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HomeMy WebLinkAbout2003-03-26 e-packetSPECIAL MEETING CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, California 94083 Meeting to be held at: MUNICIPAL SERVICES BUILDING CITY COUNCIL COMMUNITY ROOM 33 ARROYO DRIVE MARCH 26, 2003 6:30 P.M. NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of California, the City Council of the City of South San Francisco will hold a Special Meeting on Wednesday, the 264 day of March, 2003, at 6:30 p.m., in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California. Purpose of the meeting: 1. Call to Order 2. Roll Call 3. Public Comments - comments are limited to items on the Special Meeting Agenda 4. Closed Session: Pursuant to Government Code Section 54957.6, labor negotiations for City Manager with City Negotiator Steven Mattas 5. Adjournment AGENDA REDEVELOPMENT AGENCY CITY OF SOUTH SAN FRANCISCO REGULAR MEETING MUNICIPAL SERVICE BUILDING COMMUNITY ROOM MARCH 26, 2003 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 FIVE (5) MINUTES PER SPEAKER. In the event that there are more than six persons desiring to speak, the Chair may reduce the amount of time per speaker to three (3) minutes. 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. KARYL MATSUMOTO Vice Chair R/CHARD A. GARBAR1NO Boardmember BEVERLY BONALANZA-FORD Investment Officer MICHAEL A. WILSON Executive Director PEDRO GONZALEZ Chairman JOSEPH A. FERNEKES Boardmember RAYMOND L. GREEN Boardmember SYLVIA M. PAYNE Clerk STEVEN T. MATTAS Counsel PLEASE TURN OFF CELL PHONES AND PAGERS HEARING ASSISTANCE EQUIPMENT IS AVAILABLE FOR USE BY THE HEARING-IMPAIRED AT REDEVELOPMENT AGENCY MEETINGS CALL TO ORDER ROLL CALL AGENDA REVIEW PUBLIC COMMENTS CONSENT CALENDAR 1. Motion to approve the minutes of March 12, 2003 2. Motion to confirm expense claims of March 26, 2003 PUBLIC HEARING 3. Consideration of Amended Redevelopment Agency Implementation Plan; approve resolution CLOSED SESSION 4. Pursuant to Government Code Section 54956.8 real property negotiations related to 178- 190 Airport Boulevard and 480 North Canal Street; Agency Negotiator: Redevelopment Agency Assistant Director Van Duyn ADJOURNMENT REGULAR REDEVELOPMENT AGENCY MEETING MARCH 26, 2003 AGENDA PAGE 2 Redevelopment Agency Staff Report DATE: March 26, 2003 TO: Redevelopment Agency Board FROM: Assistant City Manager SUBJECT: REDEVELOPMENT AGENCY AMENDED IMPLEMENTATION PLAN RECOMMENDATION: It is recommended that the Redevelopment Agency Board 1) conduct the public hearing and accept public comment regarding the proposed Amended Implementation Plan; and 2) hear staff presentation regarding Implementation Plan accomplishments; and 3) and approve the attached resolution adopting the Amended Implementation Plan for the City's four Redevelopment Project Areas. BACKGROUND/DISCUSSION: The California Community Redevelopment Law (the CRL) requires each redevelopment agency administering a redevelopment plan to prepare and adopt a Five Year Implementation Plan. The principal goal of the Implementation Plan is to guide an agency in implementing its redevelopment programs to help eliminate blighting influences. In addition, the affordable housing component of the Implementation Plan provides a mechanism for a redevelopment agency to monitor its progress in meeting both its affordable housing obligations under the CRL and the affordable housing needs of the community. In effect, the Implementation Plan is a guide, incorporating the goals, objectives and potential programs of an agency for the next five years, while providing flexibility so the agency may adjust to changing circumstances and new opportunities. This document constitutes the Implementation Plan for South San Francisco's four Redevelopment Project Areas; Downtown/Central Redevelopment Project Area, E1 Camino Corridor Redevelopment Project Area, Gateway Redevelopment Project Area and Shearwater Redevelopment Project Area. The Plan outlines the proposed program of revitalization, economic development, and affordable housing activities of the South San Francisco Redevelopment Agency for the required five year planning period, which includes fiscal years 1999/00 to 2003/04. The principal objective of the Plan is to establish a program that will link the Agency's activities directly with the elimination of blight. RESOLUTION NO. REDEVELOPMENT AGENCY, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION ADOPTING THE AMENDED IMPLEMENTATION PLAN FOR THE CITY'S FOUR REDEVELOPMENT PROJECT AREAS WHEREAS, it is recommended that the Redevelopment Agency Board adopt an Amended Implementation Plan for the City's four Redevelopment Project Areas, as attached hereto as Exhibit A; and WHEREAS, the Implementation Plan outlines the proposed program of revitalization, economic development, and affordable housing activities of the South San Francisco Redevelopment Agency for the required five year planning period, which includes fiscal years 1999/00 to 2003/04; and WHEREAS, the principal objective of the Plan is to establish a program that will link the Agency's activities directly with the elimination of blight; and WHEREAS, the Agency is required by California Law to conduct a review of its Plan during a mid term update; and WHEREAS, revisions reflect the Agency's accomplishments during the first two years; and WHEREAS, changes previously adopted in specific project area; and WHEREAS, goals with respect to each of the project areas; and WHEREAS, the Plan was noticed in accordance with State Law and the steps required for adoption have been completed. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of South San Francisco that the Redevelopment Agency hereby approves the adoption of an Amended Implementation Plan for the City's four Redevelopment Project Areas. 00 01 To: Redevelopment Agency Board Subject: Adoption of Implementation Plan March 26, 2003 Page 2 The Agency is required by California Law to conduct a review of its Plan during a mid term update. The general goals and policies established in the original plan have been maintained. Revisions have been made to reflect the Agency's accomplishments during the first two years; changes that have been adopted in specific project areas; and continuing direction with respect to each of the project areas. Major Statutory Provisions of CRL for Affordable Housing: The affordable housing requirements imposed on redevelopment agencies by CRL may be categorized generally as: Housing Production Requirement - specified minimum percentages of new or rehabilitated housing units in a project area are to be made available at a specified affordable housing cost. Replacement Housing Requirement - agencies must replace housing units removed from the housing stock as a result of redevelopment activities. Housing Fund Requirement - agencies are required to expend specified percentages of tax increment revenue for provision of affordable housing. Only the Downtown/Central and E1 Camino Corridor Project Areas have housing within their boundaries and need to meet the housing production requirements. The Gateway and Shearwater Project Areas have not produced, nor will produce, housing within their lifetimes, and therefore are not subject to Housing Production Requirements. Highlights of Accomplishments During the Last Two Years: There have been considerable housing and non-housing accomplishments in each of the four- project areas since the adoption of the Implementation Plan in 2000. The accomplishments over the past two years are highlighted in the Historical Activities and Agency Accomplishments section of the Plan for each of the four redevelopment project areas. The Agency has two and a half years to complete its goals and objectives as outlined in the Implementation Plan. This Amended Implementation Plan incorporates accomplishments to date and significant changes such as the completion of the Housing Element and the Amendment of the E1 Camino Corridor Project Area to include the Willow Gardens neighborhood and frontage along the E1 Camino Real. Additionally, the Amended Plan includes the adoption of the City's Inclusionary Housing Ordinance. The original Plan objectives remain in place until the expiration of the term of this Plan in 2003-04. At that time a new Implementation Plan will be drafted and adopted by the Agency Board in accordance with California Redevelopment Law. To: Redevelopment Agency Board Subject: Adoption of Implementation Plan March 26, 2003 Page 3 CONCLUSION: Staff has prepared and will present a power point presentation for the Agency Board to highlight major accomplishments during the last two years. The Implementation Plan has been noticed as required by State law during three successive weeks in the San Mateo Times and notices were posted in public places at four locations in each of the redevelopment project areas as required. It is recommended that the Redevelopment Agency Board approve the attached Resolution adopting the Amended Implementation Plan. Assistant City Manager Michael///~~ A. Wils~ Executive Director Attachments: Resolution Implementation Plan I hereby certify that the foregoing Resolution was regularly introduced and adopted by the Redevelopment Agency of the City of South San Francisco at a meeting held on the __ day of AYES: NOES: ABSTAIN: ABSENT: ,2003 by the following vote: ATTEST: S:\Current Reso's\3.26.03implementation.plan.res.doc Clerk u0 "12 AGENDA CITY COUNCIL CITY OF SOUTH SAN FRANCISCO REGULAR MEETING MUNICIPAL SERVICE BUILDING COMMUNITY ROOM MARCH 26, 2003 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 for the Minutes. COMMENTS ARE GENERALLY LIMITED TO FIVE (5) MINUTES PER SPEAKER. In the event that there are more than six persons desiring to speak, the Mayor may reduce the amount of time per speaker to three (3) minutes. Thank you for your cooperation. The City Clerk will read successively the items of business appearing on the Agenda. As she completes reading an item, it will be ready for Council action. PEDRO GONZALEZ Mayor KARYL MATSUMOTO Mayor Pro Tem JOSEPH A. FERNEKES Councilman RICHARD A GARBARINO Councilman RAYMOND L. GREEN Councilman BEVERLY BONALANZA-FORD City Treasurer SYLVIA M. PAYNE City Clerk MICHAEL A. WILSON City Manager STEVEN T. MATTAS City Attorney PLEASE TURN OFF CELL PHONES AND PAGERS HEARING ASSISTANCE EQUIPMENT AVAILABLE FOR USE BY THE HEARING IMPAIRED AT CITY COUNCIL MEETINGS CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE INVOCATION PRESENTATIONS · Emergency Preparedness Update- Emergency Coordinator Susan Kennedy · Caltrain CTX Bridge Construction Update - Joe Siino, Construction Manager · Colma Creek Project Update - Public Works Director John Gibbs · Budget Update - Finance Director Jim Steele AGENDA REVIEW PUBLIC COMMENTS ITEMS FROM COUNCIL · Community Forum · Subcommittee Reports CONSENT CALENDAR 1. Motion to approve the minutes of the March 12, 2003 special meeting 2. Motion to confirm expense claims of March 26, 2003 3. Motion to adopt an ordinance amending SSFMC Chapter 4.04, Purchasing System 4. Resolution awarding contract to American Asphalt R&R Inc. for the 2002-03 Street Slurry Seal Project in the amount of $ 94,133.21 5. Resolution authorizing the execution of Joint Powers Agreement continuing the City's participation in the City/County Association of Governments (C/CAG) ADMINISTRATIVE BUSINESS 6. Report from Community Outreach Director Heather Quinn on Quality of Life in South San Francisco 7. Resolution approving amendment to employment agreement with City Manager 8. Resolution supporting AB264 allowing school districts to use a portion of special reserve funds for operational expenses ADJOURNMENT REGULAR CITY COUNCIL MEETING MARCH 26, 2003 AGENDA PAGE 2 Mid-Term Review and Amendment of the FIVE YEAR IMPLEMENTATION PLAN CITY OF SOUTH SAN FRANCISCO REDEVELOPMENT PROJECT FEBRUARY 2003 CITY OF SOUTH SAN FRANCISCO REDEVELOPMENT AGENCY O0 ~3 TABLE OF CONTENTS Implementation Plan City of South San Francisco Redevelopment Project II. A. B. C. D. E. F. III. A. B. C. D. E. F. IV. A. B. C. D. E. South San Francisco Redevelopment Agency INTRODUCTION ...................................................................................... I-1 ORGANIZATION ........................................................ I - t INTERPRETATION ...................................................... ~ - 2 DOWNTOWN/CENTRAL PROJECT AREA ...................................... II-1 DESCRIPTION OF REDEVELOPMENT PROJECT AREA ........................... I I - t PROJECT AREA GOALS & OBJECTIVES ...................................... I I - 3 HISTORICAL ACTIVITIES & AGENCY ACCOMPLISHMENTS ...................... I I - 5 FIVE YEAR PLANNING PERIOD REVENUES ................................. r I - 10 PROPOSED FIVE YEAR NON-HOUSING PROGRAMS & AGENCY EXPENDITURES ..... I I- 11 LINKAGE BETWEEN PROGRAMS & ELIMINATION OF BLIGHTING INFLUENCES ..... I I - 1 l EL CAMINO CORRIDOR PROJECT AREA .................................... III-1 DESCRIPTION OF REDEVELOPMENT PROJECT AREA .......................... 1- I I - 1 PROJECT AREA GOALS & OBJECTIVES ..................................... I I I- 3 HISTORICAL ACTMTIES & AGENCY ACCOMPLISHMENTS ..................... I I I-7 FIVE YEAR PLANNING PERIOD REVENUES ................................. I I I- 8 PROPOSED F1VE YEAR NON-HOUSING PROGRAMS & AGENCY EXPENDITURES ..... I I I - 9 LINKAGE BETWEEN PROGRAMS & ELIMINATION OF BLIGHTING INFLUENCES .... I I I - 11_ GATEWAY PROJECT AREA ............................................................. IV-1 DESCRIPTION OF REDEVELOPMENT PROJECT AREA ........................... Iv- l PROJECT AREA GOALS & OBJECTIVES ...................................... Iv-4 HISTORICAL ACTIVITIES & AGENCY ACCOMPLISHMENTS ...................... Iv-S FIVE YEAR PLANNING PERIOD REVENUES .................................. xv-8 PROPOSED FIVE YEAR NON-HOUSING PROGRAMS & AGENCY EXPENDITURES ...... IV-9 ± 1999 Five Year Imple~nefitation Plan 2002 Mid-Tem~ Update 00 C} 4 F. LINKAGE BETWEEN PROGRAMS & ELIMINATION OF BLIGttTING INFLUENCES ..... I V- 10 A. B. C. D. E. F. VI. A. B. C. Eo F° S}IEARWATER PROJECT AREA ........................................................ V-1 DESCRIPTION OF REDEVELOPMENT PROJECT AREA ............................ V- 1 PROJECT AREA GOALS & OBJECTIVES ....................................... v- 3 HISTORICAL ACTIVITIES & AGENCY ACCOMPLISHMENTS ....................... V- 4 FIVE YEAR PLANNING PERIOD REVENUES ................................... v-? PROPOSED FIVE YEAR NON-HOUSING PROGRAMS & AGENCY EXPENDITURES ....... v- ? LINKAGE BETWEEN PROGRAMS & ELIMINATION OF BLIGHTING INFLUENCES ....... v- ~ AFFORDABLE HOUSING ACTIVITIES ................ : ......................... VI-1 IMPLEMENTATION PLAN REQUIREMENTS: HOUSING ACTIVITIES ................. vt- I MAJOR STATUTORY PROVISIONS OF CRL FOR AFFORDABLE HOUSING ............ VI - 1 AFFORDABLE HOUSING PRODUCTION (INCLUSIONARY) OBLIGATIONS- DOWNTOWN/CENTRAL PROJECT AREA ..................................... v I - ? AFFORDABLE HOUSING PRODUCTION (INCLUSIONARY) OBLIGATIONS- EL CAMINO CORRIDOR PROJECT AREA ............................................. vi - 14 POTENTIAL OPPORTUNITIES FOR HOUSING PRODUCTION 1N THE REDEVELOPMENT PROJECT AREAS ...................................................... vi-2 0 GOALS, OBJECTIVES AND PROGRAMS ..................................... vi- 2 2 HOUSING SET-ASIDE FUND ............................................. vi- 2 ? FIVE YEAR PRODUCTION GOALS ......................................... vi- 3 0 South San Francisco Redevelopment Agency 1999 Five Year Implementation Plan 2002 Mid-Term Update 00 TABLE OF CONTENTS (CONTINUED) LiSt Of Figures and Tables FIGURES FIGURE II- 1 FIGURE III- 1 FIGURE IV- 1 FIGURE V- 1 DOWTOWN/CENTRAL REDEVELOPMENT PROJECT AREA MAP ............. I 1-2 EL CAMINO CORAtlDOR REDEVELOPMENT PROJECT AREA MAP ........... I I I-2 GATEWAY REDEVELOPMENT PROJECT AREA MAP ...................... IV- 3 SHEARWATER REDEVELOPMENT PROJECT AREA MAP .................... v- 2 TABLES TABLE II- 1 TABLE II-2 TABLE II-3 TABLE 11-4 TABLE 1I-5 TABLE III- 1 TABLE 1II-2 TABLE III-3 TABLE III-4 TABLE III-5 TABLE IV-1 TABLE IV-2 TABLE IV-3 TABLE IV-4 TABLE IV-5 TABLE V- 1 TABLE V-2 TABLE V-3 TABLE V-4 TABLE V-5 TABLE VI-1 TABLE VI-2 TABLE VI-3 'FABLE VI-4 TABLE VI-5 TABLE VI-6 TABLE VI-7 TABLE VI-8 TABLE VI-9 TABLE VI- 10 TABLE VI- 11 SUMMARY DESCRIPTION OF PROJECT AREA ........................... NON-HOUSING PROGRAM ACTIVITIES ................................ CROSSWALK BETWEEN REDEVELOPMENT GOALS AND PROGRAM ACTIVIT1ESI~RROR! SUMMARY OF TAX INCREMENT PROJECTIONS OVER THE FIVE YEAR PLANNING PERIOD .............................................. PROPOSED NON-HOUSING PROGRAM ACTIVITIES ...................... I SUMMARY DESCRIPTION OF PROJECT AREA AND PROPOSED AMENDMENT . I NON-HOUSING PROGRAM ACTIVITIES ............................... CROSSWALK BETWEEN REDEVELOPMENT GOALS AND PROGRAM ACTIVITIES I SUMMARY OF TAX INCREMENT PROJECTIONS OVER THE FIVE YEAR PLANNING PERIOD .................................... I PROPOSED NON-HOUSING PROGRAM ACTIVITIES ..................... I I SUMMARY DESCRIPTION OF PROJECT AREA ........................... NON-HOUSING PROGRAM ACTIVITIES ................................ CROSSWALK BETWEEN REDEVELOPMENT GOALS AND PROGRAM ACTIVITIES GATEWAY PROJECT AREA ...................... SUMMARY OF TAX INCREMENT PROJECTIONS OVER THE FIVE YEAR PLANNING PERIOD ..................................... PROPOSED NON-HOUSING PROGRAM ACTIVITIES ....................... SUMMARY DESCRIPTION OF PROJECT AREA ............................ NON-HOUSING PROGRAM ACTIVITIES ................................. CROSSWALK BETWEEN REDEVELOPMENT GOALS AND PROGRAM ACTIVITIES SUMMARY OF TAX INCREMENT PROJECTIONS OVER TIlE FIVE YEAR PLANNING PERIOD ........................................................ PROPOSED NON-HOUSING PROGRAM ACTIVITJES ........................ 1999 SAN MATEO COUNTY MAXIMUM INCOMES ........................ AFFORDABLE HOUSING NEED (REGIONAL FAIR SttARE) BY INCOME CATEGORY ............................................. HOUSING PRODUCTION SUMMARY ................................. vi HOUSING PRODUCTION & AFFOKDABLE OBLIGATION HISTORICAL AND PROJECTED DOWNTOWN/CENTRAL PROJECT AREA .................... vi REPLACEMENT HOUSING OBLIGATION .............................. VI HOUSING PRODUCTION SUMMARY ................................. VI HOUSING PRODUCTION AND AFFORDABLE OBLIGATION ................ vi HOUSING FUND EXCESS SURPLUS .................................. vi FUNDS AVAILABLE FOR AFFORDABLE HOUSING ...................... vi PROJECTED EXPENDITURES ...................................... vi UNITS PRODUCED WITH HOUSING FUNDS AND PROPORTION BY INCOME CATEGORY ............................................ vi BOOKI~Ai~ South San Francisco Redevelopment Agency iii 1999 Five Year hnplementation Plan 2002 Mid-Term Update ,00 TABLE OF COMTEMTS (CO~TIMUEB) Appendices Appendix A-1 Appendix A-2 Appendix A-3 Appendix A-4 Tax Increment Projections - Downtown/Central Project Area Tax increment Projections - El Camino Corridor Project Area Tax Increment Projections - Gateway Project Area Tax Increment Projections ~ Shearwater Project Area South San Francisco Redeveloplnent Agency iv 1999 Five Year hnplementation Plan 2002 Mid-Term Update O0 O I. INTRODUCTION The California Community Redevelopment Law (the "CRL") requires each redevelopment agency administering a redevelopment plan to prepare and adopt a five year hnplementation Plan. The principal goal of the Implementation Plan is to guide an agency in implementing its redevelopment programs to help eliminate blighting influences. In addition, the affordable housing component of the Implementation Plan provides a mechanism for a redevelopment agency to monitor its progress in meeting both its affordable housing obligations under the CRL and the affordable housing needs of the community. In effect, the Implementation Plan is a guide, incorporating the goals, objectives and potential programs of an agency for the next five years, while providing flexibility so the agency may adjust to changing circumstances and new opportunities. State law also requires that Redevelop~nent Agencies conduct a mid-term review of the plan. This document constitutes the Implementation Plan and mid-term review for South San Francisco's four redevelopment Project Areas. 1. Downtown/Central Redevelopment Project Area; 2. E1 Camino Corridor Redevelopment Project Area; 3. Gateway Redevelopment Project Area; and 4. Shearwater Redevelopment Project Area. This Revised Implementation Plan summarizes the South San Francisco Redevelopment Agency's programs for revitalization, economic development, and affordable housing activities for the last two and one half years of the planning period, which includes fiscal years 1999/00 to the end of 2002, and projects activity through 2003/04. In addition, information for later years is also provided where it is required. A. ORGANIZATION Generally, the Implementation Plan must contain the following information: · Specific goals and objectives for the next five years for both housing and non-housing activities. · Specific programs and expenditures for the next five years for both housing and non-housing activities. · An explanation of how the goals, objectives, programs and expenditures will assist in the elimination of blight and in meeting affordable housing obligations. · Other information related to the provision of affordable housing, as discussed in Chapter VI. The requirements of an Implementation Plan listed above fall under two broad categories of redevelopment activities. Consequently, the remainder of this hnplementation Plan is organized South San Francisco Redevelopment Agency 1999 Five Year Implementation Plan 2002 Mid-Tem~ Update into two principal parts. Chapters II, III, IV and V set forth the requirements for general or non- housing activities and related expenditures. Chapter VI addresses affordable housing activities and expenditures and charts Agency progress in meeting its aftbrdable housing obligations. Chapter VI also includes the Affordable Housing Production Plan (also lmown as the AB 315 Plan). B. INTERPRETATION This hnplementation Plan is intended to provide general guidance for the implementation of the Agency's programs and activities. It is expected that particular constraints and opportunities, not fully predictable at this time, will arise in the course of undertaking the programs and activities described in this Implementation Plan. Therefore, the Agency intends to use and interpret this Implementation Plan as a flexible guide. The Agency acknowledges that specific programs and activities implemented over the next five years may vary in their precise timing, location, cost, expenditure, scope and content from that set forth in this document. The programs and expenditures contained in this hnplementation Plan are in part based on certain assumptions made by the Agency relating to revenues, market conditions, community needs and priorities, and developer interests, among others. Consequently, should Agency assumptions not be realized or unforeseen circumstances arise, additional mid-course modifications in programs and this Implementation Plan may be required. South San Francisco Redevelopment Agency 1-2 1999 Five Year ImpleJnentation Plan 2002 Mid-Term Update ,00 II.DOWNTOWN/CENTRAL PROJECT AREA A. DESCRIPTION OF REDEVELOPMENT PROJECT AREA The Downtown/Central Redevelopment Project Area (Project Area) consists of 550 acres of predominantly urbanized areas within the City of South San Francisco. The 550 acres have been subdivided into about 450 separate parcels with industrial, commercial, residential and public uses. As a result of the historical industrial subdivision system, there are numerous large parcels in the Project Area. The Project Area contains a majority of the City's industrial users, as well as offices, warehouses, distribution centers, and high technology finns. The area is in transition from a core of industry, formed primarily of large manufacturing plants, to an area with a diversity of finns. At the time of Plan adoption, the following distribution of land use was found in the area: 33 percent industrial; 28 percent commercial; 13 percent residential; with the remaining 26 percent in street and freeway right- of-way, vacant and public/institutional uses. The Project Area was adopted by the City Council in Ordinance No. 1056-89, dated July 12, 1989. The South San Francisco Redevelopment Agency is responsible for implementation of the redevelopment plan. Table II-1 briefly summarizes the characteristics of the Project Area. Figure II-1 shows the Project Area boundaries. Table II-1 Summary Description of Project Area Downtown/Central Redevelopment Project Acres 550 Adopted July 12, 1989 Base Assessed Value $230,960,897 Time Limits under AB 1290 Incurring Debtj Project Activities Tax Increment Receipt July 12, 2009 July 12, 2029 July 12, 2039 Financial Limits Tax Increment Cap Bond Limit $248,0O0,00O $90,000,000 t May be extended for ten years to eliminate blight by amending the Plan. South San Francisco Redevelopment Agency I!r- 1 1999 Five Year Implmnentation Plan 2002 Mid-Term Update O0 10 Figure 1I-1 Dowtown/Central Redevelopment Project Area Map i Subarea~ Figure II-1 Downtown/Central Redevelopment Project Area Map South San Francisco Redevelopment Agency I1-2 1999 Five Year hnplementation Plan 2002 Mid-Term Update ,00 11 The Downtown/Central Project Area is composed of nine subareas. Five of the subareas are contiguous. · Subarea 1 is located within the downtown area of the City. · Subarea 2A (Sierra Point) located on San Francisco Bay, consists of a large parcel and is now in the process of being developed for office and hotel uses. Subarea 2B is an area between the Southern Pacific railroad tracks and the US 101 Freeway. Subarea 2C consists of three parcels and some public right-of-way. Two of the parcels are developed with a drilling firm and a waste disposal transfer station. The third is a sloping parcel, which has recently been developed with 105,000 square feet ofbiotech use. Subarea 3 consists of an older part of the City near the downtown area historically used for industrial purposes such as train yards. Infrastructure upgrading is needed to make these properties compatible for warehouse and office space. Subarea 4 contains some of the older areas, presently consisting of junk yards that have long been nonproductive and a mixture of manufacturing uses in the East of 101 Area. Subarea 5 consists mainly of the City's waste treatment facility, oil storage tanks and several undeveloped parcels. Subarea 6 represents some of the larger undeveloped parcels in the Downtown/Central Project Area. 2 B. PROJECT AREA GOALS & OBJECTIVES 1. Goals and Objectives The Implementation Plan provisions of the CRL require the Agency to establish goals and objectives for the Project Area for the five year planning period. Following are the major goals and objectives to be pursued by the Agency, as originally set forth in the Redevelopment Plan. a. Goals 1. Promote Downtown's vitality and economic well being, and its presence as the City's center. 2. Encourage development of Downtown as a mixed-use activity center with retail and visitor- oriented uses, business and personal services, government and professional offices, civic uses, and a variety of residential types and densities. 3. Create a pedestrian environment to encourage multiple stops by visitors and more frequent visits to the Downtown. 2 Redevelopment Consultant's Report on Project Tax Increment Revenues for the Gateway Redevelopment Project Area and other Redevelopment Projects in South San Francisco, Beyer & Associates, February 2, 1999, page 5-6. Included in the 1999 Revenue Bonds, Series A (South San Francisco Redevelopment Projects), City of South San Francisco Capital Improvements Financing Authority, February 17, 1999. South San Francisco Redevelopment Agency II-3 1999 Five Year Implementation Plan 2002 Mid-Term Update O0 lo 4. Achieve an environment reflecting a high level of concern for architectural, landscape, and urban design and land use principles. 5. Retain and expand as many existing businesses as possible by means ofredevelop~nent and rehabilitation activities and by encouraging and assisting the cooperation and participation of owners, businesses and public agencies. 6. Encourage maximum participation of residents, businesspersons, property owners, and community organizations in the redevelopment of the Project Area. 7. Create and develop local job opportunities and preserve the area's existing employment base. 8. Replan, redesign and develop areas that are stagnant or improperly used. b. Objectives Programs that will facilitate reaching the Redevelopment Project's goals include: 1. Provide incentives for infill development, intensification and reuse of currently underutilized sites. 2. Enhance linkages between Downtown and transit centers, and increase street connectivity with the surrounding neighborhoods.3 3. Expand the retail component of the Downtown, provide diversification of offerings and encourage major outlets as a draw to new shoppers. 4. Continue support of the various cultural and civic uses that provide major anchors, stressing special events that draw new attendees. 5. Promote the area as the financial hub, encouraging existing institutions to expand both physically and with related services. 6. Eliminate blight through reconstruction and assembly of parcels into more developable sites for more desirable uses. 7. Improve public parking, other public facilities, services, utility lines, lighting, public safety and public transportation. 8. Emphasize the existing architectural style and scale through rehabilitation of historic structures and encouraging in-fill development that relates to existing structures. 9. Promote new and continuing private sector investment within the Project Area to prevent the loss of and to facilitate commercial and industrial activity. 2. Programs The Agency will undertake four basic programs in the Project Area to alleviate blighting conditions and attain these goals: · Public Infrastructure. Improvement, construction and reconstruction of major public systems such as streets and roads, parking lots, and water, sewage and storm drainage systems. Goals 1 and 2 and Objectives 1 and 2 are from the City of South San Francisco, South San Francisco General Plan Hearing Draft, July 1999, page 3-6. II-4 1999 Five Year hnplementation Plan 2002 Mid-Term Update LO0 South San Francisco Redevelopment Agency · Public Facilities. Repair, rehabilitation, installation, acquisition and improvmnent of parks, playgrounds, libraries, and other public buildings ancl structures, including a community learning center and cultural facility. · Economic Development. Activities and programs designed to strengthen existing commercial enterprises and shopping areas, and to attract new businesses and shoppers. · Property Acquisition, Site Preparation and Clean up. Purchase, improvement and clean up of property to promote and support South San Francisco's redevelopment efforts. These program activities are described in Table II-2. Table II-3 correlates these project activities to the non-housing redevelopment goals stated above. C. HISTORICAL ACTIVITIES & AGENCY ACCOMPLISHMENTS The Historical Activities and Agency Accomplishments section is divided into two parts in this report: Historical Activities and Accomplishments fi'om the creation of the project area through 1998/99 and Historical Activities and Accomplislnnents fi'om 1999/00 through the end of 2002. Historical Activities and Accomplishments 1989/90 through 1998/99 Many projects and activities have been undertaken in the Project Area since 1989. The Agency has been active in facilitating the improvements of more than forty buildings within the Downtown/Central Project Area.4 The Downtown/Central Redevelopment Project has encouraged the development of research and development and high-tech industrial uses. The Britannia Pointe Grand Business Park has played a key role as a biotechnology complex which has attracted companies, such as Sugen, Rigel, and Exilixis. The following is a list of projects and activities accomplished over the last five years: Pnblic Infrastructure Street and Circulation hnprovements · Added green areas to infill lots surrounding the Downtown. Completed major landscaping and street medium improvement project on Airport Boulevard, including adding large box trees and landscaping fi'om Grand Avenue to Hillside to soften the impact of the roadway. · Provided low interest rate loans to ten small businesses for fagade and seismic retrofit improvements. 