS, Scavenger Company currently collects and sells recyclable materials enerated in City pursuant to an exclusive franchise a eement with Cit entitled AGREEMENT TO - PROVIDE RECYCLING SERVIC9 and dated July Y0, 1989 (hereinafter the "Prior Recycling Agreement "); and CITY CLERK CENTRAL RECOR06 FILE N06 r9 WHEREAS, the pparties wish to assure the health, safety and public welfare of the City's residents andbusinesses by providing efficient services for recycling and the collection and disposal of all solid waste generated in the City pursuant to the terms of a long -term agreement providing for competitive service rates; NOW, THEREFORE, the parties agree as follows: I . Franchise Grant. 1.1 City hereby grants to Scavenger Company, and Scavenger Company hereby accepts from City, the exclusive franchise right and privile e, subject only to Section 1.3 below, as City's Scavenger and Authorized Recycling nt under applicable law, to collect, remove, transport, recycle, compost and ispose of all solid waste generated in City in accordance with the provisions of City's laws and regulations ertainin to the accumulation, collection and removal thereof and any anplicable State and Meral statutes or administrative rules. 1.2 All solid waste collected by Scavenger Company pursuant to this Agreement shall become the property of Scavenger Company upon its possession thereof; provided that nothing in this section shall be deemed a waiver by City of its rights and duties under this Agreement. (a) To the extent permitted by applicable law, City agrees to take such steps as may be reasonably necessary to protect Scavenger Company's ownership of solid waste, including recyclable materials, placed at the curbside or designated collection location for collection by Scavenger Company under the terms of this Agreement. City and Scavenger Company shall also cooperate to protect Scavenger Company's exclusive rights to collect all solid waste, including recyclable materials, in accordance with the terms hereof, to the extent permitted by applicable law. 1.3 The franchise to collect, remove, transport, recycle, com� post and dispose of solid waste (including recyclable materials) granted to Scavengger Company hereunder shall, throughout the term hereof and in all respects, be exclusive, except as otherwise provided by applicable law and as follows: (a) recyclable materials and salvageable materials generated at any residential, commercial and industrial or institutional property that are source separated may be transported personally byy the generating person for donation to or collection by a collection or processing facility that has been duly approved and authorized as such by a governmental or other appropriate authority, including beverage containers recycled at authorized facilities under the California Beverage Container Recycling Litter Reduction Act; (b) recyclable materials and salvageable materials generated at any residential, commercial and industrial or institutional property that are source separated may be sold or donated by the generating person to any charitable entity; (c ) recyclable materials and salvageable mater s generated at any residential, commercial and industrial or institutional property at are source separated may be accumulated by the generating person for collection and collected 2 FILE NO. 511" P10 Pll by licensed junk collectors; (d) solid waste enerated at any residential, commercial and industrial, or institutional property maybe personally transported by the person generating same to any transfer station or materials recovery facility; (e) yard waste removed from a residential, commercial and industrial or institutional property by a gardening, landscaping or tree trimming contractor as an incidental part of a of service offered by such contractor, rather than as a hauling service, may be disposed of by such contractor at any licensed landfill, transfer station or materials recovery facility; (f) construction debris and demolition debris removed from a residential, commercial and industrial or institutional property by a licensed construction or demolition contractor using its own employees and equipment as an incidental part of a comprehensive service offered by such contractor, rather than as a hauling service, may be disposed of by such contractor at any transfer station or materials recovery facility; and (g) hazardous waste and household hazardous waste may be disposed of in any la manner. 1.4 Except as expressly provided herein, this Agreement shall supersede the Prior Franchise Agreement and the Prior Recycling Agreement as of the effective date set forth in Section 3 below, when such Prior Agreements shall cease to have any effect (except for periods prior to such effective date). In particular, the amount remaining in the balancing account under the Prior Franchise Agreement as of the effective date of the new franchise granted hereunder shall be eliminated without cost to City. 2. Definitions. 2.1 "Charitable entity" means any not -for- profit organization or entity maintained for community service, education or the public good, including service clubs, scouting organizations, religious and educational organizations and recognized charities. 2.2 "Collect" or "collection" means the collection, transportation, and removal of solid waste within and from City. 2.3 "Commercial and industrial property" means property upon which business activity is conducted, including but not limited to retail sales, services, wholesale operations, manufacturing and industrial operations, but excluding businesses conducted upon residential property whicfi are permitted under applicable zoning regulations and are not the primary use of the property. 2.4 "Construction debris" means construction materials generated during the construction or renovation of a residential, commercial and industrial or institutional property. ML.E No. S 120 2.5 "Containers" means any and all types of solid waste receptacles including but not limited to rectangular bins, cylindrical containers commonly available at retail stores for residential use, and any and all other kinds of receptacles, irrespective of size or shape. 2.6 "Demolition debris" means used construction materials generated during the razing or renovation of a residential, commercial and industrial or institutional property. 2.7 "Hazardous waste" means all substances defined as hazardous waste, acutel hazardous waste or extremely hazardous waste by the State of California, or identified as hazardous waste by the U.S. Environmental Protection Agency, under applicable laws or regulations. 2.8 "Household hazardous waste" means hazardous household waste generated at residential properties within the City. 2.9 "Institutional property" means the premises or site of any governmental entity, including city, county, state and/or federal buildings, public schools, colleges, and public recreational sites. 2.10 "Licensed ]'unk collector" means a person that is licensed with City to collect source separated recyclable materials and source separated salvageable materials from the person generating such materials in accordance with applicable law. 2.11 "Recyclable materials" means solid waste which maybe reused or processed into a form suitable for reuse through reprocessing or remanufacture consistent with the requirements of AB 939, including, without limitation, paper, newsprint, printed matter, pasteboard, paper containers, cardboard, glass, aluminum, PET, HDPE, and other plastics, beverage containers, compostable materials (including yard waste), and wood, brick and stone in reusable size and condition. Recyciab% materials shall include those items of construction debris and demolition debris which are described in this Section 2.11. 2.12 "Residential property' means property used for residential purposes, irrespective of whether such dwelling units are rental units or are owner - occupied. Complexes of four or more units, whether in a single structure, or connected structure, or series of structures may be subject to procedures and rates which differ from other lower density residential properties. 2.13 "Salvageable materials" means used articles capable of being restored or resold for reuse, in either case without reprocessing or remanufacture, including antiques, used building supplies and automobiles and automobile parts. Salvageable materials shall include those items of construction debris and demolition debris which are described in this Section 2.13. 2.14 "Solid waste" means all putrescible and nonputrescible residential refuse, commercial solid waste, institutional solid waste, garbage, yard waste and rubbish as defined in Public Resources Code Section 40191, including, without limitation, for 4 CENTRAL_ RECORD- FILE NO. %5 1,'L "I P12 the purposes of this Agreement construction debris, demolition debris, recyclable matenals and salvageable materials, but excluding hazardous waste and household hazardous waste. 