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HomeMy WebLinkAbout2013-07-13 e-packetAGENDA p��H SAly� CITY COUNCIL 0 U O n CITY OF SOUTH SAN FRANCISCO t�trxaa�� REGULAR MEETING MUNICIPAL SERVICES BUILDING COUNCIL CHAMBERS 33 ARROYO DRIVE SOUTH SAN FRANCISCO, CA WEDNESDAY, JULY 10, 2013 7:00 P.M. PEOPLE OF SOUTH SAN FRANCISCO You are invited to offer your suggestions. In order that you may know our method of conducting 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. KARYL MATSUMOTO Mayor Pro Tern RICHARD A. GARBARINO Councilman FRANK RISSO City Treasurer BARRY M. NAGEL City Manager PEDRO GONZALEZ Mayor MARK N. ADDIEGO Councilman PRADEEP GUPTA Councilman KRISTA MARTINELLI City Clerk STEVEN T. MATTAS 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 CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE PRESENTATIONS • Certificate of Recognition presented to Boy Scouts of America, Troop 42 Eagle Scout Badge Recipient, Christian Villanueva. • Certificate of Recognition presented to Lifesaving Hero Youth, Kaylee Schirmer. AGENDA REVIEW PUBLIC COMMENTS ITEMS FROM COUNCIL • Announcements. • Committee Reports. • Motion to approve League of California Cities Designation of Voting Delegates and Alternates. CONSENT CALENDAR 1. Motion to approve the Minutes of the Meetings of June 26, 2013. 2. Motion confirming payment registers for July 10, 2011 3. Resolution accepting grant funds in the amounts of $357,000 and $1,000,000 from the City /County Association of Governments of San Mateo County OneBayArea Grant ( "OBAG ") and amending the 2013 -2014 Capital Improvement Program Budget. 4. Resolution approving an amendment to an Existing Consulting Services Agreement with URS Corporation of San Jose, California for an additional scope of the work to include Engineering Services during the construction of the US 101 Ramp Improvement Project (Project No. tr1010) in an amount not to exceed $60,620. 5. Resolution awarding the construction contract to Roofing Constructors Inc. dba Western Roofing Service of San Leandro, California for the Siebecker Recreation Building Roof Replacement (Project No. pfl 303), in an amount not to exceed $104,993. REGULAR CITY COUNCIL MEETING JULY 10, 2013 AGENDA PAGE 2 PUBLIC HEARING 5. ARE _ Robert Kain/Owner ARE -SF No. 44, LLC /Applicant 249 East Grand Ave. P05- 0019:UPM13 -0002 & DAA13 -0002 Development Agreement Amendment for the previously entitled 249 East Grand Avenue Office/R &D Project, to reflect modifications to the Use Permit to allow a parking space reduction resulting in a ratio of 2.50 Parking Spaces per 1,000 square feet, minor building adjustments and temporary oft -site parking at 213 East Grand Avenue during Phase N Construction at 249 -2.89 East Grand Avenue in the Business Technology Parr (BTP) Zoning District in accordance with SSFMC Chapters 19.50, 20.110 & 20,330. ADMINISTRATNE BUSINESS 7. Approval of a draft Gateway Master Plan for signage and landscape at key entrances to South San Francisco. 8. Resolution adopting Employee Wellness Guidelines for healthy beverage, food, and physical health. COMMUNITY FORUM ADJOURNMENT REGULAR CITY COUNCIL MEETING JULY 10, 2013 AGENDA PAGES i The South San Francisco City Council does hereby recognize Christian Villanueva This certificate is presented in recognition of your contribution to the beautification project at 317 -321 Commercial Avenue, for which you earned your Eagle Scout Badge. The City Council commends you and Boy Scouts of America, Troup 42, San Mateo. Dated: July 10, 2013 0 " 01 " mxv. in, Mayor Fro Tern ,-A /fi_ , Council Member Fradeep Gupta, Council Member Government Code Section 54957.5 �resenfat�ons 94 1. 1 era _r- P, - - ---qlajpr Blip 0 d if j7•. mill f t .. } LE 0 �i IR,. � ♦F .. CIF .�.ar -.d 1 Jql- a a - IRV s tl O.'. rA n -.i i H N . 4 umid 09, i The South San Francisco City Council does hereby recognize Kaylee Sehirmer This certificate is presented by the City Council in recognition of the quick response and assistance you gave on July of 2011 when you saved the life of your grandmother, Lee -Ann McCurdy. The City Council commends you for your heroic efforts to save others Ka-PyIZ3ata noto, Mayor Pro Tem C-�n a.),- C� A-"�k �n Mark N. Addiego, Cou i Member Richard A. Garb no, Council Member Pradeep Gupta, Council Member LEAGUE OF C;;A1.1FORN1A CITIES CITY: 2013 ANNUAL CONFERENCE VOTING DELEGATE /ALTERNATE FORM Please complete this form and return it to the League office by Friday, August 23, 2013. Forms not sent by this deadline may be submitted to the Voting Delegate Desk located in the Annual Conference Registration Area. Your city council may designate one voting delegate and up to two alternates. In order to vote at the Annual Business Meeting (General Assembly), voting delegates and alternates must be designated by your city council. Please attach the council resolution as proof of designation. As an alternative, the Mayor or City Clerk may sign this form, affirming that the designation reflects the action taken by the council. Please note: Voting delegates and alternates will be seated in a separate area at the Annual Business Meeting. Admission to this designated area will be limited to individuals (voting delegates and alternates) who are identified with a special sticker on their conference badge. This sticker can be obtained only at the Voting Delegate Desk. 1. VOTING DELEGATE Name: �1r C_ h Cyr �-� a�- bar-!, n O Title: C 6 e- wt #fir" 2. VOTING DELEGATE - ALTERNATE Title: Qr- Prb ��Y✓1 3. VOTING DELEGATE - ALTERNATE Name: Title: PLEASE ATTACH COUNCIL RESOLUTION DESIGNATING VOTING DELEGATE AND ALTERNATES. •' ATTEST: I affirm that the information provided reflects action by the city council to designate the voting delegate and alternate(s). Name: Mayor or City Clerk (circle one) (signature) Date: E -mail Phone: Please complete and return by Friday, August 23, 2013 League of California Cities FAX: (916) 658 -8240 ATTN: Mary McCullough E -mail: mmccullough @cacities.org 1400 K Street (916) 658 -8247 Sacramento, CA 95814 J O 0SA 1 2 3. 0 SPECIAL MEETING MINUTES CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, California 94083 Meeting held at: MUNICIPAL SLRN ICES BUILDING COMMUNITY ROOM 33 ARROYO DRIVE SOUTH SAN FRANCISCO, CA WEDNESDAY, .JUNE 26, 2013 6.31 p.m. Call to Order. 6:35 p.m. DRAFT Roll Call. Present: Councilmembers Addiego, Garbarino and Gupta, Mayor Pro Tem. Matsumoto. and Mayor Gonzalez. Agenda Review. No changes. Public Comments — comments are limited to items on the Special Meeting Agenda. None. 5. Closed Session: Public Employee Appointment (Pursuant to Government Code Section 54957) Title: City Manager. 6. Closed Session: Conference with Legal Counsel: Anticipated Litigation (Pursuant to Government Code § 54956.9(a)) Significant Exposure to Litigation - One Case. Time entered Closed Session: 6 :36 p.m. Open Session resumed: 7:04 p.m. Recess: 7 :04 p.m. Closed Session resumed: 11 :33 p.m.. Open Session resumed: 12:36 a.m. Report out of Closed Session: No reportable action. 6. Adj ournment. Being no further business, Mayor Gonzalez adjourned the meeting at 12:36 a.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 NOVEMBER 14, 2012 PAGE 2 MINUTES NTH SAN r. . CITY COUNCIL CITY OF SOUTH SAN FRANCISCO r�Lrfio REGULAR MEETING MUNICIPAL SERVICES BUILDING COUNCIL CHAMBERS 33 ARROYO DRIVE SOUTH SAN FRANCISCO, CA WEDNESDAY, JUNE 26, 2013 7:00 P.M. CALL TO ORDER TIME: 7:04 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. PRESENTATIONS • Internal Talent Exchange Program ( "ITEP ") ITEP Review. Human Resources Director Kathy Mount gave a brief description of the pilot program and introduced I -TEP participants Marissa Garren, Mich Mercado and Amy Mangubat. Each participant gave brief overview of their particular projects and experiences with the I -TEP program. Benefits for participating employees and departments was gone over as were the recommendations for the next steps for the I -TEP program. Recommendations were: (1) to adopt a formal policy and application process and (2) Make the City budget team an annual I -TEP project with alternating members from different departments. Mayor Pro Tem Matsumoto thanked all participants and asked if the participants if they got to chose their projects or were assigned. She also asked if participating in the program got any of them thinking about moving and advancing within the organization. Mich Mercado stated at the moment projects were assigned but once an application process was formalized the participating departments and employees may have more choice in the matter. The overall idea of the program was to help address succession planning. Council congratulated staff and participants for a successful pilot program. Councilmember Addiego stated City staff was to be commended as this is what enlightened private business has done for a long time as a way to address disconnect between employees and departments. • Proclamation establishing Parks and Recreation Month presented to Parks and Recreation Commission Chair Mark Nagales. The proclamation was accepted by Parks and Recreation Director Sharon Ranals who took the opportunity to promote a new program through the department called Fun Fridays. Some upcoming events included Fitness Bingo on July 5, Bocce Ball lessons on July 19 and the showing of Brave for Movies in the Park on July 26. Recognition of Jack Drago Youth Art Scholarship Award recipients Irene Luu and Hazel Rojas. Cultural Arts Commission Chair James Bertoldi gave the history of the award and presented Hazel Rojas, recipient of one of the awards. Recipient Irene Luu was not available as she was visiting her new school. Ms. Rojas' thanked Council for the scholarship, stating it would be very helpful towards her education. AGENDA REVIEW Items heard in the following order: San Mateo County Youth Leadership Institute, City Selection Committees, items 1 -9, 11, 14, 10, 12, 16, PUBLIC COMMENTS Wynn Greich spoke against fracking and the upcoming showing of the film Gasland 2. She also spoke against fluoride in the water system and recently published articles about fluoride and chloramines. Edith Arias thanked City staff, namely Parks and Recreation Director Sharon Ranals and staff Laura Armanino and Kelly Cullinan for the roles they have played in her son's life, who has special needs. Her son recently graduated high school and participated in the Full of Fun Camp run by Kelly and Laura. She spoke of the importance of the Parks and Recreations programs, which allow volunteer and other types of opportunities for the disabled community. It was her hope that the City would continue to open its doors towards full inclusion. Mayor Pro Tem Matsumoto also noted opportunities available through the Fire Department. Resident Linda McNeil spoke about residential parking issues experienced on Summit Court. Mayor Gonzalez directed staff to connect with Ms. McNeil in order to address the situation. Kate MacKay spoke out against the protestors that have been present on Grand Avenue. She relayed an incident in which her son was present and emotionally harmed by the signs displayed by the protesters. She requested Council act to prohibit the signs as the space was a child /family oriented location with a library and school in the immediate vicinity. She equated their tactics to child abuse /endangerment. Lastly, she asked to be provided with contact information of the group that organizes the protest so she could pursue civil action against them. REGULAR CITY COUNCIL MEETING JUNE 26, 2013 MINUTES PAGE 2 Mayor Gonzalez understood Ms. MacKay's concerns and asked her for patience, as the matter would be coming before Council within the next couple of months. Councilmember Addiego commended Ms. MacKay for speaking out and noted the protesters were not residents of the City. Mike Harris spoke about the ongoing issue involving a claim of damage done to his fi-ont porch in 2009. ITEMS FROM COUNCIL • Announcements. Committee Reports. Councilmembers reported on attendance at community meetings and events, including an Open house at the X -ray House, the 100"' birthday Celebration of Ms. Alice Ng, and meetings of the Finance Subcommittee, the Bay Conservation Development Commission ( "BCDC ") , the City /County Associations of Governments ( "C /CAG ") , the County Board of Supervisors in regards to district elections, the Big Lift to Education Working Group, the League of Cities, the Grand Boulevard Initiative, the Housing Endowment and Regional Trust ( "HEART "), and the Association of Bay Area Governments ( "ABAG "). Announcements were made regarding the following items and upcoming events, including: the location of expired medication drop off boxes at Fire Station 61 and the Police Department, Nation Night Out on August 6, and the announcement of Richard Owyang as Grand Prize Winner for the Catch a Ride! Let's roll San Mateo County contest. Specific items for further action and/or consideration were set forth as follows: Mayor Pro Tem Matsumoto questioned the discussion of the investment policy regarding the fact that there is an asset management firm retained by the City, Chandler and Associates. Councilmember Addiego noted that it was actually a conference call with Chandler and Associates with Treasurer Risso present. City Manager Nagel added it was Chandler and Associates recommending the action to Council. Councilmember Gupta reported on developments in the Big Lift to Education program, specifically discussions with Onxy Director of Government Affairs, Michael Lasso regarding the potential of offering scholarships and paid internships from various biotech companies. His hope was that Council would have additional contacts that could be beneficial towards the development of the program. Mayor Pro Tem Matsumoto added that she had met with State Assembly member Kevin Mullin, who noted various sources of funding available. Councilman Garbarino requested the meeting be adjourned in memory of longtime family friend Daniel Kemper. REGULAR CITY COUNCIL MEETING NNE 26, 2013 MINUTES PAGE 3 Council decided to hear the Youth Leadership Institute item prior to the City Selection item. • San Mateo County Youth Leadership Institute. Certificates were presented to Stephanie Arias, Ulisess Arias, Korleen Perry, Andrea Acosta and Gabriel De La Cruz. The youth spoke about Project Casa, highlighting the dangers of second hand smoke within multi - family unit properties. Statistics were shared about the number of residents who found second hand smoke to be a problem versus those who spoke out against it. The group requested Council draft an ordinance prohibiting smoking inside of multi-family units and offered sample ordinance passed by nearby cities. Mayor Pro Tern spoke in favor of the initiative and of her personal experience as a resident of a condominium. However, as a matter of enforcement, couldn't a resident go to their Home Owners' Association ( "HOA ") or the complex owner? City Attorney Mattas said it could be done that way and noted the City of Belmont does it on a complaint basis. Councilmember Addiego asked if someone would be grandfahhered in or would they be forced to move. Attorney Mattas stated it would depend on how an ordinance was drafted, but grandfathering in would be difficult seeing as there was a high level of turn over in multi- family units. Councilmember Gupta commended the youngsters for their awareness and encouraged them to continue to do what they believe. As president of his HOA, he commented on how they were limited as to how much they could actually do. Ms. Acosta noted the policy would be about the smoke and not the smoker. At this time, Council would not consider the introduction and adoption of an ordinance related to the prohibition of smoking in multi - family units. City Selection Committee: ABAG, LAFCO. Council made the following committee selections: ABAG Executive Board: Mayor Pedro Gonzalez and Millbrae Council member Wayne Lee as alternate Council selected LAFCO: Half Moon Bay Council member Allan Alifano and City of Pacifica. Council member Michael O'Neil as alternate. CONSENT CALENDAR 1. Motion to approve the Minutes of the Meetings of June 12, 2013. 2. Motion confirming payment registers for June 26, 2013. REGULAR CITY COUNCIL MEETING JUNE 26, 2013 MINUTES PAGE 4 3. Motion to waive reading and adopt an {Ordinance making revisions to Chapter 20.260 of the South San Francisco Municipal Code related to the Genentech Master Plan District, approving an amendment to the South San Francisco Zoning Map to include additional properties in the Genentech Master Plan District and approving two additional conditions applicable solely to the added properties. 4. Resolution awarding the construction contract to Casey Construction, Inc. of Emerald Hills, California, for the Littlefield Avenue North Sanitary Sewer and Storm Drain Improvements Project (Project No. ss1206) in an amount not to exceed $209,670. 5. Resolution approving consulting services agreements with CSG Consultants, Inc. of San Mateo, California and Ghirardelli Associates of Oakland, California for special on -call construction management & inspection services for various Capital Improvement Projects. 6. Resolution approving a Community Development Block Grant ( "CDBG ") Loan Agreement between the City of South San Francisco and the Boys & Girls Club, in an amount not to exceed $100,000. 7. Resolution authorizing the City Manager to execute the Program. Supplemental Agreement No. 017 -N1 with the State of California, for construction of preventative maintenance of seven (7) bridges and Program Supplemental Agreement No. 021 -N for preliminary engineering for the replacement of the South Airport Boulevard Bridge at North Access Road. Council requested to pull items 1 and 6. Motion - Councilmember Garbarino /Second - Councilmember Addiego: to approve consent calendar items 2 - 5, and 7. Unanimously approved by voice vote. Item #1 - After reading the minutes and reflecting on the exchange that transpired, Councilmember Addiego wanted to publicly apologize to Library Director Valerie Sommer for his unnecessary harshness of tone at the meeting of June 12. Motion - Councilmember Addiego /Second - Councilmember Garbarino: to approve consent calendar item #1. Unanimously approved by voice vote. Item #6 - Mayor Gonzalez reeused himself and left the room. Housing and Redevelopment Manager Norma Fragoso presented the staff report. Councilmember Gupta sought clarification as to why there was a difference in the terms of the loans being offered by the County and the City. The County's terms included loan forgiveness after 25 years with amount due if the club should become non operation prior to year 25. The City's terms included a forgiveness of 4% every year until all was forgiven on year 25. Councilmember Garbarino had the same question. REGULAR. CITY COUNCIL MEETING NNE 26, 2013 MINUTES PAGE 5 Mayor Pro Tem voiced her displeasure with the terms and also took issue with the placement of the item on the Consent Calendar, citing a lack of transparency. She felt since there was an alternative to staffs recommendation, the item should have been placed elsewhere on the agenda. City Manager Nagel informed Mayor Pro Tem that it was not Ms. Fragoso's decision where to place the item and took responsibility for its placement under consent, Mayor Pro Tem expressed concern about setting precedent with these terms, with the thought that other groups would want the same deal. Ms. Fragoso stated similar terms had been set for other loans including some residential loans, Bronstein's Music, the Poplar Center and other commercial properties. Councilmember Addiego stated how proud he was of his service on the Board of the Boys and Girls Club. He did not share Mayor Pro Tem's opinion that there was a lack of transparency as the item was agendized and was being discussed. Looking at it differently, he noted the forgiveness of 4% per year was equal to a $4000 per year investment in the City's children who, if not at the Club, could very well be in danger. If the club lasted 25 years, that would be a very good investment. Mayor Pro Tem stated she was amicable with the loan being interest free, but she was not comfortable with the forgiveness of the debt. Councilmember Gupta clarified that his questioning of the terms was more oriented towards the difference of the two approaches and not the appropriateness of the loan. Assistant Director Van Duyn asked if there was an element of the loan that could be modified as the item needed to move forward in respect to the improvements that needed to be done. Councilman Addiego recalled how generous Council had been to the Historical Society, accepting $1.00 for a $9000.00 building. He hoped Council wasn't entertaining ways to deny this item as it was his opinion that forgiving the loan is truly an investment in the club. He would agree with the Mayor Pro Tern's assertion that the City was not a cash cow if the money was coming from the General Fund, but it was not. Councilmember Garbarino asked if there was a way to restructure the loan. Assistant Manager Van Duyn stated there were many options. He reminded Council that these were CDBG funds and had uses. These are funds that were intended to be put back into the reason why community development started in the first place, low to moderate income programs that serve people so well. He reassured Council that oversight issues would be addressed and encouraged them to move to that step with a degree of encouragement of wanting to do so. Councilman Garbarino wanted to loan the club the money, but wanted to revisit the other options. City Attorney Mattas noted time constraints as related to services contracted by the school district. Permits could be issued within a week of loan approval. There were two options; have REGULAR CITY COUNCIL MEETING JUNE 26, 2013 MINUTES PAGE 6 the loan structured as recommended by staff or structure the loan under similar terms to those of the County's. A discussion of terms could happen tonight and Council could move forward. Mayor Pro Tern Matsumoto added that the club was just given a $25,000 grant. Councilmember Addiego stated that Council has visited the club and understand the work done there. He argued that the amount being forgive each year essentially works out to $11.00 per child. It would sadden him if Council chose not to make that investment. Mayor Pro Tern noted there was a speaker card for Mike Harris. Mr. Harris was in agreement with Mayor Pro Tem and suggested the building and program be taken over by the Parks and Recreation department, that an ad hoc committee of various staff members be formed so the City had some say in operations. Motion - Councilmember Addiego /Second Councilmember Gupta: to approve resolution no. 2013. AYES: Councilmembers Addiego and Gupta, NOES: Councilmember Garbarino and Mayor Pro Tem Matsumoto, ABSTAIN: Mayor Gonzalez, ABSENT: None. Motion failed. Motion - Councilmember Addiego /Second Councilmember Gupta: to approve resolution No. - 2013 with changes made to reflect a no interest, no payment loan to be forgiven after 25 years or become due if services cease prior to 25 years. Motion approved by the following vote: AYES: Councilmembers Addiego, Garbarino, and Gupta, Mayor Pro Tern Matsumoto. NOES: None. ABSTAIN: Mayor Gonzalez. ABSENT: None. Recess: 9:22 p.m. Return to session: 9:28 p.m. PUBLIC HEARING Resolution approving Stormwater Management Service Charges for Fiscal Year 2013- 2014 and Resolution adopting Report of Stormwater Management Service Fees for Fiscal Year 2013- 2014. Interim Environmental Compliance Manager Rob Lecel presented the staff report highlighting the Water Quality Control Plant's accomplishments during the past year. Public Hearing opened and closed at 9:35 p.m. Mayor Pro Tem Matsumoto noted C /CAG was floating the idea of a tax initiative to help cover costs of directives coming down from the state. If this tax was not approved by the voter, would the City be responsible for the additional expenses? What would be the range of costs if initiative does not go through? Mananger Lecel stated polling was already underway to measure the feasibility of a tax increase being approved by the voter. If the support was not there, the City would be responsible for covering the costs of the unfunded mandates. This concern has been voiced by many cities but has been dismissed by the state with the belief that cities would find the money. REGULAR CITY COUNCIL. MEETING JUNE 26, 2013 MINUTES PAGE 7 Public Works Director Terry White responded to Mayor Pro Tern's question regarding the range in costs, which was speculative at this point. He had made informal estimates on his own, showing the base rate would have to go up five times from the current rate. The City was on the cusp of renewing and would find out the new requirements within the next 12 to 18 months. Motion - Councilmember Addiego /Second - Councilmember Garbarino: to approve Resolution No. 58 -2013. Unanimously approved by voice vote. Motion - Councilmember Addiego /Second - Councilmember Gupta: to approve Resolution No. 59 -2013. Unanimously approved by voice vote. 9. Resolution establishing the Sewer Service Rates effective for the Fiscal Year of 2013 -2014 and adopting a Report of the Annual Sewer Rentals or Charges for Fiscal Year 2013 - 2014.. Public Works Director Terry White presented the staff report explaining that this was the last year of a five (5) year plan put together in 2009 under Proposition 218. Council's plan to increase rates on the front end allowing for zero increases to occur in the last two years had been successful. In accordance, there would be no increase in this year's rate. Public Hearing opened at 9:45 p.m. Public Comments: Resident Mike Harris stated rates should be changed to $1.00 per day plus use. Tax bills have been raised for a number of years and this has been difficult on the retired community. Public Hearing closed at 9:46 p.m. Mayor Pro Tern Matsumoto stated the City of San Carlos recently adopted a plan that included a 25% increase, followed by 20% and then 10% increase equating to an increase of $804.00 /year. Compare that to South San Francisco's which was $532.00 /year. Councilmember Garbarino asked why trailer courts rates were less than single family dwellings. Director White responded when basing rates on consumption was under consideration, it was assumed they would consume less. Since, studies had confirmed that trailer units do use less. A three year plan will be introduced next year with a likely showing of the multi family units dropping down to trailer court rates. Motion - Councilmember Gupta/Second - Councilmember Garbarino: to approve Resolution No. 60 -2013. Unanimously approved by voice vote. As noted during Agenda review, Council heard item #11 before item #10. ADMINISTRATIVE BUSINESS 11. Use of Departmental Donation Accounts. REGULAR CITY COUNCIL MEETING JUNE 26, 2013 MINUTES PAGE 8 Finance Director Jim Steele presented the staff report. This item came about during previous meetings of the Budget Subcommittee and Budget Study Sessions. Accounts of particular interest were the Police Department's Asset Seizure Fund and the Library Donations Account. It was his understanding that Council wanted to consider a specific policy on use of the funds particularly regarding Capital Improvement Projects ( "CIP "). Staff was present to answer questions. Councilmember Gupta sought confirmation as to whether improvements to the Police Department locker rooms were an approved use for the hands under DEA guidelines. Also, were there incentives for not using the funds? Director Steele confirmed the item would be under item six (6) which covered costs of equipment needed for law enforcement purposes. Chief Massoni added building improvements had been approved as permitted uses. The plan included using half of the fund for the first phase of improvements with the remaining funds being used for the second phase. If everything moves forward as planned, the expenses total approximately $1.6 million, more than what is currently in the fund. Councilman Gupta understood that to mean there were inadequate funds available if Council should direct the cost of improvements to be paid for solely from the fund. Chief Massoni clarified it could be done, but stated the additional phases would not be able to be completed. The Department was hoping for a 50150 split in order to complete multiple phases. City Manager Nagel recalled the discussion as being a matter of cash flow. Was the discretion of Council to save the General Fund and exhaust the seizure fiend with the notion that it would be replenished? The fund currently averaged $500,000 /year. There was also discussion of adding an office to the task force, which may yield greater funds. . Councilmember Addiego felt money from the General Fund was almost sacred because it could be used for anything, whereas seizure dollars had a defined list of approved uses. He would be supportive to the use of the General Fund if seizure dollars dry up. He wants the improvements to be funded completely by the asset seizure fund. Councilmember Gupta agreed with Councilmember Addiego. Mayor Pro Tem. Matsumoto expressed concern about sending another officer to the DEA rather than having another officer on the streets and asked Chief Massoni how that would effect staffing levels, salary and overtime expenses, and the success of investigations. Further questions were posed regarding charges from the County, reimbursements related to officers place on school campuses and the Downtown Bike Patrol. Given the most optimum circumstances, Councilmember Addiego asked Chief Massoni how many officers he would like. Chief Massoni stated 40 officers were needed to work patrol in order to be at full staffing. Sending an additional officer to the DEA would have no change on that level. There were REGULAR CITY COUNCIL MEETING JUNE 26, 2013 MINUTES PAGE 9 currently 77 officers in the department with five (5) of those in training and a potential loss of four (4). Optimum staffing would be approximately 83 officers. The DEA would pay the salary and benefits of the additional officer to be assigned. Regarding overtime, the Chief explained costs associated with that are approximately $1 million/year and noted overtime was needed for various reasons such as court appearances and the completion of paper work/reports, not just manning the streets. The City was charged by the County for the Narcotics Task Force as there was currently no officer assigned. Regarding officers on school campuses, that was looked at as part of prevention and a way to provide intelligence and strengthen relations with the kids. The Downtown Bike Patrol currently consisted of two (2) officers for the summer, and one (1) year - round officer. Mayor Gonzalez shared Mayor Pro Tem's concerns about staffing levels, adding that he had heard officers were being lost to various cities. He wanted to consider hiring another officer with the money. Councilmember Addiego reiterated his opinion regarding the General Fund as a fund of last resorts. His preference was to leave it intact. Stemming from prior discussions on investment, he reminded staff how much effort it took to earn $500,000. Based on Council's consensus City Manager Nagel would direct staff to change the CIP to reflect funding for the locker room improvements come entirely from the asset seizure fiends and asked Council if they had further questions for other departments. Discussion on Library donation account included a possible use as seed funding for a new Main Library, City Manager Nagel recommended Council consider the potential of receiving $1 million from Measure A funding. Library Director Valerie Sommer clarified the $1 million was requested because that was the minimum amount needed to address ADA improvements for the building. Mayor Pro Tern Matsumoto asked if Council was to be looking at creating a policy. City Manager Nagel explained the intent of the discussion was to provide clarification as to how staff should act regarding donations accounts. Director Sommer has been following protocol by holding on to the donations for the purpose of funding a main library and that is what staff would like to continue to do. However, Council could provide other direction. Mayor Gonzalez asked if it was urgent to decide tonight. City Manager Nagel stated it was not. The report was all encompassing as staff did not want to assume certain areas we of more importance. Mayor Gonzalez suggested waiting to see what happened with Measure A funding. CounciImember Gupta sought clarification as to when to act on the CIP item for the Police Department previously discussed. REGULAR CITY COUNCIL MEETING JUNE 26, 2013 MINUTES PAGE 10 City Manager Nagel recommended formal action take place during discussion on the CIP, item 10(b). As he understood it, the library portion would be discussed in the future. Mayor Pro Tem Matsumoto requested to hear item 14 next out of consideration for Conference Center staff. Council agreed. 