1999 Revenue Bonds, Series A (South San Francisco Redevelopment Projects), City of South San Francisco Capital Improvements Financing Authority, February 17, 1999, page 20. South San Francisco Redevelopment Agency II-5 1999 Five Year Implementation Plan 2002 Mid-Term Update c00 14 Program Activities Public Infrastructure Street and Circulation Improvements Public Utilities Parking Improvements Storm Drainage and Related Improvements Public Facilities Facilities Improvements Parks and Recreation Public Transportation Economic Development Business Enhancement, Retention and Expansion Table 11-2 Non-Housing Program Activities Downtown/Central Project Area Description Construct and/or upgrade cm'bs, gutters, sidewalks, landscaping, and railroad crossings on streets such as Railroad and Grand. Replace and upgrade traffic signals and overcrossings. East Grand Avenue Utility Undergrounding Parking lot improvements, including a potential parking structure Construct and/or upgrade sanitary sewer lines, storm drains and sanitary sewer pinups; upgrade water quality control treatment plant. Improve Harbor Way area infrastructure, including new sewer, sto~Tn drain systems and the undergrounding of all utilities. Relocate Downtown Fire Station. Create community learning center. Create a public market. Develop day care facility. Develop a cultural arts center. Paradise Valley Recreation Center, the playlot at Cypress/Pine and Pecks, and the pedestrian plaza on Cypress Avenue from Baden to Miller Avenue. Develop transit oriented improvements such as train, shuttle, and/or ferry. Construct CalTrain Station/Airport Blvd. intermodal transportation center. Strengthen existing commercial enterprises and shopping areas and attract new businesses and shoppers. Business Assistance/Subsidy Program to assist commercial business owners to eliminate code deficiencies and otherwise improve their properties through a rehabilitation loan program and fagade improvement program. Facade improvements to health care service facility at 306 Spruce Ave. Develop and implement a Downtown Strategy Plan focused on new retail, offices and housing, including: · Supporting the construction of 1-2 office buildings · Enhancing housing opportunities · Extending the CalTrain Station platform to make it more accessible to Grand Ave. · Creating a pedestrian-fi'iendly connection to Grand Avenue and Airport Blvd. Property Acquisition, Site Preparation and Clean-up Property Acquisition, Conduct property acquisition for disposition to developers for productive reuse. Site Preparation and Provide relocation assistance to any residents or businesses displaced due to Clean-up redevelopment activities. Cal Trans Maintenance Facility Acquisition. Land acquisition for parking lot improvements. Enter into an Exclusive Negotiating Rights Agreement (ENP, A) with the Giorgi Brothers to develop a new 47,000 SF, two level furniture store. Exchange two parcels, owned by the City and Agency for one parcel owned by the Giorgi Brothers. Conduct a feasibility analysis of this transaction. Source: Report to City Council on the Proposed Redevelopment Plan for the Downtow~ffCentral Redevelopment Project, May 1989. Updated with information from the Amended Implementation Plan, Redevelopment Agency, February 11, 1998 and the Redevelopment Consultant's Report on Project Tax Increment Revenues, Beyer & Associates, February 2, 1999. Included in the 1999 Revenue Bonds, City of South San Francisco Capital Improvements Financing Authority, February 17, 1999. South San Francisco Redevelopment Agency I1-6 1999 Five Year hnplementation Plan 2002 Mid-Term Update ',;00 1 5 Table 1I-3 Crosswalk Between Redevelopment Goals and Program Activities Downtown/Central Project Area Redevelopment Goal Program Activities Promote Downtown's vitality and economic well- Property Acquisitiou, Site Public hffra- Public Economic Preparation and strncture Facilities Development Clean-Up · · · · Encourage development of Downtown as a mixed- use activity center with retail and visitor-oriented uses, business and personal services, government and · professional offices, civic uses, and a variety of Create a pedestrian environment to encourage multiple stops by visitors and more frequent visits to · · · Downtown. Achieve an enviromnent reflecting a high level of concern for architectural, landscape, and urban · · 1 Retain and expand as many existing businesses as possible by means of redevelopment and rehabilitation activities and by encouraging and · assisting the cooperation and participation of owners, b_ u_ s_i ')_ _e s s~e s_ a__n_d_ P Eb_ ! !_c_ag .e_ n_ ~ ~ ~e_s .~ Encourage maximum participation of residents, business persons, property owners, and commnnity · · · · organizations in the redevelopment of the Project Area. Create and develop local job opportunities and · · reserve the area's existing employment b.a_se Replan, redesign and develop areas which are stagnant or improperly used. · · · I Source: Redevelopment Plan for tim Downtown/Central Redevelopment Project, South San Francisco Redevelopment Agency, July 1989. South San Francisco Redevelopment Agency 1I-7 1999 Five Year Implementation Plan 2002 Mid-Term Update Parking Improvements · Worked with downtown businesses to improve parking. · Added approximately 50 additional parking spaces in the Downtown. · Acquired 200 Linden, including 22 public parking spaces. Painted and rehabilitated bank building. · Completed negotiations on a lease agreement for the City/Agency land at the "finger piers" fur at grade parking near the San Francisco International Airport. Acquired and improved 432 Baden and 124 Linden Ave. for parking. Public Facilities · Completed the Grand Avenue library retrofit project. · Acquired a Quonset hut building, relocated an auto body shop and rehabilitated the building for a community theater group. · Entered into agreement with San Mateo County Health Services to provide a range of health care services from the recently acquired and renovated 306 Spruce Avenue building. Economic Development · Entered into an agreement with Tetxanomics/Metrovation for the development and implementation of a Downtown Strategy plan. · Completed the seismic retrofit of the Metropolitan Hotel and its 32 SRO units. The Bacchanal Restaurant opened in the Metropolitan Hotel in July 1999. · Provided over $3 million dollars in low interest rate loans for seismic retrofitting of four historic buildings and hotels, enabling the retention of over 100 residential units in the Downtown/Central Area. Provided low interest rate loans for: - Retrofitting of Al's Auto Body Shop on Airport Blvd. - Rehabilitation of the Coast Gas facility on 905 Linden Ave. - Roofing repair on a commercial building at 600 Linden Ave. - Seismic retrofitting and rehabilitation ora URM cmmnercial building at 211 Linden Avenue, adding 2,500 square feet of retail inventory and the restoration of an historic building. - Seismic retrofitting of restaurant on 235 Grand Ave. · Contributed $200,000 for frontage improvements for Trammel Crow's two recently completed bioteclmology and E-commerce buildings on Oyster Point Boulevard. · Committed funds to acquire a 14,500 square foot three-stm3, office building to house several community health and social service agencies to better se~we Downtown/Central area residents. · Entered into a Disposition and Development Agreement with Britannia Point Grande Limited Partnership to replace metal dysfunctional buildings and vacant property in the Harbor Way area (Subarea 4) with new biotech buildings. South San Francisco Redevelopment Agency II~8 1999 Five Year hnplementation Plan 2002 Mid-Term Update · Began negotiations with Brittania, Inc. to share a portion of the costs of the extensive infrastructure upgrade needed in this area. · Several new buildings have been constructed, including: - Sugen Headquarters 106,368 square feet - Sugen's 48,400 square foot two-story addition commenced construction in 1999 - Sugen's 57,100 square foot three-story building commenced construction in 1999 - Rigel 60,964 square feet - Exilixis 50,200 square feet - Exilixis at 70,000 square feet ., Property Acquisition, Site Occupant Relocation, Demolition and Site Preparation · Acquired205 Baden. · Acquired 616 Linden. · Acquired the 306 Spruce Ave. office building to serve as a medical facility. Upgraded building internally and planned facade improvements.~ · Toxic remediation has been completed on the 29 acres at Sierra Point acquired by Opus Development Company. Construction has commenced on a 140,000 square foot building by MJ Research. · Acquired 124 Linden (parking lot), 432 Baden (parking lot), 905 Linden (green spot) and 700 Linden (green spot). Historical Activities and Accomplishments 1999/00 through 2002 Public Infrastructure · Developed 12 new parking spaces at 201 Grand Avenue. · Developed 20 new parking spaces at 616 Linden Avenue · Obtained new equipment to stemn clean downtown sidewalks. · Resurfaced Airport Boulevard. · Upgraded parking meters in the Downtown Parking District. · Developed plans for the CalTrain Station relocation and transit center. Public Facilities · Completed interior and exterior remodel of 306 Spruce Building for health clinic operated by San Mateo County Department of}tealth Services. s South San Francisco Redevelopment Agency. Amended Five Year Implementation Plan, City of South San Francisco Redevelopment Agency, February 1998, page A-1. Redevelopment Consultant's Report on Project Tax hmrement Revenues for the Gateway Redevelopment Project Area and other Redevelopment Projects in South San Francisco, Beyer & Associates, February 2, 1999. South San Francisco Redevelopment Agency II~9 1999 Five Year hnplementation Plan 2002 Mid-Term Update Economic · Acquired and improved 905 Linden Avenue as a neighborhood green area. Rehabilitated the old Spruce School Gym to create a new Community Learning Center. Development Approved a 105,000 SF five story office building at 180 Oyster Point Blvd. Approved a 155,000 SF five story office building at 200 Oyster Point Blvd. Through a disposition and development agreement approved the construction of a new 45,000 SF filrniture store at the corner of Baden and Linden Avenues with Giorgi Brothers Furniture · Completed construction of 5000-7000 Shoreline Court for three three-story office buildings of 140,000 SF each totaling 420,000 SF. · Completed construction of 4000 Shoreline Court of a four-story office building of 67,806SF over parking garage. · Under construction Britannia East Grand: 785,000 square feet R&D/Office, 8,000 square feet childcare, 5,000 square feet fitness center, and 8,000 square feet retail · Under Construction Genentech Founders Research Center II: 287,000 square feet R&D. · Approved Genentech Building 32:125,000 square feet Office · Under Construction Alexandria Real Estate Equities (East Jamie Court): 133,000 square feet R&D/Office. · Under Construction Sugen, phase Iil: 48,391 square feet R&D/Office. · Approved Stuhlmuller Property Company: 105,000 square l~eet R&D/Office. · Hired an ombudsman to assist businesses and homeowners. Property Acquisition, Site Occupant Relocation, Demolition and Site Preparation · Acquired 201 Grand Avenue · Acquired 212 Baden Avenue in a land exchange with Giorgi Brothers Furniture. D. FIVE YEAR PLANNING PERIOD REVENUES Over the 'next two and one-half years, the Agency will undertake those activities that can be financially supported by its revenue stream. The Agency's revenue source is annual tax increment revenues. Tax increment revenues generated in the Project Area during the five yea]' plmming period are projected by the Agency to contribute approximately $4.38 million towards non-housing improvement project costs in present value, FY 1999/00 dollars. The tax increment projections for each Project Area were prepared based on the tax increment projections provided in the Fiscal Consultant's Report for the 1999 Revenue Bonds, Series A, and are considered conservative estimates of potential revenue. South San Francisco Redevelopment Agency B-10 1999 Five Year hnplementation Plan 2002 Mid-Tema Update .00 Table 11-3 Summary of Tax Increment Projections over the Five Year Planning Period Downtown/Central Project Area6 Year Net TI After Obligations FY Ending 2000 $205,814 FY Ending 2001 $396,358 FY Ending 2002 $187,626 FY Ending 2003 $1,200,000 FY Ending 2004 $1,390,726 Total $4,380,524 Source: South San Francisco Redevelopment Agency Refer to the table in Appendix A for detailed tax increment projections. PROPOSED FIVE YEAR NON-HOUSING PROGRAMS & AGENCY EXPENDITURES The Agency has developed programs to implement its goals and objectives during the five year Implementation Plan period. They are presented along with estimated expenditures in Table II-5. These programs and activities are part of the overall development and redevelopment strategy for the Downtown/Central Redevelopment Project. The estimated cost of the five year program of activities summarized in Table II-5 is approximately $17.7 million. The $17.7 million in program costs is significantly more than the estimated Agency five year revenues for non-housing activities of approximately $4.38 million as summarized in the preceding section. Thus, the Agency currently anticipates that other funds will be needed in order to undertake all of the proposed non-housing activities. LINKAGE BETWEEN PROGRAMS & ELIMINATION OF BLIGHTING INFLUENCES Many of the issues facing these areas when the Redevelopment Project was established still remain. Properties with underutilized uses, small parcels and some toxic contamination continue to exist. The Agency's program of redevelopment activities is designed to systematically address the blighting conditions within the Project Area. The alleviation of blighting influences in the Project Area will create an investment environment in which private developers and property owners have the incentive and the means to redevelop their properties. The Agency's programs will continue to be active in alleviating blight in the following areas: 6 Rounded to the nearest $10,000. South San Francisco Redevelopment Agency II-11 1999 Five Year hnplementation Plan 2002 Mid-Term Update 20 Table II-4 Proposed Non-Housing Program Activities Downtown/Central Project Area Program Activities Five Year Projected Costs Public Infrastructure Street and Circulation hnprovements: Construct and/or upgrade curbs, gutters, $300,000 sidewalks, landscaping and railroad crossings on streets such as Railroad and Grand. Replace and upgrade traffic signals and overcrossings $300,000 Public Utilities: East Grand Ave. Utility Undergrounding $430,000 Parkh~g lot improvements, including a potential parking structure $1,500,000 hnprove Harbor Way area infrastructure, iucluding new sewer, stom~ drain $850,000 systems and the undergrounding of all utilities. Public Facilities Relocation of Downtown Fire Station $2,000,000 *Creation of commuuity learning center. $1,500,000 *Paradise Valley Recreation Center $25,000 *Playlot at Cypress/Pine and Pecks $100,000 Pedestrian plaza on C~,press Ave. from Baden to Miller Ave. $500,000 Day Care Facility development $500,000 Creation of a Public Market $100,000 ........... ;F'r' ~'i~';'r~'t-e- ~!' Imp r o v m~t'~i~--~ h' ~- t ~-'a~'~ i ~,l;~iiil¢['C~-v ............................................................................ ~i"1'666'1666 CalTrain Station/Airport. Blvd. inter-modal transportatiou center $1,500,000 Development of a cultural arts center $2,000,000 Economic Development Business Assistance/Subsidy Program, including a Rehabilitation Loan Program $750,000 *Facade improvements to health care service facility at 306 Spruce Ave. $350,000 Other Building Faoade Improvements $500,000 Downtown Strategy Plan and Improvements $600,000 Property Acquisition, Site Preparation and Clean-up Property acquisition fro' disposition to developers for reuse. $1,000,000 Relocatiou assistance to any residents or businesses displaced due to $200,000 redevelopment activities. Col Trans Maintenance Facility Acquisition $1,400,000 *Land acquisition for parking lot improvements $300,000 TOTAL $17,705,000 * Completed as of this mid-term Plan update Source: _,Mnended Implementation Plan, Redevelopment Agency, February 11, 1998, page A-2. South San Francisco Redevelopment Agency. South San Francisco Redevelop~nent Agency 11-12 1999 Five Year Implementation Plan 2002 Mid-Term Update ,00 21 1. Public Infrastructure Programs are needed to alleviate blighting conditions in public infi'astrucmre. Commuter and through traffic in the Project Area is rapidly approaching a pressure point due to shifting land uses, diversification of the economic base and the corresponding mobility needs of City residents, workers and visitors. Inadequate access and traffic congestion are problematic at various points in the Project Area. In addition, the City of South San Francisco and its Parking Place Commission are laced with a growing demand for parking in the Downtown/Central area. Improvement and/or construction of storm drains and sewers is also needed. The Agency's programs in public infi'astmcture, as outlined in Table II-2, are aimed at improving transportation, circulation and parking deficiencies by the reconstruction and construction of streets, new traffic signals and added parking facilities. The programs also include storm drainage and related improvements. 2. Public Facilities Many of the Project Area's public facilities are in need of improvement. The Agency's activities over the five year planning period include improvement of parks, transit and other public facilities which will have a positive impact on the physical environment and serve as a catalyst for private investment in the Downtown/Central Project Area. 3. Economic Development Retail sales in the Downtown/Central Area, as a percentage of total San Mateo countywide retail sales, have been in a state of decline. The Agency's programs in business enhancement, retention and expansion and the Downtown Strategy programs will help enhance the retail development of the Project Area. The Agency's program activities in commercial rehabilitation will continue to assist businesses with minor and major rehabilitation. This is a pressing need in the Project Area, which is characterized by the existence of buildings and structures that are in varying states of deterioration, are obsolete and, in certain cases, are unfit or unsafe to occupy. 4. Property Acquisition, Site Preparation and Clean-up The Project Area is characterized by lots ofiixegular form, shape and size, resulting fi'om a historical pattern of industrial subdivision. The Project Area bas a fragmented parcelization system with numerous oversized parcels, irregularly formed and shaped parcels, and landlocked parcels (i.e., parcels enclosed by other parcels without direct access to a public right-of-way). The prevalence of in'egular lot sizes is a barrier to private sector investment in the area. Clean-up of the shoreline is also needed to alleviate contamination problems resulting fi-om industrial wastes, including metal deposits, methane gas deposits and "mud boils." The Agency's property South San Francisco Redevelopment Agency II-13 1999 Five Year Implementation Plan 2002 Mid-Term Update L00 acquisition, site preparation and clean-up program will help alleviate these problems. The Agency may acquire lots of irregular form, shape and size for assembly into parcels suitable for development and fund rehabilitation programs for contaminated parcels. Several parcels in the Project Area are in the process of being analyzed and remediated. The biotech development in Subarea 4 has eliminated major blighting conditions consisting of toxic contamination, derelict buildings and underutilized property. Opus Development has mitigated major toxic contamination in the 26 acres it acquired in Subarea 2A and new development has recently been completed over the past two and one-half years. South San Francisco Redevelopment Agency I[-14 1999 Five Year Imple~nentation Plan 2002 Mid-Term Update 00 ")3 III.EL CAMINO CORRIDOR PROJECT AREA A. DESCRIPTION OF REDEVELOPMENT PROJECT AREA The E1 Camino Corridor Project Area (Project Area) consists of 174.8 contiguous acres of predominantly urbanized land. The Project Area is generally bounded by Hickey Boulevard to the north, E1 Camino Real to the west, Chestnut Avenue to the south, and Mission Road and Grand Avenue to the east. A railroad right-of-way and the Colma Creek Channel run through a large portion of the Project Area. The Project Area was originally adopted by the City Council on July 14, 1993. The area is generally characterized by inadequate parcelization, vacant and underutilized sites and mixed uses. E1 Camino Corridor is the City's most diverse area in terms of land use, including residential, office/commercial, light industrial and agricultural uses. The area also contains the Kaiser Permanente Medical Facility, the San Mateo County Government Center, the future BART Station, and newly developed market- rate and affordable housing projects. In 2000, the E1 Camino Corridor Redevelopment Project Area was amended to add two areas: 1) the non-contiguous 9.3 acre Willow Gardens addition and 2) the 70 acre contiguous E1 Camino Real Addition, including the commercial strip along E1 Camino Real, a parcel owned by California Water Service Company, a 3.9 acre Chestnut Shopping Center, an 8.7 acre area containing several greenhouses, several apartment buildings and a community garden. The Redevelopment Plan was amended to change land uses within the project area from primarily high-density, transit-oriented residential to a mix of commercial and high- and medium-density residential uses ranging from 30 to 50 units per acre. Anticipated development includes new retail, office and residential uses with the project area. In 2001, the City adopted the South San Francisco BART Transit Village Plan and Zoning District to accommodate mixed use conunercial and residential development covering the 1/2 mile radius from the BART Station. The major components of the Transit Village Plan are traffic circulation, street design, open space, site development and architecture. The Plan analyzes about 40 acres of development or potential development land and a circulation and open space network that includes the linear park right-of-way along the BART tracks, and several small plazas associated with the new development. Figure III-1 shows the Project Area boundaries. Table III-1 briefly describes the Project Area and the potential proposed Amendment. South San Francisco Redevelopment Agency III- 1 1999 Five Year Implementation Plan 2002 Mid-Term Update .00 Figure II1-1 E1 Camino Corridor Redevelopment Project Area Map South San Francisco Redevelopment Agency III-2 1999 Five Year hnplementation Plan 2002 Mid-Term Update Table III-! Summary Description of Project Area and Proposed Amendment El Camino Corridor Redevelopment Project Proposed Added Area for El Camino Corridor Amendment Acres 175 79.6 Adopted July 14, 1993 2000 Base Assessed Value $51,066,100 n/a Time Limits under AB 1290 Incurring Debt~ Project Activities Tax Increment Receipt Financial Limits Tax Increment Cap Bond Limit July 14, 2013 2020 July 14, 2033 2030 July 14, 2043 2045 $300,000,000 n/a $50,000,000 n/a B. PROJECT AREA GOALS & OBJECTIVES 1. Goals and Objectives The Implementation Plan provisions of the CRL require the Agency to establish goals and objectives for the Project Area for the five year planning period. Following are the major goals and objectives to be pursued by the Agency, as originally set forth in the Redevelopment Plan. a. Goals 1. Develop E1 Camino Real as a boulevard that accommodates its role as a regional corridor but with streetscape and development that provide identity to the street. 2. Encourage development of a mix of uses, with pockets of concentrated activity that provide focus and identity to the different parts of E1 Camino Real. 3. Eliminate and prevent the spread of blight, non-conforming uses and deterioration and the conservation, rehabilitation and redevelopment of the Project Area in accordance with the General Plan, future specific plans and local codes and ordinances. ~ May be extended for ten years to eliminate blight by amending the Plan. South San Francisco Redevelopment Agency III-3 1999 Five Year Imple~nentation Plan 2002 Mid-Term Update 4. Achieve an environment reflecting a higher level of concern 'for architectural, landscape, urban design and land use principles appropriate for attainment of the objectives of the General Plan. 5. Develop a spectrum of housing types affordable to various segments of the community in a manner consistent with the Housing Element of the General Plan and the provisions of the Redevelopment Law. 6. Eliminate or ameliorate existing substandard conditions, including substandard vehicular circulation and parking systems, inadequate infi'astructure, insufficient off-street parking, and other similar public deficiencies. 7. Control unplalmed growth by guiding revitalization, rehabilitation and new development in such fashion as to meet the needs of the Project. 8. Create and develop local job opportunities and preserve the area's existing employment base. b. Objectives Programs flint will facilitate reaching the Project's goals include: 1. Develop the South San Francisco BART station area as a vital pedestrian-oriented center, with intensity and mix of uses that complement the area's new role as a regional center. 2. Develop more east-west crossings on E1 Camino Real that connect the City's neighborhoods, and a continuous parallel street on the eastside to provide alternative travel routes. 3. Promote new and continuing private sector investment within the Project Area to prevent the loss of and to facilitate the increase of commercial sales activity. 4. Reduce the City's annual costs for the provision of local services to and within the Project Area. 5. Increase sales, business licenses and other fees, taxes and revenues for the City. 6. Present and create civic, cultural and educational facilities and amenities as catalysts for area revitalization. 7. Upgrade and expand recreational areas and open space. 8. Assist in the revitalization of the Willow Gardens neighborhood. '- 2. Programs The Agency will undertake three basic programs in the Project Area to alleviate blighting conditions and attain these goals: · Public Infrastructure. Improvement, construction and reconstruction of major public systems such as streets and roads, and water, sewage and storm drainage systems. · Public Facilities. Repair, rehabilitation, installation, acquisition and improvement of parks, playgrounds, libraries, transit facilities and other public buildings and structures. Goals 1, 2 and 3 and Objectives 1 and 2 from City of South San Francisco, South San Francisco General Plan Hearing Draft, July 1999, page 3-28. South San Francisco Redevelopment Agency III-4 1999 Five Year Implmnentation Plan 2002 Mid-Tem~ Update tOO 97 · Property Acquisition, Site Preparation and Clean-up. Purchase, improvement and clean-up of property to promote and support redevelopment effbrts. These program activities are described in Table III-2. Table tli-3 correlates these program activities to the non-housing redevelopment goals stated above. Table III-2 Non-Housing Program Activities El Camino Corridor Project Area Program Activities Public Infrastructnre Flood Culvert Improvements Street and Circulation Improvements Public Facilities Description Consider improvements to relocate the City of San Francisco water line parallel to the flood channel and other related flood culvert improvements along Mission. Upgrade streets, curbs, gutters, and sidewalks, in order to meet City standards, improve access to and within the Project Area, and eliminate visual blighting influences in residential and commercial neighborhoods. Increase stack lane capacity and adequate advance intersection signage on E1 Camino Real and Chestnut Avenue, and make other infrastructure improvements as will be required by new development in the Project Area. Create greenbelt parkway on BART alignment. Eliminate parking islands in the Willow Gardens Area. Extend Oak Ave. between Mission and El Camino. Install traffic signals at Hickey and Arlington. Install traffic signals at Hickey and Camaritas. Repair, rehabilitation, installation, acquisition and improvement of parks, playgrounds, libraries, and other public buildings and structures. Construct a Community Center at Willow Gardens. Design, develop and construct library. Design, develop and construct fire station. Property Acquisition, Site Preparation and Clean-up Relocation/Contingency/Other Provide development assistance in the form of relocation paymems and assistance to residents and business owners dislocated as a result of redevelopment activities. Site Preparation and Clean-up Remove greenhouses in Orange Park. Conduct toxic remediation testing of Orange Park. Property Acquisition Acquire the Chestnut Avenue/E1 Cmnino Real right-of-way. Source: Report on the Redevelopment Plan for the E1 Camino Corridor Project, April 1993. Updated with information from the Amended Five Year Implementation Plan, City of South San Francisco Redevelopment Agency, February 1998, pages A-4 and A-5. Revised Draft of the Amended and Restated Redevelopment Plan for the E1 Camino Corridor Redevelopment Project, Katz ttollis, September 15, 1999, Exhibit V. South San Francisco Redevelopment Agency III-5 1999 Five Year hnplementation Plan 2002 Mid-Term Update Table 111-3 Crosswalk Between Redevelopment Goals and Program Activities El Camino Corridor Project Area South San Francisco Redevelopment Agency Redevelopment Goal Develop E1 Camino Real as a boulevard, that accommodates ils role as a regional corridor but with streetscape and development lhat Program Activities Property Public Acquisition, Site lnfra- Public Preparation and structure Facilities Cleanup rovide identi to the street p ......... tl~ ............ . Encourage development ora mix of uses, with pockets of concentrated activity that provide focus and identity to the different · Eliminate and prevent the spread of blight, non-confornfing uses and deterioration and the conservation, rehabilitation and redevelopment · · [] of the Project Area in accord with the General Plan, future specific lans and local codes and ordin_a_n_c__e~s- Achieve an environment reflecting a higher level of concern for architectural, landscape, nrban design and land use principles · · · 9pp r~opLi a~t e_.__fprAt_t?~'m_ _m. e~n t__ for the Develop a spectrum of housing types affordable to various segments of the connnunity in a manner consistent with the Housing Elemeut of Eliminate or ameliorate existing substandard conditions, including substandard vehicular circulation and parking systems; inadeqaate · · infrastructure; insufficient off-street parking; and other similar public deficiencies. Control unplanned growth by guiding revitalization, rehabilitation and · · n_e.xs,__d_~v_el__opment in such fashion as _to__me~et Create and develop local job opportunities and the preserve the area's · · existing employment base. Source: Redevelopment Plan for the El Camino Corridor Area Project, June 1993 South San Francisco Redevelopment Agency 1II-6 1999 Five Year Implementation Plan 2002 Mid-Term Update 200 C. IHSTORICAI~ ACTIVITIES & AGENCY ACCOMPLISHMENTS The Historical Activities and Agency Accomplishlnents section is divided into two parts in this report: Historical Activities and Accomplishments fi'mn the creation of the project area through 1998/99 and Historical Activities and Accomplishments fi'om 1999/00 through the end of 2002. Historical Activities and Accomplishments 1989/90 through 1998/99 The Redevelopment Plan for E1 Camino Corridor was prepared in response to the planned BART extension through South San Francisco. The BART extension is currently under construction with completion scheduled for 2003. The Redevelopment Plan focuses on key parcels along the northern section of the corridor, including the former Macy's Warehouse Site and McClellan Nurse~3,. ~ In 1999 Costco received approval to develop a 153,000 square foot store on a portion of the site of the former Macy's warehouse operation.4 Property Acquisition, Site Preparation and Clean-up - The Macy's warehouse site on E1 Camino was sold to Costco Wholesale. - Costco Wholesale demolished the Macy's warehouse site (a 20 acre site) to construct a 153,000 square foot store on 14 acres of the parcel. The remaining six acres are planned for mixed-use residential/retail use. Historical Activities and Accomplishments 1999/00 through 2002 Public Infrastructure Installed traffic signal light and median, and completed improvements at the intersection of Hickey Boulevard and Hilton Avenue. · Installed traffic signal light and completed improvements at the intersection of Hickey Boulevard and Camaritas Avenue. McLellan Drive: In fall 2002, BART completed construction of McLellan Drive, which is located on the north side of the BART Station on the former Macy's warehouse site. The developer of the transit village site will install new street lights, street fnmiture, street trees and landscaping in order to promote pedestrian-oriented activities on McLellan Drive. · Upgrade streets, curbs, gutters, and sidewalks, in order to meet City Standards, improve access to and within the Project Area, and eliminate visual blighting influences in residential and commercial neighborhoods. E1 Camino Real/Chestm~t Area Land Use and Urban Design Plan: The City hired a consultant to analyze proposed public improvements. The 1999 General Plan calls for an extension of Oak Avenue to relieve congestion on Chestnut Avenue and a major expansion of Orange Park. 3 City of South San Francisco, Redevelopment, Webpage www.ci.ssf, ca.us/ecd/ECcorridor.htm. 4 South San Francisco Redevelopment Agency. South San Francisco Redevelopment Agency III-7 1999 Five Year Implementation Plan 2002 Mid-Term Update ¢00 South San Francisco BART Linear Park: Planning is underway for a bikeway on the BART fight- of-way traversing the entire distance of the city. Completed the study for the extension of North Canal Street Economic Development Costco has constructed and opened a 153,000 square foot store on 14 acres of the former Macy's warehouse operation. In November 2000, Costco began operating the commercial operation. Property Acquisition, Site Occupant Relocation, Demolition and Site Preparation · Completed and adopted zoning standards and design guidelines for the South San Francisco BART station area to ensure transit oriented development · In August 2002, Price/Costco entered into an agreement with Fairfield Residential to develop two parts of the original Macy's parcel for a mixed use commercial/residential transit village project · On December 12, 2002, Fairfield Residential submittal revised site and elevation plans for Design Review Board review. The revised mixed-use project comprises 360-units, 556 parking spaces (76 spaces would be adjacent to the future grocery store), and over twenty thousand square feet of retail (including a grocery store and local serving retail along McLellan Drive) D. FIVE YEAR PLANNING PERIOD REVENUES Over the next Five years, the Agency will undertake those activities that can be financially supported by its revenue stream. The Agency has two basic revenue sources: · Annual tax increment revenues, and · Non-Agency financial resources. 