2.15 "Source separated," as to recyclable materials, means recyclable materials that have been separated from solid waste that is not recyclable material and from all other types of recyclable materials by the person generating such solid waste or recyclable materials at the residential, commercial and industrial or institutional property where such solid waste or re clable materials are generated to form one readily identifiable category of recyclable material as set forth in Section 2.11 above that is saleable withoutTurther sorting. "Source separated," as to salvageable materials, means salvageable materials that have been separated from solid waste that is not salvageable material by the person generating such solid waste or salvageable materials at the residential, commercial and industrial or institutional property where such solid waste or salvageable materials are generated. (For example, cardboard that has been separated by a business from glass, PET plastic and wet garbage is source separated so long as the separation is accomplished by the generator at the commercial and industrial property where all of such items are generated and all of such items are generated by such business.) 2.16 "Yard waste" means tree trimmings, brass cuttings, dead plants, leaves, branches and dead trees (not more that six (6) inc -hes in diameter) and similar materials generated at a residential, commercial and industrial or institutional property. 3. I=. 3.1 The term of the franchise shall be for a period of twenty (20) years, commencing on the effective date of November 1, 1 997 and ending October 31, 2017. 3.2 Subject to Section 10.2 of this Agreement, Scavenger Company shall have one (1) option to extend this Agreement and the franchise granted - hereunder on the terms and conditions herein for a period of ten (10) years commencing November 1, 2017 and ending October 31, 2027' of Scavenger Company's exercise of such option must be 'ven at least six (6) months prior to October 31, 2007. City shall endeavor to notify Scavenger Company in writing of this deadline at least nine (9) months prior to October 31, 2007, provided that &t} s failure to do so shall not serve to extend the deadline. The option to extend hereunder may not be exercised unless Scavenger Company shall be in material compliance with the terms of this Agreement at the time of exercise and on October 31, 2017. 3.3 Prior to Scavenger Company's exercise of its option to extend, the parties shall meet to review the terms and conditions of this Agreement in light of changes in circumstances and conditions affecting the subject matter hereof that have occurred since the date hereof. Each party hereby agrees to use its best efforts to identify and agree to any modifications in such terms and conditions needed to fairly and reasonably address any such changes in circumstances and conditions. W C &,4TRAL RECORDS i<iLE No. ,,,'5 2-:1 -a P13 4. Franchise Fee. 4.1 On or before the twentieth (20th) day of each month during the term of this franchise, Scavenger Company shall remit to City a sum of money equal to seven percent (7%) of the gross revenues collected by Scavenger Company from customers within the City limits during the preceding calendar month as a franchise fee. If the franchise fee is not paid on or before the twentieth (20th) day of any month, a late payment fee in an amount equal to eighty -three one - hundredths of a ercent (0.83%) of the amount owing per month will be charged for each thirty (30) (fay period the franchise fee remains unpaid. 4.2 Each monthly remittance to City shall be accompanied by a statement detailing gross revenue of Scavenger Company from customers for the period covered operations erations conducted or permitted pursuant to this Agreement. In addition, Scavenger Company shall maintain copies of all billin&s and collection records for three (3) years following the date of billing for inspection and verification by City. 5. cervices. 5.1 Solid Waste. Scavenger Company shall collect and dispose of all solid waste (other than source separated recyclable materials, which are subject to Section 5.2 below) &enerated by any person at every residential, commercial and industrial, and institutional property within City at least once each week on a regularly scheduled day in accordance with this Agreement. 5.2 Lecyclable Materials. Scavenger Company shall collect all source separated recyclable materials generated by any person at every residential property (excluding multiple -unit residences) within City at least once each week on a regularly scheduled day in accordance with this Agreement, except that yard waste shall be collected from such properties at least once every two weeks. Scavenger Company shall collect all source separated recyclable materials generated by any person at every commercial and industrial, institutional and multiple -unit residential property within City upon a schedule established between Scavenger Company and each generating person (or the owner, landlord or property manager, in the case of multiple-unit residential properties), but not less equen y than is required to expeditiously collect such recyclable materials, without creating storage, health, or safety hazards. (a) Scavenger Com any may refuse to collect recyclable materials generated by, and shall not be ob�igated to continue to provide any recycling receptacle or container to, any person who after reasonable warning, fails to sort recyclable materials properly, or fails or refuses to allow Scavenger Company to collect, on an exclusive basis, said person's recyclable materials. Scavengger Company shall report to City any warning notices issued by Scavenger Company for this purpose, and City shall investigate same to determine whether the person receiving the notice has violated the applicable ordinance. 5.3 han e • M' . Scavenger Company shall not alter or adjust collection services without providing prior notice to all service addresses, and any schedule modifications shall not result in reduced service frequency to any customer. 0 CENTRAL RECORDS InLE No. _'5 !- o . . P14 Scavenger Company shall collect and remove solid waste and recyclable materials from any premises missed" or "skipped" during the regularly scheduled time, within one (1) working day after demand for collection is made by the customer or City. 5.4 Containers -Solid Waste. Scaven�er Company shall collect solid waste from containers of a size and weight customan y sold for use upon residential property and which, when filled, are safely capable of being handled by one person, provided that such containers have lids capable of preventing solid waste from spillingg out under normal circumstances. Nothing in this section shall be deemed to reclude the use of bins or other containers of a size and shape acceptable to cavenger Company and, in the event City and Scavenger Company shall institute new programs hereunder which require bins or other containers of a particular size and shape, customers on residential properties shall use bins or other containers meeting such requirements. 5.5 Containers-Recvclable Materials. (a) Singl„c,_Uni Residential. Scavenger Company shall provide and distribute one set of residential recycling containers, at no cost in addition to the monthly rates, to each residential property (other than multiple -unit residential properties) in City. The recycling containers are those containers described in the attached Schedule 1, entitled "Recycling Containers," or other similar containers mutually agreed upon by Scavenger Company and City. The cost of supplying such recycling containers shall be borne by Scavenger Company, at no cost in addition to the monthly rates. (i) Replacement of Containers. The parties acknowledge that from time to time a single it residential generator may damage or destroy the recycling containers supplied by Scavenger Company, and that such unusual loss or damage would not be considered within the reasonable control of the residential generator. Scavenger Company agrees that it will encourage the residential generator to replace said recycling containers at the expense of the residential generator. To this end, Scavenger Company shall make sets of three (3) such recycling containers available for purchase by any single unit residential generator at a price not to exceed the prevailing cost to Scavenger Company. The parties also acknowledge that from time to time residential recycling containers may be stolen from the curb. When notified of such occurrence, Scavenger Company shall replace, at no charge to the single unit residential generator, not more than a reasonable number of times, the stolen container(s). The frequency with which this shall occur shall be determined mutually between City and Scavenger Company. Followin the distribution of a recycling container to each single unit residential property, Scavenger Company shall not be required to purchase or provide additional recycling containers to such property unless requested to do sob City, or as replacement containers are needed by a residential generator because of unusual loss or damage beyond the reasonable control of the resident as described above. In the event City requests Scavenger Company to provide additional single unit residential recycling containers, the cost of the containers and the distribution thereof shall be borne by City, except as provided above. (b) Multiple-LIWt Residential. CoMmercial and-In. 5titutional. Scavenger Company shall also make available recycling containers for each 7 CENTRAL RECORDS FILE No. S jZ'L P15 multiple -unit residential, each commercial and industrial and each institutional property, within City of a size and shape suitable for each such location. The cost of supplying, repairing, and replacing such recycling containers shall be borne by Scavenger Company. (c) Ownership. The ownership of all recycling containers purchased by Scavenger Company under this Agreement shall be and remain with Scavenger Company. 