14. Resolution approving the South San Francisco Conference Center Authority Fiscal Year 2013 -2014 Operating Budget. Conference Center Authority ( "CCA ") Director Dean Grubl presented the staff report giving a brief overview of the CCA's accomplishments, projected revenues and expeditures. Councilman Addiego asked if the security personnel vacancies would remain unfilled. Director Grub] stated they were filled temporarily using an event security firm. Councilmember Gupta asked if the 20% decrease in operation expenditures was entirely related to the vacant security positions also, hearing of an overflow from San Francisco, the Councilmember asked if there was any pressure to expand operations. Director Grubl stated other retirements contributed to that percentage. Regarding an expansion, there was indeed an overflow from San Francisco. Expansion plans were being looked at through the Authority with an expansion meeting scheduled for next month to explore those opportunities. Motion - Councilmember Garbarino /Second - Mayor Pro Tern Matsumoto: to approve Resolution No. 64 -2013. Unanimously approved by voice vote. 10. Recommendation that the City Council (1) conduct a Public Hearing, (2) adopt a resolution approving the Capital Improvement Program (CIP) for Fiscal Year 2013 -2014, and (3) authorize staff to prepare plans and specifications for construction bids for construction advertising of projects under this program. Assistant Public Works Director /City Engineer Brian McMinn presented the staff report detailing the Capital Improvement Program. The program called for $9.8 million in appropriations with $1.13 million coming from the General Fund for 14 new projects and 11 existing projects. Approval of this budget and prior year appropriations would result in a total Capital Program of $37 million appropriated to 63 projects. Items removed from the CIP and project reductions were detailed. Public Hearing opened and closed at 10:35 p.m. Councilmember Garbarino asked why the roof replacement for the IT building was removed. Assistant Director McMinn replied it was due to the fact that the building was formerly a Redevelopment property and was now in question. The roof replacement for the Magnolia REGULAR CITY COUNCIL. MEETING JUNE 26, 2013 MINUTES PAGE 11 Senior Center was still on. Relative to the removal of the Brentwood Park Tennis Courts, Mayor Pro Tern Matsumoto asked if the project could still be initiated for the same amount later on this fiscal year, or would it have to wait until next year. Assistant Director McMinn responded it was just removed from appropriations this year and was not precluded from coming back later on, as the funding mechanism would still be there. City Manager Nagel clarified this was a General Fund item, Councilmember Garbarino let Mayor Pro Tem know to expect request for new bathrooms if residents in the Brentwood Park area were to be polled. Councilmember Gupta wanted it noted that page 29 would now reflect the General Fund would be zero (0) and Other Police Seizure fund will be $1 million. Councilmember Addiego wanted to assure Chief Masson that General Funds would be available should there be a shortfall in the asset seizure fund. Motion - Councilmember Gupta/Second - Councilmember Addiego: to approve Resolution No. 61 -2013. Unanimously approved by voice vote. 12. 2013 -2014 Budget Items: a. Resolution approving the Fiscal Year 20132014 Operating Budget for the City of South San Francisco; appropriating the corresponding funds, authorizing the City Manager to make specified expenditures; approving the Gann Appropriations Limit; approving the Treasurer's Investment policy in 2013 -2014; and amending the Salary Schedule. b. Resolution approving changes to the 2013 -2014 Master Fee Schedule for fees for services. Finance Director Jim Steele presented the staff report which provided detailed information regarding the state of the local economy, the General Fund, services /need for more reliability and other funds. Mayor Pro Tem Matsumoto asked if the addition of the Parking Enforcement Officer was to address BART parking issues was due to an increase in ridership. Chief Masson noted the issue at hand was riders parking in residential neighborhoods and metered spaces. Mayor Pro Tem Matsumoto asked if the investment policy was online and accessible to residents. Director Steele was unsure but agreed to put it online in the case it was not. REGULAR CITY COUNCIL MEETING JUNE 26, 2013 MINUTES PAGE 12 Councilmember Gupta thanked the Budget Subcommittee and staff for their hard work. He commended the City on their previous decisions and on the fact that it is one of the better fiscally managed cities, as evidenced by the percentage of the budget that is in reserves. Mayor Pro Tern, Matsumoto asked about flexibility in terms of providing the Information Technology department (IT) with funds they may need for several in -house items. Director Steele referred Council to page 22 of the attachments, calling attention to the equipment replacement fund balance of $3.7 million. Additional money did exist. Councilmember Addiego sought clarification on the assessed value growth figures. Director Steele explained if someone bought their home during the market peak and reassessed at the market low, that amount becomes their new base but it is adjusted by a yearly CFI factor of 2 %. He was under the belief that if the market value goes up, previous years could be recovered, though he was uncertain. 3.8% overall was the assessed value growth in South San Francisco, which only a couple years ago was at zero. Mayor Gonzalez wanted to address the need for increased hours of operations at the Grand Avenue Library, currently open only four (4) days per week. Was there room in the budget to reopen the library an additional day, preferably Saturday? Students were not meeting the level of proficiency needed for success and an increase of hours in the Library's schedule was greatly needed within the community. Mayor Pro Tem understood the money for the Library was to be used for restorations. City Manager Nagel stated there were certainly dollars available and it was up to Council's discretion on how to use them, be it for restorations or for additional operating hours. Mayor Gonzalez sought Council's opinion on the matter, reiterating the programs offered by the library were those of the greatest need. Councilmember Addiego was supportive of Mayor Gonzalez' initiative. An increase in hours was a good faith effort towards the community and the ultimate repurposing of the Grand Library did not preclude Council from doing something in short run. He asked Director Sommer an approximate amount needed to reopen the library for an additional day. Director Sommer reported the costs for operating an additional day was $50,000 /year. Hours would be Friday 10:00 a.m, to 6:00 p.m. or Saturday 10:00 a.m. to 5:00 p.m. She continued that historically, Saturdays have been the day of lowest attendance and believed Friday would be a better option for the community. Mayor Gonzalez reminded her to consider the growth in community and that families could visit the library together on Saturday. She understood the Mayor's point and noted that for Summer Reading Programs, more families were at the Grand Library than at Orange Library, Mayor Gonzalez recommended reopening for both days, if for at least just for a partial day on REGULAR CITY COUNCIL MEETING JUNE 26, 2013 MINUTES PAGE 13 Saturday. Councilman Addiego understood that there was a distinct need on Friday, but a little less on Saturday. Director Sommer confirmed his assessment. City Manager Nagel noted if Council's direction was to go with one or both of those days they would augment and make the changes in the Operating Budget and Salary Schedule. Motion - Councilmember Addiego /Second - Councilmember Gupta: to approve Resolution No. 62 -2013 with a $100,000 augmentation related to the Library's Operating Budget and Salary Schedule. Director Steele noted one more item in the staff report regarding the Master Fee Schedule with additions and /or changes to the City Clerk, Planning, Library and Parks and Recreations Departments as detailed in the attachment. One change to note was related to Children's Material - books, audio, video etc. The current fee was $4.00 for the maximum overdue charge per item. This fee was to be lowered to $3.90. Motion - Councilmember Garbarino /Second - Councilmember Gupta: to approve Resolution No. 63 -2013. Unanimously approved by voice vote. 13. Resolution providing Interim Spending Authority for the first 60 days of the 2013 -2014 Fiscal Year, in the event the 2013 -2014 Operating Budget is not approved on June 26, 2013. Item not heard. 15. Resolution approving interim funding for Fiscal Year 2013 -2014 for the South San Francisco Conference Center Authority, in the event the 2013 -2014 Operating Budget is not approved on June 26, 2013. Item not heard. 16. Resolution awarding the construction contract to Granite Rock Company DBA Pavex Construction Division, of San Jose, California for the U.S. 101 Ramp Improvements Project (Project No. trl 103, trl 105, tr1106, tr1107, tr1010) in an amount not to exceed $4,366,783.75. Principle Engineer Sam Bautista presented the staff report and gave an overview of the bid selection process and project information. Mayor Gonzalez asked if construction would be taking place on all three sections at he same time. Engineer Bautista coordination had been done with Caltrans for work to be done one ramp at a time to lessen the impact of traffic. A traffic control plan would also be in place. REGULAR CITY COUNCIL MEETING NNE 26, 2013 MINUTES PAGE 14 Mayor Fro Tern Matsumoto asked if there was a schedule available for Grand and East Grand. She asked because she wanted to resurrection the issue of bicycle and pedestrian improvements with the Transit Authority and wanted to make sure the construction would not have an impact. Engineer Bautista stated one would be available from the contractor once the contract was approved. Director White stated the two were so independent of one another he did not foresee an issue if they were going on at the same time. Work could be completed in a short amount of time. Councilmember Addiego noted the company TY Lin was the same company that was completing the eastern span of the Bay Bridge. Councilmember Gupta asked how much was in the Traffic Impact Fee. Engineer Bautista explained the traffic impact fee was collected during the permitting process for projects east of 101. Currently there was over $8 million in the fund. The remaining amount after the reduction $6.3 million could be used for design improvements that are listed in the program. Councilmember Gupta asked if there would be enough left to do other things that were needed. Engineer Bautista stated there may be enough for restriping projects, but development will spur more money and make way for more projects. Motion Councilmember Garbarino/ Councilmember Gupta: to approve Resolution No. 65 -2013. Unanimously approved by voice vote. COMMUNITY FORUM None. ADJOURNMENT Being no further business, Mayor Gonzalez adjourned the meeting at 11 :33 p.m. in honor of Daniel Kemper. Submitted: Approved: Anna M. Brown - Pedro Gonzalez Deputy City Clerk, City of South San Francisco Mayor, City of South San Francisco REGULAR CITY COUNCIL MEETING MINUTES .TUNE 26, 2013 PAGE I5 MINUTES � ©eta snN�� CITY COUNCIL CITY OF .SOUTH SAN FRANCISCO o c�11FO10L REGULAR MEETING MUNICIPAL SERVICES BUILDING COUNCIL CHAMBERS 33 ARROYO DRIVE SOUTH SAN FRANCISCO, CA WEDNESDAY, .TUNE 25, 2013 7:00 P.M. CALL TO ORDER TIME: 7:04 p.m. ROLL CALL PRESENT: Councilmembers Addiego, Garbarino and Gupta, Mayor Pro Tern Matsumoto and Mayor Gonzalez. ABSENT: None. PLEDGE OF ALLEGIANCE Led by Mayor Gonzalez. PRESENTATIONS • Internal Talent Exchange Program ( "ITEP ") ITEP Review. Human Resources Director Kathy Mount gave a brief description of the pilot program and introduced I -TEP participants Marissa Garren, Mich Mercado and Amy Mangubat_ Each participant gave brief overview of their particular projects and experiences with the I -TEP program. Benefits for participating employees and departments was gone over as were the recommendations for the next steps for the I -TEP program. Recommendations were: (1) to adopt a formal poticy and application process and (2) Make the City budget team an annual I -TEP project with alternating members fi-om different departments. Mayor Pro Tern Matsumoto thanked all participants and asked if their projects were chosen or assigned. She also asked if participating in the program got any of them thinking about moving and advancing within the organization. Mich Mercado stated at the moment projects were assigned but once an application process was formalized the participating departments and employees may have more choice in the matter. The overall idea of the program was to help address succession planning. Council congratulated staff and participants for a successful pilot program. Councilmember Addiego stated City staff was to be commended as this is what enlightened private business has done for a long time as a way to address disconnect between employees and departments. Section 54957.5 13 dar Iteiri #I • Proclamation establishing Parks and Recreation Month presented to Parks and Recreation Commission Chair Mark Nagales. The proclamation was accepted by Parks and Recreation Director Sharon Ranals who took the opportunity to promote a new program through the department called Fun Fridays. Some upcoming events included Fitness Bingo on July 5, Bocce Ball lessons on July 19 and the showing of Brave for Movies in the Park on July 26. • Recognition of Jack Drago Youth Art Scholarship Award recipients Irene Luu and Hazel Rojas. Cultural Arts Commission Chair James Bertoldi gave the history of the award and presented Hazel Rojas, recipient of one of the awards. Recipient Irene Luu was not available as she was visiting her new school. Ms. Rojas' thanked Council for the scholarship, stating it would be very helpful towards her education. AGENDA REVIEW Items heard in the following order: San Mateo County Youth Leadership Institute, City Selection Committees, items 1 -9, 11, 14, 10, 12, 16. PUBLIC COMMENTS Wynn Grcich spoke against fracking and the upcoming showing of the film Gasland 2. She also spoke against fluoride in the water system and recently published articles about fluoride and chloramines. Edith Arias thanked City staff, namely Parks and Recreation Director Sharon Ranals and staff Laura Armanino and Kelly Cullinan for the roles they have played in her son's life, who has special needs. Her son recently graduated high school and participated in the Full of Fun Camp run by Kelly and Laura. She spoke of the importance of the Parks and Recreations programs, which allow volunteer and other types of opportunities for the disabled community. It was her hope that the City would continue to open its doors towards full inclusion. Mayor Pro Tern Matsumoto also noted opportunities available through the Fire Department. Resident Linda McNeil spoke about residential parking issues experienced on Summit Court_ Mayor Gonzalez directed staff to connect with Ms. McNeil in order to address the situation. Kate MacKay spoke out against the protestors that have been present on Grand Avenue. She relayed an incident in which her son was present and emotionally harmed by the signs displayed by the protesters. She requested Council act to prohibit the signs as the space was a child/family oriented location with a library and school in the immediate vicinity. She equated their tactics to child abuse /endangerment. Lastly, she asked to be provided with contact information of the group that organizes the protest so she could pursue civil action against them. REGULAR CITY COUNCIL MEETING JUNE 26, 2013 MINUTES PAGE 2 Mayor Gonzalez understood Ms. MacKay's concerns and asked her for patience, as the matter would be coming before Council within the next couple of months. Councilmember Addiego conunended Ms. MacKay for speaking out and noted the protesters were not residents of the City. Mike Harris spoke about the ongoing issue involving a claim of damage done to his front porch in 2409. ITEMS FROM COUNCIL • Announcements. • Committee Reports. Councilmembers reported on attendance at community meetings and events, including an Open house at the X -ray House, the I00d' birthday Celebration of Ms. Alice Ng, and meetings of the Finance Subcommittee, the Bay Conservation Development Commission ( "BCDC ") , the City /County Associations of Governments ( "C /CAG ") , the County Board of Supervisors in regards to district elections, the Big Lift to Education Working Group, the League of Cities, the Grand Boulevard Initiative, the Housing Endowment and Regional Trust ( "HEART "), and the Association of Bay Area Governments ( "ABAG "). Announcements were made regarding the following items and upcoming events, including; the location of expired medication drop off boxes at Fire Station 61 and the Police Department, Nation Night Out on August 6, and the announcement of Richard Owyang as Grand Prize Winner for the Catch a Ride! Let's roll San Mateo County contest. Specific items for further action and/or consideration were set forth as follows: Mayor Pro Tern Matsumoto questioned the discussion of the investment policy regarding the fact that there is an asset management firm retained by the City, Chandler and Associates. Councilmember Addiego noted that it was actually a conference call with Chandler and Associates with Treasurer Risso present. City Manager Nagel added it was Chandler and Associates recommending the action to Council. Councilmember Gupta reported on developments in the Big Lift to Education program, specifically discussions with Onxy Director of Government Affairs, Michael �osco,, regarding comment [ail: Original text Lasso the potential of offering scholarships and paid internships from various biotech companies. His hope was that Council would have additional contacts that could be beneficial towards the development of the program. Mayor Pro Tern Matsumoto added that she had met with State Assembly member Kevin Mullin, who noted various sources of funding available. Councilman Garbarino requested the meeting be adjourned in memory of longtime family friend Daniel Kemper. REGULAR CITY COUNCIL MEETING JUNE 26.2013 MINUTES PAGE 3 Council decided to hear the Youth Leadership Institute item prior to the City Selection item. • San Mateo County Youth Leadership Institute. Certificates were presented to Stephanie Arias, Ulisess Arias, Korleen Perry, Andrea Acosta and Gabriel De La Cruz. The youth spoke about Project Casa, highlighting the dangers of second hand smoke within multi - family unit properties. Statistics were shared about the number of residents who found second hand smoke to be a problem versus those who spoke out against it. The group requested Council draft an ordinance prohibiting smoking inside of multi - family units and offered sample ordinance passed by nearby cities. Mayor Pro Tem. spoke in favor of the initiative and of her personal experience as a resident of a condominium. However, as a matter of enforcement, couldn't a resident go to their Home Owners' Association ( "HOA ") or the complex owner? City Attorney Mattas said it could be done that way and noted the City of Belmont does it on a complaint basis. Councilmember Addiego asked if someone would be grandfathered in or would they be forced to move. Attorney Mattas stated it would depend on how an ordinance was drafted, but grandfathering in would be difficult seeing as there was a high level of turn over in multi- family units. Councilmember Gupta commended the youngsters for their awareness and encouraged them to continue to do what they believe. As president of his HOA, he commented on how they were limited as to how much they could actually do. Ms. Acosta noted the policy would be about the smoke and not the smoker. At this time, Council would not consider the introduction and adoption of an ordinance related to the prohibition of smoking in inulti- family units. • City Selection Committee: ABAG, LAFCO. Council made the following committee selections: ABAG Executive Board: Mayor Pedro Gonzalez and Millbrae Council member Wayne Lee as alternate Council selected LAFCO: Half Moon Bay Council member Allan Alifano and City of Pacifica Council member Michael O'Neil as alternate. CONSENT CALENDAR Motion to approve the Minutes of the Meetings of June 12, 2013, 2. Motion confirming payment registers for June 26, 2013. REGULAR CITY COUNCIL MEETING JUNE 26, 2013 MINUTES PAGE 4 3. Motion to waive reading and adopt an Ordinance making revisions to Chapter 20.260 of the South San Francisco Municipal Code related to the Genentech Master Plan District, approving an amendment to the South San Francisco Zoning Map to include additional properties in the Genentech Master Plan District and approving two additional conditions applicable solely to the added properties, 4. Resolution awarding the construction contract to Casey Construction, Inc. of Emerald Hills, California, for the Littlefield Avenue North Sanitary Sewer and Storm Drain Improvements Project (Project No. ss1206) in an amount not to exceed $209,670. 5. Resolution approving consulting services agreements with CSG Consultants, Inc. of San Mateo, California and Ghirardelli Associates of Oakland, California for special on -call construction management & inspection services for various Capital Improvement Projects. 6. Resolution approving a Community Development Block Grant ( "CDBG ") Loan Agreement between the City of South San Francisco and the Boys & Girls Club, in an amount not to exceed $100,000. 7. Resolution authorizing the City Manager to execute the Program Supplemental Agreement No. 017 -NI with the State of California, for construction of preventative maintenance of seven (7) bridges and Program Supplemental Agreement No, 02.1 -N for preliminary engineering for the replacement of the South Airport Boulevard Bridge at North Access Road. Council requested to pull items 1 and 6. Motion - Councilmember Garbarino /Second - Councilmember Addiego: to approve consent calendar items 2 - 5, and 7. Unanimously approved by voice vote. Item #1 - After reading the minutes and reflecting on the exchange that transpired, Councilmember Addiego wanted to publicly apologize to Library Director Valerie Sommer for his unnecessary harshness of tone at the meeting of June 12. Motion - Councilmember Addiego /Second - Councilmember Garbarino: to approve consent calendar item #1. Unanimously approved by voice vote. Item #6 - Mayor Gonzalez recused himself and Ieft the room. Housing and Redevelopment Manager Norma Fragoso presented the staff report. Councilmember Gupta sought clarification as to why there was a difference in the terms of the loans being offered by the County and the City. The County's terms included loan forgiveness after 25 years with amount due if the club should become non operation prior to year 25. The City's terms included a forgiveness of 4% every year until all was forgiven on year 25. Councilmember Garbarino had the same question. REGULAR CITY COUNCIL MEETING JUNE 26, 2013 MINUTES PAGE 5 Mayor Pro Tern voiced her displeasure with the terms and also took issue with the placement of the item on the Consent Calendar, citing a lack of transparency. She felt since there was an alternative to staffs recommendation, the item should have been placed elsewhere on the agenda. City Manager Nagel informed Mayor Pro Tcm that it was not Ms. Fragoso's decision where to place the item and took responsibility for its placement under consent. Mayor Pro Tem expressed concern about setting precedent with these terms, with the thought that other groups would want the same deal. Ms. Fragoso stated similar terms had been set for other loans including some residential loans, Bronstein's Music, the Poplar Center and other commercial properties. Councilmember Addiego stated how proud he was of his service on the Board of the Boys and Girls Club. He did not share Mayor Pro Tem's opinion that there was a lack of transparency as the item was agendized and was being discussed. Looking at it differently, he noted the forgiveness of 4% per year was equal to a $4000 per year investment in the City's children who, if not at the Club, could very well be in danger. If the club lasted 25 years, that would be a very good investment. Mayor Pro Tem stated she was amicable with the loan being interest free, but she was not comfortable with the forgiveness of the debt. Councilmember Gupta clarified that his questioning of the terms was more oriented towards the difference of the two approaches and not the appropriateness of the loan. Assistant City Manager Van Duyn asked if there was an element of the loan that could be modified as the item needed to move forward in respect to the improvements that needed to be done. Councilman Addiego recalled how generous Council had been to the Historical Society, accepting $1.00 a year for a building purchased for $900,000.00. He hoped Council wasn't comment [az]: original text: al.00 entertaining ways to deny this item as it was his opinion that forgiving the loan was truly an for a $9900.00 building, investment in the club. He would agree with the Mayor Pro Tem's assertion that the City was not a cash cow if the money was coming from the General Fund, but it was not. Councilmember Garbarino asked if there was a way to restructure the loan. [Assistant City Manager Van Duyn stated there were many options that could be reviewed. He reminded Council that CDBG funds had a limited range of uses and were intended to go back into low to moderate income programs. Historically, the Boys and Girls Club had served this population well, which is why Council had been so generous in the past. To him this appeared to be an oversight issue rather than a sustentative one. He assured Council staff would be more that willing to address any oversight issue and encouraged them to move forward with a degree of encouragement.) Councilman Garbarino wanted to loan the club the money, but wanted to revisit the other options. REGULAR CITY COUNCIL MEETING MINUTES JUNE 26, 2013 PAGE Comment [a3]: original text: Assistant Manager Van Duyn stated there were man} options. He reminded Council that these were CDBG fiords and bad uses. These are fiends that were intended to be put back mto the reason why community development started in the first place, low to moderate income programs that servepeople so well. He reassured Counnl that oversigbt issues would be addressed and encouraged them to move to that step with a degree of encouragement of wanting to do so. City Attorney Mattas noted time constraints as related to services contracted by the school district. Permits could be issued within a week of loan approval. There were two options; have the loan structured as recommended by staff or structure the loan under similar terms to those of the County's. A discussion of terms could happen tonight and Council could move forward. Mayor Pro Tern Matsumoto added that the club was just given a $25,000 grant. Councilmember Addiego stated that Council has visited the club and understands the work done there. He argued that the amount being forgive each year essentially works out to $11.00 per child. It would sadden him if Council chose not to make that investment. Mayor Pro Tern noted there was a speaker card for Mike Harris. Mr. Harris was in agreement with Mayor Pro Tern and suggested the building and program be taken over by the Parks and Recreation department, that an ad hoc committee of various staff members be formed so the City had some say in operations. Motion - Councilmember Addiego /Second Councilmember Gupta: to approve resolution no. 2013. AYES: Councilmembers Addiego and Gupta, NOES: Councilmember Garbarino and Mayor Pro Tem Matsumoto, ABSTAIN: Mayor Gonzalez, ABSENT: None. Motion failed. Motion - Councilmember Addiego /Second Councilmember Gupta: to approve resolution No. - 2013 with changes made to reflect a no interest, no payment loan to be forgiven after 25 years or become due if services cease prior to 25 years. Motion approved by the following vote: AYES: Councilmembers Addiego, Garbarino, and Gupta, Mayor Pro Tern Matsumoto. NOES: None. ABSTAIN: Mayor Gonzalez. ABSENT: None. Recess: 9:22 p.m. Return to session: 9 :28 p.m. PUBLIC HEARING 8. Resolution approving Stormwater Management Service Charges for fiscal Year 2013- 2014 and Resolution adopting Report of Stormwater Management Service Fees for fiscal Year 2013 -2014. Interim Environmental Compliance Manager Rob Lecel presented the staff report highlighting the Water Quality Control Plant's accomplishments during the past year. Public Hearing opened and closed at 9:35 p.m. Mayor Pro Tern Matsumoto noted C /CAG was floating the idea of a tax initiative to help cover costs of directives coming down from the state. If this tax was not approved by the voter, would the City be responsible for the additional expenses? What would be the range of costs if initiative does not go through? Manager Leeel stated polling was already underway to measure the feasibility of a tax increase being approved by the voter. If the support was not there, the City would be responsible for REGULAR CITY COUNCIL MEETING JUNE 26, 2013 MINUTES PAGE 7 covering the costs of the unfunded mandates. This concern has been voiced by many