1. Annual Tax Increment Revenues Tax increment revenues generated in the Project Area during the five year planning period are projected by the Agency to contribute approximately $3.4 million towards non-housing improvement project costs in present value, FY 1999/00 dollars. As noted previously, these tax increment projections are based on those provided in the Fiscal Consultant's Report for the 1999 Revenue Bonds, Series A, and are considered conservative estimates of potential revenue. South San Francisco Redevelopment Agency III-8 1999 Five Year hnplementation Plan 2002 Mid-Term lJpdate Table III-4 Summary of Tax Increment Projections over the Five Year Planning Period El Camino Corridor Project Areas Year FY Ending 2000 FY Ending 2{101 FY Ending 2002 FY Ending 2003 FY Ending 2004 Total Net TI After Obligations $260,000 $550,OO0 $800,000 $870,000 $95O,OO0 $3,430,000 Source: South San Francisco Redevelopment Agency Refer to the table in Appendix A for detailed tax increment projections. 2. Non-Agency Financial Resources Wherever possible, the Agency will leverage other funds in connection with its redevelopment efforts. The Agency bas targeted local, State, and Federal funding sources to assist financing eligible projects. As permitted by law, funds can come from government grants and assistance programs, as well as from private sector sources. The Agency is in the process of procuring fimds from the following sources: Assessment Districts, Development Impact Fees, developer participation, Federal Urban Aid, TEA-21 fitnds, and other State and Federal programs. PROPOSED FIVE YEAR NON-HOUSING PROGRAMS & AGENCY EXPENDITURES The Agency has developed programs to implement its goals and objectives during the five year Implementation Plan period. They are presented along with estimated expenditures in Table III-5. The estimated cost of the five year program of activities summarized in Table III-5 is approximately $10.9 million. The $10.9 million in program costs is significantly more than the estimated Agency five year revenues for non-housing activities of approximately $3.4 million as summarized in the preceding section. Thus, the Agency currently anticipates that other funds will be needed in order to undertake all of the proposed non-housing activities. s Rounded to the nearest $10,000. South San Francisco Redevelopment Agency III-9 1999 Five Year Implementation Plan 2002 Mid-Term Update '00 Table III-5 Proposed Non-Housing Program Activities El Camino Corridor Project Area Program Activities Five Year Projected Costs Public Infrastructure Flood culvert improvements $600,000 Street and Circulation ImproYements $1,000,000 *Improvements to E1 Camino Real and Chestnut Avenue $500,000 Transit Corridor Pathway/Trail on BART Alignment $1,500,000 Eliminate parking islands in the Willow Gardens Area. $200,000 Public Facilities Construct a Community Center at Willow Gardens. $250,000 Library design, development, and construction $2,000,000 Fire Station design, development, and construction $2,500,000 Other Public Facilities Improvements $500,000 Day Care Center $1,000,000 Property Acquisition, Site Preparation and Clean-up Relocation/Contingency/Other $200,000 Memorial Park site preparation $300,000 Acquire the Chestnut Ave/El Camino Real right-of-way $300,000 Source: South San Frm~cisco Redevelopment Agency. * Completed as of this mid-term Plan update TOTAL $10,850,000 South San Francisco Redevelopment Agency II[-10 1999 Five Year Implementation Plan 2002 Mid-Term Update q3 re LINICAGE BETWEEN PROGRAMS & ELIMINATION OF BLIGHTING INFLUENCES The Agency's program of redevelopment activities is designed to systematically address the blighting conditions within the Project Area. The alleviation of blighting influences in the Project Area will work to create an investment environment in which private developers and property owners have the incentive and the means to redevelop their properties. The Agency's programs will be active in alleviating blight in the following areas: 1. Public Infrastructure The Project Area is in need of street and circulation improvements. Several street deficiencies hinder commercial access and development. For example, several privately owned parcels are sun'ounded by roadways on two or more sides, creating isolated and awkward development sites. Some parcels, such as those on Hickey Boulevard, are accessed through several driveways. In addition, many of the parcels along Mission Road lack rear access due to utility easements (i.e., railroad tracks, drainage channels.) Several streets also require improvements to the streetscape, including curb, gutter and sidewalk improvements. In addition, problems with some of the major thoroughfares in the Project Area will become more serious with additional vehicular traffic resulting from new development in the area. The major intersection at El Cmnino Real and Chestnut Avenue received improvements because it was deficient in design and had a disproportionately high incidence of traffic accidents. The Agency's program for the five year Plan period includes upgrading various streets to improve access to and within the Project Area, to the extent of available revenues. The Agency will make streetscape improvements, including upgrading curbs, gutters and sidewalks in order to bring them up to City standards. The Agency's program will improve signage at the intersection of E1 Camino Real and Chestnut Avenue, and increase stack lane capacity on El Camino Real. By providing financing for road and traffic improvements, the Redevelopment Program will improve the visual quality and the accessibility of the Project Area. This will promote an investment climate favorable to new businesses and increase the viability of existing businesses. The completion of the BART system through the Project Area in 2003 will provide opportunities for new development, which will remove additional blighting conditions. The development of properties located between Mission Road and El Camino Real is cnn'ently being impeded by the bisection of Colma Creek. Because of the Colma Creek drainage channel, the majority of the lots on Mission Road are very shallow, or as little as 30 feet from street to back lot line. BART is proposing to cover all or a portion of the Colma Creek Flood Channel to encourage development in the corridor by increasing lot depths along Mission Road, allowing the property level to be raised to street grade in certain areas of the project and facilitating linkages between El Camino Real and Mission Road. The Agency may also provide financing for the construction of related improvements to relocate the City's water line parallel to the flood channel and other flood culvert improvements along Mission Road. South San Francisco Redevelopment Agency III- 11 1999 Five Year hnplementation Plan 2002 Mid-Term Update 2. Public Facilities Many of the Project Area's public facilities are in need of improvement. Over the five year Plan period, the Agency plans to construct a Community Center at Willow Gardens and design, develop and construct a fire station and a library. These activities will have a positive impact on the environment of the Project Area. 3. Property Acquisition, Site Preparation and Clean-up One of the most serious blighting influences in the area was inadequate parcelization: parcels in the Project Area had been subdivided and sold in lots which were too irregular to be developed in a manner consistent with modem development standards. A number of small, in'egularly shaped parcels remain. The former Macy's warehouse on El Camino Real was acquired by Costco and demolished, removing a significant blighting influence in the El Camino Con'idor Project Area. The Agency may expend some funds towards strategic property acquisition that would assist and/or enable in-fill development and assemblage of irregular parcels. Projects may include removing greenhouses and conducting toxic remediation testing in Orange Park and acquiring the Chestnut Avenue/E1 Camino Real right-of-way. South San Francisco Redevelopment Agency II1-12 1999 Five Year Implementation Plan 2002 Mid-Term Update 00 IV.G S TE --PRO CT AREA A. DESCRIPTION OF REDEVELOPMENT PROJECT AREA The South San Francisco Community Gateway Redevelopment Project Area (Project Area) consists of 176.2 acres of predominantly urbanized areas within the City of South San Francisco. The site consists of two distinct geographical subareas. The first sub-area, comprising 67.4 acres of land, is devoted to public transportation uses, with 23 acres of railroad uses and over 43 acres of streets and highways. The second subarea, totaling 108.8 acres, is comprised of two privately owned parcels: the vacant Bethlehem Steel plant site (99.4 acres) and the Edward Wire R6pe Factory Site (9.4 acres). The Project Area was adopted by the City Council in Ordinance No. 867-81, dated June 17, 1981. Table IV-1 briefly summarizes the characteristics of the Project Area. Figure IV-1 shows the Project Area boundaries. The Agency is in the process of amending the Gateway Redevelopment Plan to add one new area. The new area is Oyster Point Marina and Business Park, a 57 acre marina with a boat- launch ramp, berths, pier, the Marine Center, and open space. The amendment will provide tax increment dollars to potentially develop a new conference center and hotel, locating a public market and new offices, and for improving the marina to increase recreation and commercial activity. The recently released Bay Ferry Action Plan by the Bay Area Council identifies Oyster Point as a site that would be suitable for a potential Ferry. South San Francisco Redevelopment Agency IV-1 1999 Five Year Implementation Plan 2002 Mid-Term Update ¢00 Table IV-1 Summary Description of Project Area Gateway Redevelopment Project Acres Adopted Base Assessed Value Gateway Proposed Added Area for Amendment 176.2 57 June 17, 1981 Proposed 2003 $14,984,252 To Be Determined Time Limits under AB 1290 Incun'ing Debt~ Project Activities Tax Increment Receipt January 1,2004 June 17, 2021 June 17, 2031 Proposed 2023 Proposed 2033 Proposed 2048 Financial Limits Tax Increment Cap Bond Limit $80,000,000 $40,000,000 To Be Determined To Be Determined ~ May be extended for ten years to eliminate blight by amending the Plan. South San Francisco Redevelopment Agency IV-2 1999 Five Year hnplementation Plan 2002 Mid-Term Update ,00 q7 Figure IV-I Gateway Redevelopment Project Area Map I South San Francisco Redevelopment Agency IV-3 1999 Five Year Impletnentation Plan 2002 Mid-Term Updat~ B. PROJECT AREA GOALS & OBJECTIVES 1. Goals and Objectives The Implementation Plan provisions of the CRL require the Agency to establish goals and objectives for the Project Area for the five year planning period. Following are the major goals and objectives to be pursued by the Agency, as originally set forth in the Redevelopment Plan. 1. Eliminate blight and blighting influences. 2. Replan, redesign and develop a large area suffering fi'om obsolete plant facilities. 3. Establish and implement performance criteria to assure high site design standards and environmental quality so as to provide unity and integrity to the entire site. 4. Strengthen the economic base of the Project Area and the community by installing public improvements needed to stimulate new office/hotel and cmnmercial development, employment and economic growth. 2. Programs All activities which the Agency will undertake in the Project Area to alleviate blighting conditions and attain these goals can be categorized into four basic program activities: · Public Infrastructure. Improvement, construction and reconstruction of major public systems such as streets and roads, and water, sewage and storm drainage systems. · Public Facilities. Repair, rehabilitation, installation, acquisition and improvement of parks, playgrounds, libraries, transit facilities and other public buildings and structures. · Economic Development. Activities and programs designed to strengthen existing commercial enterprises and shopping areas, and to attract new businesses and shoppers. · Property Acquisition, Site Preparation and Clean-up. Purchase, improvement and clean- up of property for redisposition to private sector developers that will prornote and support South San Francisco's redevelopment efforts. These program activities are described in Table IV-2. Table IV-3 con'elates these project activities to the non-housing redevelopment goals stated above. South San Francisco Redevelopment Agency IV~4 1999 Five Year Implementation Plan 2002 Mid-Term Update Table IV-2 Non-Housing Program Activities Gateway Project Area Program Activities Description Public Infrastructure Installation, construction or reconstruction of streets, utilities and other public hnprovements. Design and construct the Oyster Point Flyover project. Widen Oyster Point Boulevard. Remove railroad tracks. Public Facilities Repair, rehabilitation, installation, acquisition and improvement of parks, playgrounds, libraries, transit facilities and other public buildings and structures. Develop transit oriented facilities (train, shuttle, fe~xy) Complete day care facility. Economic Development Undertake activities to strengthen existing corumercial enterprises and shopping areas and to attract new businesses and shoppers. Provide for participation in the redevelopment process for owners and tenants of property in the Project Area. Property Acquisition, Site Acquisition of real property, demolition or removal of buildings, Preparation and Clean-up improvements on acquired property, relocation assistance to displaced occupants, and disposition of land for redevelopment by private enterprise and public agencies. Source: Redevelopment Plan for the Soufl~ San Francisco Gateway Redevelopment Project, June 17, 198 l. Updated with information from the Amended Implementation Plan, Redevelopment Agency, February 11, 1998 and the1999 Revenue Bonds, City of South San Francisco Capital hnprovements Financing Authority, February 17, 1999, page 18. C. HISTORICAL ACTIVITIES & AGENCY ACCOMPLISHMENTS The Historical Activities and Agency Accomplishments section is divided into two parts in this report: Historical Activities and Accomplislmaents from the creation of the project area through 1998/99 and Historical Activities and Accomplishments from 1999/00 through the end of 2002. Historical Activities and Accomplishments 1989/90 through 1998/99 The Project Area is being developed as an office park available for commercial development. The former site of the Bethlehem Steel plant now contains several high-rise buildings, hotels, and high-technology companies. The Gateway Area has a large concentration of bioteclmology companies, including Elan (Athena Neurosciences), Tularik and Fibrogen in the Britannia Bioteclmology Center, and Coulter Pharmaceuticals.2 The completion of the Oyster Point fi-eeway interchange will significantly improve access to the Project Area.~ City of South San Francisco, Redevelopment, Webpage www.ci.ssf, ca.us/ecd/gateway.htm. 1999 Revenue Bonds, Series A (South San Francisco Redevelopment Projects), City of Soufll San Francisco Capital Improvements Financing Authority, February 17, 1999, pages 17-18. South San Francisco Redevelopment Agency IV-5 1999 Five Year hnplementation Plan 2002 Mid-Term Update ¢00 40 In 1981, the Redevelopment Agency entered into an Owner Participation Agreement with the owner of the property within the Gateway Redevelopment Project Area. The Agency committed to assisting in the construction of a number of'public improvements jointly with the developer which included the Grand Avenue Grade Separation, Oyster Point Separation and other public infrastructure off-site improvements included in the Gateway Redevelopment Plan. The developer completed one 350-room hotel, two mid-rise office buildings and the public infrastructure to accommodate these improvements. The Redevelopment Agency approved two 150,000 square foot biomedical buildings in 1994 for development in the Project At-ea. Table IV-3 Crosswalk Between Redevelopment Goals and Program Activities Gateway Project Area South San Francisco Redevelopment Agency Redevelopment Goal Eliminate blight and blighting [] influences. Replan, redesign and develop a large stagnated area suffering fi:om [] [] p~s_q!.~t~e E!ant facilities. Establish and implement performance criteria to assure high site design standards and environmental quality so as to provide unity and integrity to the entire site. Strengthen the economic base of the Project Area and the community by installing public improvements [] [] needed to stimulate new office/hotel and commercial development, employment and economic growth. Program Activities Property Acquisition, Site Public Economic Preparation and Infrastructure Public Facilities Development Clean-Up Source: Redevelopment Plan for the South San Francisco Gateway Redevelopment Project, June 1981 [] [] [] [] [] [] Significant activity in implementing the Gateway Redevelopment Plan has occun'ed since 1994. The Gateway Project is essentially complete, with the exception of several private parcels and four public projects. There are approximately twelve acres of undeveloped property in the Project Area. Land use entitlements allow for additional development of office space and hotel uses. During the remainder of the Redevelopment Plan period, the Project Area will be built out if the anticipated projects are constructed. Three infi-astructure improvement projects are planned South San Francisco Redevelopment Agency IV-6 1999 Five Year Implementation Plan 2002 Mid-Term Update over the next five years, to be funded by proceeds of the $28.8 million Gateway Bond Issue in early 1999. Following is a list of projects and activities accmnplished over the last five years: Economic Development · 611 Gateway: One office building consisting of 11 stories and 285,000 square feet, and a four story building consisting of 100,000 square feet were submitted for approval by the Redevelopment Agency. · 701 Gateway: A 177,000 square foot six story office building completed in late 1998. · 801 Gateway: A 175,000 square foot five story office building with four levels of parking approved by the Redevelopment Agency in December 1999 for All Advantage.com. · 901 Gateway: A 110,000 square foot R&D building has recently been completed for Advanced Medicine. · Coulter Pharmaceutical received approval to construct three 50,000 square foot buildings. Two of the buildings were completed, and the third is under construction. · The Tularik 60,000 square foot biomedical building has been completed. · Fibrogen is cmnpleting its second 70,000 square foot building adjacent to Tularik. · A six-story office tower to complement the existing two high rise office buildings commenced construction in 1998. · Elan completed a 60,000 square foot building. · The last building in the Gateway Business Park is presently under construction and will be occupied by Athena Neurosciences. · Three hotel projects totaling 393 rooms were completed in 1999: - Hampton Inn with 100 rooms - Larkspur Landing with 111 rooms - Hilton Gar0064ens with 172 rooms4 Historical Activities and Accomplishments 1999/110 through 2002 Economic Development · 611 Gateway: One office building consisting of I 1 stories and 265,081 square feet, and a four story building consisting of 100,000 is nearing completion. · 681 Gateway: a four story mid-rise office building with 124,425 square feet has been approved for development. Redevelopment Consultant's Report on Project Tax Increment Revenues for the Gateway Redevelopment Project Area and other Redevelopment Projects in South San Francisco, Beyer & Associates, February 2, 1999, page 3. Included in the 1999 Revenue Bonds, Series A (South San Francisco Redevelopment Projects), City of South San Francisco Capital Improvements Financing Authority, Febmm3, 17, 1999. Amended Five 'fear hnplementation Plan, City of South San Francisco Redevelopment Agency, February 1998, page A-7. South San Francisco Redevelopment Agency. South San Francisco Redevelopment Agency IV-7 1999 Five Year Implementation Plan 2002 Mid-Term Update · 801 Gateway: A 139,000 square foot five stow office building with four levels of parking has been completed. · 951 Gateway totaling 60,000 square feet was completed in 2002 for Advanced Medicine. · Coulter Pharmaceutical has completed the third and final 50,000 square foot building. · Fibrogen completed its second 70,000 square foot building adjacent to Tularik. · Completed a six-story office tower to complement the existing two high-rise office buildings. · The last building in the Gateway Business Park has been completed and is occupied by Athena Neurosciences. Public Infrastructure · The Redevelopment Agency Issued request for proposals to create a daycare center · The Redevelopment Agency is using bond proceeds to upgrade fire station No. 5. · Reconstructed and widened Oyster Point Boulevard to four lanes. · Assisting in the development of the US 101/Oyster Point Boulevard flyover and hook ramps. D. FIVE YEAR PLANNING PERIOD REVENUES Over the next five years, the Agency will undertake those activities which can be financially supported by its revenue stream. The Agency's revenue source is annual tax increment revenues. Tax increment revenues generated in the Project Area during the five year planning period are projected by the Agency to contribute approximately $11.7 million towards non-housing improvement project costs in present value, FY 1999/00 dollars. Table IV-4 Summary of Tax Increment Projections over the Five Year Planning Period Gateway Project Areas Net TI After Year Obligations FY Ending 2000 $1,128,288 FY Ending 2001 $2,259,823 FY Ending 2002 $2,541,834 FY Ending 2003 $2,790,778 FY. Ending 2004 $3,015,478 Total ' $11,736,201 Source: South San Francisco Redevelopment Agency Refer to the table in Appendix A for detailed tax increment projections. 5 Rounded to the nearest $10,000. South San Francisco Redevelopment Agency IV-8 1999 Five Year Implementation Plan 2002 Mid-Term Update PROPOSED FIVE YEAR NON-HOUSING PROGRAMS & AGENCY EXPENDITURES The Agency has developed programs to implement its goals and objectives during the five year Implementation Plan period. They are presented along with estimated expenditures in Table IV- 5. The estimated cost of the five year program of activities is approximately $9.6 million and is also summarized in Table IV-5. The $9.6 million in program costs compares to the estimated Agency five-year available funds of $20.5 million. Tax increment revenues for non-housing activities are estimated to provide approximately $9.4 million as summarized in the preceding section, and $11.2 million will be provided by the Gateway Bond Issue. Thus, the Agency currently anticipates that the funds necessary to undertake the proposed five-year pro gram of non-housing activities will be available. The Agency will use its annual budget process to establish fimding priohties for the use of any remaining funds. Table IV-5 Proposed Non-Housing Program Activities Gateway Project Area I Program Activities I Five Year Costs Public Infrastructure Oyster Point Blvd./US 101/SPRR $1,000,000 Overcrossing (Flyover) *Widen Oyster Point Blvd. $2,770,000 Remove/Relocate Railroad Tracks $3,000,000 Street and Circulation Improvements $200,000 Public Facilities Day Care Center Facility Transit oriented facilities (train, shuttle, ferry) Public Facilities Improvements Economic Development Property Acquisition, Site Preparation and Clean-up TOTAL $1,000,000 $1,000,000 $300,000 $0 $300,000 $9,570,000 Source: Amended Five Year Implementation Plan, City of South San Francisco Redevelopment Agency, February 1998, page A-11. South San Francisco Redevelopment Agency. * Completed as of this mid-term Plan update South San Francisco Redevelopment Agency IV-9 1999 Five Year Imple~nentation Plan 2002 Mid-Term Update,~ LINKAGE BETWEEN PROGRAMS & ELIMINATION OF BLIGHTING INFLUENCES The Project Area suffers fi'om inadequate public improvements, facilities and utilities; substandard, deteriorating and obsolete buildings; and a prevalence of depreciated values, impaired investments and economic maladjustment. The Agency's program of redevelopment activities is designed to systematically address the blighting conditions within the Project Area. The Agency's programs will be active in alleviating blighting influences in the following areas: 1. Public Infrastructure The Project Area suffers from congestion on roadways and intersections and the need for new sewer trunklines and upgrades to the stom~ drainage system. The Agency's public improvements program will provide for installation, construction or reconstruction of streets, utilities and other public improvements in order to alleviate the problems of the current inadequate system. The Oyster Point/U.S. 101 project will improve access to the Project Area, encouraging economic development and private investment in the area. 2. Public Facilities The Project Area suffers from inadequate public facilities. Over the next five years, the Agency plans to complete a day care center and upgrade transit and shuttle facilities, providing additional services in the Project Area. 3. Economic Development The Agency's program in business enhancement, retention and expansion will continue to help enhance the retail and office development of the Project Area. The Agency's program in owner and tenant participation will ensure that redesign and replanning does not produce undue dislocation and loss to current owners and tenants in the area, tkrough engaging their participation and encouraging their continuation as owners and tenants in the improved, redeveloped area. 4. Property Acquisition, Site Preparation and Clean-up The Agency's program includes acquisition of real property, demolition or removal of buildings and improvements on acquired property; relocation assistance to displaced occupants and disposition of land for redevelopment by private enterprise and public agencies. The Agency will contim~e to work with the property owners in the Project Area to undertake site preparation and clean-up. South San Francisco Redevelopment Agency IV-10 1999 Five Year hnplementation Plan 2002 Mid-Tem~ Update V. SHEARWATER PROJECT AREA A. DESCRIPTION OF REDEVELOPMENT PROJECT AREA The Shearwater Redevelopment Project Area (Project Area) consists of 174.5 acres of predominantly urbanized land within the City of South San Francisco. The Project Area is comprised of three adjoining parcels that lie generally north of Oyster Point Boulevard, east of the Southern Pacific railroad right-of-way adjacent to the Bayshore Freeway (US Route 101), and south and west of the San Francisco Bay shoreline. The Gateway Redevelopment Project Area lies imanediately south of this Project Area. The Shearwater Project Area was adopted by the City Council on Janual~ 8, 1986. The Redevelopment Plan calls for the development of commercial uses, construction of the Oyster Point Boulevard interchange, and improvement of Oyster Point Boulevard. The infrastructure improvements are largely complete.~ Table V-1 briefly surmnarizes the characteristics of the Project Area. Figure V-1 shows the Project Area boundaries. Table V-1 Summary Description of Project Area Acres 174.5 Adopted January 8, 1986 Base Assessed Value $3,443,343 Time Limits under AB 1290 Incurring Debt2 Project Activities Tax Increment Receipt January 8, 2006 January 8, 2026 January 8, 2036 Financial Limits Tax Increment Cap Bond Limit $168,000,000 $52,650,000 City of South San Francisco, Redevelopment, www.ci.ssf.ca.us/ecd/shearwater.htm. May be extended for ten years to eliminate South San Francisco Redevelopment Agency V-I Webpage blight by amending the Plan. 1999 Five Year hnplementation Plan 2002 Mid-Term Update Fig. re V-I Shearwater Redevelopment Project Area Map r,4y col £ Shearwater Redevelopment'Project Area Map . ~ REDEVELOPMENT PLAN S/~N' FRANCISCO U.S. ST:EEl REDEVELOPMENT PRO.ECT MAP PLANT SITE PU~HNED CA3MMERC3AI.. LAND PROJECT I]OUNOILqY South San Francisco Redevelopment Agency V-2 1999 Five Year Implementation Plan 2002 Mid-Teml Update 000 B. PROJECT AREA GOALS & OBJECTIVES 1. Goals and Objectives The Implementation Plan provisions of the CRL require the Agency to establish goals and objectives for the Project Area for the five year planning period. Following are the rnajor goals and objectives to be pursued by the Agency, as originally set forth in the Redevelopment Plan. 1. Eliminate and prevent blight and deterioration and redevelop the Project Area in accordance with the General Plan, specific plans, the Redevelopment Plan and local codes and ordinances. 2. Eliminate or ameliorate certain environmental deficiencies, including substandard vehicular circulation systems; disposal or handling of hazardous materials; and inadequate water, sewer and storm drainage systems. 3. Achieve an environment reflecting a high level of concern for architectural, open space, landscape, and urban design and land use Principles. Replan, redesign and develop undeveloped/vacant areas that are stagnant or improperly utilized. Encourage investment by the private sector in the development and redevelopment of the Project Area by eliminating impediments to such development and redevelopment. Create and develop local job opportunities to replace the Project Area's defunct employment base. Establish a conference center to serve the needs of San Mateo County and the sun-ounding areas. Create increased cultural and recreation opportunities for visitors as well as area residents, particularly maximizing the potential offered by the waterfront. o 2. Program Activities All activities which the Agency will undertake in the Project Area to alleviate blighting conditions and attain these goals can be categorized into three basic program activities: · Public Infrastructure. Improvement, construction and reconstruction of major public systems such as streets and roads, and water, sewage and storm drainage systems. Economic Development. Activities and programs designed to strengthen existing commercial enterprises and shopping areas, and to attract new businesses and shoppers. Property Acquisition, Site Preparation and Clean-up. Purchase, improvement and clean- up of property for redisposition to private sector developers that will promote and support South San Francisco's redevelopment eftbrts. South San Francisco Redevelopment Agency V-3 1999 Five Year hnplementation Plan 2002 Mid~Term Update These program activities are described in Table V-2. Table V-3 con'elates these project activities to the non-housing redevelopment goals stated above. Table V-2 Non-Housing Program Activities Shearwater Project Area Program Activities Public Infrastructure Oyster Point Blvd./US 101/SPRR Overcrossing (Flyover) Street and Circulation Improvements Economic Development Business enhancement, retention and expansion Description Construction of four-lane overcrossing and associated freeway ramps, including related right-of-way acquisition (southbound Flyover to Gateway Blvd.). *Widening of Oyster Point Blvd. fi'om Gateway to Marina Blvd. Upgrade streets, curbs, gutters and sidewalks to meet City standards, improve access to and within the Project Area, and eliminate visual blighting influences. Undertake activities to strengthen office and R&D and hotel development including supporting retail and restaurant uses. Property Acquisition, Site Preparation and Clean-up Acquisition of real property, demolition or removal of buildings, improvements on acquired property, relocation assistance to displaced occupants, and disposition of land for redevelopment by private enterprise and public agencies. Source: Redevelopment Plan for the South San Francisco U.S. Steel Plant Site, January ! 