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HomeMy WebLinkAbout2004-09-22 e-packetAGENDA REDEVELOPMENT AGENCY CITY OF SOUTH SAN FRANCISCO REGULAR MEETING MUNICIPAL SERVICE BUILDING COMMUNITY ROOM WEDNESDAY, SEPTEMBER 22, 2004 7:00 P.M. PEOPLE OF SOUTH SAN FRANCISCO You are invited to offer your suggestions. In order that you may know our method of conducting Agency business, we proceed as follows: The regular meetings of the Redevelopment Agency are held on the second and fourth Wednesday of each month at 7:00 p.m. in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California. Public Comment: For those wishing to address the Board on any Agenda or non-Agendized item, please complete a Speaker Card located at the entrance to the Community Room and submit it to the Clerk. Please be sure to indicate the Agenda Item # you wish to address or the topic of your public comment. California law prevents Redevelopment Agency from taking action on any item not on the Agenda (except in emergency circumstances). Your question or problem may be referred to staff for investigation and/or action where appropriate or the matter may be placed on a future Agenda for more comprehensive action or a report. When your name is called, please come to the podium, state your name and address for the Minutes. COMMENTS ARE GENERALLY LIMITED TO THREE (3) MINUTES PER SPEAKER. Thank you for your cooperation. The Clerk will read successively the items of business appearing on the Agenda. As she completes reading an item, it will be ready for Board action. RAYMOND L. GREEN Vice Chair RICHARD A. GARBARINO, SR. Boardmember RICHARD BATTAGLIA Investment Officer BARRY M. NAGEL Executive Director KARYL MATSUMOTO Chair JOSEPH A. FERNEKES Boardmember PEDRO GONZALEZ Boardmember SYLVIA M. PAYNE Clerk STEVEN T. MATTAS Counsel PLEASE SILENCE CELL PHONES AND PAGERS HEARING ASSISTANCE EQUIPMENT IS AVAILABLE FOR USE BY THE HEARING-IMPAIRED AT REDEVELOPMENT AGENCY MEETINGS CALL TO ORDER ROLL CALL AGENDA REVIEW PUBLIC COMMENTS CONSENT CALENDAR 1. Motion to approve the minutes of September 8, 2004 2. Motion to confirm expense claims of September 22, 2004 CLOSED SESSION 3. Pursuant to Government Code Section 54956.8 real property negotiations related to 380 Alta Vista Drive; Agency Negotiator: Redevelopment Agency Assistant Director Van Duyn ADJOURNMENT REGULAR REDEVELOPMENT AGENCY MEETING SEPTEMBER 22, 2004 AGENDA PAGE 2 AGENDA CITY COUNCIL CITY OF SOUTH SAN FRANCISCO REGULAR MEETING MUNICIPAL SERVICE BUILDING COMMUNITY ROOM WEDNESDAY, SEPTEMBER 22, 2004 7:30 P.M. PEOPLE OF SOUTH SAN FRANCISCO You are invited to offer your suggestions. In order that you may know our method of conducting Council business, we proceed as follows: The regular meetings of the City Council are held on the second and fourth Wednesday of each month at 7:30 p.m. in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California. Public Comment: For those wishing to address the City Council on any Agenda or non-Agendized item, please complete a Speaker Card located at the entrance to the Council Chamber's and submit it to the City Clerk. Please be sure to indicate the Agenda Item # you wish to address or the topic of your public comment. California law prevents the City Council from taking action on any item not on the Agenda (except in emergency circumstances). Your question or problem may be referred to staff for investigation and/or action where appropriate or the matter may be placed on a future Agenda for more comprehensive action or a report. When your name is called, please come to the podium, state your name and address (optional) for the Minutes. COMMENTS ARE GENERALLY LIMITED TO THREE (3) MINUTES PER SPEAKER. Thank you for your cooperation. The City Clerk will read successively the items of business appearing on the Agenda. As she completes reading an item, it will be ready for Council action. KARYL MATSUMOTO Mayor RAYMOND L. GREEN Vice Mayor JOSEPH A. FERNEKES Councilman RICHARD A. GARBARINO, SR. Councilman PEDRO GONZALEZ Councilman RICHARD BATTAGLIA City Treasurer SYLVIA M. PAYNE City Clerk BARRY M. NAGEL City Manager 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 CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE INVOCATION PRESENTATIONS · Library Summer Reading Programs - Library Program Manager Ann Mahon · Proclamation: Banned Books Week 2004 - recipient Library Board President Betty Battaglia · Proclamation: Fire Prevention Week - Fire Chief Phil White · State Budget and Ballot Measure 1A Update - Finance Director Jim Steele AGENDA REVIEW PUBLIC COMMENTS ITEMS FROM COUNCIL · Announcements · Committee Reports CONSENT CALENDAR 1. Motion to approve the minutes of September 8, 2004 2. Motion to confirm expense claims of September 22, 2004 3. Resolution approving South San Francisco city flag 4. Resolution in support of Proposition 1A on the November ballot, providing constitutional protection of local government revenues 5. Resolutions approving the purchase of Fire and Police RMS software 6. Resolution approving application from Peninsula Yellow Cab for a certificate of necessity 7. Resolution authorizing acceptance of a Local Law Enforcement Block Grants Program grant funding from the United States Department of Justice, Bureau of Justice Assistance in the amount of $11,723 8. Resolution authorizing acceptance of a Library Services and Technology Act grant in the estimated amount of $2,300 9. Resolution authorizing the acceptance of funding from the California State Library, the Daly City/Colma Rotary Club and Kaiser Permanente Medical Center to support Project Read Services in the amount of $22,000 REGULAR CITY COUNCIL MEETiNG SEPTEMBER 22, 2004 AGENDA PAGE 2 10. Resolution awarding contract to O'Keefe Mechanical Co. for the emergency generator replacement and upgrade at Corporation Yard in the amount of $34,400 11. Acknowledgement of proclamations issued: Michael Wilson, 9/10/04, Ray Honan, 9/9/04; and Robert Collins, Myron Sutton and David Haskin, 9/19/04 (retirees) PUBLIC HEARING 12. Resolution authorizing submittal of Consolidated Annual Performance and Evaluation Report to Department of Housing and Urban Development ADMINISTRATIVE BUSINESS 13. Resolution amending the FY 2003-04 budget and authorizing various budget actions 14. Resolution amending the FY 2004-05 budget to reflect revised revenue estimates COUNCIL COMMUNITY FORUM CLOSED SESSION 15. Pursuant to Government Code Section 54957.6 conference with Labor Negotiator Jennifer Bower on negotiations with all labor units ADJOURNMENT REGULAR CITY COUNCIL MEETING AGENDA SEPTEMBER 22, 2004 PAGE 3 Staff ort AGENDA ITEM #3 DATE: TO: FROM: SUBJECT: September 22, 2004 Honorable Mayor and City Council Susan Kmmedy, Senior Management Analyst RESOLUTION APPROVING ADOPTION OF A CITY FLAG RECOMMENDATION It is recommended that the City. Council approve a resolution adopting a South San Francisco City flag to be flown over City Hall, at Sister Cities Park, at special events and other appropriate locations and also to be used as gifts for visiting dignitaries. BACKGROUND/DISCUSSION Mayor Matsumoto and Vice Mayor Green have served on a sub-committee to develop this concept, including the design and use. Traditionally, flags are symbolic, visual representations of a country, state or in this case a municipality. The proposed flag design for South San Francisco is representative of South San Francisco being the birthplace of biotechnology and the ongoing impact this field has on our community. Through the flying of the flag in and around the city, and its distribution to visiting dignitaries, South San Francisco's reputation as a major force in bioteclmology will be even more widespread. CONCLUSION Adopting a city flag will provide South San Francisco residents, businesses and visitors with a symbolic, visual representation of our city. Therefore, staff recommends the Council approve the proposed resolution. By: Susa . . Senior Management Analyst Approved: ~:~c..:; / -BarO M./Nagel City Manager Attachment: Resolution RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION ADOPTING A SOUTH SAN FRANCISCO CITY FLAG WHEREAS, staff recommends adopting a South San Francisco City flag that will be flown over City Hall, at Sister Cities Park and to be used as gifts for visiting dignitaries. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco adopts a South San Francisco City flag. I hereby certify that the foregoing Resolution was regularly introduced and adopted' by the City Council of the City of South San Francisco at a meeting held on the __ day of 2004 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk S:\Current Reso's\9-22-04city.flag.,'esDOC StaffReport AGENDA ITEM DATE: TO: FROM: SUBJECT: September 22, 2004 The Honorable Mayor and City Council Jim Steele, Director of Finance RESOLUTION CONSIDERS SUPPORT FOR PROPOSITION lA ON THE NOVEMBER BALLOT RECOMMENDATION: It is recommended that the City Council adopt a resolution in support of State Proposition lA. The resolution would identify the City of South San Francisco as a supporter of providing constitutional protection for local government revenues. BACKGROUND/DISCUS SION: Proposition lA has been placed on the November 2, 2004 Statewide Ballot by the Legislature to limit the State's ability to take and use local government funding and would protect local public safety, healthcare and other essential local services. State government currently seizes more than $5.2 billion annually in local property tax funds statewide from cities, counties and special districts, costing local governments more than $40 billion in lost revenues over the past 12 years. These ongoing shifts and raids by the state of local property tax funds and other funding dedicated to local governments have seriously reduced resources available for local fire and paramedic response, law enforcement, public health and emergency medical care, roads, parks, libraries, transportation and other essential local services. These funding raids have added pressure for local governments to increase fees and taxes to maintain basic local service levels while the drain of local resources has continued even during periods when the state's budget has been overflowing with surpluses. Proposition lA is also supported by a bipartisan, diverse coalition including Governor Schwarzenegger, Democrat and Republican legislative leaders, local government officials, public safety representatives, healthcare, business, labor and community leaders. Staff Report To: Re: Date: The Honorable Mayor and City Council Support for Proposition lA September 22, 2004 Page: 2 of 2 Proposition lA will not raise taxes, but will help reduce pressure for local fee and tax increases by limiting state raids of local government funding. Proposition lA does not reduce funding for schools or any other state program or service and was carefully written to allow flexibility in the event of a state budget emergency. Prepared By: Finaqce DirectotI _. r Approved vy: .~. ~&~-.~ c/ City Manager ATTACHMENT: Resolution JS/BN:ed RESOLUTION CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION SUPPORTING PROPOSITION lA PROVIDING CONSTITUTIONAL PROTECTION FOR LOCAL GOVERNMENT REVENUES WHEREAS, state government currently seizes more than $5.2 billion annually in local property tax funds statewide from cities, counties and special districts, costing local governments more than $40 billion in lost revenues over the past 12 years; and WHEREAS, these ongoing shifts and raids by the state of local property tax funds and other funding dedicated to local governments have seriously reduced resources available for local fire and paramedic response, law enforcement, public health and emergency medical care, roads, parks, libraries, transportation and other essential local services; and WHEREAS, these funding raids also add pressure for local governments to increase fees and taxes to maintain basic local service levels; and WHEREAS, this drain of local resources has continued even during periods when the state's budget has been overflowing with surpluses; and WHEREAS, Proposition lA is a historic measure that will appear on the November 2004 statewide ballot that would limit the State's ability to take and use local government funding; and WHEREAS, by protecting local government funding, Prop lA would protect local public safety, healthcare and other essential local services; and WHEREAS, Prop lA will not raise taxes and, in fact, will help reduce pressure for local fee and tax increases by limiting state raids of local government funding; and WHEREAS, Prop lA does not reduce funding for schools or any other state program or service, and Prop lA was carefully written to allow flexibility in the event of a state budget emergency; and WHEREAS, Prop lA is supported by a bipartisan, diverse coalition including Governor Schwarzenegger, Democrat and Republican legislative leaders, local government officials, public safety representatives, healthcare, business, labor and community leaders. NOW TH:EREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council hereby supports Proposition lA, the statewide ballot initiative that will prevent the state from further taking local government revenues. BE IT, FURTI-I:ER RESOLVED that City staff will send a copy of this resolution to Yes on lA - Californians to Protect Local Taxpayers and Public Safety. Fax: 916-442- 3510 or 1121 L Street, #803, Sacramento, CA 95814 I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco, held on the __ day of ,2004, by the following vote: AYES: NOES: ABSTAIN: ABSENT: S:\Current Reso's\9-22-04prop 1A.res.doc ATTEST: City Clerk StaffRe ort ITEM #5 DATE: TO: September 22, 2004 The Honorable Mayor and City Council FROM: SUBJECT: Chief of Police COMPUTER AIDED DISPATCH AND RECORDS MANAGEMENT SOFTWARE UPGRADE RECOMMENDATION: It is recommended that the City Council adopt a Resolution authorizing the City Manager to execute contracts for computer software and installation services to Sun Ridge Systems, Inc. of E1 Dorado Hills, California, and Fire Information Support Services, Inc. of Dana Point California for the combined amount of $381,662.75, which is in the Capital Improvement Program (CIP). BACKGROUND: The Computer Aided Dispatch (CAD) and Records Management System (RMS) were purchased in 1990 and upgraded once in 1996. The systems serve the Police and Fire Departments. The systems have exceeded their maximum recommended life and are becoming increasingly difficult to maintain. Technical problems are more likely to occur as the systems get older and the time to repair will correspondingly increase. The proposed Fire RMS is compatible with the County's CAD system; whereas, the current Fire RMS system is not compatible. The Fire RMS must be upgraded in preparation for the Fire Department to be dispatched by the County. CONTRACTOR Sun Ridge Systems, Inc. E1 Dorado Hills, California Fire Information Support Services, Inc. BID AMOUNT $333,959.00 NOTE Police CAD and RMS $47,703.75 Fire RMS Dana Po~, California Fundi~/g f~r this prl~ct, $381,662.75 is included in the City s 2004-2005 Capital Improvement Program !5~ 161 ~-~3 ¢)vjOfthis amount, the Police Departmen._t received $195,000 fr°m a grant' I !Y. I I lJ . .( / '% By: ~-'/~,~/~/~~-'~ Appr°vgd- :-~[' ~ ~/ M~k Ra~fae~ /~ z 7 ~-.-/ B~ U. NaVel Chief of Police City M~ager~ Attachment: Resolution RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AUTHORIZING A CONTRACT FOR COMPUTER SOFTWARE AND INSTALLATION SERVICES TO SUN RIDGE SYSTEMS, INC. IN THE AMOUNT OF $333,959 WHEREAS, staff recommends authorizing a contract for computer sof~ware and installation services to Sun Ridge Systems, in the amount of $333,959; and WHEREAS, funding for this project is include in the City of South San Francisco's 2004/2005 Capital Improvement Program. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco authorizes a contract for computer soft-ware and installation services to Sun Ridge Systems, Inc. in the amount of $333,959. BE IT FUTURE RESOLVED that the City Manager is hereby authorized to execute the contracts on behalf of the City of South San Francisco. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a meeting held on the __ day of 2004 by the following vote: AYES: NOES: ABSTAIN: ABSENT: S:\Current Reso's\9-22-04sun.ridge.system.res.DOC ATTEST: City Clerk RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AUTHORIZING A CONTRACT FOR COMPUTER SOFTWARE AND INSTALLATION SERVICES TO FIRE INFORMATION SUPPORT SERVICES, INC. IN THE AMOUNT OF $47,703.75 WHEREAS, staff recommends authorizing a contract for computer software and installation services to Fire Information Support Services, Inc. in the amount of $47,703.75; and WHEREAS, funding for this project is include in the City of South San Francisco's 2004/2005 Capital Improvement Program. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco authorizes a contract for computer software and installation services to Fire Information Support Services, Inc. in the amount of $47,703.75. BE IT FUTURE RESOLVED that the City Manager is hereby authorized to execute the contracts on behalf of the City of South San Francisco. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a meeting held on the ~ day of 2004 by the following vote: AYES: NOES: ABSTAIN: ABSENT: S:\Current Reso's\9-22-04fire.info.support.ser.res-DOC ATTEST: City Clerk AGENDA ITEM #6 DATE: September 22, 2004 TO: Honorable Mayor and City Council FROM: Marty Van Duyn, Assistant City Manager SUBJECT: PENINSULA YELLOW CAB: APPLICATION FOR A "CERTIFICATE OF CONVENIENCE AND NECESSITY" Applicant: Nathan Dwiri, representing Peninsula Yellow Cab Company and Peninsula LLC RECOMMENDATION: It is recommended that the City Council approve the application for a "Certificate of Convenience and Necessity" to Nathan Dwiri, representing Peninsula Yellow Cab Company and Peninsula LLC, in accordance with the municipal Code (Chapter 6.72, Vehicles For Hire Regulated). BACKGROUND: For the past thirty-four years, Peninsula Yellow Cab has operated as a sole operator as long as it could meet the needs of the community, comply with the standards set by the Police Department, and realize a reasonable profit. When the agreement was established, City staffbelieved that a sole operator could provide services to both businesses and residents and maintain a safe fleet. The City believed that multiple taxicab companies operating in the city might actually reduce service. Taxicab companies would fred ways to cut costs in order to maintain profit margins, cut comers on equipment maintenance, respond only to more profitable calls (such as hotels over residents), and encourage kickbacks to hotels in order to get calls. In 2000, the City Council confmned that Peninsula Yellow Cab provides demand responsive taxicab service to residents and visitors in South San Francisco. The proposed application would not change the service, number of vehicles and drivers, or the location of the dispatch office that Peninsula Yellow Cab provides to the city. Staff Report Subject: Application for a "Certificate of Convenience and Necessity" Date: September 22, 2004 Page 2 of 6 DISCUSSION: Project Description Peninsula Yellow Cab Acquisition, LLC ("Peninsula LLC") is acquiring the existing taxicab business of Peninsula Yellow Cab Company, Inc., which currently operates as a sole operator in South San Francisco. In accordance with the South San Francisco Municipal Code, Chapter 6.72, Vehicles For Hire, the new owner has submitted an application to obtain a "Certificate of Convenience and Necessity" to continue to operate a taxicab service in South San Francisco. Peninsula LLC is an affiliate of Yellow Cab Cooperative, Inc. in San Francisco. Nathan Dwiri, representing the Yellow Cab Cooperative, will become the initial member and manager of Peninsula LLC. Once the acquisition is complete, Peninsula LLC will offer all the shareholders of Yellow Cab the oppommity to invest in the new company. Joe Gilleo, the former operator of Peninsula Yellow Cab, will continue to work with the company. Municipal Code Requirements The municipal Code (Chapter 6.72, Vehicles For Hire Regulated) regulates taxicab, bus and rent car operations and establishes a specific process, regulates fares, requires that operators adhere to specific maintenance criteria, and lists the criteria for another taxicab operator to work in the city. Any taxi, bus, or rent car operator who wishes to provide service in the City of South San Francisco must obtain a Certificate of Convenience and Necessity. The Code further specifies that new operators or a new owner must submit a written application, with a fee and supporting documentation, for a Certificate of Convenience and Necessity to the Police Department. Once the application is received and determined to be complete, the Police Department and Planning Division will investigate the feasibility of the proposed new service. Section 6.72.030, Application for certificate states: "(c) After the service for which a certificate is granted hereunder is discontinued, or if the owner sells or discontinues his or its business for a period of forty-five days or longer, the certificates granted hereunder shall be automatically cancelled and shall be reissued only in accordance with the provisions of this Chapter. (Ord. 1000 § 2 (part), 1986)" Focus of the City Investigation The Municipal Code outlines the scope of the City's investigation. The Police Department is responsible for conducting the background investigation on the applicant or any person with direct or indirect interest in the business. The Planning Division investigates: · Whether or not the business meets the General Plan and any applicable specific plans and Staff Report Subject: Application for a "Certificate of Convenience and Necessity" Date: September 22, 2004 Page 3 of 6 Title 20 of the Municipal Code; · The demand of the public for services to be rendered by the applicant; · The adequacy of existing mass transportation and taxicab services in the City of South San Francisco; · Whether existing agencies will furnish additional services if granted the right; and · What effect will such additional taxicab have on traffic congestion and parking? If the investigation determines that the existing taxicab operation does not provide adequate service, Planning Division staffmust determine whether or not the existing service has the capability to furnish additional service, if granted the right. The Police and Planning investigation is then forwarded to the City Council within 60 days following from the date of receipt of a complete application. Planning Division Investigation In October 2000, the City investigated the feasibility of expanding taxicab service in South San Francisco by permitting small and independent taxicab operators to pick up customers at hotels. The Police Department and the Planning Division prepared a Memorandum to the City Council that stmnnarized the Municipal Code requirements and determined that Peninsula Yellow Cab exceeded the City's service requirements for businesses and residents. The investigation incorporated studies, surveys, interviews, and data prepared by the Police Department, the Peninsula Congestion Relief Alliance, hotel operators, taxicab operators, other cities, and Peninsula Yellow Cab (see Attachment 1). Responding to this application, the Police Department and the Planning Division has updated the original investigation to determine whether or not the level of existing taxicab service adequately serves businesses and residents located in South San Francisco. Description of Existing Taxicab Service For the past thirty-four years, Peninsula Yellow Cab has been the city's sole taxicab operator that serves South San Francisco's businesses and residents. Peninsula Yellow Cab focuses its service on residential, corporate accounts, and service to hotel clients. Currently, the Peninsula Yellow Cab provides the following services to South San Francisco residents and businesses: · It maintains a fully staffed dispatch office in South San Francisco and a garage and maintenance facility in San Francisco; · It accepts calls and provides service to residents; · It takes advanced reservations; · It maintains corporate accounts and provides special services to companies located in the East of 101 Area; Staff Report Subject: Application for a "Certificate of Convenience and Necessity" Date: September 22, 2004 Page 4 of 6 · All drivers must follow prescribed "Driver Rules and Operating Procedures; · It accepts payment by credit card and charge accounts; and, · It is working with local businesses and the Chamber of Commerce to initiate the Downtown Dasher program. Peninsula Yellow Cab has provided City staff with a business plan that outlines its growth projections through June 2005. Currently, the company employs 33 drivers and, indicated in the following table, has recently increased its taxicab and van fleet from 13 vehicles in February 2004 to 25 vehicles in August 2004 (see Attachment 2). Type of Vehicle February 2004 August 2004 June 2005 Sedans 13 19 22 Vans 4 6 8 Market Segments, Types of Trips and Service Zones Peninsula Yellow Cab serves businesses and residents located in both South San Francisco and San Bruno. Residential areas, hotels and businesses comprise the three key market segments that are served by taxicab service. Company data from daily log books for the month of August 2004 indicates that over one-third of all peak hour calls originates from South San Francisco residents. Despite the origin of the calls, the type of call will also vary by the destination of the trip. The most typical type of trips includes the following: · Calls from SSF hotels to the San Francisco International Airport are concentrated during the morning peak hours (5 am -9 am); · Calls from SSF hotels to San Francisco are both popular and are the most profitable trips during the day; · Calls from a resident to a destination in the South San Francisco area are popular during the day; · Calls from residents to BART stations are also popular during the peak hours; and · Calls from East of 101 area business to provide taxicab service for employees needing to go to another location or take a ride home. In South San Francisco, the company divides its service area into two zones. Zone 1 comprises the area from Spruce Avenue to the Westborough area. In the 2000 report, Peninsula Yellow Cab indicated that six vehicles are assigned to cover that area during the day. Zone 2 comprises the area from Spruce Avenue to the San Francisco Bay. The company reserves 18 vehicles to respond to calls in the area during the day. According to the company, four cabs are specifically assigned to the East of 101 area near the Conference Center during the peak hours. When a cab is called out of the area, additional cabs are dispatched to the area. The company indicates that the Staff Report Subject: Application for a "Certificate of Convenience and Necessity" Date: September 22, 2004 Page 5 of 6 number of vehicles assigned to each zone has not changed since 2000. Description of Peak Hour Calls and Trips in South San Francisco According to Peninsula Yellow Cab, peak demand for taxicab service generally occurs between 5 a.m. to 9 a.m., when significant volumes of guests need to get to the airport in a timely manner. Peninsula Yellow Cab indicates that the company receives calls to all locations between 9 a.m. and 8 p.m. The following table shows the average number of calls to Peninsula Yellow Cab, logged during a 30-day period in 2004. 5AM-9AM 9AM-8PM Residential 35 62 Hotels 10 12 Business 20 63 Duration Between the Call and Pick Up The Peninsula Yellow Cab dispatch office and fleet are located in Downtown South San Francisco. Downtown is considered to be a central location that enables the company to dispatch vehicles to the designated zones. As noted above, the company will station a certain number of vehicles in the zone areas (such as near the Conference Center or in the Westborough neighborhood), during peak periods. According to the company, an acceptable duration between the call and the pick-up for non-scheduled calls is between 15-20 minutes. The company's estimated duration between the call and pickup appears to be consistent with the actual time it takes to drive bom Downtown South San Francisco to various locations in the city. Planning Division staff conducted an informal time-distance survey on two days during the month of August 2004, between 12:00 noon and 2:00 p.m. The following routes were used: Ronte 1: City Hall to Westborough (City Hall-Grand Avenue-Chestnut Avenue- Westborough Boulevard to Callan Boulevard). · Route 2: City Hall to Genentech (Grand Avenue-East Grand Avenue-Grandview Drive- DNA Way). · Route 3: City Hall to Conference Center (Grand Avenue-Airport Boulevard-South Airport Boulevard). Route Wednesday, August 4, 2004 Sunday, August 08, 2004 Route 1 12 minutes 15 minutes Route 2 27 minutes 13 minutes Route 3 36 minutes I 8 minutes Staff Report Subject: Application for a "Certificate of Convenience and Necessity" Date: September 22, 2004 Page 6 of 6 Summary of the Police Department Investigation The Police Department is responsible for conducting the background investigation on the applicant or any person with direct or indirect interest in the business. The Police Department examines the Peninsula Yellow Cab fleet once a year. The most recent evaluation reveals that the vehicles are clean and safe. The Police Department has also completed a background on Nathan Dwiri and the Yellow Cab Cooperative. The application packet includes the list of investors and cab drivers. There is nothing in the background that would cause any concern for the City or the Police Department. The operation of the business will remain the same; therefore there will be no added impact on the Police Department. CONCLUSION: The applicant does not propose to change the existing taxicab service. The Police Department and the Planning Division believe that Peninsula Yellow Cab will continue to provide adequate service to businesses and residents located in South San Francisco. It is recommended that the City Council approve the application for a "Certificate of Convenience and Necessity" to Nathan Dwiri, representing Peninsula Yellow Cab Company and Peninsula LLC, in accordance with the municipal Code (Chapter 6.72, Vehicles For Hire Regulated). Marty Van Duyn, ~,.Jistant City Manager B~rr~ MfNagel, ~j~ty Ma~n-~er Attachments: 1. Memorandum dated October 25, 2000 2. Peninsula Yellow Cab Application Packet CITY OF SOUTH SAN FRANCISCO MEMORANDUM DATE: October 25, 2000 TO: FROM: Marry Van Duyn, Director of Economic and Community Development Michael Lappen, Senior Planner SUBJECT: Analysis of Taxicab Service in the City of South San Francisco Recent events have made it imperative that the City investigate the feasibility of expanding taxicab service in South San Francisco by permitting small and independent taxicab operators to pick up customers at hotels. At the December 1999 City Council meeting, a taxicab operator requested that City staffco~ent on the status of the exclusive agreement between the City and Peninsula Yellow Cab to provide taxicab service in South San Francisco. During the meeting, the operator complained that Peninsula Yellow Cab does not adequately serve hotels and residents since the company ignores calls or does not respond to calls in a reasonable time. On December 29, 1999, the Police Department prepared a Memorandum to the City Council that summarized the agreement with Peninsula Yellow Cab and summarized the Municipal Code sections that regulate taxicab service in South San Francisco. To date, the City has not received a formal application to operate a taxicab service in the city. BACKGROUND: Municipal Code Requirements The Municipal Code (Chapter 6.72, Vehicles For Hire Regulated) regulates taxicab, bus and rent car operations and establishes a specific process, regulates fares, requires that operators adhere to specific maintenance criteria, and lists the criteria for another taxicab operator to work in the city. Any taxi, bus, or rent car operator who wishes to provide service in the City of South San Francisco must obtain a Certificate of Convenience and Necessity. The. Code further specifies that new operators must submit a written application, with a fee and supporting documentation, for a Certificate to the Police Department. Once the application is received and determined to be complete, the Police Deparanent and Planning-Division will investigate the' feasibility of the proposed new service. · Focus of the City Investigation The Municipal Code outlines the scope of the Police Department and Planning. Division investigation. The Police Department is responsible for conducting the background investigation on the applicant or any person with' direct or indirect interest in the business. The Municipal Code also lists the following criteria for the Planning Division investigation: -1- Memorandum To: Marry Van Duyn, Director of Economic and Community Development From: Michael Lappen, Senior Planner' Re: Analysis of Existing Taxicab Service Date: October 25, 2000 Page 2 Whether or not the business meets the General Plan and any applicable specific plans and Title 20 of the Municipal Code; The demand of the public for services to be rendered by the applicant; The adequacy of existing mass transportation and taxicab services in the City of South San Francisco; Whether existing agencies will furnish additional services if granted the right; and, What effect will such additional' taxicab have on traffic congestion and parking. I/the investigation determines that the existing taxicab operation does not provide adequate service, Planning staff must determine whether .or not the existing service has the capability to furnish additional service, if granted the right. The Police and Planning investigation is then forwarded to the City Council within 60 days. following from the date of receipt ora complete application. DISCUSSION: Between June and September, 2000, the Planning Division investigated whether or not the level of existing taxicab service adequately serves businesses and residents located in South San Francisco. The investigation incorporates existing studies, surveys, interviews, and data prepared by the Police DeparUnent, the Peninsula Congestion Relief Alliance, hotel .operators, taxicab operators, other cities, and Peninsula Yellow Cab. The Discussion Section of the Report is divided into the foltow/ng subsections: Description of Existing Taxicab Service Description of Peak Hour Calls and Trips in South San Francisco Description of Existing Programs that Serve the East of 101 Area (Shuttle Bus and Downtown Dasher) Summary of lmterviews and the Survey Evaluating Existing Taxicab Service Description 'of Potential Proposals for New Taxicab Operations Survey of Taxicab Regulations in Other Jurisdictions ' Description of Existing Taxicab Service For the past thirty-four years, Peninsula Yellow Cab has been the city's sole taxicab operator that serves South San Francisco's businesses and residents. Peninsula Yellow Cab focuses its service on residential, corporate accounts, and service to hotel clients. Currently, the Peninsula Yellow Cab provides the 'following services to South San Francisco residents and businesses: It maintains a fully staffed dispatch office, garage and maintenance facility in South San Francisco; -2- Memorandum To: Mart), 'Van Duyn, Director of Economic and Community Development From: Michael Lappen, Senior Planner Re: Analysis of Existing Taxicab Service Date: October 25, 2000 Page 3 It accepts calls and prOvides service to residents; It takes advanced reservations; It maintains corporate accounts and provides special services to companies located in the East of 101 Area; All drivers must follow prescribed "Driver Rules and Operating Procedures"( It accepts payment by credit card and charge accounts; and, It is working with local businesses and the Chamber of Commerce to initiate the DowntOwn Dasher program. Peninsula Yellow Cab has provided City staff with a business plan that outlines its growth projections through June 2001. Currently, the company employs 92 drivers and, indicated in the following table, has recently increased its taxicab and van fleet from .19 vehicles in 1999 to 30 vehicles in 2001. Type of Vehicle January 1999 June 2000 June 2001 Sedans ] 19 25 30 Vans 0 3 6 Executive Sedans 0 2 4 Market Segments, Types of Trips and Service Zones Peninsula Yellow Cab serves businesses and residents located in both South San Francisco and San Bruno. Residential areas, hotels and businesses comprise the three key market segments that 'are served by taxicab service. Company data from daily log books for the month of June 2000 indicates that over one-third of all peak hour calls originate from South San Francisco residents. Despite the origin of the calls, the type of call will also vary bY the destination of the trip. The most typical type of trips include the following: · Calls from'SSF hotels to the San Francisco International Airport are concentrated during the morning peak hours (5 am - 9 am). Calls from SSF hotels to San Francisco are both popular and are the most profitable trips during the day. Calts from a resident to a destination in the South San Francisco area arepopular during the day. Calls from residents to BART stations are also popular during the peak hours. Calls from East of 101 area business to provide taxicab service for employees needing to go ~Penin,qula Yellow Cab Company, Inc..Driver Rules and Operating Procedures -3- Memorandum To: Marry Van Duyn, Director of Economic and Community DevelOpment From: Michael Lappen, Senior Planner Re: Analysis of ExiSting Taxicab Service Date: October 25, 2000 Page to another location or take a ride home. In South San Francisco, the company divides its service area into two zones. Zone 1 comprises the area from Spruce Avenue to the Westborough area. Six vehicles are assigned to cover that area during the day. Zone 2 comprises the area from Spruce Avenue .to the San Francisco Bay. The company reserves 18 vehicles to respond to calls in the area during the day. According to the company, four cabs are specifically assigned to the East of 101 area near the Conference Center during the peak hours. When a cab is called out of the area, additional cabs are dispatched to the -area. Description .of Peak Hour Calls and Trips in South San Francisco Based on information provided by the Peninsula Congestion Relief Alliance and discussions with Peninsula Yellow Cab, peak demand for taxicab service generally occurs between 5 a.m to 9 a.m., when'si~cant volumes of guests need to get to the airport in a timely manner. Peninsula Yellow Cab indicates that the company receives calls to all locations between 9 a.m. and 8 p.m.. The following table shows the average number of calls to Peninsula Yellow Cab, logged during a 30,days period .and classified by the three market segments. 