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Home My WebLink About2020-04-08 e-packet@7:00Wednesday, April 8, 2020 7:00 PM City of South San Francisco P.O. Box 711 South San Francisco, CA TELECONFERENCE MEETING City Council Regular Meeting Agenda April 8, 2020City Council Regular Meeting Agenda TELECONFERENCE MEETING NOTICE THIS MEETING WILL BE CONDUCTED PURSUANT TO THE PROVISIONS OF THE GOVERNOR’S EXECUTIVE ORDER N-29-20 ISSUED ON MARCH 19, 2020 ALLOWING FOR DEVIATION OF TELECONFERENCE RULES REQUIRED BY THE BROWN ACT & PURSUANT TO THE ORDER OF THE HEALTH OFFICER OF SAN MATEO COUNTY DATED MARCH 31, 2020 AS THIS MEETING IS NECESSARY SO THAT THE CITY CAN CONDUCT NECESSARY BUSINESS AND IS PERMITTED UNDER THE ORDER AS AN ESSENTIAL GOVERNMENTAL FUNCTION. The purpose of conducting the meeting as described in this notice is to provide the safest environment for staff and the public while allowing for public participation. Councilmembers Matsumoto, Nagales and Nicolas, Vice Mayor Addiego and Mayor Garbarino and essential City staff will participate via Teleconference. Members of the public may submit their comments on any agenda item or public comment via email or City Council hotline. PURSUANT TO RALPH M. BROWN ACT, GOVERNMENT CODE SECTION 54953, ALL VOTES SHALL BE BY ROLL CALL DUE TO COUNCIL MEMBERS PARTICIPATING BY TELECONFERENCE. MEMBERS OF THE PUBLIC MAY VIEW A VIDEO BROADCAST OF THE MEETING BY: Internet: https://www.ssf.net/government/city-council/video-streaming-city-and-council-meetings/city-council Local cable channel: Astound, Channel 26 or Comcast, Channel 27 Page 2 City of South San Francisco Printed on 5/8/2020 April 8, 2020City Council Regular Meeting Agenda PEOPLE OF SOUTH SAN FRANCISCO You are invited to offer your suggestions. In order that you may know our method of conducting Council business, we proceed as follows: The regular meetings of the City Council are held on the second and fourth Wednesday of each month at 7:00 p.m. 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. RICHARD A. GARBARINO, Mayor MARK ADDIEGO, Vice Mayor MARK NAGALES, Councilmember BUENAFLOR NICOLAS, Councilmember KARYL MATSUMOTO, Councilmember ROSA GOVEA ACOSTA, City Clerk FRANK RISSO, City Treasurer MIKE FUTRELL, City Manager SKY WOODRUFF, City Attorney PLEASE SILENCE CELL PHONES AND PAGERS HEARING ASSISTANCE EQUIPMENT AVAILABLE FOR USE BY THE HEARING IMPAIRED AT CITY COUNCIL MEETINGS In accordance with California Government Code Section 54957.5, any writing or document that is a public record, relates to an open session agenda item, and is distributed less than 72 hours prior to a regular meeting will be made available for public inspection in the City Clerk’s Office located at City Hall. If, however, the document or writing is not distributed until the regular meeting to which it relates, then the document or writing will be made available to the public at the location of the meeting, as listed on this agenda. The address of City Hall is 400 Grand Avenue, South San Francisco, California 94080. Page 3 City of South San Francisco Printed on 5/8/2020 April 8, 2020City Council Regular Meeting Agenda CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE AGENDA REVIEW ANNOUNCEMENTS FROM STAFF Remote Public Comments: PUBLIC COMMENTS Members of the public wishing to participate are encouraged to submit public comments in writing in advance of the meeting. The email and phone line below will be monitored during the meeting and public comments received will be read into the record. The City encourages the submission of comments by 6:00 p.m. on Wednesday, April 8th to facilitate inclusion in the meeting record. A maximum of 3 minutes per individual comment will be read into the record. Comments that are not in compliance with the City Council's rules of decorum may be summarized for the record rather than read verbatim. Your entire electronic comment may not be read into the record due to time limitations imposed by the Mayor for public comments but it will become part of the record and will be available for public inspection. Email: [email protected] Electronic Comments received by email will be monitored during the meeting and read into the record . Comments should include the specific agenda item on which you are commenting, or note that your comment concerns an item that is not on the agenda or is on the consent agenda. We ask that you limit your electronic comments so that they will comply with the 3 minute time limitation for public comment. City Council Hotline: (650) 829-4670 Voice Messages will be monitored during the meeting and read into the record. We ask that you limit your voicemail so that it complies with the 3 minute time limitation for public comment. Page 4 City of South San Francisco Printed on 5/8/2020 April 8, 2020City Council Regular Meeting Agenda COUNCIL COMMENTS/REQUESTS CONSENT CALENDAR Motion to approve the Minutes for the meetings on February 12, 2020.1. Report regarding the Housing Successor Agency Annual Report for Fiscal Year 2018-19 (Deanna Talavera, Management Analyst II) 2. Report regarding a resolution approving a reimbursement agreement with Pinefino LLC, for the completion of undergrounding utilities along Cypress Avenue in excess of obligation for development at 211 Airport Boulevard. (Matthew Ruble, Principal Engineer; Sailesh Mehra, Chief Planner) 3. Resolution approving reimbursement for Pinefino LLC for undergrounding utilities in excess of obligation at 211 Airport Boulevard in South San Francisco 3a. Report regarding a resolution authorizing the acceptance of $190,143 in grant funding from the California State Library to support the Community Learning Center’s Afterschool Project Shared Vision/Bringing the Library to You and approving Budget Amendment 20.040. (Valerie Sommer, Library Director) 4. Resolution authorizing the acceptance of $190,143 in grant funding from the California State Library to support the South San Francisco Public Library’s Community Learning Center’s Afterschool Project Shared Vision/ Bringing the Library to You and approving Budget Amendment 20.040. 4a. PUBLIC HEARING Report regarding conducting a public hearing under the Tax and Equity Fiscal Responsibility Act regarding the proposed issuance of revenue bonds by the California Municipal Finance Authority for the benefit of MidPen Housing Corporation for the rehabilitation of two low and lower income affordable rental housing developments in the City of South San Francisco - Willow Gardens Apartments, a 36-unit rental development located at 982, 986 and 990 Brusco Way, 344, 364, 383 and 395 Susie Way, 976 Sandra Court and 986 Nora Way, and the Greenridge Apartments, a 34-unit rental housing development located at 1565 El Camino Real. (Deanna Talavera, Management Analyst) 5. Resolution of the City Council of the City of South San Francisco approving the issuance of revenue bonds by the California Municipal Finance Authority in an aggregate principal amount not to exceed $42,000,000 to finance the acquisition and rehabilitation of two affordable rental housing facilities for the benefit of Midpen Housing Corporation or an affiliate thereof, and certain other matters relating thereto. 5a. Page 5 City of South San Francisco Printed on 5/8/2020 April 8, 2020City Council Regular Meeting Agenda ADMINISTRATIVE BUSINESS Report regarding a motion to accept the construction improvements of the Fire Station 64 Dormitory and Bathroom Remodel Project as complete in accordance with plans and specifications (Total Construction Cost $1,285,909.87). (Robert T. Hahn, Project Manager) 6. Report regarding a Resolution approving budget amendment 20.039 appropriating $220,000 in the City of South San Francisco’s Low and Moderate Income Housing Fund in Fiscal Year 2019-2020 for Emergency Rental Assistance for South San Francisco residents facing financial hardship due to the COVID-19 pandemic and $22,000 for associated administration (Nell Selander, Deputy Director, Economic & Community Development Department) 7. Resolution approving budget amendment 20.039 appropriating $220,000 in the City of South San Francisco’s Low and Moderate Income Housing Fund in Fiscal Year 2019-2020 for Emergency Rental Assistance for South San Francisco residents facing financial hardship due to the COVID-19 pandemic and $22,000 for associated administration 7a. Report regarding an urgency ordinance of the City of South San Francisco enacting a temporary moratorium on small business and nonprofit entity evictions due to nonpayment of rent where the failure to pay rent results from income loss resulting from the Novel Coronavirus (COVID-19) (Sky Woodruff, City Attorney) 8. Urgency ordinance of the City of South San Francisco enacting a temporary moratorium on small business and nonprofit entity evictions due to nonpayment of rent where the failure to pay rent results from income loss resulting from the Novel Coronavirus (COVID-19) 8a. ITEMS FROM COUNCIL – COMMITTEE REPORTS AND ANNOUNCEMENTS ADJOURNMENT Page 6 City of South San Francisco Printed on 5/8/2020 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:20-248 Agenda Date:4/8/2020 Version:1 Item #:1. Motion to approve the Minutes for the meetings on February 12, 2020. City of South San Francisco Printed on 4/3/2020Page 1 of 1 powered by Legistar™ City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:20-50 Agenda Date:4/8/2020 Version:1 Item #:2. Report regarding the Housing Successor Agency Annual Report for Fiscal Year 2018-19 (Deanna Talavera, Management Analyst II) RECOMMENDATION Staff recommends that the City Council receive and file the Housing Successor Agency Annual Report for Fiscal Year 2018-19. BACKGROUND/DISCUSSION The City of South San Francisco (“City”)is the Housing Successor Agency (“Housing Successor”)to the former South San Francisco Redevelopment Agency (“Agency”),which was dissolved on February 1,2012. Each housing successor agency is required to prepare an annual report on how it is meeting requirements imposed by Health and Safety Code (“HSC”) Section 34176.1. The report is due to the California Department of Housing and Community Development (“HCD”)by April 1st of each year and must be posted on the City’s website.The report for Fiscal year 2018-19 will be submitted to HCD by April 1, 2020 and is being presented to the City Council to receive and file. REVIEW AND ANALYSIS The City is meeting all requirements imposed by HSC Section 34176.1 for Fiscal Year 2018-19.The City’s progress on major requirements is summarized below. Housing Asset Fund Activity As of June 30,2019,the Housing Asset Fund balance was approximately $5.9 million ($5.1 million of which was cash).The Housing Asset Fund received $304,949 in revenues.The largest revenue source was rents from Housing Successor affordable rental properties ($110,241).Other revenue sources included interest income, loan repayments,and unrealized gains from investments.The Housing Successor spent $95,960 in Housing Asset Funds in Fiscal Year 2018-19.Expenditures were limited to administrative items,such as payroll and benefits, professional services, and utilities. Real Property Assets and Loans Receivable As the Housing Successor, the City owns four properties with a statutory value of $6.8 million: ·339 -341 Commercial contains two duplexes operated as affordable housing.The properties were originally purchased by the former Agency to mitigate a blighted property and create affordable City of South San Francisco Printed on 4/2/2020Page 1 of 3 powered by Legistar™ File #:20-50 Agenda Date:4/8/2020 Version:1 Item #:2. housing. ·714 -718 Linden contains a triplex operated as affordable housing.The former Agency purchased the property in 2005 to preserve the affordability of the units after the original affordability covenants expired. ·630 Baden contains the Magnolia Senior Apartments,a 125-unit affordable multifamily development. The Housing Successor owns 95,309-square feet of land under the building. ·636 El Camino Real contains an affordable multifamily housing complex developed by MidPen Housing. The Housing Successor owns 87,121-square feet or land under the building. The law requires all properties transferred from the former Agency to the Housing Successor to be developed with affordable housing or sold by August 31,2017.The City meets this requirement because all properties transferred from the former Agency are operated as affordable housing or have been sold. The Housing Successor also oversees over $21 million in loans receivable from First-Time Homebuyer Loans and Developer Loans issued by the former Agency.However,it is important to note that the majority of the loans receivable balance has been written off as uncollectible in the Housing Asset Fund balance sheet.This is because many of the loans are not payable unless a property is sold or other conditions are met.Any loan repayments are deposited into the Housing Asset Fund. Expenditure Proportionality Requirements Expenditures from the Housing Asset Fund must meet specific proportionality requirements by income level and age. In general: ·Administrative and monitoring expenses are capped at five percent of the value of Housing Successor properties and loans receivable on an annual basis. The cap was $1.4 million in Fiscal Year 2018-19. ·Up to $250,000 may be spent annually on rapid rehousing solutions for homelessness. · If Housing Asset Funds are spent on housing projects and programs,within each five-year compliance period: o At least 30%must be spent on extremely low income households (earning up to 30%of the Area Median Income); o No more than 20%may be spent on low income households (earning 60-80%of the Area Median Income); and o No monies may be spent on moderate or above moderate income households (earning more than 80% of the Area Median Income). ·No more than 50%of rental housing units assisted by the City or the former Redevelopment Agency in the prior 10 years may be restricted to seniors. The City meets the expenditure requirements because it has only incurred administrative expenses thus far that are well below the annual limit.It also meets the senior housing requirement.Of the 189 rental units assisted City of South San Francisco Printed on 4/2/2020Page 2 of 3 powered by Legistar™ File #:20-50 Agenda Date:4/8/2020 Version:1 Item #:2. are well below the annual limit.It also meets the senior housing requirement.Of the 189 rental units assisted by the Redevelopment Agency or City within the last 10 years,81 (43%)are restricted to seniors.Staff will ensure these requirements continue to be met with future expenditures. Excess Surplus Housing successors are subject to the same excess surplus requirement as former redevelopment agencies.An agency has an excess surplus if its cash balance is greater than $1 million,and it exceeds the sum of deposits in the prior four years.Housing successors must spend or encumber excess surplus within three fiscal years,or transfer its excess surplus to HCD to spend on statewide housing programs. South San Francisco does not have an excess surplus as of June 30,2019.Although the Housing Asset Fund’s beginning cash balance ($4.8 million)is greater than the sum of deposits in the prior four years ($2.7 million), the City has committed $2.45 million of Housing Asset Funds to the development of affordable housing at 201 Grand Avenue and 418 Linden Avenue. FISCAL IMPACT There are no implications of receiving and filing this annual report on the City’s activities as the housing successor agency to the former Agency. RELATIONSHIP TO STRATEGIC PLAN Submission of this report to HCD is a statutory obligation. CONCLUSION Staff recommends that the City Council receive and file the Housing Successor Agency Annual Report for Fiscal Year 2018-19. ATTACHMENTS A.South San Francisco Housing Successor Agency Annual Report for Fiscal Year 2018-19 City of South San Francisco Printed on 4/2/2020Page 3 of 3 powered by Legistar™ HOUSING SUCCESSOR ANNUAL REPORT South San Francisco Housing Successor Fiscal Year 2018-19 TABLE OF CONTENTS INTRODUCTION ............................................................................................................................... 1 HOUSING SUCCESSOR RE QUIREMENTS ........................................................................................ 1 ASSE TS TRANSFERRED TO HO USING SUCCESSOR ...................................................................... 2 HOUSING ASSET FUND A CTIVITY ................................................................................................... 3 EXPENDITURE LIMIT CO MPLIANCE ................................................................................................. 