5.6 Personnel and Equipment. Scavenger Company shall furnish the personnel, labor and equipment required for the collection, removal, handling and disposal of all solid waste generated within the corporate limits of the City. 5.7 ! F-cilities. Scavenger Company shall haul all solid waste collected by it in City to the existing transfer station operated by Blue Line Transfer, Inc., a related party entity. As soon as the Blue Line Transfer, Inc. relocated transfer station and materials recovery facility referred to in the Recitals above are operational, Scavenger Company shall haul all solid waste collected by it in City to such facility. All of such solid waste that is neither recyclable nor salvageable shall be hauled to a licensed and suitable disposal facility (i.e., landfill) located outside City selected by Scavenger Com any. In the event that such a disposal facility is not readily available due to no fault of Scavenger Company, or due to events beyond the control of Scavenger Company, such as acts of God, public emergency, strike or lockout by employees of another entity, Scavenger Company shall use its best efforts to locate such a disposal facility, but shall not be held liable to the extent that such lack of disposal facility prevents the hauling of solid waste to a site outside City. 5.8 Local Office. Scavenger Company shall maintain an office where service may be applied for and complaints made. The address and telephone number of such office shall regularly be included in customer billings and service information distributed to the public. Scavenger Company's office shall have a responsible individual available daily between the hours of eight o'clock a.m. and five o'clock p.m:, excepting Saturday, Sunday and holidays. Calls for "missed" collections shall be received 24 hours per day. 5.9 - Fa ' i ' . Scavenger Company shall remove, without charge, all solid waste generated at all City facilities (of the nature and in the amounts currently collected) at least once per week, but Scavenger Company may charge all other public agencies for services rendered at the same rates and on the same basis as private firms or individuals are charged for similar services. 5.10 u -1Qt de Clean--Tj-p. Scavenger Company shall provide one annual free all purpose City-wide collection, at which it will accept all nature of solid waste, except hazardous waste and household hazardous waste. The dates for such collections shall be publicized in advance by Scavenger Company. The collection shall be made each year throughout the term of this franchise in accordance with practices and procedures established by Scavenger Company, and approved by the ity Manager. 5.11 Additional Servdces. Scavenger Company shall provide additional 8 CENTRAL RECORDS FILA No. '5 Z`i1 P16 services upon request of City, or upon the proposal of Scavenger Company as approved by City pursuant to Section 5.13 below, subject, if the costs incurred by Scavenger Company to provide such services increase, to the establishment by mutual written agreement of a reasonable rate therefor. 5.12 Permits and Licenses. Scavenger Company shall obtain and maintain throughout the term of the franchise all permits, licenses and approvals necessary or required for Scavenger Company to erform the work and services described herein. City shall cooperate with Scavenger coin any in connection with such permits, licenses and approvals, and shall renew ail such permits, licenses and approvals issued by City, provided that Scavenger Company is not in material breach of-this Agreement and provided Scavenger Company shall have fulfilled all existing requirements for the renewal of such permits, licenses and approvals. 5.13 Diversion Rem. (a) a ms: AB G'zG C-m-lianceAndemnifiration. In order to achieve compliance witfi the fifty percent (50%) or, if applicable, lesser diversion requirement of AB 939, Scavenger Company shall propose and implement various recycling, solid waste reduction, public education and reporting programs for City and its residents, including the basic elements set forth in Exhibit " " attached to this Agreement. ( ScavenZer Company shall continue to propose and implement new or improved programs or so long as compliance with AB 939's diversion requirements is legally required.) Subject to the conditions set forth in Section 5.13(b) below, Scavenger Company hereby agrees (I ) to divert the percentage of the City's solid waste, and perform such other actions, as necessary to achieve compliance with the requirements of AB 939 as it may be amended from time to time; and (ii) to protect, defend and indemnify City and its. Council, boards, commissions, officers, agents, representatives and employees aganst all fines or penalties imposed, after reasonable contest, by the California lutegrated Waste Management Board as the result of the failure to meet such 50% or, ifapplicable, any lesser percentage diversion requirement imposed under AB 939 as it may be amended from time to time; provided, that Scavenger Company is given the opportunity to jointly control the contest of any such fines and/or penalties so imposed with City. (b) CilyrResponsibilities. Other Factors. Notwithstanding any other provision in this Agreement, Scavenger Company's obligations pursuant to Section 5.13(a), above, relating to AB 939 compliance and indemnification shall depend upon: (I) City taking all actions necessary to implement programs and adopt reasonable rate increases as proposed by Scavenger Company in accordance herewith; (ii) City considering, enacting, administering, and enforcing appropriate laws, regulations, incentives and sanctions necessary to assure the exclusive nature of Scavenger Company's franchise rights hereunder and to gain the waste diversion participation of residential properties, commercial and industrial properties and institutional properties within City as deemed reasonably necessary to ensure diversion goal compliance; (iii) The fines or penalties which Live rise to such indemnification obligations, or the failure to achieve ) B 939 compliance, not 9 C&-. N YRAL REWRDS FILE P, 12n- P17 resulting from the negligent or willful acts or omissions of City (excluding for this purpose any negligent or willful acts or omissions by Scavenger Company that would be imputed to City); (iv) Scavenger Company not being required by City or by a change in applicable law or regulation to cease performing any of its recycling or other services which contribute to landfill diversion; and (v) There being no change in any applicable law or regulation which materially impairs Scavenger Company's ability to find bona fide end users of recyclable materials. (c ) Unforeseeable fir umm5tances. In the event that Scavenger Company shall have used its best efforts consistent with Exhibit "A" to ensure that the 50% (or lesser) diversion requirement of AB 939 is achieved, but shall determine that such requirement may nonetheless not be satisfied, Scavenger Company shall ve City prompt written notice of such determination. City and Scavenger ompany shall then meet promptly to decide whether to increase rates beyond the rates called for in Section 6 below to fund additional efforts which were unforeseeable on the date hereof and which Scavenger Company has reasonably not undertaken to date (excluding any residential yard waste program, and excluding the construction and operation o£ a new materials recovery facility in a commercially reasonable manner for the purpose of achieving compliance with AB 939's diversion requirements) to satisfy such diversion requirement, provided that, if City is unwilling to do so, Scavenger Company shall be relieved of its AB 939 compliance and indemnification obligations set forth in Section 5.13(a) above. 6. Rates. 6.1 Establishment of Bad. The maximum service rates specified in Exhibit "B" to this Agreement have been agreed upon by City and Scavenger Company and shall take effect on the effective date of the franchise as set forth in Section 3 above. Such maximum service rates shall be subject to review and revision as set forth in Sections 6.2, 6.3 and 6.4 below. Scavenger Company shall not charge any amount in excess of the approved rates for services required by or permitted under this Agreement. 