5AM-9AM i 'gAM- 8 PM Residential 26 55 Hotels 20 20 Business 10 50 Duration Between the Call and Pick Up The Peninsula Yellow Cab dispatch office and fleet are located in Downtown South San Francisco. Downtown is considered to be a central location that.enables the company to dispatch vehicles to the city's two designated zones. As noted above, the company will station a certain number of vehicles in the zone areas (such as near the Conference Center or in the Westborough neighborhood) during peak periods. According to the company, an acceptable duration, between the call and the pick-up for non-scheduled calls is betweenl 5-20 minutes. The company's estimated duration between the call and pickup appears to be consistent with the actual time it takes to drive from Downtown South San Francisco to various locations in the city. Planning Division staff conducted an informal time-distance survey on two days during the month of June 2000, between 12:00 noon and 2:00 p.m.. The following routes were used: -4- Memorandum To: Marty Van Duyn, Director of Economic and Community DeveloPment .From: Michael Lappen, Senior Planner Re: Analysis of Existing Taxicab Service Date: October 25, 2000 Page 5 Route 1: City Hall to Westborough (City Hall-Grand Avenue-Chestnut Avenue,Westborough Boulevard to Callan BOulevard). Route 2: City Hall to Genentech (Grand Avenue-East Grand Avenue- Crrandview Drive-DNA Way). Route 3: City Hall to Conference Center (Grand Avenue-Airport Boulevard-South Airport Boulevard). Route Thursday, Thursday, June 8, 2000 June 15, 2000 Route 1 17 minutes 20 minutes Route 2 9 minutes 12 minutes Route 3 7 minutes 10 minutes Description of Existing Programs that Serve the East of 101 Area (Shuttle Bus and Downtown Dasher) With-funding from the City of South San Francisco, the Alliance has been overseeing, the current study of furore ground transportation East of 101, including hotel shuttles. The Alliance is currently managing three different consortiums of employer-based shuttles for commute transportation to and from BART and Caltrain. ' ' Downtown Dasher The City, the Chamber of Commerce, Peninsula Congestion Relief Alliance, and local businesses are sponsoring the Downtown Dasher program. The service picks up East of 101 area employees between 11:00 a.m. and 2:00 p.m. from existing shuffle stops and drops them off at one of two locations in the downtown area. Each company provides the employee with a voucher. The employee must contact Peninsula Yeltow Cab by 10:00 a.m. the morning of the trip to make the reservation. Existing Hotel Shuttle.Services in the East of 101 Area- All hotels interviewed by the Alliance have a shuffle service provided with vans and/or shuffle buses owned or leased by the hotel. Drivers are hired individually by the hotels, and several drivers work for multiple hotels. While some hotels have had difficulty hiring and retaining drivers with Class B licenses, this is not a problem with other hotels. Fleet size ranges from one to six vehicles per hotel. The following hotels provide shuttle service to clients in South San Francisco: -5- Memorandum To: Marty Van Duyn, Director of Economic and Community Development From: Michael Lappen, Senior Planner Re: Analysis of Existing Taxicab Service Date: October 25, 2000 Page 6 · Travel Lodge · Super 8 · Grosvenor Hotel · Embassy Suites · Ramada lnn " 'Larkspur Landing · Holiday Inn · .Hilton Garden Inn · La Quinta · -Hampton Inn The number of guests that utilize a hotel shuffle van ranges from approximately 25 percem to 40 percent of hotel guests. About half of the sample hotels limit their shuttle service pick-ups and drop- offs to the airport, and the other half provide services to non-airport destinations such as shopping centers, restaurants, and business locations. Peak demand for all hotels is generally in the 5-9 a.m. period, when significant volumes of guests need to get to the airport in a timely manner. A secondary peak occurs between 8-11 p.m., 'particularly for hotels with a significant park-and-fly market.se~mnent. Most hotels operate service every half hour, and one hotel offers service every 15 minutes during the peak periods. Handling demand during the off peak varies. Most hotels continue to offer service on the half hour and hour, 7 days a week, 24 hours a day. One hotel only offers van service 16 hours a day and reimburses for taxi service when the van is not operating. Summary of Interviews and the Survey Evaluating Existing Taxicab Service Current City policy permits Peninsula Yellow Cab to operate as a sole operator as long as it could meet the needs of the community, comply with the standards set by the Police Department, and realize a reasonable profit. When the agreement was established, City staff believed that a sole operator could provide services to both businesses and residents and maintain a safe fleet. The'City believed that multiple taxicab companies operating in the city might actually reduce service. Taxicab companies would find ways to cut costs in order to maintain profit margins, cut comers on equipment maintenance, respond only to more profitable calls (such as hotels over residents), and encourage kickbacks to hotels in order to get calls. In order to establish that Peninsula Yellow Cab cun'ently meets the standards set forth in the agreement, the Planning Division reviewed the Police Department Memorandum to the City Council, prepared surveys and conducted interviews with the following companies: All hotels located in South San Francisco (survey); Selected businesses in the East of 101 Area (interviews and survey); Conference Center(interview and survey); Peninsula Yellow Cab (interview and survey); and, Bubble Cab Company (telephone interview). -6- Memorandum To: Marty Van Duyn, Director of Economic and Community Development From: Michael Lappen, Senior Planner Re: Analysis of Existing Taxicab Service Date: October 25, 2000' Page 7 Chamber of Commerce Outreach and Meetings Recently, three hotel representatives indicated'to the Chamber of Commerce that private shuttle services and a single taXicab company.alone does not support visitor needs in South San Francisco. At a recent meeting of the SSF Chamber of Commerce, the three hotel representatives that were present did express their concern about unfavorable service with Peninsula Yellow Cab. The representatives indicated that there had been a number of occasions when customers had to wait 30- 45 minutes for a taxi, and that there had been occasions when hotel vans were inoperable and the cab company was unable to transport multipi.e customers to the airport at one time. Survey and lnterview Results In June.2000, the Planning Division mailed twenty surveys to'South San Francisco hotels. The hotel managers were encouraged to fax, mail or email their responses back to the City over a two week period. At the end of the response period, the City received completed surveys from three hotels and the Conference Center. The three hotels indicated that Penin.~ula 'Yellow Cab took too'long to respond to customer calls and recommended that .the City permit them to use another taxicab service. The Planning Division staffalso interviewed representatives from Hines, Genentech and Sugen. The representatives indicate that they not received any complaints from employees regarding Penin.qula Yellow Cab's service. Summary of the Police Department Memorandum The Police Department is responsible for conducting the background investigation. In the December 29, 1999 memorandum to City Council, the Pol-ice Department identified three questions that needed to be addressed. The memorandum includes the following questions and answers: Are the owners of the existing company realizing a significant profit margin? In November 1999, the Finance Department examined Peninsula Cab's records and reported that the profit margin of the company and the executive officers were not unreasonable. Is the existing company keeping its equipment in good condition and adding resources when .necessary? The Police Department examines the Peninsula Yellow Cab fleet once a year. The most recent .evaluation reveals that the vehicles are clean and safe. -7- Memorandum To: Marry Van Duyn, Director of Economic and Community Development From: Michael Lappen, Senior Planner Re: . Analysis of Existing Taxicab Service Date: October 25, 2000 Page 8 Is the existing company meeting the needs of the community? The Police Department memorandum dated December 29, 1999 indicates that they have not received any substantial complaint regarding Peninsula Yellow Cab's service or condition of vehicles. However, the SSF Chamber of Commerce reported that a three hotel managers complained that Peninsula Yellow Cab was not responding to Calls or were unable to take clients to the airport during peak periods. On January 20, 2000, the Chamber hosted a meeting with the hotels to discuss taxicab service. Three hotel representatives attended the meeting and indicated that Peninsula Yellow Cab were responding to ~alls slowlY (between 30 and 45 minutes) and there have been occasions when the hotel vans were inoperable and the cab company was unable to transport multiple customers to the airport at one time. Description of Potential Proposals for New Taxicab Operations In recent discussion with City staff, Bubble Cab Company, Hillsborough Yellow Cab and an independent driver have indicated that they wish to apply for a Certificate of Convenience and Necessity to work in the city. Bubble Cab Company and Hillsborough Yellow Cab propose to operate in South San Francisco. The potential applicants are small taxicab 'companies who currently pick up customers in several East of 101 area hotels. Currently, both companies 'employ less than 5 drivers and have not increased their taxicab and van fleet over the past year. Both representatives have indicated a willingness to provide service to South San Francisco residents. Company Number of Vehicles Bubble Cab Company 1 Hillsborough Yellow Cab 4 Currently, there are several small taxicab companies operating without benefit of a permit in South San Francisco..The operators include Pacifica Yellow Cab, Rainbow Cab Company, Hillsborough Yellow Cab and Bubble Cab. In .all cases, the taxicab drivers use only cell phones rather than a dispatch office, they do not keep a log book, they do not have registered colors with the City, there cars are not subject to Police Department inspections; and they charge fares that are not approved by the City Council. Summary of Impacts from New Taxicab Service The Planning Division investigation shows that the taxicab industry comprises two types~ of operators..Large operators, such as Peninsula Yellow Cab, are full service fn'ms that maintain large Memorandum To: Many Van Duyn, Director of Economic and Community Development From: Michael Lappen, Senior Planner Re: Analysis of Existing Taxicab Service Date: October 25, 2000' 'Page 9 fleets and use a central radio dispatch office. Small independent operators generally range from one to four cars and concentrate their business on big fare trips from the hotels to the airport or San Francisco. General .Plan and Zoning Consistency New taxicab service, provided by both large and small operators, would be consistent with the objectives of the South San Francisco General-Plan and consistent with the City's Municipal Code. The.Economic Development Element of the General Plan calls for the City to develop infrastructure' and services that reinforce the City's competitive advantage. As noted above, the Municipal Code permits a taxicab service.to apply for a certificate _of Convenience and Necessity. Traffic and .Parking To date no large taxicab company has contacted staff or expressed an interest in operating in South San Francisco. The taxicab operators that have expressed interest in applying for the Certificate of NecesSity and Convenience are typically small (one to four cars) or independent companies. By thems61ves, the small, independent taxicab operators would not have a si~gnificant impact on existing traffic 'on city streets and parking in the city. If several taxicab companies are permitted to operate in South San Francisco, the new taxicab providers could potentially cause parking or queuing problems in front of each hotel in the. East of 101 area. Survey of Taxicab RegUlations in Other Jurisdictions South San Francisco Municipal Code According to the Municipal Code, the City Council .shall approve, conditionally approve or deny owners' applications by resolution. The Council can deny any application "if it determines that the proposed operation is undesirable, the public convenience and necessity do not require the proposed service, the vehicles proposed to .be operated is inadequate or.unsafe, the applicant has been convicted of a felony, the proposed color scheme or characteristic insignia will lend to confuse the identification of the vehicles proposed to be operated with those of another owner operating in the city, the owner is not in compliance with the provisions of Section 6.72.090 herein". The Council can also suspend or revoke a license for failure to pay any fees.or business license tax due or judgement for damages arising from the operation of the vehicles. The Code also outlines requirements for driver permits, taximeter requirements, flag requirements, basis for charges, posting of fares, rate schedule, inspection of books and records. The Ordinance does not prohibit operators from granting preferences or priorities, require vehicles .to .display a decal and does not assign penalties for violations, such as f~ing taxicab companies operating in the City without a permit. The Ordinance does not require a radio that permits two-way Memorandum To: Marry Van Duyn, Director of Economic and Community Development From: Michael Lappen, Senior Planner Re: Analysis of Existing Taxicab Service Date: October 25, 2000 Page 10 communication, require taxicab companies to use a dispatch service located in South San Francisco. · Police Department and Planning Division Survey of Taxicab Service in Other Jurisdictions The Police Department surveyed the.cities of Burlingame, San Mateo and Daly City. Currently, 20 licensed cab companies operate in Burlingame, four licensed companies operate in San Mateo, and two licensed companies operate in Daly City. Similar to SSF Police Department requirements, all cities require that cab company drivers submit to a background check and their vehicles must paSs a police inspection. Burlingame is now ticketing operators who pick up customers in the city if they do .not have an appropriate license and do not display an appropriate sticker on the .vehicle. The Police Department survey did not include information that indicates the type ofclient or market area the cab companies served in the other cities. As noted above, the City of South San Francisco Municipal Code does provide for an application process and regulates taxicab Operations. However, Planning staffbelieves, that the Municipal Code woUld need to be revised in order to reduce the potential negative impacts from small taxicab operators. Planning staff has reviewed the municipal codes from several local cities to compare how' taxicab service is regulated and found that the City of Burlingame and the City and County of San Francisco include subsections the municipal code that are designed to reduce conflicts at hotels and ensure that small companies serve both residents and businesses. City of Burlingarne The City of Burlingame Municipal Code contains several sections that regulate taxicab service to 'the licensed companies. The requirements include.using a decal, prohibiting preferences at hotels, and prohibiting drivers that refuse service to "Iow fare" customers. The Municipal Code includes the following subsections:. Markings and decal required. Each taxicab shall display a decal issued by thepolice department for that vehicle. A new decal shall be issued each year at the time of payment of the business license for the vehicle. No person shall alter, remove or transfer the decal to another vehicle. Preferences prohibited. It is unlawful for any person, having the ability or authority to control the · selection of taxicabs for hire at any premises, to solicit a fee or compensation or favor for the purpose of granting preferences or priority rights to any taxi. Refusal of service. It is unlawful for any driver, operating under a permit issued pursuant to the terms of this chapter, to refuse, when the vehicle is in service and not otherwise engaged, to provide 2City of Burlingame Municipal Code. Chapter 6.3'6: Taxicabs -10- Memorandum To: 'Marry Van Duyn, Director of Economic and Community Development From: Michael Lappen, Senior Planner Re: Analysis of Existing Taxicab Service Date: October 25, 2000 Page 11 service to or from any location in the city or to refuse to transport any person who presents himqelf for carriage in a sober and orderly manner and for a iawful purpose. City and County of San Francisco Article 16: Regulations For Motor Vehicles For Hire~, contains several sections that regulate taxicab service to the lieeused companies. San Francisco' s ordinance includes the following subsections that require radio dispatch services and penalties: Radio Required. Commencing 60 days after the effective date of this Article, it shall be unlawful for any taxicab licensed pursuant to this Article to be operated without a radio permitting two-way communication with a taxicab dispatch service hcensed pursuant to this Article. Affiliation with Taxicab Dispatch Service Required. Prior to the issuance of a taxicab permit, every applicant for such apermit shall file with the Police Commlssion a statement, giving the name, address, and phone number of the taxicab dispatch service through which ~cab service is to be made :available to the public pursuant to the permit for which application has been made. Within 60 days of the effective date of this Article, such a statement shall be filed for each permit outstanding on the effective date of this Article. No permit shall be registered to more than one radio-dispatch service affiliation must be given to the Police Commission in writing by the taxicab permittee within 10 days of the effective date thereof. Penalties. 'Every person, firm or corporation holding a taxicab permit pursuant to Section 1120 of the Article who violates or causes to be violated any of the provisions of this ordinance or any regulations adopted pursuant to this ordinance shall be subject to disciplinary action pursuant to Section 1090(a)(ix) of this Article. Division X, Section 1185 of the Ordinance specifies penalties and fines for violations chargeable as Misdemeanors, Infractions and violations of Taxi Commission rules. CONCLUSION: Peninsula Yellow Cab The Planning Division investigation reveals that Peninsula Yellow Cab currently provides adequate service to the city's businesses and residents since it provides the following services: 'Penin.~ula Yellow Cab locates its dispatch office in Downtown South San Francisco and ~City of San Francisco, Article 16: Regulations For Motor Vehicles For Hire -11- Memorandum To: :Marry Van Duyn, Director of Economic and Community Development From: Michael Lappen, Senior Planner Re: Analysis of Existing Taxicab Service Date: October 25, 2000 Page 12 provides service to residents, businesses and hotels. · Penin.qula Yellow Cab is a large operator that has the capability to provide service.to both businesses and residents. Penin.