986. Updated with information from the Amended Implementation Plan, Redevelopment Agency, February t 1, 1998, page A-8-9. * Completed as of tiffs mid-term Plan update C. HISTORICAL ACTIVITIES & AGENCY ACCOMPLISHMENTS The Historical Activities and Agency Accomplislunents section is divided into two parts in this report: Historical Activities and Accomplishments from the creation of the project area through 1998/99 and Historical Activities and Accomplishments fi'om 1999/00 tlu'ough the end of 2002. Historical Activities and Accomplishments 1989/90 through 1998/99 The Project Area is the former site of the U.S. Steel Company plant, which closed operations on July 1, 1983. The U.S. Steel buildings were detnolished in early 1984. In February 1986, the Redevelopment Agency entered into an Owner Participation Agreement with Chiltern Development Corporation for the development of the former U.S. Steel Company property in the Shearwater Redevelopment Project Area. The City adopted a Specific Plan for South San Francisco Redevelopment Agency V-4 1999 Five Year Implementation Plan 2002 Mid-Term Update the Project Area, which provided a plan for redevelopment of the site into a commercial/cultural/recreational complex. However, the project did not move forward due to a delay caused by a lawsuit by San Francisco International Airport over the Environmental hnpact Report on the project. By the time the lawsuit was resolved in March 1990, the domestic and international financial markets had substantially changed, and the financing of the project as proposed was no longer feasible. Table V-3 Crosswalk Between Redevelopment Goals and Program Activities Shearwater Project Area South San Francisco Redevelopment Agency Redevelopment Goal Eliminate and prevent blight and deterioration and redevelop the Project Area in accord with the General Plan, specific plans, the Redevelopment Plan and local codes and ordinances. Program Activities Property Acquisition, Site Public Economic Preparation and Infrastructure Development Clean-Up Eliminate or ameliorate certah~ environmental deficiencies, including substandard vehicular circulation systems; disposal or handling of hazardous [] [] materials; inadequate water, sewer and storm drainage s_y_s.t_~_m_s. Achieve an environment reflecthlg a high level of concern for architectural, open space, landscape, and [] [] [] urban design and land use prineip!es. _ Replan, redesign and develop undeveloped/vacant areas [] Encourage investment by the private sector h~ the development and redevelopment of the Project Area by [] · eliminating impediments to such development and r~d_e_y~!~p_m~ent. Create and develop local job opportunities to replace · t_l!e_~_r_o_j~c_t__~Ar_e_a'~s defunct employme~n~Lb_a_s_e_. Establish a conference center to serve the needs of San · ~M_a_t_eo__ ~_u~_.t_he surrounding, areas. Create increased cultural and recreation opportnniti~'S for visitors as well as area residents, particularly · maximizing the potential offered by the waterfront. Source: Redevelopment Plan for the South San Francisco U.S. Steel Plant Site, January 1986 South San Francisco Redevelopment Agency V-5 1999 Five Year hnplelnentation Plan 2002 Mid-Term Update 50 No new development occurred in the Project Area until 1997. In 1996/97 Bay West Cove, LLC acquired the property and implemented a Remedial Action Plan (RAP) for the clean-up of toxic contamination of the site. The on-site land has been cleaned up and the Bay Area Water Quality District has approved clearance for development.3 A new Specific Plan for the area was adopted in 1997 and a Disposition and Development Agreement and Owner Participation Agreement with Bay West Cove, LLC was approved. The new Specific Plan's land uses include hotels, offices, businesses and professional services. Following is a list of projects and activities accomplished over the last three years: Public Infrastructure · Oyster Point Blvd./US 101/SPRR Overcrossing: The first phase of the Oyster Point Blvd./US 101 Overpass was completed. Economic Development · Adopted new Bay West Cove Specific Plan for the Project Area, which includes proposed and/or under construction projects. · Began construction of 349 rooms in two hotels by Marriott Corporation: Residence Inn (152 rooms) and Courtyard by Marriott (197 rooms). The hotels will be completed by the spring of 2000. Property Acquisition and Clean-up · Regional Water Quality Control Bom'd approved a Remedial Action Plan for the cleanup of the toxic contaminants on the site. This action has remediated the most significant blighting conditions in the Project Area.4 Historical Activities and Accomplishments 1999/00 throuRh 2002 Public Infrastructure · Reconstructed and widened Oyster Point Boulevard to four lanes. Economic Development · Completed construction of 349 rooms in two hotels by Marriott Corporation: Residence Inn (152 rooms) and Courtyard by Mm~riott (197 rooms). Redevelopment Consultant's Report on Project Tax Increment Revenues for the Gateway Redevelopment Project Area and other Redevelopment Projects in South San Francisco, Beyer & Associates, February 2, 1999, page 7. Included in the 1999 Revenue Bonds, Series A (South San Francisco Redevelopment Projects), City of South San Francisco Capital hnprovements Financing Authority, February 17, 1999. Amended Five Year Implementation Plan, City of South San Francisco Redevelopment Agency, February 1998, page A-8-9. Redevelopment Consultant's Report on Project Tax Increment Revenues fbr the Gateway Redevelopment Project Area and other Redevelopment Projects in South San Francisco, Beyer & Associates, February 2, 1999, page 7. Included in the 1999 Revenue Bonds, Series A (South San Francisco Redevelopment Projects), City of South San Francisco Capital Improvements Financing Authority, February 17, 1999. South San Francisco Redevelop~nent Agency V-6 1999 Five Year Implementation Plan 2002 Mid-Tem~ Update D. FIVE YEAR PLANNING PERIOD REVENUES Over the next five years, the Agency will undertake those activities that can be financially supported by its revenue stream. The Agency's revenue source is annual tax increment revenues. Tax increment revenues generated in the Project Area during the five year planning period are projected by the Agency to contribute approximately $3.3 million towards non-housing improvement project costs in present value, FY 1999/00 dollars. Table V-4 Summary of Tax Increment Projections over the Five Year Planning Period Shearwater Project Areas Year Net TI After Obligation FY Ending 2000 $180,000 FY Ending 2001 $540,000 FY Ending 2002 $790,000 FY Ending 2003 $910,000 FY Ending 2004 $920,000 Total $3,340,000 Source: Somh San Francisco Redevelopment Agency Refer to the table in Appendix A for detailed tax increment projections. PROPOSED FIVE YEAR NON-IIOUSING PROGRAMS & AGENCY EXPENDITURES The Shearwater Project Area has conunitted significant funds to the Oyster Point Boulevard Widening Project and to the proposed Oyster Point Flyover Prqiect. All anticipated tax increment revenues generated by this Project Area have been committed to these projects.6 Estimated expenditures are presented in Table V-5. The estimated cost of the five year program of activities summarized in Table V-5 is approximately $6.2 million. The $6.2 million in program costs is significantly more than the estimated Agency five year revenues for non-housing activities of approximately $3.3 million as smmnarized in the preceding section. Thus, the Agency cun'ently anticipates that other funds will be needed in order to undertake all of the proposed non-housing activities. Rounded to the nearest $10,000. South San Francisco Redevelopment Agency. South San Francisco Redevelopment Agency V-7 1999 Five Year hnplementation Plan 2002 Mid-Term Update Table Proposed Non-Housing Program Activities Shearwater Project Area I Program Activities I Five Year Costs Public Infrastructure Oyster Point Blvd./US 101/SPRR $3,100,000 Overcrossing (Flyover) Oyster Point Hookramps $2,000,000 Widen Oyster Point Blvd. from Gateway $1,000,000 to Marina Blvd. Street and Circulation Improvements $0 Economic Development Property Acquisition, Site Preparation and Clean-up TOTAL $0 $100,000 $6,200,000 Source: Amended Five Year hnplementation Plan, City of South San Francisco Redevelopment Agency, February 1998, page A-1 l. South San Francisco Redevelopment Agency. LINKAGE BETWEEN PROGRAMS & ELIMINATION OF BLIGHTING INFLUENCES The Agency's program of redevelopment activities is designed to foster development in the Project Area, which will lead to alleviating or eliminating blighting conditions such as underutilized property due to toxic contamination, inadequate infi'astructure and depreciated values. The Agency's activities include investment in the development or improvement of public improvements, which will induce private investment in productive reuse and redevelopment of' the area. The Agency's programs will be active in alleviating blighting influences in the following areas: 1. Public Infrastructure The Project Area has numerous deficiencies in public infrastructure, chiefly related to traffic circulation. Any future development to occur in the Project Area requires the improvement of the Oyster Boulevard/US 101/SPRR Overpass. This is the Agency's primary public infrastructure project in the Project Area. The Agency is also active in other street and circulation improvements, including the completion of widening and reconstruction of Oyster Point Boulevard from the Project vicinity to Oyster Point, which is also a project in the Gateway Project Area. These inaprovements are critical to the area, especially as commercial development currently under development or scheduled will add to the traffic levels. South San Francisco Redevelopment Agency V-8 1999 Five Year Implementation Plan 2002 Mid-Term Update 2. Economic Development Adverse conditions in the Shearwater area include unemployment resulting fi'om jobs lost through the gradual closure and abandonrnent of the U.S. Steel Plant. The Agency's program in business enhancement, retention and expansion will foster retail, office, R&D and hotel development and job growth. 3. Property Acquisition and Clean-up Toxic contamination was the primary blighting condition in the Project Area. The Remedial Action Plan has remediated the on-site land and provided for certain economic development of the property. Once the remaining parcels are developed in conformance with the Bay West Cove Specific Plan, the economic and physical blight will have been eliminated. South San Francisco Redevelopment Agency V-9 1999 Five Year Implementation Plan 2002 Mid~Term Update VI.AFFORDABLE HOUSING ACTIVITIES Ae IMPLEMENTATION PLAN REQUIREMENTS: HOUSING ACTIVITIES The housing portion of the Implementation P1 an is required to set forth specific goals and objectives in enough detail to measure performance. The Plan must include the following affordable housing planning components: · The number of housing units projected to be rehabilitated, price-restricted, assisted or destroyed. · The Project Area's Affordable Housing Production Plan (AB 315 Plan), as described below. · Identification of proposed locations for replacement housing, which the Agency will be required to produce pursuant to Section 33413, if a planned project will result in the destruction of existing affordable housing. An explanation of how the goals, objectives, programs and expenditures set forth in the Implementation Plan will implement the affordable housing requirements of Community Redevelopment Law ("CRL"), including a housing program for each of the five years of the hnplementation Plan. The amount available in the Low and Moderate Income Housing Fund, estimates of deposits into the Housing Fund during the next five years and the Agency's plans for using annual deposits to the Housing Fund. MAJOR STATUTORY PROVISIONS OF CRL FOR AFFORDABLE HOUSING The major statutory affordable housing requirements imposed on redevelopment agencies by CRL may be categorized generally as: · Housing Production Requirement- Specified minimum percentages of new or rehabilitated housing units in a project area are to be made available at a specified aflbrdable housing cost. · Replacement Housin~ Requirement- Agencies must replace housing units removed from the housing stock as a result of redevelopment activities. · Housing Fund Requirement- Redevelopment agencies are required to expend specified percentages of tax increment revenue for provision of affordable housing. These three requirements are described in gn'eater detail in the following subsections. South San Francisco Redevelopment Agency VI-1 1999 Five Year Implementation Plan 2002 Mid-Term Update 00 1. Housing Production Requirement and Housing Production Plan Project areas created by redevelopment plans adopted on or after January 1, 1976, and territory newly added to project areas by amendments adopted on or after January 1, 1976, must meet an affordable housing inclusionary production obligation (the ttousing Production Requirement). CRL requires that when housing is developed or substantially rehabilitated in a project area by public or private entities other than the agency, including entities receiving agency assistance, 15 percent of the total number of units must be affordable to low and moderate income households. Of those units, 40 percent must be affordable to very low-income households. The 40 percent very low-income requirement translates to 6 percent of the units developed and substantially rehabilitated in the Project Area (40 percent of 15 percent equals 6 percent). CRL also requires that 30 percent of all housing developed or substantially rehabilitated by an agency must be available at affordable housing cost to low- and moderate-income households. Of those units, 50 percent must be affordable to very low-income households. The 50 percent very low-income requirement translates to 15 percent of the total units developed or rehabilitated by the agency (50 percent of 30 percent equals 15 percent). This requirement applies only to units developed directly by an agency and does not apply to units developed by housing developers pursuant to agreements with an agency. The CRL requires agencies to report on historical production and adopt a plan for each project area showing how the agency intends to meets its Housing Production Requirement (the Housing Production Plan) for the following time periods: · Historical production from the adoption of the Adoption of the Housing Production Plan through 1999 · Annual production over the next five years (2000 to 2004) · Production over the next ten years (2000 to 2009) · Production through the life of the Housing Production Plan (2009 to the end of the Plan) The plan must include estimates of the number of new or rehabilitated residential units to be developed within the project area and the nulnber of units for very low-income households and low- and moderate-income households which will be developed in order to meet the requirements of Section 33413. Additionally, the plan must include estimates of the number of units the agency itself will develop during the time period of the plan, including the number of very low, low and moderate income units. The plan is to be reviewed every five years in conjunction with updating the housing element. The South San Francisco Redevelopment Agency has not developed housing directly, but has provided funds to both for-profit and non-profit agencies for the development and preservation of low and moderate-income housing. All four Redevelopment Plans were adopted after January 1, 1976 and are subject to the CRL housing production requirement. However, only the Downtown/Central and E1 Camino Corridor South San Francisco Redevelopment Agency VI-2 1999 Five Year hnplementation Plan 2002 Mid-Tem~ Update Project Areas have housing within their Project Area boundaries and need to meet the production requirements. The Housing Production Plan for the Agency in the Downtown/Central Project Area is set forth in Section C. The Housing Production Plan for the Agency in the E1 Camino Corridor Project Area is set forth in Section D. Section E describes potential opportunities for housing production in both of these Project Areas. The Gateway and Shearwater Project Areas have not produced, nor will produce, housing within their project lifetimes, and therefore are not subject to Housing Production Requirements and preparation of a Housing Production Plan. 2. Replacement Housing Requirement When residential units housing low- and moderate-income persons are destroyed or taken out of the low- and moderate-income market as part of a redevelopment project, an agency must replace those units with new or newly rehabilitated low- and moderate-income units within four years. At least thirty days prior to acquiring property or adopting an agreement that will lead to the destruction or removal of low- and moderate-income housing units, an agency must adopt by resolution a replacement housing plan. The Replacement Housing Plan generally must include: · The general location of housing to be rehabilitated, developed or constructed to meet the particular Replacement Housing Requirement. · An adequate means of financing such rehabilitation, development, or construction. · A finding that the replacement housing does not require the approval of the voters pursuant to Article XXXIV of the California Constitution, or that such approval has been obtained. · The number of dwelling units housing persons and families of low or moderate income planned for construction or rehabilitation. · The timetable for meeting the plan's relocation, rehabilitation and replacement housing objectives. The Replacement Housing Requirement applies to project areas established by redevelopment plans (or areas added by plan amend~nents) adopted on or after January 1, 1976, and merged project areas regardless of the date of establishment of the individual project areas subsequently merged. Replacement units may be located anywhere within the territorial jurisdiction of the agency (CRL Section 33413 [a]). An agency may construct replacement housing itself or cause that housing to be developed through agreements with housing developers. The CRL allows the replacement of fewer units if the nmnber of bedrooms produced is equal to or exceeds the number of bedrooms in the units that are demolished and the replacement units are affordable to the same income level of households as the destroyed or removed units. (CRL Section 33413 [f]) The basic income and affordability standards for replacement housing are the same as those for use of Housing Fund moneys. The units must be available at affordable housing cost to South San Francisco Redevelopment Agency V1-3 1999 Five Year Implementation Plan 2002 Mid-Term Update households of low and moderate income. In addition, for dwelling units destroyed or removed after September 1, 1989, CRL requires that 75 percent of the replacelnent units be available at affordable housing cost to the same income level of households (very low, low, or moderate income) as the households displaced from the units removed or destroyed (CRL Section 33413[a]).' Replacement housing must remain affordable the longest feasible time, but not less than the period of time that the land use controls of the redevelopment plan remain in effect (CRL Section 333413 [c]). The affordability controls on such units must be made enforceable by recorded covenants or restrictions. In the City of South San Francisco, Agency actions have resulted in the removal of housing units in the Downtown/Central Project Area. The Agency has not removed or destroyed housing units in any of the other Project Areas since adoption. In the next five to fifteen years, Agency activities planned in the Willow Gardens housing rehabilitation project may result in the loss of four to eight housing units in the E1 Camino Project Area. If these units are removed, the agency will replace them with new or newly rehabilitated low- and moderate-income units within fi~ur years. 3. Goals, Objectives & Programs Requirement The CRL requires the Agency to provide an explanation of how the goals, objectives, programs, and expenditures set forth in the Implementation Plan will implement the affbrdable housing requirements, including a housing program for each of the five years of the hnplementation Plan. The goals, objectives and programs will be discussed in Section F. 4. Housing Fund Requirement The CRL requires the Agency to set aside in a separate segregated Low and Moderate Income Housing Fund (the "Housing Fund") at least 20 percent of all tax increment revenue generated from its project areas for the purpose of increasing, improving and preserving the commmfity's supply of low and moderate income housing. In the City of South San Francisco, the Agency deposits 20 percent of the tax increment revenue from each of the four Project Areas into the Housing Set-Aside Fund. The Agency's deposits are described in Section G below. The Agency has successfi~lly leveraged these Housing Set-Aside funds with other public and private funding sources in the creation and preservation of affordable housing units. XFor example, if 100 units were destroyed and 50 were very low income units, 30 were lower income units, and 20 were moderate income units, then, of the 100 replace~nent units, at least 38 (75% of 50) must be affordable to very low income households, at least 23 (75% of 30) to lower income households, and at least 15 (75% of 20) to moderate income households. The remaining 24 replacement units need only be affordable to households with incomes not exceeding 120% of area median income. South San Francisco Redevelopment Agency VI-4 1999 Five Year hnplementation Plan 2002 Mid-Tem~ Update a. Housing Fund Targeting Under the CRL, Housing Fund moneys must be targeted to specific income levels. Agencies are specifically required to expend their Housing Funds to assist very low-, low- and moderate- income households, generally defined as: Very Low-Income Low-Income Moderate-Income Incomes at or below 50 percent of area median income, adjusted for family size Incomes between 51 percent and 80 percent of area median income, adjusted for family size Incomes between 81 percent and 120 percent of area median income, adjusted for family size Over the life of the redevelopment plan, the assistance must be provided in at least the same proportion that the number of housing units needed for the very low and low income categories (not being provided by other govermnental programs) bears to the total number of units needed for all three income categories. Table VI-1 2002 San Mateo County Maximum Incomes by Income Category and Household Size Household Size: 1 2 3 4 5 6 7 8 Very Low $35,650 $40,700 $45,800 $50,900 $57,950 $59,050 $63,100 $67,200 Lower $57,000 $65,150 $73,300 $81,450 $87,950 $94,450 $101,000 $107,500 Median $60,250 $68,900 $77,500 $86,100 $93,000 $99,900 $106,750 $113,650 Moderate $72,300 $82,650 $92,950 $103,300 $111,550 $119,850 $128,100 $136,350 Source: State of California, Department of HCD, February 2002. South San Francisco's Housing Element sets out the affordable housing need for the City as identified by the Association of Bay Area Governments (ABAG) in its regional "fair share" allocation. The following table shows the "fair share" allocation and the targeting objective, which will be applicable to the Agency fi'om ABAG's 2000 regional housing needs. South San Francisco Redevelopment Agency VI-5 1999 Five Year hnplementation Plan 2002 Mid-Term Update Table VI-2 Affordable Housing Need (Regional Fail- Share) by Income Category Income Level Fait' Share Remai.ing Need by Allocation Income Level Very Low Income 7 4!% i ow I.eome Moderate Income 360 30% Total ~8 1~0~: Source: Regional }lousing Needs Determination Construction Need Distributed by Income Category 1999-2006 Housing Element Period, San Mateo County, South San Francisco. Several new housing developlnents have been constructed in the City since this report was first prepared in 1999-00. Table VI-2 has been updated and lists the number of units needed to meet the regional fair share housing targeting requirements. To meet this requirement, the Agency will need to make available at least 4136 percent of units assisted with Housing Fund moneys available for very low-income households and at least 20 percent for low-income households. The remaining 39 percent of units assisted by means of the Housing Fund may be aflbrdable to any of the three income categories. The Agency developed an affordable housing strategy during its analysis for the Inclusionary Housing Ordinance which identified the greatest need for housing to be in the low-income and very low-income ranges of affordability. In general, the private development community has the capacity to create the market rate residential units required by ABAG's fair share allocation. The Agency has also concluded that the private development community will be able to create the moderate-income units required under ABAG's f~air share allocation determination. However, the Agency realizes it will be extremely difficult for the private development community to create the very low-income units due to the extensive subsidies needed to make units affordable to very low-income people. The Agency has made a commitment to attempt to create the low- and very-low income housing units the City is required to produce by the ABAG Regional Housing Needs Determination. Under this plan, the private development comrnunity shares responsibility for the production of housing suitable to all economic sectors of the community Mille the Agency's limited resources are targeted toward meeting the needs of the lowest income households in South San Francisco. The analysis conducted to prepare the City's Inclusionary Housing Ordinance also identified sites suitable for residential development. Based on an analysis of the land available for housing, land use requirements, build out projections, and the number of units that could be built in South San Francisco, the City determined that the Ordinance's inclusionary housing requirement would be twenty percent (20%). Assuming residential development occurs as projected in build out scenarios, the 20% inclusionary requirement would produce the three hundred and sixty (360) moderate income housing units required by the ABAG determination. The Agency's goal would then be to produce 277 very low- and 131 low-income rental units, thus meeting the total number South San Francisco Redevelopment Agency VI-6 1999 Five Year Implementation Plan 2002 Mid-Term Update 60 of units required. With respect to ownership units, the City's First Time Homebuyer program will target buyers at 120% of median income unless other sources of funds can be cmnbined to reduce the affordability range down to 70 to 80 percent of median income. b. Affordable Housing Cost & Duration of Affordability Housing assisted with Housing Set-Aside fund moneys must be "available at an affordable housing cost." For housing assisted by these funds after January 1, 1991, the following affordable housing cost definitions apply: AFFORDABLE HOUSING COST2 Honsing receiving assistance alter January 1, 1991 Income Level Very Low Income Low Income Moderate Income Rental Itousing 30 percent of 50 percent 30 percent of 60 percent 30 percent of 110 percent Ownership Ilousing 30 percent of 50 percent 30 percent of 70 percent 35 percent of 110 percent~ The CRL also requires the placement and recordation of affordability controls on any new or substantially rehabilitated housing assisted with Housing Fund moneys. In the case of new or substantially rehabilitated rental housing, controls must be placed on the assisted housing units requiring them to remain affordable for the longest feasible time but not less than 30 years. For owner-occupied housing, the units must remain affordable for the longest feasible time, but not less than 30 years, although a shorter duration is permitted if the Agency recoups its Housing Fund investment when an assisted owner-occupied unit is sold at a non-affordable price or to a non-qualifying buyer. According to statutory definition, the "longest feasible time" requirement includes, but is not limited to, a period of unlimited duration. AFFORDABLE HOUSING PRODUCTION (INCLUSIONARY) OBLIGATIONS- DOWNTOWN/CENTRAL PROJECT AREA This section constitutes the Housing Production Plan of the South San Francisco Redevelopment Agency's Implementation Plan for the Downtown/Central Project Area. The Agency expects to meet its legal housing production obligations under Community Redevelopment Law. The tables documenting historical and projected residential units have been amended for this report based on actual conditions and revised projections for potential housing development in the Downtown/ Central Project Area. The housing production numbers used in this report represent the best available information to date. The Redevelopment Agency and City have analyzed Building and Planning Department and Agency records to prepare these projections. The first percentage means the percent of income that can be spent on housing costs. The second percentage means the percent of area median income. But no less than 28% of actual income. South San Francisco Redevelopment Agency V1-7 1999 Five Year hnplementation Plan 2002 Mid-Term Update 61 The first part of this section describes historical housing production within the Project Area froln the adoption of the Redevelopment Plan in July 1989 through 1999 and historical housing production from 1999-2000 through 2002. The second part discusses future housing production within the Project Area as follows: · Annual production goals for 2000 to 2004 · Projected production over the 2000 to 2009 ten year period ° Projected production through the life of the Project (2010 to 2029) The third and fourth parts discuss affordable housing production in the Project Area and the Agency's strategy for meeting its inclusionary obligation. 