6.2 Modification Based on Consumer Pricc Index. The maximum rates specified under this Agreement shall be increased July 1 st every year (beginning in 1998, but excluding tRe ear 2000 and every third year thereafter) by an amount equal to eighty percent ($0°�O) of the percentage increase, if any, in the Consumer Price Index for Urban Wage Earners and Clerical Workers, as published and maintained b the United -States -Bureau of labor Statistics for the San Francisco - Oakland Metropolitan Area (1982 -84 =100), for the prior year, using the Index most recentlyy ppublished before March 31 st of such year and before the prior March 31st; provided, however, that, in 1998, the maximum rates set forth on Exhibit "B" shall be adjusted by the percentage increase in the Index for the prior seventeen (17) months, usin the Index most recently published before March 31, 1998 and before November , 1996. The procedure for rate adjustments under this Section 6.2 shall be as follows. (a) Not later than March 31st of each year that is subject to a rate increase under this Section 6.2, Scavenger Company shall file with City a written 10 CENTRAL RECORDS FILE NO.., 5 2am-] Pis Notice of Intention to adjust each of the then current maximum rates effective as of July 1 st of the same year by the above - specified percentage of the percentage increase in the Index for the applicable period. (b) Within thirty (30) days of the filing of the Notice of Intention, the City Manager shall review the Notice of Intention, and either confirm that the proposed maximum rates are within the limit of Section 6.2(a) above or establish by mutual agreement with Scavenger Company any necessary changes to the proposed maximum rates to make such confirmation. (c) The City Manager shall immediately inform the City Council in writing of the new maximum rates determined in accordance with this Section 6.2 and, not later than June 30th of the year of the Notice of Intention, the City Council shall act upon the new maximum rates as appropriate, with any new maximum rates to become effective on July 1 st of the same year. (d) In the event that the Consumer Price Index described in Section 6.2(a) above shall be discontinued or materially modified during the term of the franchise, the parties shall use their best efforts to substitute a replacement index and/or otherwise change Section 6.2 (a) above so as to replicate, as nearly as possible, the mutual intention of the parties to rely on the results of the Consumer Price Index described in Section 6.2(a) as in effect on the date hereof. 6.3 ExtraordiLlaxy Items. In addition to adjustments under Sections 6.2 above and 6.4 below, the maximum rates hereunder shall be subject to increase or decrease to reflect extraordinary increases or decreases in Scavenger Company's costs of providing services hereunder, such as landfill or disposal costs, costs mandated by governmental action or judicial decisions, franchise fees and similar items. Increases or decreases in maximum rates pursuant to this Section 6.3 shall take effect so as to eliminate, to the maximum extent possible, Scavenger Company's loss or gain of revenue and/or profit resulting from the extraordinary increase or decrease in costs from the date(s) such increase or decrease first occurred. 6.4 MQdification Based on Neighboring Cities' Rates. Irrespective of any adjustments to maximum rates pursuant to Sections 6.2 and/or 6.3 above, every maximum service rate applicable under this Agreement shall be adjusted effective as of July 1 in each of the years 2000 and every thirdyear thereafter (I) in the case of each of the service categories set forth in Exhibit "C" attached to this Agreement, not to exceed ninety -five percent (95%) of the average of the most current rates for such service category charged in the jurisdictions set forth in Exhibit "D ", and (ii) in the case of every other service category not set forth on Exhibit "C ", to equal an amount reasonably arrived at by extrapolating from the new rates determined in accordance with Section 6.4(I) above. The most current rate charged in each jurisdiction listed in Exhibit "D" for a service category listed in Exhibit "(f' shall mean the rate that applies as of the date Scavenger Company files the Notice of Intention described in Section 6.4(a), below, and shall be based on the actual published rate for a period including such date. The average of the most current rates for a particular service categoroisted on Exhibit "C" shall be determined by adding all the most current rates for such service category, and dividing by the number of jurisdictions set forth in Exhibit "D". The procedure for rate adjustments under this Section 6.4 shall be as follows. (a) Not later than March 31 st of each year that is subject to a rate adjustment under this Section 6.4, Scavenger Company shall file with City a written 11 7 RAL RECORDS ,:31E NO. Z' P19 Notice of Intention to adjust, effective as of July 1 st of the same ear, each of the then current maximum service rates in accordance with Section 6.4 above. (1) An example of such calculation for an Exhibit "C" service category and for a related service sate ory not listed in Exhibit "C" is as follows: if the total of the most current rates in the applicable jurisdictions, which number thirty -two (32), for weekly 2 -yard commercial front end loader service per month as of March 31, 2000 were $4,480, Scavenger Company's Notice of Intention for July 1, 2000 would specify $133 [$4,4$0 divided by 32 multiplied by _95] as the new maximum rate for such service category, and could specify $266 for weekly 4- yard commercial front end loader service per month. (b) Within thirty (30) days of the filing of the Notice of Intention, the City Manager shall review the Notice of Intention, and either confirm that the proposed maximum rates conform with Section 6.4 above, or meet with Scavenger ompany to establish by mutual agreement with. Scavenger Company any necessary changes to the proposed maximum rates to make such confirmation. (c ) The City Manager shall immediately inform the City. Council in writing of the new maximum rates determined in accordance with this Section 6.4 , and, not later than June 30th of the year of the Notice of Intention, the City Council shall act upon the new maximum rates as appropriate, with any new maximum rates to become effective on July 1 st of the same year. (d) From time to time during the term of the franchise, but at least eve seven (7) years after the beginning of such term, City and Scavenger Company shall to review the list of jurisdictions set forth in Exhibit "D" for the purpose of assuring hat the services and rate structures in such jurisdictions are comparable to those of Scavenger Company in City. Such comparison shall take into account such factors as each party reasonably believes to be relevant, including hose set forth in Exhibit "E" attached to this Agreement. Any change to the jurisdictions set forth in Exhibit "D" shall require the consent of each party, which consent shall not be unreasonably withheld. 7.1 Scavenger Company shall use in connection with transportation of solid waste modern motor dump trucks with water tight bodies, sufficient in number and capacity to efficiently perform the work re qquired by the Agreement. Scavenger Company shall keep the outside of the truck bodies free from dirt and filth, and shall clean the inside of the trucks in a sanitary manner on a. regular basis. Suitable measures shall be taken to prevent refuse from falling into public streets or places. Scavenger Company shall keep all trucks freshly painted in a uniform manner, and the firm name, telephone number, and truck number of each truck shall appear on each side thereof in a conspicuous manner. Scavenger Company shall keep all trucks in good maintenance and repair, regularly inspect same, and keep accurate records of all vehicle maintenance. Scavenger Com any shall also be responsible for causing Blue Line Transfer, Inc. to maintain all o� its equipment and vehicles in safe and sanitary condition in accordance with the standards set forth for Scavenger Company's vehicles in this Section 7.1. 7.2 Scavenger Company shall notlitter premises in the rocess of making collections nor allow refuse to blow or fall from any vehicle used for collections. Scavenger Company shall clean -up any and all spills, including oil and debris on the 12 FILE NO. CS'i.'L� -= P20 streets, resulting from its operations. Should Scavenger Company fail to promptly clean up such spills resulting rom its operations after notice from Cit)r, Scavenger Company shall-be liable to City for all reasonable costs incurred by City in doing so. 7.3 Scavenger Company shall provide suitable operational and safety training for all of its employees who utilize or operate vehicles or equipment for collection of solid waste or who are otherwise directly involved in such collection. Scavenger Company shall use its best efforts to assure that all employees present a neat appearance, conduct themselves in a courteous manner, and perform the work as quietly as possible. Scaven er Company shall also designate one or more qualified employees as supervisors of weld operations, who will devote a substantial portion of their time in the field checking on collection operations, including responding to complaints. I ' a - Qlk - - OINK 8.1 Scavenger Company shall keep and maintain accurate books and records clearly showing its revenues and expenses in connection with the operations provided for in this Agreement. 