cities but has been dismissed by the state with the belief that cities would find the money. Public Works Director Terry White responded to Mayor Pro Tem's question regarding the range in costs, which was speculative at this point. He had made informal estimates on his own, showing the base rate would have to go up five times from the current rate. The City was on the cusp of renewing and would End out the new requirements within the next 12 to 18 months. Motion - Councilmember Addiego /Second - Councilmember Garbarino: to approve Resolution No. 58 -2013. Unanimously approved by voice vote. Motion - Councilmember Addiego /Second - Councilmember Gupta: to approve Resolution No. 59 -2013. Unanimously approved by voice vote. 9. Resolution establishing the Sewer Service Rates effective for the Fiscal Year of 2013 -2014 and adopting a Report of the Annual Sewer Rentals or Charges for Fiscal Year 2013 -2014. Public Works Director Terry White presented the staff report explaining that this was the last year of a five (5) year plan put together in 2009 under Proposition 218. Council's plan to increase rates on the front end allowing for zero increases to occur in the last two years had been successful. In accordance, there would be no increase in this year's rate. Public Hearing opened at 9:45 p.m. Public Comments: Resident Mike Harris stated rates should be changed to $1.00 per day plus use. Tax bills have been raised for a number of years and this has been difficult on the retired community. Public Hearing closed at 9:46 p.m. Mayor Pro Tem Matsumoto stated the City of San Carlos recently adopted a plan that included a 25% increase, followed by 20% and then 10% increase equating to an increase of $804.00 /year. Compare that to South San Francisco's which was $532.00/year. Councilmember Garbarino asked why trailer courts rates were less than single family dwellings. Director White responded when basing rates on consumption was under consideration, it was assumed they would consume less. Since, studies had confirmed that trailer units do use less. A three year plan will be introduced next year with a likely showing of the multi family units dropping down to trailer court rates. Motion - Councilmember Gupta/Second - Councilmember Garbarino: to approve Resolution No. 60 -2013. Unanimously approved by voice vote. As noted during Agenda review, Council heard item #I I before item #10. ADMINISTRATIVE BUSINESS REGULAR CITY COUNCIL MEETING JUNE 26, 2013 MINUTES PAGE 8 11. Use of Departmental Donation Accounts. Finance Director Jim Steele presented the staff report. This item came about during previous meetings of the Budget Subcommittee and Budget Study Sessions. Accounts of particular interest were the Police Department's Asset Seizure Fund and the Library Donations Account. It was his understanding that Council wanted to consider a specific policy on use of the funds particularly regarding Capital Improvement Projects ( "CIP "). Staff was present to answer questions. �eferring to page two of the staff report. Councilmember Gupta stated Council could recommend putting the entire budget required for the Police Department lockers in the seizure funds rather than sharing with the General Fund as it is now. Howevei, he could not find where the project would fit under the uses allowed by the Drug Enforcement Agency ( "DEA ') and asked staff which of the 12 categories the lockers would come into He also asked if there were incentives not to use the seizure funds entirely.! Director Steele confirmed the item would be under item six (6) which covered costs of equipment needed for law enforcement purposes. Chief Massoni added building improvements had been approved as permitted uses. The plan included using half of the fund for the first phase of improvements with the remaining funds being used for the second phase. If everything moves forward as planned, the expenses total approximately $1.6 million, more than what is currently in the fund. Councilman Gupta understood that to mean there were inadequate funds available if Council should direct the cost of improvements to be paid for solely from the fund. Chief Massoni clarified it could be done, but stated the additional phases would not be able to be completed. The Department was hoping for a 50150 split in order to complete multiple phases. City Manager Nagel recalled the discussion as being a matter of cash flow. Was the discretion of Council to save the General Fund and exhaust the seizure fund with the notion that it would be replenished? The fund currently averaged $500,000/year. There was also discussion of adding an office to the task force, which may yield greater fonds. . Councilmember Addiego felt money from the General Fund was almost sacred because it could be used for anything, whereas seizure dollars had a defined list of approved uses. He would be supportive to the use of the General Fund if seizure dollars dry up. He wants the improvements to be funded completely by the asset seizure fund. Councilmember Gupta agreed with Councilmember Addiego. Mayor Pro Tern Matsumoto expressed concern about sending another officer to the DEA rather than having another officer on the streets and asked Chief Massoni how that would effect staffing levels, salary and overtime expenses, and the success of investigations. Further questions were posed regarding charges from the County, reimbursements related to officers place on school campuses and the Downtown Bike Patrol. REGULAR CITY COUNCIL MEETING JUNE 26, 2013 MINUTES PAGE 9 Comment [a4]: Original text Councilmember Gupta sought eonrnmation as to whether improvements to the Police Department locker rooms were an approved use for the funds under DEA guidetines Also, were three incentives for not usmg the fimds9 Given the most optimum circumstances, Councilmember Addiego asked Chief Massoni how many officers he would like. Chief Massoni stated 40 officers were needed to work patrol in order to be at full staffing. Sending an additional officer to the DEA would have no change on that level. There were currently 77 officers in the department with five (5) of those in training and a potential loss of four (4). Optimum staffing would be approximately 83 officers. The DEA would pay the salary and benefits of the additional officer to be assigned. Regarding overtime, the Chief explained costs associated with that are approximately $1 million/year and noted overtime was needed for various reasons such as court appearances and the completion of paper work/reports, not just manning the streets. The City was charged by the County for the Narcotics Task Force as there was currently no officer assigned. Regarding officers on school campuses, that was looked at as part of prevention and a way to provide intelligence and strengthen relations with the kids, The Downtown Bike Patrol currently consisted of two (2) officers for the summer, and one (1) year - round officer, Mayor Gonzalez shared Mayor Pro Tern's concerns about staffing levels, adding that he had heard officers were being lost to various cities. He wanted to consider hiring another officer with the money. Councilmember Addiego reiterated his opinion regarding the General Fund as a fund of last resorts. His preference was to leave it intact. Stemming from prior discussions on investment, he reminded staff how much effort it took to earn $500,000. Based on Council's consensus City Manager Nagel would direct staff to change the CIP to reflect funding for the locker room improvements come entirely from the asset seizure funds and asked Council if they had further questions for other departments. Discussion on Library donation account included a possible use as seed funding for a new Main Library. City Manager Nagel recommended Council consider the potential of receiving $1 million from Measure A funding. Library Director Valerie Sommer clarified the $1 million was requested because that was the minimum amount needed to address ADA improvements for the building. Mayor Pro Tem Matsumoto asked if Council was to be looking at creating a policy. City Manager Nagel explained the intent of the discussion was to provide clarification as to how staff should act regarding donations accounts. Director Sommer has been following protocol by holding on to the donations for the purpose of funding a main library and that is what staff would like to continue to do. However, Council could provide other direction. Mayor Gonzalez asked if it was urgent to decide tonight. City Manager Nagel stated it was not. The report was all encompassing as staff did not want to assume certain areas we of more importance. REGULAR CITY COUNCIL MEETING JUNE 2b, 2013 MINUTES PAGE 10 Mayor Gonzalez suggested waiting to see what happened with Measure A funding. Councilmember Gupta sought clarification as to when to act on the CIP item for the Police Department previously discussed. City Manager Nagel recommended formal action take place during discussion on the CIP, item I0(b). As he understood it, the library portion would be discussed in the future. Mayor Pro Tern Matsumoto requested to hear item 14 next out of consideration for Conference Center staff. Council agreed. 14. Resolution approving the South San Francisco Conference Center Authority Fiscal Year 2013 -2014 Operating Budget. Conference Center Authority ( "CCA ") Director Dean Grubl presented the staff report giving a brief overview of the CCA's accomplishments, projected revenues and expeditures. Councilman Addiego asked if the security personnel vacancies would remain unfilled. Director GrubI stated they were filled temporarily using an event security firm. Councilmember Gupta asked if the 20% decrease in operation expenditures was entirely related to the vacant security positions also, hearing of an overflow from San Francisco, the Councilmember asked if there was any pressure to expand operations. Director Grub] stated other retirements contributed to that percentage. Regarding an expansion, there was indeed an overflow from San Francisco. Expansion plans were being looked at through the Authority with an expansion meeting scheduled for next month to explore those opportunities. Motion - Councilmember Garbarino /Second - Mayor Pro Tem Matsumoto: to approve Resolution No. 64 -2013. Unanimously approved by voice vote. 10. Recommendation that the City Council (1) conduct a Public Hearing, (2) adopt a resolution approving the Capital Improvement Program (CIP) for Fiscal Year 2013 -2014, and (3) authorize staff to prepare plans and specifications for construction bids for construction advertising of projects under this program. Assistant Public Works Director /City Engineer Brian McMinn presented the staff report detailing the Capital Improvement Program. The program called for $9.$ million in appropriations with $1.13 million coming from the General Fund for 14 new projects and 1 I existing projects. Approval of this budget and prior year appropriations would result in a total Capital Program of $37 million appropriated to 63 projects. Items removed from the CIP and project reductions were detailed. Public Hearing opened and closed at 10:35 p.m. REGULAR CI'T'Y COUNCIL MEETING JUNE 26, 2013 MINUTES PAGE I I Councilmember Garbarino asked why the roof replacement for the IT building was removed. Assistant Director McMinn replied it was due to the fact that the building was formerly a Redevelopment property and was now in question. The roof replacement for the Magnolia Senior Center was still on. Relative to the removal of the Brentwood Park Tennis Courts, Mayor Pro Tern Matsumoto asked if the project could still be initiated for the same amount later on this fiscal year, or would it have to wait until next year. Assistant Director McMinn responded it was just removed from appropriations this year and was not precluded from coming back later on, as the funding mechanism would still be there. City Manager Nagel clarified this was a General Fund item. Councilmember Garbarino let Mayor Pro Tem know to expect request for new bathrooms if residents in the Brentwood Park area were to be polled. Councilmember Gupta wanted it noted that page 29 would now reflect the General Fund would be zero (0) and Other Police Seizure fund will be $1 million. Councilmember Addiego wanted to assure Chief Massoni that General Funds would be available should there be a shortfall in the asset seizure fund. Motion - Councilmember Gupta/Second - Councilmember Addiego: to approve Resolution No. 61 -2013. Unanimously approved by voice vote. 12. 2013 -2014 Budget Items: a. Resolution approving the Fiscal Year 2013 -2014 Operating Budget for the City of South San Francisco; appropriating the corresponding funds, authorizing the City Manager to make specified expenditures; approving the Gann Appropriations Limit; approving the Treasurer's Investment policy in 2013 -2014; and amending the Salary Schedule. b. Resolution approving changes to the 2013 -2014 Master Fee Schedule for fees for services. Finance Director Jim Steele presented the staff report which provided detailed information regarding the state of the local economy, the General Fund, services /need for more reliability and other funds. Mayor Pro Tern Matsumoto asked if the addition of the Parking Enforcement Officer was to address BART parking issues was due to an increase in ridership. Chief Massoni noted the issue at hand was riders parking in residential neighborhoods and metered spaces. REGULAR CITY COUNCIL MEETING JUNE 26, 2013 MINUTES PAGE 12 Mayor Pro Tern Matsumoto asked if the investment policy was online and accessible to residents. Director Steele was unsure but agreed to put it online in the case it was not. Councilmember Gupta thanked the Budget Subcommittee and staff for their hard work. He commended the City on their previous decisions and on the fact that it is one of the better fiscally managed cities, as evidenced by the percentage of the budget that is in reserves. Mayor Pro Tem Matsumoto asked about flexibility in terms of providing the Information Technology department (IT) with funds they may need for several in -house items. Director Steele referred Council to page 22 of the attachments, calling attention to the equipment replacement fund balance of $3.7 million. Additional money did exist. Councilmember Addiego sought clarification on the assessed value growth figures. Director Steele explained if someone bought their home during the market peak and reassessed at the market low, that amount becomes their new base but it is adjusted by a yearly CPI factor of 2 %. He was under the belief that if the market value goes up, previous years could be recovered, though he was uncertain. 3.8% overall was the assessed value growth in South San Francisco, which only a couple years ago was at zero. Mayor Gonzalez wanted to address the need for increased hours of operations at the Grand Avenue Library, currently open only four (4) days per week. Was there room in the budget to reopen the library an additional day, preferably Saturday? Students were not meeting the level of proficiency needed for success and an increase of hours in the Library's schedule was greatly needed within the community. Mayor Pro Tem understood the money for the Library was to be used for restorations. City Manager Nagel stated there were certainly dollars available and it was up to Council's discretion on how to use them, be it for restorations or for additional operating hours. Mayor Gonzalez sought CounciI's opinion on the matter, reiterating the programs offered by the library were those of the greatest need.. Councilmember Addiego was supportive of Mayor Gonzalez' initiative. An increase in hours was a good faith effort towards the community and the ultimate repurposing of the Grand Library did not preclude Council from doing something in short run. He asked Director Sommer an approximate amount needed to reopen the library for an additional day. Director Sommer reported the costs for operating an additional day was $50,000 /year. Hours would be Friday 10:00 a.m. to 6:00 p.m. or Saturday 10:00 a.m. to 5:00 p.m. She continued that historically, Saturdays have been the day of lowest attendance and believed Friday would be a better option for the community. Mayor Gonzalez reminded her to consider the growth in community and that families could visit the library together on 'Saturday. REGULAR CITY COUNCIL MEETING JUNE 26, 2413 MINUTES PAGE 13 She understood the Mayor's point and noted that for Summer Reading Programs, more families were at the Grand Library than at Orange Library. Mayor Gonzalez recommended reopening for both days, if for at least just for a partial day on Saturday. Councilman Addiego understood that there was a distinct need on Friday, but a little less on Saturday. Director Sommer confirmed his assessment, City Manager Nagel noted if Council's direction was to go with one or both of those days they would augment and make the changes in the Operating Budget and Salary Schedule. Motion - Councilmember Addiego /Second - Councilmember Gupta: to approve Resolution No 62 -2013 with a $100,000 augmentation related to the Library's Operating Budget and Salary Schedule. Director Steele noted one more item in the staff report regarding the Master Fee Schedule with additions and/or changes to the City Clerk, Planning, Library and Parks and Recreations Departments as detailed in the attachment. One change to note was related to Children's Material- books, audio, video etc. The current fee was $4.00 for the maximum overdue charge per item. This fee was to be lowered to $3.90. Motion - Councilmember Garbarino /Second - Councilmember Gupta: to approve Resolution No. 63 -2013. Unanimously approved by voice vote. 13. Resolution providing Interim Spending Authority for the first 60 days of the 2013 -2014 Fiscal Year, in the event the 2013 -2014 Operating Budget is not approved on June 26, 2013_ Item not heard. 15. Resolution approving interim funding for Fiscal Year 2013 -2014 for the South San Francisco Conference Center Authority, in the event the 2013 -2014 Operating Budget is not approved on June 26, 2013. Item not heard. 16. Resolution awarding the construction contract to Granite Rock Company DBA Pavex Construction Division, of San Jose, California for the U.S. 101 Ramp Improvements Project (Project No. trl 103, trl 105, trl 106, trl 107, tr1010) in an amount not to exceed $4,366,783.75. Principle Engineer Sam Bautista presented the staff report and gave an overview of the bid selection process and project information. Mayor Gonzalez asked if construction would be taking place on all three sections at he same REGULAR CITY COUNCIL MEETING JUNE 26, 2013 MINUTES PAGE M time. Engineer Bautista coordination had been done with Caltrans for work to be done one ramp at a time to lessen the impact of traffic. A traffic control plan would also be in place. Mayor Pro Tern Matsumoto asked if there was a schedule available for Grand and East Grand. She asked because she wanted to resurrection the issue of bicycle and pedestrian improvements with the Transit Authority and wanted to make sure the construction would not have an impact. Engineer Bautista stated one would be available from the contractor once the contract was approved. Director White stated the two were so independent of one another he did not foresee an issue if they were going on at the same time. Work could be completed in a short amount of time. Councilmember Addiego noted the company TY Lin was the same company that was completing the eastern span of the Bay Bridge. Councilmember Gupta asked how much was in the Traffic Impact Fee. Engineer Bautista explained the traffic impact fee was collected during the permitting process for projects east of 101. Currently there was over $8 million in the fund. The remaining amount after the reduction $6.3 million could be used for design improvements that are listed in the program. Councilmember Gupta asked if there would be enough left to do other things that were needed. Engineer Bautista stated there may be enough for restriping projects, but development will spur more money and make way for more projects. Motion Councilmember Garbarino/ Councilmember Gupta: to approve Resolution No. 65 -2013. Unanimously approved by voice vote. COMMUNITY FORUM None. ADJOURNMENT Being no further business, Mayor Gonzalez adjourned the meeting at 11:33 p.m. in honor of Daniel Kemper. Submitted: Approved: Arena M. Brown Pedro Gonzalez Deputy City Clerk, City of South San Francisco Mayor, City of South San Francisco REGULAR CITY COUNCIL MEETING JUNE 2G, 2013 MINUTES PAGE 15 Listing of City Payments for Council Review certify that the payments shown on this payment register are accurate and sufficient funds were available for payment.* DATED; 7/512013 s fro FINANCE DIRECTOR *!Vote: Items below do not include payroll related payments Checks: Date 06/24/13 06/26113 07/01113 07/03/13 Electronic Payments: Date 06/28/13 Total Payments $ Amount 290,196.72 228,408.00 470,044.20 1,014,212.90 Amount To 4,000.00 Neopost 2,006,861.82 .SJ 1-n S (E— C— C_C- Description Citywide Postage Meter Replenishment N N it Q_ L(7 1-- to (0 c C� M M M M r Co I-- OP Q r 437 Cl) C 7 Q O r) co co CO In (b o0 Q CO CD� (b a z O CD r' �r T m m m M w C) _ U N M M M (*l M M M M M M M I,- Cl) L37 La L UN T N N N N N N N V) N N N N N N N N N N N N N N N N N ti = '� p Q h! ti O O D7 "? h (� LO 00 Q r r r Li t4 w co co m Ub LO r •e-- r - GO f1 � I--. 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V' V' f1'1 LL Q N T z LWLI w w Z / U) U) O U} w U W w=- J U) 0 O 0 OI- z z z z V) U Q w O¢ �' H w W J J U m 0 ¢ m � � U) W W z (1) U) ¢ U) �p �1 � W O o, J V) ¢ (/) ¢ z z ¢ z z O z o ? w LY S U ¢ LL D LY O w m J U w O w t� z LL 0 U 0- 0 U m U U Q) Vi 2 tD 4 to t7 C7 0 O q O p o0 L.() M CO co Ir LO ?. = O rte- 0 0 0 0 O N U-) Cfl O OD tD r - to CD 6 tD Co 0 ° 0 ° 6 00 14 tp 6 M tv�j tp � C3 O 0 C7) M R N 6l N� tD c'] 04 N co m � N 0 117 N N l� (D co It CO "T r Q a M 05 LO L( 00 6 in w U_ a O z w °w �- Z Z a ZEU w LO a z O~ w 1 J �° w 4 J w © U v� k Q Z ¢ : z W U) OF- Z Z U U W o LU o �° a Q Z O d Q 2 Q J LU ° °� zz ¢ z a- t3 w¢ CD 0 W Lu r¢n 10 LU w w w O U) co w zL�lt� C) Z y ¢ yr [ z ¢z o o Q O x�= H LU a vi z *, z �. d FD a LU C z v z u w J r� LU t z z m LL m r- LU m Q Q �> L° z Z ¢ N O Of Z < o CL Q Q LL a� CL j -i C � o f Q 0 0- i a- car) D d 0 0¢ o< U C7 1 e CQ OR h CV t- t N 0 �+ ti O F O O t r" N U p p N W Z zi c C) ari c ti � a Q o H sHJ O Staff Re-Dort DATE: July 10, 2013 TO: Honorable Mayor and City Council FROM: Terry White, Director of Public Works SUBJECT: A RESOLUTION ACCEPTING GRANT FUNDS IN THE AMOUNTS OF $357,000 AND $1,000,000 FROM THE CITY /COUNTY ASSOCIATION OF GOVERNMENTS OF SAN MATEO COUNTY ONEBAYAREA GRANT PROGRAM AND AMENDING THE 2013 -2014 CAPITAL IMPROVEMENT PROGRAM BUDGET RECOMMENDATION It is recommended that the City Council adopt a resolution accepting grant funds in the amounts of $357,000 and $1,000,000 from the City /County Association of Governments of San Mateo County OneBayArea Grant ( "OBAG ") Program and amending the 2013-2014 Capital .Improvement Program Budget and authorizing staff to prepare the plans and specifications for these projects and authorize the solicitation of construction bids. BACKGROUND/DISCUS SION On May 9, 2013, the City /County Association of Governments of San Mateo County ( "C /CAME ") Board adopted a list of projects which would receive OBAG Congestion Mitigation and Air Quality ( "CMAQ ") funds. The City submitted applications for grant funding for the South San Francisco Gap Closure Project and the South San Francisco Grand Boulevard Project. The City was awarded grant funding for both projects. The South San Francisco Gap Closure Project will construct pedestrian sidewalks where there are gaps in the City's pedestrian sidewalk system, which have been identified during the development of the pedestrian master plan. Completing sidewalks will improve pedestrian mobility and safety throughout the City. The C /CAG Board awarded the City $357,000 from the 5t' Cycle Transit- Oriented Development Program to fund the construction of this project. The South San Francisco Grand Boulevard Project will improve El Camino Real between Chestnut Avenue and the Kaiser Hosptial intersection and helps set the stage for planned transit- oriented, mixed -use development along the frontage, as envisioned in the City's 2011 El Camino Real/Chestnut Avenue Area Plan. Project improvements include enhanced pedestrian crossings, with corner curb bulbouts and median refuges, expanded bus stop /waiting areas and a new landscaped median. The C /CAG Board award $1,000,000 from the OBAG Tranportation for Livable Communities (TLC) Program funds. Staff Report Subject: A RESOLUTION ACCEPTING GRANT FUNDS IN THE AMOUNT OF $357,000 AND $1,000,000 FROM THE CITY /COUNTY ASSOCIATION OF GOVERNMENTS OF SAN MATEO COUNTY ONEBAYAREA GRANT PROGRAM AND AMENDING THE 2012 -2013 CAPITAL IMPROVEMENT PROGRAM BUDGET Page 2 of 2 FUNDING Acceptance of the grant funds will require amending the 2013 -2014 Capital Improvement Project Budget to include the South San Francisco Gap Closure Project and the South San Francisco Grand Boulevard Project. The grant funding will require a minimum City match of 11.47% from Measure A funds to be appropriated to the project budgets. CONCLUSION Staff recommends accepting the grant funds in the amount of $357,000 and $1,000,000 from C /CAG for the South San Francisco Gap Closure Project and the South San Francisco Grand Boulevard project, respectively. This will allow the City to construct needed improvements in various parts of the city and along El Camino Real. The 2013 -2014 Capital Improvement Budget will be amended to include the grant funds and City Council authorizes staff to prepare the plans and specifications for these projects and authorizes the solicitation of construction bids. By: Terry White Director of �PUblic Works Attachments: Resolution sb/bm Approved: ~l Barry M1 City Manager Sidewalk Gap Exhibit (Attachment 1) South San Francisco Grand Boulevard (Attachment 2) RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION ACCEPTING GRANT FUNDS IN THE AMOUNT OF $357,000 AND $1,000,000 FROM THE CITY /COUNTY ASSOCIATION OF GOVERNMENTS OF SAN MATEO COUNTY {ONEBAYAREA GRANT PROGRAM AND AMENDING THE 2013 -2014 CAPITAL IMPROVEMENT PROGRAM BUDGET WHEREAS, the City of South San Francisco ( "City ") submitted applications to the City /County Association for Governments of San Mateo County ( "C /CAG ") for grant funding for the South San Francisco Gap Closure Project and the South San Francisco Grand Boulevard Project ( "Projects ") and was successful in obtaining funds; and WHEREAS, the C /CAG Board awarded the City $357,000 from the 5"' Cycle Transit Oriented Development Program to fund the construction of the South San Francisco Gap Closure Project; and WHEREAS, the C /CAG Board awarded the City $1,000,000 from OneBayArea Grant ( "OBAG ") Transportation for Livable Communities ( "TLC ") Program to fund the construction of the South San Francisco Grand Boulevard Project; and WHEREAS, the 2013 -2014 Capital Improvement Program Budget will be amended to include the South San Francisco Gap Closure Project and the South San Francisco Grand Boulevard Project; and WHEREAS, the City Council of the City of South San Francisco authorizes staff to prepare the plans and specifications for these projects and authorizes the solicitation of construction bids; and NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of South San Francisco that the City Council hereby approves the acceptance of grant funds in the amount of $357,000 and $1,000,000 from the City /County Association of Governments of San Mateo County OneBayArea Grant; and BE IT FURTHER RESOLVED, the City Council of the City of South San Francisco authorized appropriating minimum City match of 11.47% from Measure A fund to the project budgets; and BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute any documents necessary to effectuate the said grants on behalf of the City Council. -1- I hereby certify that the foregoing Resolution was regularly introduced and adapted by the City Council of the City of South San Francisco at a meeting held on the day of 2013 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: IPA City Clerk CL LLJ f-L- � � § § k G � � 2 � o u u A K d @ _ 7 2— IL O 4 f \ \ \ / ip, k 0 n H ti tr7 d �gxt�o Staff Reiport DATE: July 10, 2013 TO: Honorable Mayor and City Council FROM: Terry White, Director of Public Works SUBJECT: A RESOLUTION APPROVING AN AMENDMENT TO AN EXISTING CONSULTING SERVICES AGREEMENT WITH URS CORPORATION OF SAN JOSE, CALIFORNIA FOR AN ADDITIONAL SCOPE OF THE WORK TO INCLUDE ENGINEERING SERVICES DURING CONSTRUCTION OF THE US 101 RAMP IMPROVEMENT PROJECT (PROJECT NO. TR1010) IN AN AMOUNT NOT TO EXCEED $60,620 RECOMMENDATION It is recommended that the City Council adopt a resolution approving an amendment to an existing Consulting Services Agreement with URS Corporation of San Jose, California for an additional scope of work to include Engineering Services during construction of the US 101 Ramp Improvement Project (Project No. tr1010) in an amount not to exceed $60,620. BACKGROUND/DISCUS SION On August 11, 2010, URS Corporation (URS) was awarded a design contract to prepare documents for the City of South San Francisco for improvements located at the US 101 South Airport Boulevard off -ramp to add an additional exit lane and to modify the South Airport Boulevard and Utah Avenue intersection to add an additional left turn lane from southbound South Airport Boulevard onto Utah Avenue. This improvement is related to the award ofthe construction contract to Granite Rock Company DBA Pavex Construction Division of San Jose, California, which was on the June 26, 2013 agenda. Staff is recommending additional engineering services during construction from URS because of their familiarity with the project and the specialized, complex nature of the improvements. This amendment to the existing consulting services agreement scope includes attending construction meetings; review of submittals; performing specialty Inspections; evaluating change orders; preparing record drawings; and assisting in the final close -out to meet the City's requirements. The proposed scope of services is attached. Shown below is the proposed cost estimate: Construction Management Services (URS Corporation) $ 60,260.00 Contingency (10 %4) $_ 6,026.00 Total S 66,286,00 Staff Report Subject: A RESOLUTION APPROVING AN AMENDMENT TO AN EXISTING CONSULTING SERVICES AGREEMENT WITH URS CORPORATION FOR THE US 101 RAMP IMPROVEMENTS PROJECT IN AN AMOUNT NOT TO EXCEED $60,620 Page 2 of 2 Staff is requesting that a contingency be established in the budget to cover any extension of the construction period due to construction change orders and any support in the defense of potential claims. No compensation beyond the not to exceed amount will be authorized without a mutually agreed upon level of effort and corresponding contract amendment. FUNDING Funding for this project is from East of 101 Traffic Impact Fees and is included in the City of South San Francisco's proposed 2013 -2014 Capital Improvement Program (CIP). Sufficient funds have been allocated to cover the project cost. CONCLUSION Executing the amendment to the existing Consulting Services Agreement with URS Corporation will ensure that the construction will meet the plans and specifications for the US 101 Off -Ramp at South Airport Boulevard and the South Airport Boulevard at Utah Avenue Improvements. By: Terry White Director of Pdblic Works Attachments: Resolution Scope of Services rth/sb Approved: arry M. Nagel City Manager RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION APPROVING AN AMENDMENT TO AN EXISTING CONSULTING SERVICES AGREEMENT WITH URS CORPORATION FOR THE US 101 RAMP IMPROVEMENTS PROJECT IN AN AMOUNT NOT TO EXCEED $60,620 WHEREAS, on August 11, 2010, URS Corporation ( "URS ") was awarded a consulting services agreement for design services for the US 101 Ramp Improvements Project ( "Project "); and WHEREAS, due to the Project's complexity and specialization, City of South San Francisco ( "City ") staff recommends approving an amendment to an existing consulting services agreement with URS Corporation of San Jose, California for an additional scope of work to include Engineering Services during construction of the Project in an amount not to exceed $60,620; and WHEREAS, the Project is included in the City of South San Francisco's 2013- 2014 Capital Improvement Program ( "CIP ") and sufficient funds have been allocated to cover the Project cost. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of South San Francisco that the City Council hereby approves a consulting services agreement for the US 101 Ramp Improvements with URS Corporation of San Jose, California, in an amount not to exceed $60,620. BE IT FURTHER RESOLVED that the City Council of the City of South San Francisco authorizes the Finance Department to establish the Project Budget consistent with the information contained in the staff report. BE IT FURTHER RESOLVED that the City Council of the City of South San Francisco hereby authorizes the City Manager to execute the consulting services agreement on behalf of the City upon timely submission by URS' signed contract and all other required documents, subject to approval 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 meeting held on the day of 2013 by the following vote: AYES: NOES: ABSTAIN: ABSENT: 2044576.1 9A ATTEST: City Clerk 0 PO t 0 � \ � V CN C:14 CD or. 4-4 Z +� u E? 0 z 000 cm 0 (D CQ CD cc (561-+6 to) 0 CY) iN C� CD �2 Lr) C),C) co: 69-� C) CO CcDq to t4g, CD co " 0 w Olk 0 V3- C)� 0 0 � 0 CD � to C3 C) to IMF 0 N w ■cu CD S U) T- w 0 C) 0 L) cl) R CL uj Ln ID co W. 0 CD; N! 0: C\J 0 Rt ( � co En 0 U) p cr 000 cm 0 (D CQ CD cc (561-+6 to) 0 CY) iN C� CD �2 Lr) DATE: July 10, 2013 TO: Honorable Mayor and City Council FROM: Terry White, Director of Public Works SUBJECT: A RESOLUTION AWARDING THE CONSTRUCTION CONTRACT TO ROOFING CONSTRUCTORS, INC. DBA WESTERN ROOFING SERVICE OF SAN LEANDRO, CALIFORNIA FOR THE SIEBECKER RECREATION BUILDING ROOF REPLACEMENT PROJECT IN AN AMOUNT NOT TO EXCEED $104,993 RECOMMENDATION It is recommended that the City Council adopt a resolution awarding the construction contract to Roofing Constructors, Inc, dba Western Roofing Service of San Leandro, California for the Siebecker Recreation Building Roof Replacement Project (Project No. pf1303) in an amount not to exceed $104,993. BACKGROUND/DIS CUS SION In 2008, Skyline Engineering was contracted by the Building Maintenance Division to conduct a survey of all the roofs of major City facilities, such as City Hall, the Municipal Services Building and the Siebecker Recreation Building. The survey indicated that the existing Siebecker Recreation Building's roof had a useful life of approximately 4 to 5 years remaining. In November 2012, the Engineering Division contracted with Skyline Engineering to design a new roofing system for the Siebecker Recreation Building. During this past winter during rain events, surveys of the roof showed that rain water was ponding in depressions on the roof. The 20 -year -old roof membrane was deteriorated and not properly draining. The new roofreplacement design was completed in early May 2013. Staff advertised a Notice Inviting Bids for the project on May 23, 2013 and May 30, 2013. On June G, 2013, a mandatory site meeting was held and 10 prime contractors were present. On June 20, 2013, staff received eight (8) bids in response. The lowest responsible bidder was Roofing Constructors, Inc. dba Western Roofing Service of San Leandro, California. Staff has verified the low bidder's current contractor's license with the California State Licensing Board and found it to be in good standing and also contacted references provided. The following is a summary of base bid for all bids received: Engineer's Estimate $ 85,000 Roofing Constructors Inc. dba Western Roofing Service of San Leandro, CA $104,993 Staff Report Subject: RESOLUTION AWARDING THE CONSTRUCTION CONTRACT TO ROOFING CONSTRUCTORS, INC. DBA WESTERN ROOFING SERVICE OF SAN LEANDRO, CALIFORNIA FOR THE SIEBECKER RECREATION BUILDING ROOF REPLACEMENT PROJECT IN AN AMOUNT NOT TO EXCEED $104,993 Page 2 of 2 Andy's Roofing Company Inc. of Milpitas, CA $105,374 Waterproofing Associates, Inc. of Mountain View, CA $108,285 Pioneer Contractors Inc. of San Francisco, CA $109,000 Petersen Dean Commercial, Inc, dba Petersen Dean of Newark, CA $109,928 Best Contracting Services, Inc, of Gardena, CA $112,109 MCM Roofing Company, Inc. of McClellan, CA $114,649 Southwest Construction & Property Management of San Bruno, CA $117,753 It is staff s opinion that the construction costs are higher than Engineer's Estimate due to the extra Iabor to correct the drainage deficiency on the roof plus the cost to obtain a 5 -year workmanship bond required in the contract. Shown below is the project budget: Construction Contract with Western Roofing Service $104,993 Construction Contingency (15%) $ 15,749 Construction Inspection (Skyline Engineering) $ 5,000 Construction Management (10 %) $ 10,500 Total Project Construction Budget $136,242 This City funded project does not have any Disadvantage Business Enterprise (DBE) requirements. FUNDING Funding for this project is included in the City of South San Francisco's 2013 -2014 Capital Improvement Program (CIP/Project No. pfl 303) and sufficient funds have been allocated to cover the project cost. CONCLUSION Staff recommends awarding the construction contract to Roofing Constructors, Inc. dba Western Roofing Service for the replacement of the roof at Siebecker Recreation Building. The replaced roof would not require any major repairs for approximately 20 years. By: Terry t Director oY Public Works rth/sb Attachinent: Resolution Approved 11arry M. Nagel City Manager RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AWARDING THE CONSTRUCTION CONTRACT TO ROOFING CONSTRUCTORS, INC. DBA WESTERN ROOFING SERVICE FOR THE SIEBECKER RECREATION BUILDING ROOF REPLACEMENT PROTECT IN AN AMOUNT NOT TO EXCEED $104,993 WHEREAS, City of South San Francisco ( "City ") staff issued a Notice Inviting Bids for the Siebecker Recreation Building Roof Replacement Project ( "Project ") and on June 20, 2013, received eight (8) bids in response; and WHEREAS, Roofing Constructors, Inc. dba Western Roofing Service of San Leandro, California, was the lowest responsible bidder; and WHEREAS, staff recommends awarding the construction contract to Roofing Constructors, Inc. dba Western Roofing Service ( "Western Roofing ") of San Leandro, California, in an amount not to exceed $104,993; and WHEREAS, the Project is included in the City of South San Francisco's 2013- 2014 Capital Improvement Program ( "CIP ") and sufficient funds have been allocated to cover the Project cost; and NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of South San Francisco that the City Council hereby awards the construction contract for the Siebecker Recreation Building Roof Replacement Project to Roofing Constructors, Inc. dba Western Roofing Service of San Leandro, California, in an amount not to exceed $104,993 conditioned on Western Roofing's timely execution of the Project contract and submission of all required documents, including but not limited to, certificates of insurance and endorsements, in accordance with the Project documents. BE IT FURTHER RESOLVED that the City Council of the City of South San Francisco authorizes the Finance Department to establish the Project Budget consistent with the information contained in the staff report. BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute the documents on behalf of the City upon timely submission by Roofing Constructors, Inc. dba Western Roofing Service of San Leandro signed contract and all other documents, subject to approval by the City Attorney. -1- I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a meeting held on the day of 2013 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: -2- City Clerk DATE: July 10, 2013 TO: Honorable Mayor and City Council FROM: Marty Van Duyn, Assistant City Manager SUBJECT: INTRODUCE AN ORDINANCE APPROVING AN AMENDED DEVELOPMENT AGREEMENT FOR THE PREVIOUSLY ENTITLED 249 EAST GRAND AVENUE OFFICER &D PROJECT, TO REFLECT MODIFICATIONS TO THE USE PERMIT TO ALLOW A PARKING SPACE REDUCTION RESULTING IN A RATIO OF 2.50 PARKING SPACES PER 1,000 SQUARE FEET, MINOR BUILDING ADJUSTMENTS AND TEMPORARY OFF -SITE PARKING AT 213 EAST GRAND AVENUE DURING PHASE IV CONSTRUCTION AT 249 -289 EAST GRAND AVENUE IN THE BUSINESS TECHNOLOGY PARK (BTP) ZONING DISTRICT IN ACCORDANCE WITH SSFMC CHAPTERS 19.60,20. 110 & 20.330. Applicant/ Property Owner: Alexandria Real Estate Equities, Inc. (ARE) Site Address: 249 — 289 E. Grand Avenue (APNs: 015- 050 -440 & 015- 050 -450) Case Nos. P05 -0019: UPM13 -0002 & DAA13 -0002 RECOMMENDATION It is recommended that the City Council waive reading and introduce an Ordinance adopting an Amended Development Agreement for the previously entitled 249 East Grand Avenue Office/R &D Project. BACKGROUND (A complete discussion of the proposed Project is contained in the attached Planning Commission staff report dated June 20, 2013) Original Entitlements On July 12, 2006, after review by the Design Review Board and Planning Commission, the City Council approved a Conditional Use Permit, Transportation Demand Management Plan (TDM), Sign Program, Tentative Map, Development Agreement, and Planned Unit Development Permit and certified an Environmental Impact Report (EIR) for the development of the 15.75 acre site located at 249 East Grand Avenue. The Project consists of a campus -style research & development complex with four (4), three to five story office/R &D buildings totaling approximately 534,500 square feet, with 5,500 square feet of ancillary retail space, and a four (4) level parking garage. At the time the original project was approved the site was zoned P -I (Planned Industrial). In 2010 the Zoning Ordinance update was adopted which rezoned the Project site to BTP, Business Technology Park, which is consistent with the General Plan Land Use Designation for the area. Staff Report Subject: 249 East Grand Avenue Project Page 2 of 3 Proposed Project Currently the Project site contains two buildings. Building 1 (Phase 1), 249 East Grand was constructed in 2008 and has a LEED Silver certification. This is the western most building on the site and is 4- stories and 136,191 square feet. Building 4 (Phase II), 259 East Grand was constructed in 2012 and is 5- stories and 163,257 square feet. Currently the applicant is seeking a LEED Platinum rating for the 259 East Grand Avenue building. Both buildings are currently occupied by Onyx Pharmaceuticals. Planning Commission Action The Planning Commission reviewed and approved the proposed Use Permit modifications to the 249 East Grand Avenue Office/R &D Project on June 20, 2013. Based upon South San Francisco Municipal Code requirements, the City Council is only obligated to review the Amended Development Agreement for the Project. Therefore, staff has provided an overview and brief description below of the proposed changes to the Project that triggered the modifications to the originally approved Development Agreement. DISCUSSION Development Agreement As part of the 2006 Project approvals, the City and the developer negotiated a Development Agreement (DA). The DA allows the developer to vest certain rights to development and use, in exchange for agreeing to certain terms, such as fees and improvements. The original DA has been amended to reflect the proposed Project modifications as detailed above and the First Amendment to the Development Agreement (Amended DA) is attached, along with the originally approved DA. The Amended DA specifically states that all of the provisions of the Original Agreement remain in full force and effect, except as detailed in the Amended DA. With the proposed project modifications, the City and applicant have agreed to the following additional terms to be applied to the Project including the Public Safety Impact Fee, revisions to the terms of the Rails -to- Trails improvements, and modification to the implementation date for the Public Art requirement as described below. Public Safety Impact Fee - The Public Safety Impact Fee was adopted by the City Council in December 2012. This impact fee will only apply to the construction of 269 East Grand (Building 2, Phase III) and 279 East Grand (Building 3, Phase IV), but will not apply to the two (2) existing buildings on -site, or the parking garage (Phase IV). Rails -to- Trails - The northerly edge of the Project site abuts a former rail corridor that is identified in the General Plan as a future bike path. The original DA required the applicant to improve the approximately 1,000 ft. long segment of this former rail corridor if it became available for public use during the term of the Development Agreement, but until recently the property was privately owned and not available for conversion to public use. HCP now owns this R -O -W, and with approval of Development Agreements for recent HCP projects (328 Roebling and 494 Forbes) the City has the ability to secure a public access easement through this property, allowing the trail improvements to proceed. The amended DA reflects this and Rails -to- Trails Improvements have been accelerated and modified to be consistent with the terms of these other nearby properties that are subject to this requirement; Staff Report Subject: 249 East Grand Avenue Project Page 3 of 3 ■ Public Art Contribution — The required installation date for public artwork was changed from December 31, 2014 to June 30, 2014 as a result of the Amended DA negotiations. Planning Commission — June 20, 2013 At the Planning Commission meeting of June 20, 2013, the Commission reviewed the proposed Use Permit modifications as well as the Amendments to the Development Agreement, and unanimously approved the related entitlements and recommended that Council approve the Amended DA. The only question the Commission had was with regard to the south wall of the overflow parking structure (that would only be constructed if the parking ratio increases to 2.83). They wanted to verify that there would be landscaping planted in front of the south wall (front) of the structure. Staff and . the project architect confirmed that the south wall would include landscaping, but that the plans for the proposed modifications were site plans that did not include specific landscape details. The minutes of the Commission meeting are attached. CONCLUSION: The proposed Project complies with the goals and objectives of the City's General Plan to develop high - quality, well - designed office and R &D developments throughout the northern portion of the East of 101 area. The Amended DA includes minor revisions to reflect the modifications to the 2006 Use Permit approval including: a reduced parking ratio of 2.5 parking spaces 1,000 square feet, deferring construction of the parking garage from Phase III to Phase IV, temporary off -site parking at 213 East Grand during the construction of Phase IV, and a revision to the requirement to provide 5,500 square feet of ancillary retail spaces within the Project. The Amended Development Agreement provides adequate controls to ensure the orderly development of the site. Therefore, staff recommends that the Cite- Council waive reading and introduce an Ordinance adopting a First Amendment to the Development Agreement for the 249 East Grand Avenue Office /R &D Project. By: By: .� Marty Van Du Barry Nagel Assistant City Manag City Manager Attachments: 1. Ordinance adopting the First Amendment to the Development Agreement for the 249 East Grand Avenue Office/R &D Project. 2. Planning Commission Staff Report and Minutes — Meeting of June 20, 2013 3. Planning Commission Resolution 2734 -2013 — Use Permit Modifications 4. Fehr & Peers Parking Study for 249 East Grand Avenue- March 9, 20112 5. Revised Plan Set — March 2013, DGA BMN/MVD /GB /cb ORDINANCE NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO STATE OF CALIFORNIA AN ORDINANCE ADOPTING A FIRST AMENDEDMENT TO THE DEVELOPMENT AGREEMENT FOR THE 249EAST GRAND AVENUE OFFICER &D PROJECT WHEREAS, Alexandria Real Estate Equities (ARE) ( "Owner" or "Applicant ") submitted an application requesting approval of Use Permit modifications and modification of the associated Development Agreement, which would collectively authorize a parking space reduction from the previously approved ratio of 2.83 parking spaces per 1,000 square feet to 2.5 parking spaces 1,000 square feet; deferring construction of the parking garage from Phase III to Phase IV of construction; allowance for temporary off -site parking at 213 East Grand Avenue during Phase IV of construction; and a revision to the requirement to provide 5,500 square feet of ancillary retail space, to be located at 249 -289 East Grand Avenue, in the Business Technology Park (BTP) Zoning District; and, WHEREAS, as part of its application, the Applicant has sought approval of a First Amendment to the Development Agreement, which would clarify and obligate several project features and mitigation measures, including public art, rails -to- trails improvements, and mitigations fees for traffic impact, and an additional fee, the Public Safety Impact Fee; and WHEREAS, approval of the Applicant's proposal is considered a '`project" for purposes of the California Environmental Quality Act, Pub. Resources Code, §§ 21000, et seq. ( "CEQA "); and, WHEREAS, the City Council certified an Environmental Impact Report ( "EIR ") on July 12, 2006 in accordance with the provisions of CEQA and the CEQA Guidelines, which analyzed the potential environmental impacts of the Project; and, WHEREAS, the Planning Commission held a duly noticed public hearing on June 20, 2013, to solicit public comment and consider the proposed modifications and take public testimony, at the conclusion of which the Planning Commission conditionally approved the entitlements and recommended that the City Council approve the First Amendment to the Development Agreement; and, WHEREAS, the City Council held a duly noticed public hearing on July 10, 2013, to consider the First Amendment to the Development Agreement, and take public testimony. NOW, THEREFORE, the City Council of the City of South San Francisco does hereby ordain as follows: -1- SECTION 1. Findings. That based on the entirety of the record before it, which includes without limitation, the California Environmental Quality Act, Public Resources Code § 21000, et seq. ( "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 Municipal Code; the Project applications; the 249 East Grand Avenue Office/R& D Project, as prepared by Dowler- Gruman Architects; the EIR, including the Draft and Final EIR prepared and certified for the 249 East Grand Avenue Office/R &D Project and appendices thereto; all site plans, and all reports, minutes, and public testimony submitted as part of the Planning Commission's meeting held on June 20, 2013; all reports, minutes, and public testimony submitted as part of the City Council's duly noticed public hearing on July 10, 2013; and any other evidence (within the meaning of Public Resources Code § 21080(e) and § 21082.2), the City Council of the City of South San Francisco hereby finds as follows: A. The foregoing Recitals are true and correct and made a part of this Ordinance. B. The proposed First Amendment to the Development Agreement (attached as Exhibit A), is incorporated by reference and made a part of this Ordinance, as if set forth fully herein. C. 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. D. The proposed Project modifications are consistent and compatible with all elements in the City of South San Francisco General Plan. The General Plan includes policies and programs that are designed to encourage the development of research and development and office uses in the East of 101 Area. Further, the land uses, development standards, densities and intensities, buildings and structures proposed are compatible with the goals, policies, and land use designations established in the General Plan (see Gov't Code, § 65860), and none of the land uses, development standards, densities and intensities, buildings and structures will operate to conflict with or impede achievement of the any of the goals, policies, or land use designations established in the General Plan. Specifically, the General Plan includes policies and programs that are designed to encourage the development of high technology campuses in the East of 101 Area, allow for employee- serving vendor services, preparation of a TDM plan and traffic improvement plan to reduce congestion impacts, and provision of a framework for requiring future circulation system improvements as they are needed to prevent deficient levels of service from being reached. E. The City Council has independently reviewed the proposed First Amendment to the Development Agreement, the General Plan, the South San Francisco Municipal Code, and applicable state and federal law, including Government Code section 65864, et seq., and has determined that the proposed Development Agreement complies with all applicable zoning, subdivision, and building regulations and with the General Plan. This finding is based upon all -2- evidence in the Record as a whole, including, but not limited to: the City Council's independent . review of these documents, oral and written evidence submitted at the public hearings on the Project, including advice and recommendations from City staff. G. The proposed Development Agreement incorporates the permitted uses, density and intensity of use for the property subject thereto, as reflected in the proposed Project (P05- 0019), Use Permit Modification (MPM13 -0002) and Development Agreement Amendment (DAA13- 0002). This finding is based upon all evidence in the Record as a. whole, including, but not limited to, the City Council's independent review of the proposed First Amendment to the Development Agreement and its determination that Section 3 of the Development Agreement sets forth the Project Approvals, development standards, and the documents constituting the Project. H. The proposed Development Agreement states the maximum permitted height and size of proposed buildings on the property subject thereto. This finding is based upon all evidence in the Record as a whole, including, but not limited to, the City Council's independent review of the proposed Development Agreement and its determination that Section 3 of the Agreement sets forth the documents which state the maximum permitted height and size of buildings. I. The proposed Development Agreement states specific provisions for reservation or dedication of land for public purposes. This finding is based on all evidence in the Record as a whole, including, but not limited to the City Council's independent review of the Development Agreement. SECTION 2. Approval of Development Agreement. A. The City Council of the City of South San Francisco hereby approves the proposed First Amendment to the Development Agreement with ARE -San Francisco No. 12, LLC, a Delaware limited company, ARE -San Francisco No. 44, LLC, a Delaware limited liability company, and ARE -San Francisco No. 46 LLC, a Delaware limited liability company, attached hereto as Exhibit A and incorporated herein by reference. B. The City Council further authorizes the City Manager to execute the First Amendment to the Development Agreement, on behalf of the City, in substantially the form attached as Exhibit A, and to make revisions to such Agreement, subject to the approval of the City Attorney, which do not materially or substantially increase the City's obligations thereunder. SECTION 3. 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 -3- 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 4. 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 at a regular meeting of the City Council of the City of South San Francisco, held the 10th day of July, 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 32013, Mayor -4- Exhibit A FIRST AMENDMENT TO DEVELOPMENT AGREE_VIENT 249 East Grand Avenue Office/Research and Development Project This FIRST AMENDMENT TO DEVELOPMENT AGREEMENT FOR 249 EAST GRAND AVENUE OFFICE/RESEARCH AND DEVELOPMENT PROJECT (the "Project ") is dated as of , 2013 ( "First Amendment "), between (i) on the one hand, (A) ARE -SAN FRANCISCO NO. 12, LLC, a Delaware limited liability company ( "ARE -SF 12 "), (B) ARE -SAN FRANCISCO NO. 44, LLC, a Delaware limited. liability company ( "ARE -SF 44 "), and (C) ARE -SAN FRANCISCO NO. 46, LLC, a Delaware limited liability company ( "ARE -SF 46 "), and (ii) on the other hand, the CITY OF SOUTH SAN FRANCISCO, a municipal corporation organized and existing under the laws of the State of California (the "City "). ARE -SF 12, ARE -SF 44, and ARE -SF 46, on the one hand, and the City, on the other hand, are collectively referred to herein as "Parties ". RECITALS A. WHEREAS, California Government Code Sections 65864 through 65869.5 authorize the City to enter into binding development agreements with persons having legal or equitable interests in real property for the development of such property or on behalf of those persons having same; and, B. WHEREAS, pursuant to California Government Code Section 65865, the City has adopted rules and regulations, embodied in Chapter 19.60 of the South San Francisco Municipal Code, establishing procedures and requirements for adoption and execution of development agreements; and, C. WHEREAS, the City and ARE -SF 12 entered into a certain Development Agreement dated July 26, 2006, for the development of the Project (the "Original Agreement "), as approved and adopted by the City Council through the adoption of Ordinance No. 1372- 2006 (which took effect on August 25, 2006) (a copy such Ordinance, including the Original Agreement, was recorded in the Official Records of San Mateo County, California, on February 5, 2007, as Instrument No. 2007 - 018093); and, D. WHEREAS, in conjunction with the Original Agreement, ARE -SF 12 submitted a development proposal to the City, as depicted on the "249 East Grand Plan Set ", dated July 12, 2006, prepared by Dowler -Gruman Architects (the "Architect ") and attached_ to the Original Agreement as Exhibit B (the "Original Plan Set "); and, E. WHEREAS, at the time the Original Agreement was approved and adopted, the legal description of the real property subject to the Original Agreement (the "Prop was as set forth in Exhibit A attached hereto and incorporated herein by reference; and, -5- F. WHEREAS, after the Original Agreement was approved and adopted, ARE -SF 12 re- subdivided the Property by filing a new parcel map, which parcel map resulted in the legal description of the Property being as set forth in Exhibit B attached hereto and incorporated herein by reference; and, G. WHEREAS, on June 22, 2012, ARE -SF 12 transferred to ARE -SF 44 all of ARE -SF 12's right, title, and interest in that certain portion of the Property particularly described in Exhibit C attached hereto and incorporated herein by reference (the "First Transferred Parcel "), and, in conjunction with such transfer, (i) ARE -SF 12 assigned to ARE -SF 44 all of ARE -SF 12's rights, interests, and obligations under the Original Agreement with respect to the First Transferred Parcel, and (ii) ARE -SF 44 assumed all of ARE -SF 12's obligations under the Original Agreement with respect to the First Transferred Parcel (provided, however, that this assignment and assumption of the rights, interests, and obligations under the Original Agreement was on a non - exclusive basis, so that ARE -SF 44 has the rights, interests, and obligations under the Original Agreement to the extent required to facilitate the development of the First Transferred Parcel, and ARE -SF 12 has the rights, interests, and obligations under the Original Agreement to the extent required to facilitate the development of the remainder of the Property); and, H. WHEREAS, on May 16, 2013, ARE -SF 12 transferred to ARE -SF 46 all of ARE -SF 12's right, title, and interest in that certain portion of the Property particularly described in Exhibit D attached hereto and incorporated herein by reference (the "Second Transferred Parcel "), and, in conjunction with such transfer, (i) ARE -SF 12 assigned to ARE -SF 46 all of ARE -SF 12's rights, interests, and obligations under the Original Agreement with respect to the Second Transferred Parcel, and (ii) ARE -SF 46 assumed all of ARE -SF 12's obligations under the Original Agreement with respect to the Second Transferred Parcel (provided, however, that this assignment and assumption of the rights, interests, and obligations under the Original Agreement was on a non - exclusive basis, so that ARE -SF 46 has the rights, interests, and obligations under the Original Agreement to the extent required to facilitate the development of the Second Transferred Parcel, ARE -SF 44 has the rights, interests, and obligations under the Original Agreement to the extent required to facilitate the development of the First Transferred Parcel, and ARE -SF 12 has the rights, interests, and obligations under the Original Agreement to the extent required to facilitate the development of the remainder of the Property); and, I. WHEREAS, (i) ARE -SF 12 has completed construction of a 4 -story office /research and development building totaling approximately 136,191 square feet on the portion of the Property commonly known as 249 East Grand Avenue (the "Phase 1 Building "), and (ii) ARE -SF 44 has completed construction of a 5 -story office /research and development building totaling approximately 163,257 square feet on the portion of the Property commonly known as 259 East Grand Avenue (and referred to in this First Amendment as the First Transferred Parcel) (the "Phase 2 Building "); and, J. WHEREAS, (i) ARE -SF 46 also intends to construct a 3 -story office /research and development building totaling approximately 102,616 square feet on the portion of the Property to be commonly known as 269 East Grand Avenue (and referred to in this First Amendment as the Second Transferred Parcel) (the "Phase 3 Building "), and -6- (ii) ARE -SF 12 also intends to construct (A) a 4 -story office /research and development building totaling approximately 137,936 square feet on the portion of the Property to be commonly known as 279 East Grand Avenue (the "Phase 4 Building "), and- (B) a 4 -level above - ground parking garage on the northern-most parcel of the Property (the "G_ arage "); and, K. WHEREAS, ARE -SF 12, ARE -SF 44, and ARE -SF 46, as "owners" of the Property, have a legal interest in the real property subject to the Original Agreement; and, L. WHEREAS, ARE -SF 12, ARE -SF 44, and ARE -SF 46 have filed an application for a modification (the "Use Permit Modification ") of the Conditional Use Permit (UP05 -0005) that underlies the Original Agreement (the "Original Use Permit "), and, in conjunction with such Use Permit Modification, have submitted to the City a supplemental Plan Set, dated , 2013, prepared by the Architect (the "Supplemental Plan Set ") (the Use Permit Modification, Supplemental Plan Set, and Conditions of Approval are attached hereto as Exhibit F and incorporated herein by reference); and, M. WHEREAS, ARE -SF 12, ARE -SF 44, and ARE -SF 46 have requested the City to enter into this First Amendment to modify the rights and obligations of the Parties relating to the development of the Project; and, N. WHEREAS, all proceedings necessary for the valid adoption and execution of this First Amendment have taken place in accordance with Government Code Sections 65864 through 65869.5, the California Environmental Quality Act, and Chapter 19.60 of the South San Francisco Municipal Code; and, O. WHEREAS, the City Council and the Planning Commission have found that this First Amendment and the Use Permit Modification are consistent with the objectives, policies, general land uses, and programs specified in the South San Francisco General Plan as adopted on October 13, 1999, and as amended from time to time; and, P. WHEREAS, on 2013, the City Council adopted Ordinance No. approving and adopting this First Amendment, and the Ordinance thereafter took effect on .2013. AGREEMENT NOW, THEREFORE, the Parties, pursuant to the authority contained in Government Code Sections 65864 through 65869.5 and Chapter 19.60 of the South San Francisco Municipal Code, and in consideration of the mutual covenants and agreements contained herein, agree as follows: 1. Effective Date Pursuant to Section 19.60.140 of the South San Francisco Municipal Code, notwithstanding the fact that the City Council adopts an ordinance approving this First Amendment, this First Amendment shall be effective and shall only create 110 obligations for the Parties from and after the date that the ordinance approving this Agreement takes effect ( "Effective Date "). 2. Defined Terms As of the Effective Date, (i) the term "Agreement ", as used in the Original Agreement and/or this First Amendment, shall mean the Original Agreement, as amended by this First Amendment, (ii) the term "Use Permit ", as used in the Original Agreement and/or this First Amendment, shall mean the Original Use Permit, as amended by the Use Permit Modification, (iii) the term "Plan Set ", as used in the Original Agreement and/or this First Amendment, shall mean the Original Plan Set, as amended by the Supplemental Plan Set, and (iv) the term "Owner ", as used in the Original Agreement and/or this First Amendment, shall mean ARE -SF 44 and its successors and assigns, as to the First Transferred Parcel, ARE -SF 46 and its successors and assigns, as to the Second Transferred Parcel, and ARE -SF 12 and its successors and assigns, as to the remainder of the Property and as to any rights and/or obligations that pertain to the Project as a whole rather than to individual portions of the Property (whether such portions have been transferred to another person or entity or retained by ARE -SF 12) (e g_, the rights and obligations set forth in Sections 3(b) and NO below and the rights and obligations regarding the Rails To Trails improvements set forth in Section 12(b) of the Original Agreement, as amended by Section 6 below). Any initially - capitalized term used in this First Amendment without being expressly defined when first used shall have the meaning given to such term in the Original Agreement. 3. Modification of Project Description and Selected Standards For Project In accordance with the Use Permit Modification and the Supplemental Plan Set: (a) The first paragraph of Section 3 of the Original Agreement shall be amended so that the Project shall consist of four (4) 3- to 5 -story office /research and development buildings totaling approximately 540,000 square feet, a 4 -level above -ground parking garage, and related improvements, as provided in the Original Plan Set, as amended by the Supplemental Plan Set, both as approved by the City Council. (b) The required parking ratio for all uses in the Project shall be 2.50 parking spaces per 1,000 square feet; provided, however, that Owner may elect, in its sole discretion, to increase the required parking ratio up to, but not more than, 2.83 parking spaces per 1,000 square feet (i) by giving the City written notice of such election at least sixty (60) days before the increase in the required parking ratio is to become effective, and (ii) by simultaneously submitting to the City a Transportation Demand Management (TDM) report documenting that the goal of 32% alternative mode usage by employees within the Project has been achieved as of date not more than sixty (60) days prior to the submission of such TDM report to the City. The TDM report will be prepared by an independent consultant, retained by the City with the approval of Owner (which approval shall not be unreasonably withheld or delayed) and paid for by Owner, which -8- consultant will work in concert with Owner's TDM coordinator. The TDM report will include supporting statistics and analysis to establish attainment of the goal, including, but not limited to, a determination of historical employee commute methods, which information shall be obtained by a survey of all employees working in all previously constructed buildings on the Property (with all non - responses being counted as a drive alone trip). (c) During construction of the Phase 3 Building, the Phase 4 Building, the Garage, and the remainder of the Project, interim parking shall be provided as follows: 1. Existing temporary surface parking on the Property will be removed to construct the Phase 3 Building. New surface parking (some permanent, some temporary) will be constructed on the eastern portion of the Property to replace the temporary surface parking that will be removed to construct this building. The new surface parking will be completed before the temporary surface parking is removed, in order to maintain the required parking (based on a parking ratio of 2.50 parking spaces per 1,000 square feet) for the previously constructed Phase 1 Building and Phase 2 Building. 2. After completion of the Phase 3 Building, existing temporary surface parking on the Property will be removed to construct the Phase 4 Building and the Garage. The temporary surface parking to be removed for these buildings will create a deficit of 517 parking spaces (based on a parking ratio of 2.50 parking spaces per 1,000 square feet) for the previously constructed Phase 1 Building, Phase 2 Building, and Phase 3 Building. Owner will provide temporary surface parking to cover such deficit by causing new temporary surface parking to be constructed on the nearby site commonly known as 213 East Grand Avenue (which is owned by ARE -San Francisco No. 21, L.P., a California limited partnership, and ARE -San Francisco No. 42, LLC, a Delaware limited liability company, affiliates of Owner) ("Off-Site Parking Parcel "). The new surface parking will be completed before the temporary surface parking is removed, in order to maintain the required parking (based on a parking ratio of 2.50 parking spaces per 1,000 square feet) for the previously constructed Phase 1 Building, Phase 2 Building, and Phase 3 Building. Any agreement(s) necessary to construct the new temporary surface parking on the Off -Site Parking Parcel shall be Owner's sole responsibility. City staff review of applications for permits or other certificates or approvals necessary to construct the new temporary surface parking on the Off -Site Parking Parcel shall be limited as provided in Section 4 of the Original Agreement. 3. All interim parking shall be in the locations depicted on the Supplemental Plan Set or in such other locations as may be reasonably approved by the City. -9- 4. Vesting of Approvals Upon the City's approval of the Use Permit Modification, the Supplemental Plan Set, and this First Amendment, such approvals shall vest in Owner and its successors and assigns as provided in Section 5 of the Original Agreement. 5. Public Safely pact Fees Owner hereby agrees that the Public Safety Impact Fee, as approved and adopted by the City Council through the adoption of Ordinance No. 97 -2012 (which took effect on February 8, 2013), shall apply to the Phase 3 Building and the Phase 4 Building, but shall not apply to the Phase 1 Building, the Phase 2 Building, or the Garage. Public Safety Impact Fees for the Phase 3 Building and the Phase 4 Building shall be determined based on the application of the formula in effect as of the time such Public Safety Impact Fees become due and payable. Section 9 of the Original Agreement shall not be amended except to the extent necessary to give effect to this Section. 6. Rails To Trails Improvements Section 12(b) of the Original Agreement shall be deleted in its entirety and replaced with the following: "(b) Rails To Trails Improvements or Payment. The rail corridor abutting the northerly boundary of the Property, consisting of a narrow strip of land extending from Forbes Boulevard at its westerly end to Allerton Avenue at its easterly end and more particularly described in Exhibit E attached hereto and incorporated herein by reference (the "Trail Corridor "): (i) is identified in the City's General Plan as a future bike path, and (ii) is currently owned in fee by HCP Forbes, LLC ( "HCP "). The City is considering whether and how to implement a "rails to trails" program that would cause the Trail Corridor and other similarly situated paths and corridors in the City to be improved and made available for public use. As part of that process, (x) the City and HCP have included certain provisions concerning the Trail Corridor in the Development Agreement (the "HCP Agreement ") for the property commonly known as 494 Forbes Boulevard, and (y) the City and Bayside Area Development, LLC ( "Bayside "), have included certain provisions concerning the Trail Corridor in the Development Agreement (the " Bayside Agreement ") for the properties commonly known as 328 Roebling Road, 340 Roebling Road, and 233 East Grand Avenue (the "Bayside Property"). For purposes of this Agreement, the term "Adjacent Trail Corridor" shall mean the portion of the Trail Corridor that abuts the northerly boundary of the Property and is bounded on the westerly end of such portion by Forbes Boulevard and is bounded on the easterly end of such portion by an extension of the eastern most boundary line of the Property that intersects and is roughly perpendicular to the southerly boundary of the Trail Corridor, excepting the portion of the Trail Corridor that abuts the northerly boundary of the Property and is bounded on the westerly end of such excepted portion by an extension of the westerly boundary line of the Bayside Property and is bounded on the easterly end of such excepted -10- portion by an extension of the easterly boundary line of the Bayside Property. The City hereby acknowledges and agrees that the timing for improving the Trail Corridor and for making the Trail Corridor available for public use (either through a dedication of the Trail Corridor for public use or through a conveyance to the City or its designee of fee title to the Trail Corridor) will be governed by the terms and conditions of the HCP Agreement and the Bayside Agreement. Accordingly, Owner and the City will reasonably cooperate and coordinate with HCP and Bayside with respect to any obligations Owner may have concerning the Adjacent Trail Corridor. Further, by written notice to Owner, the City, in its reasonable discretion, may elect to require Owner to implement either the provisions of subsection 12(b)1. below ( "Option A ") or the provisions of subsection 12(b)2. below ("Option B "); provided, however, the City cannot elect to implement Option A unless and -until the City elects to implement similar options in the HCP Agreement and the Bayside Agreement. If the City fails to notify Owner of its election before December 31, 2014, then the City shall be deemed to have elected Option B. 1. Qption A. If the City elects to implement Option A, then Owner shall do the following at Owner's sole cost and expense: (A) Owner, in consultation with the City, shall design improvements to the Adjacent Trail Corridor (the "Adjacent Trail Corridor Prima Improvements "). Except as otherwise mutually agreed by Owner and the City, said Adjacent Trail Corridor Primary Improvements shall consist of paving, lighting, and landscaping of a design and scope consistent with standard portions of the City's then existing Rails to Trails corridor of the Bay Trail. In addition, Owner, in consultation with the City, shall design a stairway and wheelchair lift from the Property to the Adjacent Trail Corridor Primary Improvements, in the location depicted on the Supplemental Plan Set or in such other location as may be reasonably approved by the City, and a bicycle access path across the Property from Roebling Road to the Adjacent Trail Corridor Primary Improvements, in such location as may be reasonably approved by the City (collectively, the "Adjacent Trail Corridor Access Improvements "). The Adjacent Trail Corridor Primary Improvements and the Adjacent Trail Corridor Access Improvements are referred to collectively in this Agreement as the "Adjacent Trail Corridor Improvements ". The City hereby acknowledges and agrees that any agreement(s) (other than the HCP Agreement and the Bayside Agreement) that may be necessary to allow Owner to enter the Trail Corridor to install the Adjacent Trail Corridor Primary Improvements shall be the City's sole responsibility. Owner shall submit to the City plans and a cost estimate for the Adjacent Trail Corridor Improvements, for review and approval by the City, within six (6) months after receiving notice that the City has elected to implement Option A. -11- (B) Upon approval of such plans and cost estimate by the City, Owner shall construct the Adjacent Trail Corridor Improvements in accordance with the approved plans in all material respects. Owner shall complete construction of said Adjacent Trail Corridor Improvements by the later of (i) the date that is twelve (12) months after the City's approval of the plans and cost estimate for such improvements, and (ii) August 25, 2016 (subject, however, to (x) delays in obtaining any agreement(s) necessary to allow Owner to enter the Trail Corridor to install the Adjacent Trail Corridor Primary Improvements, (y) atypical delays in obtaining the City's approval of the plans for the Adjacent Trail Corridor Improvements, and/or (z) atypical delays in obtaining any permits or other certificates or approvals necessary to install the Adjacent Trail Corridor Improvements). (C) Once installed, Owner shall have no responsibility for the maintenance, repair, or replacement of any of the Adjacent Trail Corridor Primary Improvements, except to the extent any such maintenance, repair, or replacement is necessary because of damage caused by Owner. Once installed, Owner, at Owner's sole cost and expense, shall be responsible for the maintenance, repair, or replacement of all of the Adjacent Trail Corridor Access Improvements. 2. Option B. If the City elects (or is deemed to have elected) to implement Option B, then Owner shall do the following at Owner's sole cost and expense: (A) Owner, within six (6) months after receiving written notice that the City has elected (or is deemed to have elected) to implement Option B, shall provide the City with a written cost estimate, subject to the City's review and approval, of the costs that would be required for construction of the Adjacent Trail Corridor Improvements of a nature and scope comparable to those described in subsection 12(b)1.(A) above. (B) Upon approval of such cost estimate by the City, Owner, at or before the earlier of (i) issuance of a Certificate of Occupancy for the final building constructed as part of the Project (other than the Garage), and (ii) August 25, 2016, shall provide to the City funds in an amount equal to the aggregate cost set forth in such approved cost estimate, which funds shall then be used by the City solely to upgrade substandard portions of the City's then existing Bay Trail or to install new park or trail improvements within the East of 101 Planning Area. -12- C) Upon written request by Owner, the City shall provide Owner with a description, in reasonable detail, of the sources and applications of funds provided by Owner and by other similarly situated property owners for the Bay Trail upgrades or other new park or trail improvements (as applicable) contemplated in subsection 12(b )2.(B). 3. Assessment District. If at any time the City decides to form an assessment district with the objective of acquiring and completing a rails to trails conversion for the rail corridor that includes the Trail Corridor, Owner agrees not to oppose the formation of such a district, provided that such assessment district includes substantially all other similarly situated properties benefited by the proposed conversion and that the provisions governing such assessment district include reimbursement or credit to Owner for (A) any amounts already expended by Owner for design and construction of Adjacent Trail Corridor Improvements pursuant to Option A above, and/or (B) any amounts paid by Owner to the City pursuant to Option B above." 7. Public Art Contribution Each reference to "December 31, 2014" contained in Section 12(c) of the Original Agreement shall be deleted and replaced with "June 30,2014". 8. Miscellaneous (a) Except to the extent amended and/or modified by this First Amendment, the Original Agreement is hereby ratified and confirmed and all other provisions of the Original Agreement shall remain in full force and effect, unaltered and unchanged by this First Amendment. If any provision of this First Amendment conflicts with and cannot be reconciled with any provision of the Original Agreement, the provision of this First Amendment shall control. All of the provisions of the Original Agreement (applying the defined terms set forth in clauses (i), (ii), (iii), and (iv) of Section 2 above) are made a part of, and are incorporated into, this First Amendment as if set forth in full in this First Amendment (including, but not limited to, the provisions set forth in Sections 17, 22, 26, 21. 28 29, 34Ua), 24(b), 34(2) 3M do, and 240e of the Original Agreement). (b) This First Amendment may be executed in any number of counterparts, each of which shall be deemed an original and all of which, taken together, shall constitute a single agreement with the same effect as if all Parties had signed the same signature page. Any signature page from any counterpart of this First Amendment, signed only by one Party, may be detached from such counterpart without impairing the legal effect of the signature(s) thereon, provided that such signature page is re- attached to another counterpart of this First Amendment that has a signature page signed by another Party. -13- 9. Exhibits Exhibit A — Original Legal Description of Property Exhibit B — Current Legal Description of Property Exhibit C — Legal Description of First Transferred Parcel Exhibit D — Legal Description of Second Transferred Parcel Exhibit E — Legal Description of Trail Corridor Exhibit F — Use Permit Modification / Supplemental Plan Set / Conditions of Approval -14- IN WITNESS WHEREOF, the City has executed this First Amendment on the day and year first above written. ATTEST: City Clerk APPROVED AS TO FORM City Attorney CITY OF SOUTH SAN FRANCISCO I: -15- City Manager IN WITNESS WHEREOF, ARE -SF 12, ARE -SF 44, and ARE -SF 46 have executed this First Amendment on the day and year first above written. ARE -SAN FRANCISCO NO. 12, LLC, a Delaware limited liability company By: Alexandria Real Estate Equities, L.P., a Delaware limited partnership, Managing Member By: ARE -QRS CORP., a Maryland corporation, General Partner By: _ Name: Title: ARE -SAN FRANCISCO NO. 44, LLC, a Delaware limited liability company By: Alexandria Real Estate Equities, L.P., a Delaware limited partnership, Managing Member By: ARE -QRS CORP., a Maryland corporation, General Partner By: _ Name: Title: ARE -SAN FRANCISCO NO. 46, LLC, a Delaware limited liability company By: Alexandria Real Estate Equities, L.P., a Delaware limited partnership, Managing Member By: ARE -QRS CORP., a Maryland corporation, General Partner By: _ Name: Title: -16- STATE OF CALIFORNIA ) COUNTY OF ) On , 2013, before me, , a Notary Public in and for said State, personally appeared , who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he /she executed the same in his/her authorized capacity, and that by his/her signature on the instrument, the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. My commission expires: My commission number is: [AFFIX SEAL] SIGNATURE OF NOTARY -17- STATE OF CALIFORNIA COUNTY OF On , 2013, before me, , a Notary Public in and for said State, personally appeared , who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he /she executed the same in his/her authorized capacity, and that by his/her signature on the instrument, the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. My commission expires: My commission number is: [AFFIX SEAL] SIGNATURE OF NOTARY -18- EXHIBIT A ORIGINAL LEGAL DESCRIPTION OF PROPERTY All that certain real property in the City of South San Francisco, County of San Mateo, State of California, more particularly described as follows: LOT 27, BLOCK 2, AS SHOWN ON THE MAP OF "CABOT CABOT AND FORBES INDUSTRIAL PARK UNIT NO. 1 -B ", FILED MAY 25, 1966, IN BOOK 64 OF MAPS, PAGES 49 -51, SAN MATEO COUNTY RECORDS. [The foregoing legal description does not include any exceptions or reservations or any easements or other rights that may be appurtenant to such real property] ASSESSOR'S PARCEL NOS. 015- 050 -440, 015- 050 -450 -19- EXHIBIT B CURRENT LEGAL DESCRIPTION OF PROPERTY All that certain real property in the City of South San Francisco, County of San Mateo, State of California, more particularly described as follows: PARCELS 1, 2, 3, 4, AND 5, AS SHOWN ON PARCEL MAP 05 -0002, FILED MAY 15, 2008, IN BOOK 78 OF PARCEL MAPS, AT PAGES 48 TO 53, SAN MATEO COUNTY RECORDS. [The foregoing legal description does not include any exceptions or reservations or any easements or other rights that may be appurtenant to such real property] ASSESSOR'S PARCEL NOS. 015- 050 -780, 015- 050 -790, 015- 050 -800, 015- 050 -810, 015 -050- 820, 015- 050 -830, 015- 050 -840 -20- EXHIBIT C LEGAL DESCRIPTION OF FIRST TRANSFERRED PARCEL All that certain real property in the City of South San Francisco, County of San Mateo, State of California, more particularly described as follows: PARCEL 4, AS SHOWN ON PARCEL MAP 05 -0002, FILED MAY 15, 2008, IN BOOK 78 OF PARCEL MAPS, AT PAGES 48 TO 53, SAN MATEO COUNTY RECORDS. [The foregoing legal description does not include any exceptions or reservations or any easements or other rights that may be appurtenant to such real property] ASSESSOR'S PARCEL NO. 015- 050 -820 -21- EXHIBIT D LEGAL DESCRIPTION OF SECOND TRANSFERRED PARCEL All that certain real property in the City of South San Francisco, County of San Mateo, State of California, more particularly described as follows: PARCEL 2, AS SHOWN ON PARCEL MAP 05 -0002, FILED MAY 15, 2008, IN BOOK 78 OF PARCEL MAPS, AT PAGES 48 TO 53, SAN MATEO COUNTY RECORDS. [The foregoing legal description does not include any exceptions or reservations or any easements or other rights that may be appurtenant to such real property] ASSESSOR'S PARCEL NO. 015- 050 -800 -22- EXHIBIT E LEGAL DESCRIPTION OF TRAIL CORRIDOR All that certain real property in the City of South San Francisco, County of San Mateo, State of California, more particularly described as follows: LOT 7 IN BLOCK 2 OF CABOT, CABOT & FORBES INDUSTRIAL PARK UNIT NO. 1, AS SHOWN ON MAP FILED FEBRUARY 26, 1965, IN BOOK 61, PAGES 45 THROUGH 49 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. [The foregoing legal description does not include any exceptions or reservations or any easements or other rights that may be appurtenant to such real property] -23- EXHIBIT F USE PERMIT MODIFICATION / SUPPLEMENTAL PLAN SET / CONDITIONS OF APPROVAL [ See Following Pages ] -24- Planning Commission 4°R`*`x Staff Report DATE: June 20, 2013 TO: Planning Commission SUBJECT: Use Permit Modification and a modification of the associated Development Agreement to allow a parking space reduction resulting in a ratio of 2.50 parking spaces per 1,000 square feet, minor building adjustments and temporary off -site parking at 213 East Grand Avenue during Phase IV of construction for the previously entitled 249 East Grand Avenue Office/R &D Project, at 249 — 289 East Grand Avenue in the Business Technology Park (BTP) Zoning District in accordance with SSFMC Chapters 19.60, 20.110 & 20.330. Applicant/ Property Owner: Site Address: Case Nos. RECOMMENDATION Alexandria Real Estate Equities, Inc. (ARE) 249 — 289 E. Grand Avenue (APNs: 015- 050 -440 & 015- 050 -450) P05 -0019: UPM13 -0002 & DAA13 -0002 Staff recommends that the Planning Commission conduct a public hearing and adopt a Resolution making findings and conditionally approving modifications to the approved Use Permit (UPM13 -0002) and recommending that the City Council adopt an Ordinance approving the proposed First Amendment to the Development Agreement. BACKGROUND On July 12, 2006, after review by the Design Review Board and Planning Commission, the City Council approved a Conditional Use Permit, Transportation Demand Management Plan (TDM), Sign Program, Tentative Map, Development Agreement and Planned Unit Development Permit for the development of the 15.75 acre site located at 249 East Grand Avenue. The Project consists of a campus -style research & development complex with four (4), three to five story office/R&D buildings totaling approximately 534,500 square feet, with 5,500 square feet of ancillary retail space, and a four (4) level parking garage. The entitlement approvals also included certification of an Environmental Impact Report (EIR) with the adoption of a Statement of Overriding Considerations and Mitigation Monitoring and Reporting Program. At the time the original project was approved the site was zoned P -I (Planned Industrial). In 2010 the Zoning Ordinance update was adopted which rezoned the Project site to BTP, Business Technology Park, which is consistent with the General Plan Land Use Designation for the area. Currently the Project site contains two buildings. Building 1 (Phase 1), 249 East Grand was constructed in 2008 and has a LEED Silver certification. This is the western most building on the site and is 4- stories and -25- Staff Report Subject: 249 East Grand Avenue Date: June 20, 2013 Page 2 136,191 square feet. Building 4 (Phase II), 259 East Grand was constructed in 2012 and is 5- stories and 163,257 square feet. Currently the applicant is seeking a LEED Platinum rating for the 259 East Grand Avenue building. Both buildings are currently occupied by Onyx Pharmaceuticals. DISCUSSION Overview — 2013 Project Modifications (Use Permit Modification Application) Parking & Phasing The applicant is seeking a Use Permit Modification and an amendment to the associated Development Agreement to allow a parking space reduction from the previously approved ratio of 2.83 parking spaces per 1,000 square feet to 2.5 parking spaces 1,000 square feet, as well as to allow temporary off -site parking during Phase IV of construction. The current tenant's utilization of the parking supply is significantly lower than 2.83 spaces per 1,000 square feet. In order to avoid installing an overabundant supply of parking, which far exceeds the current demand, the applicant is requesting a reduction of the approved parking ratio from 2.83 to 2.5 per 1,000 square feet. The parking garage was originally supposed to be constructed in Phase III, during the construction of 269 East Grand, but is being deferred to Phase IV given that the parking demand is far below the approved ratio. During the construction of Phase IV the applicant has requested permission to create temporary surface parking on the neighboring 213 East Grand Avenue site. This off -site parking arrangement is needed only during construction of the final phase; otherwise the parking demand can be accommodated at a 2.5 ratio. To support the requested parking space reduction the applicant hired transportation consultants, Fehr & Peers, to conduct a parking utilization study. This study was performed when there was only one building on -site, 249 East Grand, and measured the peak parking demand for the existing building. The amount of occupied parking was counted every hour from 10:00 a.m. to 3:00 p.m. for two consecutive days. The peak hour parking demand generally occurred between 2:00 p.m. and 3:00 p.m., with a 75% occupancy rate. The average peak parking demand ratio was 2.05 spaces 1,000 square feet with the peak parking demand ratio of 2.15 spaces per 1,000 square feet. Fehr & Peers suggested that the parking supply should however be between 5 to 10 percent higher than the peak parking demand; therefore they recommended a parking ratio of 2.37 parking spaces per 1,000 square feet. The applicant's request for a reduced ratio of 2.5 parking spaces per 1,000 square feet would provide an adequate buffer of reserve spaces based upon the results and recommendation in the parking utilization study. Parking Phasing Modifications The Project was approved for four (4) office buildings totaling 540,000 square feet with a required parking ratio of 2.83 parking spaces per 1,000 square feet. Currently there are two of the four proposed buildings on -site constructed, totaling 299,448 square feet with 749 parking spaces on -site, for a parking ratio of 2.5 spaces per 1,000 square feet. There is a designated parking reserve area which can provide 99 additional parking spaces, to meet the currently required parking ratio of 2.83 per 1,000 square feet, but demand has never reached a level to trigger its construction. The attached Project plans provide additional details with site plans that include a graphic representation of each phase, along with a corresponding summary tab -26- Staff Report Subject: 249 East Grand Avenue Date: June 20, 2013 Page 3 Phase III: The next phase of development proposed is the construction of 269 East Grand (Building 2), which will be 3- stories and 102,616 square feet. This phase proposes relocating 196 surface parking spaces to accommodate the new building. A total of 213 parking spaces will be located on the eastern portion of the site. The new 213 surface parking spaces will be completed prior to the removal of the existing 196 spaces. During the construction of 269 East Grand, there will be a total of 770 on -site parking spaces, for a parking ratio of 2.5 parking spaces per 1,000 square feet, and at completion the parking supply will increase to 1,006, maintaining the same 2.5 space/ 1000 sf ratio. Off -Site Parking Phase IV: The construction of the final building, 279 East Grand (Building 3) and the 4 -story parking garage are included in Phase IV. The last building, 279 East Grand, will be 4- stories and 137,936 square feet. The preparation for the construction of these two buildings involves the removal of 517 surface parking spaces. Of the 1,006 parking spaces on -site, only 489 spaces will remain during the construction of Phase IV. To address this construction period shortfall, the proposed modifications include temporarily relocating the parking spaces to a nearby site, 213 East Grand. SSFMC Section 20.330.005D allows the Planning Commission to approve off -site parking, subject to approval of a Use Permit, when the following conditions are met: • Off -site parking must be located within 400 feet, along a paved handicap accessible walk, of the principal entrance containing the use for which the parking is required. • A parking agreement shall be submitted, subject to approval by the City Attorney in one of the following options: o Covenant running with the land, to be recorded in the County Recorder's Office; or o Parking lease agreement for the proposed off -site parking facility signed by both the permittee and property owner, to be recorded in the County Recorder's Office. The proposed off -site parking meets the required conditions with the Project site at 249 -289 East Grand located within 400 feet of the proposed off -site parking location at 213 East Grand. The First Amendment to the Development Agreement will meet the condition requiring a parking agreement as it covers the terms and provisions related to the proposed off -site parking at 213 East Grand Avenue. It has been approved by the City Attorney and will be recorded in the County Recorder's Office. As shown on the attached plan, the site at 213 East Grand can provide a total of 592 parking spaces exceeding the 517 displaced from the development site. The 213 East Grand site is located one property (approximately 300' -350') west of the development property, within easy walking distance, and is also owned by the applicant. The existing buildings at 213 East Grand will need to be demolished and site preparation will be required for the temporary parking, which is reflected in the attached Conditions of Approval. With the inclusion of this off-site parking, a supply of 2.68 parking spaces per 1,000 square feet will remain available. Upon completion of Phase IV, the final construction phase, the off -site parking would be removed as the parking needs of 2.5 spaces per 1,000 square feet will be met on -site through 542 surface parking spaces -27- Staff Report Subject: 249 East Grand Avenue Date: June 20, 2013 Page 4 and 808 spaces within the 4 -story parking garage. Parking Contingency The applicant wants to reserve the opportunity to increase the parking ratio back to 2.83. As part of the Use Permit Modifications, the proposed Project includes a reserve of 179 parking spaces that could be constructed on -site to increase the parking ratio to 2.83 parking spaces per 1,000 square feet, for a total of 1,529 on -site parking spaces. This would only proceed if the applicant first provides the City with at least a 60 -day written notice and submits a Transportation Demand Management (TMD) report documenting that the goal of 32% alternative mode usage by employees has been achieved. Ancillary Retail Space & Building Modifications Included as part of the Project modifications the applicant is also requesting a revision to the requirement to provide 5,500 square feet of ancillary retail spaces, as originally approved in 2006. The ancillary retail space (approximately 3,500 square feet) was to have been constructed within (Building 2) 269 East Grand at the main project entry, and an approximately a 2,000 square foot fitness center was to be provided at the center of the parking structure. The applicant notes that the existing tenant currently provides several on- site amenities and services to their employees which exceed the 5,500 square foot requirement. Building 4, 259 East Grand has an 8,931 square foot cafeteria and 249 East Grand (Building 1) has a 900 square foot fitness center. Mobile dry cleaning and tailoring services are provided to employees as well. The next new building (Building 2) at 269 East Grand will include a 4,000 square foot fitness center, which will replace the existing 900 square foot fitness center located within 249 East Grand. DEVELOPMENT AGREEMENT ( "DA ") First Amendment to the DA As part of the 2006 Project approvals, the City and the applicant negotiated a Development Agreement to clarify and obligate several Project features and mitigation measures including transportation impact fees, public improvements in the East of 101 area, public art contribution, and TDM reporting and monitoring requirements while simultaneously vesting the applicant's approvals for 10 years. Included as part of this Planning Application is an amendment to the originally approved Development Agreement. The First Amendment to the Development Agreement ( "Amended DA ") includes the above noted Project modifications, as well as the following substantive amendments: • A requirement for payment of the Public Safety Impact Fee. The Public Safety Impact Fee was adopted by the City Council in December 2012. This impact fee will only apply to the constructi6n of 269 East Grand (Building 2, Phase III) and 279 East Grand (Building 3, Phase IV). • Rails to Trails - The northerly edge of the Project site abuts a former rail corridor that is identified in the General Plan as a future bike path (see attached Fig. 4 -3). The existing Development Agreement required the applicant to improve the approximately 1,000 ft. long segment of this former rail corridor if it became available for public use during the term of the Development Agreement, but until recently the property was privately owned and not available for conversion to public use. HCP now owns this R -O -W, and with approval of Development Agreements for recent HCP projects (328 Roebling and 494 Forbes) the City has the ability to secure a public access easement through this property, allowing the trail improvements to proceed. The amended DA -28- Staff Report Subject: 249 East Grand Avenue Date: June 20, 2013 Page 5 reflects this and Rails -to- Trails Improvements have been accelerated and modified to be consistent with the terms of these other nearby properties that are subject to this requirement; Timing for the Public Art requirement has been changed from December 31, 2014 to June 30, 2014. The proposed Amended DA is attached as Exhibit B to the Resolution. Note that following a recommendation by the Planning Commission, the Amended DA will be considered by the City Council for approval through adoption of an Ordinance. All Planning Commission approvals contemplated by this planning application would be conditioned upon the approval and execution of the Amended DA. GENERAL PLAN CONFORMITY AND ZONING CONSISTENCY The Project is consistent with the guiding and implementing policies in the General Plan as it has been designed to promote campus -style uses, such as biotechnology, high - technology and research and development uses. The site layout and overall architecture would continue to shape the campus character of the East of 101 Area. The Project site is located in the BTP (Business Technology Park) Zone District and is part of the "East of 101" Planning Sub -Area as defined by the City of South San Francisco's General Plan. The proposed Project, as modified, remains consistent with the General Plan land use which designates the property Business and Technology Park. Office/R &D use is specifically identified as an appropriate use under this designation. Additionally, the category provides for a floor area ratio (FAR) of .50, with permissible increases to a maximum FAR of 1.0 based on implementation of a Transportation Demand Management (TDM) program as outlined in the City's TDM Ordinance. The proposed FAR of .79 requires that the applicant prepare, implement and maintain a TDM Plan designed to achieve a 32% shift to alternative modes of travel other than single occupant vehicles. Guiding Policy 3.5 -G -3 also specifically supports the Project — to promote campus -style biotechnology, high - technology, and research and development uses in the East of 101 Area. The Project provides on -site amenities, such as a fitness center and a cafeteria, which are consistent with the General Plan policies for the East of 101 Area. ENVIRONMENTAL REVIEW A Draft Environmental Impact Report (DEIR) was prepared for the Project and was initially circulated from October 7 to November 22, 2005. However, an issue arose with regard to comments provided by Caltrans on the draft EIR which resulted in the need to revise and recirculate the traffic section of the document. The comment period on the partial revision draft EIR ran from March 28 to May 12, 2006. A Final EIR Response to Comments document was prepared and distributed addressing all comments received on both the draft and revised documents. A public hearing was held before the Planning Commission on November 3, 2005 to receive comments from the public on the DEIR. The City Council certified the EIR (State Clearinghouse number 2005- -29- Staff Report Subject: 249 East Grand Avenue Date: June 20, 2013 Page 6 042121) on July 12, 2006. The EIR included a Mitigation Monitoring and Reporting Program along with a Statement of Overriding Consideration. The modifications to the parking during the Project phasing have been analyzed, with a supporting parking utilization study prepared by Fehr & Peers, and have been determined to be minor and temporary with no substantive changes that would result in any additional environmental impacts. Therefore, no further CEQA action is required by the Planning Commission at this time. CONCLUSION The proposed changes included in this Use Permit modification consist of changes to the parking ratio, from the previously approved ratio of 2.83 parking spaces per 1,000 square feet to a reduced ratio of 2.5 parking spaces 1,000 square feet. The modifications also include allowing temporary off -site parking for 592 spaces at 213 East Grand during the construction of Phase IV, 279 East Grand (Building 3) and the parking garage. In addition, the applicant is asking for a revision to the requirement to provide 5,500 square feet of ancillary retail spaces within the Project, given that the Project includes an on -site cafeteria and fitness center for use by employees. The Project continues to comply with the policies and provisions of the General Plan as well as meet or exceed the requirements of the City's Zoning Ordinance. Finally, as discussed above, there are no new or increased environmental impacts that would occur as a result of the proposed Project modifications. Therefore, staff recommends that the Planning Commission conditionally approve the Use Permit modifications to the 249 East Grand Avenue Project, all conditioned upon the approval and execution of the First Amendment to the Development Agreement. Further, staff recommends that the Planning Commission recommend that the City Council adopt an Ordinance to approve the First Amendment to the Development Agreement for the 249 East Grand Avenue Project. : & A ' A441 Barber Catherine Attachments: • Resolution Exhibit A - Conditions of Approval Exhibit B - First Amendment to the Development Agreement • Link to approved FEIR http://weblink.ssf.net/WeblinkS/DocView.aspx?id=51347&dbid=O • Figure 4- 3- General Plan Map of Trails /Bike Paths • Fehr & Peers Parking Study for 249 East Grand Avenue- March 9, 2012 • Revised Plan Set — March 2013, DGA -30- Excerpt Draft Minutes from June 20, 2013 Planning Commission Meeting: ARE - Robert Kain /Owner ARE -SF No. 44, LLC /Applicant 249 East Grand Ave. P05- 0019:UPM13 -0002 & DAA13 -0002 Senior Planner Barber presented a staff report explaining that this was a previously approved project in July 2006 and that 2 of the buildings have been developed 249 East Grand Avenue (2008) and 259 East Grand Avenue (2012) which are both currently occupied by Onyx Pharmaceuticals. The applicant, ARE, is requesting a use permit modification to allow a reduction to their parking ratio originally approved at 2.83 parking spaces per 1000 sf to 2.5 parking spaces per 1000 sf.; modify the building slightly as well as make some temporary adjustments to the phasing for the parking. The parking garage which was originally part of Phase III is being proposed as part of Phase IV. The parking demand at this time is low and the TDM plan is working and they have a reserve of 99 spaces on -site which would bring them to the 2.83 ratio but for now they are at 2.5. Fehr and Peers did a parking study and found that they are at 75 percent occupancy with average peak occupancy at 2.15 spaces per 1000 sf. The phasing for Phase IV is to provide about 592 spaces at 213 East Grand Avenue, west of the subject property and also owned by applicant, ARE. The Zoning Code allows off -site parking with approval of a use permit to permit so long as the requirements are met that the site is within 400 feet of the main entrance of the project site and a parking agreement is recorded at the County Recorder's office The total project meets both requirements as the project has a Development Agreement that addresses these terms and conditions of the off -site parking. The final project will amount to 4 buildings with a parking ratio of 2.5 spaces per 1000 sf, about 1350 spaces. The applicant, ARE, wants to reserve the right to increase the parking ratio to the 2.83 spaces per 1000 sf if there is a demand. Prior to that, the City would require a TDM plan showing that they are meeting their 32 percent alternative mode as well as a 60 -day written notice before the City would allow. The applicant would be able to do this by expanding the parking garage and adding 179 spaces to the 4 -story structure. Some other modifications include relief of a requirement from 2006 for 5500 sf of retail space within the building which currently they have several amenities on site that exceed this Amount with a 9000 sf cafeteria at 259 East Grand and 900 sf fitness center at 249 East Grand which w14 be replaced with a 4000 sf fitness center upon completion of 269 East Grand. The Amendment t® tfie Development Agreement includes these modifications as well as the requirement to pay a public safety impact fee that will apply to the two remaining buildings to be built; rails to trails terms were modified to match the nearby properties and a there was a change to the public art timing. The Commission will recommend these Amendments to Council to be adopted by Ordinance. None of the original entitlements are changed other than the phasing and the parking. Rob Kain ARE, gave a brief presentation announcing that in December 2012 they completed their 5th LEED certified ground -up building in South San Francisco since 2007. This time the building was built to a LEED platinum plus standard. The building (Onyx Pharmaceutical) uses 50 percent less energy than required by Title 24. They are proud of this building and looking forward to next building 269 East Grand for Onyx Phamaceutical. ARE is happy to be continuing their commitment to South San Francisco. -31- Chairperson Ochsenhirt opened the public hearing and there being no speakers closed the public hearing. Commission comments /questions: Commission inquired about the off -site parking at 213 East Grand as to whether they would be using the existing buildings. Senior Planner Barber replied that the existing buildings will be demolished and there is a condition of approval requiring that the applicant come in for permits for the temporary parking site development which will be for approximately 18 months. They will be required to obtain demo, grading and drainage permits. She noted that she provided the Commission with a memo and revised edited Development Agreement. The changes are minor with reference to ownership under three LLCs which are part of ARE and clarification as far as implementation of the terms of the Development Agreement. Commission asked whether there will be landscaping requirements on the temporary off -site parking. Senior Planner Barber stated they would be required to have landscaping as well as meet the parking standards for aisle and parking space widths and crosswalk striping between sites. Commission asked for clarification on the last completed phase 4 -story parking garage whether there will be landscaping on the parking garage B facade. Senior Planner Barber informed the Commission that the landscaping is on the west side of the garage and wraps'around. Niall Malcolmson, Principal, DGA Architects, clarified that the parking being long term at 213 East Grand would not be possible because the trigger to require the parking would be the signing of lease for another building. In regards to Garage B, the only change to this original east wing of the 2006 approved garage is to minimize the garage to the larger rectangular mass and that 3 1/2 -story portion to the east goes away and becomes surface parking. ARE just wanted to retain the possibility should the need arise to go back to the higher parking ratio. Commission directed the question to staff regarding the landscaping. Senior Planner Barber stated staff will pull original plan to verify and work with the applicant regarding the landscaping at the entrance to the garage. Commission asked whether they are using local union workers with prevailing wages. The applicant responded affirmatively. Motion -- Commissioner Sirn/$econd -- Commissioner Zemke to approve POS- 0019:UPM13 -0002 and DAA13 -0002. Approved by unanimous voice vote (6 -0). -32- RESOLUTION NO. 2734-2013 PLANNING COMMISSION, CITY OF SOUTH SAN FRANCISCO STATE OF CALIFORNIA A RESOLUTION MAKING FINDINGS AND CONDITIONALLY APPROVING USE. PERMIT MODIFICATION AND A MODIFICATION OF THE ASSOCIATED DEVELOPMENT AGREEMENT TO ALLOW A PARKING SPACE REDUCTION RESULTING IN A RATIO OF 2.50 PARKING SPACES PER 1,000 SQUARE FEET, MINOR BUILDING ADJUSTMENTS AND TEMPORARY OFF -SITE PARKING AT 213 EAST GRAND AVENUE DURING PHASE IV OF CONSTRUCTION FOR THE PREVIOUSLY ENTITLED 249 EAST GRAND AVENUE OFFICE /R &D PROJECT, AT 249 -289 EAST GRAND AVENUE IN THE BUSINESS TECHNOLOGY PARK (BTP) ZONING DISTRICT; AND RECOMMENDING THAT THE CITY COUNCIL ADOPT AN ORDINANCE APPROVING THE FIRST AMENDMENT TO THE DEVELOPMENT AGREEMENT FOR 249 EAST GRAND AVENUE WHEREAS, Alexandria Real Estate Equities (ARE) ( "Owner" or "Applicant") submitted an application requesting approval of a Use Permit Modification and a Modification of the associated Development Agreement to allow a parking space reduction resulting in a ratio of 2.50 Parking Spaces per 1,000 square feet, minor building adjustments and temporary off -site parking at 213 East Grand Avenue during Phase IV of construction for the previously entitled 249 East Grand Avenue Office/R &D Project, at 249 -289 East Grand Avenue in the Business Technology Park (BTP) Zoning District; and WHEREAS, the City Council certified an Environmental Impact Report (EIR) on July 12, 2006 in accordance with the provision of the California Environmental Quality Act (Public Resources Code, §§ 21000, et seq., "CEQA ") and CEQA Guidelines, which analyzed the potential environmental impacts of the Project; and, NOW, THEREFORE, BE IT RESOLVED that based on the entirety of the record before it, which includes without limitation, the California Environmental Quality Act, Public Resources Code § 21000, et seq. ( "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 Municipal Code; the Project applications; the EIR, including the Draft and Final EIR prepared and certified for 249 East Grand Avenue Project and appendices thereto; all site plans, and all reports, minutes, and public testimony submitted as part of the Planning Commission's duly noticed June 20, 2013 meeting; and any other evidence (within the meaning of Public Resources Code §21080(e) and §21082.2), the Planning Commission of the City of South San Francisco hereby finds as follows: A. General Findings -33- 1. The foregoing recitals are true and correct. 2. The Exhibits attached to this Resolution, including the Conditions of Project Approval Exhibit A , the proposed First Amendment to the Development Agreement Exhibit B are each incorporated by reference as part of this Resolution, as if each were set forth fully herein. 3. 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. B. Use Permit Modifications 1. The proposed Use Permit modifications, including parking space reduction resulting in a ratio of 2.50 Parking Spaces per 1,000 square feet, minor building adjustments and temporary off -site parking at 213 East Grand Avenue, are compatible with the intent and purpose of the BTP zoning district because the Project continues to promote campus -style uses, such as biotechnology, high - technology and research and development uses. With the exception of parking, the proposed Project modifications meet or exceed the minimum standards and requirements of the City's Zoning Ordinance which designates the site BTP, Business Technology Park. 2. The proposed Project, as modified, is consistent with the General Plan and the "East of 101" Planning Sub -Area as defined by the City of South San Francisco's General Plan. The General Plan Land Use Element designates the property Business and Technology Park. Office/R &D use is specifically identified as an appropriate use under this designation. Additionally, the category provides for a floor area ratio (FAR) of .5 0, with permissible increases to a maximum FAR of 1.0 based on implementation of a Transportation Demand Management (TDM) program as outlined in the City's TDM Ordinance. The proposed FAR of .79 requires that the applicant prepare, implement and maintain a TDM Plan designed to achieve a 32% shift to alternative modes of travel other than single occupant vehicles. Guiding Policy 3.5 -G -3 also specifically supports the Project— to promote campus -style biotechnology, high - technology, and research and development uses in the East of 101 Area. The Project provides on -site amenities, such as a fitness center and a cafeteria, which is consistent with the General Plan policies for the East of 101 Area. 3. The proposed Project modifications will not be adverse to the public health, safety, or general welfare of the community, nor detrimental to surrounding properties or improvements. The proposed phasing would continue to provide the required parking necessary for the existing uses on- site. While some of the spaces will be provided off -site, the spaces will be in close proximity to the subject property and pedestrian safety design elements will be installed to protect employees parking off -site at 213 East Grand, and to clearly delineate pedestrian crossings for drivers. 4. The proposed Project modifications comply with the design and development standards applicable to the BTP zone district and the East of 101 Area Plan in that the Project is a campus -style development that provides on -site amenities, such as a fitness center and a cafeteria, -34- which are consistent with the General Plan policies for the East of 101 Area. The overall site design is not being altered with the proposed modifications. 5. The proposed Use Permit modifications and associated Development Agreement modifications will not impact the design, location, size and operation characteristics of the originally approved Project. The Project is a campus -style R &D development that is consistent with the intent of the East of 101 Area Plan and will continue to be compatible with the existing and reasonably foreseeable future land uses in the vicinity. While the proposed phasing and parking plan modifications alter the operational characteristics of the originally approved Project, the off -site parking is in close proximity to the subject Property and will not be disruptive to other land uses in the vicinity. 6. The.. 15.75 acres site is physically suitable for the type and intensity of the R&D land use that currently occupies the site. The General Plan specifically contemplates the proposed type of Project and the suitability of the site for development was analyzed thoroughly in the environmental document prepared for the project. The, proposed Project modifications will have no impact on these features. 7. An Environmental Impact Report was prepared for the Project in accordance with the provisions of CEQA. Mitigation measures have been incorporated into the Project which reduce all but three identified impacts to a less than significant level. The City Council certified the EIR (State Clearinghouse number 2005- 042121) on July 12, 2006. The EIR included a Mitigation Monitoring and Reporting Program along with a Statement of Overriding Consideration. The modifications to the parking during the Project phasing have been analyzed and have been determined to be minor and temporary with no substantive changes that would result in any additional environmental impacts. Therefore, no further CEQA action is required. C. Use Permit — Off -Site Parking 1. The proposed off -site parking during Phase IV will be within 400 feet of the subject property, at 213 East Grand, which is located one property (approximately 300' -350') west of the development property, within easy walking distance, and is also owned by the applicant. Access between the subj ect property and 213 East Grand will be provided along a paved handicap accessible walkway. 2. The First Amendment to the Development Agreement will meet the condition requiring a parking agreement as it covers the terms and provisions related to the proposed off -site parking at 213 East Grand Avenue. It has been approved by the City Attorney and will be recorded in the County Recorder's Office. D. Development Agreement 1. The Owner and City have negotiated a First Amendment to the Development Agreement ( "Development Agreement ") pursuant to Government Code section 65864 etseq. The Development Agreement, attached hereto as Exhibit B, sets for the duration, property, project -35- criteria, and other required information identified in Government Code section 65865.2. Based on the findings in support of the Project, the Planning Commission finds that the Development Agreement, vesting a project for a campus -style development of office and R &D buildings, is consistent with the consistent with the objectives, policies, general land uses and programs specified in the South San Francisco General Plan and any applicable zoning regulations. 2. The Development Agreement is compatible with the uses authorized in, and the regulations prescribed for the land use district in which the real property is located. The subject site is physically suitable for the type and intensity of the land use being proposed. The General Plan specifically contemplates the proposed type of project and the suitability of the site for development was analyzed thoroughly in the environmental document prepared for the Project. 3. The Development Agreement is in conformity with public convenience, general welfare and good land use practice. 4. The Development Agreement will not be detrimental to the health, safety and general welfare. 5. The Development Agreement will not adversely affect the orderly development of property or the preservation of property valued. NOW, THEREFORE, BE IT FURTHER RESOLVED that subject to the Conditions of Approval, attached as Exhibit A to this resolution, the Planning Commission of the City of South San Francisco hereby makes the findings contained in this Resolution, and conditionally approves the Use Permit Modifications (UPM13 -0002) and :Modifications to the associated Development Agreement (DAA13 -0002) for the Project. BE IT FURTHER RESOLVED that the conditional approvals stated herein are conditioned upon the approval and execution of the First Amendment to the Development Agreement for the 249 East Grand Avenue Project. BE IT FURTHER RESOLVED that the Planning Commission of the City of South San Francisco hereby makes the findings contained in this Resolution, and recommends that the City Council adopt an ordinance approving the proposed First Amendment to the Development Agreement for the 249 East Grand Avenue Project, attached as Exhibit B. 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 20th day of June, 2013 by the following vote: -36- AYES: Chairperson Ochsenhirt, Commissioner Giusti Commissioner Khalfin Commissioner Sim, Commissioner Wong and Commissioner Zemke NOES: ABSTENTIONS: ABSENT: Vice Chairperson Martin -37- Attest: /s /Suss Kalkin Susy Kalkin Secretary to the Planning Commission EXHIBIT A PROPOSED CONDITIONS OF APPROVAL 249 East Grand Avenue Project Use Permit Modifications and Modifications to the Associated Development Agreement P05 -0019, UPM13 -0002 & DAA13 -0002 (As recommended by City Staff on June 20, 2013) A. Planning Division requirements shall be as follow: The Project shall be constructed substantially as indicated on the attached 249 East Grand Plans, as prepared by DGA planning, architecture, interiors; the EIR, including the Draft and Final EIR certified for the 249 East Grand Avenue Proj ect and appendices thereto; all site plans, and all reports, minutes, and public testimony submitted as part of the Planning Commission's duly noticed June 20, 2013, meetings; and any other evidence (within the meaning of Public Resources Code §21080(e) and §21082.2), except as otherwise modified by the following conditions: 1. The applicant shall comply with all previous Conditions of Approval included in the July 12, 2006 City Council approval of UP05 -0005, DR05 -0043, SIGNS06 -0008, PM05 -0002, PUD05 -0001 and TDM05 -0001 for the construction of the 249 East Grand Avenue site. 2. The applicant shall comply with all applicable mitigation measures identified in the 249 East Grand Avenue Project EIR and the Mitigation Monitoring and Reporting Program (MMRP). The parking ratio for the 249 East Grand Avenue project shall be 2.5 parking spaces 1,000 square feet. However, if the applicant wishes to increase the required parking ratio up to, but not more than, 2.83 parking spaces per 1,000 square feet the applicant shall provide written notice to the City at least sixty (60) days before the increase in the required parking ratio is to become effective; simultaneously the applicant shall also submit to the City a Transportation Demand Management (TDM) report documenting that the goal of 32% alternative mode usage by employees within the Project has been achieved as of date not more than sixty (60) days prior to the submission of such TDM report to the City. 4. Prior to approval of the first building and/demolition permit for off -site parking at 213 East Grand Avenue, the applicant shall submit plans that detail the parking plan, landscaping, and both vehicular and pedestrian circulation paths for approval by the City Chief Planner. 5. The applicant shall not sell or otherwise transfer their interest in the parcel at 213 East Grand Avenue during the temporary use of the site for required parking for the 249 -289 East Grand Avenue site. -38- 6. Upon completion of Phase IV and the new permanent parking at 249 -289 East Grand Avenue, which includes all four (4) of the approved buildings and the parking garage, the applicant shall abandon the temporary parking use at 213 East Grand Avenue. 7. The applicant shall comply with all standard conditions as outlined in the "Standard Conditions and Limitations for Commercial Industrial, Mixed-Use and Multi - Family Residential Projects ", dated February 2013. Accordingly, minor changes or deviations from the approved plans may be approved by the Chief Planner; significant changes shall require approval of the Planning Commission. 8. All of the above entitlements shall not become effective until after the Ordinance approving the requested modifications to the Development Agreement becomes effective. (Planning Division contact: Catherine Barber (650) 877 -8535) B. Engineering Division requirements shall be as follow: 1. The applicant shall restripe all crosswalks and survey all sidewalks for any tripping hazards from the off -site parking area at 213 East Grand to 249 -289 East Grand. (Engineering Division contact: Sam Bautista, Principal Engineer (650) 829 -6652) -39- Exhibit B First Amendment to the Development Agreement -40- FIRST AMENDMENT TO DEVELOPMENT AGREEMENT 249 East Grand Avenue Office/Research and Development Project This FIRST AMENDMENT TO DEVELOPMENT AGREEMENT FOR 249 EAST GRAND AVENUE OFFICE/RESEARCH AND DEVELOPMENT PROJECT (the "Project ") is dated as of , 2013 ( "First Amendment "), between (i) on the one hand, (A) ARE -SAN FRANCISCO NO. 12, LLC, a Delaware limited liability company ( "ARE -SF 12 "), (B) ARE -SAN FRANCISCO NO. 44, LLC, a Delaware limited liability company ( "ARE -SF 44 "), and (C) ARE -SAN FRANCISCO NO. 46, LLC, a Delaware limited liability company ( "ARE -SF 46 "), and (ii) on the other hand, the CITY OF SOUTH SAN FRANCISCO, a municipal corporation organized and existing under the laws of the State of California (the "Cily"). ARE -SF 12, ARE -SF 44, and ARE -SF 46, on the one hand, and the City, on the other hand, are collectively referred to herein as "Parties ". RECITALS A. WHEREAS, California Government Code Sections 65864 through 65869.5 authorize the City to enter into binding development agreements with persons having legal or equitable interests in real property for the development of such property or on behalf of those persons having same; and, B. WHEREAS, pursuant to California Government Code Section 65865, the City has adopted rules and regulations, embodied in Chapter 19.60 of the South San Francisco Municipal Code, establishing procedures and requirements for adoption and execution of development agreements; and, C. WHEREAS, the City and ARE -SF 12 entered into a certain Development Agreement dated July 26, 2006, for the development of the Project (the "Original Agreement "), as approved and adopted by the City Council through the adoption of Ordinance No. 1372 -2006 (which took effect on August 25, 2006) (a copy such Ordinance, including the Original Agreement, was recorded in the Official Records of San Mateo County, California, on February 5, 2007, as Instrument No. 2007 - 018093); and, D. WHEREAS, in conjunction with the Original Agreement, ARE -SF 12 submitted a development proposal to the City, as depicted on the "249 East Grand Plan Set ", dated July 12, 2006, prepared by Dowler -Gruman Architects (the "Architect ") and attached to the Original Agreement as Exhibit B (the "Original Plan Set "); and, E. WHEREAS, at the time the Original Agreement was approved and adopted, the legal description of the real property subject to the Original Agreement (the "Prop ") was as set forth in Exhibit A attached hereto and incorporated herein by reference; and, 249 E. Grand Ave: 1st Amend. To Dev. Agt. -41- , 2013 F. WHEREAS, after the Original Agreement was approved and adopted, ARE -SF 12 re- subdivided the Property by filing a new parcel map, which parcel map resulted in the legal description of the Property being as set forth in Exhibit B attached hereto and incorporated herein by reference; and, G. WHEREAS, on June 22, 2012, ARE -SF 12 transferred to ARE -SF 44 all of ARE -SF 12's right, title, and interest in that certain portion of the Property particularly described in Exhibit C attached hereto and incorporated herein by reference (the "First Transferred Parcel "), and, in conjunction with such transfer, (i) ARE -SF 12 assigned to ARE -SF 44 all of ARE -SF 12's rights, interests, and obligations under the Original Agreement with respect to the First Transferred Parcel, and (ii) ARE -SF 44 assumed all of ARE -SF 12's obligations under the Original Agreement with respect to the First Transferred Parcel (provided, however, that this assignment and assumption of the rights, interests, and obligations under the Original Agreement was on a non - exclusive basis, so that ARE -SF 44 has the rights, interests, and obligations under the Original Agreement to the extent required to facilitate the development of the First Transferred Parcel, and ARE -SF 12 has the rights, interests, and obligations under the Original Agreement to the extent required to facilitate the development of the remainder of the Property); and, H. WHEREAS, on May 16, 2013, ARE -SF 12 transferred to ARE -SF 46 all of ARE -SF 12's right, title, and interest in that certain portion of the Property particularly described in Exhibit D attached hereto and incorporated herein by reference (the "Second Transferred Parcel "), and, in conjunction with such transfer, (i) ARE -SF 12 assigned to ARE -SF 46 all of ARE -SF 12's rights, interests, and obligations under the Original Agreement with respect to the Second Transferred Parcel, and (ii) ARE -SF 46 assumed all of ARE -SF 12's obligations under the Original Agreement with respect to the Second Transferred Parcel rovided, however, that this assignment and assumption of the rights, interests, and obligations under the Original Agreement was on a non - exclusive basis, so that ARE -SF 46 has the rights, interests, and obligations under the Original Agreement to the extent required to facilitate the development of the Second Transferred Parcel, ARE -SF 44 has the rights, interests, and obligations under the Original Agreement to the extent required to facilitate the development of the First Transferred Parcel, and ARE -SF 12 has the rights, interests, and obligations under the Original Agreement to the extent required to facilitate the development of the remainder of the Property); and, I. WHEREAS, (i) ARE -SF 12 has completed construction of a 4 -story office /research and development building totaling approximately 136,191 square feet on the portion of the Property commonly known as 249 East Grand Avenue (the "Phase 1 Building "), and (ii) ARE -SF 44 has completed construction of a 5 -story office/research and development building totaling approximately 163,257 square feet on the portion of the Property commonly known as 259 East Grand Avenue (and referred to in this First Amendment as the First Transferred Parcel) (the "Phase 2 Building "); and, WHEREAS, (i) ARE -SF 46 also intends to construct a 3 -story office /research and development building totaling approximately 102,616 square feet on the portion of the 249 E. Grand Ave: 1st Amend. To Dev. Agt. 42______,2013 Property to be commonly known as 269 East Grand Avenue (and referred to in this First Amendment as the Second Transferred Parcel) (the "Phase 3 Building "), and (ii) ARE -SF 12 also intends to construct (A) a 4 -story office /research and development building totaling approximately 137,936 square feet on the portion of the Property to be commonly known as 279 East Grand Avenue (the "Phase 4 Building "), and (B) a 4 -level above - ground parking garage on the northern -most parcel of the Property (the "Garage "); and, K. WHEREAS, ARE -SF 12, ARE -SF 44, and ARE -SF 46, as "owners" of the Property, have a legal interest in the real property subject to the Original Agreement; and, L. WHEREAS, ARE -SF 12, ARE -SF 44, and ARE -SF 46 have filed an application for a modification (the "Use Permit Modification ") of the Conditional Use Permit (UP05 -0005) that underlies the Original Agreement (the "Original Use Permit "), and, in conjunction with such Use Permit Modification, have submitted to the City a supplemental Plan Set, dated , 2013, prepared by the Architect (the "Supplemental Plan Set ") (the Use Permit Modification, Supplemental Plan Set, and Conditions ofApproval are attached hereto as Exhibit F and incorporated herein by reference); and, M. WHEREAS, ARE -SF 12, ARE -SF 44, and ARE -SF 46 have requested the City to enter into this First Amendment to modify the rights and obligations of the Parties relating to the development of the Project; and, N. WHEREAS, all proceedings necessary for the valid adoption and execution of this First Amendment have taken place in accordance with Government Code Sections 65864 through 65869.5, the California Environmental Quality Act, and Chapter 19.60 of the South San Francisco Municipal Code; and, O. WHEREAS, the City Council and the Planning Commission have found that this First Amendment and the Use Permit Modification are consistent with the objectives, policies, general land uses, and programs specified in the South San Francisco General Plan as adopted on October 13, 1999, and as amended from time to time; and, P. WHEREAS, on , 2013, the City Council adopted Ordinance No. , approving and adopting this First Amendment, and the Ordinance thereafter took effect on .2013. AGREEMENT NOW, THEREFORE, the Parties, pursuant to the authority contained in Government Code Sections 65864 through 65869.5 and Chapter 19.60 of the South San Francisco Municipal Code, and in consideration of the mutual covenants and agreements contained herein, agree as follows: 1. Effective Date Pursuant to Section 19.60.140 of the South San Francisco Municipal Code, notwithstanding the fact that the City Council adopts an ordinance approving this First Amendment, this First 249 E. Grand Ave. -1st Amend. To Dev. Agt. -43 -, 2013 Amendment shall be effective and shall only create obligations for the Parties from and after the date that the ordinance approving this Agreement takes effect ( "Effective Date "). 2. Defined Terms As of the Effective Date, (i) the term "Agreement ", as used in the Original Agreement and/or this First Amendment, shall mean the Original Agreement, as amended by this First Amendment, (ii) the term "Use Permit ", as used in the Original Agreement and/or this First Amendment, shall mean the Original Use Permit, as amended by the Use Permit Modification, (iii) the term "Plan Set ", as used in the Original Agreement and/or this First Amendment, shall mean the Original Plan Set, as amended by the Supplemental Plan Set, and (iv) the term "Owner ", as used in the Original Agreement and /or this First Amendment, shall mean ARE -SF 44 and its successors and assigns, as to the First Transferred Parcel, ARE -SF 46 and its successors and assigns, as to the Second Transferred Parcel, and ARE -SF 12 and its successors and assigns, as to the remainder of the Property and as to any rights and/or obligations that pertain to the Project as a whole rather than to individual portions of the Property (whether such portions have been transferred to another person or entity or retained by ARE -SF 12) (e.g_, the rights and obligations set forth in Sections 3(b) and 3fel below and the rights and obligations regarding the Rails To Trails improvements set forth in Section 12(b) of the Original Agreement, as amended by Section 6 below). Any initially- capitalized term used in this First Amendment without being expressly defined when first used shall have the meaning given to such term in the Original Agreement. 3. Modification of Project Description and Selected Standards For Project In accordance with the Use Permit Modification and the Supplemental Plan Set: (a) The first paragraph of Section 3 of the Original Agreement shall be amended so that the Project shall consist of four (4) 3- to 5 -story office /research and development buildings totaling approximately 540,000 square feet, a 4 -level above - ground parking garage, and related improvements, as provided in the Original Plan Set, as amended by the Supplemental Plan Set, both as approved by the City Council. (b) The required parking ratio for all uses in the Project shall be 2.50 parking spaces per 1,000 square feet; provided, however, that Owner may elect, in its sole discretion, to increase the required parking ratio up to, but not more than, 2.83 parking spaces per 1,000 square feet (i) by giving the City written notice of such election at least sixty (60) days before the increase in the required parking ratio is to become effective, and (ii) by simultaneously submitting to the City a Transportation Demand Management (TDM) report documenting that the goal of 32% alternative mode usage by employees within the Project has been achieved as of date not more than sixty (60) days prior to the submission of such TDM report to the City. The TDM report will be prepared by an independent consultant, retained by the City with the approval of Owner (which approval shall not be unreasonably withheld or delayed) and paid for by Owner, which consultant will work in concert with Owner's TDM coordinator. 249 E. Grand Ave: 1st Amend. To Dev. Agt. 44______,2013 The TDM report will include supporting statistics and analysis to establish attainment of the goal, including, but not limited to, a determination of historical employee commute methods, which information shall be obtained by a survey of all employees working in all previously constructed buildings on the Property (with all non- responses being counted as a drive alone trip). (c) During construction of the Phase 3 Building, the Phase 4 Building, the Garage, and the remainder of the Project, interim parking shall be provided as follows: 1. Existing temporary surface parking on the Property will be removed to construct the Phase 3 Building. New surface parking (some permanent, some temporary) will be constructed on the eastern portion of the Property to replace the temporary surface parking that will be removed to construct this building. The new surface parking will be completed before the temporary surface parking is- removed, in order to maintain the required parking (based on a parking ratio of 2.50 parking spaces per 1,000 square feet) for the previously constructed Phase 1 Building and Phase 2 Building. 2. After completion of the Phase 3 Building, existing temporary surface parking on the Property will be removed to construct the Phase 4 Building and the Garage. The temporary surface parking to be removed for these buildings will create a deficit of 517 parking spaces (based on a parking ratio of 2.50 parking spaces per 1,000 square feet) for the previously constructed Phase 1 Building, Phase 2 Building, and Phase 3 Building. Owner will provide temporary surface parking to cover such deficit by causing new temporary surface parking to be constructed on the nearby site commonly known as 213 East Grand Avenue (which is owned by ARE -San Francisco No. 21, L.P., a California limited partnership, and ARE -San Francisco No. 42, LLC, a Delaware limited liability company, affiliates of Owner) ( "Off -Site Parking Parcel "). The new surface parking will be completed before the temporary surface parking is removed, in order to maintain the required parking (based on a parking ratio of 2.50 parking spaces per 1,000 square feet) for the previously constructed Phase 1 Building, Phase 2 Building, and Phase 3 Building. Any agreement(s) necessary to construct the new temporary surface parking on the Off -Site Parking Parcel shall be Owner's sole responsibility. City staff review of applications for permits or other certificates or approvals necessary to construct the new temporary surface parking on the Off -Site Parking Parcel shall be limited as provided in Section 4 of the Original Agreement. 3. All interim parking shall be in the locations depicted on the Supplemental Plan Set or in such other locations as may be reasonably approved by the City. 249 E. Grand Ave: 1st Amend. To Dev. Agt. _45 2013 4. Vesting of Approvals Upon the City's approval of the Use Permit Modification, the Supplemental Plan Set, and this First Amendment, such approvals shall vest in Owner and its successors and assigns as provided in Section 5 of the Original Agreement. 5. Public Safety pact Fees Owner hereby agrees that the Public Safety Impact Fee, as approved and adopted by the City Council through the adoption of Ordinance No. 97 -2012 (which took effect on February 8, 2013), shall apply to the Phase 3 Building and the Phase 4 Building, but shall not apply to the Phase 1 Building, the Phase 2 Building, or the Garage. Public Safety Impact Fees for the Phase 3 Building and the Phase 4 Building shall be determined based on the application of the formula in effect as of the time such Public Safety Impact Fees become due and payable. Section 9 of the Original Agreement shall not be amended except to the extent necessary to give effect to this Section. 6. Rails To Trails Improvements Section 12(b) of the Original Agreement shall be deleted in its entirety and replaced with the following: "(b) Rails To Trails Improvements or Payment. The rail corridor abutting the northerly boundary of the Property, consisting of a narrow strip of land extending from Forbes Boulevard at its westerly end to Allerton Avenue at its easterly end and more particularly described in Exhibit E attached hereto and incorporated herein by reference (the "Trail Corridor "): (i) is identified in the City's General Plan as a future bike path, and (ii) is currently owned in fee by HCP Forbes, LLC ( "HCP "). The City is considering whether and how to implement a "rails to trails" program that would cause the Trail Corridor and other similarly situated paths and corridors in the City to be improved and made available for public use. As part of that process, (x) the City and HCP have included certain provisions concerning the Trail Corridor in the Development Agreement (the "HCP Agreement ") for the property commonly known as 494 Forbes Boulevard, and (y) the City and Bayside Area Development, LLC ( "Bayside "), have included certain provisions concerning the Trail Corridor in the Development Agreement (the "Bayside Agreement ") for the properties commonly known as 328 Roebling Road, 340 Roebling Road, and 233 East Grand Avenue (the "Bayside Property "). For purposes of this Agreement, the term "Adjacent Trail Corridor" shall mean the portion of the Trail Corridor that abuts the northerly boundary of the Property and is bounded on the westerly end of such portion by Forbes Boulevard and is bounded on the easterly end of such portion by an extension of the eastern most boundary line of the Property that intersects and is roughly perpendicular to the southerly boundary of the Trail Corridor, excepting the portion of the Trail Corridor that abuts the northerly boundary of the Property and is bounded on the westerly end of such excepted portion by an extension of the westerly 249 E. Grand Ave: 1st Amend. To Dev. Agt. 46 , 2013 boundary line of the Bayside Property and is bounded on the easterly end of such excepted portion by an extension of the easterly boundary line of the Bayside Property. The City hereby acknowledges and agrees that the timing for improving the Trail Corridor and for making the Trail Corridor available for public use (either through a dedication of the Trail Corridor for public use or through a conveyance to the City or its designee of fee title to the Trail Corridor) will be governed by the terms and conditions of the HCP Agreement and the Bayside Agreement. Accordingly, Owner and the City will reasonably cooperate and coordinate with HCP and Bayside with respect to any obligations Owner may have concerning the Adjacent Trail Corridor. Further, by written notice to Owner, the City, in its reasonable discretion, may elect to require Owner to implement either the provisions of subsection 12(b)1. below ( "Option A ") or the provisions of subsection 12(2)2. below ("Qpfjon B "); provided, however, the City cannot elect to implement Option A unless and until the City elects to implement similar options in the HCP Agreement and the Bayside Agreement. If the City fails to notify Owner of its election before December 31, 2014, then the City shall be deemed to have elected Option B. 1. Option A. If the City elects to implement Option A, then Owner shall do the following at Owner's sole cost and expense: (A) Owner, in consultation with the City, shall design improvements to the Adjacent Trail Corridor (the "Adjacent Trail Corridor Primary Improvements "). Except as otherwise mutually agreed by Owner and the City, said Adjacent Trail Corridor Primary Improvements shall consist of paving, lighting, and landscaping of a design and scope consistent with standard portions of the City's then existing Rails to Trails corridor of the Bay Trail. In addition, Owner, in consultation with the City, shall design a stairway and wheelchair lift from the Property to the Adjacent Trail Corridor Primary Improvements, in the location depicted on the Supplemental Plan Set or in such other location as may be reasonably approved by the City, and a bicycle access path across the Property from Roebling Road to the Adjacent Trail Corridor Primary Improvements, in such location as may be reasonably approved by the City (collectively, the "Adjacent Trail Corridor Access Improvements "). The Adjacent Trail Corridor Primary Improvements and the Adjacent Trail Corridor Access Improvements are referred to collectively in this Agreement as the "Adjacent Trail Corridor Improvements ". The City hereby acknowledges and agrees that any agreement(s) (other than the HCP Agreement and the Bayside Agreement) that may be necessary to allow Owner to enter the Trail Corridor to install the Adjacent Trail Corridor Primary Improvements shall be the City's sole responsibility. Owner shall submit to the City plans and a cost estimate for the Adjacent Trail Corridor Improvements, for review and approval by 249 E. Grand Ave: 1st Amend. To Dev. Agt. -47- , 2013 the City, within six (6) months after receiving notice that the City has elected to implement Option A. (B) Upon approval of such plans and cost estimate by the City, Owner shall construct the Adjacent Trail Corridor Improvements in accordance with the approved plans in all material respects. Owner shall complete construction of said Adjacent Trail Corridor Improvements by the later of (i) the date that is twelve (12) months after the City's approval of the plans and cost estimate for such improvements, and (ii) August 25, 2016 (subject, however, to (x) delays in obtaining any agreement(s) necessary to allow Owner to enter the Trail Corridor to install the Adjacent Trail Corridor Primary Improvements, (y) atypical delays in obtaining the City's approval of the plans for the Adjacent Trail Corridor Improvements, and/or (z) atypical delays in obtaining any permits or other certificates or approvals necessary to install the Adjacent Trail Corridor Improvements). (C) Once installed, Owner shall have no responsibility for the maintenance, repair, or replacement of any of the Adjacent Trail Corridor Primary Improvements, except to the extent any such maintenance, repair, or replacement is necessary because of damage caused by Owner. Once installed, Owner, at Owner's sole cost and expense, shall be responsible for the maintenance, repair, or replacement of all of the Adjacent Trail Corridor Access Improvements. 2. Option B. If the City elects (or is deemed to have elected) to implement Option B, then Owner shall do the following at Owner's sole cost and expense: (A) Owner, within six (6) months after receiving written notice that the City has elected (or is deemed to have elected) to implement Option B, shall provide the City with a written cost estimate, subject to the City's review and approval, of the costs that would be required for construction of the Adjacent Trail Corridor Improvements of a nature and scope comparable to those described in subsection 12(b)1.(A) above. (B) Upon approval of such cost estimate by the City, Owner, at or before the earlier of (i) issuance of a Certificate of Occupancy for the final building constructed as part of the Project (other than the Garage), and (ii) August 25, 2016, shall provide to the City funds in an amount equal to the aggregate cost set forth in such approved cost estimate, which funds shall then be used by the City solely to upgrade 249 E. Grand Ave: 1st Amend. To Dev. Agt. -48_, 2013 substandard portions of the City's then existing Bay Trail or to install new park or trail improvements within the East of 101 Planning Area. C) Upon written request by Owner, the City sha11 provide Owner with a description, in reasonable detail, of the sources and applications of funds provided by Owner and by other similarly situated property owners for the Bay Trail upgrades or other new park or trail improvements (as applicable) contemplated in subsection 12(b)2.(B). 3. Assessment District. If at any time the City decides to form an. assessment district with the objective of acquiring and completing a rails to trails conversion for the rail corridor that includes the Trail Corridor, Owner agrees not to oppose the formation of such a district, provided that such assessment district includes substantially all other similarly situated properties benefited by the proposed conversion and that the provisions governing such assessment district include reimbursement or credit to Owner for (A) any amounts already expended by Owner for design and construction of Adjacent Trail Corridor Improvements pursuant to Option A above, and/or (B) any amounts paid by Owner to the City pursuant to Option B above." 7. Public Art Contribution Each reference to "December 31, 2014" contained in Section 12(c) of the Original Agreement shall be deleted and replaced with "June 30,2014". 8. Miscellaneous (a) Except to the extent amended and/or modified by this First Amendment, the Original Agreement is hereby ratified and confirmed and all other provisions of the Original Agreement shall remain in full force and effect, unaltered and unchanged by this First Amendment. If any provision of this First Amendment conflicts with and cannot be reconciled with any provision of the Original Agreement, the provision of this First Amendment shall control. All of the provisions of the Original Agreement (applying the defined terms set forth in clauses (i), (ii), (iii), and (iv) of Section 2 above) are made a part of, and are incorporated into, this First Amendment as if set forth in full in this First Amendment (including, but not limited to, the provisions set forth in Sections 17.22 26, 27, 28, 29, 34 a , 34 34(c)• 34fd), and 3) of the Original Agreement). (b) This First Amendment may be executed in any number of counterparts, each of which shall be deemed an original and all ofwhich, taken together, shall constitute a single agreement with the same effect as if all Parties had signed the same signature page. Any signature page from any counterpart of this First Amendment, signed only by one Party, may be detached from such counterpart without impairing the legal effect of the signature(s) thereon, provided that such signature page is re- attached to 249 E. Grand Ave: 1st Amend. To Dev. Agt. -49- , 2013 another counterpart of this First Amendment that has a signature page signed by another Party. 9. Exhibits Exhibit A — Original Legal Description of Property Exhibit B — Current Legal Description of Property Exhibit C — Legal Description of First Transferred Parcel Exhibit D — Legal Description of Second Transferred Parcel Exhibit E — Legal Description of Trail Corridor Exhibit F — Use Permit Modification / Supplemental Plan Set / Conditions of Approval 249 E. Grand Ave.-1st Amend. To Dev. Agt. _50_ , 2013 IN WITNESS WHEREOF, the City has executed this First Amendment on the day and year first above written. CITY OF SOUTH SAN FRANCISCO City Manager ATTEST: City Clerk APPROVED AS TO FORM City Attorney 249 E. Grand Ave: 1st Amend. To Dev. Agt. -51- '2013 IN WITNESS WHEREOF, ARE -SF 12, ARE -SF 44, and ARE -SF 46 have executed this First Amendment on the day and year first above written. ARE -SAN FRANCISCO NO. 12, LLC, a Delaware limited liability company By: Alexandria Real Estate Equities, L.P., a Delaware limited partnership, Managing Member By: ARE -QRS CORP., a Maryland corporation, General Partner By: _ Name: Title: ARE -SAN FRANCISCO NO. 44, LLC, a Delaware limited liability company By: Alexandria Real Estate Equities, L.P., a Delaware limited partnership, Managing Member By: ARE -QRS CORP., a Maryland corporation, General Partner By: _ Name: Title: ARE -SAN FRANCISCO NO. 46, LLC, a Delaware limited liability company By: Alexandria Real Estate Equities, L.P., a Delaware limited partnership, Managing Member By: ARE -QRS CORP., a Maryland corporation, General Partner By: _ Name: Title: 249 E. Grand Ave: 1st Amend. To Dev. Agt. _52_ , 2013 STATE OF CALIFORNIA ) COUNTY OF On , 2013, before me, , a Notary Public in and for said State, personally appeared , who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument, the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. My commission expires: My commission number is: SIGNATURE OF NOTARY [AFFIX SEAL] 249 E. Grand Ave. -1st Amend. To Dev. Agt. -53- , 2013 STATE OF CALIFORNIA COUNTY OF On , 2013, before me, , a Notary Public in and for said State, personally appeared , who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument, the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. My commission expires: My commission number is: SIGNATURE OF NOTARY [AFFIX SEAL] 249 E. Grand Ave. -1st Amend. To Dev. Agt. _g4_ , 2013 EXHIBIT A ORIGINAL LEGAL DESCRIPTION OF PROPERTY All that certain real property in the City of South San Francisco, County of San Mateo, State of California, more particularly described as follows: LOT 27, BLOCK 2, AS SHOWN ON THE MAP OF "CABOT CABOT AND FORBES INDUSTRIAL PARK UNIT NO. 1 -B ", FILED MAY 25, 1966, IN BOOK 64. OF MAPS, PAGES 49 -51, SAN MATEO COUNTY RECORDS. [The foregoing legal description does not include any exceptions orreservations or any easements or other rights that may be appurtenant to such real property] ASSESSOR'S PARCEL NOS. 015- 050 -440, 015- 050 -450 249 E: Grand Ave: 1st Amend. To Dev. Agt. -55- , 2013 EXHIBIT B CURRENT LEGAL DESCRIPTION OF PROPERTY All that certain real property in the City of South San Francisco, County of San Mateo, State of California, more particularly described as follows: PARCELS 1, 2, 3, 4, AND 5, AS SHOWN TON PARCEL MAP 05 -0002, FILED MAY 15, 2008, IN BOOK 78 OF PARCEL MAPS, AT PAGES 48 TO 53, SAN MATEO COUNTY RECORDS. [The foregoing legal description does not include any exceptions or reservations or any easements or other rights that may be appurtenant to such real property] ASSESSOR'S PARCEL NOS. 015- 050 -780, 015- 050 -790, 015- 050 -800, 015- 050 -810, 015 -050- 820, 015- 050 -830, 015- 050 -840 249 E. Grand Ave: 1st Amend. To Dev. Agt. -56_ , 2013 EXHIBIT C LEGAL DESCRIPTION OF FIRST TRANSFERRED PARCEL All that certain real property in the City of South San Francisco, County of San Mateo, State of California, more particularly described as follows: PARCEL 4, AS SHOWN ON PARCEL MAP 05 -0002, FILED MAY 15, 2008, IN BOOK 78 OF PARCEL MAPS, AT PAGES 48 TO 53, SAN MATEO COUNTY RECORDS. [The foregoing legal description does not include any exceptions or reservations or any easements or other rights that may be appurtenant to such real property] ASSESSOR'S PARCEL NO. 0 15-050-820 249 E. Grand Ave. -1st Amend. To Dev. Agt. -57- , 2013 EXHIBIT D LEGAL DESCRIPTION OF SECOND TRANSFERRED PARCEL All that certain real property in the City of South San Francisco, County of San Mateo, State of California, more particularly described as follows: PARCEL 2, AS SHOWN ON PARCEL MAP 05 -0002, FILED MAY 15, 2008, IN BOOK 78 OF PARCEL MAPS, AT PAGES 48 TO 53, SAN MATEO COUNTY RECORDS. [The foregoing legal description does not include any exceptions or reservations or any easements or other rights that may be appurtenant to such real property] ASSESSOR'S PARCEL NO. 015- 050 -800 249 E. Grand Ave: 1st Amend. To Dev. Agt. _58_ , 2013 EXHIBIT E LEGAL DESCRIPTION OF TRAIL CORRIDOR All that certain real property in the City of South San Francisco, County of San Mateo, State of California, more particularly described as follows: LOT 7 IN BLOCK 2 OF CABOT, CABOT & FORBES INDUSTRIAL PARK UNIT NO. 1, AS SHOWN ON MAP FILED FEBRUARY 26, 1965, IN BOOK 61, PAGES 45 THROUGH 49 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. [The foregoing legal description does not include any exceptions or reservations or any easements or other rights that may be appurtenant to such real property] 249 E. Grand Ave: 1st Amend. To Dev. Agt. -59- , 2013 EXHIBIT F USE PERMIT MODIFICATION / SUPPLEMENTAL PLAN SET / CONDITIONS OF APPROVAL [ See Following Pages ] -60- F �T�"R��ERS MEMORANDUM Date: March 9, 2012 To: Niall Malcomson, DGA From: Tien -Tien Chan and Jane Bierstedt, Fehr & Peers Subject: Parking Study for 249 East Grand Avenue SF12 -0609 Fehr & Peers conducted a parking study for the laboratory and office site located at 249 East Grand Avenue in South San Francisco, California. The site has one existing 4 -story, 136,000 - square -foot building on the 686,223- square -foot site. The existing building is occupied by Onyx Pharmaceuticals. Three more buildings are planned for the site, of which the second is under construction. These four buildings will have a combined total area of 540,000 square feet and an approved parking ratio of 2.83 spaces per 1,000 square feet (ksf) based on their Use Permit. The actual parking demand is lower. The project sponsor is requesting that the Use Permit be amended to provide parking for the future buildings at a lower rate to more closely reflect the actual demand. The City of South San Francisco planning staff stated that the Use Permit (and Development Agreement) could be amended to reduce the parking supply ratio from 2.83 to 2.50 parking spaces per ksf if such a reduction is supported by a parking study. The parking study included conducting surveys to measure the existing peak parking demand for the existing building on the site and developing a corresponding parking supply rate. The results are presented in this memorandum report. DATA COLLECTION Fehr & Peers conducted a daytime site visit to observe general parking conditions and to conduct a parking inventory survey. (See Figure 1 for the survey area.) The parking inventory survey was conducted to identify total parking supply including Americans with Disabilities Act (ADA) accessible, visitor, and carpool-designated spaces. There are a total of 388 parking spaces; 86% of the parking spaces are unrestricted, 10% are carpool, 2% are for visitors, and 2% are ADA accessible. The number of spaces by type is presented in Table 1. Parking utilization surveys (also known as occupancy surveys) were also conducted by counting the occupied parking spaces every hour from 10AM to 3PM on Wednesday, February 15th and Thursday, February 16 . The hourly parking demands by space type for the two surveys days are presented in Table 1. The hourly demands averaged over the two -day survey period are also presented. The peak hour parking demand generally occurred between 2PM and 313M. On February 15'", 292 spaces (or 75 %) were occupied during the peak hour. The two -day average peak hourly demand is 279 parking spaces (72% were occupied). 332 Pine Street, 41^ Floor, San Francisco, CA 94104 (415) 348 -0300 Fax (415) 773 -1790 www.fehrandpeers.com -61- 'A c �R PARKING . LOCATION M '� flfl RA" �-•: � mac.. " 4 r i It • 1 p s _ Not to Scale FEHRt PEERS -62- SF7 2iS�J� ;'�li_�;i`.cu��:�nu_F =,kir; Stud�;�'a•�i:'_a 10*, PROJECT LOCATION FIGURE 1 Niall Malcomson March 9, 2012 Page 3 of 5 e -63- TABLE 1: PARKING SUPPLY AND OCCUPANCY [parking Unrestricted' Carpool Visitor Handicap Total Supply 335 (86 %) 39 (10 %) 6(2%) 8(2%) 388 Wednesday, 2/15, Parking Occupancy 10:00 AM 232 31 6 1 270 11:00 AM 234 31 6 1 272 12:00 PM 223 30 6 2 261 1:OO13M 235 33 6 1 275 2:OOPM 250 34 6 2 292 3:OOPM 228 32 5 2 267 Peak -Hour Parking Occupancy (%) 75% 87% 100% 25% 75% Thursday, 2/16, Parking Occupancy 10:00 AM 235 25 6 0 266 11:00 AM 241 26 6 1 274 12:00 PM 223 24 2 1 250 1:OOPM 230 29 5 2 266 2:OOPM 227 31 5 2 265 3:OOPM 223 26 4 2 255 Peak -Hour Parking Occupancy (%) 72% 67% 100% 13% 71% Average Parking Occupancy 10:00 AM 234 28 6 1 268 11:00 AM 238 29 6 1 273 12:00 PM 223 27 4 2 256 1:OOPM 233 31 6 2 271 2:OO13M 239 33 6 2 279 3:OOPM 226 29 5 2 261 Peak -Hour Parking Occupancy ( %) 71 % o 85 /0 100% 0 25 /0 0 72 /o 1. Buses were observed in the parking lot which each took up four parking spaces. The counts included each bus as four occupied unrestricted spaces. Fehr & Peers, 2012. -63- Niall Malcomson March 9, 2012 Page 4 of 5 PARKING DEMAND EVALUATION Ft& *AE�s Based on the parking supply and occupancy data collected, as well as the gross and occupied area of the study building provided by DGA, Fehr & Peers calculated the peak parking demand rate of occupied parking spaces per 1,000 square feet of building area. The existing building is 136 ksf and is 100% occupied. The average peak parking demand rate is 2.05 spaces per ksf with a peak parking demand rate of 2.15 spaces per ksf. See Table 2 for detailed calculations. TABLE 2: PARKING DEMAND CALCULATIONS Wednesday, 2/15 Thursday, 2116 Average Time Parking Demand Parking Demand 1 ksf Parking Demand Parking Demand / ksf Parking Demand Parking Demand / ksf 10:00 AM 270 1.99 266 1.96 268 1.97 11:00 AM 272 2.00 274 2.01 273 2.01 12:00 PM 261 1.92 250 1.84 256 1.88 1:OOPM 275 2.02 266 1.96 270 1.99 2:OOPM 292 2.15 265 1.95 279 2.05 3:OOPM 267 1.96 255 1.88 1 261 1.92 Peak Hour 292 2.15 274 2.01 279 1 2.05 Fehr &Peers, 2012. PARKING SUPPLY RATE The peak parking demand rate of 2.15 parking spaces per ksf is converted to a recommended parking supply rate of 2.37 / ksf. The parking supply rate is slightly higher than the parking demand. The parking supply should be about 5 to 10 percent higher than the peak parking demand so that vehicles do not need to circulate throughout the entire lot to find the last available spaces. See Table 3 for further detail. TABLE 3: PARKING SUPPLY RATE Rate per KSF Peak Parking Demand 2.15 Parking Supply Rate Range (5 to 10% increase) 2.26-2.37 Recommended Parking Supply Rate 2.37 Fehr & Peers, 2012. -64- Niall Malcomson March 9, 2012 Page 5 of 5 CONCLUSIONS Or I The recommended parking supply rate based on the parking surveys is 2.37 spaces per ksf. Therefore a parking supply reduction from 2.83 spaces per ksf to 2.50 spaces per ksf can be supported. -65- - w J 4kt r � w � t ■ s � pop -. i4w Iw . W � R VLy • 7 • AOP Ilk.y ~ v 4 + a ® i J J lk p • AlIR 9 a , mop loop, i1 M ` a■i� mAo R A Y • • - - �' Is + �II M I IMP Ll M r r - - u I 14 imp i R4 4!n- 114 woo love 10 ML J AW t+ I .M y y 9 Y _ ! ov Ott ..�. _ - �" AERIAL VIEW FROM WEST T x A L E X AN D R I A CONTENTS CONTENTS PHASE II - COMPLETE (CURRENT) PHASE 111a - INTERIM PARKING PHASE III - COMPLETE PHASE PHASE IVa - I - NTERIM PARKING z v PARKING PHASE IVb - ENLARGED INTERIM PARKING PHASE IV - COMPLETE RAILS TO TRAILS - OVERALL PLAN ARE L ARE L EED EFFORTS IN SOUTH SF EED CERTIFICATIONS IN SOUTH S,F tai t� a T! r •-�'.� j .% tai � ��'` — � --- . - ''k ,..._•__ 149 t -' _--� �-:- •- a- z �� sate ' r P� PRn.IPrT 11IrINITY MAP M � O N - I ; 00 01 02 03 04 05 06 07 08 . 09 10 DGA planning I architecture I interiors r� u kh, f , • 4y t4 t -k5 4t t {� r 0 20 40 $D 80 +, t ° t r r� .,�" il- 44 lk t i t,4 4* t '•T4 t4 x�t 4 4 r J. _ • ,� • l 1 4 y i � ' ' 4 4 t ■�5 4�5 J J !]NKrTjja S US h ty t r 4 o r -1- 7 rr 1 — r— — - 7— T —r —r-1 k � x 4 � � I I I I I I I I I I I I 4 Q tt x5 t x t,J I I I I I I I I I I I I I ° { - -- ° - -� ° -- - - -1 °YAN HG FE- HC XILDING PARIKKG-',S�—ANCES --- 9 LAND- F f� .8 PARKING RATi { IN. I L - -- - - -J L — — — - - -1 -- -- I -- - -- I I -- - - -� -- —J L. -- - - -7 XISTI 4-ST AST N D c� , % \ y by ♦ IN. IN, } : h,° N., by N. 1 ,✓ � ! ' 'h \ '+,, N � h . ' � ',,ham ,, IN 4 : � h h� - G x 4 Ip 0 r 4/ a - \/ I 1 by \ N. /N, IN, IN. + ° \ y ..... .. . . . . . .... . . . . . . .... . h v r y r x r r O 0 '4y . 1 BUILDING AREA: 249 EG (4 STORY) = 136,191 SF 259 EG {5 STORY) = 163,257 SF TOTAL AREA: 299,448 SF ., ING REQUIRED: UIF ED: ING RATIO: 2.5 spices /1 ,000 SF 2993448 X 2.5/1 000 = 749 spaces PARKING PROVIDED- r 77 EAST GRAND AVENUE - - - ------ ------ - - - - - -_ -- -_ - -- s - -- 4= - - - - - - - - - - - - - - - - - _ - _ - -- ALEXANDRIA.. PHASE II - COMPLETE (CURRENT) DGA planning I architecture I interiors M - O N I ; C� 1 -44 C� hh, C J •t tt �� �x x r � { - � F i��.i 3 k� ��x It x { fr r •�* �. � x• x x , � x ,� x { nraff7n9 W&&10 � � � ,' '. .• '. •'� xt tx t x �'` *� - y'' t 4 �� xx`e � .� ��� ,�4 t �r,rr -- � � r 1 \ x, • 1 't k �-- -- jam• '4 - - - _ _ - - s l It x 4 ti �'� 1 t • R . ' SCI 1 � ,•.� �� tt x � +• ''.� k * x '+ � - � '. t r - 5 �� kx � �'•�� �tx �t k. � �' _'•� t 1x �' xt xis t� �s _ y �'�J I I I I IFITT771 o k t x r t I 'I q �- G - o 1 PARKING TO BE INSTALLED 43 N HC Fr HC 4 PRIOR TO 269EG CONSTRUCTION jm TrN G 5 - 5 N, , 4 7 4 _ i,I' • Irl —III .. . , . 7 \ \ ~ °. HC iIST1 4 —STR � A as !' 24+ AT D i' � ..ice > � ,,,� '`� �` `'x ■.. A AAA A �,.. � `• `� y{� �Y. .`x � L. v 196 TEMPORARY PARKING TO BE DEMS ,A .............a... � �:: �. {v. .. 'h •! A �. * ' f %'' l A , ..... . . . . . , . . . . . . . ........ ....... y // 1`'� '`,.. 1, �`• �+, % �" � ..A \' .fi �. .. 4 - - . � "��t, .. : "'ti Y ..., � ply \, \ \ A _ ISI, i I ' 1,1 }' '' .. •I1 �'A,r i *1- _ '*6•e. t 1 . 1 LJ� --------------- — — — — — — — — — — — — — — — — — — — — — — — ------------ ALEXANDRIA.. PHASE Ilia - INTERIM PARKING BUILDING AREA: 249 EG (4 STORY) = 136,191 SF 259 EG (5 STORY) = 163,257 SF TOTAL AREA: 299,448 SF ING REQUIRED: ING RATIO- 2. 5 sp 11, 000 SF 299 }448 X 2,5/1000 = 749 spaces PARKING PROVIDED- EXISTING PARKING =x'49 spaces PARKING PRIDED = 213 spaces PARKING DEI IGISHED = -192 spaces TOTAL PARKING = 770 spices D 2€I 40 60 W DGA planning I architecture I interiors M - O N C� 1 -44 C� 111111h, EAST GLAND AVENUE EAST GRAND AVENUE �® - - - - v - - - - - - - - - - - - - - - - - - - - - - �. �6 X A��t.4C W - - - - - - - - - - - ! = - -- t J E J �x J ALEXANDRIA. PHASE III - COMPLETE r BUILDING AREA: 249 EG (4 STORY) = 136,191 SF 259 EG (5 STORY) = 163,257 SF 269 EG 3 STORY = 102,616 SF TOTAL AREA: 4021064 SF PARKING REQUIRED: PARKING RATIO: : 2. spaces /1 000 SE 4021064 X 2.5/1000 = 1 ,006 spaces PARKING PROVIDED ( @2.5): TOTAL PARKIN = 1,006 spaces m v. M D 20 44 54 W DA planning I architecture I interiors M - O N I ; n7 1 -44 h:b,N EAST GRAND AVENUE I� ALEXANDRIA. EAST GRAND AVENUE - - - - - - - - - - - - -- - - - - - - - - - -i�;- - - - ti _W L� LrJ W J � II. PHASE lVa - INTERIM PARKING 4 20 40 6C W DGA planning I architecture interiors M - O N I ; n7 1 -44 C] h:h,N f w 7OQWI + # ��+. �t' �+. �h,+.+.+: �++ it \1i�.�i�t�l�1������11'hti'h \li^� \4'x4 \^l \ \1h.t1i \"+. \4ii1�1'h h4h'hkhl \xYh4t �+, '�� 0"h,��.�•�'� _ _ ~yam a� /gyp ✓ �� � 44k �+ ' � ��'�� A }��. '+�. +'`t � �r }��`;� �`t'+ t t , / /f + r j} }rte {•: }. 4t .Pel.h �+ } -rte J I � - -- � LI �. I rT -rte -rr -rte -rte -- -- -- rr- rr- rr- rr -r-I • � I I I I I I I I I I I! I I I I I I I I I I I � 1 z- nm i p y I ----------------- � I ;� - -- f I,I I _ J I I I I I I I I I I I I I I LL I , I ;- I M I I I I I i I I II - -1 r - -- 1 �� kJ I I I I 1 1 1 1 L -- i � - -- -- � a __ I %f 1 ri— ri—1 —r- 1-1 —r11 L- -- - - -j j I I I I I 11 9 I I 11 I I I I,.I I I I I 1 B I I li ;c ° ,I, II I ° o ' I 1 I I I .I 'I I I I ly 'I IJ I� W 0 . [ I C1.1 i I 1 I I 1 1 IL � • I I I I I I I I 1 1 1 1 1 1 1 I I I I � / y 1y11 i1, I ALEXANDRIA. EA T GRAND AVENUE EAST GRAND AVENUE —_ _ _ _ _ — _ _ _ a — �I II 249 EAST GRAND ON -SITE PARKING - 213 EAST GRAND OFF -SITE PARKING PHASE 1Vb - INTERIM PARKING DGA planning I architecture I interiors C) CN o--g PIMP- 1 -44 r� L- -.� 13 /v .� �,. -41 < �► C 7-7-1 I 1 1 1 1 1 1 1 1 1 1 I I I I ' I - - -�� � '� u I__r I r I r`` (1i '. I \ 1 C_-1 F _� - ---] I- -- ' _ j "I ° L - --1 r -- ' L- I I 113) 1 -- J- -II. - 1--- L-- L--I -LJ -LJ - I I ,I � \ � �9-) IN �� °�� � �� `� �. I- - -J __ x•! %` PARKING PROVIDED: I I I I I I I I I I I I I I I I �� �► / -- PARKING ell EXISTING SURFACE PA.RKING 180 spaces NEW SURFACE PARKING — 412 spaces .. , � .. .. .. .. .. .. .. _ ---------------------------- 1 TOTAL PARKING = 592 spa ROEBLING ROAD PARKING DEFICIT @ 249EG =(517 - - - -- -- - - - - -- pa �, = -= =------- - - - - -- - - -- -- - - - - -- — - - - - -- - -- - — --- - - - - -- C:cncre +e PARKING RESERVE: =75 spaces T� � PHASE A LEXAN D IA.. 1Vb - ENLARGED INTERIM PARKING AT 213 EAST GRAND t 1 ' I a 'I _� 0 2(: 40 _ ,GA planning architecture I interiors co J C� 1 -44 r� L- 111h, 9RUNIa SNLLW } �Iw�m 4 ST RY RESERVED PARKING GARAGE (R) (179 PARKING SPACES) BUILDING AREA: 1 . , 249 E+ STORY) - 1361191 SF IL 259 E STORY) - 163257 SF 269 E+ 3 STORY) = 102616 SF r 279 ECG (4 STORY) � 137, SF TOTAL AREA: 540,000 SF PARKING REQUIRED: PARKING RATIO: 2.5 spaces/1,000 SF 5407000 X 2-5/1000 PARKING PROVIDED- = 1 R IDED- 1 ,350 spaces SURFACE PARKING = 542 spaces GARAGE (A) PARKING = 808 spaces TOTAL PARKING = 1,354 spaces PARKING RESERVE: PARKING RATIO: 2.83 spaces /1,000 SF GARAGE (B) PARKING = +179 spaces ....ALPARKING = 1 529 spaces EAST GRAND AVENUE EAST GRAND AVENUE - - -- - - - - - - - - - - - - - ------ - - - - - - - - - - =- - - - - - - - - - - ------ -- - - - - - - - - - - - w J 6 20 44 go B6 ALEXANDRIA.. PHASE IV - COMPLETE DGA planning I architecture I interiors C) CN 0 -444 1 -44 C1 h:h,qq t l7 6� � II >1 yj �6 l I � 11 y IIl + fV I h1 h11 l I' I ` ,Zr' I I I �I II � I J I I ❑ti I W I �] 1 I� I' I II II, fl MI 1 i STA'1FA'I6CtSS > II i � ".I Jf I I J II I J �f 1 I1I II 1 fI 1 d 1 f �tY�l 1 111 .-, 0 Sy \ / k '�.:• 4. 7 I F. EXISTING 5 �T�F . z z BUILDING `. 259 EAST GLAND EXISTING 4-STORY I— L_ i I T ,T Ir I d I I I I I I I I I I I I I I I I I I I I P — —I LLLIJJJ111LLL1— IJJ111LLLL1_IJ —J ! ,F— I —I —I —i —f T T i T` r F-1`I -- 7 7 T i— T— r I I —n _1 — IIIIIIIIIIIIIIIIIbIIIVlllll� _J IIIIIIIIIIIIIIIIII�IIINllllf� —J ' LL1— IJJ1111LLLLIJJ111LLLL1 —IJ—J FF I I I 1 f" .f. TFFF- 1- 1— I -1 —T TTT1— F- 1 -1 -1 1� I I I I I I I 1 1 1 1 1 1 1 1 1 1 1 1 P .,LLLLI— IJJ111LLLLIJJJIJI _ / r ., FFFI—I -1 -1TTTT- F1- 1 --1-1 - -1 I I I P I I I I I I I r' —� IJJ111— LLL'_I —i —� f 4 1 /ri Y I Y Y 11 -LLLL-LILJI 11 I I I f .- I RAILS TO TRAILS OVERALL PLAN L E X A N I F I A* DGA planning arch e ture interiors C) CN ■ -g Cl 1 -44 r� u 681 Gateway Boulevard • Four Story Lab -Office Building 127,000 Sq. Ft. • Awarded LEED Silver in 2007 � First LEED Silver Certified building in the State of California under the LEED - CS Pilot Program ALEXANDRIA.. 249 East Grand Avenue • Four Story Lab -Office Building 13b,000 Sq. Ft. • Awarded LEED Silver Certification in November, 2008 1 F 4 01 0 ,goo �a 7 z-t 259 East Grand Avenue • Five Story Lab - Office Building 163,250 Sq.Ft. • Currently seeking LEED Platinum Certification -0 I 400 & 450 East Jamie Court • Two @Three Story Lab -Office Building 1'629000 Sq. Ft. 9 Awarded LEED Silver Certification in 2010 IL A16, 11h, LAM JAAW Coo In ARE LEED EFFORTS IN SOUTH SAN FRANCISCO ,« DGA planning I architecture I interiors T_ om ■ -44 1 -44 h:�,qq I J U.S. Green Building Council HF.RFRY CFRTIFIES THAT 681 GATEWAY SOUTH SAN FRANCISCO, CA HAS SUCCESSFULLY MET THE GREEN BUILDING STANDARDS REQUIRED, FOR THE FOLLOWING LEVEL OF CERTIFICATION UNDER THE LEADERSHIP IN ENERGY AND ENVIRONMENTAL DESIGN (LEED-) GREEN BUILDING RATING SYSTEM'". May 2007 S- Richard 12� -Lnzu, Pre%idffthi,CE0 and Fban ding Clahviwi L I ALEXANDRIA , P U.S. Green Building Council HEREBY CERTIVIES THAI r 249 EAST GRAND SOUTH SAN FRANCISCO, CA HAS SUCCESSFULLY MET THE GREEN BUILDING STANDARDS REQUIRED FOR THE FOLLOWING LEVEL OF CERTIFICATION UNDER THE LEADERSHIP IN ENERGY AND ENVIRONMENTAL DESIGN (LEED-) GREEN BUILDING RATING SYSTEM". Novel b e r 2048 1-11d., /,lm, 1-mid, w, 111, d Founding Oval filial) 0 (PENDING FINAL REVIEW FOR CONSTRUCTION CREDIT) EAST GRAND SOUTH SAN FRANCISCO, CA LEED for Core & Shell ARE LEED CERTIFICATIONS IN SOUTH SAN FRANCISCO DGA planning I architecture I interiors co T— CD C\1 I ; -44 m -44 L--] h:b,N mg . 1 1 . bd DATE: July 10, 2013 TO: Honorable Mayor and City Council FROM: Sharon Ranals, Director of Parks and Recreation SUBJECT: GATEWAY MASTER PLAN FOR SIGNAGE AND LANDSCAPE AT ENTRANCES TO SOUTH SAN FRANCISCO RECOMMENDATION It is recommended that the City Council approve a draft Gateway Master Plan for signage and landscape at key entrances to South San Francisco. BACKGROUND /DISCUS SI ON Over the years a hodge -podge of signs has been installed at various roadway medians to identify entrances, or gateways, to South San Francisco. Most of the existing signs are wooden, and were made in -house many years ago. Installed more recently, there is a South San Francisco sign on the low wall on the corner of Mission Road and Hickey Boulevard, and the helix - inspired signs in the east of 101 area that were funded by Genentech. Some key entrances lack signage entirely. Landscape treatments at these entrances varies, but is not consistent or very attractive. As neighboring cities have installed updated entrance signage in recent years, such as the granite monuments in Colma, and the contemporary brushed metal and glass signs in San Bruno on El Camino, along with enhanced landscape, South San Francisco's entrances look unattractive by comparison. Lacking funding to replace all of the signs at the same time, it would be possible to phase improvements over time. However, South San Francisco lacks any standards or guidelines by which to even approach sign replacements or landscape upgrades. Parks and Recreation initiated a project to work with a landscape architect to develop a master plan for key entrances to the city. The goal is to establish design standards for signage and landscape, and over time establish attractive, distinctive, and recognizable identification for "South San Francisco" as people enter town. Brian Fletcher and staff from Callander Associates worked with a sub - committee comprised of Mayor Pro -Tem Matsumoto, Parks and Recreation Commissioners Garrone and Reynolds, and staff from Parks and Recreation and Planning. He will attend the City Council meeting to present an overview of the master plan. The first step in the study was to identify the specific locations where an entrance sign is desired, Staff Report Subject: Gateway Master Plan Date: July 10, 2013 Page 2 and to specify a number of sites to be addressed, with a limited number identified to limit the cost of the study. The sub- committee discussed the feeling and image that they wanted the signage to convey, and considered how the signs could be categorized. Callander Associates developed several alternative concepts, which the sub - committee discussed, and selected a preferred alternative. The design process has concluded, with 11 potential locations identified, some preferred signage designs for medium or large size signs, and preliminary cost estimates. The sub - committee has reviewed the attached draft Gateway Master Plan document, and forwarded it to the full Parks and Recreation Commission in April, where it was unanimously approved. The Commission is recommending approval by the City Council. FUNDING If the plan is approved by City Council, it is anticipated that as funding becomes available, one or more of the gateway locations could be accomplished as part of the Capital Improvement Program. The city could also use the Gateway Master Plan to require project developers to fund the installation of a gateway sign as a condition of approval for a commercial development. By: Sharon Ranals Director of Parks and Recreation attachment Approved. Barry M. Nagel City Manager DATE: July 10, 2013 TO: Honorable Mayor and City Council FROM: Kathy Mount, Human Resources Director SUBJECT: A RESOLUTION OF THE CITY OF SOUTH SAN FRANCISCO ADOPTING EMPLOYEE WELLNESS GUIDELINES FOR HEALTHY BEVERAGES, FOOD, AND PHYSICAL HEALTH RECOMMENDATION It is recommended that the City Council approve the attached Resolution adopting Employee Wellness Guidelines promoting healthy beverages, food, and physical health. BACKGROUND /DISCUSSION On April 25, 2012, City Council adopted a Resolution recognizing South San Francisco as a Healthy Eating Active Living (HEAL) City. The Resolution included improving employee health and wellness as one of its goals. In response, the Human Resources Department established a Wellness Committee comprised of "wellness champions" from each city department, and asked the committee to create policies and promote activities that support improved employee health. The committee's initial goal was to create and champion city -wide wellness guidelines focused on encouraging healthier food and drink options in the workplace and promoting exercise for City employees. The committee worked with Generations Community Wellness, a non -profit organization whose goal is to help communities advance their health and wellness practices through physical activity, nutrition programs, and guidelines. Generations provided the Committee with draft wellness guidelines which have been adopted by the County of San Mateo and other cities within the county and which the committee adapted for use in South San Francisco. There is substantial evidence that obesity is one of the primary causes of chronic diseases such as diabetes, high blood pressure, high cholesterol, and certain cancers. Preventing these diseases is a high priority because of their debilitating impact on the health of employees, retirees and their families. These chronic medical conditions adversely impact Job attendance and work performance and contribute significantly to the cost of health care. The proposed wellness guidelines focus on both diet and exercise as means to combat these serious health conditions. The proposed Employee Wellness Guidelines would eliminate sugar sweetened beverages and high calorie snacks from all vending machines located on City property and substitute alternative healthier options. The guidelines would further encourage healthy dining choices at all City - sponsored events and meetings, Staff has met with providers of vending machine products, local catering and restaurant services, and employee bargaining units to discuss the impact of these Wellness Guidelines. Staff has Staff Report Subject: A RESOLUTION OF THE CITY OF SOUTH SAN FRANCISCO ADOPTING EMPLOYEE WELLNESS GUIDELINES FOR HEALTHY BEVERAGES, FOOD, AND MOVEMENT Page 2 of 2 obtained a long list of alternative snack and beverage products for vending machines that significantly reduce the unhealthy aspects of vending machine fare. Almost universally, local food providers have reviewed the proposed guidelines and reported that they could meet them for any City sponsored functions where refreshments are served. Nothing in the guidelines would prohibit employees from bringing in their own food and drinks should they choose to consume items that the City no longer provides, but in order to ease the transition, staff agreed with one employee bargaining group to phase in full implementation of the new guidelines in vending machines in their work area over one year. The proposed Guidelines also encourage active movement and exercise throughout the day. Substantial evidence supports the health benefits of regular movement throughout the day so the Guidelines encourage, among other things, walking meetings, and physical activity breaks for every meeting lasting 60 minutes or longer. The Guidelines further encourage employees to take advantage of workout rooms and recreation classes available within the City. CONCLUSION Staff recommends that the Council adopt the Resolution approving the Employee Wellness Guidelines. By. lit Kathy Mount Human Resources Director Attachment: Resolution Approve 4y�M. Nagel City Manager City of South San Francisco Employee Wellness Guidelines RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA RESOLUTION OF THE CITY OF SOUTH SAN FRANCISCO ADOPTING EMPLOYEE WELLNESS GUIDELINES FOR HEALTHY BEVERAGES, FOOD, AND EXERCISE WHEREAS, on April 25, 2012 the City Council of the City of South San Francisco approved a resolution recognizing South San Francisco as a Healthy Eating Active Living City ( "HEAL" City); and, WHEREAS, under the direction of the Director of Human Resources a wellness committee of employees has researched and prepared a set of Employee Wellness Guidelines designed to achieve improved outcomes in physical health by encouraging healthier food and drink options in the workplace and promoting exercise for City employees; and WHEREAS, the Employee Wellness Guidelines substitute sugar sweetened beverages and high calorie snacks with healthier items in all vending machines on City property and at all City- sponsored events and meetings; and, WHEREAS, active movement and exercise throughout the day will be encouraged through the utilization of available resources through the City, stretching and physical activity during personal breaks, physical activity breaks for every meeting of 60 minutes or longer, and the incorporation of active movement throughout the day; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco hereby approves a resolution adopting Employee Wellness Guidelines for healthy beverages, food, and physical activity. 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 1 0th day of July, 2013 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST:. -I - City Clerk Wellness Guidelines Healthy Beverage Position Statement: South San Francisco strives to promote health and wellness by being a role model to promote healthy beverages. At all South San Francisco sponsored and /or coordinated meetings and events, both in the community and work site, for staff and clients where beverages will be provided, the selection must be in accordance with the South San Francisco Healthy Beverage Guidelines. Therefore South San Francisco will: Provide access to free, safe drinking water Require that there is access to free, safe drinking water wherever beverages are offered and /or sold. At meetings, for example, it is recommended that safe tap water, rather than individual bottles of water, be offered. If safe tap water is not available, then it is recommended that large jugs of water are utilized. Comply with Beverage Standards All beverages served (e.g., at meetings) and sold (e.g., in the cafeteria and vending machines) in South San Francisco facilities can only include: • Water with no added sweeteners; • Unflavored non -fat or 1% cow's milk with no added sweeteners • Unflavored non -dairy milk alternatives with no added sweeteners. o No more than 2.5 grams of fat per 8 fluid ounces • Fruit or vegetable -based juice drinks that have a maximum of 160 calories and 230 mg of sodium per container and no added sweeteners. • 100% fruit or vegetable juices with a maximum of 160 calories, 230 mg of sodium per container and no added sweeteners. • Coffee and tea with no added sweeteners; • Diet beverages with non- caloric sweeteners. IMM Wellness Guidelines Healthy Food Position Statement: South San Francisco strives to promote health and wellness by being a role model to promote healthy foods. At all South San Francisco sponsored and /or coordinated meetings and events, both in the community and work site, for staff and clients where foods will be provided, the selection must be in accordance with the South San Francisco Healthy Food Guidelines. Therefore South San Francisco will: « Increase the range and availability of healthy food options on our premises, including break areas, at meetings, and events. Food selection should emphasize fruit, vegetables, whole grains, and nonfat or low fat dairy products. • Aim to make half the plate fruits and vegetables. Provide red, orange, and dark green vegetables whenever possible. • Encourage lean meats, poultry and fish. • For starches such as rice, pasta, and bread products, the recommended portion size is about / of the plate. o Aim to select food with no trans fats and low in saturated fats, sodium, and added sugar. o Encourage high calorie foods /desserts only as an occasional small treat. The items are offered as a side dish along with healthier food choices. o Encourage cooking with healthier ingredients and providing snacks through the following ideas: employee newsletter, recipe board in break room, healthy foods at meetings. « Ensure that only healthy food and beverage options are provided as vouchers, prizes, or giveaways to South San Francisco employees and clients. « Move towards providing fresh fruits and vegetables in break rooms. -3- Wellness Guidelines Physical Health Position Statement: South San Francisco strives to promote health and wellness by being a champion for physical health and wellness. As an organization that employs staff, has volunteers, and serves the community, we are committed to promote health and wellness by providing physical activity and health education opportunities. Therefore South San Francisco will: • Provide safe, clean, well -lit thoroughfares for accessing our location and events by walking and bicycling. • Create opportunities for movement for staff and clients, such as "walking meetings," stretch breaks, or recreational exercise classes. • Find and capitalize on opportunities to promote exercise /movement to staff and clients. • Provide a 5- minute physical activity break for every meeting lasting 50 minutes or longer. • Help employees build physical activity into their day by getting to /from wort{ via public transit, walking, and /or biking. • Encourage employee enrollment in City exercise recreation classes. • Encourage smoking cessation through available programs. • Encourage and educate employees on the programs offered through the Employee Assistance Program (EAP) as well as other mental health services offered through employee benefits.