1. Historical Housing Production in Project Area From 1989 through 1999, a total of 104 housing units (102 affordable) were developed in the Downtown/Central Project Area. From 1999-2002 four (4) units (one affordable) were developed. Following are further details of these projects: a. New Construction- Multifamily Historically, from the adoption of the Plan in 1989 ttu-ough 1999, a total of eleven multifamily housing units were developed in the Downtown/Central Project Area. These units are the Sundial Apartments, an affordable housing development, developed in 1989 by the Mid Peninsula Housing Coalition, in agreement with the Redevelopment Agency. The Mid Peninsula project converted 22 single room occupancy units to 11 one-bedroom apartments. The Agreement between Mid Peninsula and the Agency required that the units be made available to very low income individuals and that Mid Peninsula manage and maintain the facility as permanent housing. In the event the Mid Peninsula should sell the property, the Note fi'om the Agency would become due and payable imrnediately, and the Agency would require that the new owner maintain the units as very low-income housing. b. New Construction- Single Family No single-family units were constructed in the Project Area through 1989. In 2002, four new single-family units were developed at 260-290 ttillside. One of these units, 290 Hillside, is affordable to moderate-income families. The project was totally financed by a private developer, and the affordable unit has a 30-year resale restriction to maintain affordability. c. Substantial Rehabilitation AB 1290 provides that an agency count substantially rehabilitated multifamily rental dwelling units (with three or more units) or single-family dwelling units (with one or two units) in its production totals. Under AB 1290, substantial rehabilitation is defined as rehabilitation, the value of which constitutes at least'25 percent of the after rehabilitation value of the dwelling, inclusive of the land value. Based on its knowledge of housing prices, the Agency set a minimum lbr substantial rehabilitation production of at least $50,000 in rehabilitation cost per unit, assuming South San Francisco Redevelopment Agency VI-8 1999 Five Year hnplementation Plan 2002 Mid-Tram Update the after-rehabilitation value of a housing unit is $200,000 or more. From 1989 through 1999, two housing units have been substantially rehabilitated by private individuals without affordability restrictions in the Project Area. While the City has a rehabilitation program utilizing CDBG funds (with an annual budget of about $150,000) for single-family housing rehabilitation, the Agency does not utilize its funds to support substantial rehabilitation efforts. However, the Agency contributes Housing Set-Aside funds to a loan program to owners of commercial and residential unreinforced masom'y (URM) to retrofit residential units to be occupied by very low, low and moderate-income households. The Agency has provided funds for the substantial rehabilitation and retrofit of the following buildings containing residential units in the Downtown: Metropolitan Hotel The substantial rehabilitation of the Metropolitan Hotel, an historic downtown hotel, was identified in the prior Implementation Plan as a multi-year project. This renovation was initiated in 1993 and completed in 1999. This hotel, consisting of 66 SRO units, was rehabilitated with a combination of Redevelopment Agency and HOME funds. The Agency and the City committed $853,000 in Agency housing funds and $430,000 in HOME funds for the residential units and $340,000 in Agency (non-housing) funds for tl~e retail/restaurant portion of the building. The 66 SRO units will be restricted to very low-income rents through the year 2029. Mexico Tipico Restaurant The Agency provided a loan of $125,000 for the retrofit and rehabilitation of the Mexico Tipico Restaurant. The housing unit on the second floor was rehabilitated in April 1998. A very low- income owner occupies this dwelling unit. The unit is deed-restricted to very low-income occupancy until the year 2019. Grand Hotel The Grand Hotel, located at 731 Airport Boulevard, contains 16 SRO units. The City provided $900,000 in Redevelopment Agency funds fbr the substantial rehabilitation and seismic upgrade of these units. These units were opened in early 1999, and will be deed restricted to very low- income occupancy until the year 2029. Eigbt-Plex at 739 Airport Boulevard The City provided $400,000 in HOME funds for the re~nodeling of eight apartments located at 739 Airport Boulevard. The remodeling will include seismic upgrade and disabled accessibility modifications. Although this is not a Redevelopment Agency sponsored project, the units, which will be deed-restricted for very low income tenancy until the year 2029, can be counted toward meeting the production goals in the Project Area. South San Francisco Redevelopment Agency VI-9 1999 Five Year hnptementation Plan 2002 Mid-Term Update 2. Projected Future Housing Production and Agency Obligations The Agency has carefully evaluated the potential for future housing unit production in the Project Area to the end of the Downtown/Central Plan. Based on an analysis of the potential for new development on existing vacant residential parcels, the Agency has developed a projection for the number of units likely to be built in the Downtown/Central Project Area over the life of the Plan. Table VI-3 summarizes the future potential for housing production within the Project Area over the life of the Project. Table VI-3 Housing Production SummaryHistorical & Projected Downtown/Central Project Area Year Total Units Produced New I Rehal, [ Total Historical 1989-1994 11 2 13 1995-1999 4 87 91 2000-2002 4 0 4 Projected 2002-2004 444 8 52 2005-2029 0 0 0 Total (1989-21104) 63 97 160 Total (1989-2029) 63 97 160 Source: South San Francisco Redevelopment Agency & Building Dept. 3. Affordable (Inclusionary) Housing Production This section constitutes the Housing Production Plan for the Downtown/Central Project Area of the South San Francisco Redevelopment Agency's Implementation Plan. It discusses affordable housing production in the Project Area and the Agency's strategy for meeting its inclusionary obligation. The Agency expects to meet its legal housing production obligations under Cormnunity Redevelopment Law, including more recent legislation related to housing, AB 315 and AB 1290. The Agency itself has not developed any housing in the community in the past, nor does it have plans to do so at any time in the future. The Agency has found it most cost effective and administratively efficient to provide financial assistance, as necessary, to private developers (both for-profit and nonprofit) and homeowners to produce and rehabilitate affordable housing, 4 Paradise Valley 44 units, Escape SRO 8 milts. South San Francisco Redevelop~nent Agency VI-10 1999 Five Year Implementation Plan 2002 Mid-Term Update than for the Agency to act as a housing developer. Consequently, the Agency does not have an historical affordable housing production requirement with respect to Agency-developed housing. In the Downtown/Central Project Area, the Agency has exceeded its 15 percent affordable housing production (inclusionary) requirements 'for the historical period 1989 to 1999 and 1999- 2002. Of the 108 units constructed or substantially rehabilitated, 102 were very low-income units and one was a moderate-income unit. Of these eleven units were at the Sundial Apartments, one unit at Mexico Tipico, 16 units at the Grand Hotel, eight apartments at 739 Airport Boulevard, and 66 units at the Metropolitan Hotel, and in 2002 one unit at 260-290 Hillside Blvd. With an obligation to produce a total of 16 units of affordable housing, with seven of these units to be very low-income housing, the Agency has far exceeded its production requirements for the Project Area. From 2000 through the end of the Plan, the Agency will continue to exceed its affordable production obligation. Table VI-4 shows historical and projected housing production fi'om 1989 through 2029 and the inclusionary obligation incurred by the Agency. The projections are based on potential development opportunities that have been identified in the Project Area. These include a potential for 44 units of new housing at Paradise Valley and eight units substantially rehabilitated at the Escape Single Room Occupancy Hotel. A complete listing of potential projects is discussed in Section E of this report. 4. Replacement Obligation When residential units housing low and moderate-income persons are destroyed or taken out of the low and moderate income market as part of a redevelopment project, an agency must replace those units with new or newly rehabilitated low and moderate-income units within four years. The CRL also requires that for units removed after September 1, 1989, 75 percent of the replacement units must be affordable to households earning at the same income levels as the households displaced. The CRL allows the replacement of fewer units if the number of bedrooms produced is equal to or exceeds the number of bedrooms in the units that are demolished, and the replacement units are affordable to the same income level of households as the destroyed or removed units. (CRL Section 33413 [f]) The Agency had an obligation to replace units removed at the Sundial Apartments site. This site was completed, and the new units were approved for occupancy on August l 5, 1989. The project involved the conversion of 22 SRO existing units to eleven studio apartments, leaving a replacement obligation of eleven new units. The eleven units were partially replaced by the major rehabilitation of six restricted-income units completed in 1993 with CDBG funds. The remaining five units were replaced with low-income units in the Metropolitan Hotel, which began rehabilitation in 1993. Because the Sundial development was completed and approved for occupancy before September 1, 1989, the Agency did not have to replace the units by specific income level. South San Francisco Redevelopment Agency VI-11 1999 Five Year Implementation Plan 2002 Mid-Term Update In 1995, a restaurant with a three-bedroom residential unit on the second floor was demolished for the construction of a 34-unit hotel at 751 Airport Boulevard. In addition, two single-Pamily homes were destroyed for construction of a downtown parking lot. One house, located at 432 Baden Avenue, contained three bedrooms, and the other house, located at 429 Third Lane, contained two bedrooms. The Agency has to replace the three units, or a total of eight bedrooms from the two houses and one apartment. The Agency has met the replacement obligation for these dwelling units, which were occupied by moderate-income households, with the completion of the rehabilitation of four units on Commercial Avenue, in the summer of 2001. The four replace~nent units have been leased to very low-income households, three of whom are Section 8 certificate holders. Two of these families were permanently relocated from the Willow Gardens units when those units underwent rehabilitatiom In addition, the Agency purchased a vacant house in the Downtown/Central Project Area, located at 205 Baden Avenue, which was vacant at the time of purchase. This house, which was purchased from a moderate-income owner, contained three bedrooms. During 2001 was demolished to develop a new fi~miture showroom in the downtown project area. The house has been replaced with another three-bedroom house, bought by the City of South San Francisco, and leased to Shelter Network for use as a transitional house for families. The transitional house is located at 109 Longford Avenue which is not in the downtown project area but is another three bedroom house leased to an extremely low-income family with a female head of household. Since it is not in the project area a two for one replacement is required. Thus, some of the newly rehabilitated units at the Metropolitan Hotel may be counted toward the replacement value of three bedrooms, to complete this replacement obligation. At this time, the City does not have an unmet replacement housing obligation and in fact has a positive balance of production units, as shown on table VI-5. South San Francisco Redevelopment Agency VI-12 1999 Five Year Implmnentation Plan 2002 Mid-Term Update Table VI-4 Housing Production & Affordable Obligation Historical and Projected Downtown/Central Project Area Affordable Obligation |2! Affordable Production Total Total Total Very Affordable: V. Very Affordable: V. Units Low Low, Low, & Low Low, Low, & Year [Il Only Mod Only Mod Historical 1989-1994 13 1 2 11 11 1995-6/1999 91 6 14 91 91 7/1999-12/2002 4 0 I 0 1 Total (1989-1999) 108 7 17 102 103 6% 15% 94% Projected 2002-2004 [3] 52 3 8 10 19 2005-2029 0 0 0 0 0 Surplus (Deficit) Productiou Total Very Affordable: V. Low Low, Low, & Only Mod 10 9 85 77 0 0 95 86 7 11 0 0 Total (1989-2004) 10 24 112 Percenl 6% 15% 70% Total (1989-2029) 10 24 112 Percent 6% 15% 70% [1] Total units includes new and substantially rehabilitated units in project area at all income levels: very Iow, low, moderate and market rate. [2] The CRL requires that at least 1.5% of total units are affordable to very low, low or moderat'e income households; and that at least 40% of the 15% are affordable to ve~3~ low income households (equal to 6% of units in aggregate). [3] Four of the units will be rehabilitated outside of the Project Area (on Commercial Avemm), and therefore count towards the Agency's affordable production totals as one unit for every two produced. NOTE: Totals may not exactly add up due to rognding Source: City of South San Francisco Redevelopment Agency & Building Dept. Records South San Francisco Redevelopment Agency VI-13 1999 Five Year hnplementation Plan 2002 Mid-Term Update The Agency's production of 102 affordable units from 1989 through 1999 has not only met its replacement obligation, but has resulted in a significant number of units above the requirement in the Redevelopment Project Area. Table VI-5 shows the current status of fl~e Agency's replacement obligation in the Downtown/Central Project Area. Table VI-5 Replacement Housing Obligation South San Francisco Redevelopment Agency Years Units Removed Historical Before 9/1/89" 22 9/1/89-6/30/99 3 Total 25 Source: South San Francisco Redevelopment Agency Cumulative Production Units Balance Prodnced (Deficit) Surpluss 11 -11 977 94 108 83 DJ AFFORDABLE HOUSING PRODUCTION (INCLUSIONARY) OBLIGATIONS- EL CAMINO CORRIDOR PROJECT AREA This section constitutes the Housing Production Plan of the South San Francisco Redevelopment Agency's Implementation Plan for the E1 Camino Corridor Project Area. The Agency expects to meet its legal housing production obligations under Community Redevelopment Law. The tables documenting historical and projected residential units have been amended for this report based on actual conditions and revised projections for potential housing development in the E1 Camino Corridor Project Area. The housing production numbers used in this report represent the best awtilable infonrtation to date. The Redevelopment Agency and City have analyzed Building and Planning Department and Agency records to prepare these projections. The first part of this section describes historical housing production within the Project Areas fi-om the adoption of the Redevelopment Plan in June 1993 through 1999. The second part discusses future housing production within the Project Area as follows: · Annual production goals for 2000 to 2004 · Projected production for 2000 to 2009 · Projected production through the life of the Project (2010 to 2033.) Negative numbers under Cumulative Production Balance represent remaining obligation. The replacement housing obligation must be met within four years of removal. Units removed before 9/1/89 are not required to be replaced by specific income level. However, replacement units not specifically required to be Very low or low must be at least 120% or below of median income. Six of the replacement units were rehabilitated using CDBG funds and are therefore not included in the Agency's housing production totals. South San Francisco Redevelopment Agency VI-14 1999 Five Year hnplementation Plan 2002 Mid-Term Update The third and fourth parts discuss affordable housing production in the Project Area and the Agency's strategy for meeting its inclusionary obligation. 1. Historical Ilousing Production in the Project Area From the adoption of the Plan on July 14, 1993, a total of 309 housing units have been completed in the E1 Camino Corridor Project Area; 100 additional housing units could potentially be constructed in 1999-2004. The completed projects are as follows: a. New Construction-Multifamily Greenridge (McClellan Site) Greenridge, a development that provided 34 townhouse rentals for very low income tenants, was completed in 1999. The project was built on a portion of the land at the McClellan site and developed by Mid-Peninsula Housing Coalition, an experienced non-profit housing developer. The Agency required Greystone Homes, the developer of the McClellan single family home site, to provide one acre of land for the development of aflbrdable housing units to meet the Agency's housing production requirement. The Agency committed $940,000 of Housing Set-Aside funds for this development. b. New Construction-Single Family E1 Camino Court-Completed El Camino Court, a 96-unit market rate condominium project, was completed in the Project Area. This project did not include construction of any affordable units. Therefore, the Agency was required to assume the housing production obligation to produce 15 units of affordable housing, with six of those units affordable for very low-income households. Promenade (McClellan Site)-Completed A developer has completed 179 market rate single family homes at the 31-acre McClellan Nursery site, located at 1450 E1 Camino Real. A c. Substantial rehabilitation From the adoption of the Plan through June 30, 1999, no housing units were substantially rehabilitated in the Project Area. From1999 to 2002, after the E1 Camino Corridor Redevelopment Project Area was amended to incorporate the Willow Gardens neighborhood, tln-ee four-plex structures (12 units) were acquired and rehabilitated by Mid Peninsula Housing Coalition as part of the neighborhood revitalization strategy calling for the acquisition and rehabilitation of up to fifteen (15) structures (60 units) in an effort to turn the neighborhood around. South San Francisco Redevelopment Agency 1999 Five Year hnplementation Plan 2002 Mid-Tram Update 2. Projected Future Housing Production and Agency Obligations The projected number of residential units to be constructed in the E1 Camino Corridor Project Area has been significantly revised downward since the Agency's 1995 projections (fi'om 2,730 units to approximately 250 units during the next ten years). The revised projections are based on current market conditions, experience with the development of the McClellan Nursery site, and a new analysis of the land use and recommendations for unit per acre densities of the Project Area. Table VI-6 Housing Production Summary Historical & Projected El Camino Corridor Project Area Year Total Units Produced New I Rehal, I Total Historical 1993-1999 219 0 219 1999-2002 908 120 102 Projected 2002-2004 74m 48a 122 2005-2033 373~ 0 373 Total (1993-2004) 383 60 443 Total (1993-2033) 756 60 816 Source: South San Francisco Redevelopment Agency &.Building Dept. 3. Affordable (Inclusionary) Housing Production This section constitutes the Housing Production Plan for the E1 Camino Corridor Project Area of the South San Francisco Redevelopment Agency's Implementation Plan. It discusses aflbrdable housing production in the Project Area and the Agency's strategy for meeting its inclusionary obligation. The Agency expects to meet its legal housing production obligations under Community Redevelopment Law, including more recent legislation related to housing, AB 315 and AB 1290. The Agency itself has not developed any housing in the community in the past, nor does it have plans to do so at any time in the future. The Agency has found it most cost effective and Promenade 90 market rate units (219 units in 1993-1999 includes 89 from Promenade) Willow Gardens Rehabilitation lo Chestnut Creek 40 units and Oak farms 34 units t~ Oak Avenue Apartments 13 units, Fairfield's Development 360 units South San Francisco Redevelopment Agency VI-16 1999 Five Year hnplementation Plan 2002 Mid-Term Update 70 administratively efficient to provide financial assistance, as necessary, to private developers (both for-profit and nonprofit) and homeowners to produce and rehabilitate affordable housing, than for the Agency to act as a housing developer. Consequently, the Agency does not have an affordable housing production requirement with respect to Agency-developed housing. In the El Camino Corridor Project Area, the Agency expects to meet its affordable housing production requirements over the next ten years and through the remaining life of the Project. Table VI-7 shows historical and projected housing production from 1993 through 2033 and the inclusionary obligation incurred by the Agency. The original Redevelopment Plan did not anticipate Agency assistance for the production of affordable units. Opportunities have been presented which have allowed the Agency to assist with the creation of 34 new rental units affordable to very low-income households built by Mid Peninsula Housing Coalition on the McClellan site. In addition, the development of Costco and the BART station on the E1 Camino Corridor has radically changed the look of the E1 Camino, and will also result in the construction of housing units over the next twenty years. The City's recently adopted General Plan and Housing Element have revised the potential number of residential units based on land use determinations and current economic trends. A Transient Occupancy District (TOD) has been established which encourages multi-family developments near the BART station. Additional unexpected residential and commercial opportunities have been created with the revised TOD land use designations for the El Camino Corridor. South San Francisco Redevelopment Agency VI-17 1999 Five Year Implementation Plan 2002 Mid-Term Update Table VI-7 Housing Production and Affordable Obligation Historical and Projected El Camino Corridor Project Area Total Year Units Ill Historical 1993-6/1999 219 14 33 34 7/1999-12/2002 102 6 15 12 Total (1993-2002) 321, 20 48 46 Pereent~ 6% 15% 14% Projected 2002-2004 122 7 18 88 2005-2033 373 22 56 22 Affordable Obligation 121 Affordable Production Total Total Very Affordable: V. Very Affordable: V. Low Low, Low, & Low Low, Low, & Only Mod Only Mod 34 12 46 Surplus (Deficit) Prodnction Total Very Affordable: V. Low Low, Low, & Only Mod 20 6 2~ 93 81 56 0 Total (1993-2004) 27 67 134 Percenl 6% 15% 30% Total (1993-2033) 49.82 122.55 156 6% 15% 19% [1] Total units includes new and substantially rehabilitated units in project area at all income levels: very low, low, moderate and market rate. [2] The CRL reqnires that at least 15% of total units are affordable to very low, low or moderate income households; and that at least 40% of the 15% are affordable to very low income households (equal to 6% of units in aggregate). NOTE: Totals may not exactly add up due to rounding. Source: City of South San Francisco Redevelopment Agency & Building Dept. Records 1 -3 -2 75 0 South San Francisco Redevelopment Agency VI-18 1999 Five Year hnplementation Plan 2002 Mid-Term Update,~ To date, numerous projects have been approved for develop~nent or are under construction in the project area including: The construction of 40, one-bedroom senior apartments, known as Chestnut Creek, is targeted for very low-income seniors and scheduled to be completed in March 2003. Chestnut Creek is a rental project sponsored by the City's Redevelopment Agency and developed Bridge Housing Corporation. It is located at the comer of Mission Road and Chestnut Avenue. The project was funded by a HUD 202 grant of $3.5 million and Agency funds in the amount of $3.4 million. Oak Farms, a private for sale housing development by Sunstream Homes, will have 34 townhouses. The project has an obligation to provide five (5) affordable units. The City Council has earmarked the below market rate units for City and School District employees. It is anticipated that marketing will begin in the spring of 2003. Across fi.om the Oak Farms project the Redevelopment Agency has approved the Oak Avenue Apartment, a project consisting of thirteen (13) rental units, three (3) of which will be available to low- and moderate-income households. Although this project is not in the Redevelopment Project Area, the affordable units are required by the City's Inclusionary Housing Ordinance. On McLellan Drive next to Costco and BART, Fairfield Residential submittal site and elevation plans for Design Review Board review. The mixed-use project comprises 360-units that will be completed in the next few years. During the year 2000, the Redevelopment Agency adopted a Plan Amendment for the E1 Camino Corridor Project Area to include a non contiguous residential neighborhood and commercial portions of the E1 Camino Real into the project area. The residential neighborhood of Willow Gardens, located north of Willow Avenue and Grand Avenue, consists of a 1980's Planned Unit Development with 64 four-plex structures. The development was poorly designed and suffers from absentee landlords, deferred maintenance, vandalism, crime and general neglect. Willow Gardens is the focus of a neighborhood revitalization strategy approved by the Agency Board in 1999. The overall plan is to acquire and rehabilitate up to a dozen four-plex structures in an effort to mm the neighborhood around. To date, three (3) four-plex structures have been acquired and rehabilitated. Four additional structures of four units each, or sixteen (16) units total, were acquired in November 2002 by Mid Peninsula Housing Coalition, the City's developer for this revitalization project. Of the three four-plex structures, or twelve (12) units, for which rehabilitation has been cmnpleted, all are rented to very low and low income households. Relocation was required for several of those units and was resolved by moving families fi.om one unit to the other as vacancies occurred and by permanently moving two fmnilies to the Commercial Avenue project upon its completion in 2001. South San Francisco Redevelopment Agency VI-19 1999 Five Year hnplementation Plan 2002 Mid-Term UpdateD 0 0 ~ 3 The newly acquired units will be rehabilitated to bring those units into code and to replace rotted decks, windows, roofs and floors. Relocation will be handled by working on units as they become vacant and by moving families to newly rehabilitated units as they are completed. All units will be leased to very low income families in perpetuity. Agency funding is provided to Mid Peninsula Housing Coalition and secured by deed of trust and subject to a Rent Regulatory Agreement for ninety years. units xxx units which will potentially be produced in the Project Area through 2004, the Agency will have a production requirement of xxxxxx affordable units, with xxxof these units for very low income households. The potential 40 very low income units at the Mission Chestnut site and the potential 60 additional units of low income housing at the Willow Gardens project will result in a significant surplus of 71 affordable units in the E1 Camino Corridor Project Area. Of the total of xxx units produced from 1999 through 2002 and the xxx which will potentially be produced in the Project Area through 2004, the Agency will have a production requirement of xxx affordable units, with xxxx of these units for very low income households. The 34 very low- income units at Greenridge, 40 very low income units at Mission Chestnut site and the potential 60 additional units of low income housing at the Willow Gardens project will result in a significant surplus of xx affordable units in the E1 Camino Corridor Project Area. 4. Replacement Housing Obligation Since the inception of the Redevelopment Plan, no dwelling units have been destroyed in the El Camino Corridor Project Area. However, the Willow Gardens project anticipates the potential destruction of four to eight units over the next fifteen years. Therefore, the Agency would have an obligation to replace the four to eight two-bedroom units within four years of their demolition, and provide 75 percent of these units at income levels affordable to the former occupants. The significant nurnber of affordable units proposed for the Project Area will more than meet the replacement obligation. POTENTIAL OPPORTUNITIES FOR HOUSING PRODUCTION IN THE REDEVELOPMENT PROJECT AREAS The State of Califomia requires the Department of Housing and Community Development to identify housing needs for each region as a response to the growing population and household growth in the state. State Law mandates that each council of government (COG) distribute the State identified housing needs allocation to each jurisdiction within the COG's region. The Association of Bay Area Governments (ABAG) is responsible to determine the fair share of regional housing need for each city and county within the San Francisco Bay Area for the period of January 1, 1999 to June 20, 2006. California State Law requires that "the share of a city or county of the regional housing needs includes the share of the housing needs of person at all income levels with the area significantly affected by a general plan of the city or county." South San Francisco Redevelopment Agency VI-20 1999 Five Year hnplementation Plan 2002 Mid-Term Update,.~ 0 (~i ~,/4! ABAG certified the Regional Housing Needs Determination for all cities and counties in the San Francisco Bay Area in March of 2001. The final fair share allocation for the City of South San Francisco is 1,331 housing units. Of those 1,331 units, 277 are to be designated for very low income households, 131 for low income, 360 for moderate income, and 563 for the above moderate income range. The City of South San Francisco incorporated its housing need numbers into the updated General Plan Housing Element that was approved for certification by the Department of Housing and Community Development in October of 2002. During 2000 and 2001 the City conducted several study sessions to review the City's housing needs for the purpose of ascertaining how it may best provide housing that is affordable to existing residents and the City and employees of businesses located within the City. City Council directed the preparation of a policy statement that addressed the feasibility of implementing the Council's desire to construct low, medium and high density residential housing which includes sufficient affordable units to meet the needs of existing and future residents. The policy statement included a mechanism which would implement the City's affordable housing goals to include a mandatory requirement that developers meet the ABAG housing requirements. An Inclusionary Housing Ordinance was subsequently adopted requiring that a minimum of twenty percent (20%) of all approved residential development consisting of four or more units be restricted to and affordable to lower income households. This 20% percent requirement of the development community is not restricted to redevelopment project areas but is implelnented citywide. The following text summarizes potential housing production opportunities in the Downtown/Central and E1 Camino Corridor Project Areas. These potential opportunities are based on certain assurnptions made by the Agency relating to revenues, market conditions, community needs and priorities, and developer interests. Consequently, should assumptions not be realized or unforeseen circumstances arise, modifications to the proposed development options may be required. Please note that adding potential projects or programs to the hnplementation Plan is not considered an approval of the project and does not require environmental review (which would be required at the actual time of project approval). These opportunities are presented as potential developments to provide the Agency with existing infomaation and background data to facilitate fi~ture development decisions. Downtown/Central Project Area Rental Rehabilitation Project at Commercial Ave. The Agency has acquired a vacant site located at 440 Commercial Avenue, outside of the Project Area.. The Agency will sponsor the development of four new housing units at this location. This project will create four very low income units. Currently, negotiations with Habitat for Humanity are assessing the feasibility of creating homeownership opportunities for households at fifty (50%) percent of median income. Paradise Valley. This quadrant of the Project Area represents the largest opportunity for development in the Linden and Hillside Avenues neighborhood. Preliminary analysis shows it to be an ideal site for the construction of 44 to 88 new units of senior housing with South San Francisco Redevelopment Agency VI-21 1999 Five Year Implmnentation Plan 2002 Mid-Term Update commercial retail space facing Linden Avenue. The higher number assumes development of the entire block which includes a grocery store and car wash which may not be available for residential development. This project could potentially move forward within the next five years with a smaller scale development of up to 30 rental housing units. The Agency acquired the gas station at 905 Linden Avenue in 1999, which offers the potential for future housing development on its own or combined with the adjacent parcels in Paradise Valley. The Agency has demolished the gas station and cleaned out leaking gas tanks at that site which has since been improved with landscaping, grass and flower beds, making the neighborhood more attractive. El Camino Corridor Project Area 1. Mission Chestnut Site. With assistance from the Redevelopment Agency ($1.9 million) and $4.5 million in HUD funds, 40 units of senior housing will be completed and occupied in the spring of 2003. Willow Gardens Acquisition and Rehabilitation. The Agency has adopted a revitalization plan for the Willow Gadrens neighborhood in 1999. Subsequently the E1 Camino Corridor Redevelopment Project Area was amended to include the neighborhood. The intent of the plan is to redevelop the neighborhood by incorporating single family amenities such as sidewalks, trees, garbage enclosures, well designed patios and trellis entries. Other Potential Projects 2004-2010: An estimated 373 units may be developed in the E1 Camino Project Area after 2004. An additional 20 units may be developed outside of the Project Areas. The Agency will also continue to look for opportunities to provide assistance to rehabilitate SROs. F. GOAl,S, OBJECTIVES AND PROGRAMS In addition to discussion of Agency progress in meeting its specific affbrdable housing obligations under the CRL, the Implementation Plan must set forth the Agency's goals and objectives for affordable housing during the term of the plan. Through its affordable housing activities, the Agency intends to support and advance the overall Housing Element program. In developing its affordable housing program, the Agency has been guided by the goals and policies of the City's Housing Element, which are incorporated into the Implementation Plan by this reference. South San Francisco has six goals in the Housing Element with respect to housing: Goal 1: Promote the provision of housing by both the private and public sector for all income groups in the community. Goal 2: Conserve and enhance existing residential neighborhoods, while encouraging a supply of housing units sufficient to assure each resident an attractive, healthful, safe enviromnent within a wide range of designs, types, sizes, and prices. Goal 3: Provide housing for groups with special needs. South San Francisco Redevelopment Agency VI-22 1999 Five Year Implementation Plan 2002 Mid-Term UPdate Goal 4: Promote equal opportunity to secure, safe, sanitary, and affordable honsing for everyone in the community regardless of age, race, gender, religion, marital status, national origin, disability, sexual orientation, and other arbitrary factors. Goal 5: Protect neighborhoods and housing from natural and man-made hazards. Goal 6: Encourage energy efficiency in all new and existing homes. 