8.2 Each fiscal year of Scavenger Company, commencing with fiscal year 1997 -98, Scavenger Company shall provide City, within ninety (90) days of Scavenger Company's fiscal year -end, a copy of its annual audited financial statements and management letter for that fiscal year, provided the City Manager may grant an extension of thirty (30) days. Such financial statements shall include a supplemental combining schedule showing Scavenger Company's results of operations by franchise area, including the specific revenues and expenses in connection with the operations provided for in this Agreement and others included in such financial statements. The financial statements and supplemental schedule shall be prepared in accordance with generally accepted accounting principles (GAAP) and audited, in accordance with nerally accepted auditing standards (GARS), by a certified public accountant (M) licensed (in good standin) to practice public accounting in the State of California as determined by the State of California Department of Consumer Affairs Board of Accountancy. The CPA's opinion on Scavenger Company's annual financial statements and supplemental schedule shall be unqualified, except as to uncertainties for which the ultimate outcome cannot be determined by the date of the CPA's opinion. Scavenger Company shall, in its agreement with the CPA its annual audit referred to above, have its CPA make available to City (or City's designated representative) such CPA's working papers related to the audit. Scavenger Company shall make available to City such of its additional records, information or reports, as requested by City from time -to -time upon reasonable notice by City. 8.3 Scavenger Company agrees that the records of any and all related party entities including but not limited to Blue Line Transfer, Inc. but excluding Royal Salvage Company shall be made available to City (or City's designated representative) so long as the related party entity does business with Scavenger Company and, in 13 RECOR'og ax P21 general, is associated with the removal and disposal of solid waste or recyclable materials. As part of the annual audit requirement described in Section 8.2, Scavenger Company shall provide City, within ninety (90) days of Blue Line Transfer, Inc.'s fiscal year -end, a copy of Blue Line Transfer, Inc.'s annual audited financial statements and management letter for that fiscal year, provided the City Manager may grant an extension of thirty (30) days. The financial statements shall be prepared in accordance with GAAP and audited, in accordance with GARS, by a certified public accountant (CPA) licensed in the State of Califomia as determined by the State of California Department of Consumer Affairs Board of Accountancy. The CPA's opinion on Blue Line Transfer, Inc.'s annual financial statements shall be unqualified, except as to uncertainties for which the ultimate outcome cannot be determined by the date of the CPA's opinion. Blue Line Transfer, Inc. shall, in its agreement with the CPA performing its annual audit referred to above, have its CPA make available to City (or City's designated representative) such CPA's working papers related to the audit. For urposes of this Section 8.3, "related party entity" shall mean any entity the majority of which is owned or effectively controlled by one or more of the resent and former shareholders, directors, officers or senior management employees op Scavenger Company or their families. 8.4 Every three (3) months during the period from the commencement of the franchise through the date which applies for purposes of measuring compliance with the diversion requirements of AB x'39, Scavenger Company shall supply City with a written report setting forth Scavenger Company's best estimate or we diversion rate as of the end of the most recent month. Scavenger Company shall also supply City with such related information as City may reasonably request and as Scavenger Company possesses concerning such estimate. 9. Hold Harmle5s and 9.1 Scavenger Company shall indemnify and hold harmless City, its Council, boards, commissions, officers, agents, representatives and employees from any and all actions, claims or damages brought for or on account of injuries to or death of any person or damage to property resulting from or arising out of the operations of Scavenger Compareyy, is officers, agents, employees or servants pursuant to this Agreement. The duty of 5caven�r Company to indemnify and hold harmless shall include the duty to defend as set orth in California Civil Code Section 2778. 9.2 Scavenger Company shall have in effect during the term of the franchise, workers' compensation and employer liability insurance providing full statutory coverage. In signing this Agreement, Scavenger Company makes the following certification required by Section 1861 of the California Labor Code. "I am aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability of workers' compensation or to undertake self- insurance in accordance with the provisions of the code, and I will comply with such provisions before commencing the performance of the work of this Agreement." 14 CENTRAL RECORi*-' �'a FILE rta 2a =— , P22 9.3 Scavenger Compare shall take out and maintain during he term of the franchise liability insurance for the following types and minimum amounts: (a) General liability, including comprehensive form, premises operations, products/completed operations, hazard, contractual insurance, broad form property damage, independent contractors and personal liability, with limits for bodily and property damage combined of $500,00 each occurrence and $500,000 aggregate. (b) Automobile liability, including comprehensive form, owned, hired and non - owned, with a limit of $1,000,000 f1 and injury and property damage combined. (c ) Excess liability, umbrella form, with a limit for bodily in ury and property damage combined of $5;000,000 each occurrence and $5,000,00 agre ate. Insurance certificates evidencing the required coverage shall be filed wiih �ty and shall be subject to approval by the City Attorney. City, its City Council, boards, commissions, officers, agents and employees shall be named as additional insureds on any such policies of insurance which shall, also contain a provision that the insurance afforded thereby sha11 be primary. No such policy shall be canceled or modified except upon thirty (30) days' prior written notice to City. 10. Franchise :Eenuilaation. 10.1 In the event Scavenger Company defaults in the performance of any of the duties to be performed by it under the terms of this Agreement, City shall give Scavenger Company written notice, either by mail or by personal service, settin forth the default. Scavenger Company shall correct such default within fifteen f15) days after receipt of such notice unless the default cannot, by its nature, be cured within said period, in which case the cure period shall be extended for such additional time as is reasonably necessary to effect a cure, provided that Scavenger Company shall commence efforts to effect a cure as soon as practicable and shall diliggentlyy pursue the cure. If Scavenger Company fails, neglects or refuses for the a �licable cure period to correct any default which constitutes a material breach of MEAgreement, then City, without further notice and without suit or other Chingmay cancel and annul the rights and privileges of the franchise grant. Nothing in this section shall prohibit the parties from meeting to discuss ways to resolve the issue. 10.2 Notwithstanding Section 10.1, above, the sole remedy for Scavenger Company's failure to divert the percentage of the City's solid waste, and/or perform such other actions, as necessary to achieve compliance with the requirements of AB 939 as it may be amended from time to time, shall be as set forth in this Section 10.2. Provided that all the conditions to Scavenger Company's AB 939 compliance obligation set forth in Section 5.13(b), above, shall have been satisfied, and City shall have suffered material harm as the result of such failure by Scavengeer Company to achieve compliance, Scavenger Com any's abilit to exercise its option to extend the term of this Agreement for an additional ten (10)� years, under Section 3.2, shall be subject to approval by City, and such circumstances shall constitute the sole permissible ground for City to deny a requested extension of this Agreement under this Section 10.2. 15 CENTRAL. RECORDS FlLB M P23 10.3 In the event of termination of this Agreement for default by Scavenger Company as above specified, City shall have the right forthwith to grant a franchise to another scavenger service or to take possession of trucks and other equipment of Scavenger Company used to perform work under this Agreement. City shall have the right to retain possession of the trucks and equipment until other suitable trucks and equipment can be purchased or otherwise acquired by City for the purpose and City shah pay Scavenger Company the reasonable rental value of such trucks and equipment, and Kee them in good maintenance and repair, during the time the same are used b City. C�ty shall also have access to Scavenger Company's records for the purpose o7billing service accounts during the period City is providing the services described in this Agreement, and shall retain all fees collected for such services. 