4 SENIOR HOUSING LIMIT COMPLIANCE ........................................................................................... 5 DEPOSITS AND FUND BA LANCE ..................................................................................................... 5 EXCESS SURPLUS ........................................................................................................................... 6 TRANSFERS TO OTHER H OUSING SUCCESSORS .......................................................................... 7 HOUSING SUCCESSOR PO RTFOLIO ............................................................................................... 8 LOANS RECEIVABLE ........................................................................................................................ 8 PROPERTY DESCRIPTI ONS AND DISPOSITION STATUS ................................................................ 9 HOMEOWNERSHIP UNIT I NVENTORY ........................................................................................... 10 APPENDIX 1 - HOUSING SUCCESSOR ANNUAL RE PORT REQUIREMENTS ................................. 13 APPENDIX 2 – HOUSING ASSET TRANSFER FORM ...................................................................... 14 APPENDIX 3 – HOUSING ASSET FUND EXPENDIT URE REQUIREMENTS ..................................... 15 South San Francisco Housing Successor Annual Report 2018-19 1 INTRODUCTION The City of South San Francisco (“City”) is the Housing Successor Agency (“Housing Successor”) to the former South San Francisco Redevelopment Agency (“Agency”). The City elected to take on the housing- related responsibilities of the former Agency by adoption of Resolution No. 08-2012 on January 25, 2012. The Housing Successor is responsible for maintaining housing assets transferred from the former Agency. Its main goal is to provide affordable housing for City residents. This Housing Successor Agency Annual Report (“Annual Report”) contains information on Fiscal Year (“FY”) 2018-19 finances and activities as required by Health and Safety Code (“HSC”) Section 34176.1(f). The Housing Successor met all legal requirements in FY 2018-19. The Annual Report is due to the California Department of Housing and Community Development (“HCD”) by April 1 annually, and must be accompanied by an independent financial audit. The City’s audited financial statements will be posted on the City’s website when available. This report is an addendum to the Housing Element Annual Progress Report required by Government Code Section 65400, which is also submitted to HCD by April 1 annually. HOUSING SUCCESSOR RE QUIREMENTS Senate Bill (“SB”) 3411 and subsequent legislation enacted several requirements for housing successor agencies. Housing successors must comply with three major requirements pursuant to HSC Section 34176.1: 1. Expenditures and housing production are subject to income and age targets. 2. Housing successors may not accumulate an “excess surplus,” or a high balance based on certain thresholds. 1 2013-14 legislative session South San Francisco Housing Successor Annual Report 2018-19 2 3. Properties must be developed with affordable housing or sold within five to ten years of the California Department of Finance approving the Housing Asset Transfer Form. The requirements are designed to ensure that housing successors are actively utilizing former Agency housing assets to produce affordable housing. Appendix 1 provides a detailed summary of the reporting requirements that are addressed in this Annual Report. ASSETS TRANSFERRED TO HOUSI NG SUCCESSOR Upon the statewide dissolution of redevelopment in 2012, all rights, powers, committed assets, liabilities, duties, and obligations associated with the housing activities of the Agency were transferred to the Housing Successor. The Housing Successor prepared a Housing Asset Transfer Form (“HAT”) that provided an inventory of all housing assets transferred from the Agency to the Housing Successor. This included:  Real property;  Personal property;  Loans receivable; and  Rents/operations. All items on HAT were approved by the California Department of Finance (“DOF”) on August 31, 2012. It is important to distinguish that Housing Successor assets that were not transferred from the former Agency, or generated by or purchased with assets from the former Agency, are not subject to HSC Section 34176.1. A copy of the HAT is provided as Appendix 2. South San Francisco Housing Successor Annual Report 2018-19 3 HOUSING ASSET FUND A CTIVITY Former Agency assets, and the revenues generated by those assets, are maintained in a Low and Moderate Income Housing Asset Fund (“Housing Asset Fund”).2 Housing Asset Funds may be spent on:  Administrative costs up to $200,000 per year adjusted for inflation, or 5% of the statutory value of real property owned by the housing successor and the value of loans and g rants receivable from the HAT (“Portfolio”), whichever is greater. The FY 2018-19 limit for the Housing Successor was $1,400,096 (5% of the Portfolio value of $28,001,911).  Homeless prevention and rapid rehousing services up to $250,000 per year if the former Agency did not have any outstanding housing inclusionary or replacement housing production requirements. The Housing Successor qualifies because the former Agency had a surplus of affordable housing production units upon dissolution.  Affordable housing development assisting households up to 80 percent of the Area Median Income (“AMI”), subject to specific income and age targets. Five-Year Income Proportionality: If any Housing Asset Funds are spent on affordable housing development, it triggers a requirement to spend at least 30 percent of such expenses assisting extremely low income households (30% AMI) and no more than 20 percent on low income households (between 60-80% AMI) per five-year compliance period. The first five- year compliance period was January 1, 2014 through June 30, 2019. Note that housing successors must report expenditures by category each year, but compliance with income proportionality limits is measured every five years. For example, a housing successor could spend all its funds in a single year on households earning between 60-80% AMI, as long as it was 20 percent or less of the total expenditures during the five-year compliance period. 2 The Housing Asset Fund replaced the former Agency’s Low and Moderate Income Housing Fund. South San Francisco Housing Successor Annual Report 2018-19 4 Ten-Year Age Proportionality: If more than 50% of the total aggregate number of rental units produced by the City, Housing Successor, or former Agency during the past 10 years are restricted to seniors, the Housing Successor may not spend more Housing Asset Funds on senior rental housing. Appendix 3 describes Housing Asset Fund expenditure requirements in more detail, including the types of costs eligible in each category. EXPENDITURE LIMIT COMPLIANCE The Housing Successor complied with all Housing Asset Fund spending restrictions in FY 2018-19, including five-year compliance period income targeting requirements:3  Administrative costs of $95,960 did not exceed the $1,400,096 maximum amount for FY 2018- 19.  No homeless prevention or rapid rehousing expenses were made in FY 2018-19.  No affordable housing development-related expenditures were made in the first five-year compliance period from January 1, 2014 through June 30, 2019. Therefore, the five-year compliance period income targets were met by default. The Housing Successor will ensure it continues to meet all expenditure requirements going forward, including the next five-year compliance period of July 1, 2019 through June 30, 2024. Failure to comply with the extremely low income requirement in any five-year compliance period will result in the Housing Successor having to ensure that 50 percent of remaining funds be spent on extremely low income rental units until in compliance. Exceeding the expenditure limit for low households earning 3 The Housing Asset Fund figures in this Annual Report are based on unaudited numbers that were available at the time this report was prepared. They might vary slightly from audited numbers once the Housing Successor’s annual audit is complete. South San Francisco Housing Successor Annual Report 2018-19 5 between 60-80% AMI in any five-year reporting period will result in the Housing Successor not being able to expend any funds on these income categories until in compliance. SENIOR HOUSING LIMIT COMPLIANCE The Housing Successor complies with a limit allowing no more than 50 percent of the total aggregate number of rental units produced within the preceding ten years to be restricted to seniors. The Housing Successor, City, and former Agency assisted 39 deed-restricted rental units in the last ten years, none of which are restricted to seniors. Table 1 details units assisted by project. DEPOSITS AND FUND BALANCE The Housing Successor deposited $304,949 into the Housing Asset Fund during FY 2018-19, as shown in Figure 1. The deposits consisted of Rent Revenue, Interest Income, Loans Receivable Payments, and Unrealized Gains/Losses. Property1,2 Senior Units %Non-Senior Units %Total Units 310 Miller 81 100%0 0%81 636 El Camino Real 0 108 108 Total 81 108 189 Total Deed-Restricted Senior Units:43% 1 This list only includes units identified as senior-restricted living in the Housing Element. 2 This list only includes units that had a ground lease executed within the last 10 years. Source: City of San Francisco Table 1 Deed-Restricted Senior Rental Units Assisted Prior Ten Years South San Francisco Housing Successor Annual Report 2018-19 6 The Housing Asset Fund balance as of June 30, 2019 was $5,987,238, of which $5,052,199 was cash. Table 2 details the fund balance by asset type. EXCESS SURPLUS The Housing Asset Fund may not accumulate an “excess surplus”, or an unencumbered cash balance that exceeds the greater of either $1 million or the sum of deposits in the prior four fiscal years. This requirement ensures that housing successors are actively spending available Housing Asset Funds on affordable housing. The Housing Successor did not have an excess surplus as of FY 2018-19, as shown in Table 3. $110,241 $89,637 $32,604 $72,468 Figure 1. FY 2018 -19 Deposits ($304,949) Rent Revenue Interest Income Loans Receivable Payment Unrealized Gains/Losses Balance Type Amount Cash 5,052,199$ Cash Premium/Discount Amortization (1,533) Cash Unrealized Gains/Losses 7,223 Accounts Receivable - Other 7,550 Allowance for Uncollectibles (20,280,761) Accrued Interest Receivable 30,572 Loans Receivable 21,171,988 Ending Balance 5,987,238$ Housing Asset Fund Ending Balance FY 2018-19 Table 2 South San Francisco Housing Successor Annual Report 2018-19 7 The Housing Asset Fund had a cash balance of $4.8 million at the beginning of FY 2018-19. Of this amount, $2.5 million has been encumbered (formally committed to) develop affordable housing at 201 Grand and 401 Linden. This leaves an unencumbered cash balance of $2.4 million. There is no excess surplus because the unencumbered cash balance is less than the sum of deposits in the prior four years ($2.4 million compared to $2.7 million). The Housing Successor will continue monitoring its deposits and fund balance to avoid an excess surplus. If the Housing Asset Fund has an excess surplus in the future, the excess surplus must be expended or encumbered within three fiscal years. If a housing successor fails to comply, it must transfer any excess surplus to HCD within 90 days of the end of the third fiscal year. TRANSFERS TO O THER HOUSING SUCCESS ORS There were no transfers to another housing successor entity for a joint project pursuant to HSC Section 34176.1. Fiscal Year 2014-15 2015-16 2016-17 2017-18 Deposits 332,035$ 300,534$ 1,404,416$ 632,254$ FY 2018-19 Beginning Cash Balance 4,801,715$ Less: Encumbered Funds 2,450,000$ Unencumbered Amount1 2,351,715$ Step 1 $1 Million, or 1,000,000$ Last 4 Deposits 2,669,239$ Result: Larger Number 2,669,239$ Step 2 Unencumbered Cash Balance 2,351,715$ Larger Number From Step 1 2,669,239$ Excess Surplus -$ 1 As of July 1, 2019 Table 3 Excess Surplus Calculation South San Francisco Housing Successor Annual Report 2018-19 8 HOUSING SUCCESSOR PO RTFOLIO The Housing Successor Portfolio includes ten properties and twenty loans receivable transferred from the former Agency. The Portfolio had a value of $28,001,911 as of FY 2018-19, as detailed in Table 4. LOANS RECEIVABLE The former Agency transferred 21 loans receivable to the Housing Successor as part of the Housing Asset List approved by DOF on September 5, 2012. One loan was paid off in FY 18-19, leaving 20 loans receivable at the end of the fiscal year:  10 First-Time Homebuyer Loans are administered by the Housing Successor with an outstanding balance of $448,266 as of June 30, 2019. The loans were issued to assist low and moderate income first-time home buyers. Since the former Agency’s dissolution, 13 loans have been paid off and 2 new loans have been issued.  10 Developer Loans are administered with an outstanding balance of $20,723,721 as of June 30, 2019. The loans were issued to develop affordable housing throughout the City. Since dissolution, two developer loans transferred on the HAT have been paid off. Asset Amount Real Properties 339 - 341 Commercial 804,086 714 - 718 Linden 627,593 630 Baden - Land 928,244 636 El Camino - Land 4,470,000 Subtotal $6,829,923 Loans Receivable First-Time Homebuyer Loans (10)448,266 Developer Loans (10)20,723,721 Subtotal $21,171,988 Total Portfolio Value $28,001,911 Source: City of South San Francisco Finance Department Portfolio Value of Real Properties and Loans Receivable Table 4 South San Francisco Housing Successor Annual Report 2018-19 9 It is important to note that $20.3 million of the loa ns receivable value has been written off as uncollectible, as shown in the asset balance in Table 2. This is because many of the loans are not payable unless a property is sold or other conditions are met. PROPERTY DESCRIPTION S AND DISPOSITION ST ATUS When the City assumed the Agency’s housing assets and functions, the former Agency transferred eight properties to the Housing Successor, including four multifamily properties, two single family homes, and two parcels of land (land under existing buildings). HSC Section 34176.1(e) requires all real properties acquired by the Agency prior to February 1, 2012 and transferred to the Housing Successor to be developed for affordable housing purposes or sold within five years from the date DOF approved the Housing Asset Transfer Form, or August 31, 2017. If the Housing Successor is unable to develop or dispose of these properties within the five-year period, the law allows for a five-year extension via adoption of a resolution. All Housing Successor properties transferred on the Housing Asset Transfer Form are subject to this provision. The City meets the property disposition requirement because all properties transferred from the former Agency to the Housing Successor are already operated as affordable housing or have been sold. Descriptions of the properties and their disposition status are below. 310 - 314 Miller (APNs 012-311-230, 240, & 250) Three properties consisting of 13,000 square feet total were donated in May 2016 to Rotary Plaza, Inc. for $1 for the purpose of developing affordable multifamily housing. The property has 81 affordable units, which are to remain affordable for no less than 55 years. 339 – 341 Commercial (APN 012-333-050) This 2,500-square foot lot contains two duplexes. The City purchased the property in 1999 with funding from the former Agency, as well as HOME funds, to mitigate the blighted property and create affordable housing units. South San Francisco Housing Successor Annual Report 2018-19 10 714 – 718 Linden (APN 012-145-430) A triplex sits on this 3,500-square foot lot located near the City’s Downtown core. The City initially helped the owner rehabilitate the property in return for charging affordable rents. In 2005, when the affordability restriction expired and the owner intended to sell the property, the City purchased the property with funding from the former Agency to preserve the units’ affordability. 380 Alta Vista (APN 013-232-170) A single-family home sits on this 9,100-square foot lot. It was initially purchased by the Agency to remove blighting conditions and illegal bedrooms in the home. The property was sold in October 2016 and $1,016,276 in sales proceeds were deposited into the Housing Asset Fund. The funds will be used for affordable housing purposes as required by law. 630 Baden (APN 012-241-230) The Housing Successor owns 95,309-square feet of land under the Magnolia Plaza Senior Apartments, a 125-unit affordable senior apartment complex. The City purchased the Magnolia/Baden property from a local school district using funding from the former Agency and leases the land to Magnolia Plaza Associates as affordable housing. 636 El Camino (APN 014-160-040) The Housing Successor owns 87,121-square feet of land under an affordable multifamily development operated by MidPen Housing. The former Agency entered into a $9,988,434 loan agreement and ground lease with MP South City II, L.P. in March 2011 for the development of affordable units. The project consists of 108 affordable units, which are to remain affordable for no less than 75 years. HOMEOWNERSHIP UNIT I NVENTORY Table 5 presents an inventory of homeownership units assisted by the Housing Successor that require restrictions, covenants, or an adopted program that protects Housing Asset Fund monies. South San Francisco Housing Successor Annual Report 2018-19 11 Table 5 Homeownership Unit Inventory Project Address1 Unit No. Covenant Expiration Affordability Period (Yrs) 1 Manday Place # 802 1 3/21/2035 25 1488 ECR #101 1 2/8/2064 55 1488 ECR #104 1 3/24/2064 55 1488 ECR #106 1 5/1/2067 55 1488 ECR #115 1 8/21/2064 55 1488 ECR #202 1 11/18/2064 55 1488 ECR #205 1 6/16/2064 55 1488 ECR #210 1 7/14/2064 55 1488 ECR #214 1 7/21/2064 55 1488 ECR #216 1 10/16/2064 55 1488 ECR #217 1 6/30/2064 55 1488 ECR #220 1 6/30/2064 55 1488 ECR #223 1 3/16/2065 55 1488 ECR #304 1 11/10/2064 55 1488 ECR #313 1 12/9/2064 55 1488 ECR #314 1 10/25/2064 55 2 Farm Road 1 11/13/2058 55 2200 Gellert Blvd #6103 1 7/21/2039 30 2200 Gellert Blvd #6111 1 11/1/2036 30 2200 Gellert Blvd #6203 1 3/2/2037 30 2200 Gellert Blvd #6205 1 2/10/2037 30 2200 Gellert Blvd #6207 1 11/3/2036 30 2210 Gellert Blvd #5101 1 10/1/2054 45 2210 Gellert Blvd #5103 1 1/30/2037 30 2210 Gellert Blvd #5107 1 7/19/2037 30 2210 Gellert Blvd #5203 1 1/30/2038 30 2210 Gellert Blvd #5205 1 4/19/2037 30 2210 Gellert Blvd #5209 1 1/30/2037 30 2210 Gellert Blvd #5211 1 1/30/2037 30 2210 Gellert Blvd #5309 1 1/30/2037 30 2220 Gellert Blvd #4101 1 6/10/2037 30 2220 Gellert Blvd #4103 1 10/3/2037 30 2220 Gellert Blvd #4107 1 6/8/2037 30 2220 Gellert Blvd #4111 1 6/14/2037 30 2220 Gellert Blvd #4205 1 7/29/1905 30 2220 Gellert Blvd #4211 1 5/26/2037 30 2220 Gellert Blvd #4309 1 7/17/2037 30 2230 Gellert Blvd #3103 1 2/25/2038 30 2230 Gellert Blvd #3105 1 12/31/2037 30 South San Francisco Housing Successor Annual Report 2018-19 12 Table 5 Homeownership Unit Inventory Project Address1 Unit No. Covenant Expiration Affordability Period (Yrs) 2230 Gellert Blvd #3107 1 12/3/2037 30 2230 Gellert Blvd #3109 1 12/10/2037 30 2230 Gellert Blvd #3203 1 12/10/2037 30 2230 Gellert Blvd #3205 1 6/10/2037 30 2230 Gellert Blvd #3209 1 1/8/2038 30 2230 Gellert Blvd #4109 1 12/3/2037 30 2250 Gellert Blvd #2101 1 9/25/2038 30 2250 Gellert Blvd #2103 1 10/6/2038 30 2250 Gellert Blvd #2107 1 8/29/2063 30 2250 Gellert Blvd #2111 1 3/6/2039 30 2250 Gellert Blvd #2203 1 10/6/2038 30 2250 Gellert Blvd #2303 1 10/6/2038 30 2260 Gellert Blvd #1107 1 11/12/2043 30 2260 Gellert Blvd #1111 1 7/31/1905 30 2260 Gellert Blvd #1207 1 5/18/2039 30 260 Hillside Blvd 1 1/24/2058 55 3775 Radburn Drive 1 2/15/2034 30 3855 Carter Drive #203 1 9/1/2034 25 438 Commercial Ave 1 6/30/2060 55 440 Commercial Ave 1 6/30/2060 55 441 2nd Lane 1 6/30/2060 55 443 2nd Lane 1 6/30/2060 55 56 Farm Road 1 1/19/2061 55 61 Farm Court 1 7/25/1905 30 936 Commercial Ave 1 11/10/2041 30 942 Mission Road 1 4/21/2035 25 958 Commercial Ave 1 8/25/2064 55 1 2200 Gellert Blvd #6109, #5105, #5111 and #5303 were released from their respective Restrictions Source: City of South San Francisco South San Francisco Housing Successor Annual Report 2018-19 13 APPENDIX 1 - HOUSING SUCCESSOR AN NUAL REPORT REQUIREMENTS Housing Successor Reporting Requirements Health and Safety Code Section 34176.1(f) Housing Asset Fund Revenues & Expenditures Other Assets and Active Projects Obligations & Proportionality Total amount deposited in the Housing Asset Fund for the fiscal year Amount of deposits funded by a Recognized Obligation Payment Schedule (“ROPS”) Description of any project(s) funded through the ROPS Description of any outstanding production obligations of the former Agency that were inherited by the Housing Successor Statement of balance at the close of the fiscal year Update on property disposition efforts (note that housing successors may only hold property for up to five years, unless it is already developed with affordable housing) Compliance with proportionality requirements (income group targets), which must be upheld on a five year cycle Description of Expenditures for the fiscal year, broken out as follows:  Homeless prevention and rapid rehousing  Administrative and monitoring  Housing development expenses by income level assisted Other “portfolio” balances, including:  Statutory value of any real property either transferred from the former Agency or purchased by the Housing Asset Fund  Value of loans and grants receivable Percentage of deed-restricted rental housing restricted to seniors and assisted by the former Agency, the Housing Successor, or the City within the past ten years compared to the total number of units assisted by any of those three agencies Description of any transfers to another housing successor for a joint project Inventory of homeownership units assisted by the former Agency or the housing successor that are subject to covenants or restrictions or to an adopted program that protects the former Agency’s investment of monies from the Low and Moderate Income Housing Fund Amount of any excess surplus, and, if any, the plan for eliminating it South San Francisco Housing Successor Annual Report 2018-19 14 APPENDIX 2 – HOUSING ASSET TRANSFER FORM The Housing Asset Transfer Form is attached as a separate document. South San Francisco Housing Successor Annual Report 2018-19 15 APPENDIX 3 – HOUSING ASSET FUN D EX PENDITURE REQUIREMENTS Housing Asset Fund Expenditure Requirements Health and Safety Code Section 34176.1 Expense Category Limits Allowable Uses Administration and Compliance Monitoring $1,400,096 maximum for FY 2018-19 (limit varies each year) Administrative activities such as:  Professional services (consultant fees, auditor fees, etc.)  Staff salaries, benefits, and overhead for time spent on Housing Successor administration  Compliance monitoring to ensure compliance with affordable housing and loan agreements  Property maintenance at Housing Successor-owned properties Capped at $200,000 adjusted annually for inflation or 5% of the statutory value of real property owned by the housing successor and the value of loans and grants receivable from the HAT (“Portfolio”), whichever is greater. Homeless Prevention and Rapid Rehousing Solutions $250,000 maximum per fiscal year Services for individuals and families who are homeless or would be homeless but for this assistance, including:  Contributions toward the construction of local or regional homeless shelters  Housing relocation and stabilization services including housing search, mediation, or outreach to property owners  Short-term or medium-term rental assistance  Security or utility deposits  Utility payments  Moving cost assistance  Credit repair  Case management  Other appropriate activities for homelessness prevention and rapid rehousing of persons who have become homeless. Affordable Housing Development No spending limit, but must comply with income and age targets “Development” includes:  New construction  Acquisition and rehabilitation  Substantial rehabilitation  Acquisition of long-term affordability covenants on multifamily units  Preservation of at-risk units whose affordable rent restrictions would otherwise expire over the next five years South San Francisco Housing Successor Annual Report 2018-19 16 Housing Asset Fund Expenditure Requirements Health and Safety Code Section 34176.1 Expense Category Limits Allowable Uses Income Targets Every five years (currently FYE 2020-2024), Housing Asset Funds must meet income targets:  At least 30% on extremely low income rental households (up to 30% AMI or “Area Median Income”)  No more than 20% on low income households (60-80% AMI) Moderate and above moderate income households may not be assisted (above 80% AMI). Failure to comply with the extremely low income requirement in any five-year compliance period will result in having to ensure that 50 percent of remaining funds be spent on extremely low income rental units until in compliance. Exceeding the expenditure limit for low households earning between 60-80% AMI in any five-year reporting period will result in not being able to expend any funds on these income categories until in compliance. Age Targets For the prior ten years (resets every year), a maximum of 50% of deed-restricted rental housing units assisted by the Housing Successor or its host jurisdiction may be restricted to seniors. If a housing successor fails to comply, Housing Asset Funds may not be spent on deed-restricted rental housing restricted to seniors until in compliance. City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:20-234 Agenda Date:4/8/2020 Version:1 Item #:3. Report regarding a resolution approving a reimbursement agreement with Pinefino LLC, for the completion of undergrounding utilities along Cypress Avenue in excess of obligation for development at 211 Airport Boulevard.(Matthew Ruble, Principal Engineer; Sailesh Mehra, Chief Planner) RECOMMENDATION It is recommended that the City Council adopt a resolution approving a reimbursement agreement with Pinefino LLC for undergrounding utilities in excess of obligation for development at 211 Airport Boulevard, at the cost of $235,612.21. BACKGROUND/DISCUSSION Staff is requesting that the City Council approve a Reimbursement Agreement with Pinefino LLC for payment of undergrounding utilities in excess of obligation for the development at 211 Airport Boulevard. On September 3, 2015, the Planning Commission granted entitlements to a 69-unit, multi-family residential development, located at 211 Airport Boulevard to Pinefino LLC, owned by Edwin Law. As part of the conditions of approval, Condition 8, the development was required to make off-site improvements in the right- of-way, including new sidewalk, curb and gutter, planting of new street trees, installation of new light poles, and undergrounding all overhead utilities. When Pinefino LLC was preparing the construction drawings, subsequent to entitlements, Mr. Law indicated that, as part of undergrounding utilities along the project frontage on Cypress Avenue, the street would require a new pole at the property line. The Chief Planner and the City’s Project Engineer met and decided that the new pole defeated the purpose of undergrounding utilities. The staff team overseeing this project (including the Chief Planner, City Engineer, Assistant City Manager, and Economic and Community Development Director, along with other line staff) jointly determined that it was in the best interest of the City for Pinefino LLC to underground all utilities along the street for the remainder of the block, up to Grand Avenue. The rationale for this was to achieve the City’s goal of undergrounding utilities on Downtown sidewalks in the most cost efficient manner, and minimize the impact to business owners because Pinefino LLC was already undergrounding utilities on part of Cypress Avenue. Pinefino LLC agreed to do all undergrounding on the block, so long as Pinefino LLC would be reimbursed for this additional work. Pinefino LLC completed the additional utility undergrounding work. Pinefino LLC now requests reimbursement of $235,612.21 for the additional work completed in excess of their obligation. Pinefino LLC provided documentation of the costs incurred in performing the additional undergrounding work. The City Engineer reviewed the documentation and work performed and believes that the requested amount of $235,612.21 is reasonable. Attachment A to this staff report provides cost calculation for underground work of subject property in support of this request. At the point that the City and Pinefino LLC made this agreement it should have been formalized by way of a reimbursement agreement approved by the City Council. However, this was not done. City staff have already City of South San Francisco Printed on 4/3/2020Page 1 of 2 powered by Legistar™ File #:20-234 Agenda Date:4/8/2020 Version:1 Item #:3. implemented measures to ensure that this does not happen again. Current standard operating procedures require the City and developers, completing work beyond their obligation, to enter into formal agreements. This will allow the appropriate City department to allocate the appropriate funds in their budgets for reimbursement. FUNDING The funding for this reimbursement agreement will be included in the Fiscal Year 2020-2021 budget, and payment to Pinefino LLC will be made during that fiscal year. CONCLUSION Pinefino LLC agreed to underground utilities in excess of what was required for the development at 211 Airport Boulevard so long as the City would reimburse this excess work. Pinefino LLC completed the work. Pinefino LLC is now asking for reimbursement of $235,612.21, which the City has reviewed and finds reasonable. It is recommended that the City Council adopt a resolution to approve a reimbursement agreement with Pinefino LLC for reimbursement of $235,612.21 for undergrounding utilities in excess of their obligation for the development at 211 Airport Boulevard. ATTACHMENTS Attachment A: Supporting Cost Calculations City of South San Francisco Printed on 4/3/2020Page 2 of 2 powered by Legistar™ Cost calculation for underground work north of subject property Project Name: Pinefino Apartment Project Address: 100 Baden Ave., South San Francisco Off-Site Joint Trench at Cypress Sidewalk North End No. Description Units Qty Unit Cost ($) Extension 1 Construct 1-4" conduit per P1 of joint trench plan LF 86 $19.50 $1,677.00 Night Works 2 Construct 1-3" conduit per SV of Joint trench plan LF 85 $13.50 $1,147.50 Night Works 3 Construct 1-4" conduit per S of joint trench plan LF 8 $19.50 $156.00 Night Works 4 Construct 1-4" conduit per SV1 of joint trench plan LF 20 $19.50 $390.00 Night Works 5 Install one 4'6"x6'6"x5' enclosure per "6" of PG&E plan Each 1 $11,500.00 $11,500.00 Night Works 6 Install one 24"x36"x26" enclosure per "3" of PG&E plan Each 1 $1,200.00 $1,200.00 Night Works 7 3 - 1/OAL (25kV) cable in 1-4" conduit per "P1" of PG&E drawings LF 95 $280.00 $26,600.00 Day Work 8 4/OAL TPX (600V)XLP Cable in 1-3" conduit per "SV" of PG&E drawings LF 55 $320.00 $17,600.00 Day Work 9 4-750 AL TPX (600V) XLP Cable in 1-4" conduit per "S" of PG&E drawings LF 17 $320.00 $5,440.00 Day Work 10 4-750 AL TPX (600V) XLP Cable in 1-4" conduit per "SV1" of PG&E drawings LF 10 $320.00 $3,200.00 Day Work 11 Remove existing overhead cables LF 100 $12.00 $1,200.00 Day Work 12 Install 1-4" conduit LF 73 $19.50 $1,423.50 Night Works 13 Install 1-4" conduit LF 174 $19.50 $3,393.00 Night Works 14 Pull fiber optic line from property to pole at Grand LF 100 $84.00 $8,400.00 Day Work 15 Pull cable to neighbor at north LF 80 $32.00 $2,560.00 Day Work 16 Comcast No Charge and no requirement beyond property line per Comcast EA 0 $0.00 $0.00 Night Works 17 Wave Conduit Install 2-4" conduit LF 100 $39.00 $3,900.00 Night Works 18 Sawcut existing asphalt pavement (3'x70') SF 210 $9.00 $1,890.00 Day Works 19 Sawcut existing concrete sidewalk (3'x15') SF 45 $9.00 $405.00 Day Works 20 Dump old asphalt and concrete CuYd 6 $220.00 $1,320.00 Night Works 21 Excavation 3'x85'--5 feet deep CuYd 47 $39.00 $1,833.00 Night Works 22 Slurry mix (3'x2'x85') CuYd 19 $285.00 $5,415.00 Night Works 23 Backfill (3'x3'x85') CuYd 28 $42.00 $1,176.00 Night Works 24 Install 200 amp pull box Each 1 $1,800.00 $1,800.00 Day Work 25 Install 400 amp pull box Each 1 $3,400.00 $3,400.00 Day Work 26 Install 200 amp wire to connect overhead service Each 1 $900.00 $900.00 Night Works 27 Install 400 amp wire to connect overhead service Each 1 $1,600.00 $1,600.00 Night Works 28 Install ground for both pull box Each 1 $800.00 $800.00 Day Work 29 Paint all conduits and pull box to match existing exterior color Each 1 $1,000.00 $1,000.00 Day Work 30 Grind 2" thick of existing pavement and repave existing street surface (25'x107')SF 2,675 $5.60 $14,980.00 Day Work 31 Thermplastic & painting of street stripping and parking space Each 1 $2,650.00 $2,650.00 Day Work 32 Demo haul away old patching asphalt SF 560 $6.80 $3,808.00 Night Work 33 Texture concrete sidewalk (6'x10') SF 60 $32.00 $1,920.00 Day Work 34 Regular concrete sidewalk (22'x10')SF 500 $21.00 $10,500.00 Night work 35 Engineering Works for joint trench plan $4,900.00 36 Cleaning $1,500.00 SubTotal $151,584.00 15% Overhead & General Condition $22,737.60 2% Liability Insurance $3,031.68 Supervision $15,000.00 GRAND TOTAL $192,353.28 AT&T cable inside conduits paid by owner to AT&T PG&E underground performed by GC AT&T Conduit Excavation and Backfill Electrical work for two neighbor units Repair concrete sidewalk PG&E cables inside conducts paid by owner to PG&E Repave street SEGMENT 1SEGMENT 2SEGMENT 3SEGMENT 4SEGMENT 5SEGMENT 1: 66 FEETSEGMENT 2: 179 FEETSEGMENT 3: 174 FEETSEGMENT 4: 144 FEETSEGMENT 5: 73 FEETBOTH OF THEM MAKE TWO GREENLINES COMBINE TO ONE RED LINE(TWO UNITS IN ONE LOT) DESCRIPTIONSHEET NO.REVISION NUMBER: SHEETOFREVDATEPLOT DATE:UTILITY DESIGN & CONSULTING - APPLICANT DESIGN - STREET LIGHTINGP.O. BOX 737ALAMO, CA 94507PHONE: 925-820-8502 - FAX: 925-820-8407PINEFINO LLCPINEFINOSOUTH SAN FRANCISCOCALIFORNIA16-599AGCKAG1"=209-7-2016JT11 109-7-2016NOTE:NOT FOR CONSTRUCTION-PRELIMINARY PLANS-* THESE SECTIONS MAY ORMAY NOT CONTAIN SECONDARYSECTIONWJVULONMKTSRQPIG*F*E*D*H*C*B*A*TG SC P OTHERXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXGOVERNING AGENCIES' STANDARDS AND SPECIFICATIONSJOINT TRENCH CONTRACTOR SHALL COMPLY WITH LOCALMINIMUM BACKFILL REQUIREMENTSDISTRIBUTIONSERVICEMINIMUM SEPARATION AND CLEARANCE REQUIREMENTS (INCHES)SECTION 'F1'27 LFSECTION 'H'12 LFSECTION 'H1'178 LFSECTION 'D1'60 LFSECTION 'G1'70 LFSECTION 'L'3 LFSECTION 'W1'11 LFUTILITY OCCUPANCY ONLY,TRENCH SECTIONS SHOWNOTE:JOINT UTILITY TRENCH SECTION LEGENDCONDUITS NOT SHOWNSIZE AND QUANTITY OFSECTION 'H2'45 LFSECTION 'H3'132 LFSECTION 'D3'148 LFSECTION 'W'263 LFSECTION 'T1'15 LF(SERVICE)45' City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:20-235 Agenda Date:4/8/2020 Version:1 Item #:3a. Resolution approving reimbursement for Pinefino LLC for undergrounding utilities in excess of obligation at 211 Airport Boulevard in South San Francisco WHEREAS, on September 3, 2015, the Planning Commission granted entitlements to a 69-unit, multi-family residential development, located at 211 Airport Boulevard to Pinefino LLC, owned by Edwin Law; and WHEREAS, as part of the conditions of approval, Condition 8, the development was required to make off-site improvements in the right-of-way, including new sidewalk, curb and gutter, planting of new street trees, installation of new light poles and undergrounding all overhead utilities. WHEREAS, when Pinefino LLC was preparing the construction drawings, subsequent to entitlements, they indicated that as part of undergrounding utilities along the project frontage, the street would require a new pole at the property line; and WHEREAS, the staff team overseeing this project (including the Chief Planner, City Engineer, Assistant City Manager, and Economic and Community Development Director, along with other line staff) jointly determined that it was in the best interest of the City for Pinefino LLC to underground all utilities along the street for the remainder of the block, up to Grand Avenue; and WHEREAS, the rationale for this was to achieve the City’s goal of undergrounding utilities on Downtown sidewalks in the most cost efficient manner, and minimize the impact to business owners because Pinefino LLC was already undergrounding utilities on part of Cypress Avenue; and WHEREAS, Pinefino LLC agreed to underground all utilities on the rest of the block so long as Pinefino LLC would be reimbursed for this additional work; and WHEREAS, Pinefino LLC completed the work that was agreed upon and now requests reimbursement of $235,612.21. Pinefino LLC provided documentation of the costs incurred in performing the additional undergrounding work. The City Engineer reviewed the documentation and work performed and believes that the requested amount of $235,612.21 is reasonable; and WHEREAS, the staff recommends that the City Council approve the Reimbursement Agreement for work conducted in excess of Pinefino LLC’s obligation. NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council hereby: 1.Approves the Reimbursement Agreement with Pinefino LLC,attached hereto as Exhibit A and incorporated herein; and City of South San Francisco Printed on 5/8/2020Page 1 of 2 powered by Legistar™ File #:20-235 Agenda Date:4/8/2020 Version:1 Item #:3a. 2.Authorizes the City Manager,or his designee,to execute the Reimbursement Agreement and any related documents, subject to review and approval as to form by the City Attorney; and 3.Authorizes the City Manager to take any other related actions necessary to carry out the intent of this Resolution. City of South San Francisco Printed on 5/8/2020Page 2 of 2 powered by Legistar™ AGREEMENT FOR REIMBURSEMENT TO PINEFINO LLC FOR UNDERGROUNDING UTILITIES IN EXCESS OF OBLIGATION This Agreement for Reimbursement of Undergrounding Utilities (“Agreement”) is entered into by and between the City of South San Francisco, a municipal corporation organized under the laws of the State of California, and Pinefino LLC, a California Domestic Limited- Liability Company, this 25th day of March, 2020 (“Effective Date”), with reference to the facts set forth in the Recitals below. RECITALS A. On September 3, 2015, the Planning Commission granted entitlements to a 69- unit, multi-family residential development, located at 211 Airport Boulevard to Pinefino LLC, owned by Edwin Law. B. As part of the conditions of approval, Condition 8, the development was required to make off-site improvements in the right-of-way, including new sidewalk, curb and gutter, planting of new street trees, installation of new light poles and undergrounding all overhead utilities. C. When Pinefino LLC was preparing the construction drawings, subsequent to entitlements, Mr. Law indicated that as part of undergrounding utilities along the project frontage, the street would require a new pole at the property line. D. City representatives met and decided that the new pole defeated the purpose of undergrounding utilities, and that it was in the best interests of the City for Pinefino LLC to underground all utilities along Cypress Street for the remainder of the block (i.e., from Baden to Grand Ave.) E. Pinefino LLC agreed to underground utilities on the rest of the block so long as Pinefino LLC would be reimbursed for this additional work. F. Pinefino LLC completed the additional utility undergrounding work and now requests reimbursement of $235,612.21. G. The City Engineer reviewed this request and believes that $235,612.21 is a reasonable request. NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties agree as follows: AGREEMENT 1. Reimbursement for Undergrounding Utilities in Excess of Obligation. The City agrees to reimburse Pinefino LLC for undergrounding utilities in excess of obligation for the 211 Airport Boulevard development. City agrees to pay Pinefino LLC $235,612.21, which equals the amount that Pinefino LLC has demonstrated to the satisfaction of the City Engineer was the actual and reasonable cost for the undergrounding of utilities on Cypress Avenue. Documentation of actual costs of utility undergrounding work is attached as Exhibit A. 2. Hold Harmless and Indemnification. To the fullest extent permitted by law, Pinefino LLC agrees to indemnify, defend (with counsel acceptable to the City), and hold harmless the City of South San Francisco and its elected and appointed officers, employees, agents, contractors and consultants (collectively, the “City Indemnitees”) from and against any and all liability, loss, damage, claims, expenses and costs (including, without limitation, attorneys’ fees and costs of litigation) (collectively, “Liability”) of every nature arising out of or in connection with this Agreement and/or activities authorized by this Agreement, except such Liability caused by the negligence or willful misconduct of the City Indemnitees. 3. No Relief of Other Obligations. This Agreement does not relieve Pinefino LLC from performing any and all other obligations relating to the 211 Airport Boulevard Project. 4. Default. In the event of default by Pinefino LLC, the costs and expenses of City for which Pinefino LLC shall be liable shall include but not be limited to the City’s costs of suit and reasonable attorney’s fees. 5. Independent Contractor. Pinefino LLC is an independent contractor and nothing contained in this agreement shall be construed as creating an employer/employee or principal/agent relationship between City and Pinefino LLC. 6. Severability. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue to be in full force and effect. 7. Term. This Agreement is effective upon execution unless otherwise modified in writing by mutual agreement of the parties. 8. Execution in Counterparts. This Agreement may be executed in counterparts and/or by facsimile or other electronic means, and when each Party has signed and delivered at least one such counterpart, each counterpart shall be deemed an original, and, when taken together with other signed counterpart, shall constitute one Agreement, which shall be binding upon and effective as to all Parties. 9. Entire Agreement. This Agreement represents the entire and integrated agreement between the Parties. This Agreement may be modified or amended only by a subsequent written agreement signed by both Parties. 10. Knowing and Voluntary Execution. Both parties to this Agreement have had the opportunity to be advised by and to have this Agreement reviewed by legal counsel of their choosing. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date written above. CITY OF SOUTH SAN FRANCISCO By: __________________________ Mike Futrell, City Manager Attest: __________________________ City Clerk Approved as to form: __________________________ City Attorney DEVELOPER: PINEFINO LLC, a California Domestic Limited-Liability Company By: _______________________ Edwin Law, Owner Exhibit A (Documentation of Utility Undergrounding Costs) 3496900.4 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:20-243 Agenda Date:4/8/2020 Version:1 Item #:4. Report regarding a resolution authorizing the acceptance of $190,143 in grant funding from the California State Library to support the Community Learning Center’s Afterschool Project Shared Vision/Bringing the Library to You and approving Budget Amendment 20.040. (Valerie Sommer, Library Director) RECOMMENDATION It is recommended that the City Council adopt a resolution authorizing the acceptance of $190,143 in grant funding from the California State Library to support the Community Learning Center’s Afterschool Project Shared Vision/Bringing the Library to You and approving Budget Amendment 20.040. BACKGROUND/DISCUSSION On December 13,2019,the South San Francisco Public Library’s Community Learning Center (CLC)accepted an invitation from the California State Library to apply for a demonstration grant through their Out of School Shared Vision/Bringing the Library to You Initiative.On January 20,2020,CLC applied for a grant from the California State Library to support CLC’s afterschool project designed to target our community’s mental health and workforce development needs of local teens,in alignment with the South San Francisco Community Collaboration for Children’s Success (SSF CCCS)Initiative.On February 24,2020 CLC was awarded $190,143 in grant funding from the California State Library.Funding will be used to achieve three goals:(1) Library staff will engage school-aged youth and their families in activities promoting social emotional learning (SEL)and mental health goals in existing out of school time programs,which are run in partnership with a community-wide collaborative.(2)A new program will emphasize teen workforce preparedness,promoting leadership,a positive work ethic,knowledge of education and employment options,and soft skills that employers seek.(3)The project will build sustainability by training library staff and community partners on social emotional learning and mental health,helping program staff better understand and identify trauma and emotions, be able to refer youth to appropriate services and to care for themselves. The CLC,Boys and Girls Club of North San Mateo County,SSF Parks and Recreation Department,and the South San Francisco Unified School District have been meeting to work together as part of the SSF Community Collaboration for Children’s Success (SSF CCCS).The San Mateo County Human Services Agency,Health,Probation,Office of Education and First 5 San Mateo County created The Community Collaboration for Children’s Success (CCCS),in hopes of preventing youth from the challenging and traumatic circumstances that lead them to high-intensity County systems.The SSF CCCS created an action plan that includes a focus on the training of staff in youth-servicing programs.The pilot training outlined in this grant has been planned by the participating members of the SSF CCCS to address this community need. FISCAL IMPACT Grant funds will be used to amend the Library Department’s current FY 2019-2020 Operating Budget via Budget Amendment 20.040.This grant runs through March 31,2022;grant funding not expended will be carried over through fiscal year 2021-2022.Receipt of these funds does not commit the City to ongoing City of South San Francisco Printed on 4/2/2020Page 1 of 2 powered by Legistar™ File #:20-243 Agenda Date:4/8/2020 Version:1 Item #:4. carried over through fiscal year 2021-2022.Receipt of these funds does not commit the City to ongoing funding. RELATIONSHIP TO STRATEGIC PLAN Acceptance of this grant will contribute to the City’s Strategic Plan under Priority #2:Quality of Life,by strengthening learning programs through the CLC’s afterschool project. CONCLUSION Receipt of these funds will enable the Library to continue and expand literacy services in South San Francisco through CLC’s afterschool project.It is recommended that the City Council accept $190,143 in grant funding to support the CLC’s afterschool project, and approve Budget Amendment 20.040. City of South San Francisco Printed on 4/2/2020Page 2 of 2 powered by Legistar™ City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:20-244 Agenda Date:4/8/2020 Version:1 Item #:4a. Resolution authorizing the acceptance of $190,143 in grant funding from the California State Library to support the South San Francisco Public Library’s Community Learning Center’s Afterschool Project Shared Vision/ Bringing the Library to You and approving Budget Amendment 20.040. WHEREAS,the California State Library has awarded the City $190,143 in grant funding to support the Community Learning Center’s Afterschool Project Shared Vision/ Bringing the Library to You ; and WHEREAS,funding from the California State Library will help support programs from the CLC’s Afterschool project designed to target our community’s mental health and workforce development needs of local teens as part of the SSF Community Collaboration for Children’s Success (CCCS); and WHEREAS,the Community Learning Center will partner with the Boys and Girls Club of North San Mateo County,SSF Parks and Recreation Department,and the South San Francisco Unified School District as part of the SSF CCCS; and WHEREAS,staff recommends the acceptance of grant funding in the amount of $190,143 from the California State Library to support the Community Learning Center’s Afterschool Project Shared Vision/Bringing the Library to You; and WHEREAS,the grant funds will be used to amend Fiscal Year (FY)2020-2021 Operating Budget of the Library Department via Budget Amendment 20.040. NOW,THEREFORE,BE IT RESOLVED that the City Council of the City of South San Francisco does hereby accept $190,143 in grant funding from the California State Library and approve Budget Amendment 20.040 to amend the Library Department’s FY 2020-2021 Operating Budget in order to reflect an increase of $190,143. ***** City of South San Francisco Printed on 4/15/2020Page 1 of 1 powered by Legistar™ City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:20-135 Agenda Date:4/8/2020 Version:1 Item #:5. Report regarding conducting a public hearing under the Tax and Equity Fiscal Responsibility Act regarding the proposed issuance of revenue bonds by the California Municipal Finance Authority for the benefit of MidPen Housing Corporation for the rehabilitation of two low and lower income affordable rental housing developments in the City of South San Francisco -Willow Gardens Apartments,a 36-unit rental development located at 982,986 and 990 Brusco Way,344,364,383 and 395 Susie Way,976 Sandra Court and 986 Nora Way,and the Greenridge Apartments,a 34-unit rental housing development located at 1565 El Camino Real. (Deanna Talavera, Management Analyst) RECOMMENDATION Staff recommends that the City Council: 1)Conduct a public hearing under the requirements of the Tax and Equity Fiscal Responsibility Act (TEFRA) and the Internal Revenue Code of 1986, as amended (the “Code”). 2)Adopt a resolution approving the issuance of revenue bonds (the “Bonds”)by the California Municipal Finance Authority (CMFA)for the benefit of MidPen Housing Corporation,a California nonprofit corporation and an organization described in Section 501(c)(3)of the Internal Revenue Code of 1986,or a subsidiary or affiliate thereof (the “Borrower”),to provide for the financing of rehabilitation and equipping of two affordable housing developments in South San Francisco.Adoption of the proposed resolution is solely for the purposes of satisfying the requirements of TEFRA,the Code and the California Government Code Section 6500 (and following) and does not obligate the City to any financial commitment. BACKGROUND/DISCUSSION The Borrower requested that the CMFA serve as the municipal issuer of the Bonds in an aggregate principal amount not to exceed $42,000,000 of tax-exempt revenue bonds.The proceeds of the Bonds will be used for the rehabilitation of (a)the Willow Gardens Apartments,a 36-unit affordable rental housing facility for low- and lower-income households,located in the City at 982,986 and 990 Brusco Way,344,364,383 and 395 Susie Way,976 Sandra Court and 986 Nora Way;and (b)the Greenridge Apartments,a 34-unit affordable rental housing facility for low-and lower-income households,located in the City at 1565 El Camino Real,each to be owned and/or operated by the Borrower. In order for all or a portion of the Bonds to qualify as tax-exempt bonds,the City of South San Francisco must conduct a public hearing (the “TEFRA Hearing”)providing for the members of the community an opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the Project.Prior to such TEFRA Hearing,reasonable notice must be provided to the members of the community.Following the close of the TEFRA Hearing,an “applicable elected representative”of the governmental unit hosting the Project must provide its approval of the issuance of the Bonds for the financing of the Project.The City Council adopting the proposed resolution satisfies this requirement. City of South San Francisco Printed on 4/2/2020Page 1 of 2 powered by Legistar™ File #:20-135 Agenda Date:4/8/2020 Version:1 Item #:5. California Municipal Finance Authority The CMFA was created on January 1,2004 pursuant to a joint exercise of powers agreement to promote economic,cultural and community development,through the financing of economic development and charitable activities throughout California.The CMFA was formed to assist local governments,non-profit organizations and businesses with the issuance of taxable and tax-exempt bonds aimed at improving the standard of living in California.The CMFA’s representatives and its Board of Directors have considerable experience in bond financings.To date,over 300 municipalities have become members of CMFA.The City of South San Francisco is a member of CMFA. FISCAL IMPACT Repayment of the Bonds will be the sole responsibility of the Borrower,and the City will have no financial or legal obligation,liability or responsibility for the Project or the repayment of the Bonds for the financing of the Project.All financing documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bonds are not obligations of the City or the State of California but are to be paid for solely from funds provided by the Borrower. The Board of Directors of the California Foundation for Stronger Communities,a California non-profit public benefit corporation (the “Foundation”),acts as the Board of Directors for the CMFA.Through its conduit issuance activities,the CMFA shares a portion of the issuance fees it receives with its member communities and donates a portion of these issuance fees to the Foundation for the support of local charities.With respect to the City of South San Francisco,it is expected that a portion of the issuance fee attributable to the City will be granted by the CMFA to the general fund of the City.Such grant may be used for any lawful purpose of the City. CONCLUSION In light of the foregoing,and in order to support affordable housing,staff recommends that the City conduct the TEFRA Hearing and adopt the resolution in favor of the issuance of the Bonds by the CMFA. City of South San Francisco Printed on 4/2/2020Page 2 of 2 powered by Legistar™ City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:20-136 Agenda Date:4/8/2020 Version:1 Item #:5a. Resolution of the City Council of the City of South San Francisco approving the issuance of revenue bonds by the California Municipal Finance Authority in an aggregate principal amount not to exceed $42,000,000 to finance the acquisition and rehabilitation of two affordable rental housing facilities for the benefit of Midpen Housing Corporation or an affiliate thereof, and certain other matters relating thereto. WHEREAS,MidPen Housing Corporation,a California nonprofit corporation (the “Sponsor”),on behalf of an entity to be created by the Sponsor or an affiliate of the Sponsor (such entity to be referred to herein as the “Borrower”),has requested that the California Municipal Finance Authority (the “Authority”)issue one or more series of revenue bonds in an aggregate principal amount not to exceed $42,000,000,including but not limited to revenue bonds issued as part of a plan to finance and refinance the facilities described herein (the “Bonds”); WHEREAS,proceeds of not to exceed $21,000,000 principal amount of the Bonds will be used to finance the acquisition,development,rehabilitation and equipping of the Willow Gardens Apartments,a 36-unit affordable rental housing facility for low-and lower-income households,located in the City of South San Francisco (the “City”)at 982,986 and 990 Brusco Way,344,364,383 and 395 Susie Way,976 Sandra Court and 986 Nora Way, to be owned and/or operated by the Borrower (the “Willow Gardens Project”); and WHEREAS,proceeds of not to exceed $21,000,000 principal amount of the Bonds will be used to finance the acquisition,development,rehabilitation and equipping of the Greenridge Apartments,a 34-unit affordable rental housing facility for low-and lower-income households,located in the City at 1565 El Camino Real,to be owned and/or operated by the Borrower (the “Greenridge Project”and collectively with the Willow Gardens Project, the “Project”); and WHEREAS,pursuant to Section 147(f)of the Internal Revenue Code of 1986 (the “Code”),the issuance of the Bonds by the Authority must be approved by the City because the Project is located within the territorial limits of the City; and WHEREAS,the City Council of the City (the “City Council”)is the elected legislative body of the City and is one of the “applicable elected representatives”required to approve the issuance of the Bonds under Section 147 (f) of the Code; and WHEREAS,the Authority has requested that the City Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f)of the Code and the requirements of Section 4 of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority,dated as of January 1,2004 (the “Agreement”),among certain local agencies,including the City; and WHEREAS,pursuant to Section 147(f)of the Code,the City Council has,following notice duly given,held a public hearing regarding the issuance of the Bonds,and now desires to approve the issuance of the Bonds byCity of South San Francisco Printed on 5/8/2020Page 1 of 2 powered by Legistar™ File #:20-136 Agenda Date:4/8/2020 Version:1 Item #:5a. public hearing regarding the issuance of the Bonds,and now desires to approve the issuance of the Bonds by the Authority; NOW,THEREFORE,BE IT RESOLVED,by the City Council of the City of South San Francisco,as follows: Section 1. The foregoing recitals are true and correct. Section 2.The City Council hereby approves the issuance of the Bonds by the Authority,including but not limited to Bonds issued as part of a plan to finance the facilities described herein.It is the purpose and intent of the City Council that this resolution constitute approval of the issuance of the Bonds by the Authority, for the purposes of (a)Section 147(f)of the Code by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is located,in accordance with said Section 147(f)and (b) Section 4 of the Agreement. Section 3.The officers of the City are hereby authorized and directed,jointly and severally,to do any and all things and to execute and deliver any and all documents which they deem necessary or advisable in order to carry out,give effect to and comply with the terms and intent of this resolution and the financing transaction approved hereby. Section 4.The Clerk shall forward a certified copy of this Resolution and an originally executed Agreement to the Authority in care of its counsel: Ronald E. Lee, Esq. Jones Hall, APLC 475 Sansome Street, Suite 1700 San Francisco, CA 94111 Section 5. This resolution shall take effect immediately upon its adoption. City of South San Francisco Printed on 5/8/2020Page 2 of 2 powered by Legistar™ City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:20-187 Agenda Date:4/8/2020 Version:1 Item #:6. Report regarding a motion to accept the construction improvements of the Fire Station 64 Dormitory and Bathroom Remodel Project as complete in accordance with plans and specifications (Total Construction Cost $1,285,909.87).(Robert T. Hahn, Project Manager) RECOMMENDATION It is recommended that the City Council,by motion,accept the construction improvements of the Fire Station 64 Dormitory and Bathroom Remodel Project (Project No.pf1805)as complete in accordance with plans and specifications (Total Construction Cost $1,285,909.87). BACKGROUND/DISCUSSION On July 24,2019,the City Council of South San Francisco awarded the Fire Station 64 Dormitory and Bathroom Remodel Project to Agbayani Construction Corporation in an amount not to exceed $992,000.00. Punch list items have been completed and project construction was determined to be substantially complete on March 20, 2020. Fire Department personnel are scheduled to occupy Fire Station on April 1, 2020. The total construction cost incurred to date for the project is summarized as follows: Projected Actual Agbayani Construction Corporation Contract $992,000.00 $992,000.00 Construction Contingency (25%) $248,000.00 $184,935.01 Construction Management/Administration (10%)$100,000.00 $108,974.86 Total Project Budget $1,340,000.00 $1,285,909.87 Construction contingency expenditures were primarily for additional design services and documentation. Additional costs were associated with extending the framing for shear walls to the roof ($51,479.00),additional lockers not included in the original bid ($20,790.00),and installing a new front door to be compliance with ADA requirements ($17,571.00)and lighting above sinks in the bathrooms and towel bars not included in the bid. Construction Management/Administration costs increased due to the extension of the completion date from late January to late March. FISCAL IMPACT The project was funded by the General Fund,and the project was included in the City of South San Francisco’s Fiscal Year 2019-2020 Capital Improvement Program (Project No.pf1805).Sufficient funds were allocated to cover the project costs. RELATIONSHIP TO STRATEGIC PLAN Approval of this action will contribute to the City’s Strategic Plan outcome of improved Quality of Life by extending the useful life of Fire Station 64 and enhancing the Fire Department’s response time to calls. City of South San Francisco Printed on 4/2/2020Page 1 of 2 powered by Legistar™ File #:20-187 Agenda Date:4/8/2020 Version:1 Item #:6. CONCLUSION Staff recommends acceptance of the project as complete.Upon acceptance,a Notice of Completion will be filed with the County of San Mateo Recorder’s office.At the end of the 30 day lien period,the retention funds will be released to the contractor after the City receives one-year guaranty bond. City of South San Francisco Printed on 4/2/2020Page 2 of 2 powered by Legistar™ 4/8/2020 1 FIRE STATION 64 DORMITORY AND BATHROOM REMODEL PROJECT APRIL 8, 2020 Fire Station 64 – Dormitory and Bathroom Remodel Project AGENDA •Project Overview •Cost •Questions Government Code Section 54957.5 SB 343 Agenda: 4/8/2020 Item #6 4/8/2020 2 Fire Station 64 – Dormitory and Bathroom Remodel Project FIRE STATION 64 Fire Station 64 – Dormitory and Bathroom Remodel Project PROJECT OVERVIEW •Convert existing shared Dormitory and Locker Room to 6 individual Dorms and 3 Bathrooms •Upgrade Captain’s Dorm •Upgrade Public Restroom •New Exercise Room •New Turnout Storage Room 4/8/2020 3 Fire Station 64 – Dormitory and Bathroom Remodel Project BEFORE Fire Station 64 – Dormitory and Bathroom Remodel Project PROGRESS PHOTOS 4/8/2020 4 Fire Station 64 – Dormitory and Bathroom Remodel Project AFTER Fire Station 64 – Dormitory and Bathroom Remodel Project CONSTRUCTION COST The total construction cost incurred to date for the project is summarized as follows: Projected Actual Agbayani Construction Corporation Contract $992,000.00 $992,000.00 Construction Contingency (25%) $248,000.00 $184,935.01 Construction Management/Administration (10%) $100,000.00 $108,974.86 Total Project Budget $1,340,000.00 $1,285,909.87 4/8/2020 5 Fire Station 64 – Dormitory and Bathroom Remodel Project QUESTIONS? City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:20-246 Agenda Date:4/8/2020 Version:1 Item #:7. Report regarding a Resolution approving budget amendment 20.039 appropriating $220,000 in the City of South San Francisco’s Low and Moderate Income Housing Fund in Fiscal Year 2019-2020 for Emergency Rental Assistance for South San Francisco residents facing financial hardship due to the COVID-19 pandemic and $22,000 for associated administration (Nell Selander,Deputy Director,Economic &Community Development Department) RECOMMENDATION Staff recommend that the City Council adopt a Resolution approving budget amendment 20.039 appropriating $220,000 in the City of South San Francisco’s Low and Moderate Income Housing Fund in Fiscal Year 2019- 2020 for Emergency Rental Assistance for South San Francisco residents facing financial hardship due to the COVID-19 pandemic and $22,000 for associated administration. BACKGROUND/DISCUSSION On March 12,2020,due to an escalating increase in the number of cases of COVID-19 in San Mateo County, City Council adopted a resolution proclaiming a local State of Emergency related to COVID-19 under South San Francisco Municipal Code Chapter 2.72.Shortly thereafter,on March 16,2020,six Bay Area counties, including San Mateo County,took a unified step to slow the spread of COVID-19 and preserve critical health care capacity across the region by issuing a legal order directing their respective residents to shelter at home for three weeks beginning March 17,2020 (“Shelter in Place Order”).Likewise,school districts across the region have closed to in-person instruction and will remain closed through May 1,2020.The San Mateo County Health Officer may extend the duration of the Shelter in Place Order. The Shelter in Place order defines a number of essential services (e.g.,medical offices,groceries,and restaurants operating takeout or delivery only)that may continue to operate.However,all businesses not deemed essential -including most retail and industrial uses -have temporarily closed or significantly reduced operations as a result of this Shelter in Place Order.This has led to reduction in worker hours and layoffs on an unprecedented scale.The week ending in March 21,2020 saw 3.28 million new unemployment claims,the largest number since the Department of Labor started tracking the data in 1967 -beating the previous record by almost five times. Previously, the record high was 695,000 new claims in the week ending October 2, 1982. While Statewide and County moratoria on residential evictions will protect tenants from the immediate threat of homelessness during this crisis,tenants facing a loss of income and inability to pay rent will still have to pay past-due rent when the crisis has passed. YMCA Program YMCA is designated by San Mateo County as the core service provider for South San Francisco and City of South San Francisco Printed on 4/2/2020Page 1 of 3 powered by Legistar™ File #:20-246 Agenda Date:4/8/2020 Version:1 Item #:7. YMCA is designated by San Mateo County as the core service provider for South San Francisco and administers an emergency rental assistance program for South San Francisco tenants facing financial crises. Earlier this year,the City committed $30,000 to augment YMCA’s existing emergency rental assistance program,as they frequently exhaust funds at the end of the fiscal and calendar years.These funds were appropriated from the City’s Low and Moderate Income Housing Fund (Fund 241). Staff have begun discussions with YMCA to expand the rental assistance program for the purposes of supporting households impacted by COVID-19.YMCA is willing and able to administer the program and is requesting a modest administrative fee to rehire hourly employees to help with the expanded program.Staff supports this request,as YMCA will be responsible for fielding inquiries into the program,qualifying households,documenting need,and providing the City with reports and documentation needed to quickly and efficiently administer this aid. Although program guidelines will continue to be refined over the coming weeks,staff recommends the following requirements for the program as a starting point. ·Households earning up to 80%of the area median income would qualify.For a single household,that is $90,320 annually. For a household of four, that is $128,960 annually. ·Tenants seeking rental assistance will have to demonstrate a reduction in income due to COVID-19. This could be a direct impact,like illness,but could also be indirect,such as having to reduce work hours to care for a child whose school is closed or a layoff due to a Shelter in Place order. ·Initial payments to landlords will be for one and a half months rent.The intent with providing one and a half months rent is to:alleviate stress and anxiety for tenants;provide assurance to landlords that rent will be paid,at least in part,through the duration of the eviction moratorium;and provide tenants an opportunity to find new work and/or file unemployment in order to begin paying rent again. ·The program will have a cap on the amount of assistance a given household can receive.This is critical to ensure as many households as possible are assisted.Staff are working with the YMCA to refine a tiered system that will take into account housing type and/or household size,so that a two person household living in a one-bedroom has a lower cap than a six person household living in a three- bedroom. ·Households will be required to pay what they can,as is required by the San Mateo County eviction moratorium.For example,if a household could afford 20%of the rent,the program would pay for the remaining 80%. Fund 241 The housing assets of the City’s former Redevelopment Agency were transferred to the City as the Housing Successor Agency following the demise of redevelopment agencies in 2012.These assets are held in Fund 241, City of South San Francisco Printed on 4/2/2020Page 2 of 3 powered by Legistar™ File #:20-246 Agenda Date:4/8/2020 Version:1 Item #:7. Successor Agency following the demise of redevelopment agencies in 2012.These assets are held in Fund 241, which is governed by California State Senate Bill (“SB”)341 and subsequent legislation.SB 341 allows the City to spend up to $250,000 annually from Fund 241 on homeless prevention and rapid rehousing.Emergency rental assistance is a homeless prevention tool that qualifies for expenditures under this $250,000 set-aside. By approving budget amendment 20.039,the City would be committing an additional $220,000 for emergency rental assistance from Fund 241 for a total commitment of $250,000,the annual maximum currently allowed by State law.Additionally,SB 341 allows cities to spend up to $200,000 annually on administrative expenses.By approving budget amendment 20.039,the City would be committing $22,000 for an administrative fee to YMCA from Fund 241. The average payment made to a South San Francisco household through YMCA’s rental assistance program is roughly $2,500.Assuming this new program covers the first month and a half of rent that would be a per- household assistance payment of approximately $3,750.At this level of assistance,58 households could be assisted with this initial appropriation. FISCAL IMPACT Approval of budget amendment 20.039 will appropriate $253,000 from Fund 241,$220,000 for rental assistance and $22,000 for administrative expenses.The unencumbered cash balance of Fund 241 as of March 30, 2020 is $2.6 million. This appropriation will have no impact on the General Fund. RELATIONSHIP TO STRATEGIC PLAN Renter protection measures address the following Strategic Plan area:Strategic Plan Priority Area #2 Quality of Life, Initiative 2.3 - Promote a balanced mix of housing options in South San Francisco. CONCLUSION Staff recommend that the City Council adopt a Resolution approving budget amendment 20.039 appropriating $220,000 in the City of South San Francisco’s Low and Moderate Income Housing Fund in Fiscal Year 2019- 2020 for Emergency Rental Assistance for South San Francisco residents facing financial hardship due to the COVID-19 pandemic and $22,000 for associated administration. City of South San Francisco Printed on 4/2/2020Page 3 of 3 powered by Legistar™ 4/8/2020 1 Additional Rental Assistance Appropriation City Council April 8, 2020 What is rental assistance? One-time assistance for households facing financial hardship Typically used to pay back rent or security deposit Intended to prevent homelessness 2 Government Code Section 54957.5 SB 343 Agenda: 4/8/2020 Item #7 4/8/2020 2 Current rental assistance program YMCA administers program for north San Mateo County In the past year: 120 SSF households received financial assistance from YMCA 40 more SSF households did not meet YMCA’s criteria and were referred to other agencies 3 Current rental assistance program Earlier this year, City committed $30,000 as funding of last resort If SSF client does not qualify for other funding, YMCA will dip into City funding 4 4/8/2020 3 Funding source Housing Successor Fund (Fund 241) $2.6 million cash balance Fund 241 governed by State law Annual limits: $250,000 on homeless prevention $200,000 on administration 5 Specific challenges due to COVID-19 San Mateo County issued Shelter in Place Order on March 16th Now extended through May 3rd Many businesses have closed or limited operations, leading to lay offs or reductions in pay Demand for rental assistance will outpace existing funding 6 4/8/2020 4 Specific challenges due to COVID-19 County moratorium on residential evictions will keep people housed Some unintended consequences: Some tenants will never earn enough to repay back rent, leading to evictions after the crisis passes Smaller landlords with lower income tenants will see significant reduction in their incomes 7 Additional rental assistance Increasing funding for rental assistance will alleviate some COVID- 19 specific challenges: Reduce stress and burden on low income families Provide income to landlords who would otherwise see shortfalls 8 4/8/2020 5 Staff recommend Appropriating $242,000 in FY 19-20 $220,000 for rental assistance $22,000 for administrative expenses to support YMCA’s substantial program expansion Will serve approx. 60 households 9 Program framework Households earning up to 80% AMI Tenants demonstrate reduction in income due to COVID-19 Tenants pay what they can Initial payment of 1.5 months rent Cap on max assistance based on housing type or household size 10 4/8/2020 6 Process Amend MOU with YMCA Continue to refer SSF residents in need of assistance to YMCA YMCA will qualify residents and deliver approval packets to the City City will cut assistance checks directly to landlords 11 QUESTIONS? 12 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:20-247 Agenda Date:4/8/2020 Version:1 Item #:7a. Resolution approving budget amendment 20.039 appropriating $220,000 in the City of South San Francisco’s Low and Moderate Income Housing Fund in Fiscal Year 2019-2020 for Emergency Rental Assistance for South San Francisco residents facing financial hardship due to the COVID-19 pandemic and $22,000 for associated administration WHEREAS,on March 12,2020,due to an escalating increase in the number of cases of the Novel Coronavirus (COVID-19)in San Mateo County,the City Council of the City of South San Francisco adopted a resolution proclaiming a local State of Emergency related to COVID-19 pursuant to its powers under state law and South San Francisco Municipal Code Chapter 2.72; and WHEREAS,on March 16,2020,six Bay Area counties,including San Mateo County,took a unified step to slow the spread of COVID-19 and preserve critical health care capacity across the region by issuing a legal order directing their respective residents to shelter at home for three weeks beginning March 17,2020 (“Shelter in Place Order”); and WHEREAS,the Shelter in Place Order defines a number of essential services (e.g.,medical offices,groceries, and restaurants operating takeout or delivery only) that may continue operations; and WHEREAS,all businesses not deemed essential -including most retail and industrial uses -have temporarily closed or significantly reduced operations as a result of this Shelter in Place Order; and WHEREAS, this has led to reduction in worker hours and layoffs on an unprecedented scale; and, WHEREAS,the week ending in March 21,2020 saw 3.28 million new unemployment claims,the largest number since the Department of Labor started tracking the data in 1967 -beating the previous record by almost five times; and WHEREAS,while Statewide and County moratoria on residential evictions will protect tenants from the immediate threat of homelessness during this crisis,tenants facing a loss of income and inability to pay rent will still have to pay past-due rent when the crisis has passed; and WHEREAS,YMCA is designated by San Mateo County as the core service provider for South San Francisco and administers emergency rental assistance program for South San Francisco tenants facing financial crises; and City of South San Francisco Printed on 5/8/2020Page 1 of 2 powered by Legistar™ File #:20-247 Agenda Date:4/8/2020 Version:1 Item #:7a. WHEREAS,staff have begun discussions with YMCA to expand the rental assistance program for the purposes of supporting households impacted by COVID-19; and WHEREAS,YMCA is willing and able to administer the program and is requesting a modest administrative fee to rehire hourly employees to help with the expanded program; and WHEREAS,the housing assets of the former South San Francisco Redevelopment Agency were transferred to the City as the Housing Successor Agency following the dissolution of redevelopment agencies in 2012; and WHEREAS,these housing assets are held in Fund 241,which is governed by California State Senate Bill (“SB”) 341 and subsequent legislation; and WHEREAS,SB 341 allows the City to spend up to $250,000 annually from Fund 241 on homeless prevention and rapid rehousing and $200,000 on administrative expenses; and WHEREAS,in February 2020 the City Council authorized the expenditure of $30,000 from Fund 241 for rental assistance leaving $220,000 for additional rental assistance in Fiscal Year 2019-2020; and WHEREAS, the unencumbered cash balance of Fund 241 as of March 30, 2020 is $2.6 million; and WHEREAS,the City Council wishes to appropriate $220,000 for rental assistance associated with impacts from COVID-19 and $22,000 for associated administrative expenses; and NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council does hereby approve budget amendment 20.039 appropriating $220,000 for emergency rental assistance and $22,000 for associated administrative expenses from Fund 241. **** City of South San Francisco Printed on 5/8/2020Page 2 of 2 powered by Legistar™ City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:20-250 Agenda Date:4/8/2020 Version:1 Item #:8. Report regarding an urgency ordinance of the City of South San Francisco enacting a temporary moratorium on small business and nonprofit entity evictions due to nonpayment of rent where the failure to pay rent results from income loss resulting from the Novel Coronavirus (COVID-19) (Sky Woodruff, City Attorney) RECOMMENDATION It is recommended City Council waive reading,introduce by title,and adopt an urgency ordinance of the City of South San Francisco enacting a temporary moratorium on small business and nonprofit entity evictions due to nonpayment of rent where the failure to pay rent results from income loss resulting from the Novel Coronavirus (COVID-19).Approval of an urgency ordinance requires a four-fifths vote. BACKGROUND International,national,state,and local health and governmental authorities are responding to an outbreak of respiratory disease caused by a novel coronavirus named “SARS-CoV-2,”and the disease it causes has been named “coronavirus disease 2019,”abbreviated COVID-19,(“COVID-19”).On January 30,2020,the World Health Organization (“WHO”)declared COVID-19 a Public Health Emergency of International Concern,and on January 31,2020,the United States Secretary of Health and Human Services declared a Public Health Emergency. On March 2,2020,the County of San Mateo activated its Emergency Operations Center (EOC)to support the local County Health response to COVID-19.On March 3,2020,the County of San Mateo Director of Emergency Services issued a proclamation Declaring the Existence of a Local Emergency in the County and the County of San Mateo Health Officer issued a Declaration of Local Health Emergency Regarding COVID- 19.On March 4,2020,California Governor Gavin Newsom declared a State of Emergency to make additional resources available,formalize emergency actions already underway across multiple state agencies and departments, and help the state prepare for a broader spread of COVID-19. On March 10,2020,the Board of Supervisors of the County of San Mateo adopted a resolution Ratifying and Extending the Declaration of a Local Health Emergency.On March 12,2020,due to an escalating increase in the number of cases in San Mateo County,the City Council of the City of South San Francisco adopted a resolution proclaiming a local State of Emergency related to the Novel Coronavirus 2019 (COVID-19)under South San Francisco Municipal Code Chapter 2.72. On March 16,2020,seven health officers within six Bay Area counties,including San Mateo County,took a unified step to slow the spread of novel coronavirus (COVID-19)and preserve critical health care capacity across the region by issuing a legal order directing their respective residents to shelter at home for three weeks beginning March 17,2020.The order limits activity,travel and business functions to only the most essential needs.The guidance comes after substantial input from the U.S.Centers for Disease Control and Prevention (CDC) and best practices from other health officials around the world. On March 16,2020,California Governor Gavin Newsom issued Executive Order N-28-20 ordering suspension of any provision of state law that would preempt or otherwise restrict a local government’s exercise of its police power to impose substantive limitations on residential or commercial evictions related to COVID-19.TheCity of South San Francisco Printed on 4/2/2020Page 1 of 4 powered by Legistar™ File #:20-250 Agenda Date:4/8/2020 Version:1 Item #:8. power to impose substantive limitations on residential or commercial evictions related to COVID-19.The order further suspended statutory causes of action for judicial foreclosure,including Code of Civil Procedure section 725a et seq.;the statutory cause of action for unlawful detainer,Code of Civil Procedure section 1161 et seq.;and any other statutory cause of action that could be used to evict or otherwise eject a residential or commercial tenant or occupant of residential real property after foreclosure. On March 24,2020,the County of San Mateo adopted an Emergency Regulation establishing a temporary, countywide moratorium on evictions for non-payment of rent by residential tenants directly impacted by the COVID-19 pandemic.On March 27,2020,California Governor Gavin Newsom issued Executive Order N-37- 20,extending the deadline specified in Civil Code of Procedure section 1167 for a period of 60 days for any residential tenant who is served,while the Order is in effect,with an eviction notice for nonpayment of rent where the tenant paid rent due prior to date of the Order and the tenant notifies the landlord in writing of an inability to pay the full amount due to reasons related to COVID-19.These actions only protect tenants from residential evictions,whereas the proposed Urgency Ordinance will further address small business and nonprofit entity evictions. DISCUSSION The Shelter-In-Place orders have had an immediate economic impact in all commercial sectors of the City simultaneously.Although non-essential businesses have seen the most dramatic impact causing all operations to cease,many essential businesses that remain open have also been dramatically affected.Restaurants and food establishments,for example,are considered essential and many remain open.However,operations have had to be significantly modified by limited sales to only take-out and delivery orders.This,coupled with the drop in public demand of dining out has many restaurants anticipating large revenue losses in the months of March and April, and at least until the health orders expire. In addition,both large and smaller events across the Bay Area and in South San Francisco have all been cancelled or postponed due to the County and State’s Orders.These cancellations and postponements cause loss in revenue for the event,as well as surrounding local businesses that rely on such events to bring in patrons to their businesses.This has adversely affected the City’s hotel industry,conference and meeting spaces,and business-to-business sales that support large gatherings. Economic Impact Macro-Level Economic Forecast.Revising a forecast published March 12,UCLA Anderson Forecast economists say the U.S.economy has entered a recession,ending the expansion that began in July 2009.As the U.S.economy moved into a recession this month,it looks like California will bear a heavy share of the contraction.In 1990 it was the aerospace industry,in 2001 the tech industry,and in 2008 residential construction;each of which were sectors that California was proportionately more exposed than the rest of the nation.Now it is the turn of three more sectors with heavy concentration in the Golden State;transportation and warehousing,agriculture,and leisure and hospitality.The exposure to transportation and warehousing stems from the fact that the ports of California carry much of the goods coming in from Asia,and they are not coming in.California is a major tourist destination,particularly from Asia,and air travel has been limited across the Pacific.And agriculture,hard hit by the trade wars,now finds that there are no ships nor appropriate containers to move the latest harvest out to market.These,overlaid on a U.S.forecast of a two quarter recession,results in four quarters of job loss and three quarters of real income losses in the State. Employment is expected to contract by -0.7%in 2020 with the 2nd and 3rd quarters contracting at an annual rate of 2.6%.The unemployment rate will rise to 6.3%by the end of this year and expected to continue to City of South San Francisco Printed on 4/2/2020Page 2 of 4 powered by Legistar™ File #:20-250 Agenda Date:4/8/2020 Version:1 Item #:8. rate of 2.6%.The unemployment rate will rise to 6.3%by the end of this year and expected to continue to increase into 2021 with an average for 2021 of 6.6%.By the first quarter of 2021 of the year California is expected to lose over 280K payroll jobs with over 1/3 of those in leisure and hospitality and transportation and warehousing. The expectation is for 2021 to be a slow recovery year and 2022 a year of growth once again. Local Market Impact.The occupations of South San Francisco residents include a high share of service and production jobs,which in many ways are relatively compatible with the types of jobs found in the city.These jobs will be the most exposed during the recession.Attachment 1 includes current data for retail,industrial,and office demographics for the South San Francisco submarket. The City has created a business resources website,dedicated for COVID-19 information and programs.A business survey has been issued to create a baseline of how the economic disruption is affecting the local economy.If a commercial eviction moratorium is enacted,the City has the ability to collect data on its impact over the duration of the moratorium. Proposed Urgency Ordinance For these reasons,it is recommended that City Council adopt an uncodified urgency ordinance enacting a temporary moratorium on evictions for nonpayment of rent by small business and nonprofit entities impacted by COVID-19.The proposed urgency ordinance includes provisions to prevent evictions if the small business or nonprofit entity is able to show an inability to pay rent due to circumstances related to COVID-19.Such circumstances include: ·Being sick with COVID-19, or caring for a household or family member who is sick with COVID-19; ·Compliance with a recommendation or order from a government health authority to close non-essential business; ·Income reduction resulting from business closure or other economic or employer impacts; ·Extraordinary out-of-pocket medical expenses; or ·Child care needs arising from school closures. If adopted,the ordinance would require the small business or nonprofit entity repay any back due rent no later than six (6)months following the expiration of the ordinance.Additionally,the small business or nonprofit entity could use the ordinance as an affirmative defense in an unlawful detainer action.The ordinance,if adopted, would remain in effect until May 31, 2020 unless extended by City Council. FISCAL IMPACT Approval of the staff recommendations will have no direct fiscal impact on the City's General Fund. ENVIRONMENTAL REVIEW This Urgency Ordinance is exempt from the California Environmental Quality Act (Public Resources Code §§ 21000 et seq.,“CEQA,”and 14 Cal.Code Reg.§§15000 et seq.,“CEQA Guidelines”)under Section 15061(b) (3) of the CEQA Guidelines. CONCLUSION It is recommended City Council waive reading,introduce by title,and adopt an urgency ordinance of the City of South San Francisco enacting a temporary moratorium on small business and nonprofit entity evictions due to nonpayment of rent where the failure to pay rent results from income loss resulting from the Novel Coronavirus (COVID-19).Approval of an urgency ordinance requires a four-fifths vote. City of South San Francisco Printed on 4/2/2020Page 3 of 4 powered by Legistar™ File #:20-250 Agenda Date:4/8/2020 Version:1 Item #:8. Attachments: 1.South San Francisco Vacancy and Rental Rates by Product Type City of South San Francisco Printed on 4/2/2020Page 4 of 4 powered by Legistar™ South San Francisco Vacancy and Rental Rates by Product Type Retail Sector Type Total Square feet Vacancy Rate Market Rent/SF Neighborhood Center 484,041 0.7% $29.03 Strip Center 191,678 0.5% $28.45 General Retail 2,066,813 1.6% $29.63 Total 2,742,532 1.3% $29.44 Industrial Type Total Square feet Vacancy Rate Market Rent/SF Logistics 11,850,102 7.0% $15.56 Specialized Industrial 3,783,043 2.3% $15.49 Flex 5,697,081 7.7% $33.57 Total 21,330,226 6.4% $21.50 Office Type Total Square feet Vacancy Rate Market Rent/SF 4 & 5 Star 5,226,939 5.6% $58.84 3 Star 1,280,675 4.4% $53.86 1 & 2 Star 614,285 2.6% $38.48 Total 7,121,899 5.1% $56.33 1 Avila, Cindy From:Jonathan Fearn <[email protected]> Sent:Tuesday, April 7, 2020 4:41 PM To:All at City Clerk's Office Cc:Bill Deering; Patrick C. Fearn Subject:FW: Eviction notice Attachments:Jonathan Fearn late payment or nonpayment of rent .docx Importance:High Attn. South San Francisco City Coucil Please see the following email sent to Inez Mendez regarding threatened eviction from our place of business 203 Lawrence Avenue, South San Francisco. I'm very pleased to see the City Council will address the matter of commercial evictions of SSF small businesses tomorrow evening. Please contact me if I can provide additional information regarding our situation. Thank you Jonathan Fearn Jonathan Fearn Senior Vice President Certified Folder Display Service, Inc. [email protected] www certifiedfolder.com 650‐589‐3117 (o) 650‐222‐1377 (m) ‐‐‐‐‐‐‐‐ Original message ‐‐‐‐‐‐‐‐ From: Jonathan Fearn <[email protected]> Date: 4/7/20 4:28 PM (GMT‐08:00) To: web‐[email protected] Cc: Bill Deering <[email protected]>, "Patrick C. Fearn" <[email protected]> Subject: Eviction notice Attn: Inez Mendez Hi Inez ‐ I left an earlier voicemail regarding our commercial landlord threatening a 3 day eviction notice. Government Code Section 54957.5 SB 343 Agenda: 4/8/2020 Item #8 2 I'm Jonathan Fearn, Vice President with Certified Folder Display located at 203 Lawrence Avenue in South Francisco. We have been tenants of the Poletti family for about 25 years ‐ current landlord is Paul Poletti. We have never missed or had a late payment for more than two decades. Attached is a letter from Paul Poletti threatening the eviction action. We had reached out to him asking for some flexibility on our rent payments. Contrary to Mr. Poletti's statements we are in the process of applying for Federal financial relief and have no intent to not pay our rent or run up debts and file bankruptcy. Our company's origin dates back to 1899, started in San Francisco and has been our family business since 1961. We have third generation employees on our team and are 100% intent on keeping our business going that hundreds of folks depend on for their livelihood. I understand there is a City Council meeting tomorrow night. May I attend this meeting and perhaps discuss our situation? I hope that South San Francisco follows what other cities have done in regards to delaying commercial evictions of small businesses during this unprecedented crisis. It would a real loss if our company fails and puts many out of a job. My hope is our landlord can have flexibility in allowing us a delay in rent payment. We have paid millions of rent dollars to this family over the years and have always been faithful to our leases. I should also add that we provide SSF hotels, SFO and car rentals with local/regional tourist and visitor information via print and digital displays ‐ an important part of local attractions' marketing outreach. Thank you in advance for consideration of our situation and letting me know about the Council meeting. Best Regards, Jon Jonathan Fearn Senior Vice President Certified Folder Display Service, Inc. [email protected] www certifiedfolder.com 650‐589‐3117 (o) 650‐222‐1377 (m) Jonathan Fearn Senior Vice President Certified Folder Display Service, Inc Gentlemen, My response to Bill Deering’s Form letter dated March 30, 2020: I find it perplexing why you have not applied for a Federal loan to rescue your business? The Federal Government is literally spending hundreds of billions of dollars to rescue businesses such as yours. Literally free money! There are conditions. The money must be used to pay employees and overhead. These loans/Grants are an effort to save your business, your employee’s jobs, and the Banking System by paying your landlord so he can pay his mortgage and overhead. Your refusal to apply for these loans leads me to believe that your real intent isn’t the continuation of your business. I further speculate, your real intent is to close your business over a prolonged period, using the Pandemic as an excuse not to pay rent. Whatever your excuse not to pay your obligations is irrelevant! You signed a contract, an obligation, and I intend to hold you to it. I can tolerate a lot of things; late payment or nonpayment of rent is not one of them. The rent is due on the first, delinquent on the 10th on the 11th my attorney will start the Eviction Process. You will receive a Three-day Notice to Pay or Quit. After the 13th I will not accept your late payment for rent and we will rigorously prosecute your company’s eviction. This process will span approximately 30 days. After this time. If you have not vacated the premises the Sheriff will physically remove you from the premises and the locks will be changed. I strongly suggest that you remove your inventory within this time period. We have a contract, there’s no extraordinary times clause in your contract, your company doesn’t have the authority to make a unilateral decision using a form letter whether or not to pay the rent. If you don’t pay the rent you’re in breach of the contract! It’s that simple! I’ve lived up to my end of the contract, and I expect you to live up to yours. If you can’t pay the rent then move out! Don’t waste your time or money having your attorney write me a threatening letter. I’ve told you in great detail, without ambiguity, my intentions if you decide to breach the contract. Do not make the mistake of doubting my resolve! Paul J Poletti [email protected] 650-619-3682 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:20-251 Agenda Date:4/8/2020 Version:1 Item #:8a. Urgency ordinance of the City of South San Francisco enacting a temporary moratorium on small business and nonprofit entity evictions due to nonpayment of rent where the failure to pay rent results from income loss resulting from the Novel Coronavirus (COVID-19) WHEREAS,international,national,state,and local health and governmental authorities are responding to an outbreak of respiratory disease caused by a novel coronavirus named “SARS-CoV-2,”and the disease it causes has been named “coronavirus disease 2019,” abbreviated COVID-19, (“COVID-19”); and WHEREAS,on January 30,2020,the World Health Organization (“WHO”)declared COVID-19 a Public Health Emergency of International Concern,and on January 31,2020,the United States Secretary of Health and Human Services declared a Public Health Emergency; and WHEREAS,on March 2,2020,the County of San Mateo activated its Emergency Operations Center (EOC)to support the local County Health response to COVID-19; and WHEREAS,on March 3,2020,the County of San Mateo Director of Emergency Services issued a proclamation Declaring the Existence of a Local Emergency in the County and the County of San Mateo Health Officer issued a Declaration of Local Health Emergency Regarding Novel Coronavirus 2019 (COVID-19); and WHEREAS,on March 4,2020,California Governor Gavin Newsom declared a State of Emergency to make additional resources available,formalize emergency actions already underway across multiple state agencies and departments,and help the state prepare for a broader spread of COVID-19.The proclamation comes as the number of positive California cases rises and following one official COVID-19 death; and WHEREAS,on March 10,2020,the Board of Supervisors of the County of San Mateo adopted a resolution Ratifying and Extending the Declaration of a Local Health Emergency; and WHEREAS,on March 11,2020,the San Mateo County Health Officer issued a legal order barring unauthorized visitors and non-essential personnel from licensed skilled nursing facilities in the County; and WHEREAS,on March 12,2020,San Mateo County Health Officer issued an order prohibiting mass gatherings of 250 or more persons and as defined in the order,applicable to public and private gatherings and includes exceptions for houses of worship,museums,malls,hospital and medical facilities,and the normal operations of hotels and airports; and WHEREAS,on March 12,2020,due to an escalating increase in the number of cases in San Mateo County, under South San Francisco Municipal Code Chapter 2.72,the City Council of the City of South San Francisco adopted a resolution proclaiming a local State of Emergency related to the Novel Coronavirus 2019 (COVID- 19); and City of South San Francisco Printed on 4/13/2020Page 1 of 6 powered by Legistar™ File #:20-251 Agenda Date:4/8/2020 Version:1 Item #:8a. WHEREAS,on March 13,2020,the President of the United States of America declared a national emergency and announced that the federal government would make emergency funding available to assist state and local governments in preventing the spread of and addressing the effects of COVID-19; and WHEREAS,on March 13,2020,San Mateo County Health Officer issued a School Operations Modification Order requiring all schools to dismiss students from regular attendance; and WHEREAS,on March 14,2020,San Mateo County Health Officer issued an update regarding the legal order prohibiting mass gatherings,further limiting public or private gatherings of more than 50 persons as defined in the order; and WHEREAS,on March 16,2020,seven health officers within six Bay Area counties,including San Mateo County,took a unified step to slow the spread of novel coronavirus (COVID-19)and preserve critical health care capacity across the region by issuing a legal order directing their respective residents to shelter at home for three weeks beginning March 17,2020.The order limits activity,travel and business functions to only the most essential needs.The guidance comes after substantial input from the U.S.Centers for Disease Control and Prevention (CDC) and best practices from other health officials around the world; and WHEREAS,on March 16,2020,California Governor Gavin Newsom issued Executive Order N-28-20 ordering waiver of time limitations set forth in Penal Code section 396(f)concerning protections against residential evictions,and suspending any provision of state law that would preempt or otherwise restrict a local government’s exercise of its police power to impose substantive limitations on residential or commercial evictions related to COVID-19.The order further suspended statutory causes of action for judicial foreclosure, including Code of Civil Procedure section 725a et seq.;the statutory cause of action for unlawful detainer, Code of Civil Procedure section 1161 et seq.;and any other statutory cause of action that could be used to evict or otherwise eject a residential or commercial tenant or occupant of residential real property after foreclosure; and WHEREAS,both large and smaller events across the Bay Area and in South San Francisco are cancelling or being postponed due to the County’s and State’s Orders and recommendations at all levels of government to cancel large gatherings amid concerns over spread of the virus.These cancellations and postponements cause loss in revenue for the event,as well as surrounding local businesses that rely on such events to bring in patrons to their businesses; and WHEREAS,as a result of the public health emergency,the precautions recommended by state and county health officers,and in compliance with orders issued by those officers,many residents and businesses in South San Francisco have experienced or expect soon to experience sudden and unexpected income loss; and WHEREAS,the California Constitution,Article XI,Section 7,provides cities and counties with the authority to enact ordinances to protect the health, safety, and general welfare, of their citizens; and WHEREAS,California Government Code Section 36937 authorizes the City Council to introduce and adopt an ordinance it declares to be necessary as an emergency measure to preserve the public peace,health,and safety at one and the same meeting if passed by at least four-fifths affirmative votes; and WHEREAS,this Ordinance is a temporary moratorium intended to promote stability and fairness within the rental market in the City during the COVID-19 pandemic outbreak,and to prevent avoidable evictions thereby City of South San Francisco Printed on 4/13/2020Page 2 of 6 powered by Legistar™ File #:20-251 Agenda Date:4/8/2020 Version:1 Item #:8a. rental market in the City during the COVID-19 pandemic outbreak,and to prevent avoidable evictions thereby serving the public peace, health, safety, and public welfare; and WHEREAS,further economic impacts are anticipated as a result of COVID-19-related workplace closures, childcare expenditures due to school closures,health care expenses,labor shortages,and other expenditures stemming from compliance with emergency orders, leaving small business tenants vulnerable to evictions; and WHEREAS,for the purposes of this Ordinance,a “small business”is defined as a business entity with gross receipts of less than $25 million per year.For the purposes of this Ordinance,a “nonprofit”is an organization that is registered as a California public benefit nonprofit corporation or has received federal tax exemption under Internal Revenue Code section 501(c)(3). WHEREAS,these economic impacts may inhibit small businesses from fulfilling their financial obligations, including rent and public utility payments such as water, sewer, and solid waste collection charges; and WHEREAS,displacement of small businesses and nonprofits through eviction further destabilizes the local economy by causing non-essential businesses to cease operating and forcing the termination of employees who would otherwise be able to work,deepening the negative feedback loop of financial consequences of the COVD-19 pandemic; and WHEREAS,on March 24,2020,the County of San Mateo adopted an Emergency Regulation establishing a temporary,countywide moratorium on evictions for non-payment of rent by residential tenants directly impacted by the COVID-19 pandemic; and WHEREAS,on March 27,2020,California Governor Gavin Newsom issued Executive Order N-37-20, extending the deadline specified in Civil Code of Procedure section 1167 for a period of 60 days for any residential tenant who is served,while the Order is in effect,with an eviction notice for nonpayment of rent where the tenant paid rent due prior to date of the Order and the tenant notifies the landlord in writing of an inability to pay the full amount due to reasons related to COVID-19; and WHEREAS,small businesses and nonprofits in South San Francisco are greatly affected by COVID-19 economic impacts and thus vulnerable to threat of eviction,which negatively impacts the local economy by laying off employees and ceasing to provide essential services to residents of the City;negatively impacting local health by forcing persons out of their shelter-in-place locations to prepare for business eviction,increasing potential COVID-19 exposure;and reducing the number of retail and commercial spaces available to provide essential services,also increasing potential COVID-19 exposure as a result of less retail and commercial spaces available for residents and thus less space available for social distancing; and WHEREAS,the City Council finds and determines that regulating the relations between landlords and tenants is essential to preventing the spread of COVID-19 in the City and thereby serve the public peace,health,and safety; and WHEREAS,an urgency ordinance that is effective immediately is necessary to avoid the immediate threat to public peace,health,and safety as failure to adopt this urgency ordinance would result in the avoidable displacement or exposure to COVID-19 of the City’s small businesses and to the amplification of the factors that lead to the spread of the virus, as described in these Recitals. NOW,THEREFORE,THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO,DOES City of South San Francisco Printed on 4/13/2020Page 3 of 6 powered by Legistar™ File #:20-251 Agenda Date:4/8/2020 Version:1 Item #:8a. NOW,THEREFORE,THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO,DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1.Findings The City Council of the City of South San Francisco finds that all Recitals are true and correct and incorporated herein by reference.The provisions of the Governor’s issued Executive Order N-28-20 and Executive Order N- 37-20, including all recitals, are incorporated herein as if fully set forth. SECTION 2.Urgency Findings. The City Council of the City of South San Francisco hereby finds that there is a current and immediate threat to the public health,safety and/or welfare and a need for immediate preservation of the public peace,health,or safety that warrants this urgency measure,which finding is based upon the facts stated in the Recitals above, and in the staff report dated April 8,2020,as well any oral and written testimony at the April 8,2020 City Council meeting. This Ordinance and any moratorium that may be established thereunder is declared by the City Council to be an urgency measure necessary for the immediate preservation of the public peace,health or safety.The facts constituting such urgency are all of those certain facts set forth and referenced in this Ordinance and the entirety of the record before the City Council. SECTION 3.Moratorium on Eviction of Small Businesses and Nonprofits for Nonpayment of Rent during the COVID-19 Emergency. A temporary moratorium on eviction for non-payment of rent by small business and nonprofit entity tenants impacted by the COVID-19 crisis is imposed as follows: (a)During the term of this Ordinance, no landlord shall endeavor to evict a small business or nonprofit entity tenant in either of the following situations: (1) for nonpayment of rent if the tenant demonstrates that the tenant is unable to pay rent due to financial impacts related to COVID-19 or (2) for a no-fault eviction unless necessary for the health and safety of tenants, neighbors, or the landlord. (b)Endeavors to evict that are prohibited by this Ordinance include issuance of a three-day notice to pay rent or quit or a notice of no-fault termination of tenancy after the effective date of this Ordinance, or attempting to enforce a termination of tenancy through an unlawful detainer filing based on any notice issued but not yet expired prior to the effective date of this Ordinance. (c)Prior to taking any action, during the term of this Ordinance, to endeavor to evict a tenant for non- payment of rent or under any circumstance that constitutes a no-fault termination of tenancy, the landlord must first provide the affected tenant or tenants with: 1) written notice of this Ordinance; (2) the amount of rent to which the landlord is legally entitled pursuant to any written or oral agreement and under the provisions of State or local law; (3) that this rent is due unless the tenant promptly establishes in writing to the Landlord that the amount of rent due qualifies as a Delayed Payment, as defined in this Ordinance; and (4) that the notice from the tenant to the landlord referenced in Section (d) regarding Delayed Payment must be provided to the landlord as soon as reasonably practicable thereafter. (d)For purposes of this Ordinance, notice provided by a tenant to the landlord within fourteen (14) days from the date rent is due or from the date of receipt of the landlord’s written notice required pursuant to City of South San Francisco Printed on 4/13/2020Page 4 of 6 powered by Legistar™ File #:20-251 Agenda Date:4/8/2020 Version:1 Item #:8a. subsection (c), whichever is later, shall be presumed to have been provided within a reasonable timeframe, provided that notices provided on a timeframe greater than fourteen (14) days may be deemed reasonable, depending on the totality of the circumstances. (e)Nothing in this Ordinance shall relieve the tenant of the obligation to pay rent as it comes due after this Ordinance expires, or of the obligation for the unpaid rent that is a Delayed Payment, payment of which the landlord may seek after this Ordinance expires. However, with respect to any Delayed Payment covered by this Ordinance, a tenant shall have up to one hundred and eighty (180) days after this Ordinance expires to tender the full amount of the Delayed Payment, before the tenant shall be deemed to be in default of rent payment obligations. The tenant shall tender the full amount of the Delayed Payment in three months (90 days) if able to do so; however, if the tenant remains unable to tender the full amount of the Delayed Payment for the reasons set forth in Section (g), the tenant may provide the landlord another written notice and additional documentation to support that claim and thereby extend the payment date an additional month (30 days). The tenant may provide additional written notices and documentation each month (every 30 days) to further extend the deadline, but under no circumstances shall the landlord be required to extend the deadline beyond one hundred and eighty (180) days after this Ordinance expires. Further, a landlord may not charge or collect a late fee for a Delayed Payment as defined in this Ordinance. Any three-day notices to pay or quit or no-fault termination of tenancy notices served prior the effective date of this Ordinance but not yet expired are automatically deemed served the day following the expiration of this Ordinance. (f)An action taken by a landlord to evict a tenant for a Delayed Payment shall not be considered a violation of this Ordinance where the action was taken before the tenant provided the landlord notice of the tenant’s lost income and inability to pay full rent on the due date and provided documentation to the landlord in accordance with this Ordinance, provided that the landlord ceases further endeavors to evict the tenant on this basis upon receiving the notice and documentation from the tenant required in this Ordinance. (g)(1) For purposes of this Ordinance, “Delayed Payment” includes a payment made after the time set forth in the rental agreement between a landlord and a tenant or tenants or as otherwise agreed between the parties as a result of “financial impacts related to COVID-19” including, but are not limited to, loss of income due to any of the following: (1) being sick with COVID-19, or caring for a household or family member who is sick with COVID-19; (2) lay-off, loss of hours, reduction in staff reporting to work, reduction in opening hours, reduction in consumer demand, or other income reduction resulting from business closure or other economic or employer impacts of COVID-19; (3) compliance with a recommendation or order from a government health authority to close non-essential business, stay home, self-quarantine, or avoid congregating with others during the state of emergency; (4) extraordinary out-of-pocket medical expenses; or (5) child care needs arising from school closures related to COVID-19. (2) To qualify as a “Delayed Payment” under this Ordinance, a tenant must notify the landlord in writing within the time frame set forth in Section (d) above of the tenant’s lost income and inability to pay full rent on the due date and provide documentation to support the claim within that same time frame. For purposes of this section, “in writing” may include e-mail or text communications to a landlord or the landlord’s representative with whom the tenant has previously corresponded by email or text. Any medical or financial information provided to the landlord shall be held in confidence, and only used for evaluating the tenant’s claim. (3) Courts shall have the sole discretion to determine in an unlawful detainer action or other eviction action whether the tenant’s written notice and documentation are sufficient to show a qualifying Delayed City of South San Francisco Printed on 4/13/2020Page 5 of 6 powered by Legistar™ File #:20-251 Agenda Date:4/8/2020 Version:1 Item #:8a. Payment. (h)For purposes of this Ordinance, “no-fault eviction” refers to any eviction for which the notice to terminate tenancy is not based on alleged fault by the tenant, including but not limited to eviction notices served pursuant to Code of Civil Procedure sections 1161(1) or 1161(5). (i)For the purposes of this Ordinance, a “small business” is a business entity with gross receipts of less than $25 million per year. For the purposes of this Ordinance, a “nonprofit” is an organization that is registered as a California public benefit nonprofit corporation or has received federal tax exemption under Internal Revenue Code section 501(c)(3). (j)This Ordinance provides an affirmative defense to eviction in the event that an unlawful detainer action is commenced in violation of this Ordinance. In addition, a knowing violation of this Ordinance shall be a misdemeanor and in the event of a knowing violation of this Ordinance, an aggrieved tenant may institute a civil proceeding for injunctive relief, money damages of not less than three times actual damages (including damages for mental or emotional distress as specified below), and any other relief the Court deems appropriate. The prevailing party in such civil proceeding(s) shall be entitled to reasonable attorney’s fees and costs pursuant to court order. The remedies available under this section shall be in addition to any existing remedies which may be available to the tenant under local, state or federal law. (k)The limitations on evictions imposed pursuant to this Ordinance shall apply to the statutory cause of action for judicial foreclosure and any other statutory cause of action that could be used to evict or otherwise eject a small business or nonprofit entity after foreclosure, consistent with and as suspended by Executive Order N-28-20. SECTION 4.Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of this Ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. SECTION 5.Effective Date and Term. This Urgency Ordinance shall become effectively immediate upon its adoption pursuant to California Government Code Section 36937 and shall remain in effect until May 31, 2020, unless further extended by the City Council before that date. SECTION 6.Compliance with the California Environmental Quality Act. The City Council hereby finds approval of this Ordinance is exempt from the California Environmental Quality Act (Public Resources Code §§21000 et seq.,“CEQA,”and 14 Cal.Code Reg.§§15000 et seq.,“CEQA Guidelines”) under Section 15061(b)(3) of the CEQA Guidelines. SECTION 7.Publication. Pursuant to the provisions of Government Code Section 36933,a summary of this Ordinance shall be prepared by the City Attorney.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. ***** City of South San Francisco Printed on 4/13/2020Page 6 of 6 powered by Legistar™