1. Housing Programs and Activities The 1994 hnplementation Plan adopted numerous programs and activities to support the development of affordable housing over the five year period. The Agency has made steady progress in its efforts to meet its affordable housing goals. The Agency has successfully developed affordable housing units in the two Project Areas and will continue to aggressively pursue the development of affordable housing units at other sites in the future. Following are the major housing progrmns fi-om the 1994 Implementation Plan and the Agency's activities that have supported its goals since fl~e adoption of the 1994 hnplementation Plan: Program #1: Encourage the development of affordable housing. Program #2: Provide housing opportunities and support services for very low income renters and persons with special needs. Program #3: Provide services-enriched shelter and transitional housing for homeless persons and families and prevent households at-risk front becoming homeless. Program #4: Provide opportunities for low and moderate income homeowners to maintain and repair their homes and promote neighborhood revitalization. Program #5: Provide homeownership opportunities for first-time homebuyers earning less than 120% of median income. Over the next ten years, the Redevelopment Agency will continue to concentrate on achieving those goals and programs which are most applicable to the Agency's affordable housing activities. The Agency intends to continue undertaking housing acquisition and rehabilitation activities that will assist the City in achieving Programs 1,2 and 4. The Agency continues to fund transitional housing and emergency shelter programs addressing the special needs of Program 3. The newly adopted Inclusionary Ordinance and Density Bonus Ordinance will create new affordable housing units which will be marketed by the Agency to ensure availability to low and moderate income households. Agency staff provides technical assistance to developers in the creation of their required below market rate units as indicated in Program 1. The Agency will continue to sponsor new housing construction as opportunities present by working with for profit or not for profit developers. The Agency will assist in consolidating in fill parcels, acquiring vacant sites, providing incentives and encouraging mixed use projects, South San Francisco Redevelopment Agency V1-23 1999 Five Year Implementation Plan 2002 Mid-Tema Update second units, and providing flexible standards where feasible. These housing production activities will particularly assist in achieving Programs 3 and 5. In 2002, the Agency approved a First Time Home Buyer Loan Program reflecting the priority goal of Program 5..The policies and procedures have been established and the Agency has set aside $250,000 for the loan program. The funds will be leveraged with the below market rate units produced through the inclusionary requirement and funds will be used to write down the cost ofhomeownership, making new units affordable to low and moderate income households. Additionally, loans can be made available to city and school district staff for acquisition of units that may be on the market in our City. The Agency insists on promoting housing opportunities for all persons in its programs, meeting Programs 1 and 2. Federal and redevelopment funds are allocated on a yearly basis for fair housing counseling and mediation services to address habitability issues, particulary in the downtown project area. Program #1: Encourage the development of affordable housing. Planned Activities: · Provide assistance from all departments within the bounds of local ordinances to stimulate affordable housing production. · Provide technical assistance and financial assistance to nonprofit developers to provide feasibility analysis, and other redevelopment assistance to encourage affordable units. · Implement the Inclusionary Zoning Ordinance which requires twenty percentage of all units produced in the City to be affordable to low and moderate income families. · Provide assistance to developers in consolidating in fill parcels, acquiring vacant sites, providing incentives and encouraging mixed use projects. Accomplishments: · Provided funding to Mid-Peninsula Housing Coalition and the Bridge Housing Corporation for feasibility analyses of several potential housing sites and continues to work with these agencies for the development of the most appropriate sites. · Provided $3.4 million in funding, in combination with HUD 202 funds, to the Chestnut Creek Senior Housing Project to develop 40 units of very low income senior rental housing (at 40% of median). New construction began in 2001 on the vacant site at the coiner of Chestnut Ave. and Mission Road and the units are anticipated to be leased in January of 2003. · Negotiated for one below market rate unit at 290 Hillside Avenue to be made available to a City employee in the Downtown Project Area. · Adopted Inclusionary Housing Ordinance and Density Bonus Ordinance for residential developments within the City, requiring that twenty percent of all housing units be affordable to low and moderate income households.. South San Francisco Redevelopment Agency VI-24 1999 Five Year hnplementation Plan 2002 Mid-Term Update. · Negotiated for five below market rate units at the Oak Farms development located at Grand and Oak Avenues in the Downtown Project Area. · Negotiated for three below market rate units in the Oak Avenue Apart~nents, also located on Oak Avenue. Program #2: Provide housing opportunities and support services for very low income renters and persons with special needs. Planned Activities: · Undertake programs to provide financial assistance for acquisition and/or physical improvements to existing boarding rooms, single room occupancies, and other existing rental units. · Increase the suppl~, of affordable rental units by providing financial assistance to developers for the creation of new multifamily rental units. · Provide financing or incentives to preserve affordable housing at risk of reverting to lnarket rate as subsidies expire. · Undertake rehabilitation programs for older rental units posing a health hazard due to lead poisoning, and modifications to enhance accessibility for the disabled. Accomplishments: · Provided funding for substantial rehabilitation for 68 SR© units at the Metropolitan Hotel and 16 units at the Grand Hotel, with 8 additional units at the Grand Avenue Apartments. · Funded the Mid-Peninsula Housing Coalition's feasibility analyses for development of several affordable housing projects. · Provided a $960,000 Agency loan for 34 affordable housing units at Mid-Peninsula's Greenridge Development at the McClellan site. · Acquired and rehabilitated 339-341 Commercial Avenue leveraging CBDG, HOME and Agency funds to provide housing affordable to very low income tenants. · Sponsored the acquisition and rehabilitation by Mid Peninsula Housing Coalition of four plex units in the Willow Gardens neighborhood. To date, three four plex structures have been acquired and rehabilitated and four more, four plex structures, will be acquired in November of 2002. the Grand Hotel. South San Francisco Redevelopment Agency VI-25 1999 Five Year Implementation Plan 2002 Mid-Term Update~ Program #3: Provide services-enriched shelter and transitional honsing for homeless persons and families and prevent households at-risk from becoming homeless. Planned Activities: · Stimulate the construction of new shelter and transitional opportunities by: - Providing direct financial support or incentives, - Streamlining the permit process, - Providing density bonuses and other forms of assistance within the bounds of local ordinances and policies, and, - Working with San Mateo County Task Force to identify a location for the new shelter. Accomplishments: · Provided on-going operating funds to the Hmnan Investment Project for a shared housing program which matches individuals who cannot afford the rents of conventional aparttnents with people who are willing to share extra space in their homes. · Provided on-going operating grant funds to Shelter Network, which provides housing and services for homeless persons, for two of its programs: Family Crossroads Transitional Housing and the Maple Street Shelter. · Acquired and rehabilitated a three bedroom, single family home, which is leased to Shelter Network for $ 800 per month, as a transitional house for graduates of their program, · Co-Sponsored the acquisition and installation of a new North County Homeless Shelter, located in South San Francisco, providing $102,000 for acquisition in fiscal year 2001 and on-going operating costs of $7,000 per year. Program #4: Provide opportunities for low and moderate income homeowners to maintain and repair their homes and promote neighborhood revitalization. Planned Activities: · Provide low interest loans for housing rehabilitation for very low, low and moderate income homeowners to maintain and repair their homes. Accomplishments: · The City provided CDBG grant and loan funds for rehabilitation and minor home repairs for low income homeowners in the Downtown/Central Project Area. · The City instituted a highly successful hmne repair voucher program, which provides up to $2,500 for emergency home repairs for very low and low income homeowners. · Continue provision of housing funds for rehabilitation of affordable rental units in order to maintain the city's historically affordable housing stock. South San Francisco Redevelopment Agency VI~26 1999 Five Year hnplelnentation Plan 2002 Mid-Term Update Program//5: Provide homeownership opportunities for first-time homebuyers earning less than 120% of median income. · Promote the Agency's interest in developing affordable housing. · Provide assistance or incentives to stimulate the creation of new homeownership opportunities. · Provide financing to subsidize the purchase or buy down the developers' cost of new housing to create housing affordable to persons of moderate income. · Support efforts to provide first time homebuyer opportunities by working with other agencies with housing programs, Mortgage Credit Certificate and Corporate Homebuyer Programs. Accomplishments: · In 1994, the City assisted in the marketing of the Start Program, a first time homebuyer's program developed by the County. This Progran~, which provided defen'ed loans for downpayment assistance and closing costs, used up all fi~nds within two months of starting the program due to the high demand for the available funds. · The City participates in the County-administered Mortgage Credit Certificate Program, which provides a tax reduction for eligible low and moderate income homebuyers. · Adopted First Time Home Buyer policies and procedures in 2002 and allocated $250,000 to initiate loan program for low and moderate income households. Funds will be targeted to city and school district employees. · Negotiated with developers for below market rate units as required by the City's Inclusionary Ordiannce. Agency funds will be used to write down affordability levels to low income households for the acquisition of new units to be developed in the next few years. · The Agency will implement workshops for new home buyers to assist them in the acquisition of their first home, providing counseling, teclmical assistance, and financial assistance as required. · Marketed the first below market rate unit targeting city and school district employees. The Hillside Avenue unit is scheduled to be occupied in December of 2002. A city employee won the lottery for this unit and will be offered a silent second loan to assist with the down payment. G. HOUSING SET-ASIDE FUND The primary funding source for the Agency's affordable housing activities during the Implementation Plan period is the 20 percent portion of annual tax increment revenue deposited by the Agency into its Housing Fund. The history, status, and estimated future level of deposits in the Housing Fund are described below. South San Francisco Redevelopment Agency VI-27 1999 Five Year Implementation Plan 2002 Mid-Term Update O0 1. History and Status The Agency first deposited moneys into its }lousing Set-Aside Fund in Fiscal Year 1983/84. In succeeding years, the Agency has made deposits to the Housing Fund and/or direct expenditures in an amount not less than 20 percent of the cumulative tax increment revenue allocated to the Agency during that period. As Table VI-8 shows, the Agency's Housing Set-Aside Fund had a remaining excess surplus of $542,489 in FY 1998/99. State law requires that fi~nds be committed within three years of their becoming "excess surplus" which is defined as the greater of $1,000,000 or the difference between the total of the previous four years' 20% deposits to the Fund and the unencumbered balance at the end of the current fiscal year. The law allows an Agency to offset the "excess surplus" with the previous year's expenditures and encumbrances. The Agency expects excess surplus for subsequent fiscal years will be eliminated with significant expenditures for planned housing projects, including the Willow Gardens project. Table VI-8 Honsing Fund Excess Surplus As of Fiscal Year 1998/99 Annual Tax Sum of Deposited Increment Tax Increment in Excess Surplus Deposited in Housing Fund Balance for Housing from Previous Each Fiscal Fiscal Fund Four Years Year as of 7/98 Year 1994/95 $ 688,478 1995/96 $600,457 ~~:¢ $0 1996/97 $723,829 ~: $0 1997/98 $794,399 .... ~ $0 1998/99 $910,530 ~} $0 999/2000, ,222,s62 ,a60, 7 Source: South San Francisco Redevelopment Agency. Amount Expended and Encumbered in FY 98/99 Against Excess Surplus Remaining Excess Surplus $0 $0 $o $o $o $o $0 $o $o ($860,373) $0 ($1,156,037) $539,643 2. Deposits During Next Five Years The Agency will deposit 20 percent of annual tax increment revenue fl'om all four project areas into the Housing Fund. The total five-year (2000-2004) deposit of tax increment revenue into the Housing Fund is estimated to be approximately $7.1 million. The Agency plans to expend its available funds in the next five years leaving a zero balance in the Housing Set-Aside Fund in 2004. Table VI-9 shows the projected Housing Set-Aside Fund available for the next five years: n The Agency received $910,530 during FY 1998/99. South San Francisco Redevelopment Agency VI-28 1999 Five Year Implementation Plan 2002 Mid-Term Updat~ 0 0 Table VI-9 Funds Available for Affordable Housingn Over the Five Year Planning Period Year Net TI to Ilousing Fund FY Ending 2000 $850,000 FY Ending 2001 $1,230,000 FY Ending 2002 $1,510,000 FY Ending 2003 $1,710,000 FY Ending 2004 $1,760,000 Total $7,050,000 Source: South San Francisco Redevelopment Agency The Agency anticipates using the majority of these funds for the proposed Willow Gardens project and the Chestnut Creek Senior Housing Project. Table VI-10 shows the proposed expenditures for the next five years. The projected available revenues and proposed expenditures over the next five years are preliminary estimates to be refined upon the adoption of the Agency's affordable housing strategy. Table VI-10 Projected Expenditures Over the Five Year Planning Period 99/00 00/01 New A'ffordable $0 Housing Senior Housing $500,000 Acquisition/ $650,000 Rehabilitation Rehabilitation Loans $60,000 First-time $500,000 Homebuyers Homeless Shelter/ $50,000 Transitional Housing Annual Total $1,760,000 01/02 02/03 $0 $0 $500,000 $2,000,000 $500,000 $0 $500,000 $1,500,000 $500,000 $60,000 $100,000 $150,000 $2,000,000 $500,000 $500,000 $160,000 $175,000 $200,000 $4,720,000 $2,775,000 $1,850,000 Source: South San Francisco Redevelopment Agency 03/04 Program Total $500,000 $1,000,000 $1,000,000 $4,000,000 $500,000 $3,650,000 $150,000 $520,000 $500,000 $4,000,000 $200,000 $785,000 $2,850,000 $13,955,000 The projected expenditures of about $14 million exceed project tax increment revenues of approximately $7 million. The proposed projects will require additional sources of funding. The Agency will seek to leverage its Housing Fund revenue with other funding sources devoted to the provision of affordable housing to maximize the number of affordable units that can be developed or rehabilitated with the available ttousing Funds. These other funding sources n Rounded to the nearest $10,000. South San Francisco Redevelopment Agency VI-29 1999 Five Year hnplementation Plan 2002 Mid-Term Update.~ 0 include Community Development Block Grants (CDBG) and Home Investment Partnership funds from the U.S. Department of Housing and Urhan Development, California Housing Finance Agency (CHFA) and Department of Housing and Community Development (HCD) program funds at the State level, and low income housing tax credit equity funds. 3. Targeting of the Housing Fund The Agency plans to target its Housing Fund to specific income groups based on its fair share of regional housing needs as determined by the Association of Bay Area Governments. Over the life of the Plan, it is the Agency's policy that at least 36 percent of units assisted with Housing Fund moneys will be for very low income households and at least 18 percent for low income households to supply its regional fair share of housing as determined by ABAG. The remaining units assisted by means of the Housing Fund may be aflbrdable to any of the three income categories. As shown in Table VI-11, over the next ten years, the majority of housing funds will assist very low income households. Table VI-I 1 Units Produced With Honsing Funds and Proportion by lucome Category Historical & Projected Assisted Very Low Low Moderate Total Affordable Units Produced Units [ % Units ] % Units ] % Units 1% Historical To 1999 136 100% 0 0% 0 0% 136 100% 1999-2002 4 33% 8 67% 0 0% 12 100% Projected 2000-2004 Total 144 ] 64% 60 68 79% I 12 31% 112 15% 76 100% 224 100% The Agency recognizes the important role of housing programs and activities in its redevelopment program. Consequently, the proposed affordable housing programs should be viewed not simply as the means of implementing the Agency's stated goals and objectives related to affordable housing but as key elements in its overall revitalization efforts. Programs proposed to meet the Agency's Housing Production Requirement over the next five years are discussed below. H. FIVE YEAR PRODUCTION GOALS This section describes the Agency's housing program with estimates of the number of new, rehabilitated and price-restricted housing units to be assisted with expenditures from the Housing Fund over each of the next five years. South San Francisco Redevelopment Agency VI-30 1999 Five Year hnplementation Plan 2002 Mid-Term Update In the near future, staff will present a draft Inclusionary Zoning Ordinance for review by the Agency Board. It is recommended that the Agency Board adopt a policy consistent with the CRL that requires developers to provide the affordable units on site for each development. FY 1999/00 · Acquire and rehabilitate four very low income units at Commercial Avenue. · Market Ping Psn unit at the Hillside Development via the Start Program. FY 2000/01 · Amend Redevelopment Plan to include the Willow Gardens site in E1 Camino Corridor Project Area to rehabilitate 60 units of affordable housing. FY 2001/02 · Begin construction of 40 units of senior housing at the Mission Chestnut Site. · Begin the approval process for the potential development of 20 affordable units on Mission Road near BART. · Continue the acquisition and rehabilitation of units at Willow Gardens. FY 2002/03 · Complete and lease senior housing at Mission Chestnut Site. · Continue the acquisition and rehabilitation of units at Willow Gardens. · Begin the approval process for the potential development of 44 to 88 new units of affordable housing with commercial retail space at the Paradise Valley site. FY 2003/04 Develop plans for the entitlement process for potential affordable housing at the Paradise Valley site. Complete rehabilitation of Willow Gardens, providing 60 units of low income housing. The five year goals reflect the best projections that the Agency can make at this time of projects that may develop in tlfis time period. If these projects are developed as foreseen, then the units developed will address the range of housing needs. By combining various funding sources and working with non-profit affordable housing developers, the Agency may be able to accelerate affordable housing development, as it has done in the past. South San Francisco Redevelopment Agency VI-31 1999 Five Year Implementation Plan 2002 Mid-Term Update 00 Appendix A Table A-1 Tax Increment Projections Downtown Central Redevelopment Project Area (In Future Value, or "Actual" Dollars) Year Fiscal (N) Year Base 11 12 13 14 15 TOTAL 1988/89 1999/00 2000/01 2001/02 2002/03 2003/04 Tax Increment to Agency Agency Obligations (1) (2) (3) (4) (5) (6) Gross County Tax Pass- Bond Agency Tax Admln Increment Through Debt Admin Revenues* Fee to Agency Payments Service Expenses Net Tax Increment Net Tax Increment Available for Available for Housing Programs Non-Housing Projects (7) (8) (9) (10) Annual Cumulative Annual Cumulative 2,054,497 0 2,054,497 0 761,228 0 2,685,074 0 2,685,074 0 758,623 0 3,285,248 0 3,285,248 0 760,520 0 3,486,920 0 3,486,920 0 757,013 0 3,600,850 0 3,600,850 0 758,033 0 15,112,589 0 15,112,589 0 3,795,417 0 410,899 410,899 882,369 882,369 537,015 947,914 1,389,436 2,271,806 657,050 1,604,964 1,867,679 4,139,484 697,384 2,302,348 2,032,523 6,~72,007 720,170 3,022,518 2,122,647 8,294,654 3,022,518 * Based on revenues from Basic Tax Increment (1.0%), exclusive of bond ovemdes. 8,294,654 Assumptions: County Admin Fee as a % of "Basic Tax R 0.0% Agency Administration Annual Increase: 0.0% TI for Housing Programs as a % of"TI to _~ 20% Seifel Associates TI tables Tables4 3.xls Appendix A Table A-2 Tax Increment Projections E1 Camino Corridor Redevelopment Project Area (In Future Value, or "Actual" Dollars) Year Fiscal (N) Year Base 6 7 8 9 10 TOTAL 1993/ 94 1999/00 2000/01 2001/ 02 2002/ 03 2003/04 Tax Increment to Agency Agency Obligations (1) (2) (3) (4) (5) (6) Gross County Tax Pass- Bond Agency Tax Admin Increment Through Debt Admin Revenues* Fee to Agency Payments Service Expenses Net Tax Increment Net Tax Increment Available for Available for Housing Programs Non-Housing Projects (7) (8) (9) (10) Annual Cumulative Annual Cumulative 329,944 0 329,944 0 0 0 687,736 0 687,736 0 0 0 997,408 0 997,408 0 0 0 1,087,622 0 1,087,622 0 0 0 1,183,599 0 1,183,599 0 0 0 4,286,309 0 4,286,309 0 0 0 65,989 65,989 263,955 263,955 137,547 203,536 550,189 814,144 199,482 403,018 797,927 1,612,071 217,524 620,542 870,097 2,482,168 236,720 857,262 946,879 3,429,047 857,262 ~5~i~ ~ 3,429,047 ~i:)~;~::¢,~i~ * Based on revenues from Basic Tax Increment (1.0%), exclusive of bond ovemdes. Assumptions: County Admin Fee as a % of"Basic Tax R 0.0% Agency Administration Annual Increase: 0.0% TI for Housing Programs as a % of "TI to ~/20% Seffel Associates TI tables Tables4 3.xls Appendix A Table A-3 Tax Increment Projections Gateway Redevelopment Project Area (In Future Value, or "Actual" Dollars) Year Fiscal (iN) Year Base 1988/89 11 1999/00 12 2000/01 13 2001/02 14 2002/03 15 2003/04 TOTAL Tax Increment to Agency Agency Obligations (1) (2) (3) (4) (5) (6) Gross County Tax Pass- Bond Agency Tax Admin Increment Through Debt Admin Revenues* Fee to Agency Payments Service Expenses Net Tax Increment Net Tax Increment Available for Available for ltousing Programs Non-Housing Projects (7) (8) (9) (10) Annual Cumulative Annual Cumulative 1,627,024 0 1,627,024 0 0 0 2,097,812 0 2,097,812 0 0 0 2,266,440 0 2,266,440 0 0 0 2,825,212 0 2,825,212 0 0 0 2,874,451 0 2,874,451 0 0 0 11,690,939 0 11,690,939 0 0 0 325,405 325,405 1,301,620 1,301,620 419,562 744,967 1,678,249 2,979,869 453,288 1,198,255 1,813,152 4,793,021 565,042 1,763,298 2,260,169 7,053,190 574,890 2,338,188 2,299,561 9,352,751 2,338,188 * Based on revenues from Basic Tax Increment (1.0%), exclusive of bond overrides. Assumptions: County Admin Fee as a % of"Basic Tax R 0.0% Agency Administration Annual Increase: 0.0% TI for Housing Programs as a % of"TI to ~ 20% 9,352,751 SeifelAssociates Tl tablesTables4 3.xls Appendix A Table A-4 Tax Increment Projections Shearwater Redevelopment Project (In Future Value, or "Actual" Dollars) Year Fiscal (N) Year Base 13 14 15 16 17 TOTAL 1986/ 87 1999/ O0 2000/ O1 2001/ 02 2002/ 03 2003/04 Tax Increment to Agency Agency Obligations (1) (2) (3) (4) (5) (6) Gross County Tax Pass- Bond Agency Tax Admln Increment Through Debt Admin Revenues* Fee to Agency Payments Service Expenses Net Tax Increment Net Tax Increment Available for Available for Housing Programs Non-Housing Projects (7) (8) (9) (10) Annual Cumulative Annual Cumulative 231,068 0 231,068 0 0 673,174 0 673,174 0 0 982,333 0 982,333 0 0 1,132,084 0 1,132,084 0 0 1,152,705 0 1,152,705 0 0 4,171,363 0 4,171,363 0 0 0 46,214 46,214 184,854 184,854 0 134,635 180,848 538,539 723,394 0 196,467 377,315 785,866 1,509,260 0 226,417 603,732 905,667 2,414,927 0 230,541 834,273 922,164 3,337,091 0 834,273 2,042,381 3,337,091 8,169,526 * Based on revenues from Basic Tax Increment (1.0%), exclusive of bond ovemdes. Assumptions: County Admin Fee as a % of"Basic Tax R 0.0% Agency Administration Annual Increase: 0.0% TI for Housing Programs as a % of"TI to ~ 20% Seifel Associates TI rubles Tables4 3.xls StaffReport DATE: TO: FROM: SUBJECT: March 26, 2003 The Honorable Mayor and City Council Steven T. Mattas, City Attorney Adopt an Ordinance of the City Council of the City of South San Francisco amending Chapter 4.04 (Purchasing System) of the South San Francisco Municipal Code RECOMMENDATION: Adopt an Ordinance of the City Council of the City of South San Francisco amending Chapter 4.04 (Purchasing System) of the South San Francisco Municipal Code BACKGROUND/DISCUSSION: Council has previously waived reading and introduced the following ordinance. The Ordinance is now ready for adoption. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO AMENDING CHAPTER 4.04 (PURCHASING SYSTEM) OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE (Introduced 3/12/03 - Vote 4-0-1, Councilmember Raymond Green, absent) By: X~S~t t~a~~~y~At t ol.n e y Michael A Wilson, C y ager Enclosure: Ordinance ORDINANCE NO. AN ()RDINANCE OF THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO AMENDING CHAPTER 4.04 (PURCHASING SYSTEM) OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE WHEREAS, the City Council has determined that Chapter 4.04 of the Municipal Code should be amended to take advantage of alternatives allowed by the California Public Contract and Government Codes, expedite project delivery, continue to foster competition among vendors, and maintain management and City Council oversight of significant expenditures. NOW THEREFORE, the City Council of the City of South San Francisco does ORDAIN as follows: SECTION 1. CHAPTER 4.04 AMENDED Chapter 4.04 of the South San Francisco Municipal Code is hereby amended as follows: 4.04.010. Adopted -Purpose In order to establish efficient procedures for the acquisition of supplies, services and equipment at the lowest possible cost commensurate with quality needed, to dispose of surplus personal property to the best advantage of the City, to exercise positive financial control over purchases, to clearly define authority for the purchasing function and to assure the quality of purchases, a purchasing system is adopted. 4.04.030. Purchasing authority designated - Department head powers and duties The City Manager is designated as the purchasing authority for the City. He may delegate the duties of purchasing to department heads or any other city employee. Each department head shall have authority for his or her department to: a) Purchase or contract for supplies, services and equipment required by any using department in accordance with purchasing procedures prescribed by this chapter, such administrative regulations as the purchasing officer shall adopt for the internal management and operation of the purchasing system and such other rules and regulations as shall be prescribed by the City Council. b) Negotiate and recommend execution of contracts for the purchase of supplies, services and equipment. c) Act to procure for the City the needed quality in supplies, services and equipment at least expense to the City. d) Discourage uniform bidding and endeavor to obtain as full and open competition as possible on all purchases. e) Prepare and recommend to the City Council rules governing the purchase of supplies, services and equipment for the City. f) Prepare and recommend to the City Council revisions and amendments to the purchasing rules. g) Prescribe and maintain such forms as reasonably necessary for the operation of this chapter and other rules and regulations. h) Supervise the inspection of all supplies, services and equipment purchased to insure conformance with specifications. i) Recommend the transfer of surplus or unused supplies and equipment between departments as needed and the sale of all supplies and equipment which cannot be used by a department or which have become unsuitable for City use. j) Maintain a bidder's list, vendor's catalog file and records needed for the efficient operation of the purchasing system; k) Join with other governmental agencies in joint purchasing endeavors where the purchasing procedures substantially conforms to this chapter and state law. 4.04.040. Agreements with other governmental agencies a) The department head may authorize in writing any other governmental agency to purchase or contract for specified supplies, services and equipment. He shall ensure that such purchases or contracts by other governmental agencies be made in conformance with the procedures established by state law. This authority includes the authority to act as lead agency when appropriate. (Ord. 857 § 4, 1981). b) Except for public projects over $25,000 as defined by the Uniform Public Construction Cost Accounting Act, Sections 22000 et seq., of the Public Contract Code, City purchases may be made by taking advantage of valid contract terms that have been negotiated by another governmental agency, if that agency had used a quote or bid process that substantially conforms with the procedures established by state law and this chapter. In these cases, City staff shall verify and document such conformance. 4.04.060. Departmental requisition procedure Using departments shall submit requests for supplies, services and equipment to the department head and to the Finance Department on such standard forms as may be prescribed in the Administrative Instructions Manual. 