~ula Yellow Cab provides a important community service (such as the Downtown 'Dasher) that is designed to help residents and employees. Over the past year, Penin.mla Yellow Cab has expanded the fleet to include both sedans and vans. The company indicates that it would be able to expand the existing fleet in order to accommodate anticipated demand. Peninsula Yellow Cab has demonstrated a willingness to work closely with the city to improve service. Based on the surveys and interviews, the Planning Division and the Police Department has not received any significant complaints over Penin.mla Yellow Cab's service. However, the comments made by the three hotels that attended the Chamber meeting and the hotels that responded to the survey'/ndicate that the company's response time to the East of 101 Area Could be improved. iSmalLund Independent ~'axicab Operators 'To date, the City has received inquiries from two independent operators. During the investigation, staff found that the small companies currently have licenses with the City of Burlingame. According to City of Burlingame staff, current.zoning does not regulate queuing in front of hotel and many operators will queue in front of the major hotels waiting for customers. Although the queuing problem has not occurred in South San Francisco, the Police Department and Peninsula Yellow Cab indicate that many small operators have made arrangements with hotel managers in South San Francisco.to provide exclusive service. Based on the recent inquiries from small operators, staff is concerned that new operators would have a negative impact on the city services to residents. Staff believes that the new operators would serve only hotels. Based on discussions with the small operators and with other cities (Burlingame and Millbrae), the licensed small operators will not provide adequate service to residential areas and have no.intention to expand their fleet within the next five years. Although queuing is not a problem in South San Francisco, small operators have caused queuing problems at the hotel sites in Burlingame since they do not use a radio dispatch operator (many use a cell phone) and wait for high fare trips. My own experience with these types of firms reinforces that behavior. This summer, I needed to use a taxicab to take me from the ah'port to my home in Millbrae. The operator (Hilltop Cab Company) is licensed in San Francisco. When the driver found out that i was only going to IVfillbrae, he complained that I should have called a friend to pick me up since it would cost him three dollars to return to the airport. He asked me to get out of the ear. I refused and threatened to call the airport authority. When he dropped me off, he refused to remove my baggage. -12- Memorandum To: Mart3, Van Duyn, Director of Economic and Comm .unity Development From: Michael Lappen, Senior Planner Re: Analysis of Existing Taxicab Service Date: October 25, 2000 Page 13 RECOMMENDATION: Planning staff recommends that the City Council maintain the existing pOlicy sUpPorting Peninsula Yellow Cab as the sole taxicab operator and amend the Municipal Code in order to permit only new operators that can provide adequate service to businesses and residents. Planning staffrecommends that the Municipal Code be revised to regulate operations by independent operators. The City should amend the Ordinance by .adding the following requirements: Require radio-controlled dispatch Require that the operator subscribe to a central dispatch office located in South San Francisco Require that the operator provide service to both residents and businesses Require that all licensed operators display an appropriate sticker on each vehicle 'Issue citations to any unlicensed operator who does not display the appropriate sticker and 5s working (picking up customers) in South San Francisco (Currently, BUrlingame is ticketing unlicensed cab operators who pick up customers in the city) Require that the operator post the City-approved fare. -13- CITY OF SOUT~ SAN FRANCISCO INTER-OFFICE MEMORANDUM DATE: July 14, 2004 TO: t EC£IVED Police Chief, RaffaeHi; Assistant City Manager, Van Duyn; ChiefPlarmer, SParkS FROM: City Manager SUBJECT: ATTACItED APPLICATION George Corey submitted this draft application. Please ~o determine if you will need any additional information. George wants to submit a complete application. City Manager -14- Application for Certificate of Public Convenience and Necessity to the Municipality of South San .Francisco By Peninsula Yellow'Cab Acquisition, LLC Peninsula Yellow Cab AcqUisition, LLC ("Peninsula. LLC") is a California limited liability company organized on'January 27, 2004 for the purpose of acquiring the taxi cab business of Peninsula YellOw Cab Company, Inc., which is presently holds a Certificate to operate a taxicab business in the City of South San FranCisco. A copy of the Articles o£OrganiZation of Peninsula LLC aS filed w/th the Secretary of State of California is attached. Pbninsula LLC is an affiliate of Yellow Cab Cooperative, Inc. ("Yellow Cab"), which is the largest taxicab operator in San Francisco and has been in business since 1977. Yellow Cab has not had any Certificate of other permit revoked.. Nathan Dwiri wi/1 be the initial member and manager of Peninsula LLC, but Yellow Cab is providing the funding for the acqUisition and operation of Peninsula Yellow Cab Company's taxicab business by PeninSula LLC · Peninsula LLC plans to offer all shareholders of Yellow Cab the. oppormuity to invest in Peninsula LLC after the acquisition of the business of Peninsula Yellow Cab Company, Inc. is completed. The current officers and directors of Yellow .Cab CooperatiVe, Inc. are as follows:. Nathan Dwiri, Pre. sident Harlan Mellegard, Executive Vice President Nicholas Olson, 1st Vice President Richard Wiener, Treasurer Sheldon Miller, Secretary Neil Jensen, Dh'ector James Gray, Director Eugene Wishnoff, Director Eugene Pan, Director Louis Moss, Director John Nakis, Director James E. Steele, Director ?eter Deme, Director -15- A listing of all current shareholders and members of Yellow Cab,' including all of the officers and directors, showing their residence addresses and telephone numbers is attached. JosePh Gillio, Jr., the President of Peninsula Yellow Cab Company, Inc., will continue to participate in the management of Peninsula Yellow Cab ComPany under a five year agreement after the acquisition by Peninsula LLC. Upon acquiring the business of Peninsula. Yellow Cab Company, Inc., Peninsula LLC will continue to offer demand responsive taxicab service to the residents and visitors of the Municipality of South San Francisco under the business name of Peninsula Yellow Cab Company. We propose to field as many vehicles as the demand for service will require but do not anticipate that this number will exceed (40) forty in the foreseeable future. Should the customer base expand to the point that additional vehicles are indicated we will apply for a modification. A printout of all the vehicles showing their California License numbers and Vehicle Identification Numbers and their maizes models and year of manufacture proposed to continue in service is attached. A copy of the Certificate of Liability Insurance currently in force that expires on April 8, 2005 that meets the standards required by the Municipality of South San Francisco is attached. A representation of the all four sides of the color scheme and characteristic insignia of the proposed vehicles to be operated is attached. Dated: July 9, 2004 I certify under penalty of perjury that the foregoing is true and correct. Nathan Dwiri 2 -16- STATE OF CALIFORNIA ) ) CITY AND cOUNTy OF SAN FRANCISCO ) Subscribed and. sworn (or afirmed) to before me this Nathan Dwiri). day of July, 2004 (by Si~amre Notary Public (Seal) 3 -17- SECRETARY OF STATE I, Kevin Shelley, Secretary of State of the State of California, hereby certify: That the attached transcript of page(s) has been compared with the record on' file in thiS office, of which it purports to be a copy, and that it is 'full, true and'correct.. IN WITNESS WHEREOF, I execute this certificate and affix the Great Seal of the State of California this day of FEB - ~ ~ ecretary of State Form ~E~107 (rev. 1/03) - 18-:v' ~}OSP 03 80510 · A':$71),00 filing.fee must:acoomPany..thiS:form, ' ..... . . ;;;; ?.;..... ' '" *,~.L,_":- .-= :-.:..-. ;..~.:'::'.~ .. . . -.:.: ...-'..¥*..~.. :- . .... .. :'~'}._':. . . . -. '.., *.. .. . n.oeq3orator. :.'..' :.::ii'~-'":-' "' ' :"' · - ~- -. ' .... DATE': .':? "i - ......... :i':' :.~?'"'*'"':~;:-'::' ' · ".'=.:'" APPROVED BY. SECRET~RY OF-STATE SECRETARY OF STATE CERTIFICATE OF STATUS DOMESTIC CORPORATION J, KEVIN SHELLEY, Secretary of State of the State of california, hereby certify: That on the 24TH day of MAy, 1977, YELLOW CAB COOPERATIVE, INC. became incorporated under the laws of the State of California by filing its Articles of Incorporation in this office; and That no record eXists in this office of a certificate of disSolution of said corporation nor of a court order dectadng dissolution thereof, nor of a merger or consolidation which terminated its existence; and That said corporation's corporate powers., rights and privileges are not suspended on the records of this office; and That according to the records of this office, the said corporation is authorized to exercise all its corporate powers, dghts and privileges and is in good legal standing in the State of California; and That no information is 'available in thiS office on the financial condition, business activity or practices of this corporation. IN WITNESS WHEREOF, ! execute this certificate and affix the Great Seal of the State of California this day of June 24, 2004. NP-24 A {REV. 1-03) OSP 03 74700 -21 ~RODua~R THIS CER1]FICATE IS GSUED AS A MA't~R OF INFORMAllON '~', A. Ti~le ~sur~oe ONLY'AND CONFERS' ..... ~G~SUPON~ECER~FICA~ ~ Fi=~ial ~e~ioas HOLDER. THIS CER~ ~ DOES NOT.END, ~ND OR ~890 ~. ~horeline Btv~., 2n~ F ~R THE ~OVE~G= AFFORDED BY ~E POLICIES BELOW' ~o~tain View ~ 94043 ~hon~ = 650-856-2120 Fax: 6~0-8~-3971 INSUR~SAFFORDINGCO~E ~NsUR~R s: Acaep=~e Ind~it~ penimsula Yellow C~ C~any ~ ~u~c; .. 110 Gr~d ~v~nu~ msu~0: South S~ Fr~u=sco CA ~40~0 INsuRER E; COVERAGES -- THE POLICIES OF INSURANCE L'ISTED BELOW HAVE SEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POUCY PERIOD INDICATED NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTFACT OR OTHER DOCUMENT WITH RESPEOT TO WHICH THIS CERTIF cATE ~AY BE I~SUED OR MAY PERTAIN, 3'HE ]NSUR^NCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO AI.L THE TFJ~M$, EXCLUBION,~ AND CONDITIONS OF POLICIES, AGr=-I~J~{3ATE LIMITS SHOWN MAY HAVE BEEN REDUCED aY PAID CLAIMS. , sE.E~L u~a, urr ! HACH occult.cE ~,, ~1,000,0~0 A :~' COMMERCIAL GENERALLIA;ILtTY' C~2114715 07/27/03 07/2.7/04 PREMISES (Fmoc~uml~e}O~'~r'iu~-~lP'u ' P~SO~AL & AOV ~JURY ' OE~U~ AG~E6^~ .S $1,000,000 , GEI~LAGGREGATF- LIMIT APPLII~S PER; PRODUOTS - COMP/~P.A?(~ ! AUTOMOOILE LIABILITY COMBINED SlNGLELIMI¥ ;$ $3;~0 v 000 3~ ANY AUTO ~..~000!~ 8 DO 0dz/08/04 O~'/Oa/O~ ALL OWNED AUTOB BODILY INjURy ~ ~ DCHEDULED AUTOS (p~r pemo~) ~RED AUTOS BODILY ~UURY $ NON-oWNED AUTOS ~' ec~denl) pROPERTY DAMAGE. -- {Per ~dent) G~RAGE LIABILI'rY AUTO ONLY. EAACCIDENT I ANYAUTO OTHER THAN F~ ACC' AUTO ONLY; J DEDUCTIBLE. RETEN'~ON ; wC,51.ATU- OlH- ~ORKER$ COMPENSATION AND , TORY LIMITS ER EMPLOYERS' L.tA~ILITY ANY PROPRIETOR/PARTNEPJEXECUTIVE ~L, EACH ACCIDENT- ~: __ OFFICER~E~BER EXCLUDED? ELL DI~EA~'~ - HA EMPLOYEE I~y~ d~c~be und~ SPEC~L PROVISIONS b~ow ~L, DISEASE -POLICY LI~T OTHER i'~F-.SCRJPllON OF OFF. RATiONS ! LOCATIONS / VEHI~;LES I EXOLUSlONS ADDED I~Y ENDO~I~UENT; SPECIAL Taxi-.ab eoz~paz~' o~eraC£n~ as Peninsul. a Ymllow Oa~' EtC !10 gran~ A~en=s, So=th CER~FICATE HOLDER CANCELLA~ON ACORD 25 (2001 EMCEe-- SHOULD ANY OF THE ABOVE DESCmBED POUCIES BE CANCELLED BEFORE THE EXPIRA~ON DATE THEREDF. TH E ISSULNG INSUREP. WiLL ENDEAVOR TO MAlL 30 DA~ WRR'TEN NOTICE TO TNE CEATIFICATE MOLDER NAMED TD THE LEFT. BUT FNLURE TO DO SO SHALL IMPOSE NO OSUGA'~DN OR LU~BIMTy'OF A~ K~D UPON THE 1~3UREP,. ~P3 AOEN'T~ OR REPRE~ENTA~VE3, __ Paul Batmaie @ AOORD CORPORATION -22- O03130001u0D~,: C:o'~-~ Vie OR. TO WOR~SC~ I USE t~m~°~°v~ I I~a~m ~ I s~c~ I IP~ / V~ ~ ....y~ ~ ~ r I 1 I L : ~R~TO WOR~CHOO~ ~ 004 ~ 2000~ w~ ~ ~&os0 D~VETO WOR~0HOOL IU~ ~U"D~i~MI~ MPLE~U~~ ~.,~o. ov~ .1~ I t~'c~l t"'~ 1.., ~E =~Eo 94080 DRI~ TO ~R~S0HOOL ~E ~ · V~ ~ y~ ., ,~ 15 MIL~ OR O~ FAR~ iC~FY, ETAT~ ZIP ~ ~S~L~OROV~ I t~ BODY GVWlGCW ~ ~!6 ,28~ GVWIGCW CLAS-~ DEDUC~BLES AA FACTOR NEW FARTH,e3T TERM DEOU:'rIBLE~ CLASs DEDU~I'~LES FACTOR C:OST ,,. ~ ,, -. ~..-.,~,.J,~,~rrrs~,~,l,~:e~.~.u, ~.~..~,~c~,..~..~-~.-.~;,:,;;,~--;.~_~%rff~..~,,~:=:=..: 23- ~TAT~ nF SOUTH ~A~ F~CI$CO OA uNDeR 15 MIL~ PL~UR~ MOD~: Cro~ Vic TO wO~CH00L ~ UND~ ~S ~ILES PL~U~ MILES OR OVER FARM BO~Y T~ CA~ ~1007 V.l.m: 1B4~4~4.302~6058: GVWIGG'W, C~n~ ~ ~2o FACTOR DEDUCTIBLE~ v,~ 2PAF~71W61~L15303 % rcL~ CAB ~!4 FACTDR DEDUCTInLm~ AA c~Y,~A~m~ Sou~h San Francisoo OA ~SRE ~ 9& 0 g 0 UND~ lg MI~ P~U~ lS MIL~ O~ DV~ FARM C~.~*T~ South'San Francis=o C~ D~VE TO W~CNOOL USE ~ UND~ lS MIL~ P~URE COVERAGF.~ VJ.N.: 2FAF~? 1WOY~118327 GVWIGCW CLAS~ 415~ FACTOR OEDUC~BL~ '610 (3VW/GCW CI.A~ F~"~OR : DEDUUTIDLE~ AA GITY, STAT~ZIp Sou~h San Fr~n=i=co CA ~s ~;~ 94080 O~E TO WOR~S~OOL ~H u~ 15 MILES ~ ~SU~ 15 MI~ OR O~R FARM GvW/0CW CL~s~ FAGTOR DEDUGTIBLF_9 GVWlGCW CLa~$ GVW/GC'W CLA3S FAGTOR DEDUOTIBI.ES GVW/GCW FACTOR FAGTOR OEO Ub"TllaI..E~ .Tf'IWAGE ? :~' RADlU .~A~¥ ~T AMT I~O~T NEW $ COL} ' COS'THEW ' FARTNEST TERM OF! $ COL[ CO~ N~ COF[ COLL COFL co~ N~ ~OBT N~ FARTHEST TERM COFL COLL', TERM . CITY. WHF. PJE 9 4 0 8 0 ~ D~E TO WOR~SCHOOL ~'~ [ WOR~SC~OOh ~ USE ~ UNDE~ ~5 ~{LEa ~ PL~U~ o~ I { WO~S~H~L ~ ' MECK MODE~ MAKE; - PLEASURE FARM .'.~..~ IJNDER I E MILES ~_..~ VE~ j yEAR { MODEL: BODY vJ.~.,, 2:EJ~Y~? 2W51Xl 67 5B' Gv'W'/~CW ct.ASS FACTOR l ~T DEDUCTIBLES vj.~.: 2M~M74W91X67505 ~ O'NmNIGCW CLA~S FACTOR VLN.' OVW/GDW CLASS I=ACTOR TYPS: D~UCTIBLES Gvw~cw 7 I150P'ADI~ DEDUCTIBLES V.I.H.; URD ' ' ' ' U~lNS F--~ speo F'--i ~ I--'"t COLL fq~P¥ .~ SY~J~/AGE TYPE.' V.I.N.:- { FACTOR } SEAT CP P. ADIU~ TERR GVVVlG,~'W CLASS ale ~RE G~D . . . CHECK I ,UNDR,, ~F ~p ~B~Acv DRNETOWOR~SCH~L~ ~ COM~'L ~,~ ~D'L pIP ~ ,OTO~ ' V~H g ~ ~ BODY' · 1~°"~u Cl:~"'i' NEW $ .___j CO L._J C OFL CDLL COb'T NEW F~JrFHEET TDR~4 COST PAITTNEST TERn $ COLL COS'~ NEW ~_j OOMP SPEC I. I COFL COLL COST NEW __j CoMPL._.j COFL COL& ;J P~THEb"r TEPJ~ ' ' SPEC --.__j COMP C OF L S $ CDLL COST NEW FARTHEST TERM _.J~ I ~.COFL COLL TYPE: { SYM/A~E COb-T N[~tv CITY STATE ZIP I TERR { GV~/r~O~ { C;L,a~S '{ SiC t FACTOR I-~E~,T CPI RADIUS I FARTHEET TF. RM DR/VE TO WORK. r~CHDOL USE WINO - 2 5 - TOTP, L P. ElD Y~LL D,. :CAB C.[i:-OPF R~T!VE iNC,, p P~MiTS N~ ~BliP, E. SS P~DN?. ~P~iT f~ OA~,d4N~ C~ 94610-3~d3 I ADL~ ILAN 156~ HA~[B~E ~RRA~. -548~i~5 T502 ,~,:'n~ DAY, L~t~., CA 94621 _. ~ A,~.D,., AVE ALtl,~lT. ,'~ CA, 74501 CASFRO "~"' ~" 0049 0049 5!0...°~, 56i7 0503 5~3. t ANGB, WiLLF~H S~ FRA,~EI~O. CA, ,.',a¢'~,.,,~, BRuNb? LtVI~ TRUST 37 ~[e~tE['~9 BAY NOVAFO~ CA` 94949 ~m:t.r,~j,-I~: CA 940t0 55609-18:%; t¢.c~-.4,,J T508 ":" 916-?~,-7,':~?, 0505 ..,,,, ,.re,. I A~!ROYO. CARIJ]S 546 M..~¢~S AV~, -26- Y FL L i, [:~ B CO- DP~ RA'~ .'-: VE i A~t~TON PF.i Bh}~ 6085 347-4~t '~.^'~ , - =, & C~ 94403 i BAoTANh~,, o [~,~, CR ~;' 597-0273 07% 0746 ~N ~AEL. CA 94903 BE~A~SH Ai.BERT R:.P P~-AR¥ L. Ak~. ....... ,-, ..... ~o-.~4.,-o~,,z 0709 0707~.~f.~ FIlS I'~R ,.~ T7: C.A ';~4404 ~THEt~: ,~ ..... ~4 3,-A.I-H AVE 415-668-~!g0 )2P? ?9? S.F,,= CA 9~I~l 3 BL. ANFJ-)ARD LEROY C. 0513 BLA~]] ~JG~4IO 2745 H~.~btARK 510 ~-:n~ ~ ,-, BLANE DONA) ~ d. 20 S.~BA MARIA ~.n ~ ....,-.. n~ 0372 P~CIFICA= CA 9~0~ SAN r~AMC.,,.o CA BRA~T. FR~,.KID-, ~.U,°~Ar, D W~.~. I~i) --~qI.1TH MAYFAIR AV?. ..... CA .. OA~ FRA,NCt~O. ('.A 741!7 ......... . ...... 0?59 BRU,.~: t .... .=':c lo,:,, ["~,..H SIREET S,'¥,: FRANC!9]O r~. ~":',I-'-,7:-~ -27- db~Y 9 1904 YEt. L O. ~fi.B ~D-Oi'~ RfiT T. VE TNL, I BYRNES ~IDffAS S, 72i NORTH CRD~ AVE 323-825-0802 0518 5~8 LOS ~EI.ES; C~ ?0.069-'.",303 l CALFjIJ R!C~DRD 40.% CAMi~{ITO C~SSI,.q [~i;?] 535-E:005 07C~: S:-,lt'~ OIEGO CA 9212'2-520'.~ ! CAKCB, ELL Sfi~RT ~9422 VICTORIA ~LIRI 707 ~9-9760 ~104 i ~NALES, ,~:'S ?.'.-.'07 IRVING STREET 415-26,!-02~f 0~7 ~F: CA 941%~ t CARCASE ,]4~iE I73 LONGVtEW DRIVE 7b~,-6067 T525 0D¢5 '~' ~ CA ~40!5-~7~t D~..~ CITY ~, '..'. CARDD~4~. M!GUEL 7,'-~; HAM, o-SH;RE STREET 647-~506 0~:0 ~J'O ,~AN FR~!,,qCO C~ 94110-2129 ! CAR~E EU~,% 1828 ~I~ES.'I DR i-702-324-6~O,I- StDARK.?, ~N 8943~ t CASTiU.D ARDD~ S. 840 HTDDB4 L~ES DR 510-680-4~ 082--:4- 0824 i CESAD,'~. ~B£RT 3020 BR!CE-WFt¥ PMB 412 510 286 76.':~'.. 0767 0767 SAU:~AI:iFD. &q 94965 I CHA,~ ~E.r.x Y, .1604 M~.~ ST~E.~'T %9-3'1'30 0519 I CH.&N FU ~67 33P, D, AVENIE 73i-24% O?.~K~ 940 SA~ FRA~SISCS. CA 94I[6 PAUL ~240 3.RT~ A~E 5&4-93i2 080? i C?.',-~ JIN~,IE Z. -26? DL W!LLARD SiREE1 75.I-95~i6 0--980 0080 SAD~ FRA,%ISCO CA 94118 CHANG dI~J 262 W]LLARD ~% 75J-~06 ~023 ~023 SA~-~ ~¢~C!~0. CA 94118 CHEUNG DANNY 2860 ~l:.DI~A DRIVE 987 0640 ] 0~ )044 SN~ B~O. CA 94066 -28- FRANCISCO CA SAN ¢' , ~AN,.t.,C,.,. CA[.!F 9.1137 * C~J JOSEPHINE ')' WARFORO 925 25~.-%% 0979 r.:,'-,o DRINO:A... CA 94.:.:,;:', RICHiA'~4D Cq i COLLINS RD4ALD 14~6 GRANT ~q~, ¢.~F'T .~A 296,8,~-47 . t245 ]245~,'.:'- FR~.~ ~.~.O. CA · J., ~;]t. LiTS ~'R~T 'O~LY C~rTY CA 9~0!4-i765 ! C~OSC~]N DAVIS ROBOT NIIJ..BRAE Cfi 94030 ~ALD d. ~'~ RD~K ~ t, POR fi A~EL OR ~5::50 ED/INA ~B0i ~C~H~ BLVD QAKLANO. C~ 94602 ~I.Y Ci rY. C~, 94015 DEME PETER BLAKE ~4 THCESITA ' SAN FRANCISCO: CA, "' '- ..-,41.~/ 0628 0628 g~R¥ DESA~ A~'INO ...... '-',' ~c,~. 53] DESAi - m ..... iNuUM~,i i?:,% M1,~v.,~b~B~: DRIV~ -29- bq]LY9 !904 YFi. L [,.. [:AB CO-OPERA! :VE P~LTTS NAb? AD[BESS PHONL PFFYI!T ~- B£LM,']N[~ CA 94002 ~ DOLLD,SSO Ii.,_,,~,~,"""w' 1~$~ NDRW~.K COURT [707] 847 BH]_EVUE AVE-. i' nmm ~NCAN ~? ~LLE'VUE AYE. 584-~64 03!'9. DP~.Y IS-ITT CA, ~I0i4-1.!39 - o,z.:, V~E AV~. 510-5~0-05V? 0812 D.qKLAN~', CA 9¢5!? 1 D.L~S DAVID 7.I i S, ,.~,YSHD~ E..VD ¢11 SAN MATEO. CA 94401 650-347-2767 .J 024 ES~F..~IAN ABRAM !f~-.~; 2~3RD AVE. 66}-4450 0272 Sn~; ~ ,qA~ ..... CO; CA ~,~I~2 0..',72 t DJSTACE ~-,'~8~,,"'. ISic F'ERD.TT~ L~INE [916] ~,~,.,,,&.. CA ..... -30- i904 TEi. L l .... gAB CO-[~P~ R~TIVE iNC. PAGE- 6 HI-HBERS & ~iSROF, IAt~F: P~HiTS NA~.~ AII[~SS PHONE PFRHiT Ooz~. i FAVEi'f,.~ ,~ICHAB. 2~5 AUKIF, TIk'E DRtV~ 510 372' 323.?' 0544 544 KARrlNfiZ gA 9,!553 I FAZELZ HD~IEt~ i.~0~ ODD,STA.Tf B[VD 7~-020] ,'R,~42 542 , ¢,,.tFI ,,., CA t FIkE. ~ViD 52~, J~IIISON 415-587-89~3 0629 062? · SF~ CA 94112 t ~ET, C~ER ANFHt}~.Y ~362 HTB~ SAN FRANCISC8? CA 1 FF~:~. RIC~I&R[~, 200, xP, k_.NS SIR~ ~t,]O)-.,,~,*-;~¢ ,~ .~ 0i64 OAkn. AkEh CA 94610 FOP~ J~.. ,~g ~85-A N~GLEA if:. ~33 214 94}-7055 054i DALLAS. t'X 75211 ~OBS D~NIEL 58 R~CQt~"E'T., ~[IB .r,81Vb 454-7~(.'. ~.,4~, 54.6 S~tN RAFAO. C.q 94¢0i-!065 ! Fbl'.~2 ::IEA'B I~,-.'37 S~JTH H¢~TFAIR AV~. 650-~4-61&3 0988 [:ALY ClfY, CA 94015 i PJ,2-UAY LE~.IE G. 9:.¢ HA~¢,_EQI]IN WAY [707] 41¢<'-.':82.'2,. 0271 37} 8U!:~JN CiTY CA ~45~15-29i7 636 07%.. 79! t GARVIN LA,~Y 5~;' R.r':Ifc-~DI1 A'¢.? 9274935/9Y,'97}00 %587 [,87 ~R,.rE. M, ADEF;~ &q 94P,25 0?88 I G~RtJ TILAHUN 2E~, Y~)C ARTI-r...~R ELVD ¢,3 510 465-I[F/9 0315 03.15 OAKI. A~Q~ CA ?:46t0 ! GFF K'.WiNG HWNFB :-'3¢.'; G[rETT, INGEN 467-75~' 023~ SAN FPJI~!SCO CA ..°-4134-t43~2 .'.0203 5J 0-6~f,-82fE: 0995 94709 i GIRl !NOIR JTT 4 P~F['~L. ROAD 5~0 724-34,'.,',5 0926 0?96 P!NOLE. CA '?4564 G!RMAY TEt:3.E 808 M_[:[;ALL ISTER Si R,S:~ l, %7-&.5.~ } ~ 0?3 -31- GRAHAM !AN &.~7 2ND STREE] F~.SI 707 ~-~-c,r,-,-.., . ~,,A. CA %476 dRAY JAMES E. 2~47 3!S!, AVE]'4UE 681-5647 ~ ..... ~ ~ GI.tEBZON, ~C~"~."ID 7]0 ~P&Rt[[ SAN FRANCISCO, CA I HALUZA. HEP~Aq 2}4 ~J[.I~3 DRIVE 4!5-8~I-026~. 0797 · ~ ~ 74~27 ~$ f. ~,,,]O WIU.I~M ,J. I t9 DAY SI'R.,PE'~) ,.-,~m:,,., 7o~,-0..'..: 0761 u~,~. SAN: RANCI~CO: CA 7413[ t HARDIffDJlAN. RDB~;I !i~4 mlF, ~R STF:EET ~603 415-~]-~565 0%9 SAN FR, A,NCISCO~ CA 94109 ..... , ', o pN..~ 650 t H:~SHA;~ KAMA!. .',70,. V~DES k~Y .......... 08-92 i ~F:SDa!.,~,.~4"' '~'m" " ,JP.E!.. 263O_ BOLl[iH F;T r., ',~ -h-RANC~DZ.O, CA -32- JULYS' ]?04 YFt. L L:.. .F:AB CO-[~F'FR~TiYE INC, PAGE- '-~ HILL ROB'~F 'lOP., ~ MARIA AV~ 0616 n%'[.qll~DrJ BEACH CA BUSH BTR~.T ~10 776-097~, FRAN,.I,..C~ D~ Q'~JOQ-62',:':~ t HDFF...qCHILD F R~PH ~3Y,., CHLIR~,H STR,~T 5bn-ns?,~ ,, ~_. ' H-' P~FF~DJRG .... ~ ..... ;, n~, ~nDD~,.,~... GEORGE i34 ~DD BTR~.~ET 650-5.~3-%4~. , ~4'J,~ ~ACH. CA P. 40:B8 ~L~ WtL!_!AH · 6C~ PD3T S~.i ~412 774-~62-BF~ 0711 07.!] S~¢ FRA~CI~O CA 94'[~ t ~3~AP, D dOl~J 424 EELtS Si'R~T ~t02 40? 048~ ~g SAN FRA~C!SCO. CA°"In~ i HUDSODi ,'W,A,.,. PD ~[tX 420362 408-,:.4-~,,6,:.-,. I277 SA;'4 FRANCIF, CD~ F,A SAN ~A~CIS. O] CA 7o/"'" MFA~&ISTER, STRUT ~,~ .=.on-.,,., ~ ,.~,,.,,, 0~" ' U, &-,'-"~ ~ .~£.~ F'C-,rqq~CISCO. CA 94102-3t4~ -33- d~=yo,. !904 T,.~[.L.u.., E:~,D.. CO-OP,~ RF~TIUE. il'ii';, ~N FR~-NEISCO CA ~41~7-t414 9~ } ~, , .--,,N:'~.l"'ra m...., VI~ CA . ~C %-44 SAN ~AN~,,~O ...... ! J,~% & NORMA LABRADOR LV&~ TRB382 ~GARtl4 PLACE 797-6480 FF~O~. CA .g45~ I 'P~ ALB~T ~,o ..... ~., NAV&~Rt]~E ,~,¥ 510 67.t-9J08 0573 O~O]~: ~ ?~,518-28~ · ",o~' · ..','~ ..... -...,:.,.,, 0567 EDWIN H. i ~,~ ]LDUIE 21~8 - 25~14 Akr~NLE ~]-2~% ]-o7i · ,_iL !7'3_- .-. KEE~L DEWAY~ F. 634 BRtB~TON ROAD 01~ PACIFtCA, CA .94044 i, ~F..L~A ~o-']SAHAiE 7~7 ,,,'~.. A~ &50-2m~-~',-'',~-~ ..., .~,., 07t0 S¢¢~ ~TEO., CA ~03 i I~SS~R MAX ~] LYNBRDDK DRI~ 432-6%0 T577 PI,,~R~ CA ............ ~ ..... '.:'~ / ~ KI~£~ }-.'AR A .... [;A~DN RD SE-D'.'I IN WA ....... ' " ?" ~.23 WILD4~DDD TRAIL ....... 04?3 i KLAIF ,'AR, ~,¢ S, f47,4)._,~, ~' q VA v, ~-f,, KE~NEPH l,~ D~4NL, P],...R,,. 0132 WAI}i!~ CRE~K.. ~ o/_,:o,.. 0570 0~&7/0568/0567 07~0 ~ O.!: 32/0] 69 -34- JLL'f ? ~,0~ YFLL [, [;AB CD-DP[ RAT i VE ! N[:. ! KRAH~.' ~TANFO?~ K~ONu. TONY ! LAM MAN CkbNG ! LAH: TD LAD ' Ap: TI)'iDTH¥ GARRY ~ LAU HANLEY 2306 E:&~,ILLD BT SAN ,-%akl~I~D, CA 9{12! 2436 L)BE~Y SDUFH SAN FRANCIS~, CA 94080 650-~8-4473 do~ 0,%3 t LEE ~qRL 9~7 P S~EET ,_,O~.g 262-20.~0 BRiB}EFi]RT~ NE 6~36 "-' LEE dUNG dAE ..... .-. SELNI GRADE ~I0 ¢,,',. ~ 063 :1063 RIC,'.qMJNO, CA 94896 t LE~ANN ~WAR[~ D= r~ ~4134 ~l'lX :~0 360 765 4502 ~S"2= ,~E:;, tv, '%'376 QU[I..,,:NE WA 644 ~,[~$~E SIRET ,m~qN FRa~ISCQ, CA 9{I12 3J4 RAPPAN~8~O{ CDLRI tqANUll ~ c C,q ?4526 5t0 735-730& (¢,t8 · o ..... ',.: 0986 SAN FRANCIbT~O? L'A 94116 ""~ ~2-6T/9 T590 . ~n SAN FRA~iFTCO CA o.~In', ~',, 670 ~' ~ ,'.~S~ A~I'EE -~-~ ...... ~',.- 0819 ' SA&-~ FRANC!~%CO? CA 94121 : ~ .,~ L.,',:'.zN STkEET f. 50J SA}~ v~ANCIS,CQ. CA 94109 -35- ~LY ? ]904 YFLL t, CAB .CO-QPF k(1TiVE iNC, PFRIIil ~ ~ b..M~o R[IB~! ~20 iAYLOR ~T ~604 ~J-744.8 no~,-', ,:,0 I L~IS O~HILI_ 2!74 4-?TH A~S' 763-&937 05?5 ' ~ ~7 CRE~DN CIRCLE 0950 1 I.INE~KY MIKHNIL _ 510 814-8878 0950 ~,~EDA= ~q 94502 ~ I. IP~IN~ JOEL u. ~S I[e~GV!B~ CRt% 9~4-~31 073! 73i · ~ 'mf~ CA 9~015-!050 ,.A~c VISTA ~:%. Oz7o i LtU,. PARK 43 ~ .... ~,~-,:n o~_c.~.,o ..... 0273 LOOk' iMIti! ~OW !NI.O --I iSTH A~kEIE 564%!91 T594 594 i !_OUiE LIP 706 27TH A~ 83!-0:00 i119 ~ L,Ut £u~, o: ~ HDLL.L1WA¥ AVE :~: '~ t '" 722 ~F~t(CIS P_,IR~LE ~:n-~.m~_~.-~. ,n~t in.,.~ FJ]UFH' S~-~ '-~- .... ~..n CA 9~80 ! ~P,~ ]P~qO CAR[ ........... ~ ..... r~,=~.=.,,~_.~., ~: ~i '~:.~_,~.~e 0?% ocrr'6 ,,,N FR~]CISCO CA 9al~ 5t0-428-2097 0560 485-0?97 0201 -36- YEL. L~. [:AB CD-DPERATIVE !~C. J,z/ Pi[~ STREET ~ SAN, ~,~!~ PA 9410%45:~8 405 14t:h S~T, ~IT,~ NOlO 510-.828-.g4)0 nma ! MARJAI ADCFAL .~20~ t A~rFDN STRUT 242-0972 ~274. SAN rRA~.~£O, CA 94122 MARTDEZ: PAMELA ~,0,,, WI!.LB( C. DUR, T 4~5-892-0540 ~220 ~220 ~VAFO. CA 9494~ ,,~T..I~ BUFO~ ., ~.~,~ SLDPE BT, (707) 'pm-~o~':, ,,~ PEFAU~IA CA 94952 MALP~, G~Y 38~: A 24TH STR~. 41~-!9~9 0~87 SF. CA 94114 ~tEI~ A~JJ 35 PD)~IA DR #~7 0737 07~7 ~£~C~Ru .HARLAD~ '04 DARTFDRD '' ' ~'fR~ k~:~," "cq Ca MESSMORE BARBARA 4~ V~.LEJD STRUT 5At~ FRARCI,~_.. CA 9~iS?. : .... ~.. P.:RUI'~E JCff:' HATB WODD AVE SAN FR~rT~ ~ .............. t.. 94117: ~3-2056 ]i!7 .... PACIFICA '~" .... '~ T609 5~I FA~qRCI.~.n CA 94t~7 0700 -37- DiE B~LTTB,~"T "' DOURT R92-!8~0 .... T6©2 ,",~'.:'.., ~V~O CA, ~4947-2%I ~ MORE~ ,~QUIN V. 349 E, a. TH AVk ~']-0500 07~: -~'"' SAN NAN~O CA 94403-3332 MUIR liR!VF FR/¥~.iSCO CA 941~-I018 06]3/0]47 D.J'%SORD C~ 94-518 ~ ,,u,,.~. ]20! 1,.TH, ,,. 4!5-68]-1676 .?24 SF, -CA 94i~ I NJR. PHT ~ ....... $~ F,,cDL'O~ ,'f7 COURT ~4 3??-0282 MB.LBRAE= CA ~030 NICHOLS NiCK 27.,o [{I1 DEN · , L'~ i ~ .... ~ ......... 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S]]~-Z] ~ :~-~ %97 Uehic!e Printou~ ~,,,., C~b ;N~taber ~E~INSUL~ YELLON C~8 Fro~ C~ 0000 To Cab 9999 C~ Licens~ .... gI~ .......... )~ ........ ~ode) - ~o Yr Own,r ~e~g I-' - ' .... n~¥)C~ - 0008 7C0~455 2F~FP-71~-IXX-227316 0010 7C0t026 0016 7C01875 0018 7C0t405 0020. 7COi(06 00~ 7F27775 0026 '7F28247 00~5 6K71508 i003 i234567 2F~FP-71~-7Y~-I1B289 2F~FP-71~-SY~-153049 2FAFP-7Ik-6Yi-153034 2FAFP-71~-7¥)-!52B32 2F~FP-72731~-1~76!O 2F~FF-72~-719-135551 2FAFP-72~-41~-I78437 2~EF)-74~-519-675059 ~EF)-74~-71X-653~f7 2FflFP-72~-SZ)-i675B9 ID46~-243-23~-2~990(. ~007 7~2t510 1B66?-443-O2B-G05839 02 9~ 99.q. 9 I2 90 9~99 07 O0 q°5~ 07 O0 995~ 07 O0 9999 07 O0 999.9 02 O0 9959 05 O0 9559 05 O0 .9999 05 0! 9599 12 01 9995 O~ 01 9595 ' .0~ ^~ qQq° 12 02 599.q. ~iiea~e 8pdate ....Shie)u ................ 05/0i/04 22~604 0~/06/07 0~,0~/0. 139190 0~/04/16 0~/0!/0( 168958 04/04/t6 05/0!/0~ 160767 04/04/16 -~vi. Iab654 04/04/i6 OS/O1/O~ 133741 04:04::6 05101/04 22495( 0(104116 05!0Ii0~ 269703 0410~/16 -06/01/04 !70000 04/07/02 06/01/0~ 22000~ 04/07'/07 06/0i/04 220000 04/07/07 06/0!/0~ 230000 0~/07/07 06/0I/0( 17S000 04/07/06 05/01/04 24B0~ 0~/04/i6 0(/i6/0( 2305~i 04/05/0i 05/0i/04 157200 04/05/01 0~/0i/04 211203 04/0~/0! -45- CONSULTING AGREEMENT THIS 'AGREEMENT is made 'as of June 1, 2004, by and between Joseph Gillio (" Consultant") and Peninsula Yellow Cab Acquisition Company, LLC, a California limited liability company (hereinafter referred to as the "Company"). WHEREAS, the Company has purchased the assets of Peninsula Yellow Cab Company, a corporation of which Consultant was a shareholder and officer, pursuant to an Asset Purchase Agreement; WHEREAS, Consultant has agreed to consult with the Company on an as-needed basis to assure a smooth transition; and NOW, THEREFoP,.E, the parties hereby agree as follows: l. Engagement of Consultant. The Company hereby engages Consultant as a consultant to the Company commencing on the date of this Agreement. Consultant agrees to such engagement on the terms and conditions herein set forth and agrees to de-vote his good faith efforts to kis duties under this Agreement and to perform such duties diligently and efficiently and in'accordance with the directions of the Company. A. Consultant shall be engaged as a consultant relative to all aspects, of the Company's business. Without limiting the generalit3, of the preceding sentence, Consultant shall provide the Company with advice with regard to the Company's licensing and relationships with the - municipalities that regulate its operations (including issuing license required to operate the Company's business); marketing the Company's services and idenfificafi6n of prospective new accounts; customer relations; and collections of accounts ~eceivable. B. During the term of this Agreement, Consultant will assist and consult with the Company on a pan-time basis when and as requested by the Company at the Company's offices in South San Francisco, California, or on such other locations are requested by the Companyl. Consultant shall only be required to provide consulting services to the Company on weekdays during. regular business hours. This Agreement shall not be construed'as preventing Consultant from pursuing other occupations, subject to the limitations of thi~ Agreement and subject to the terms of the Asset Purchase Agreement. C. Compensation. Consultant's fee for the services rendered hereunder shall be $40,000 per year payable in installments not less frequently than.monthly during the term of this Agreement. 2. Personnel Policies. Consultant shall conduct himself at all tirnes in abusinesslike and professional manner and shall represent the Company in all respects as complies with good business and ethical practices. Co~sulting Agr:nn:m ¥161 v, 5.4 -46- 3. Relationship of Parties. Consultant is, and shall be, an independent contractor of the Company~ and not an employee. This Agrzement shall not create a partnership or joint venture or constitute either party as the agent of the other party. Consultant shall have no authority to bind the Company to any contract, agreement, or other obligation, and shall not hold himself'out as an officer, employee, or agent of the Company. 4. Method of Performing Services. Consultant shall have sole and exclusive responsibility and authority for: determining his regularplace of business; determining kis business hours (subject to the need to coordinate with the business hours maintained by the Company); determining methods of perfOrming services subject to Section 2; hiring (at Consultant's expense) such employees or independent contractors as Consultant may require to assist Consultant in performing services under this Agreement; and maintaining complete and accurate records of work performed and expenses incurred. A. The Company shall not be obligated to reimburse the COnsultant for any "overhead expenses". For the purpose of this Agreement, "overhead expenses" shallinclude all costs incurred by Consultant in the conduct of his business, including, but not limited to the following: the cost and expense of office rent; supplies; equipment; insurance premiums; computer on-line services; wages, salaries and other benefits payable to Consultant,s employees and independent contractors; legal fees; accounting and bookkeeping fees; invoice preparation time or expense; utilities; parking fees (unless incurred in connection With travel approved by the Company); 'automobile .use and fuel consumption (other than the reimbursable amount for travel at the Company's .request); postage; insurance; taxes of any kind, including, but not limited tO, income taxes, payroll taxes, FICA, SDI, rea/property ia.xes and assessments, personal property taxes, sales taxes and use taxes; licensing fees; and similar expenses. ' B. Because Consultant is being engaged as an independent contractor ~nd not as' an employee of the Company, it is the contemplation of the Company and Consultant that payments io Consultant under this Agreement w/Ii not be subject to withholdings for income tax, FICA, SD/or similar purposes.. However, the Company may withhold such amounts if it is required to do so under federal, state or local laws and regulations. Consultant shall provide the Company with Consultant's tax"payer identification number. 5. _Travel Expenses. Consultant shall not be reimbursed for travel expenses unless such travel was approved in advance by the Company and Consultant documents said expenses in the mariner generally required by the Company under its policies and procedures, and in any event, the manner required to meet applicable regulations of the Internal Revenue Service relating to the deductibility of such expenses. 6. .Termination. This Agreement w/Il terminate upon the earliest of: (a) the death or .disability of Consultant; (b) upon notice from the Company fix the event of any breach of any of Consultant's representations, warranties, covenants or agreements contained in the Asset Purchase Agreement; or (e) one year from the date of th.is Agreement, subject to renewal on a month-to-month basis at the option of the Company. The Company may renew this Agreement for such additional one month periods by written notice given not less than five (5) days prior to the expiration of the Con~'ulfin § A~r~nncnt ¥] 6 ] 85.,t -47- term of this Agreement, or any renewal period. Consultant shall be deemed disabled if he is unable to perform his duties under this Agreement for 60 consecutive days or any period ofg0 days during any ] g0 day period.. 7. Work 'ProducL Notes~ and Records, All memoranda, notes, records and other documents created, developed, compiled, or used by Consultant or made available to him during~he term of this Agreement concerning or relative to the business of the Company, including, without limitation, alt customer data, billing information, service data, and other technical material of the Company, is and shall be the Company's property, shall be delivered to the Company upon termination (for whatever reason) of this Agreement, and' shall not be used for any reason or otherwise appropriated by Consultant after said termination. 8. Governing Law. This Agreement shall be construed and governed in all respects by the laws of the State of California. ' 9. Successors and Assicns. The provisions of this Agreement shall inure to the benefit of, and be binding upon, the respective successors, .assigns, heirs, executors and administrators of the Company and Consultant; provided, that Consultant may not assign to any tlfird party Consultant's rights or obligations under this Agreement. 10. Entire Agreement; Amendment. This Agreement Constitutes the full and entire 'understanding and agreement among the parties with regard to the subject matter of this Agreement This Agreement and any term o£this Agreement may be amended, waived, discharged or termimtcd only by a written instrument signed by the parties. 1 !. Notices, etc. All notices and other communications required or permittedio be given pursuant to this Agreement shall be in writing and shall be deemed given four (4) days after being deposited in the United States mail, certified postage prepaid, return receipt requested, or when delivered by hand, by messenger or express air freight service, in any case addressed as follows: To the company: Peninsula Yellow Cab Acquisition Company, LLC 1200 Mississippi Street San Francisco, California 94t 07 To Consultant:. .Joseph Gillio 110 Grand A~enue South San Francisco, California 94080 Any party ma), change its address for the purpose of iNs Section 11, ] 1 by.giving notice to each other party in accordance with this Section l 1, 11. 12. Delays and Omissions. No delay or omission to exercise any right, power, or remedy accruing to any party to this Agreement, upon any breach or default of any other party under ins Agreement, shall impair any such right, power, or remedy of such party nor shall i~ be construed to be a waiver of, or an acquiescence in, any such breach or default or any similar breach or default Consulting Agreement 3 Y] fil B5.4 -48- 'thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, perm/t, consent, or approval of any kind or character on the part.of any party of any. breach or default under this Agreement, or any waiver on the part of any party o£any provisions or conditions o£this Agreemem, must be made in writing, as provided in Section 10, and shall be effective only to the extent specifically set forthin such writing. All remedies either under this Agreement or by law and otherwise afforded to any party shall be cumulative and not alternative. 13. Titles and Subtitles. The titles or headings of the Sections of this Agreement are for convenience of reference only and are not to be considered in construing th_is Agreement. 14. SeverabiliW. I£ one or more provisions of this Agreement are held to be unenforceable under applicable taw, each such unenforceable provision shall be excluded from this Agreement and the balance of this Agreement shall be interpreted as if each such unenforceable provision were so excluded, and the balance of this Agreement as so interpreted shall be enforceable in accordance x~th its terms. 15. Count. This Agreemem may be executed in any number of counterparts, each of which shall be an or/gNa/, but all of which together sha/1 constitute one insmmaent. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as o£the date fn-st above whtten. COMPANY: CONSULTANT: PENINSI~A YELLOW CAB COMPANY, LLC Califoraia I.imited liabii/ry company Joseph Gi/lio Con~ul~ng A grime-n! 4 'i'16185.4 -49- RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION APPROVING AN APPLICATION FROM PENINSULA YELLOW CAB FOR A CERTIFICATE OF NECESSITY WHEREAS, staff recommends approval of an application for a "Certificate of Convenience and Necessity" to Nathan Dwiri, representing Peninsula Yellow Cab Company and Peninsula LLC, in accordance with the Municipal Code ( Chapter 6.72, Vehicle For Hire Regulated.). NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco approves an application from Peninsula Yellow Cab for a Certificate of Necessity. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a meeting held on the __ day of 2004 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk S:\Current Reso's\9-22-04yellow.cab.res. DOC Staff AGENDA ITEM #7 DATE: TO: FROM: SUBJECT: September 22, 2004 Honorable Mayor and City Council Mark Raffaelli, Chief of Police BUDGET AMENDMENT - LOCAL LAW ENFORCEMENT BLOCK GRANTS PROGRAM RECOMMENDATION It is recommended that City Council adopt the attached Resolution to amend the Police Department's current budget to include the $11,723 the Department will receive from the United States Department of Justice, Bureau of Justice Assistance. BACKGROUND/DISCUSSION The Omnibus FY 1996 Appropriations Act, Public Law 104-134, authorized the Director of the Bureau of Justice Assistance (BJA) to make funds available to units of local government under the Local Law Enforcement Block Grants Program (LLEBG). The purpose of the LLEBG Program is to reduce crime and improve public safety. These funds have been made available again for this year. Use of the LLEBG Program funds are clear and jurisdictions who are awarded the funds must meet a 10% Matching Funds Requirement. The funding category in "law enforcement support" lists hiring, training, overtime and equipment. An additional requirement of the LLEBG Program is to assemble an advisory board, whose membership includes representatives of groups with a recognized interest in criminal justice. As a result, the advisory board consisting of representation from the Police Department, Prosecutor's Office, Probation Department, School District and a local nonprofit group, met on September 9, 2004 to review the application for funding and to make non-binding recommendations to the Police Department for the use of funds received under this program. At that meeting the advisory board affirmed the Department's recommendation: the LLEBG Program funds would be used for overtime to continue our gang suppression efforts. To track expenditures, a special project referencing number will be established for the Local Law Enforcement Block Grant (LLEBG) Program Fund. Overtime: $11,723. Matching Funds: $1,303. The matching funds will be transferred from our existing Patrol Overtime account #10-12720-4004 to the newly established special project referencing account. The grant allows us a two-year period to expend all funds. Therefore, any funds not used this year will be carried over to next year's budget. Staff Report Subject: Budget Amendment - LLEBG Page 2 FUNDING The~are no general fund obligations; the matching funds will be transferred from an existing dep/artmej:~al bud~t afi~unt. · Mark Raffael'l'i'/ Chief of Police Attachment: Resolution Approved: Barry M. Nagel City Manager RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION APPROVING AN AMENDMENT TO THE 2004/2005 OPERATING BUDGET TO INCLUDE THE $11,723 GRANT FROM THE UNITED STATES DEPARTMENT OF JUSTICE, BUREAU OF JUSTICE ASSISTANCE TO THE SOUTH SAN FRANCISCO POLICE DEPARTMENT WHEREAS, the Onmibus Fiscal Year 1996 Appropriations Act, (Public Law 104-134), authorized the Director of the Bureau of Justice Assistance (BJA) to make funds available to units of local government under the Local Law Enforcement Block Grants Program; and WHEREAS, the purpose of the LLEBG Program is to reduce crime and improve public safety; and WHEREAS, jurisdictions that are awarded the funds must meet a 10% matching funds requirement; and WHEREAS, the matching funds will be transferred from an existing departmental budget account. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council hereby approves an amendment to the 2004/2005 Operating Budget to include $11,723 grant received fi:om the United States Department of Justice, Bureau of Justice Assistance to the South San Francisco Police Department. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a meeting held on the day of ,2004 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: F:Xfile cabinet\Current Reso's\9-121ocal.law.enforcement.block.grant.res.doc City Clerk Staff_ e_p o r t AGENDA ITEM DATE: September 22, 2004 TO: Honorable Mayor and City Council FROM: Library Director SUBJECT: RESOLUTION AUTHORIZING ACCEPTANCE OF A LIBRARY SERVICES AND TECHNOLOGY ACT (LSTA) GRANT ESTIMATED IN THE AMOUNT OF $2,300 AND AMENDING THE LIBRARY DEPARTMENT'S 2004/2005 OPERATING BUDGET. #8 RECOMMENDATIONS It is recommended the City Council approve a resolution accepting a Library Services and Technology Act (LSTA) grant providing tuition reimbursement in the estimated amount of $2,300, amend the Library Department's 2004/2005 operating budget and direct staffto adjust this initial estimate when the grant award has been finalized. BACKGROUND The Library has been awarded a federal Library Services and Technology Act (LSTA) grant from the California State Library in the estimated amount of $2,300 to provide tuition reimbursement for Library staff member Ellen Smith to attend graduate school in Library Science during the Summer 2004, Fall 2004 and Spring 2005 semesters. Ellen is the Circulation Supervisor at West Orange Library and is enrolled in the San Jose State University School of Library & Information Science Master's program. The award amount will be finalized once tuition rates for Fall and Spring semesters have been set by the University. FUNDING: These grant funds will augment the Library Department' s budget for fiscal year 2004/2005. Funds not expended at the end of fiscal year 2004/2005 will be carried over into fiscal year 2005/2006. Receipt of these funds does not commit the City to ongoing funding after the close of the grant cycles., By: Valerie Sommer Library Director /Barry M. Nag6t City Manager Attachments: Resolution RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION ACCEPTING A LIBRARY SERVICES AND TECHNOLOGY ACT (LSTA) GRANT PROVIDING TUITION REIMBURSEMENT IN THE ESTIMATED AMOUNT OF $2,300 AND AMENDING THE LIBRARY DEPARTMENT'S 2004/2005 OPERATING BUDGET AND DIRECTING STAFF TO ADJUST THIS INITIAL ESTIMATE WHEN THE GRANT AWARD HAS BEEN FINALIZED WHEREAS, staff recommends acceptance of a Library Services and Technology Act (LSTA) Grant providing tuition reimbursement in the estimated amount of $2,300 and amends the Library Department's 2004/2005 Operating Budget and directs staff to adjust the initial estimate when the grant award has been finalized; and WHEREAS, these grant funds will augment the Library Department's budget for fiscal year 2004/2005. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council hereby accepts a Library Services and Technology Act (LSTA) Grant providing tuition reimbursement in the estimated amount of $2,300 and amends the Library Department's 2004/2005 Operating Budget and directs staff to adjust this initial estimate when the grant award has been finalized. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a meeting held on the __ day of ., 2004 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk S :\Current Reso's\9 -22 -04library. grant. LSTA .res. doc StaffReport AGENDA ITEM #9 DATE: TO: FROM: SUBJECT: September 22, 2004 Honorable Mayor and City Council Library Director RESOLUTION AUTHORIZING THE ACCEPTANCE OF FUNDING IN THE AMOUNT OF $22,000 FROM THE CALIFORNIA STATE LIBRARY, THE DALY CITY/COLMA ROTARY CLUB AND KAISER PERMANENTE MEDICAL CENTER TO SUPPORT PROJECT READ SERVICES AND AMENDING THE LIBRARY DEPARTMENT'S 2004/2005 OPERATING BUDGET. RECOMMENDATIONS It is recommended that the City Council approve a resolution accepting funding in the amount of $22,000 from the California. State Library, the Daly City/Colma Rotary Club and Kaiser Permanente Medical Center to support project Read services, and amend the Library Department's operating budget for fiscal year 2004/2005. BACKGROUND Project Read has been awarded funding from the California State Library totaling $20,000 as part of the annual California Library and Literacy Services (CLLS) allotment to support the Families for Literacy (FFL) and Learning Wheels projects. FFL helps parents read to their children, thus breaking the cycle of illiteracy. Learning Wheels, a preschool on wheels, serves low-income, low- literacy families in South San Francisco as well as North San Mateo County. Learning Wheels provides interactive, educational games, free story times, free books, and a state-of-the-art computer station to children who do not usually receive such services. Regular Learning Wheels visits include several local home day care sites, the South San Francisco Health Center, the Health Services Agency Touchpoints group at Grand Avenue Library, Transitional Kindergarten programs at local elementary schools and the South San Francisco HeadStart preschool program. Project Read has been awarded $1,000 each from the Daly City/Colma Rotary Club and Kaiser Permanente Medical Center. The Daly City/Colma Rotary Club donation will support Project Read's successful book club, which has been in existence for four years. The money will be used to purchase books. The Kaiser donation is part of an ongoing partnership between Kaiser Permanente and Project Read and will be used to provide homework help to children of Project Read participants. Staff Report Subject: Receipt of $22,000 in grant funding to support Project Read Page 2 FUNDING: Grant funds received in fiscal year 2004/2005 will be used to amend the Library Department's current budget. Funds not expended by the end of fiscal year 2004/2005 will be carried over into fiscal year 2005/2006. Receipt of these funds does not commit the City to ongoing support after the close of the funding cycles. By: Valerie Sommer Library Director City Manager Attachment: Resolution RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION ACCEPTING GRANT FUNDING IN THE AMOUNT OF $22,000 FROM THE CALIFORNIA STATE LIBRARY, THE DALY CITY/COLMA ROTARY CLUB AND KAISER PERMANENTE MEDICAL CENTER TO SUPPORT PROJECT READ SERVICES AND AMENDING THE 2004/2005 OPERATING BUDGET WHEREAS, staff recommends acceptance of grant funding in the amount of $22,000 from the California State Library, the Daly City/Colma Rotary Club and Kaiser Permanente Medical Center to support Project Read services. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council hereby authorizes acceptance of grant funding in the amount of $22,000 from the California State Library, the Daly City/Colma Rotary Club and Kaiser Permanente Medical Center to support Project Read services and amends the 2004/2005 Operating Budget to add $22,000 to the Library Department's budget. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a meeting held on the __ day of ,2004 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk S:\Current Reso's\9-22-041ibrary.grant.res.doc Staff Report AGENDA ITEM #10 DATE: TO: FROM: SUBJECT: September 22, 2004 The Honorable Mayor and City Council Director of Public Works EMERGENCY GENERATOR REPLACEMENT & UPGRADE ENGINEERiNG FI~E PB-03-20, PROJECT NO. 51-13232-0224 RECOMMENDATION: It is recommended that City Council adopt a resolution awarding the installation contract for the Emergency Generator Replacement & Upgrade to O'Keeffe Mechanical Co., Inc. of San Francisco, California, in the amount of $ 34,400.00 as the lowest responsible bidder. BA CKGROUND/DI S CUS SI ON: This project will replace the existing 50 KW diesel generator at the Corporation Yard with a new 135 KW diesel generator that is being procured separately by the City. The new 135 KW generator is capable of providing power for the entire Corporation Yard, which includes the garage and is critical in the event of a disaster. The current unit only provides for emergency lighting. The existing 50 KW generator will be relocated to Fire Station 64 to replace an obsolete 20 KW gasoline generator. A Request for Proposals (RFP) was prepared for this project and was advertised. The city received two responses to the RFP. The following proposals were received: CONTRACTOR BID AMOUNT O'Keeffe Mechanical Co., Inc San Francisco, CA $34,400.00 Bayside Equipment Co. Redwood City, CA $42,625.00 Engineer's Estimate $40,000.00 Staff Report TO: RE: DATE: The Honorable Mayor and City Council Emergency Generator Replacement & Upgrade September 22, 2004 PAGE: 2 of 2 Staff has reviewed the qualifications and references of the low bidder and found them to be satisfactory. Staff recommends that the contract be awarded to O'Keeffe Mechanical Co., Inc. in the amount of $34,400.00. The following is a breakdown of the project budget: Cost of City Procured Generator Installation Contingencies (8%) Installation Inspection/Administration $34,600.00 $34,400.O0 $ 3,000.00 $ 3,000.00 Total $75,000.00 Construction is expected to start in early November 2004 and be completed by the end of November 2004. FUNDING: This project is included in the City of South San Francisco's 2004-2005 Capital Improvement Program (CIP/51-13232-0224) in the amount of $96,000.00. B y :~~ pproved By~.. _~~c~/ /~ Barry M. Nagel Terry White ~ Director of Public Works City Manager ATTACHMENTS: Resolution RTH/TW G:\PROJECTS\ PB-03-20/GeneratorReplacement \awardstaffreport.doc RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AWARDING A CONSTRUCTION CONT1LSCT TO O'KEEFFE MECHANICAL CO., INC. IN AN AMOUNT NOT TO EXCEED $34,44)0 FOR THE P, EPLACEMENT AND UPGRADE OF AN EMERGENCY GENERATOR WHEREAS, staff recommends awarding a construction contract to the lowest responsible bidder, O'Keeffe Mechanical Co., Inc. in an amount not to exceed $34,400 for the replacement and upgrade of an emergency generator; and WHEREAS, this project is include~l in the City of South San Francisco's 2004/2005 Capital Improvement Program budget. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council hereby awards a construction contract to the lowest responsible bidder, O'Keeffe Mechanical Co., Inc. in an amount not to exceed $34,400 for the replacement and upgrade of an emergency generator. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a meeting held on the __ day of ,2004 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: S:\Current Reso's\9-22-040'Kee fee.mechanical.contruction.c°ntract'res'd°c City Clerk StaffReport AGENDAITEM #12 DATE: TO: FROM: SUBJECT: September 22, 2004 Honorable Mayor and City Council Marty Van Duyn, Assistant City Manager RESOLUTION AUTHORIZrNG SUBMITTAL OF THE 2003-2004 CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT (CAPER) TO THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) RECOMMENDATION It is recommended that City Council: 1) Hold a public hearing on the 2003-2004 Consolidated Annual Performance and Evaluation Report (CAPER), and 2) Adopt the attached Resolution authorizing the City Manger to execute all required documents for submittal to the Department of Housing and Urban Development. BACKGROUND/DISCUS SION The Department of Housing and Urban Development (HUD) requires communities receiving Community Development Block Grant (CDBG) funds to submit a year-end Consolidated Annual Performance and Evaluation Report (CAPER). The report describes the City's housing and community development accomplishments during the 2003-2004 Fiscal Year and includes a financial summary of CDBG expenditures. Prior to submitting the report the City must give the public an opportunity to review the CAPER and give testimony at a public hearing. CAPER reports are due to HUD 60 days after the completion of jurisdiction's fiscal year. In fiscal year 2003-2004, a total of $839,854 in CDBG funding was available for a broad range of community development activities. The CDBG program is the primary funding source for many services the City provides including housing rehabilitation, commercial faqade improvements, childcare, adult day' care, emergency food assistance, homeless services, and tutoring. In April 2003, the City Council authorized the submittal of the City's Five-Year Consolidated Plan for Housing and Community Development for fiscal years 2003-2004 through 2008-2009. The Consolidated Plan identified the housing and non-housing priorities the City would address during 2003-2009. In April 2003 the City Council also authorized the submittal of the first One-Year Action Plan for 2003-2004. The 2003-2004 CAPER describes City's accomplishments and compares them to the goals set in 2003-2004 One Year Action Plan. Attached as Exhibit A is a Summary of Accomplishments for the 2003-2004 CAPER. Staff Report Subject: Resolution Authorizing Submittal of the 2003-2004 CAPER to HUD Page 2 CONCLUSION The CAPER provides a comprehensive accounting of all CDBG funds allocated, expended, encumbered, or reprogrammed during the fiscal year. The CAPER has been available for public review in the Office of Economic and Community Development since September 7, 2004, when the public comment period began. Any comments received during the comment period or at the public hearing will be forwarded to HUD upon submittal of the report on September 30, 2004, a federally mandated deadline. Assistant City Manager Approved: ~ B,~-~Nagel City Manager Attachment: Resolution CAPER Summary Report RESOLUTION CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIYORNIA A RESOLUTION AUTHORIZING SUBMITFAL OF THE 2003- 2004 CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT (CAPER) TO THE DEPARrFMENT OF HOUSING AND URBAN DEVELOPMENT WHEREAS, the Department of Housing and Urban Development (HUq)) requires communities receiving Community Development Block Grant (CDBG) funds to submit a year-end Consolidated Annual Performance and Evaluation Report (CAPER); and WHEREAS, in fiscal year 2003-2004, a total of $839,854 in CDBG funding was available for a broad range of community development activities; and WHEREAS, the Consolidated Annual Performance and Evaluation Report (CAPER) has been available for public review in the office of Economic and Community Development, City Hall, 400 Grand Avenue since September 7, 2004. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council hereby authorizes the City Manager to submit the CAPER and execute all required documents for submittal to the Department of Housing and Urban Development. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco, held on the day of ,2004, by the following vote: AYE S: NOES: ABSTAIN: ABSENT: S:\Current Reso's\9-22-04CAP ER,res.doc ATTEST: City Clerk Summary of Accomplishments 2003-2004 CAPER Section III. Housing Activities A. Priority: Increase, maintain and improve the supply of affordable housing for low- and moderate-income individuals and families. Program ActiviO, 2003-2004 Objective 2003-2004 Accomplishments Five-Year CP Accomplishments (2003-04 Strategy _Objective Number) New Housing Construction County Property at Negotiate an agreement with the County of San Mateo to construct Selected Bridge Housing to Began entitlement process with Grand and Oak approximately 43 affordable apartments for low- and moderate- develop a 43 unit affordable Bridge Housing to develop a 43 (Housing 1.1 ) income families on County owned land at Grand and Oak Avenues. housing development. Began unit affordable family housing The planning and entitlement process will tentatively begin in 2003, entitlement process development. construction in 2004, and if the collaboration succeeds the units will be completed in 2005. 440 Commercial Negotiate an agreement with Peninsula Habitat for Humanity for the Selected Peninsula Habitat for Agreement negotiated with Avenne purpose of beginning construction of four three-bedroom affordable Humanity to develop four three- Peninsula Habitat for Humanity (ttousing 3.1) ownership units for large low-income families. The units will be bedroom ownership units for to develop four three-bedroom completed in FY 2005-06. low-income families. Began affordable ownership units for entitlement process and received large low-income families. approval in August 2004. l~clusionary Housing Under the City's 20% Inclusionary Housing Ordinance various Development-Below developers will make new affordable Ulfits available to residents at or Market Rate (BMR.) below 80% of the area median income and residents at or below 120% Units of the area median income in the market rate projects they develop. (ttousing 3.2) Projects will be either rental or ownership units depending on the type of project under development. · Five (5) Oak Farms units were made available and sold to The following projects are at a various stages of development and will families be completed as early as 03-04 and as late as 08-09: · 90 Oak Avenue is in the · Oak Farms at Oak and Grand - 5 units affordable to people at or process of obtaining building below 120% AMI permits · 90 Oak Avenue - 1 unit affordable to people at or below 80% AMI · Negotiated Affordable and 2 affordable to people at or below 120% AMI Housing Agreement for the · Fairfield Residential Project at El Calnino and McLellan - 29 units Fairfield Residential Project affordable to people at or below 80% AMI and 43 affordable to · Marbella is requesting an people at or below 120% AMI amendment to the AHA and is · Marbella in Westborough 28 units affordable to people below currently under review. 80% AMI and 42 affordable to people at or below 120% AMI 2003-2004 (_;'t PER ?ctge 1 of l A. Priority: Increase, maintain and improve the supply of affordable housing for low- and moderate-income individuals and families .ntinued. Program Activity 2003-2004 Objective 2003-2004 Accomplishntents Five- Year CP Accomplisl. nents (2003-04 Strategy Objective Number) Acquisition & Rehabilitation -- Willow Gardens Continue acquisition and rehabilitation of 48 units to convert into The City did not purchase any Thus far the City has not (Housing 2.1) affordable rental units for families at or below 50-60% of the AMI. buildings in Willow Gardens purchased any buildings in During 2003-2004 the City anticipates purchasing 1-2 four-plex during 2003-2004. Willow Gardens. buildings (4-8 units) as they become available in the market, depending on availability. Mid-Peninsula will moderately The City approved exterior Approved plans for rehabilitate any units purchased, rehabilitation plans for units rehabilitation of units already already owned and will begin owned. construction in 2004-05. Interior rehabilitation completed in all units. Private developer purchased a building as part of their BMR requirement. Downtown Affordable Housing fund established to provide affordable rental housing for Purchased 312 Miller Avenue. The Downtown Affordable Housing Program low- and very-low income residents through the acquisition and The property contains 4 units all Housing Program has purchased (Housing 2.2) rehabilitation of dilapidated housing stock. The City conducts occupied by low-income renters, one property containing 4 units. feasibility analysis on a regular basis to determine viability of Ongoing management of acquisitions. Should an opportunity to create affordable units present existing units. itself., the City will immediately allocate funds to the project funded with RDA, ttOME funds or CDBG. Low-Income Owner- Occupied Rehabilitation City-Sponsored Housing Assist low- and moderate-income homeowners with housing repairs Four (4) home rehabilitation Four (4) home rehabilitation Rehabilitation Loan citywide with priority for the Downtown/Old Town area. 3-5 projects are underway and will projects underway. Program households will be assisted ~vith Iow interest and/or deferred loans up be completed in early 04-05 (Housing 4.1) to $35,000 each. Most households will be very low-incmne, elderly, female heads-of-household. Emergency Code Provide homeowners grants of up to $2,500 to clear up code No resident applied for a No assistance provided in 03-04 Violation Vouchers violations in their homes. This program is available citywide and will voucher in 03-04. All assistance (Housing 4.2) assist 12 low-income residents. The program will use approximately needs were handled through $5,000-10,000 of the funds allocated to the Rehabilitation Loan North Peninsula Neighborhood Program. Number of units assisted will depend on requests for Services' Minor Home Repair services. Program. ([lousing 4.4) 2003-.200.4 CAPER Page 2 of? A. Priority: Increase, ~naintain and improve the supply of affordable housing for low- and moderate-income individuals and families continued .... Program Activity 2003-2004 Objective 2003-2004 Accomplishments Five- Year CP Accomplishments (2003-04 Strategy Objective Number) Debris Box Vouchers Help low- and moderate-income residents in the Downtown/Old Assisted 14 residents with debris Debris box vouchers have (Housing 4.3) Town area and citywide remove accumulated debris and yard waste box vouchers to cure code assisted 14 homeowners. from their properties. This program will assist 10 residents with enforcement. approximately $5,000 from the funds allocated to the Rehabilitation Loan Program. -Minor Home Repair Provide free, nfinor home repairs to 32 very Iow-income homeowners Provided free, minor home NPNSC has provided free, (ltouse Helpers) in the Old Town area and citywide. The progrmn will use repairs to the homes of 38 minor home repairs for 38 (Housing 4.4) approximately $40,000 from the funds allocated to the Rehabilitation households, households. Loan Program. The majority of households assisted will be large families with small children and elderly, female heads-of-household. -Rebuilding Together ~Rehabilitate 3 homes citywide of low-income homeowners, including Rehabilitated 8 homes occupied Rebuilding Together Peninsula Peninsula 1 roof repair, by very low-income people rehabilitated 8 homes for low- (Housing 4.5) (below 30% AMI) to cure code income hoineowners. enforcement.. First-time Homebuyer Conduct three seminars for first-time homebuyers and make5-7 low- Assisted a total of 7 families The First-time Homebuyer Loan Loan Program interest loans to first time homebuyers who are at or below 80% of the with home purchases: Four (4) Program has assisted 7 families (Housing 5.0) AMI or at or below 120% of the AMI. First time homebuyers will families moved into BMR units with home purchases. Of these, able to use the City loans to purchase homes anywhere in the City or and 1 family moved into a 3 families received CDBG loans in newly constructed BMR units created under the City's BMR market-rate housing unit using a only, 1 received CBDG and ordinance, total of $225,000 in CDBG RDA loans, 1 received CDBG, loans. CDBG funds were RDA and Housing Trust Fund leveraged with $100,000 in loans, 1 received an RDA loan, RDA and $25,000 in }lousing and 1 received an RDA and Trust Funds. One family moved Housing Trust Fund loan. into a BMR unit with an RDA loan, and one family moved into Conducted 3 first-time a market rate unit with an RDA homebuyers seminars. and Housing Trust Fund loan. Conducted 3 first-time homebuyer seminars. 2003-200 ,t C/I/'ER P~tge 3 riched helter and transitional housin for homeless individuals and families. Program AcliviO~ 2003-2004 Objective 2003-2004 Accomplishmenls Five-Year CP Accomplishments (2003-04 Strategy Objective Number) Shelter Network - Provide transitional housing and supportive services to 8 homeless Provided transitional housing to Through Crossroads, Shelter Crossroads families, a total of 13 homeless families. Network has provided transitional housing to 13 South (Homeless 1. l) San Francisco families. Shelter Network - Provide transitional housing and snpportive services to 10 homeless Provided transitional housing to Through Maple Street, Shelter Maple Street individuals, a total of 22 homeless Network has provided (Homeless 2.1) individnals, transitional housing to 22 individuals in South San Francisco. Samaritan House - Safe San Mateo County's emergency shelter serving 90 individuals Provided $7,000 in Contributed to the operation of Harbor countywide a night with shelter, food, restroom facilities, and Redevelopment Agency funding an emergency 90-bed winter (Homeless 2.2) supportive services. Serve 75 homeless individuals citywide, for continued shelter operation, shelter in South San Francisco. One hundred and ten (110) One-hundred and ten (110) South San Francisco residents South San Francisco residents were served in 2003-04. were served in 2003-04. Hulnan Investlnent Provide shared honsing referrals to 145-180 low- and very-low Provided referrals to 145 low- HIP has provided referrals to Project income individuals, income households looking for 145 households seeking shared (Homeless 3.0) shared housing, housing. Priority: Provide service-enriched housing opportunities for individuals and families with special needs including, but not limited to, seniors, people with physical and developmental disabilities, domestic violence survivors, people with AIDS/HIV, and people in treatment for substance abuse. Program Activity (2003-04 Strategy Objective Number) 2003-2004 Objective Provide housiug accessibility modifications to the homes of 30 low- and very-low income people with disabilities. Provide shelter and services to 7 low-income domestic violence survivors and their children. Center for Independence of the Disabled (CID) Housing Accessibility Program (Special Needs 1.1) CORA Formerly: Center for Domestic Violence Prevention (Special Needs 2.1) (Public Services 3.4) 2003-2004 Accomplishments Provided accessibility modifications to the homes of 29 households. Provided shelter and services to 7 women and children. Five- Year CP Accomplishments CID has provided housing accessibility modifications to the homes of 29 disabled and elderly people. To date, the Center for Domestic Violence Prevention has provided transitional housing to 7 South San Francisco battered women and children. 2003-2004 CAPER Page 4 of 4 Section IV. Non-Housing Community Development Activities A. Priority: Provide core public services activities to improve the quality of life for low-income individuals and families, including those at risk of becoming homeless and special needs groups. Progrtttn Activity 2003-2004 Objective 2003-2004 Accomplishntents Five- Year CP (2003-04 Strategy ' Accomplishments Objective Number) Childcare Child Care Coordinating Provide emergency childcare for up to 8 low- and very-low-incolne Provided childcare for 4 This year CCCC has provided Council children of families in crisis, children for extended periods extended childcare for 4 low- of time. Outcome is lower iucome families. (Public Services 3.1) than targeted goal because the four children received longer - term assistance. City-Sponsored Child CDBG monies provide fee assistance stipends to 15 low- and very-low- Provided childcare fee To date the City's program has Care income children for before and after school recreational program, assistance to 12 children, provided childcare fee (Public Services 3.1) assistance to 12 children. Friends to Parents Provide a major subsidy for affordable center-based childcare to 42 Provided childcare for 75 Friends to Parents has (Public Services 3.1) infants and preschool children from low- and very-low-income children, provided childcare for 75 households, children. SSFUSD - Children's Provide extracurricular activities to 163 Iow- and very-low-income Center provided childcare for The SSFUSD Children's Center children. 148 children and CDBG funds Center leveraged City funds to (Public Services 3.1) were used for field trips and provide childcare for 148 supplies, households. Senior Services -Second Harvest Food Provides low- and very-low-income seniors and disabled people a weekly Provided 300 senior and This year Second Harvest has Bank bag of food to supplements their diets. Approximately 260 households disabled households with food provided 300 senior and (Public Services 3.2) served, on a weekly basis, disabled households with food. City-Sponsored Adult Provide structured and supervised care in the form of social, educational Provided day care to 43 This year, the City's program Day Care and recreational activities to 50 Iow- and very-low-income frail or seniors on a monthly basis, has provided day care for 43 (Public Services 3.2) disabled seniors, frail and elderly residents. General Social Services --North Peninsula The San Mateo County core agency located in South San Francisco Provided social services to NPNSC provided social Neighborhood Services provides critical social services to 915 low- and very-low-income 683 households (2,064 services to 683 households Center (NPNSC) households (approximately 1200 people) with immediate needs, individuals). The number of (2,064 individuals). (Public Services 3.3) households served is lower than expected but the total amount of people assisted is nearly double the number expe~c_ted. __ 2003-2004 (',~ PER B. Priority: Provide core public services activities to improve the quality of life for low-income individuals and families, including those at risk of becoming homeless and special needs groups continued... Program Activin. 2003-2004 Objective 2003-2004 Accomplishments Five- Year CP (2003-04 Strategy Accomplishments Objective Number) The Tooth Mobile On site dental services for students of the Families on Track program. Provided services to 361 Provided dental services to Public Services 3.3 Appr~oxi~nately 280 low- and very-low-income individuals served, studen_[s 361 students. Project READ Provides individualized tutoring in basic skills as well as tutor training for Tutored 38 adults in reading. Project READ has trained (Public Services 3.3) program volunteers. Approximately 40 low- and very~low-income people tutors and provided tutoring to served. 38 adults Sitike Counseling Center Provide chemical dependency treatment for 60 low- and very- low- Provided treatment to 57 Treated 57 individuals. (Public Services 3.3) income women and children, individuals. (Special Needs 4.0) Battered Women's Services CORA See Housing Activities Priority C (Public Services 3.4) (Special Needs 2.1) Rape Trauma Services Only San Mateo County agency to provide information, resources, and Provided information and Rape Trauma Services has Center support to sexual assault survivors. Approximately 340 low-income services to 427 South San provided services to 427 (Public Services 3.4) individuals served. Francisco individuals, individuals. Disabled Services PARCA (Peninsula Provide support, information, referrals, outreach, advocacy, and recreation Provided services to 92 92 individuals and families Association for Retarded opportunities for approximately 5 low-income individuals with individuals and their families, have received support Children and Adults) developmental disabilities and their families, services. (Public Services 3.5) (Special Needs 5.0) ELLIPSE Peninsula Provide in-home support service to 15 low- and very-low-income Served 12 households with ELLIPSE has provided Aids Program households with HIV/AIDS H1V/AIDS. support services to 12 clients (Public Services 3.5) with HIV/AIDS. (Special Needs 3.1) Youth Services John's Closet Provide new clothing to 130 low- and very-low-income school children. Provided new clothing to 168 John's Closet has provided (Public Services 3.6) children, clothing to 168 children North Peninsula Family Provide parenting skills to ~1 low- and very-low-income households. Provided parenting skills and This year Family Alternatives Alternatives (NPFA) services to 125 clients, far has provided parenting skills (Public Services 3.6) exceeding the proposed and services to 125 teens and estimate of clients, parents. 2003-2004 Cat PER t'age 6 rf 6 C. Priority: Sustain and increase the level of business and economic activity in areas that serve or have a high percentage of iow- income residents. Program Activity 2003-2004 Objective 2003-2004Accomplishments Five-Year CP (2003-04 Strategy Accomplishments Objective Nttmber) -City-Sponsored Provide financial and technical assistance to property owners undertaking Completed faCade redesign at Completed fagade redesign at Commercial exterior business improvements, which can include signs, awnings and 2 l 1 Linden Avenue (Group 4 211 Linden Avenue (Group 4 Rehabilitation exterior painting. These improvements help owners increase the use of Architects) Architects) (Non-Housing 1.1) their commercial buildings and improve the appearance of the Historic Downtown district. Goal: to assist 4-6 businesses. Provided technical assistance and code enforcement action at 3 businesses. Possible construction in 04-05. D. Preserve and improve public facilities that serve a high percentage of low-income residents. Program Activity 2003-2004 Objective 2003-2004 Accomplishments Five-Year CP (2003-04 Strategy Accomplishments Objective Number) Public Facilities Families on Track Acquisition and installation of a modular unit to expand existing facility. Acquired and installed a Families on Track acquired (Non-Housing 2.1) Approximately serving 180 low- and very-low-income households, modular unit to expand and installed a modular unit, existing facility at 825 expanding the existing facility Parkway. Served 218 at 825 Parkway. Served 218 households, households. 2003-2004 CAPER Page 7 of/ Section V. Lead-Based Paint Abatement -Program ActiviO, 2003-2004 Objective -- 2003-2004 Accomplishments Five-Year CP (2003-04 Strategy Accomplishments Objective Number) Lead-based paint Continue to apply federal lead-based paint regulations in all housing and Continued to collaborate with Have applied federal lead- abatement procedures commercial rehabilitation projects to reduce lead-based paint hazards, the County of San Mateo and based paint regulations to (Other Objectives 2.0) Collaborate with the County of San Mateo and other county jurisdictions other jurisdictions in the reduce lead-based paint to coordinate educational efforts, county to implement uew hazards. Have collaborated federal lead-based paint with the County of San Mateo regulations for housing, and other county jurisdictions Actions included offering to coordinate educational training to contractors, efforts. Actions included performing outreach, and offering training to cooperating and sharing contractors, performing information with other outreach, and cooperating and entitlement jurisdictions, sharing information with other entitlement jurisdictions. _ Section VI. Fair Housing Program Activity 2003-2004 Objective ' 2003-2004 Accomplishtnents Five-Year CP (2003-04 Strategy Accomplishments Objective Number) Project Sentinel Provide fair housing counseling and advocacy casework to 10 low-income Provided case management Project Sentinel has provided (Other Objectives 1.0) households and respond to approximately 140 telephone inquiries from for 17 households and case management for 17 residents requesting fair housing information, responded to 168 phone households and responded to inquiries. 168 phone inquiries. La Raza Centro Legal Provide 400 low-income individuals with services including information Provided legal advice, La Raza Centro Legal has (Other Objectives 1.0) and referral, legal advice and counseling, and legal representation, information and counseling to provided legal advice, 507 individuals, information and counseling to 507 individuals. ~ , l'ctge 8 of 8 200_ -z 004 CAPER StaffReport AGENDA ITEM tU3 DATE: September 22, 2004 TO: Honorable Mayor and City Council FROM: Jim Steele, Director of Finance SUBJECT: 2003-04 YEAR-END FINANCIAL RESULTS AND BUDGET CLOSING ? RECOMMENDATION: It is recommended that the City Council approve the attached budget amendment resolution authorizing various budget actions totaling $1.62 million that allow staff to close the books on the 2003-04 fiscal year. Taking these actions will result in a General Fund Undesignated Reserve of $4.0 million as of June 30, 2004. BACKGROUND/DISCUSSION: Through the preliminary year-end close process, staff projects General Fund revenues coming in $2.4 million lower than earlier projected for fiscal year 2003-04. Most of this decline materialized after adoption of the fiscal 2004-05 budget and after recording fiscal 03-04 receipts in May through July 2004. The 03-04 budget is out-of-balance by the revenue shortfall. The shortage occurred primarily in five areas: Sales Tax Amended Year-End Budget Actual $12,152,000 $11,288,000 Favorable/(Unfavorable) Variance $(864,000) Staff became aware of a potential drop in sales tax in April, after the initial 2004-05 budget was submitted. It appeared initially in April that much of the potential drop was attributable to errors in the State's payments for gasoline sales tax (which was a problem statewide) and to problems in reporting on the shift of Nella's bulk fuel sales office to San Bruno. Staff did some additional research, and found that the City of San Bruno was not receiving Nella sales tax at all, and this reinforced the belief that the problem was primarily due to an error in reporting that would be resolved in the next quarter. Furthermore, a drop in sales tax was counter to what most of the other cities in San Mateo County were experiencing, which was some modest growth after having sales taxes reach bottom through the end of 2003. It also ran counter to statewide trends and to trends reported by most economists, that the Bay Area was slowly coming back from the downturn. Therefore, staff worked with our sales tax consultants (MBIA) in the March-June timeframe to track down the problems with the State Board of Equalization and to obtain more information from Nella. Staff Report Subject: 2003-04 Year End Financial Results and Budget Closing Page 2 of 3 By June, it was becoming clearer that the declines might not have been e~Tors. MBIA found that Nella was by all evidence reporting their sales correctly to the State. In addition, drops in most categories in South San Francisco continued into the April-June time period. Again, this was counter to what other San Mateo County cities had experienced. Staff believes this is because much of South San Francisco's sales taxes are in the business to business and construction materials areas, meaning they are more volatile than the bulk of the sectors in many of the other cities in San Mateo County, which rely more heavily on consumer spending. (Consumer spending has, in fact, led the tepid recovery in California to date). With sales tax receipts for the last quarter of 03-04 not picking up even modestly as expected, the City has realized a revenue shortfall below budget. The City suffered a drop across the board in most major sales tax categories, but was especially hard hit in biotech (equipment purchases), car sales, gasoline, business services and construction materials and supplies. Franchise Fees Amended Year-End Budget Actual $2,869,000 $2,603,000 Favorable/(Unfavorable) Variance $(266,000) Pacific Gas and Electric franchise fees declined due to fluctuations in electrical usage and a decline in natural gas rates. Consistent with franchise agreements, the bulk of these payments do not come in until the April-May timeframe, which was after the midyear review and the 2004-05 budget was submitted. Building Permits Amended Year-End Budget Actual $3,394,000 $2,479,000 Favorable/(Unfavorable) Variance $(915,000) The Building Division had projected several large building permit revenue payments from Genentech and Fairfield to come in late in the fiscal year, so when the midyear review and 2004- 05 budgets were put together, staff still had every reason to count on these revenues. When these payments came in the month of June, they turned out to be revenues for the Sewer Fund, Childcare Fund, and East of 101 Traffic Fund, and not primarily General Fund revenue. Interest Amended Year-End Budget Actual $923,000 $629,000 Favorable/(Unfavorable) Variance $(294,000) Interest income from investments declined due to several factors. These included lower cash balances and the maturity of older medium-term bonds in the City's portfolio with higher interest rates. Loss on Investments Amended Year-End Favorable/(Unfavorable) Budget Actual Variance $ -0- $(465,000) $(465,000) Accounting rules require that realized and unrealized gains or losses be posted at year end. Due to the increase in interest rates due to Federal Reserve tightening and due to the sale of certain Staff Report Subject: 2003-04 Year End Financial Results and Budget Closing Page 3 of 3 securities because of weak investment ratings, the City had to book realized and unrealized losses of $161,000 and $304,000 respectively, for the year. Revenue Shortfall Solution To address the $2.4 million shortfall and since the books for 2003-04 have not been closed out, staff has proposed retroactive fund shifts and administrative charges of $1.62 million to the Redevelopment, Common Greens, Parking District, Sewer and other funds for expenses that can be legitimately charged there for 2003-04. $380,000 of these shifts reside already in the 2004-05 adopted budget while $1.24 million are new shifts and administrative charges identified by staff after a thorough analysis of redevelopment, maintenance and administrative tasks. This solution will leave the General Fund with a manageable operating deficit of $753,000 and keep June 30, 2004 General Fund Reserves, excluding contingencies, at a prudent level of $4.0 million. FISCAL IMPACT: The attached budget amendment resolution will authorize expenditures of: $757,000 in Downtown, $319,000 in Low and Moderate Income Housing, $83,000 in E1 Camino, $43,000 in Gateway, and $20,000 in Shearwater for a total of $1,222,000 in Redevelopment Agency operational'and debt service funds. · $229,000 in various Common Greens maintenance district funds. · $75,000 in Parking District enterprise funds. Fund shifts for Sewer and other smaller funds can be absorbed within their existing budgets. Prepared by: ~ Jirr/Steele Fi~tance Director Appr ° v e d b ~~aN;igre~l' (~~~ ATTACHMENTS: Resolution Exhibit A - Preliminary General Fund Operating Results 2003-04 Exhibit B - Total General Fund Operating & Capital Budget, and Changes to General Fund Reserves DW/JS/BN:ed RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION APPROVING VARIOUS BUDGET ACTIONS TOTALING $1.62 MILLION THAT AIJ.OW STAFF TO CLOSE THE BOOKS FOR THE GENERAL FUND 2003/04 FISCAL YEAR WHEREAS, staff recommends authorizing expenditures of: $757,000 in Downtown, $319,000 in Low and Moderate Income Housing, $83,000 in E1 Camino, $43,000 in Gateway, and $20,000 in Shearwater for a total of $1,222,000 in Redevelopment Agency operational and debt service funds. · $229,000 in various Common Greens maintenance district funds. · $75,000 in Parking District enterprise funds. WHEREAS, staff recommends shifting fiscal year 2003/04 General Fund expenditures on a retroactive basis to the above funds and to Sewer and other funds. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco that the City Council hereby approves various budget actions retroactive funding shifts, and administrative charges totaling $1.62 million that allow staff to close books for the 2003/04 fiscal year. Taking these actions will result in a General Fund Undesignated Reserve of approximately $4.0 million as of June 30, 2004. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a meeting held on the __ day of 2004 by the following vote: AYES: NOES: ABSTAIN: ABSENT: S:\Current Reso's\9-22-04year.end.results.res.DOC ATTEST: City Clerk Exhibit A Preliminary General Fund Operating Results, 2003-04 Preliminary Actual 2002-03 9,622,976 12,194,963 3,917,243 3,622,146 1,286,721 1,873,804 1,878,853 2,054,709 4,554,519 907,768 1 ,O53,492 1,832,252 1,651,311 468,139 1,168,236 Amended Actual 2003-04 :::; Rec°ml Budget (Before Budget, :;:Budget 2003-04 Solutions) SOlUtions 10,714,000 10,732,355 537,000 537,460 12,152,000 11,287,900 4,000,000 3,945,974 2,629,000 2,780,323 1,368,587 1,233,805 : 2,869,0003,394,0001,479,700 2,479,409 2,602,529 1,579,770 : 5,209,883 5 675 690 1,068,000 1 061 231 923,000 629 108 (465,194) 2,484,100 2,342,600 ; : 1,848,868 1,847,868 435,000 519,142 $ 48,087,132 $ 52,428,094 $ 50,015,601 $ 249i000' 50,264,601 283,290 10 000 ::;;, 10,000 $ 48,087,132 $ 52,711,384 $ 50,025,601 50,274,601 Revenues and Other Financing Sources Property Taxes ERAF One Time Refund from County Sales Tax Transient Occupancy Tax Motor Vehicle In Lieu Fees Revenue from Other Agencies Franchise Fees Business License Building and Fire Permits Charges for Services Fines Interest Loss on Investments Rent Administrative Charges Other Transfers In Total Revenues: Plus Prior Year Carryovers Total Revenues and Other Financing Sources Actual 2003-04 (After Budget Solutions) 10,732,355 537,460 11,287,900 3,945,974 2,780,323 1,233,805 2,602,529 1,579,770 2,479,409 5,675,690 1,061,231 629,108 (465,194) 2,342,600 2,096,868 519,142 1,225,632 Expenditures Administration Economic & Comm. Dev. (2) Fire Library Police Public Works (formerly Maintenance Services) (2) Parks, Rec & Maint. Svcs. Public Works (2) Recreation and Community Services Expenditure shifts to other funds Subtotal, Operating Budget Expenditures Net Operating Budget Impact 6,387,828 5,239,852 5,069,765 2,623,375 2,891,811 2,821,263 11,387,186 13,691,884 13,672,290 3,953,664 4,764,115 4,481,555 12,471,829 14,429,147 14,106,554 5,928,130 5,919,270 10,696,566 1,170,689 1,327,418 1 348 958 1,348,958 5,159,142 4,980,184; : ;; 4,980,184 372 561) (1,372,561) $ (604,005) $ (720,115) $ (2,374,238) ?$ ;!;62~76~; $ (752,677) (2) Effective July 1, 2004, former Public Works Department is reorganized. Enginnering Division is transferred to the Economic and Community Development Dept., and the former "Maintenance Services" Department is renamed "Public Works". Exhibit B Total General Fund Operating and Capital Budget, & Changes to General Fund Reserves Net Operating Budget Impact (from Table I) Less Transfers to Capital Projects: Less Transfers to Debt Service Plus (Minus) One-Time Transactions: Plus Favorable Resolution of Genentech Property Tax Settlement: Plus (Minus) Favorable (Unfavorable) Reduction in funds set aside for legal settlement: Less Unfavorable Increase in Projected Workers' Compensation Liability: Net Impact on General Fund Reserves Year End Actual 2002-03 Amended Budget 2003-04 Year End 2003-04 (After Budget Solutions) (604,005) (733,000) (452,000) $ (720,115) (491,130) (130,000) (752,677) (85,924) (103,167) 1,122,000 700,000 (1,200,000) (23O,00O) (1,167,005) $ 1,341,245) $ (1,171,768) IGeneral Fund Reserves Projection I. Discretionary Reserves/ Liquid Reserves Available Emergencies Economic Contingencies Designated for future Economic Development Projects Undesignated Reserve 1,000,000 1,000,000 1,000,000 3,500,000 3,500,000 3,500,000 3,600,000 3,600,000 3,600,000 4,323,000 4,182,755 4,016,026 II. Non-Discretionary Reserves/ Reserves Already Committed Encumbrances Advances to Other Funds Inventory Appropriated Capital Projects Subtotal, Non Discretionary (Committed) Reserves Total General Fund Reserves 283,000 266,000 845,000 318,000 51,000 51,000 34,000 391,000 405,206 $ 1,570,000 $ 369,000 $ 705,206 $ 13,993,000 $ 12,651,755 $ 12,821,232 AGENDA ITEM #14 DATE: TO: FROM: SUBJECT: September 22, 2004 Honorable Mayor and City Council Jim Steele, Director of Finance 2004-05 BUDGET CHANGES TO REFLECT REVISED REVENUES RECOMMENDATION: Staff recommends that City Council approve a resolution to amend the current year budget to authorize: additional fund shifts to non-General Fund areas totaling $1.3 million and new revenues totaling $418,500. Adoption of these changes, as well as future action to refinance PERS retirement costs (not covered in this budget amendment), will result in a General Fund Undesignated Reserve of $3.7 million as of June 30, 2005. BACKGROUND/DISCUSSION: As staff reported in the accompanying year-end 2003-04 staff report, General Fund revenues came in $2.4 million lower in 2003-04 than had been projected. Most of this decline was due to information that came in late in the fiscal year. Those items included: Sales Tax receipt declines beginning in April (after the 2004-05 budget was submitted) and continuing through the final August payment. This was contrary to the modest increase the budget had projected, and was also contrary to most of the rest of San Mateo County cities' experience, which had begun to see modest growth in sales tax in the second half of fiscal year 2003-04. Franchise Fee revenues came in $266,000 lower than budget in April/May, reflecting lower natural gas prices and a drop in consumption due to the economic slowdown. Large building permit revenue payments from Genentech and Fairfield that had been projected by the Building Division to come in in June turned out to be primarily non- General Fund permit and fee revenue. Interest earnings declined in the second half of the year, due to reduced cash balances and lower earnings rates. For the current (2004-05) fiscal year, the ongoing revenue declines translate into an approximately $2.7 million revenue shortfall. In addition, the final State budget resulted in $.5 Staff Report Subject: 2004-05 Revenue Changes Page 2 of 4 million in higher Educational Revenue Augmentation Fund payments (ERAF property tax shifts) than the City's original budget had built in, making the revenue loss for 2004-05 total $3.2 million. Pending approval of the State constitutional amendments by the voters in November, those ERAF shifts, totaling $1.0 million annually for 2004-05 and 2005-06, will be restricted in the future. Solutions: Staff has proposed a four-part solution to the budget subcommittee (Councilmembers Fernekes and Green) for bringing the General Fund into near-balance and maintaining the General Fund Reserves at acceptable levels. They include: New fees and revenues, primarily in Fire and Recreation ($418,000). Fire has been generating additional renewable permit revenue, but it is also proposing an entrepreneurial new fee endeavor. Fire proposes to hire contract Emergency Medical Technicians (EMTs) to operate a smaller ambulance to transport non-emergency patients to and from hospitals and nursing/convalescent homes. This is a service that the City currently does not provide, and Fire staff have surveyed surrounding hospitals and determined that there is an unmet need for this type of transport. Staff has estimated a conservative start to this program revenue-wise for an estimated eight months of service this fiscal year ($100,000), but believes the program can successfully generate additional dollars in future years to help offset the cost of the Paramedic program, which does not pay for itself through fee revenue. · Additional administrative charges to the Low/Moderate Housing FUnd, reflecting work City staff actually performs for housing programs. Staff has contacted PERS about paying off the liability for the recent retirement benefit enhancements over a longer timeframe. PERS' normal payoff time frame is 12-13 years, but PERS sometimes allows cities to pay the liability off over 30 years. Such a refinancing, called a "fresh start", would generate up to $1.24 million in savings in 2004-05 for the General Fund, depending on how many PERS' groups' liabilities are refinanced (Fire, Police, and Miscellaneous are the three possibilities). Taking the refinancing will only result in real savings for the City if bargaining groups agree to a change in the salary survey methodology that will be discussed with the Council in more detail in closed session tonight. Additional expenditure shifts to the Redevelopment and Sewer Funds for expenses that can be legitimately charged there for 2004-05 ($1.3 million). Staff recommends that these shifts be considered relatively short to medium term only, and not permanent. That is, to the extent revenues pick up in the medium term, staff recommends these fund shifts be reversed as soon as possible. Staff Report Subject: 2004-05 Revenue Changes Page 3 of 4 PERS Refinancing Savings from shifting to a 30-year payoff of the unfunded liability with PERS would result in the following savings in 2004-05: 04-05 Rates: Misc. Fire PD Total 33.528% Current: 16.051% 32.463% w/30 year amortization (fresh start) 13.448% 27.562% 27.750% ISavings, year 1: Dollar Savings, General Fund: 2.60% 4.90% 5.78% 450,890 361,790 382,247 1,190,000 Plus Prepayment Savings: 17,522 14,348 14,855 50,000 Total: 468,413 376,138 397,102 1,240,000 Like a mortgage, under a fresh start, rates are lower in the early years than in PERS' default methodology, but are higher in later years than they would have been. Here is an example of two estimates of the Fire PERS rate, one using the default PERS payoff rate, and one under a fresh start. Fire PERS Rate Estimates: Year 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2031/32 2032/33 2033/34 2034/35 Current/ Fresh Start Default Rate (30 year rate) Change in PERS Rate 32.463 % 27.562% -4.90 % Actual 31.76% 27.56% 31.10% 27.56% 30.49% 27.56% 29.91% 27.56% 29.36% 27.56% 28.85% 27.56% 28.37% 27.56% 27.92% 27.56% 21.08% 27.56% 20.95% 27.56% 20.83% 27.56% 20.72% 18.98% -4.20% Estimated: -3.54% -2.92% -2.34% -1.80% -1.29% -0.81% -0.35% 6.48% 6.61% 6.73% -1.74% Staff Report Subject: 2004-05 Revenue Changes Page 4 of 4 Note that under the default payment plan, the PERS rate is highest in the early years and declines over time. Under a fresh start, the rate stays constant over 30 years, except for subsequent portfolio gains or losses (which would effect the default rate too). Results: If all of the steps contained in this staff report are approved (fund shifts, new fee revenue, and PERS fresh start savings), staff estimates that the General Fund Undesignated Reserve will be maintained at $3.7 million by June 30, 2005 (The attached budget amendment does not yet request or authorize the PERS refinancing, pending labor unions' agreement to a change in salary survey methodology). In addition, that figure does not count several other possibilities: Fire salary surveys have come back under what was budgeted for 2004-05. Those savings, which we can't count on yet, as the process is not yet complete, are approximately $500- 600,000. If voters approve the two tax measures on the ballot this November, they will generate another $300,000 this fiscal year for half a year. Note that revenue estimates still do not yet include final property tax assessed valuation numbers for the year from the County. The County does not provide those numbers until late September/early October. FISCAL IMPACT: The attached budget amendment resolution will result in a total of $1.725 million in budget solutions to maintain the General Fund Undesignated Reserve at prudent levels. If the PERS refinancing is agreed to by the bargaining groups and approved by Council agreed to prior to October 1st, an addition $1.2 million in savings will be realized. Prepared by: Fifiance Director Approved ' 'B~al~y M: Nagel City Manager ATTACHMENTS: Resolution Exhibit A - Proposed 2004-05 Operating Budget Changes Exhibit B - General Fund Reserves JS/BN:ed RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AMENDING THE 2004/05 YEAR BUDGET TO AUTHORIZE ADDITIONAL FUND SHIFTS TO NON-GENERAL FUND AREAS TOTALING $1.3 MIl.LION AND NEW REVENUES TOTALING $418,500 WHEREAS, staff recommends amending the 2004/05 year budget to authorize additional fund shifts to non-General Fund areas totaling $1.3 million and new revenues totaling $418,500. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco that the City Council hereby amends the 2004/05 year budget to authorize additional fund shifts to non-General Fund areas totaling $1.3 million and new revenues totaling $418,500. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a meeting held on the ~ day of 2004 by the following vote: AYES: NOES: ABSTAIN: ABSENT: S:\Current Reso's\9-22-04budget.changes.res.DOC ATTEST: City Clerk Exhibit A Proposed 2004-05 General Fund Operating Budget Changes Revenues and Other Financing Sources Actual 2003-04 Adopted Actual (After Budget Budget 2002-03 Solutions) 2004-05 Revised Proj. (Before Budget Solutions) Property Taxes 9,622,976 10,732,355 11,364,000 ERAF One Time Refund from County 537,460 285,000 New State Reimbursement to offset Sales Tax diversi 3,033,000 Est. of New ERAF Shift from State -533,000 Sales Tax 12,194,963 11,287,900 9,476,500 Transient Occupancy Tax 3,917,243 3,945,974 4,100,000 Motor Vehicle In Lieu Fees 3,622,146 2,780,323 3,858,000 Revenue from Other Agencies 1,286,721 1,233,805 924,000 Franchise Fees 1,873,804 2,602,529 3,100,000 Business License 1,878,853 1,579,770 1,527,000 Building and Fire Permits 2,054,709 2,479,409 2,932,000 Charges for Services 4,554,519 5,675,690 4,906,000 Fines 907,768 1,061,231 1,089,000 Interest 1,053,492 629,108 971,000 Net Loss on Investments (485,194) Rent 1,832,252 2,342,600 2,544,000 Administrative Charges 1,651,311 2,096,868 1,886,000 Other 468,139 519,142 455,000 Transfers In 1,168,236 1,225,632 2,618,000 Total Revenues: Plus Prior Year Carryovers Total Revenues and Other Financing Sources Expenditures Administration Economic & Comm. Dev. (2) Fire Library Police Public Works (formerly Maintenance Services) (2) Parks, Rec & Maint. Svcs. Public Works (2) Recreation and Community Services PERS refinancing Expenditure shifts to other funds Subtotal, Operating Budget Expenditures (1) (1) 11,202,000 285,000 8,626,500 4,1oo,ooo 3,858,000 1,099,000 2,750,000 2,152,000:1:250000 4,906,000 ; 168;500 1,886,000 :;;24;9;000 2,618,000 Revised Budget 2004-05 (After Budget Solutions) 11,202,000 285,000 2,850,000 (1,010,000) 8,626,500 4,100,000 3,858,000 1,099,000 2,750,000 1,540,000 2,402,000 5,074,500 1,089,000 417,000 2,494,000 2,135,000 455,000 2,618,000 $ 48,087,132 50,264,601 54,535,500 51,317,500 667,500; 51,985,000 10,000 $ 48,087,132 $ 50,274,601 $ 54,535,500 $ 51,317,500 $ 667,~00 51,985,000 6,387,828 5,069,765 5,122,968 5,122,968 5,122,968 2,623,375 2,821,263 3,449,791 3,449,791 3,449,791 11,387,186 13,672,290 14,992,241 14,992,241 14,992,241 3,953,664 4,481,555 4,228,752 4 228 752 4,228,752 12,471,829 14,1 O6,554 16,023,824 16 023 824 16,023,824 5,919,270 5,654,911 5,654,91t 5,654,911 10,696,566 1,170,689 1,348,958 {1~240~000) (1,240,000) (1,372,561) {1 058¢0~1~ (1,058,041) $ 48,691,137 $ 51,027,278 $ 54,510,948 $ 54,510,948 ;;$ (2;298~041) 52,212,907 (752,677) $ 24,552 $ (3,193,448) (227,907) Net Operating Budget Impact $ (604,005) $ (1) 2004-05 budget includes new State "flip" of 25% of local sales tax to State in return for additional Property Taxes to fund Prop 57 deficit bonds approved by voters March 2004. (2) Effective July 1, 2004, former Public Works Department is reorganized. Enginnering Division is transferred to the Economic and Community Development Dept., and the former "Maintenance Services" Department is renamed "Public Works". Exhibit B Total General Fund Operating and Capital Budget, & Changes to General Fund Reserves Year End Actual 2002-03 Year End 2003-04 (After Budget Solutions) Projected Budget 2004-05 Net Operating Budget Impact (from Table I) Less Transfers to Capital Projects: Less Transfers to Debt Service Plus (Minus) One-Time Transactions: Plus Favorable Resolution of Genentech Property Tax Settlement: Plus (Minus) Favorable (Unfavorable) Reduction in funds set aside for legal settlement: Less Unfavorable Increase in Projected Workers' Compensation Liability: Net Impact on General Fund Reserves (604,005) (733,000) (452,000) 1,122,000 700,000 (1,200,000) (752,677) (85,924) (103,167) (230,000) (227,907) (642,706) (130,000) (1,167,005) $ (1,171,768) (1,000,613) Eeneral Fund Reserves Projection I. Discretionary Reserves/ Liquid Reserves Available Emergencies Economic Contingencies Designaged for future Economic Development Projects Undesignated Reserve 1,000,000 1,000,000 1,000,000 3,500,000 3,500,000 3,500,000 3,600,000 3,600,000 3,600,000 4,323,000 4,016,026 3,686,619 II. Non-Discretionary Reserves/ Reserves Already Committed Encumbrances Advances to Other Funds Inventory Appropriated Capital Projects Subtotal, Non Discretionary (Committed) Reserves Total General Fund Reserves 283,000 266,000 845,000 51,000 34,000 391,000 405,206 34,000 $ 1,570,000 $ 705,206 34,000 $ 13,993,000 $ 12,821,232 11,820,619