10.4 In the event of any dispute arising between the parties under this Agreement, the parties shall first submit such dispute to non - binding mediation before a recognized mediator having experience with contracts like the Agreement and that is mutually acceptable to the parties, provided that neither party shall unreasonably withhold its acceptance. If the parties are unable, after a period of thirty (30) days, to agree on a mediator, either party shall be entitled to petition a court of competent jurisdiction to appoint such a mediator for the parties. Each party shall bear its own costs, including. attorney's fees, incurred in connection with the mediation. If the mediation does not result in a resolution of the dispute that is acceptable to both parties, either party may institute litigation. The prevailing party in such litigation shall be entitled to recover from the other party its reasonable attorney's tees, costs and necessary disbursements, including expert witness fees, incurred in such litigation. 10.5 If Scavenger Company shall at any time during the term of this Agreement or any extension thereof, become insolvent, or if proceedin in bankruptcy shall be instituted by or against Scavenger Com pany, or ifcavenger Company shall be adjudged bankrupt or insolvent by any Court, or if a receiver or trustee in bankruptcy or a receiver of any property by Scavenger Company shall be appointed in any suit or proceeding brought by or against the Scavenger Company, or if Scavenger Company shall make an asst nment for the benefit of creditors, then and in each and every such case, and provided that such proceedings, adjudication, appointment or assignment, as the case may be, continue in effect for ninety (90) days without being vacated, removed or withdrawn, this Agreement shall immediately cease and come to an end, and the rights and privileges granted shall immediately be canceled and annulled without notice. or action required on behalf of City. 10.6 Notwithstanding any other provision herein, no default, delay or failure to perform on the part of either party shall be considered a breach hereunder if such default, delay or failure to perform is due to causes beyond such party's control, including, but not limited to, riots, civil disturbances, actions or inactions of governmental authorities, epidemic, war, embargoes, severe weather, fire, earthquake, acts of God, defaults by the other party, or defaults by carriers. In the event of any such default, delay or failure to perform, any dates or times by which the affected party otherwise is scheduled to perform shall be extended for a period of time equal in duration to the additional time required because of the excused default, delay or failure to perform. 16 — ....-a l r : AL RECORDS FILe 140. �2"L P24 ] 1. AssiWament. 11.1 Scavenger Company shall not assign this Agreement, or any interest therein, without the written consent of the City Council. City may review the competency and financial integrity of the proposed assignee. A consent to one assignment shall not be deemed to be a consent to any subsequent assignment. Any assignment without such consent and approval shall be void and shall at the option of City, terminate this Agreement. City shall be notified of any stock transaction in which an existing stockholder transfers, sells or otherwise relinquishes majority interest in his or her stock in Scavenger Company. Any stock transaction involving transfer, sale or exchange of stock which results in a change in majority control of Scavenger Company shall be subject to City review and approval. 12. W . 12.1 The waiver by either party of any breach or violation of any term or condition of this Agreement or of any provision of law by the other party, shall not be deemed to be a waiver of the term, condition or provision of law, or of any subsequent breach or violation of the same or any other term, condition or provision of law. The acceptance by City of any franchise fee or other fee or other monies which may become due hereunder to City shall not be deemed to be a waiver of any preceding breach or violation by Scavenger Company. 13. 13.1 The administration and enforcement of this Agreement shall be the responsibility of the City Manager or a designated representative of that office. This section is not intended to indicate or suggest the City Manager has the authority to grant, amend, or revoke the franchise. 13.5 Termination of Blw Line Tunsfer Statign Within one year of commencement of operation of a new facility designed to handle waste transfer and AB 939 diversion requirements, including but not limited to a materials recovery facility or compliance with applicable diversion requirements of AB 939 through actions other than construction of a new facility, whichever occurs first, Blue Line Transfer Incorporated shall terminate operation of the transfer station it operates on Oyster Point Boulevard in South San Francisco. �I 'J _Tz=t11l47&O= 14.1 Scavenger Company, its employees and agents, are independent contractors and not employees or agents of City, 17 CENTRAL RECORDS F11..E NO. 21- -,� P25 15. Notices. 15.1 All notices required hereunder shall be in writing and shall be delivered in person or transmitted by the United States Postal Service, certified mail, postage prepaid, and addressed as follows: CITY: City Manager City Hall P.O. Box 711 South San Francisco, CA 94083 SCAVENGER COMPANY: President South San Francisco Scavenger Co. P.O. Box 348 South San Francisco, CA 94080 or to such other erson or address as may be specified from time to time in writingg by either party. Each such notice shall be deemed effective upon receipt or, if mailedas aforesaid, three (3) days after so mailed. 16. Amendmellts. 16.1 This Agreement may be amended from time to time only by written agreement between the parties signed by an authorized representative of each party. 17. Successors and Assigns. 17.1 This Agreement shall be binding u on, and shall inure to the benefit of, each of the permitted successors and assigns ofpthe parties. 18. Integration- '1' . 18.1 This Agreement, including the Exhibits hereto, constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous agreements between the parties, whether written or oral, relating to such subject matter. if a court finds any provision of this Agreement invalid-or unenforceable as applied to any circumstance, the remainder of this Agreement and the application of such provision to other persons or circumstances shall remain in effect. The parties further agree to replace such void or unenforceable provision with a valid and enforceable provision which will achieve, to the extent possible, the economic, business and other purposes of the void or unenforceable provision. 18 CENTRAL RECORDS FILE NO. P-5 2=�. P26 IN WITNESS WHEREOF, the parties have executed this Agreement. SOUTH SAN FRANCISCO SCAVENGER COMPANY, INC. CITY OF SO SAN FRANC By: City anger A,I -•�. /, I�/ «iS APPROVED AS TO FORM: n)4)'JA n i �Y City Attorney 19 GENTRAL RECORDS FjLF tom P27 SCHEDULE 1 SINGLE -UNIT RESIDENTIAL RECYCLING CONTAINERS Scavenger Company shall provide to each residential unit, a set of three (3) recycling containers, specially made of rigid plastic construction for stacking into each other, to assist residents in participating in the recycling program. One container is used to store glass; one container is used to store newspapers; and the third container is used to store metal food and beverage containers as well as PET plastic beverage containers. Each container shall be respectively identified with contrasting lettering appropriately denoting: "lass "newspapers ", and "cans ". The distribution of the recycling containers shall be the responsibility of Scavenger Company, and the ownership of the recycling containers shall remain in Scavenger Company. Similar alternative containers may be provided upon mutual agreement between City and Scavenger Company. 20 CENTRAL RECORDS FILS PJM 5 1-:L_1 P28 EXHIBIT A DIVERSION PROGRAM 1!_�' 111 � • � • �_:. In 1989, the California State Legislature passed Assembly Bill 939 which mandates that all cities and counties in the state divert 25% of their waste by 1995, and 50% by the year 2000. In 1990, when an initial survey was conducted, South San Francisco had a diversion rate of 11%. Through a vanety of new programs, however, the City of South San Francisco has surpassed the 1995 go , with a diversion rate of 25.3196. Although this is an important achievement, the City must continue to be afressive in its diversion efforts in order to reach the goal of 50%. New programs wi need to be implemented to reach 50%, and existing programs will need to be expanded aggressively. These new programs will take additional resources, yet they are important in order to reach the state mandated goals. Below is an overview of existin§ programs and possible new programs that can bring South San Francisco above the 096 diversion rate goal. Much of the additional diversion will need to come from the commercial industrial sector, as a maJority of the waste in the City comes from this sector. To achieve 50% will not only require strengthening existing programs and implementation of new programs, but also the construction of new sorting lines in order to extract additional materials from the waste stream. Expanding education, in both the residential and commercial/industrial sectors, stressing the importance of participating in the programs is also critical, and will represent a cost effective way to increase diversion. The tonnage that is currently hauled and disposed of by non - franchised haulers is also extremely important. Because of the amount being disposed by these haulers (estimated to be 22% of existing generated tonnage), it wouldbe unlikely that the 50% diversion oal could be achieved without recovery of this tonnage. The diversion estimates listed in the j)roggrra.m categories below are calculated based on the amount of material currently being am by South San Francisco Scavenger Company (SSFSC) and self - haulers, without the non - franchised hauler tonnage. The additional diversion that might be achieved as a result of recovery of the materials currently being hauled by non - franchised haulers is considered separately in Section 7. Since the 1990 Source Reduction and Recycling Element (SRRE) was based on a subset of total tonnage which did not include non- franchised haulers, we made a conservative estimate that the initial waste characterization applies to non - franchised haulers as well, even though non - franchised hauler tonnage is disproportionately in the commercial sector as compared to tonnage in the SRRE. 1. Yard Waste Currently the South San Francisco Scavenger Company picks up yard waste once per month from residential customers. There are two trucks picking up material each morning before continuing with other assignments. Because of the lack of regular exposure to the program, residents do not utilize the service to its fullest potential. In order to achieve maximum utilization from the yard waste program, a 21 CENTRAL RECORDS FILE Na �J 'LZ`I P29 greater degree of exposure and publicity is necessary. Currently SSFSC is diverting about 65 tons per month from the yard waste program, which translates to 6.8 pounds per household per month. An informal survey of Bay Area communities reveals that there is an average of about 40 pounds per household per month collected from their yard waste programs. Because of the smaller lot sizes in SSF than in some of the surrounding communities, we are using a 20 found per household per month figure as a reasonable estimate for yard waste colrection. Using his figure would result in an additional yearly diversion of approximately 2 %. Additional yard waste can also be diverted upon the completion of new, sorting lines and transfer stations in South San Francisco. As in the case with construction and demolition debris recovery, as well as yard waste, designing a line specifically for recovery of targeted materials can greatly increase diversion rates. The amount of yard waste generated by the commerciaVindustrial sector in South San Francisco is about four times that produced by the residential sector, and although Little is currently diverted, most of this will be raptured over an improved sorting line. If 50% of the commercial/industrial yard waste (based on SRRE tonnage adjusted to 1995) is diverted, it would add approximately 2.0% to the diversion total' Because the SRRE was done during a drought, the tonnage in the SRRE is most likely underestimated, thus maldng the 50% diversion of the original SRRE a very achievable goal. Pri or to implementation of a yard waste program, as well as any other new services, the SSF Scavenger Company will undertake a public awareness campaign to explain the program, as well as the benefits of participating in the program. Presently, there is no formal proggrram in South San Francisco to recycle C & D debris and wood waste. The material Zt. is currently diverted is generally from construction companies that rent debris boxes for their waste, and the tonnage amounts from these construction customers is relatively small. The amount of these materials in the overall waste stream is significant, however, comprising 12.7% of the generated waste tonnage in South San Francisco. As a result, recovery of these materials is essential if-the goal of 50% is to be realized. In order to make diversion of these materials successful, resources must be employed to educate generators about the materials, as well as to increase recovery at the transfer station. Source separation at construction sites is an important part of an building material diversion program. Companies that do large scale projects, as well as those that do smaller projects such as remodeling, need to be made aware of the importance of divertin these materials from the landfill, as well as the laws that require the city to do so. inancial incentives can be very helpful, and an explanation of the costs and benefits associated with separating materials at the job site could help gain the participation of contractors. A tiered hauling (or disposal, for self haul) fee may be considered for certain materials in order to increase tonnage diverted. A separate wood waste collection program for businesses could also be considered at least on an "on call" basis. 22 CENTRAL RECORDS FILE NO. w 52=30 ^� P30 It is important to work closely with the contractors in order to maximize diversion. Site visits for large projects in order to discuss disposal options maybe an important step. As each project is different, with different quantities of materials being disposed, so are the possible disposal options. A quick waste audit and training of the crew will go a long way in maximizing diversion. Also helpful are printed materials, such as a booklet explaining the options for recycling building materials, which has been shown to be an effective tool for increasing recycling. It can also be effective in creating a relationship with the local building industry association in order to distribute information and to become known as a resource for the industry. The status of the market can also be an important criteria, as low value materials may be handled differently than high value ones. C & D recycling is growing, however, and markets for the materials have been expanding over the last several years, making the future promising. There has also been an increase in re -use of building materials, as several stores exist in the Bay Area that sell previously -used building materials. In order to implement the above programs and maximize diversion of the materials, a new sorting line designed for these materials must be considered. Recovery at Material Recovery Facilities (MRF's) has consistently proven to be an important step in the diversion of C&D and wood debris. Although source separation of a materials at job sites is not realistic, a combination of customer education and increased recove at the MRF can si ficantl increase diversion. If ry � yy 40% of the material is recovered with dedicated lines as specified in the SRRE, consistent with documented experience at other MRF facilities, this will increase diversion by approximately 3.8% annually. 3. Food Waste Currently there is no formal program in South San Francisco to divert food waste from the commercial sector, althou commercial food waste constitutes 6% of the waste stream (according to the Smf. . In various areas of the country there has been increased collection and composting of food waste for the last several years. These programs tend to concentrate on tile large quantity generators, such as larger restaurants and grocery stores. La grocery stores tend to produce the most compostable waste and there are different issues that need to be addressed when compposting restaurant waste, as compared to pproduce waste. As a result, impFementation of food waste programs may be facilitated by first concentrating on produce waste, and then expanding to other organics. The issue of composting this material will have to be discussed vrnth the compost facility operator, but collection and composting of these materials has been shown to be both economically and technologically feasible. In order to get cooperation of the producers, a lower rate for collection of these materials may be necessary. It is anticipated that a food waste program would divert an additional (approximately) 1.5%. 4. Residential Re= ling The current residential curbside recycling program in South San Francisco is comprehensive, collecting all paper, cardboard, glass, tin, aluminum, PET and HDPE plastics. Although the matenal types collected are varied, there still is potential for 23 CENTRAL RECORDS FILE NO. �v P31 increased diversion through higher participation in the existing program. As paper is a majority of the material-recycled, it is also an area where the most potential diversion exists. Participation is not the only indicator of the success of a residential program, however. It is also important to ensure that those participating in the programs are efficient in their recycling, and are keeping their recyclable material out of the garbage cans. Generally a cost - effective way to increase residential tonnage is increased information and education. Mailings to customers, as well as presentation to citizen and neighborhood groups can help to increase diversion. If recovery of residential paper and cardboard eventually reached 70% (a realistic goal) which is consistent with some estimates for potential diversion, an additional 770 tons 4.1% total (2.1% additional) could be recovered. 5. Commercial &=ling Commercial recycling is an area that has substantial potential for increased diversion. There are several programs that could be implemented to increase diversion. lncrease Educaion and Information - Similar to residential recycling, a cost effective way to increase participation and diversion rates in commercial recycling is by increasing communication with customers, both by mailing educational materials and conducting site visits. Sneaking o Business - Groups - This is often an efficient way to meet with many businesses leaders and ow ers at one time. Workshops can be held for businesses to help with waste management. T P du s -There are often a few large commercial customers that produce a significant portion of the waste stream. Inspection of these generators, as.welI as site visas (in order to conduct waste audits) can help to increase recycling. "Strip" - It is often cost effective to identify areas with large concentrations of smalf businesses that can cooperatively participate in recycling programs. This may also require site visits. Aw_x.d a Ye e of the Year" - This can help to increase awareness and participation. Recyclable paper and cardboard from the commerdalrndustrial sector is 15.5% of the generated waste, in which recyclable glass is 1.2% and metals are 5.0%. If 50% of the recoverable paper, metals, and glass are recycled, 1 1.14 tons will be diverted (an additional 7. loo). If commercial recycling programs fail to demonstrate such a performance it is very unlikely that diversion goals could be reached, and as a result, this should be considered a critical area. 24 CENTRAL REGC3 »: RILE NM P32 b. New Sortinz Lines New sorting lines with better designs and increased capacity can achieve additional diversion beyond yard waste and C & D, many additional materials can be recovered from the waste stream with sorting lines that have increased capacity and sorting ability. The ability of having flexibility in sorting is a mayor reason that many of the programs listed above can succeed. There are other materials, not included above, that may be able to be recovered from the waste stream as a result of increased sorting capability. A reasonable estimate of increased diversion beyond the programs listed above is 396. 7. Increased Recycling Due to Tonnage Recoveled from Non - Franchised Haulers As mentioned above, haulers servicing customers in South San Francisco contrary to the franchise are disposing of a significant portion of the waste in the City, and it is felt that there are materials bung landfilled that could be recycled if they were collected through the franchised hauler. Recovery of this material is an important part of increasing diversion in the City. If SSFSC was hauling this material per the franchise agreement, there would be increased tonnages in all of the above programs, and thus increased diversion. Some of this material would likely end u in source separated recycling programs, while other material would go to the transfer station, with an additional opportunity for recovery . We believe that an additional 5% of the waste: stream could be diverted from the landfill through the recovery of this tonnage. 8, Increased Educational and Qutreach f Although increased education and outreach is not a separate diversion category for the purposes of this study, it is an essential part of all diversion efforts. As a result, below is a summation of the education and outreach efforts suggested for the above programs, as well as additional educational outreach. Yard Waste - Mailings to customers explaining the benefits of the program, as well as newspaper articles and other media. Food Waslc - Public education targeted at large restaurants, supermarkets, and produce stores may help to maximize participation in the program. Construction n - On site visits to construction projects in order to educate the crew on material separation can be beneficial. Printed materials reviewing disposal options have been shown to be successful. Meeting with industry groups to educate them on the benefits of recycling can also be useful. &sidenti 1 cl' - Mailings to customers, as well as newspaper articles and media advertising can be effective methods. An audit of participation in the programs can allow educational efforts to be more directed, and henceforth more cost - effective. CoMmercial Recycling - Speaking with staff of large commercial customers in order to educate them about programs and the benefits of recycling can help to 25 CENTRAL RECORDS nts No. 5 0e- - P33 increase participation and diversion. Building relationships with business groups is a cost effective method to get educational information to customers and can also be useful. Spponsorin special events and/or curriculum, for pri mary and secondary schools can be an effective educational tool, as well as field trips to the transfer station/MRF facility. Conclusion In summary, we've discussed an overview of existing programs and possible new programs that can bring South San Francisco above the 50% diversion rate goal. As presented, additional diversion must come from the commerciaVindustrial sector, as a majority of the waste in the City comes from this sector. We have the ability to reach 50 %, but it will require strengthening existing programs and the' implementation of new programs. It will also necessitate the construction of new sortin& lines in order to extract additional materials from the waste stream. A crucial factor is the expansion of education in both the residential and commercial/industrial sectors regazding the importance of participating in recycling programs. With the assistance of the City, there is the ability to comply with AS 939 and meet the mandated diversion goals. 26 CENTRAL RECORf ;" Mix NO. 'L'L� P34 2 3. 4. EXHIBIT B MAXIMUM SERVICE RATES Effective November 1, 1997 Residential Can Service (Per Month) - includes curbside recycling A. Service Level by Container Volume 20 Gallons (Senior Citizen) $ 11.28 30 Gallons 13.22 32 Gallons 14.10 64 Gallons 31.02 96 Gallons 48.65 128 Gallons or more 67.68 Commercial and Institutional Can Service (Per Month) - no charge for source separated recyclable materials 30 Gallons $ 14.36 32 Gallons 15.31 40 Gallons 19.14 45 Gallons 21.53 55 Gallon Drum 26.32 Commercial and Institutional Compactor Service Per Cubic Yard $ 28.81 Debris Box Service, Residential and Commercial and Institutional Temporary / One Time Use 5 Yard Mini -Box $ 106.87 7 Yard 233.52 14 Yard 233.52 20 yard 317.95 30 Yard 458.67 Rental Charge (per da , over 3 da for 5 Yard and over 7 days for others 8.79 Permanent Commercial Use 7 Yard $ 197.01 14 Yard 197.01 20 Yard 281.44 30 Yard 422.16 Overweight Char e Content eight in excess of 3 tons, per ton $ 55.02 27 CENTRAL RECORDS FILE No. ST 2LO P35 5. Commercial and Institutional Bin Service - no charge for source separated recyclable materials is Regular Pick -Up (Per Month) 1 - Yard Container $ 85.46 2 - Yard (Front End Loader Bin) 128.14 3 - Yard (Front End Loader Bin) 192.22 4 - Yard (Front End Loader Bin) 256.29 5 - Yard (Front End Loader Bin) 320.37 6 - Yard (Front End Loader Bin) 384.43 On Call Puck -Up, Per Yard Per Pick -Up, Per yard $ 14.79 Plus Container Rental Per Month Rental Charges- 1 Yard Container $ 22.38 2 Yard Container 24.29 3 Yard Container 26.08 4 Yard Container 27.99 5 Yard Container 31.70 6 Yard Container 33.62 28 CENTRAL RECORDS FILE N4. ? 'lrti� P36 EXHIBIT C SERVICE CATEGORIES TO BE BENCHMARKED Residential Can Service: 20 Gallons (Senior Citizen) 32 Gallons Commercial and Institutional Can Service: 32 Gallons Commercial and Institutional Compactor Service: Per Cubic Yard Debris Box Service: 14 Yard Commercial and Institutional Bin Service - Regular Pick -Up: 2 - Yard (Front End Loader Bin) 29 CENTRAL RECORDS FILE MO: C 2:1,—) P37 Alameda Burlingame Campbell Castro Valley Cupertino Daly City El Cerrito El Sobrante Fremont Gilroy Hayward Hercules Los Altos Los Gatos Martinez Menlo Park Millbrae Monte Sereno Morgan Hill Palo Alto Piedmont Pinole Pittsburg Richmond San Bruno San Leandro San Mateo San Pablo Saratoga Sunnyvale Union City Woodside EXHIBIT D BENCHMARKING JURISDICTIONS 30 CENTRAL RECORO£r FILE PJM 52.1_ ..� P38 EXHIBIT E NON - EXCLUSIVE FACTORS AFFECTING CHOICE OF JURISDICTIONS Container size Franchise fees Disposal fees Haul distance to the disposal site Billing/ Collection Franchise exclusivity Level of service pprovided (e.g., Frequency of coIlection Location of containers Provision of containers Recycling program - frequency Recycling programs - separate Topography and geography materials collected) and commodities rates or charges Nature of streets and ease of access Potential for commercial subsidy Demographic information Revenue information JAWMMODEWRAGSEINK 31 CENTRAL RECORDS FIL.K NQ. _ !� 2;: P39 ITEM 11 The Resolution for this Item will be distributed Wednesday, February 13, 2013 based upon the outcome of the issues considered at the 4:30 p.m. Special Meeting pertaining to Interviews of Recruitment Firms.