4.04.070. Abbreviated bid procedures for public projects Public projects, as defined by the Uniform Public Construction Cost Accounting Act, Sections 22000 et seq., of the Public Contract Code, of one-hundred thousand dollars ($100,000) or less may be let to contract by abbreviated procedures as set forth in Sections 22032 et seq. of that code. 4.04.071. Contractors list A list of contractors shall be developed and maintained in accordance with the provisions of Section 22034 of the Public Contract Code and criteria promulgated from time to time by the California Uniform Construction Cost Accounting Commission. 4.04.072. Notice inviting abbreviated bids Where a public project is to be performed which is subject to the provisions of this Chapter, a notice inviting abbreviated bids shall be mailed to all contractors for the category of work to be bid, as shown on the list developed in accordance with Section 4.04.071, and to all construction trade journals as specified by the California Uniform Construction Cost Accounting Commission in accordance with Section 22036 of the Public Contract Code. Additional contractors and/or construction trade journals may be notified at the discretion of the department soliciting bids; provided however: a) If there is no list of qualified contractors maintained by the City for the particular category of work performed, the notice inviting bids shall be sent only to the construction trade journals specified by the Commission. b) If the product or service is proprietary in nature such that it can be obtained only from a certain contractor or contractors, the notice inviting abbreviated bids may be sent exclusively to such contractor or contractors. 4.04.073. Formal bid procedures for major public projects Contracts for public projects as defined by the Uniform P'ublic Construction Cost Accounting Act, Sections 22000 et seq., of the Public Contract Code, in an amount exceeding one-hundred thousand dollars ($100,000) shall be accomplished using the bidding procedure described in this section. a) Notice Inviting Bids. Notices inviting bids shall distinctly describe the project, shall state where bid blanks and specifications may be secured, and shall state the time and place for the receiving and opening of sealed bids. Published Notice. Notice inviting bids shall be published at least fourteen calendar days before the date of opening the bids in a newspaper of general circulation, printed and published in the City. ii. Construction Trade Journals. The notice inviting formal bids shall also be mailed to all construction trade journals as specified by the California Uniform Construction Cost Accounting Commission in accordance with in Section 22036 of the Public Contract Code. The notice shall be mailed at least thirty calendar days before the date of opening the bids. b) Bidder's Security. All bids presented in connection with the public project shall be accompanied by bidder's security in the form and amount prescribed by Public Contract Code Section 20170 et seq., which security shall be dealt with as prescribed therein. In all cases bidders shall be entitled to return of bid security provided that a successful bidder shall forfeit his bid security upon refusal or failure to execute the contract within ten days after the notice of award of contract has been mailed, unless the City is responsible for the delay. The City Council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. If the City Council awards the contract to the next lowest bidder, the amount of the lowest bidder's security shall be applied by the City to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. c) Bid Opening Procedure. Sealed bids shall be submitted to the finance department and shall be identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the public notice. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than thirty calendar days after the bid opening. d) Rejection of Bids or No Bids Received. In its discretion, the City Council may reject any and all bids presented and readvertise for bids. If no bids are received, the City Council may award the project by negotiated contract. e) Award of Contracts. Contracts shall be awarded by the City Council to the lowest responsible bidder except as otherwise provided herein. Tie Bids. If two or more bids received are for the same amount or unit price, quality and service being equal, and if the public interest will not permit the delay of readvertising for bids, the City Council may accept the one it chooses or accept the lowest bid mhde by negotiation with the tie bidders or may utilize a public drawing. g) Performance Bonds. The department head shall have authority to require a performance bond before entering a contract in such amount as he finds reasonably necessary to protect the best interests of the City. If the department head requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids. (Ord. 960 §§ 2, 3, 1984; Ord. 857 § 10, 1981). 4.04.080. Open market procedures for purchases and sales exclusive of public projects. a) Purchases of supplies, services, equipment and the sale of personal property that do not fall under Sections 4.04.070 or 4.04.073 shall be by the open market procedures described in this section when the estimated value, exclusive of sales tax and freight, exceeds Ten thousand dollars ($10,000). Open market procedures may be dispensed with only when an emergency requires that an order be placed with the nearest available source of supply or when .the commodity can be obtained from only one vendor. b) The department head shall solicit open market quotes or bids as outlined below by written requests to prospective vendors, by telephone, or by public notice posted on a public bulletin board in the City hall. At least three quotes shall be obtained from vendors for all items not exceeding $25,000, and shall be submitted to the department head who shall keep a record of all open market orders for a period of one year after the submission of bids or the placing of orders. Said record, while so kept, shall be open to public inspection. ii. At least three written bids shall be submitted to the department head for items over $25,000 except professional services. Department head shall keep a record of all' open market bids for a period of one year after the submission of bids or the placing of orders. Said record, while so kept, shall be open to public inspection. iii. Purchases of professional services. a) When entering a professional services contract, the skill or ability of the entity or person performing the services is a key component of the selection criteria. The selection should therefore be on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required. Cost is only one factor in determining the selection. b) In these cases, the department head shall solicit requests for proposals or requests for quotations to prospective vendors either by mail, by telephone, or by public notice posted on a public bulletin board in the City h'.all. c) Proposals or quotations shall be submitted to the department head who shall keep a record of all open market orders for a period of one year. Said record, while so kept, shall be open to public inspection. 4.04.090. Use of purchase orders Purchases of supplies, services and equipment in the amount specified in the administrative rules and regulations shall be made by purchase order. 4.04.091. Encumbrance of funds only in cases of emergency Except in cases of emergency, the department head shall not issue any purchase order for supplies, services or equipment unless there exists an unencumbered appropriation against which the purchase is to be charged. 4.04.095. Written contract required for public projects and major acquisitions and sales a) Purchases and contracts, exceeding twenty-five thousand dollars ($25,000), for supplies, services, equipment and the sale of personal property, including those associated with a public project as defined by the Uniform Public Construction Cost Accounting Act, Sections 22000 et seq., of the Public Contract Code, shall be by written contract with; i. The lowest responsible bidder; ii. In the case of sales by the City, the highest responsible bidder; or iii. In the case of professional or personal services contracts, based on the criteria established in Section 4.04.080(b)(3)(i). Such purchases and contracts shall be pursuant to the procedures set forth in this chapter. b) All written contracts regardless of amount shall be reviewed by the City Attorney's Office. 4.04.096. Dollar limits for approvals a) Purchases of supplies, services, public projects, and equipment and the sales of personal property shall be approved by: i. The department head, if such purchases or sales do not exceed twenty-five thousand dollars ($25,000). ii. The City Council, if such purchases or sales exceed twenty-five thousand dollars ($25,000). b) All written contracts shall be approved by the City Manager. All such contracts exceeding twenty-five thousand dollars ($25,000) shall be also approved by the City Council. c) All real property acquisitions or real property lease contracts with a term of three years or more, regardless of amount, shall be approved by the City Council. d) The City Council can delegate the authority described in this section, with the exception of subsection (c), to the City Manager. 4.04.120. Inspection, testing and acceptance responsibility The responsibility for the inspection, testing and acceptance of all supplies, equipment and contractual services performed shall rest with the department head concerned. 4.04.130. Surplus supplies and equipment All using departments shall submit to the Finance Department, at such time and in such form as prescribed, reports showing all supplies and equipment which are no longer used or which have become obsolete or worn out. The Finance Department shall have authority to sell all supplies and equipment which cannot be used by any department or which have become unsuitable for City use, or to exchange the same for, or trade in the same on, new supplies and equipment. Such sales shall be made pursuant to Section 4.04.080. The bid procedure may be omitted when the amount involved is less than the amount specified in Section 4.04.080, and the City Manager gives his approval for such omission in the best interests of the City. SECTION 2. SEVERABILITY If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of this ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this ordinance are severable. The City Council of the City of South San Francisco hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable. SECTION 3. PUBLICATION AND EFFECTIVE DATE Pursuant to the provisions of Government Code Section 36933, a Summary of this Ordinance shall be prepared by the City Attorney. At least five (5) days prior to the Council meeting at which this Ordinance is scheduled to be adopted, the City Clerk shall (1) publish the Summary, and (2) post in the City Clerk's Office a certified copy of this Ordinance. Within fifteen (15) days after the adoption of this Ordinance, the City Clerk shall (1) publish the summary, and (2) post in the City Clerk's Office a certified copy of the full text of this Ordinance along with the names of those City Council members voting for and against this Ordinance or otherwise voting. This ordinance shall become effective thirty days from and after its adoption. Introduced and adopted at a regular meeting of the City Council of the City of South San Francisco, held the __ day of ,2003. Adopted as an Ordinance of the City of South San Francisco at a regular meeting of the City Council held the AYES: NOES: ABSTAIN: ABSENT: day of, 2003 by the following vote: ATTEST: City Clerk As Mayor of the City of South San Francisco, I do hereby approve the foregoing Ordinance this __ day of ,2003. Pedro Gonzalez, Mayor StaffReport DATE: TO: FROM: SUBJECT: March 26, 2003 The Honorable Mayor and City Council Director of Public Works 2002 - 2003 STREET SLURRY SEAL PROJECT PROJECT NO. ST-02-5, BID NO. 2331 RECOMMENDATION: It is recommended that the City Council adopt a resolution awarding the construction contract for the 2002 - 2003 Street Slurry Seal Project to American Asphalt R & R, Inc., of Hayward, California, in the amount of $94,133.21. BACKGROUND: In November 2002, City staff used the City's pavement management program to identify the streets that needed the asphalt slurry seal treatment. Upon generation of the street lists, staff coordinated with the Streets Maintenance Department to prioritize the list based on street classification, costs and amount of vehicular traffic. Shown below is the list of streets included on this project: Item No Street Name Beginning End Treatment 1 Derry Way Gellert Blvd. Gellert Blvd. Slurry Seal 2 Devlin Way Gellert Blvd. Gellert Blvd. Slurry Seal 3 Tara Lane Oakmont Avenue Galway Place Slurry Seal 4 Duval Drive Arlington Drive Arlington Drive Slurry Seal 5 Lamonte Drive Newman Drive Keoncrest Drive Slurry Seal 6 Theresa Drive Romney Avenue Lacrosse Avenue Slurry Seal 7 Zita Drive Romney Avenue Lacrosse Avenue Slurry Seal 8 Delbrook Avenue Crestwood Drive Morningside Avenue Slurry Seal 9 Sequoia Avenue Baywood Avenue Miller Avenue Slurry Seal 10 Aspen Avenue Maple Avenue Cypress Avenue Slurry Seal 11 Pine Avenue Maple Avenue Airport Blvd. Slurry Seal 12 Lux Avenue Maple Avenue Spruce Avenue Slurry Seal 13 Grand Avenue Airport Boulevard Maple Avenue Slurry Seal 14 Grand Avenue Maple Avenue Spruce Avenue Slurry Seal 15 Hill Avenue Fairway Drive Southwood Drive Slurry Seal Staff Report ro~ Re: Date: The Honorable Mayor and City Council 2002 - 2003 Street Slurry Seal Project Project No. ST-02-5, Bid No. 2331 March 26, 2003 Page: 2 of 3 Item No Street Name Beginning End Treatment 16 Haven Avenue Fairway Drive End Slurry Seal 17 Bryce Avenue Haven Avenue End Slurry Seal 18 Lassen Street Ponderosa Road Bryce Avenue Slurry Seal 19 Wildwood Drive Rosewood Drive Briarwood Drive Slurry Seal 20 Springwood Drive Wildwood Drive Rockwood Drive Slurry Seal 21 Sherwood Drive Wildwood Drive Rockwood Drive Slurry Seal 22 Mosswood Drive Brentwood Drive End Slurry Seal 23 Ravenwood Way Rockwood Drive End Slurry Seal 24 Pine Terrace Lux Avenue Maple Avenue Slurry Seal The Engineering Division advertised the subject project and opened bids on March 6, 2003. The following were the bid results: CONTRACTOR BID AMOUNT American Asphalt R & R, Inc. Hayward, CA $ 94,133.21 Bond Blacktop, Inc. Union City, CA $ 99,875.5O Valley Slurry Seal, Co. West Sacramento, CA $105,532.13 Graham Contractors, Inc. San Jose, CA $110,256.10 California Paving Maintenance Co., Inc. Sacramento, CA $110,312.59 Intermountain Slurry Seal, Inc. Watsonville, CA $122,124.57 American Asphalt R & R, Inc., has worked with the City on previous projects. Staff has reviewed their qualifications and references and found them to be satisfactory. The time allotted for this project is 30 working days. Staff recommends that the contract be awarded to American Asphalt R & R, Inc., in the amount of $94,133.21 (Base Bid in the amount of $68,306.31 plus Alternate Bid No. 1 in the amount of $25,826.90). Staff Report To: Re: Date: The Honorable Mayor and City Council 2002 - 2003 Street Slurry Seal Project Project No. ST-02-5, Bid No. 2331 March 26, 2003 Page: 3 of 3 The following is a cost breakdown for the project budget: Construction 10% Contingency 10% Administration/Inspection Total $ 94,133.21 $ 9,500.O0 $ 9,50O.OO $113,133.21 FUNDING: Funding for this project is included in the City of South San Francisco's 2002 - 2003 Capital Improvement Program (CIP). Sufficient funds are available for this project. J . Director of Public Works Approved: Michael A Wilson City Manager ATTACHMENT: Resolution RD/JG/ed RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AWARDING TIlE CONSTRUCTION CONTRACT FOR THE 2002-2003 STREET SI2 RRY SFAI. PROJECT rFo AMERICAN ASPHALT R & R, INC. IN THE AMOUNT OF $94,133.21 WHEREAS, staff desires to award the construction contact to the lowest responsible bidder, American Asphalt R & R, Inc. in the amount of $94,133.21; and WHEREAS, funding for this project is included in the City of South San Francisco's 2002- 2003 Capital Improvement Program. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council hereby awards the construction contract for the 2002-2003 Street Slurry Seal Project to American Asphalt R & R, Inc. in the amount of $94,133.21. 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 ,2003 by the following vote: AYES: NOES: ABSTAIN: ABSENT: S:\Current Reso's\3.26.03street.slurry.res.doc ATTEST: City Clerk StaffReport DATE: TO: FROM: SUBJECT: March 26, 2003 Honorable Mayor and City Council Assistant City Manager Resolution Approving Continued Participation in the City/County Association of Governments of San Mateo County (C/CAG) and Authorizing the City Manager to Execute the Joint Powers Agreement RECOMMENDATION It is recommended that the City Council adopt a resolution approving continued participation in the City/County Association of Governments of San Mateo County (C/CAG) and Authorizing the City Manager to Execute the Joint Powers Agreement. BACKGROUND/DISCUSSION C/CAG was founded in 1991 and renewed in 1995 and 1999. The current Joint Powers Agreement that provides C/CAG its legal basis is in effect until 12/1/03. Therefore, it is necessary to review C/CAG and consider reauthorization. C/CAG. The role of C/CAG is to: All the Cities and the County are currently members of C/CAG Role Provide a forum for all agencies to work together on common issues: Transportation NPDES Abandoned Vehicle Abatement Solid Waste Airport Land Use Commission Legislation · Educate and elevate the decision making of local elected officials and technical professional staffs to include/address countywide concerns in their local decisions. Date: March 26, 2003 To: Honorable Mayor and City Council Subject: Resolution Authorizing Continued Participation in the City/County Association of Governments of San Mateo County (C/CAG) and Approving the Joint Powers Agreement Page 2 · Develop a consensus on the common issues of concern to the general public, solutions, and applicable funding recommendations/priorities. · Act as Program Manager for Congestion Management Plan (CMA) Transportation funds (state and federal) and Air Quality funds (AB434/TFCA). C/CAG Performance C/CAG accomplishments include the Countywide Transportation Plan and the Transit Oriented Development Incentive Program. The C/CAG FY 02-03 Budget member dues/fees ($1,922,164) are leveraged 2.6 times for total revenue and 15.6 times for controlled transportation funds. Utilization of two direct staff and contract staff for the remaining tasks has minimized the staffing necessary to meet the program requirements. This staffing approach enables C/CAG to meet the program requirements in a cost-effective manner. Most of the C/CAG programs are mandates that must be performed. It is likely that the cost for the City of South San Francisco to perform the mandates provided by C/CAG would be significantly higher than the annual fee of $49,778.60. During the last four years the City of South San Francisco has paid $186,513 in fees and received $1,615,382 in funds programmed. As a member of C/CAG the City has had a voice in programming over $100M in transportation funds. A complete list of C/CAG's accomplishments, analysis and programs is attached. C/CAG Benefits Benefits of C/CAG to the member agencies includes: · Provide a forum to share ideas and solutions among agencies for common issues. · Enable all agencies to have a vote in the distribution of State and Federal Transportation funds ($70-80M every two years) allocated to San Mateo County. · Transportation funding provided to Cities and County. Provide support to assist agencies in getting and maintaining funds. · Provide cost-effective programs to assist member agencies in meeting mandates. · Provide active intergovernmental support for San Mateo County and the member agencies in the Region. · Provide additional information to agency staff on the system wide transportation impacts of proposed developments such that better local decisions can be made. Date: March 26, 2003 To: Honorable Mayor and City Council Subject: Resolution Authorizing Continued Participation in the City/County Association of Governments of San Mateo County (C/CAG) and Approving the Joint Powers Agreement Page 3 Joint Powers A~reement The agreement proposed is essentially identical to the one adopted by the City of South San Francisco in 1999. To assist in the review of the document changes are shown in bold below and in italics in the agreement. Key changes in the Joint Powers Agreement other than numbering or typographical include: Section 3 (f) added the following: (10) Legislative Committee o Section 12. dates changed to reflect reauthorization: "Effective Date/Termination Dat~. This agreement shall be effective on July 1, 2003, or upon its execution by the County and by at least eleven (11) cities representing the majority of the population of the County, whichever is later. This agreement shall automatically terminate on December 1, 2007, unless renewed in writing by the County and by at least eleven (11) cities containing a majority of the population of the County. Upon such termination, the provisions of Sections 10 and 11 apply." CONCLUSION In conclusion, Staff recommends that the City Council adopt a resolution approving continued participation in the City/County Association of Governments of San Mateo County (C/CAG) and that the City Manager be authorized to execute the Joint Powers Agreement. Respectfully submitted, Assistant City Ma~ Michael A. Wilson City Manager Attachments: 1. Resolution 2. C/CAG Accomplishments/Analysis/Programs 3. Joint Powers Agreement: Continuing Establishment of the City/County Association of Governments - Revised February 2003 RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AUTHORIZING THE JOINT POWERS AGREEMENT CONTINUING THE CITY'S PARTICIPATION IN THE CITY/COUNTY ASSOCIATION OF GOVERNMENTS WHEREAS, the current Joint Powers Agreement forming the City/County Association of Government expired December 1, 2003; and WHEREAS, the City/County Associated of Government Board of Directors unanimously recommends the continuation of City/County Association of Government and approval of the Joint Powers Agreement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council hereby authorizes the Joint Powers Agreement Continuing the City's participating in the City/County Association of Government. BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute the Agreement 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 ,2003 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk S:\Current Reso's\3.26.03 CCAG.res.doc C/CAG Accomplishments/Analysis/Programs C/CAG ACCOMPLISHMENTS Maior Policy Adoption · Countywide Transportation Plan · Transit Oriented Development Incentive Program · Land Use Implementation Policy · San Mateo Congestion Relief Program · Congestion Management Plans (1999 and 2001) Fiscal Management · 100% of STP and CMAQ funds Obligated in Pre and First Cycle · Raised $1.3 M (Annually for 4 years) from Cities/County and $750K(Annually for 4 years) from the Transportation Authority as part of the Congestion Relief Program · Raised $600-700K in partnerships for various studies and model runs · Through Prop 218 Oriented Process raised over $500K per year for NPDES Program (STOPPP) · Leveraged Member Assessments by 2.6 (Revenue) and 15.6 (Controlled) · Programmed $ 99.2M in State and Federal Transportation Funds · Programmed $ 4.4 M in Transportation Funds for Clean Air Program Intergovernmental (Region/State/Federal) · Highway 101 - Dumbarton Bridge Approach Study (Santa Clara County - $250K) · Bi-County Transportation Study -(San Francisco) · Pursued and Granted $15.725M in ITIP funding for Highway 101 Auxiliary Lane from 3rd Ave to Millbrae Ave (State) · Supported inclusion of Dmnbarton Rail Funding in the Proposed $3 Bridge Toll · Passed MS4 Audit by EPA with no violations identified Awards · MTC Grand Award for TOD Incentive Program · California Transportation Foundation "Tranny" Award for TOD Incentive Program · Samceda Award in Public Agency for Countywide Transportation Plan · 2002 EPA Smart Growth Award for TOD Incentive Program · Goal 17 of the Joint Venture Silicon Valley Index CONGESTION MANAGEMENT PROGRAM/ COUNTYWIDE TRANSPORTATION PLAN PURPOSE: · To develop a consensus on countywide transportation issues and to manage congestion to allow for orderly economic growth in San Mateo County. To educate and broaden the professional staff and elected officials such that their local decisions will benefit the county as a whole. · To collectively develop local and countywide transportation plans to minimize congestion. · To provide information to local agencies on the cumulative impact of local decisions · To relate land use and transportation decisions. · To maximize transportation funding for San Mateo Cotmty projects. BENEFITS: · Promotes countywide transportation planning among all agencies. · Involvement of elected officials and staff technical professionals will broaden their view such that individual decisions are more beneficial to all agencies in the region. · Better information is available to individual agencies to make land use decisions that will benefit congestion management. C/CAG BOARD ROLE: · Establish vision and long-term (twenty year) goals for resolving mobility and congestion issues in San Mateo County. · Program State and Federal funding to implement the vision and long-term goals. AB 434 - TRANSPORATION FUND FOR CLEAN AIR (TFCA) PURPOSE: The Bay Area Air Quality Management District's Transportation Fund for Clean Air program utilizes DMV fees to fund projects with the primary objective being to reduce emissions into the air. C/CAG as the Program Manager for San Mateo County administers the program. San Mateo County has the dual goal to both reduce air emissions mad improve congestion. BENEFITS: · Elimination of hydrocarbons and nitrogen oxides from the air 62.82 Tons C/CAG BOARD ROLE: · Establish annual program priorities for the use of the regional funds. · Contract for services with local agencies mad monitor the outcomes of these projects. · Allocate ftmds and provide fiscal oversite. NPDES STORMWATER MANAGEMENT PLAN PURPOSE: The Federal Clean Water Act mandates the NPDES- Storm Water Management Plan. San Francisco Bay Regional Water Quality Control Board (RWQCB) was charged with the permitting authority. The objective of the program is to minimize the pollutants in the water sources through non-point sources. C/CAG is the administrative and policy- malting authority responsible for implementation and compliance with the Countywide NPDES Municipal, Stormwater Discharge Permit. The permit was issued on July 1999 and remains in effect until September 2004 when it must be renewed. BENEFITS: · Achieves compliance with the Federal Mandate. · Reduces materials discharged into the Bay. · Assists mhd trains agencies on compliance with RWQCB requirements. Educates the public on their role in reducing discharges into the Bay. C/CAG BOARD ROLE: · Oversee compliance with the regional permit. · Adopt and oversee the implementation of programs and services to accomplish the conditions of the regional permit. · Establish a budget, determine revenues, and allocate resources to support regional programs under the permit. AIRPORT LAND USE COMMISSION/PLAN PURPOSE: State law requires every county with public use airports, to establish an airport land use commission to address airport/land use compatibility issues (i.e. aircraft noise issues, height of structures and safety issues). A comprehensive Airport Land Use Plan (CLUP) for each public use airport in the County is prepared and adopted. There are three public use airports in San Mateo County: Half Moon Bay Airport (general aviation), San Carlos Airport (general aviation), and San Francisco International Airport (commercial service airport). BENEFITS: · Maimains compliance with State law, re: airport/land use compatibility planning. · Educates local planning staffs, elected officials, and others about airport/land use planning issues and concerns at each airport in San Mateo County. · Provides a current Comprehensive Airport Land Use Plata (CLUP) to evaluate proposed local agency land use policy actions in the vicinity of the airports in San Mateo County. C/CAG BOARD ROLE: · Function as the designated Airport Land Use Committee for San Mateo County. · Adopt and revise as needed, a Comprehensive Airport Land Use Plan for San Mateo County. · Review and comment on land use developments that fall witkin the parameters of the Plan. JOINT POWERS AGREEMENT Identical to current adopted Joint Powers Agreement Only changes would be to Section 3 (e), Section 3 (f) and Section 12 to read as follows: Section 3 (e) to correct numbering: (e) Perform any County-Wide activities set forth in this agreement (Sections 20., 21., 22.,and 23.). Section 3 (f) to correct numbering: (7) Finance Committee (8) NPDES Committee (9) NPDES Technical Advisory Committee Section 3 (f) added the following: (10) Legislative Committee Section 12. dates changed to reflect reauthorization "Effective Date/Termination Date. This agreement shall be effective on July 1, 2003, or upon its execution by the County and by at least eleven (11) cities representing the majority of the population of the County, whichever is later. This agreement shall automatically terminate on December 1, 2007, unless renewed in writing by the County and by at least eleven (11) cities containing a majority of the population of the County. Upon such termination, the provisions of Sections 10 and 11 apply." JOINT POWERS AGREEMENT Continuing Establishment of the CitY/County Association of Governments THIS AGREEMENT, by and between the COUNTY OF SAN MATEO (hereinafter referred to as "County") and those cities within the County of San Mateo who become signatories to this agreement (hereinafter referred to as "Cities" or "City" as the context requires), is made in light of the following reckals: A. The County and the Cities have authority to perform a variety of functions in their respective communities and desire to establish a City/County Association of Governments (C/CAG) within the County of San Mateo whereby the parties will prepare, review, adopt, monitor and facilitate implementation by the member agencies county-wide state mandated plans as specified in 3(c) below. Local land-use decisions, except as they are affected by state-mandated county-wide plans, will remain solely within the cognizant local jurisdiction. B. The parties are authorized to contract with each other for the joint exercise of any common power pursuant to Government Code Sections 6500 through 6518. NOW, THEREFORE, the County and the Ckies, in consideration of the mutual promises and agreements contained herein, AGREE AS FOLLOWS: 1. Establishment of City/County Association of Governments of'San Mateo County. The parties hereby create an entity to be known as the City/County Association of Governments of San Mateo County (hereinafter referred to as "C/CAG") for the preparation, San Marco County Transit District Board of Directors selected by the Board of Directors and a representative of the San Marco County Transportation Authority selected by the Authority. Additional Ex-Officio members may be established by Board action in accordance with the special voting procedures identified in 4 (c). Regular attendance by the designated representative or alternate at the C/CAG Board and Subcommittee meetings shall be encouraged by the C/CAG Board and member agencies. 3. Purposes and Activities. C/CAG is established to fulfill the following purposes operating through the Board of Directors for control, direction, and administration: (a) Plan, organize, and maintain the work of C/CAG and be responsible for its overall operation. (b) Advise City Councils and the Board of Supervisors of all significant activities of C/CAG. (c) Prepare, review, adopt, monitor and facilitate implementation by the member agencies the following state-mandated county-wide plans: (2) (3) Congestion Management Plan (as the designated Congestion Management Agency including enforcing compliance with the Congestion Management Plan); Integrated Solid Waste Management Plan (as the designated Local Task Force); Airport Land Use Plan (as the designated Airport Land Use Commission); C/CAG JOINT POWERS AGREEMENT (JPA) 3 REVISED: FEBRUARY, 2003 Subcommittees may be established by Board action in accordance with the special voting procedures identified in 4 (c). Subcommittee membership may include persons who are not members of the Board of Directors, including other elected officials or public members. (g) Adopt By-laws and such other rules of procedure as may be deemed necessary. The duties, responsibilities or obligations of C/CAG, as set forth in this Agreement, are not intended, and shall not be interpreted, to expand or diminish any legal duties, responsibilities or obligations that any city or county member of C/CAG has, or may in the future have, under any provision of State or Federal law. Notwithstanding anything to the contrary in any other provision of this Agreement, C/CAG shall have no authority and/ or obligation to implement or enforce the provisions of any County-wide plan except when C/CAG is functioning as an agency specifically designated by state or federal law as having the authority and/ or obligation to implement or enforce such County-wide plan. 4. Voting Procedures. The parties intend to strive for consensus following full discussion but in the event consensus cannot be reached the following voting procedures shall be utilized. (a) (b) A quorum shall consist of at least a majority of the voting members and shall be required for all meetings of C/CAG. All decisions and actions shall be by majority vote of those present unless the C/CAG JOINT POWERS AGREEMENT (JPA) 5 REVISED: FEBRUARY, 2003 designates by resolution. 6. Contribution of Parties. herein, the parties agree that they shall maintaining the program of C/CAG. In consideration of the mutual promises contained make the following annual contributions towards Each member's contribution shall be its pro-rata share of the revenue needed for the annual budget as adopted by the Board of Directors. The pro-rata share of each agency shall be based upon its population as set forth in a resolution adopted by the Board of Directors pursuant to Section 19. By use of the special voting procedures under special circumstances the Board of Directors may waive contributions. If a member fails to pay its annual contribution, it shall forfeit its voting rights as pr°vided in Paragraph 10 and there shall be no further recourse against it for nonpayment. 7. Treasurer. The Board of Directors shall select a Treasurer from one of its member entities who shall be the depository and have custody of all the money and property of C/CAG from whatever source. The duties of the C/CAG Treasurer shall include those set forth in the Government Code Section 6500 et seq., Joint Exercise of Powers. 8. Controller. The Board of Directors shall select a Controller from one of its member entities who shall perform the functions of auditor and/or controller for C/CAG. The duties of the C/CAG Controller shall include those set forth in Government Code Section 6500 et seq., Joint Exercise of Powers. C/CAG JOINT POWERS AGREEMENT (JPA) 7 P, avxsm: FEBRUARY, 2003 meeting its goals and objectives. It is further understood that no County, SamTrans or City staff will be utilized without the consent of the employing agency. 10. Withdrawal. Any party may withdraw from this agreement by filing written notice of intention to do so with the Chair of the governing board by September 30th of each year, or by another date C/CAG designates by resolution. The rights and obligations of such party shall terminate at the end of the first full fiscal year for which the withdrawing party has made its contribution following such notice having been given. The withdrawal of any party from this agreement shall in no way affect the rights and obligations of the remaining parties. If a party withdraws from this agreement, such party shall not be entitled to the return of any funds contributed to C/CAG nor to the return in cash or in kind of any materials or supplies until termination of this agreement. If a party fails to make its contribution in accordance with Section 6 of this agreement, that agency shall forfeit its voting rights during the period of such non- payment. However, if one of the Cities or the County wishes to rejoin after forfeiting its membership by non-payment of its contribution, it may do so by paying the designated amount. 11. Termination and Disposition of Property. This agreement shall be deemed terminated when the number of Cities participating in this agreement contain less than a majority of the population of the County, or are fewer than eleven (11) in number. Upon termination, equipment and all other assets shall be distributed to the parties hereto in proportion to the contributions of the parties during the life of C/CAG including distribution to parties which may have withdrawn at an earlier date. Upon termination, any surplus money on hand shall be C/CAG JOINT POWERS AGRBEMEN'r (JPA) 9 REVISED: FEBRUARY, 2003 16. Legal Counsel. Unless the Board of Directors determines otherwise, the County Counsel shall serve as legal counsel to C/CAG and provide alt routine legal advice and service necessary including attendance at Board of Directors meetings. 17. Insurance. The County shall add C/CAG to its existing excess liability insurance coverage and shall maintain such coverage in full force and effect during the life of this agreement. Said excess liability insurance coverage has a $250,000 self-insured retention by the County. Unless the Board of Directors decides otherwise, County shall provide for the defense of any claims or litigation within the $250,000 self-insured retention. Legal representation by the County will ordinarily be provided by the Office of the County Counsel. Any out-of-pocket expenses or loss, by way of judgment or settlement, arising out of the operation of this agreement, within the limits of the County's $250,000 self-insured retention shall be shared by the parties in accordance with the formula set forth in Section 6. Expenses shall not include salaries or office expenses of any county employees, including any attorneys from the Office of the County Counsel. 18. Amendments. This Joint Powers Agreement may be amended at any time with the agreement of the majority of the members representing a majority of the population of the County, except as provided in 3(d). 19. Adjustment of Population Figures. The Board of Directors shall establish by resolution the population figures to be utilized in determining the population of local governments C/CAG JOINT POWERS AGREEMENT (JPA) 1 1 REVISED: FEBRUARY, 2003 program. (d) Enter into contracts with the County, the Cities, the County Flood Control District, and other entities to implement the revenue program and the storm water management plan. (e) Perform additional county-wide activities in connection with the NPDES program as set forth in the storm water management plan approved by, or as directed, by the Board of Directors. (f) Provide coordination and overall management of the NPDES program and advice to the County and the Cities on implementation. The County and each City shall be solely responsible for complying with NPDES permit conditions and all federal, state, and local laws and regulations, relating to discharges from the storm sewers in its jurisdiction and under its control. The County and each City shall defend, indemnify, and hold harmless every other party to this agreement, 'and its officers and employees, from all claims, suits, actions, fines, penalties, damages, or liability of every name, kind, and description arising in any way out of the negligent or intentional acts of that County or City in complying or failing to comply with NPDES permit conditions, and all federal, state, and local regulations applicable to that County or City. 22. Service Authority for Abatement of Abandoned Vehicles. C/CAG shall be the service authority for the abatement of abandoned vehicles under Vehicle Code Section 22710. C/CAG shall impose a service fee of one dollar ($1) on vehicles registered to an owner with an address in San Mateo County as authorized by Vehicle Code Sections 9250.7 and 22710. As C/CAG JOINT POWERS AGREEMENT (JPA) 13 REVISED: FEBRUARY, 2003 ATTEST: Clerk of City Council ATTEST: Clerk of City Council ATTEST: Clerk of City Council ATTEST: Clerk of Town Council ATTEST: Clerk of City Council CITY OF BELMONT CITY OF BRISBANE by CITY OF BURLINGAME TOWN OF COLMA by CITY OF DALY CITY Mayor Mayor Mayor Mayor Mayor C/CAG JOINT POWERS AGREEMENT (JPA) 15 REVISED: FEBRUARY, 2003 ATTEST: Clerk of City Council ATTEST: Clerk of City Council ATTEST: Clerk of Town Council ATTEST: Clerk of City Council ATTEST: Clerk of City Council CITY OF MILLBRAE by Mayor CITY OF PACIFICA Mayor TOWN OF PORTOLA VALLEY by Mayor CITY OF REDWOOD CITY Mayor CITY OF SAN BRUNO Mayor C/CAG Jon, rr POWERS AGREEMENT (JPA) 17 P,~xas~.~): FEBRU,~,RY, 2003 StaffReport DATE: TO: FROM: SUBJECT: March 26, 2003 Honorable Mayor and City Council Director of Community Outreach Quality of Life in South San Francisco RECOMMENDATION IT IS RECOMMENDED THAT COUNCIL APPROVE A RESOLUTION TO HEAR AND CONSIDER ISSUES PERTAINING TO THE QUALITY OF LIFE IN SOUTH SAN FRANCISCO. BACKGROUND/DISCUSSION Attached for Council's review is a presentation regarding quality of life in South San Francisco. This presentation is based on information received through telephone surveys conducted by San Mateo County. The Quality of Life and Behavioral Risk surveys were conducted throughout San Mateo County with an over-sample of the South San Francisco Old Town Community. The San Mateo County Health Department analyzed this information as it relates to South San Francisco as a whole and also as it relates to the Old Town community. The Partnership for the Public's Health funded the South San Francisco Community Partnership and the San Mateo County Health Department to collect and analyze this information and to develop a community health and quality of life initiative in Old Town. A future presentation will be delivered to Council regarding this initiative, however this information and presentation is an effort to give Council a flavor for the quality of life not just in Old Town, but in South San Francisco as a whole. By: ~!.~ ..,_ ~ Heather Qu~nn Director of Community Outreach Approved: City Manager Attachment: Resolution in South San Francisco Heather Quinn, Director of Community Outreach Jennifer Chancay, Healthy Communities Coordinator Scott Nabity, San Mateo County Epidemiolog Where did these data come from? Based on national surveys Quality of Life Behavioral Risk Factor Surveillance System 2 telephone surveys conducted to represent the residents of San Mateo County as a whole Old Town South San Francisco , Unite A,~ la ,-.ox. ~ .~ ra~l~s ~,c,~ o p re~ared with Ara'~rican ~ · ,. ,-. , ,, latiOn Area igit ZiP ~..~le ~,~b u actFinde, r 2001 Community Survey: Health and Quafity of Life in SSF Random digit dialing telephone survey English and Spanish 210 interviews Results weighted to SSF Old Town population Prepared for the City of South San Francisco 2~1 i Commun ty Survey: Health & Quality of Life in South San Frat~cisco ~ Prefessienal Rese~r£h [ensultent$, Inc., 2001 Community Survey: Health and Quafity of Life in San Mateo County Random digit dialing telephone survey English and Spanish 1050 interviews countywide 86 (8.2%) residents of SSF ~, These are the data presented here How to Interpret Our Findings Topic of Survey Question ~% ExcellentNery Good % Good ~% Fair/Poor L:~,/lean Score 40 20 0 South San Francisco N=86 Old Town N=210 San Mateo County N=I ,033 Respondents 2001 QOL Respondents South San Francisco (N=85), 40.6% Race/Ethnicity of Old Town SSF -- 2000 Census 70% 60% .... 51.2 40% 30% ..... White 20% 10% 0% White Hispanic Asian/PI African Am Other/Multi Hispanic 33.2% 35% 3O% Race/Ethnicity of SSF - 2000 Census 30.5 31.8 30.1 Asian/PI 18.8% 25% 20% African Am 4.4% 15% 10% 5% O% White Hispanic Asian/PI African Am Other/Multi Residence in the SSF Community 10-29 years 29.5% 30-49 years 21.6% 50+ years 3.4% <10 years 45.5% ~Affordable~ 21.4% Other/Uncertain 22.9% Available Housing 4.9% Relative Here 17.6% ~ouse's Job 18.1% Location Convenient 15.1% Community Description 8O 6O 4O 2O Evaluation of the Community as a Place to Live Fq % Excellent/Very Good /% Good ~% 64.1 @ 60 50.2 43.5 ..... 40-~-2 .................................. ~ ~ ~__4..1..5 ..................................... 15 Fair/Poor 69.7 @Mean Score 72.7 22.7 6.7 / South San Francisco Old Town SSF San Mateo County Ability to Affect Quality of Life in Community In SSF, 1 in 3 do not feel able to affect quality of life Countywide: ~ About half of those 55 years+ ~ Proportion also higher among less educated, lower income and Hispanic residents "Number-One" Problem Facing SSF Community Top 5 responses ranked by order of frequency: 1. N=85 Congestion/Traffic Overcrowding Affordable Housing Economy Cost of Living - Lack of Community Spirit - Noise Growth Community lssuos Recreation Trust Local Government to Work for the Community's Best Interest South San Always/Most of the Time Francisco mOld Town l~San Mateo County Some of the Time Seldom/Never i 16.4 14.4 14.2 0 10 2O 30 37.,,,1 39 38.1 46.5 46.5 47,7 40 50 60 70 60 50 40 30 20 10 0 Ratings of Recreation/Entertainment Offerings FF% ExcellentNery Good /% Good Fq % Fair/Poor ~;"~M ean Score .................................................................................................................................................................................................... 56-:-6 ............................... ............ s4~i2 s4.z ................................... 3876 ........................................ 39:1 ..................................... 41_ .3 ............................................................. 35.3 34.8 36 26.2 22.7 South San Francisco Old Town San Mateo County Ratings of Youth Recreation/Entertainment Offerings 7O 6O 5O 4O ~J% Excellent/Very Good /% Good Fq% FaidPoor ?:Mean Score ............. 58.5 58.9 '" '~' 54 2 ............................... 49-:-5 ........................................................... 2i;'?'"9 ...... ' 44.6 37.8 37.5 32.5 3O 2O 10 ..... t-9':6 12.7 Old Town South San Francisco 17.9 San Mateo County Ratings of Physical Environment of the Community 80 70 6O 5O 4O 3O 2O 10 Excellent/Very Good /% Good FF% Fair/Poor @Mean Score .................. 6'~--'6 .................................................................................... 6-'7-,-6 ......................... 44.5 .... 30~-2 ..................................... 33.3 22.3 27.2 12 South San Francisco Old Town San Mateo County Ratings of Outdoor Recreation Offerings ~% Excellent/Very Good /% Good F~% Fair/Poor @Mean Score 70 .................................................................................................................................................... 58.1 ...................... 53.9 53.6 @ ...... 43.8 43.9 5O 4O 3O ....... 35 8 27.2 25 2 22.7 ..... 2-0,3 South San FranciscoOld Town San Mated County 8O 7O 6O 5O Used a Public Library in the Past Year n,4~ 66 2 4O 3O 2O 10 / / / South San Francisco Old Town San Mateo County Family Issues Ratings of Community as Place to Raise a Family 80 70 60 50 40 30 20 ~Excellent/Very Good /Good ~lFaidPoor '~"'..,,.~wean" Score ............................................................................................................................................................................ 66:4 ............................................ " ......................................................... 56~4 ........................... 59 ............................................... 50.,-7 ................................................................................................................................. 37.2 32.9 16.4 126.9 14.2 0 / South San Francisco Old Town San Mateo County (Among those with Mds 5-17yrs at home) Impact of After School Child Care Arrangement ~South San Francisco mOld Town FqSan Mateo County Easier to Accept Current Job Easier to Keep Current Job Easier to Accept Better Job Easier to Attend Ed/Training ~9.9 70.7 72.4 91 91 63.9 176i2 167.4 54.7 56[.5 86.8 46.4 49 7.? 0 20 4060 80 100 120 Perceived Need for Organized After School Activities for Children and Teens Strongly Agree Strongly Agree 75.0% ~ ~ 71.3% / Somwhat Disagree 3,5% Somewhat Agree / Somewhat Agree 21.0% Strongly Disagree 24.3% 0.9% South San Francisco San Mateo County Crime & Violence Firearms in the Home Locked Away* 65.9% n=9 vs. 86% in SMC & 95% in Old Town No 83.0% ~ Yes 17.0% vs. 14% in SMC and Old Town Unlocked* 34.1% * Small Sample (n=14) Ratings of Safety, Security, and Crime Control in Neighborhood 8O 7O 6O 5O 4O Excellent/Very Good Good I~% Fair/Poor ~i:¢~Mean Score ................................ 65:9 .......................................................................... 6'7--,-6 59.9 ....... 59.7 .................................................................................................... ¢:~-~ .................................................... 59-:-9 ............................................................................ 41 '32.8 , .................................................... "28:'8 3O 2O 10 South San 7.5 Francisco Old Town 12.2 San Mateo County Ratings of Safety and Security While Walking in Neighborhood ~ExcellentNery Good /Good ~lFair/Poor ;i~Mean Score 8O 6O 4O 2O ~ 70 70.7 61 63.2 47.7 --39 9 ............................... ...... '33 7 26.6 '" : 10.2 3.4 i South San Francisco Old Town San Mateo County Perceptions of Neighborhood Crime in Past Two Years ~% Getting Much/Little Better 80 69 Staying Same F-l% Getting Much/Little Worse 65.8 71.9 40 20 26 0 ........ 21...3 20-,-7- 9.7 8.3 7.4 South San Francisco Old Town San Mateo County Local Economy & Employment Evaluation of Local Employment Opportunities ~% Excellent/Very Good /% Good F~% Fair/Poor @Mean Score 60 50.4 ...... 45.3 44.6 50 .... @ 42.3 @ 4O 3O 2O 10 .... 30~-2 South San Francisco 24.6 33.3 Old Town 23.9 San Mateo County Perceived Strength/Growth of the Local Economy 60 50 40 30 20 10 0 FqExcellenWery Good /Good ~FaidPoor @Mean Score / / 48.8 .................... 46 :'2 .......................................................... 4.8.4 ......................................... 42 42.1 35.6 35.5 34.6 3%2 3-0 ...... 'r ............. 26.9 ~ ¢ .... 22.3 South San Francisco Old Town San Mateo County Need for Additional Work Skills 6O 5O 4O 3O 2O 10 and Proportion Receiving Training /Need Job Training EZ~Attended Training within Last Year ...... " ~ ..... ~ 46.3 - .......................... ~ ...................... 39:4 34.8 33.8 South San Francisco Old Town San Mateo County Wrap Up General Themes/Discussion- South San Francisco ... Com m u n ~ty . ..Families... Sen ~ors · " ' ~. Finances / Money 1. Congesbon / Traffic ! 1. F~nances / Money i.(C0st_,0~f..Living) .......... (cost of Living) 2. Overcrowding }2. Education ,2. Affordable Housing 1 3. Affordable Housing ~3. Economy i3. Access to I-toalth Care 4. Fconomy 4. Access to Health 4. Loneliness /Isolation 5. Cost of Living (Lack of Support, Noise, Care 5. Drugs (Crime) 5. Transportation ~ Growth) General Themes/Discussion- Old Town Community i Families~ Seniors 1. Overcrowding 1. Affordable Housing 1. Access to Medical Care 2. Cost of Living 2. Finances/Money 2. Cost of Living (or Cost of Living) 3. Gangs 3. Education 3. Transportation 4. Crime i4. Economy 5. Congestion/Traffic 5. Gangs 4. Lack of Respect 5. Loneliness/Isolation Other General Themes/Discussion 2 in 3 residents feel able to affect quality of life in community Perception of community and quality of life indicator ratings for SSF sample Similar to or lower than for County as a whole Higher than those for Old Town SSF Feelings of mistrust of local government to consistently work in the best interest of the community Other General Themes/Discussion After school child care arrangements eased employment opportunities in all 3 sampling groups Additional work skills perceived to be necessary Need not apparently met for all Next Steps for Community Collaborative Healthy Kids Health Insurance Outreach and Enrollment Job Connections Develop job training opportunities by working with training and job placement organizations and local employers. QUESTIONS? Resolution approving amendment to employment agreement with City Manager Staff Report will be distributed at the City Council meeting. StaffXeport DATE: TO: FROM: SUBJECT: March 26, 2003 Honorable Mayor and City Council Assistant City Manager Consideration of a Request from the South San Francisco Unified School District to Support AB264 RECOMMENDATION It is recommended that the City Council consider a request from the South San Francisco Unified School District to adopt a resolution supporting AB264, which would allow the use of a portion of special reserve funds for operational expenses. BACKGROUND/DISCUS SION Due to anticipated reductions in funding from the State for K-12 education, the South San Francisco Unified School District Board of Trustees was recently forced to take action leading to $3,000,000 in potential budget cuts. The results of these cuts will be reflected at all grade levels including class size, instructional supplies, counseling services, security, library services, and much more. Layoff or reassignment notices have been issued to both elementary school and adult education teachers as well as all elementary school principals. Many classified positions may also be eliminated or reduced. In response to this unprecedented state fiscal crisis, Assembly Member Gene Mullin has introduced AB264 which would authorize a school district to deposit the funds derived from the sale of surplus property (special reserve) in the general fund of the district for any general fund purpose. South San Francisco Unified School District currently has approximately $10,000,000 in its special reserve fund. However, existing state rules and regulations penalize a school district by withholding funds for capital improvements and deferred maintenance if funds in the special reserve are used for operational expenses. SUMMARY On February 27, 2003, the South San Francisco Unified School District adopted Resolution # 03-07 in support of AB264 allowing the use of a portion of the special reserve for operational expenses. The District is requesting the same action from the City Council. Representatives from the District will be present this evening to respond to any questions or comments. RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION SUPPORTING AB264, A BILL ALLOWING THE USE OF A PORTION OF SPECIAL RESERVE FUNDS FOR OPERATIONAL EXPENSES FOR THE SOUTH SAN FRANCISCO SCHOOL DISTRICT WHEREAS, due to anticipated reductions in funding from the State for kindergarten through twelfth grade education, the South San Francisco Unified School District Board of Trustees was recently forced to take action leading to $3,000,000 in potential budget cuts; and WHEREAS, Assembly Member Gene Mullin has introduced AB264 which would authorize a school district to deposit the funds derived from the sale of surplus property (special reserve) in the general fund of the district for any general fund purpose; and WHEREAS, on February 27, 2003, the South San Francisco Unified School District adopted Resolution #03-07 in support of AB264 allowing the use of a portion of the special reserve for operational expenses; and WHEREAS, the District is requesting the same action from the South San Francisco City Council. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council hereby supports AB264, a bill allowing the use of a portion of special reserve funds for operational expenses for the South San Francisco School District. 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 ,2003 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk S:\Current Reso's\3.26.03 supportAB264.res.doc MAR 05 '0S 02:S2PM SSFUSD 65058S4717 P. lx£ SOUTH SAN FRANCISCO UNIFIED SCHOOL DISTRICT 398 B Street, South San Francisco CA 94080-4423 (650) 877-8700 / FAX(650)583-4717 SUPERINTENDENT BOARD OF TRUSTEES Dr. George A Kozitze Romolo J, Braschi E,~anuele N. Osmonte Sh~rlee Hoch Raymond Laiham Philip J, Welse March 5, 2003 Mr. Michael Wilson City Manager City of South San Francisco P. O, Box 711 South San Francisco, CA 94083 Dear Mike: Enclosed is a Resolution passed by the South San Francisco Unified School District Board of Trustees supporting special legislation, AB 264, if signed into law, would permit the School District to use funds in the Special ReServe to help soften the drastic cuts to our budget anticipated in 2003-2004. On behalf.of the South San Francisco Unified School District, lam requesting City Council take action at their e,arliest meeting to support ,A,B 264. I would be pleased to attend a City Council meeting to speak on behalf of thru requested action, Sincerely, Superintendent GAK;cc Enclosure SOUTH SAN FRANCISCO UNIFIED SCHOOL DISTRICT RESOLUTION NO. 03-07 _S_upport f_or L_e_cl_i_s_[ation allowing the Use o_f a Po_rLti_o_[~ o_f the Spe_c_[al Reserve for Operational Expenses WHEREAS, The State of California is experiencing a severe recession; and WHEREAS, Governor Davis has requested mid-year budget reductions for 2002- 2003; and and WHEREAS, Governor Davis has requested budget reduotions for 2003-2004; WHEREAS, The budget reductions identified by the District's ,B.u, dget Review Team include items that could severely impact the educational program ~f ~mplemented; and WHEREAS, All of the funds in the Special Reserve Fund of the South San Francisco Unified School District are not needed for modernization or capital outlay; NOW, THEREFORE, BE IT RESOLVED that the South San Francisco Unified School District Board of Trustee,s gives its support for pursuing application/legislation that would allow use of a porhon of the Special Reserve balance for operational expenses without penalty. Regularly passed and adopted this 27~h day of Febru~ ~I~ Ayes and. in favor of said Resolution: ~~.._ ATT'EST: Clerk of the Boa~o~ Trustees AB 264 (Mullin) Education finance Summary This bill would authorize a school d/strict to deposit the funds derived from the sale of surplus in the general fund of the district for any general fund purpose. Background Existing law requires a school district to use the funds derived from the sale of surplus property for capital outlay or for costs of maintenance of school district property that the governing board of the school district determines will not recur within a 5-year period. Existing law authorizes a school district having an average daily attendance of less than 10,001 in any fiscal year to deposit any and all interest earned on those funds into the general fund of the district. This Bill Specifically, A) Authorizes a school district, with declining enrollment for the past four years, to deposit the funds derived from the sale of surplus property in the general fund of the district for any general fund purpose. B) Allows only those funds realized by the sale of surplus property sold between July 1, 1997 and June 30, 2000 to be used for this purpose. ¢) Allows only those school districts with enrollment of less than 10,000 to deposit the funds derived from the sale of surplus property in the general fund of the district for any general purpose. D) Would not disqualify school districts from receiving State funds for Deferred Maintenance or other State construction funds as a result of a school district depositing the funds derived from the sale of surplus property in the general fund of the district for any general fund purpose. D) This bill sunset in 2005 Rational California faces an unprecedented fiscal crisis. In a time of fiscal crisis, it is necessary for the state and local agencies to examine the priorities that are essential to the core of each agency's function. Public schools maintaining ldndergarten and ~ades 1 to 12, inclusive, must be given relief from restrictive and costly state mandates so that school districts will have the operational and fiscal flexibility to manage their budgets within ~he context of the current budget crisis. Specifically, 'all of the funds in the Special Reserve Fund of South San Francisco Unified School District are not needed for modernization or capital outlay and therefore should be allowed to use these funds without penalty. P.3/5 MRR 06 '03 ll:59AH SSFUSD 6505834717 SuppoWSponsor Board of Trustees, South San Francisco Unified School District (650) 877-8705 Steve Savage, President, South San Francisco, California Teachers Association (650) 877-8797 Contact Information Josephine Figueroa Assembly Member Gene Mullin State Capitol, Room 2170 Sacramento, CA 95814 (916) 319-2019 phone (916) 319-2119 fax M~R 06 '0~ 11~5~RM SSF'USD 65058~4717 P.4~5 SAMPLE LETTER TO LEGISLATORS The Honorable Gene Mullin California State Assembly 1528 South El Camino Real, Suite 302 San Mateo, CA 94402 Dear Assemblyman Mullin: I understand that at the February 27, 2003, meeting of the South San Francisco Unified School District Board of Trustees, there was discussion that current law does not allow the District to access portions of $10,000,000 in funds from the sale of school property without financial penalty. I also understand that you have discussed this issue with the Administration at the School District. I strongly urge you, as my elected official, to do whatever you can to initiate and facilitate legislation that would allow the District to access those funds without penalty. In these times of economic uncertainty, we need to do whatever we can to insure quality programs at our schools. Without access to these funds, we will be forced to endure devastating cuts to our programs. Our children are our future-please help us if you care. Sincerely, M~R OG '0~ ~:00PM SSFUSD 6~0~@~47~7 P.~/5 Sugg~ested K. e_ypoints f_or L. etter, t..o Leg i.s l ato rs regarding 5pecia~ Heserve t-una aha special Legislation The Honorable Gene Mullin California State Assembly 1528 South El Camino Real, Suite 302 San Marco, CA 94402 The Honorable Gene Mullin California State Assembly State Capitol P. O. Box 942849 Sacramento, CA 94249-0019 The Honorable Jackie Speier California State Senate 400 South El Camino Real, Suite 630 San Mateo, CA 94402 The Honorable Jackie Speier California State Senate State Capitol, Room 2032 Sacramento, CA 95814~4900 Following are suggested main points to include in a letter to our legislators seeking support for special legislation related to use of funds in the Special Reserve for operation: Due to the forecast cuts in K-12 education, the South San Francisco Unified School District has been forced to begin the process of making major reductions in programs and services On February 27, 2003, the Board of Trustees was forced to take action leading to $3,000,000 of cuts in the budget. Class size reduction at all grade levels, all counseling, library, security, clerical services, instructional supplies, and more are on the chopping block. Layoff or reassignment notices have been issued to both elementary and Adult Education teachers and all elementary principals. Many classified positions are also being eliminated or cutback. There is a solution! The District has approximately $10,000,000 in its Special Reserve Fund. Currently, the State rules and regulations penalize a school district by withholding funds for capital improvement and deferred maintenance if funds in the Special Reserve are used for operational expense. We need and request your help securing legislation that removes the financial penalties for using surplus money in the Special Reserve to soften some of the cuts the District is now being forced to face. These cuts (list), if made, will seriously impede the progress that has been made over the past five years improving student learning and success. We would like to meet with you as soon as possible to discuss our needs and concerns. RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION SUPPORTING MEMBERS OF THE UNITED STATES ARMED FORCES AND DECLARING SOUTH SAN FRANCISCO A YELLOW RIBBON CITY WHEREAS, this nation as of March 18, 2003, under the banner of the United States, is at war; and WHERAS, the people of South San Francisco wish to express their pride and support of our brave and dedicated servicemen and women who are engaged in this international effort; and WHERAS, the flying of the American flag expresses pride in our Nation and all it stands for; and WHERAS, the displaying of a yellow ribbon in time of war has historically signified a longing for the safe return of our Nation's fighting men and women; and WHEREAS, the City of South San Francisco wishes to encourage all it citizens and businesses to support those who are in the service of our great country at home and abroad; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco declares this community a "Yellow Ribbon City" and orders the display of yellow ribbons at all municipal buildings and sites and further encourages its citizens and businesses to display yellow ribbons and fly the American flag until the conflict in Iraq is concluded. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a Regular meeting held on the 26th day of March, 2003 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk