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HomeMy WebLinkAbout2006-07-26 e-packet AGENDA REDEVELOPMENT AGENCY CITY OF SOUTH SAN FRANCISCO REGULAR MEETING MUNICIP AL SERVICE BUILDING COMMUNITY ROOM WEDNESDAY, JULY 26,2006 7:00 P.M. PEOPLE OF SOUTH SAN FRANCISCO You are invited to offer your suggestions. In order that you may know our method of conducting Agency business, we proceed as follows: The regular meetings of the Redevelopment Agency are held on the second and fourth Wednesday of each month at 7:00 p.m. in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California. Public Comment: For those wishing to address the Board on any Agenda or non-Agendized item, please complete a Speaker Card located at the entrance to the Community Room and submit it to the Clerk. Please be sure to indicate the Agenda Item # you wish to address or the topic of your public comment. California law prevents Redevelopment Agency from taking action on any item not on the Agenda (except in emergency circumstances ). Your question or problem may be referred to staff for investigation and/or action where appropriate or the matter may be placed on a future Agenda for more comprehensive action or a report. When your name is called, please come to the podium, state your name and address for the Minutes. COMMENTS ARE LIMITED TO THREE (3) MINUTES PER SPEAKER. Thank you for your cooperation. The Clerk will read successively the items of business appearing on the Agenda. As she completes reading an item, it will be ready for Board action. JOSEPH A. FERNEKES Chair RICHARD A. GARBARINO, SR. Vice Chair MARK N. ADDIEGO Boardmember PEDRO GONZALEZ Boardmember KARYL MATSUMOTO Boardmember RICHARD BATTAGLIA Investment Officer SYLVIAM. PAYNE Clerk BARRY M. NAGEL Executive Director STEVEN T. MATIAS Counsel PLEASE SILENCE CELL PHONES AND PAGERS HEARING ASSISTANCE EQUIPMENT IS AVAILABLE FOR USE BY THE HEARING-IMPAIRED AT REDEVELOPMENT AGENCY MEETINGS CALL TO ORDER ROLL CALL AGENDA REVIEW PUBLIC COMMENTS CONSENT CALENDAR 1. Motion to approve the minutes of July 12, 2006 2. Motion to confirm expense claims of July 26, 2006 3. Resolution rejecting bid for the 380 AHa Vista rehabilitation project 4. Resolution amending the Redevelopment Agency By-Laws, Section 3.02, Regular Meeting CLOSED SESSION 5. Pursuant to Government Code section 54956.8 real property negotiations related to 317- 321 Commercial Avenue; Agency Negotiator: Assistant Director Van Duyn ADJOURNMENT REGULAR REDEVELOPMENT AGENCY MEETING AGENDA JULY 26, 2006 PAGE 2 - ~'t\\ S:1N S ~ . ~~\ o 0,1 :>-t ~I t:l C') v c C'4lIFO-p..~\~ Redevelopment Agency Staff Report RDA AGENDA ITEM #3 DATE: TO: FROM: SUBJECT: July 26, 2006 Redevelopment Agency Board Marty VanDuyn, Assistant Executive Director 380 ALTA VISTA DRIVE REHABILITATION PROJECT RECOMMENDATION It is recommended that the Redevelopment Agency adopt a Resolution rejecting the bid received for the proposed 380 Alta Vista Drive Rehabilitation Project No. 51-1323-0451; Engineering File No. PB-06-3; Bid No. 2446. BACKGROUND/DISCUSSION The property located at 380 Alta Vista Drive, at the intersection ofConmur Street, was acquired by the City's Redevelopment Agency in April 2005. The site consists of one parcel with a residential house, which had several illegal tenant units. In 2005, the Redevelopment Agency completed the initial clean-up of the property, including: dismantling and demolishing five illegal units in the basement area, debris removal, tree trimming and stump removal, building inspections systems checks (electrical, plumbing, heating), plan design and review, and testing and removal of toxic materials which required gutting the bathrooms and kitchens down to the studs. The lead and asbestos abatement was completed in March 2006. The scope of work consists of remodeling the existing two-story house. Remodeling includes landscaping, minimal structural improvements, kitchen and bathroom remodeling, electrical and plumbing upgrades, HV AC upgrades, new floor finishes and painting the entire house. The first bid was advertised in the San Mateo Times and the Peninsula Builder's Exchange. Bids were due and opened on Thursday, April 27, 2006. Only one bid was received and it was significantly higher than the engineer's estimates; therefore, the Agency authorized that the bid be rejected and the project re-bid. The re-bid was published in the San Mateo County Times on June 8 and June 16, 2006 and was sent to the Peninsula Builder's Exchange. The bid opening was Friday, July 14,2006. Only one contractor submitted a bid, Roebuck Construction of San Francisco, the same contractor who submitted the first bid. However, his base bid increased by $11,352.00 from $398,560 to $409,912, not including a bid alternate of $47,167 for landscaping. Staff Report Subject: 380 Alta Vista Drive Rehabilitation Project Page 2 CONCLUSION: The limited size and scope in combination with the bonding requirements of the project made it difficult to get competitive bids. The one bid received was higher than the original bid that was previously rejected and came from the same contractor. It is recommended that the City Council adopt the attached Resolution rejecting the bid received by Roebuck Construction, Inc. of San Francisco, for a grand total of $457,079.00. The City has established standards for development of new residential units and acquisition/rehabilitation of existing units. Typically, new development costs range from $300,000 to $350,000 for new construction and acquisitiOn/rehabilitation costs are somewhat more cost effective, costing an average of $50,000 to $100,000 per unit for major rehabilitation. Even taking increased material and labor costs into consideration, it is difficult for Staff to justify the range of magnitude proposed by the bidder. Staff is working with the City Attorney to explore alternative options which include managing the construction with City Staff and hiring independent construction workers or eliminating bonding requirements. Staffwill provide an update within 30 days. BY:~ Marty VanDuyn Assistant Executive Director Approved: -) (-,...... ~~ '- (, ,.'~ ',/ ,_.~'.. { ",f' "-. ~~ 13a1rY M. Nagel t' Ex~cutive DirectoT"" BMN:MVD:NF Attachment: Resolution RESOLUTION NO. REDEVELOPMENT AGENCY, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION REJECTING ALL BIDS RECEIVED FOR THE PROPOSED 380 AL T A VISTA DRIVE REHABIUT A TION PROJECT (ENGINEERING NUMBER PB-06-3) WHEREAS, the Redevelopment Agency of the City of South San Francisco (the "Agency") purchased a dilapidated residential structure at 380 Alta Vista on April 29, 2005 to alleviate neighborhood concerns; and WHEREAS, the Agency solicited bids for the purpose of rehabilitating and remodeling said structure so that it could be made available for use by low-moderate income households in a manner consistent with the Agency's mission and goals; and WHEREAS, pursuant to Public Contract Code Section 20166, a public entity retains the discretion to reject all bids it receives on a given project; and WHEREAS, the Agency Board now wishes to reject all bids submitted for the Project. NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency Board of Directors hereby rejects all bids for the 380 Alta Vista Rehabilitation Project. * * * * * I hereby certify that the foregoing Resolution was regularly introduced and adopted by the Redevelopment Agency of the City of South San Francisco at a regular meeting held on the 26th day of July, 2006 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk 846435-1 '-{ RDAAGENDAITEM#4 DATE: TO: FROM: July 26, 2006 Honorable Chairman and Members of the Redevelopment Agency Steven T. Mattas, City Attorney By: Peter Spoerl, Assistant City Attorney SUBJECT: AMENDMENTS TO REDEVELOPMENT AGENCY BYLAWS RECOMMENDATION It is recommended that the Agency adopt a Resolution amending Section 3.02 of the Redevelopment Agency Bylaws to provide that regular meetings of the Agency shall take place on the second Wednesday of each month immediately preceding the regularly-scheduled City Council meeting. BACKGROUND/DISCUSSION The current Redevelopment Agency bylaws, adopted at the Agency's first meeting in 1980, provide that the Agency meets twice monthly immediately preceding the City Council meeting. At the regular City Council meeting of July 12, 2006, the City Council discussed the possibility of amending these provisions in the bylaws to reduce the number of regularly monthly meetings of the Agency from two to one to reflect actual need for itemized consideration of Agency matters. California Health and Safety Code section 33125 provides that a Redevelopment Agency may make, amend or repeal bylaws and regulations. This Resolution would amend section 3.02 of the Bylaws to provide that the Agency shall meet one half hour immediately preceding the regular City Council meeting on the second Wednesday of each month. The amendment provides that if necessary, additional special meetings may be added consistent with applicable provisions of the Brown Act. CONCLUSION This Resolution would allow the Agency to streamline the consideration of monthly business and expedite the transaction of Agency matters. The amendment expressly provides that, if necessary due to unusually heavy agenda load, special meetings may be added consistent with the provisions of the Brown Act. By: dW~-./ 0 Steven T. Ma as ~ City Attorney Approved Attachment: Resolution RESOLUTION NO. REDEVELOPMENT AGENCY, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AMENDING SECTION 3.02 OF THE BYLAWS OF THE REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO RELATED TO SCHEDULING OF REGULAR MONTHLY MEETINGS WHEREAS, by Resolution RDA - 1, dated March 5th, 1980, the Redevelopment Agency of the City of South San Francisco, during its first regular meeting following formation, adopted a set of bylaws to set forth operating rules and procedures and to assist the Agency in performing its responsibilities and conducting its meetings; and WHEREAS, during the regular City Council meeting of July 12th, 2006, members of the Council discussed the possibility of amending the existing bylaw provisions to reduce the number of regular monthly meetings of the Agency from two to one to reflect actual need for itemized consideration of Agency matters; and WHEREAS, the proposed amendment will allow the Agency to consolidate monthly business and expedite the transaction of City Council business during those regular City Council meetings when no Agency meeting is held. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of South San Francisco that the Agency hereby amends section 3.02 of the Redevelopment Agency Bylaws to read as follows: "Section 3.02. Regular Meeting. A regular meeting of members shall be held on the second Wednesday of each month one half-hour immediately preceding the regular City Council meeting in and for the City of South San Francisco for the transaction of such business as may come before the Agency. In the event that the Agency determines that additional meetings are required for the transaction of regular Agency business within a monthly period, one or more additional special meetings may be scheduled for one-half hour immediately preceding the regular City Council meeting held on the fourth Wednesday of each month or at such other time as may be agreed upon by the members." * * * * * 846493-1 I hereby certify that the foregoing Resolution was regularly introduced and adopted by the Redevelopment Agency of the City of South San Francisco at a meeting held on the day of , 2006 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk 846493-1 AGENDA REVISED CITY COUNCIL CITY OF SOUTH SAN FRANCISCO REGULAR MEETING MUNICIPAL SERVICE BUILDING COMMUNITY ROOM WEDNESDAY, JULY 26, 2006 7:30 P.M. PEOPLE OF SOUTH SAN FRANCISCO You are invited to offer your suggestions. In order that you may know our method of conducting Council business, we proceed as follows: The regular meetings of the City Council are held on the second and fourth Wednesday of each month at 7:30 p.m. in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California. Public Comment: For those wishing to address the City Council on any Agenda or non-Agendized item, please complete a Speaker Card located at the entrance to the Council Chamber's and submit it to the City Clerk. Please be sure to indicate the Agenda Item # you wish to address or the topic of your public comment. California law prevents the City Council from taking action on any item not on the Agenda (except in emergency circumstances). Your question or problem may be referred to staff for investigation and/or action where appropriate or the matter may be placed on a future Agenda for more comprehensive action or a report. When your name is called, please come to the podium, state your name and address (optional) for the Minutes. COMMENTS ARE LIMITED TO THREE (3) MINUTES PER SPEAKER. Thank you for your cooperation. The City Clerk will read successively the items of business appearing on the Agenda. As she completes reading an item, it will be ready for Council action. JOSEPH A. FERNEKES Mayor RICHARD A. GARBARINO, SR Vice Mayor MARK N. ADDIEGO Councilman PEDRO GONZALEZ Councilman KARYLMATSUMOTO Councilwoman RICHARD BATTAGLIA City Treasurer SYLVIA M. PAYNE City Clerk BARRY M. NAGEL City Manager STEVEN T. MATTAS City Attorney PLEASE SILENCE CELL PHONES AND PAGERS HEARING ASSISTANCE EQUIPMENT AVAILABLE FOR USE BY THE HEARING IMP AIRED AT CITY COUNCIL MEETINGS CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE INVOCATION PRESENTATIONS .. International Society of Phannaceutical Engineers (ISPE) and Sunshine Gardens Elelnentary School DVD - Melody Spradlin, Genentech, Inc. AGENDA REVIEW PUBLIC COMMENTS ITEMS FROM COUNCIL .. Announcelnents COlllini ttee Reports .. Discussion: Sister City Progrmn .. Report from subcomlnittee on downtown business meetings CONSENT CALENDAR 1. Motion to approve the Ininutes of July 12 and 19, 2006 2. Motion to confinn expense claiIns of July 26, 2006 3. Motion to adopt an ordinance adopting a Development Agreement with ARE-San Francisco No. 12, LLC, for a four-building research and developlnent cOlnplex on a 15.75-acre site located at 249 East Grand Avenue in the City of South San Francisco 4. Motion to adopt an ordinance adding SSFMC Chapter 15.60, Recycling and Diversion of Debris from Construction and Delnolition 5. Resolution changing nmne of Bayshore Boulevard to Airport Boulevard, near Sister Cities Boulevard 6. Resolution authorizing City's participation in the San Mateo County sub-region to adlninister ABAG's Regional Housing Needs Allocation (RHNA) process 7. Resolution awarding construction contract to Interstate Grading and Paving, Inc. for Miller Avenue and South Spruce Avenue Street Resurfacing Project in the amount of $648,997 8. Resolution awarding contract to Sierra Chemical Company for the purchase of sodium bisulfite solution for WQCP in an amount not to exceed $86,132 REGULAR CITY COUNCIL MEETING AGENDA JULY 26, 2006 PAGE 2 PUBLIC HEARING 9. Consideration of EIR assessing the environmental impacts associated with a new 101,171 square foot Home Depot store, a 24,215 square foot Garden Center, open at- grade parking and a 2-level parking structure. Planned Unit Development Permit allowing parking in a portion of the front setback; Use Permit allowing outdoor sales, outdoor storage, a use generating in excess of 100 vehicle trips per day, up to 24 hour daily operation, and the determination of a parking rate; Design Review of a 101,171 square foot Home Depot store, a 24,215 square foot Garden Center, open at-grade parking and a 2 level parking structure; Transportation Demand Management Plan reducing vehicle trips; Type C Sign Permit allowing a master sign program consisting of new building fayade signs with a total sign area of 1,103 square feet, and Voluntary Hiring Agreement at 900 Dubuque Avenue; Owner: Levitz SL San Francisco; Applicant: Home Depot; Case Nos. P05-0035, PUD05-0003, UP05-001O, TDMO-0003, SIGNS05-0044, DR05-0020 & EIR05-0003 LEGISLATIVE BUSINESS 10. Motion to waive reading and introduce an ordinance amending SSFMC section 11.40.210, Commercial Vehicles Parked in Residential Areas 11. Motion to waive reading and introduce an ordinance amending SSFMC section 11.32.010, Vehicle Truck Route - Streets Enumerated COUNCIL COMMUNITY FORUM CLOSED SESSION 12. Pursuant to Government Code section 54957.6, conference with labor negotiators, Barry Nagel and Elaine Yamani; Represented Employee: Public Safety Managers and Unrepresented Employee: City Attorney ADJOURNMENT REGULAR CITY COUNCIL MEETING AGENDA JULY 26, 2006 PAGE 3 ..J AGENDA ITEM #3 StaffRe art DATE: July 26, 2006 TO: The Honorable Mayor and City Council FROM: Steven T. Mattas, City Attorney SUBJECT: Adopt an Ordinance Adopting a Development Agreement with ARE-San Francisco No. 12, LLC, for a Four-Building Research and Development Complex on a 15.75- Acre Site Located at 249 East Grand Avenue in the City of South San Francisco RECOMMENDATION: Adopt an Ordinance Adopting a Development Agreement with ARE-San Francisco No. 12, LLC, for a Four- Building Research and Development Complex on a 15.75- Acre Site Located at 249 East Grand Avenue in the City of South San Francisco BACKGROUND/DISCUSSION: Council has previously waived reading and introduced the following ordinance. The Ordinance is now ready for adoption. ADOPT AN ORDINANCE ADOPTING A DEVELOPMENT AGREEMENT WITH ARE-SAN FRANCISCO NO. 12, LLC, FOR A FOUR-BUILDING RESEARCH AND DEVELOPMENT COMPLEX ON A 15.75-ACRE SITE LOCATED AT 249 EAST GRAND AVENUE IN THE CITY OF SOUTH SAN FRANCISCO By: Vote 5-0) /t1,Lb 844721-1 ORDINANCE NO. AN ORDINANCE ADOPTING A DEVELOPMENT AGREEMENT WITH ARE-SAN FRANCISCO NO. 12, LLC, FOR A FOUR-BUILDING RESEARCH AND DEVELOPMENT COMPLEX ON A 15.75-ACRE SITE LOCATED AT 249 EAST GRAND AVENUE IN THE CITY OF SOUTH SAN FRANCISCO WHEREAS, on June 15,2006, the Planning Commission approved Use Permit UP05-0005 to construct a four-building office/R and D complex on a 15.75-acre site located at 249 East Grand Avenue; and WHEREAS, the applicant has requested approval of a Development Agreement which would clarify and obligate several project features and mitigation measures including public art, rai1s-to- trails improvements, and mitigation fees for traffic impacts; and WHEREAS, the four 3- to 5-story buildings totaling approximately 534,500 square feet, with 5,500 square feet of ancillary retail space and a four-level parking garage constitutes the present proposed development and is the project ("Project") subject to the terms of the Development Agreement ("Agreement"); and, WHEREAS, an Environmental Impact Report has been prepared which evaluates the significant and potentially significant impacts of the development, the growth inducing impacts of the development, the cumulative impacts of the development, and alternatives to the proposed project; and, WHEREAS, for those impacts identified in the Environmental Impact Report as significant and unavoidable, a Statement of Overriding Considerations has been prepared, indicating that the benefits of the Project outweigh the significant unavoidable effects; and, WHEREAS, an earlier Statement of Overriding Considerations approved by the City Council for the update to the City's General Plan would also apply to the subject property; and, WHEREAS, pursuant to Municipal Code section 19.60.050, the Director of Economic and Community Development reviewed the application for the Agreement and found the proposed Agreement to be in the proper form, determined that the application was complete, and referred the application and Agreement to the Planning Commission for a public hearing; and, WHEREAS, following properly noticed public hearings held on December 15,2005 and May 4,2006, the Planning Commission held a properly noticed public hearing on June 15,2006, on the proposed Agreement for the 249 East Grand Avenue Agreement and recommended that the City Council approve the Agreement; and, 841654 1 WHEREAS, on July 12, 2006, pursuant to Municipal Code section 19.060.110 the City Council conducted a property noticed public hearing on the proposed Agreement for the project. NOW THEREFORE, the City Council of the City of South San Francisco does hereby ordain as follows: SECTION 1. Findings A. The proposed Development Agreement for the Project is consistent with the objectives, policies, genera11and uses and programs specified in the General Plan, as amended and adopted. This finding is based upon all evidence in the record as a whole, including, but not limited to: the City Council's independent review of these documents. The Project provides for four 3- to 5-story buildings totaling approximately 534,500 square feet, with 5,500 square feet of ancillary retail space and a four-level parking garage as part of an office and research and development complex in the Planned Industrial (P -1) Zoning District. The proposed proj ect complies with all zoning, subdivision and building regulations and with the objectives, policies, general land uses and programs specified in the General Plan. B. The City Council has independently reviewed the proposed Development Agreement, the certified and adopted Housing Element, the General Plan, Chapters 20.78 and 20.84 ofthe Zoning Ordinance, Title 15 ofthe Municipal Code, and applicable state and federal law and has determined that the proposed Development Agreement for the Project complies with all applicable zoning, subdivision, and building regulations and with the General Plan. This finding is based upon all evidence in the record as a whole, including, but not limited to: the City Council's independent review of these documents, oral and written evidence submitted at the public hearings on the Project, including advice and recommendations from City staff. C. The proposed Development Agreement for the Project states its specific duration. This finding is based upon all evidence in the record as a whole, including, but not limited to: the City Council's independent review of the proposed Development Agreement and its determination that Section 2 of the Agreement states that the Agreement shall expire ten years from the effective date of the Agreement, which shall be concurrent with the adoption of the instant ordinance. D. The proposed Development Agreement incorporates the permitted uses, density and intensity of use for the property subject thereto as reflected in the approved Conditional Use Permit UP05-0005 by reference. This finding is based upon all evidence in the record as a whole, including, but not limited to: the City Council's independent review of the proposed Development Agreement and its determination that Section 3 of the Agreement set forth the development standards and the documents constituting the Project. 841654_1 E. The proposed Development Agreement states the maximum permitted height and size of proposed buildings on the property subject thereto. This finding is based upon all evidence in the record as a whole, including, but not limited to: the City Council's independent review of the proposed Development Agreement and its determination that Section 3 of the Agreement sets forth the documents which state the maximum permitted height and size of buildings. SECTION 2. The City Council of the City of South San Francisco hereby approves the proposed Development Agreement with ARE-SAN FRANCISCO NO. 12, LLC, attached hereto as Exhibit A and incorporated herein by reference. SECTION 3. Severability. In the event any section or portion of this ordinance shall be determined invalid or unconstitutional, such section or portion shall be deemed severable and all other sections or portions hereof shall remain in full force and effect. SECTION 4. Publication and Effective Date. Pursuant to the provisions of Government Code Section 36933, a summary of this Ordinance shall be prepared by the City Attorney. At least five (5) days prior to the Council meeting at which this Ordinance is scheduled to be adopted, the City Clerk shall (1) publish the Summary, and (2) post in the City Clerk's Office a certified copy of this Ordinance. Within fifteen (15) days after the adoption of this Ordinance, the City Clerk shall (1) publish the summary, and (2) post in the City Clerk's Office a certified copy of the full text of this Ordinance along with the names ofthose City Council members voting for and against this Ordinance or otherwise voting. This ordinance shall become effective thirty days from and after its adoption. .................................................................................. 841654 1 Introduced at a regular meeting of the City Council of the City of South San Francisco, held the day of , 2006. Adopted as an Ordinance ofthe City of South Francisco at a regular meeting of the City Council held the _ day of , 2006 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk As Mayor of the City of South San Francisco, I do hereby approve the foregoing Ordinance this _ day of , 2006. Mayor 841654_1 DEVELOPMENT AGREEMENT 249 East Grand Avenue Office/Research and Development Project This DEVELOPMENT AGREEMENT FOR THE 249 EAST GRAND AVENUE OFFICE/RESEARCH AND DESIGN DEVELOPMENT PROJECT ("PROJECT") is dated , 2006 ("Agreement"), between Alexandria Real Estate Equities, Inc. ("Owner"), and the CITY OF SOUTH SAN FRANCISCO, a municipal corporation organized and existing under the laws of the State of California ("City"). Owner and City are collectively referred to herein as "Parties." RECITALS A. WHEREAS, Califomia Government Code Sections 65864 through 65869.5 authorize the City to enter into binding development agreements with persons having legal or equitable interests in real property for the development of such property or on behalf of those persons having same; and, B. WHEREAS, Alexandria Real Estate Equities, the Owner, has a legal interest in the real property subject to this Agreement; and, C. WHEREAS, pursuant to Government Code Section 65865, the City has adopted rules and regulations, embodied in Chapter 19.60 ofthe South San Francisco Municipal Code, establishing procedures and requirements for adoption and execution of development agreements; and, D. WHEREAS, this Agreement concerns property consisting of a 15.75-acre site located 249 East Grand Avenue, as shown and more particularly described in Exhibit A attached hereto and incorporated herein by reference ("Property"); and, E. WHEREAS, the Owner has submitted a development proposal to the City, commonly known as the 249 East Grand Office/Research and Development Project, consisting of construction of four 3- to 5-story office/research and development buildings, totaling approximately 534,500 square feet, with 5,500 square feet of ancillary retail space and a four- level parking garage, as depicted on the 249 East Grand Plan Set, dated , prepared by , including application for a Use Permit dated , attached hereto as Exhibit B and incorporated herein by reference ("Plan Set"), to be located on the Property ("Project"); and, F. WHEREAS, Owner has requested that the City enter into this Agreement to set forth the rights and obligations of the parties relating to the development of the Project; and, G. WHEREAS, all proceedings necessary for the valid adoption and execution hereof have taken place in accordance with Government Code Sections 65864 through 65869.5, the Page 1 of 19 249 East Grand Avenue DA June 28, 2006 California Environmental Quality Act and with Chapter 19.60 of the South San Francisco Municipal Code; and, H. WHEREAS, the City Council and the Planning Commission have found that this Agreement is consistent with the objectives, policies, general land uses and programs specified in the South San Francisco General Plan as adopted on October 13, 1999 and as amended from time to time; and, I. WHEREAS, on , 2006, the City Council adopted Ordinance No. approving and adopting this Agreement and the Ordinance thereafter took effect on ,2006. AGREEMENT NOW, THEREFORE, the Parties, pursuant to the authority contained in Government Code Sections 65864 through 65869.5 and Chapter 19.60 of the South San Francisco Municipal Code and in consideration of the mutual covenants and agreements contained herein, agree as follows: 1. Effective Date Pursuant to Section 19.60.140 of the South San Francisco Municipal Code, notwithstanding the fact that the City Council adopts an ordinance approving this Agreement, the Agreement shall be effective and shall only create obligations for the Parties from and after the date that the ordinance approving this Agreement takes effect ("Effective Date"). 2. Duration This Agreement shall expire ten (10) years from the Effective Date of this Agreement, but in no event later than December 31, 2017. In the event that litigation to which the City is a party against the Owner, or any of its officers, agents, employees, contractors, representatives or consultants, should delay implementation or construction ofthe Project on the Property, the expiration date of this Agreement shall be extended for a period equal to the length of time from the time the summons and complaint is served on the defendant(s) until the judgment entered by the court is final and not subject to appeal; provided, however, that the total amount of time for which the expiration date shall be extended as a result of such litigation shall not exceed five (5) years. 3. Proiect Description; Development Standards For Proiect The Project shall consist of four Office/Research and Development buildings totaling approximately 543,500 square feet, 5500 square feet of ancillary retail space, a four-level parking garage, and related improvements as provided in the Plan Set and as approved by the City Council. Page 2 of 19 249 East Grand Avenue DA June 28, 2006 (a) The permitted uses, the density and intensity of uses, the maximum heights, locations and total area of the proposed buildings, the development schedule, the provisions for vehicular access and parking, any reservation or dedication of land, any public improvements, facilities and services, and all environmental impact mitigation measures imposed as approval conditions for the Project, shall be exclusively those provided in the Plan Set, Use Permit, Development Plan, Mitigated Negative Declaration, and this Agreement as approved by the City Council and the applicable ordinances in effect as of the Effective Date, except as modified in this Agreement, and applicable provisions of the South San Francisco Municipal Code as in effect on the Effective Date (b) Subject to Owner's fulfillment of its obligations under this Agreement, upon the Effective Date ofthis Agreement, the City hereby grants to Owner a vested right to develop and construct on the Property all the improvements for the Proj ect authorized by, and in accordance with the terms of this Agreement, the Plan Set as approved by the City Council and the applicable ordinances in effect as of the Effective Date. (c) Upon such grant of right, no future amendments to the City General Plan, the City Zoning Code, the City Municipal Code, or other City ordinances, policies or regulations in effect as ofthe Effective Date shall apply to the Project, except such future modifications that are not in conflict with and do not prevent the development proposed in the Plan Set and as approved by the City Council; provided, however, that nothing in this Agreement shall prevent or preclude the City from adopting any land use regulations or amendments expressly permitted herein or otherwise required by State or Federal Law. (d) The Use Permit granted by City shall not require an extension during the term of this Agreement provided Owner is not in material breach of the terms of this Agreement or the Conditions of Approval for said Use Permit. 4. Permits For Proiect Owner shall submit a Development Plan for development of the Project within sixty (60) days of applying for a grading permit for the project. The Development Plan shall address, at a minimum, the landscaping and common improvements required for each phase of the Project. In connection with said Development Plan, Owner shall provide to the City an Irrevocable Letter of Credit in the form attached as Exhibit C, approved by the City Attorney, in an amount equal to One Hundred Twenty Five Percent (125%) of the estimated reasonable costs to construct the common improvements identified in the approved plan. Said Letter of Credit shall be submitted within 60 days of receiving a grading permit for any phase of the Project. The City may draw under the Letter of Credit as provided below to complete the landscaping and common improvements and to reimburse the City for costs related thereto. The Letter of Credit shall be reduced as the landscaping and common improvements are completed by Owner and accepted by City in Page 3 of 19 249 East Grand Avenue DA June 28, 2006 an amount equal to the completed improvements and landscaping's proportionate share ofthe original125% Letter of Credit. If Owner fails to complete the landscaping and common improvements in accordance with 4(e) below, City shall be entitled to withdraw funds from the Letter of Credit and complete said improvements. City shall also be entitled to draw funds under the Letter of Credit in the event Owner obtains a grading permit for any phase of the Project and (1) Owner fails to request a building permit or Certificate of Occupancy for any building within that phase by December 31,2016; or (2) Owner fails to complete the landscaping and common improvements by December 31, 2016. For each phase, the City shall issue building permits and certificates of occupancy only after the City has reviewed and approved Owner's applications therefor. City staff review of applications for permits or other entitlements shall be limited to determining whether the following conditions are met: (a) The application is complete; and, (b) Owner has complied with the conditions of the City Council's approval of the Project, all applicable Uniform Codes, the South San Francisco Municipal Code, CEQA requirements, including any required mitigation measures, governing issuance of such permits or certificates and Federal and State Laws; and, (c) Owner has obtained Design Review approval for the Project, including required approval of Landscape and Common Improvements; and, (d) All applicable processing, administrative and legal fees have been paid subject to the provisions of this Agreement; and, ( e) For Certificates of Occupancy only, Owner has completed, and City has approved, the landscaping and other improvements for earlier phases of the Project. 5. Vesting of Apvrova1s Upon the City's approval of the Design Review, Parcel Map, Planned Unit Development, Transportation Design Management Plan, Use Permit and this Agreement, such approvals shall vest in Owner and its successors and assigns for the term of this Agreement, provided that the successors and assigns comply with the terms and conditions of said permit, including, but not limited to, submission of insurance certificates and bonds for the grading of the Property and construction of improvements. 6. Cooperation Between Parties in hnplementation of This Agreement The Owner and City shall proceed in a reasonable and timely manner, in compliance with the deadlines mandated by applicable agreements, statutes or ordinances, to complete all steps necessary for implementation of this Agreement and development of the Property in Page 4 of 19 249 East Grand Avenue DA June 28, 2006 accordance with the terms of this Agreement. The City shall proceed in an expeditious manner to complete all actions required for the development of the Project, including but not limited to the following: (a) Scheduling all required public hearings by the City Council and City Planning Commission; and (b) Processing and checking all maps, plans, permits, building plans and specifications and other plans relating to development ofthe Property filed by Owner or its nominee, successor or assign as necessary for development of the Property, and inspecting and providing acceptance of or comments on work by Owner that requires acceptance or approval by the City. (c) Owner, in a timely manner, shall provide City with all documents, applications, plans and other information necessary for the City to carry out its obligations hereunder and to cause its planners, engineers and all other consultants to submit in a timely manner all necessary materials and documents. It is the Parties' express intent to cooperate with one another and diligently work to implement all land use and building approvals for development of the Property in accordance with the terms of this Agreement. 7. Acquisition of Other Property; Eminent Domain In order to facilitate and insure development of the Project in accordance with the Plan Set and the City Council's approval, the City may assist Owner, at Owner's request and at Owner's sole cost and expense, in acquiring any easements or properties necessary for the satisfaction and completion of any off-site components of the Project required by the City Council to be constructed or obtained by Owner in the Council's approval ofthe Project and the Plan Set, in the event Owner is unable to acquire such easements or properties or is unable to secure the necessary agreements with the applicable property owners for such easements or properties. Owner expressly acknowledges that the City is under no obligation to use its power of Eminent Domain. 8. Maintenance Obligations on Property All of the Property subject to this Agreement shall be maintained by Owner or its successors in perpetuity. The Property shall be maintained in accordance with City requirements to prevent accumulation of litter and trash, to keep weeds abated, and to provide erosion control, and other requirements set forth in the South San Francisco Municipal Code, subject to City approval. (a) If Owner subdivides the property or otherwise transfers ownership of a parcel or building in the Project to any person or entity such that the Property is no longer under single ownership, Owner shall first establish an Owner's Association and submit Conditions, Covenants and Restrictions ("CC&Rs") to the City for review and approval by the City Attorney. Said CC&Rs shall satisfy the requirements of Municipal Code section 19.36.040. Page 5 of 19 249 East Grand Avenue DA June 28, 2006 (b) Any provisions of the conditions, covenants, and restrictions governing the Project relating to the maintenance obligations under this section shall be enforceable by the City. 9. Fees No future fee requirements, except those identified herein, imposed by the City or changes to existing fee requirements (except those currently subject to annual increases as specified in the adopting or implementing Resolutions and Ordinances) that occur on or after the Effective Date ofthis Agreement, shall apply to the Project. Owner shall not be responsible for any fees imposed by the City in connection with the development and construction of the Project, except as otherwise set forth in this Agreement, the Use Permit, the Planned Unit Development Permit, and those in existence as of the Effective Date of this Agreement. (a) Revised Application Fees. Any existing application, processing, administrative, legal and inspection fees that are revised during the term of this Agreement shall apply to the Project provided that (1) such fees have general applicability; (2) the application of such fees to the Property is prospective; and (3) the application of such fees would not prevent development in accordance with this Agreement. 10. New Taxes Any subsequently enacted city-wide taxes shall apply to the Property provided that: (1) the application of such taxes to the Property is prospective; and (2) the application of such taxes would not prevent development in accordance with this Agreement. 11. Assessments Nothing herein shall be construed to relieve the Property from common benefit assessments levied against it and similarly situated properties by the City pursuant to and in accordance with any statutory procedure for the assessment of property to pay for infrastructure and/or services which benefit the Property. 12. Additional Conditions Owner shall comply with all ofthe following requirements: (a) Traffic Impact Fees. Owner shall pay the following Traffic Impact Fees: 1. Oyster Point Overpass Fees - Oyster Point Overpass fees shall be determined based on the application of the formula in effect as of the time such Oyster Point Overpass Fees become due and payable. The City and developer agree that the approximately 5,500 sq. ft. of retail, restaurant, and fitness center uses will be treated as "General Office Building" for purposes of calculating the Oyster Point Overpass fees. Page 6 of 19 249 East Grand Avenue DA June 28, 2006 2. East of 101 Traffic Impact Fee - East of 101 Traffic Impact fees shall be determined based on the application of the formula in effect as of the time such East of 101 Traffic Impact Fees become due and payable. The City and developer agree that the approximately 5,500 sq. ft. of retail, restaurant, and fitness center uses will be treated as "Office/R&D" for purposes of calculating the East of 1 01 Traffic Impact Fee. (b) Rails to Trails Improvements. 1. Should the rail corridor abutting the north boundary ofthe Property, and identified in the General Plan as a future bike path, become available for public use prior to expiration of the Development Agreement: I. Owner shall install improvements at its sole cost and expense for the portion of the corridor that directly abuts the Property. Said improvements shall include, but not be limited to, paving, lighting, and landscaping of a design and scope consistent with standard portions of the City's Bay Trail. II. Pursuant to Owner's obligation to install said improvements, Owner shall submit plans, including a cost estimate, for the improvements, to the City for review and approval. Prior to the issuance of a Certificate of Occupancy for the final building to be constructed as part of the Proj ect, but no later than December 31, 2013, Owner shall commence construction on the improvements or provide the City with a cash deposit or other surety acceptable to the City, equal to the estimated costs of the improvements. 2. Ifthe rail corridor does not become available for public use during the term of the Development Agreement, prior to expiration of the Development Agreement: I. Owner shall (1) provide City with a cost estimate, subject to City review and approval, of the costs that would be required for the improvements described in subsection 12(b)(1); and (2) provide to the City the funds described in the cost estimate, to be used by the City to upgrade substandard portions of the City's existing Bay Trail. II. Owner shall provide said cost estimate and funds prior to issuance of a Certificate of Occupancy for the final building to be constructed as part of the Project, but no later than December 31, 2013. 3. If at any time the City decides to form an assessment district with the objective of acquiring and completing a rails to trails conversion for the Page 7 of 19 249 East Grand Avenue DA June 28, 2006 rail corridor abutting the north boundary of the Property, Owner agrees not to oppose the formation of such a district. (c) Public Art Contribution. Owner shall install and provide artwork for public display in the Project. Said artwork shall cost in the aggregate no less than Five Hundred Forty Thousand dollars ($540,500), and shall be installed on the Project site at or prior to the date on which Owner receives a Certificate of Occupancy for the 3rd building; but in any event, no later than December 31,2014. The artwork to be installed by Owner shall be subject to the reasonable approval of the City of South San Francisco prior to installation. Artwork installed pursuant to this section shall be maintained by Owner or, in the event Owner's interest in the property is conveyed or subdivided, by Owner's successors, or, if applicable, by the Owner's Association for the Project. If an association of owners is created, said maintenance obligations and a budget related thereto shall be included in the Covenants, Conditions and Restrictions for the Project. If Owner fails to complete installation of the artwork on or before December 31, 2014, Owner shall be required to pay an in-lieu fee for such artwork in the amount of Five Hundred Forty Thousand Dollars ($540,000), less the documented cost of any public artwork actually installed by Owner in the Project provided the art work installed by Owner was approved by the City prior to installation. In the event the art in- lieu fee is paid, the costs/value of the artwork to be installed shall be adjusted annually on January 1 st beginning in 2007 in an amount equal to the percentage change in the Engineering News Record Construction Costs Index for the San Francisco Bay Area. The in-lieu fee shall be paid on or before January 31,2015. (d) Transportation Demand Management. Owner shall prepare an annual Transportation Demand Management (TDM) report, and submit same to City, to document the effectiveness of the TDM plan in achieving the goal of32% alternative mode usage by employees within the Project. The TDM report will be prepared by an independent consultant, retained by City with the approval of Owner (which approval shall not be umeasonably withheld or delayed) and paid for by Owner, which consultant will work in concert with Owner's TDM coordinator. The TDM report will include a determination of historical employee commute methods, which information shall be obtained by survey of all employees working in the buildings on the Property. All nomesponses will be counted as a drive alone trip. 1. TDM Reports: The initial TDM report for each building on the Property will be submitted two (2) years after the granting of a certificate of occupancy with respect to the building, and this requirement will apply to all buildings on the Property except the parking facilities. The second and all later reports with respect to each building shall be included in an annual comprehensive TDM report submitted to City covering all of the buildings on the Property which are submitting their second or later TDM reports. Page 8 of 19 249 East Grand Avenue DA June 28, 2006 I. Report Requirements: The goal of the TDM program is to encourage alternative mode usage, as defined in Chapter 20.120 of the South San Francisco Municipal Code. The initial TDM report shall either: (1) state that the applicable property has achieved 32% alternative mode usage, providing supporting statistics and analysis to establish attainment of the goal; or (2) state that the applicable property has not achieved the 32% alternative mode usage, providing an explanation of how and why the goal has not been reached, and a description of additional measures that will be adopted in the coming year to attain the TDM goal of 32% alternative mode usage. 11. Penalty for Non-Compliance: If after the initial TDM report, subsequent annual reports indicate that, in spite of the changes in the TDM plan, the 32% altemative mode usage is still not being achieved, or if Owner fails to submit such a TDM report at the times described above, City may assess Owner a penalty in the amount of Fifteen Thousand Dollars ($15,000.00) per year for each percentage point below the minimum 30% alternative mode usage goal. a. In determining whether a financial penalty is appropriate, City may consider whether Owner has made a good faith effort to meet the TDM goals. b. If City determines that Owner has made a good faith effort to meet the TDM goals but a penalty is still imposed, and such penalty is imposed within the first three (3) years of the TDM plan (commencing with the first year in which a penalty cou1~ be imposed), such penalty sums, in the City's sole discretion, may be used by Owner toward the implementation of the TDM plan instead of being paid to City. Ifthe penalty is used to implement the TDM Plan, an Implementation Plan shall be reviewed and approved by the City prior to expending any penalty funds. c. Notwithstanding the foregoing, the amount of any penalty shall bear the same relationship to the maximum penalty as the completed construction to which the penalty applies bears to the maximum amount of square feet of Office, Commercial, Retail and Research and Development use permitted to be constructed on the Property. For example, if there is 200,000 square feet of completed construction on the Property included within the TDM report with respect to which the penalty is imposed, the penalty would be determined by multiplying Fifteen Thousand Dollars ($15,000.00) times a fraction, the numerator of which is 200,000 square feet and the denominator of which is the maximum amount of square feet of construction permitted on the Property, subtracting the square Page 9 of 19 249 East Grand Avenue DA June 28, 2006 footage of the parking facilities; this amount would then be multiplied by the number of percentage points below the 32% alternative mode usage goal. d. The provisions of this section are incorporated as Conditions of Approval for the Project and shall be included in the approved TDM for the Project. 13. Indemnity Owner agrees to indemnify, defend (with counsel selected by City subject to the reasonable approval of Owner) and hold harmless City, and its elected and appointed councils, boards, commissions, officers, agents, employees, and representatives from any and all claims, costs (including legal fees and costs) and liability for any personal injury or property damage which may arise directly or indirectly as a result of any actions or inactions by the Owner, or any actions or inactions of Owner's contractors, subcontractors, agents, or employees in connection with the construction, improvement, operation, or maintenance of the Project, provided that Owner shall have no indemnification obligation with respect to gross negligence or willful misconduct of City, its contractors, subcontractors, agents or employees or with respect to the maintenance, use or condition of any public improvement after the time it has been dedicated to and accepted by the City or another public entity (except as provided in an improvement agreement or maintenance bond). 14. Interests of Other Owners Owner has no knowledge of any reason why Owner, and any other persons holding legal or equitable interests in the Property as of the date on which title to the Property vests of record in Owner, will not be bound by this Agreement. 15. Assignment (a) Right to Assign. Owner may at any time or from time to time transfer its right, title or interest in or to all or any portion of the Property. In accordance with Government Code Section 65868.5, the burdens of this Agreement shall be binding upon, and the benefits ofthis Agreement shall inure to, all successors in interest to Owner. As a condition precedent to any such transfer, Owner shall require the transferee to acknowledge in writing that transferee has been informed, understands and agrees that the burdens and benefits under this Agreement relating to such transferred property shall be binding upon and inure to the benefit of the transferee. (b) Notice of Assignment or Transfer. No transfer, sale or assignment of Owner's rights, interests and obligations hereunder shall occur without the prior written notice to City and approval by the City Manager, which approval shall not be unreasonably withheld or delayed. The City Manager shall consider and decide Page 10 of 19 249 East Grand Avenue DA June 28, 2006 the matter within 10 days after Owner's notice, provided all necessary documents, certifications and other information are provided to the City Manager. (c) Exception for Notice. Notwithstanding Section 15(b), Owner may at any time, upon notice to City but without the necessity of any approval by the City, transfer the Property or any part thereof and all or any part of Owner's rights, interests and obligations hereunder to: (i) any subsidiary, affiliate, parent or other entity which controls, is controlled by or is under Common control with Owner, (ii) any member or partner of Owner or any subsidiary, parent or affiliate of any such member or partner, or (iii) any successor or successors to Owner by merger, consolidation, non-bankruptcy reorganization or government action. As used in this paragraph, "control" shall mean the possession, directly or indirectly, of the power to direct or cause the direction of management or policies, whether through the ownership of voting securities, partnership interest, contracts (other than those that transfer Owner's interest in the property to a third party not specifically identified in this subsection (c)) or otherwise. (d) Release Upon Transfer. Upon the transfer, sale, or assignment of all of Owner's rights, interests and obligations hereunder pursuant to Section 15(a), Section 15(b) and Section 15(c) of this Agreement, Owner shall be released from the obligations under this Agreement, with respect to the Property transferred, sold, or assigned, arising subsequent to the date of City Manager approval of such transfer, sale, or assignment or the effective date of such transfer, sale or assignment, whichever occurs later; provided, however, that if any transferee, purchaser or assignee approved by the City Manager expressly assumes any right, interest or obligation of Owner under this Agreement, Owner shall be released with respect to such rights, interests and assumed obligations. In any event, the transferee, purchaser or assignee shall be subject to all the provisions hereof and shall provide all necessary documents, certifications and other necessary information prior to City Manager approval. (e) Owner's Right to Retain Specified Rights or Obligations. Notwithstanding subparagraphs 15( a) and ( c), Owner may withhold from a sale, transfer or assignment ofthis Agreement certain rights, interests and/or obligations which Owner shall retain, provided that Owner specifies such rights, interests and/or obligations in a written document to be appended to or maintained with this Agreement and recorded with the San Mateo County Recorder prior to or concurrently with the sale, transfer or assignment of the Property. Owner's purchaser, transferee or assignee shall then have no interest or obligations for such retained rights, interests and obligations and this Agreement shall remain applicable to Owner with respect to such retained rights, interests and/or obligations. (f) Time for Notice. Within ten (10) days of the date escrow closes on any such transfer, Owner shall notify the City in writing ofthe name and address of the transferee. Said notice shall include a statement as to the obligations, including Page 11 of 19 249 East Grand Avenue DA June 28, 2006 any mitigation measures, fees, improvements or other conditions of approval, assumed by the transferee. Any transfer which does not comply with the notice requirements of this section and Section 15(b) shall not release the Owner from its obligations to the City under this Agreement until such time as the City is provided notice in accordance with Section 15(b). 16. Insurance (a) Public Liability and Property Damage Insurance. During the term of this Agreement, Owner shall maintain in effect a policy of comprehensive general liability insurance with a per-occurrence combined single limit of not less than ten million dollars ($10,000,000.00) and a deductible of not more than ten thousand dollars ($10,000.00) per claim. The policy so maintained by Owner shall name the City as an additional insured and shall include either a severability of interest clause or cross-liability endorsement. (b) Workers Compensation Insurance. During the term of this Agreement Owner shall maintain Worker's Compensation insurance for all persons employed by Owner for work at the Project site. Owner shall require each contractor and subcontractor similarly to provide Worker's Compensation insurance for its respective employees. Owner agrees to indemnify the City for any damage resulting from Owner's failure to maintain any such required insurance. (c) Evidence of Insurance. Prior to City Council approval of this Agreement, Owner shall furnish City satisfactory evidence ofthe insurance required in Sections (a) and (b) and evidence that the carrier will provide the City at least ten days prior written notice of any cancellation or reduction in coverage of a policy if the reduction results in coverage less than that required by this Agreement. 1. In the event of a reduction (below the limits required in this Agreement) or cancellation in coverage, or change in insurance carriers or policies, Owner shall, prior to such reduction, cancellation or change, provide at least ten (10) days prior written notice to City, regardless of any notification by the applicable insurer. If the City discovers that the policies have been cancelled or reduced below the limits required in this Agreement and no notice has been provided by either insurer or Owner, . said failure shall constitute a material breach of this Agreement. 2. In the event of a reduction (below the limits required by this Agreement) or cancellation in coverage, Owner shall have five (5) days in which to provide evidence of the required coverage during which time no persons shall enter the Property to construct improvements thereon, including construction activities related to the landscaping and common improvements. Additionally, no persons not employed by existing tenants shall enter the Property to perform such works until such time as the City receives evidence of substitute coverage. Page 12 of 19 249 East Grand Avenue DA June 28, 2006 3. If Owner fails to obtain substitute coverage within five (5) days, City may obtain, but is not required to obtain, substitute coverage and charge Owner the cost of such coverage plus an administrative fee equal to ten percent of the premium for said coverage. (d) The insurance shall include the City, its elective and appointive boards, commissions, officers, agents, employees and representatives as additional insureds on the policy. 17. Covenants Run With The Land The terms of this Agreement are legislative in nature, and apply to the Property as regulatory ordinances. During the term of this Agreement, all of the provisions, agreements, rights, powers, standards, terms, covenants and obligations contained in this Agreement shall run with the land and shall be binding upon the Parties and their respective heirs, successors (by merger, consolidation or otherwise) and assigns, devisees, administrators, representatives, lessees and all other persons or entities acquiring the Property, any lot, parcel or any portion thereof, and any interest therein, whether by sale, operation of law or other manner, and they shall inure to the benefit of the Parties and their respective successors. 18. Conflict with State or Federal Law In the event that State or Federal laws or regulations, enacted after the Effective Date, prevent or preclude compliance with one or more provisions of this Agreement, such provisions of this Agreement shall be modified (in accordance with Section 19 set forth below) or suspended as may be necessary to comply with such State or Federa11aws or regulations. Notwithstanding the foregoing, Owner shall have the right to challenge, at its sole cost, in a court of competent jurisdiction, the law or regulation preventing compliance with the terms of this Agreement and, if the challenge in a court of competent jurisdiction is successful, this Agreement shall remain unmodified and in full force and effect. 19. Procedure for Modification Due to Conflict with State or Federal Laws In the event that state or federal laws or regulations enacted after the effective date of this Agreement prevent or preclude compliance with one or more provisions of this Agreement or require changes in plans, maps or permits approved by the City, the parties shall meet and confer in good faith in a reasonable attempt to modify this Agreement to comply with such federal or state law or regulation. Any such amendment or suspension of the Agreement shall be approved by the City Council in accordance with Chapter 19.60 ofthe South San Francisco Municipal Code. 20. Periodic Review During the tenn of this Agreement, the City shall conduct "annual" and/or "special" reviews of Owner's good faith compliance with the terms and conditions of this Page 13 of 19 249 East Grand Avenue DA June 28, 2006 Agreement in accordance with the procedures set forth in Chapter 19.60 of the South San Francisco Municipal Code. City may recover reasonable costs incurred in conducting said review, including staff time expended and attorney's fees. 21. Amendment or Cancellation of Agreement This Agreement may be further amended or terminated only in writing and in the manner set forth in Government Code Sections 65865.1,65867.5,65868,65868.5 and Chapter 19.60 of the South San Francisco Municipal Code. 22. Agreement is Entire Agreement This Agreement and all exhibits attached hereto or incorporated herein contain the sole and entire Agreement between the parties conceming the Property. The parties acknowledge and agree that neither of them has made any representation with respect to the subject matter of this Agreement or any representations inducing the execution and delivery hereof, except representations set forth herein, and each party acknowledges that it has relied on its own judgment in entering this Agreement. The parties further acknowledge that all statements or representations that heretofore may have been made by either of them to the other are void and of no effect, and that neither of them has relied thereon in its dealings with the other. 23. Events of Default Owner shall be in default under this Agreement upon the happening of one or more of the following events: (a) If a warranty, representation or statement made or furnished by Owner to the City is false or proves to have been false in any material respect when it was made; or, (b) A finding and determination by the City made following an annual or special review under the procedure provided for in Government Code Section 65865.1 and Chapter 19.60 of the South San Francisco Municipal Code that, upon the basis of substantial evidence, Owner has not complied in good faith with the terms and conditions of this Agreement; or, (c) Owner fails to fulfill any of its obligations set forth in this Agreement and such failure continues beyond any applicable cure period provided in this Agreement. This provision shall not be interpreted to create a cure period for any event of default where such cure period is not specifically provided for in this Agreement; provided, however, that if such default is not capable of being cured within such 30 day period, Owner shall have such additional time to cure as is reasonably necessary. 24. Procedure upon Default Page 14 of19 249 East Grand Avenue DA June 28, 2006 (a) Upon the occurrence of an event of default, City may terminate or modify this Agreement in accordance with the provisions of Government Code Section 65865.1 and of Chapter 19.60 ofthe South San Francisco Municipal Code. (b) The City shall not be deemed to have waived any claim of defect in Owner's performance if, on annual or special review, the City does not propose to terminate this Agreement. I' (c) No waiver or failure by the City or Owner to enforce any provision of this Agreement shall be deemed to be a waiver of any provision of this Agreement or of any subsequent breach of the same or any other provision. (d) Any actions for breach of this Agreement shall be decided in accordance with California law. The remedy for breach of this Agreement shall be limited to specific performance. ( e) The City shall give Owner written notice of any default under this Agreement, and Owner shall have thirty (30) days after the date of the notice to cure the default or to reasonably commence the procedures or actions needed to cure the default. 25. Attorneys Fees and Costs Iflega1 action by either Party is brought because of breach of this Agreement or to enforce a provision ofthis Agreement, the prevailing Party is entitled to reasonable attorney's fees and court costs. (a) Action by Third Party. If any person or entity not a party to this Agreement initiates an action at law or in equity to challenge the validity of any provision of this Agreement or the Project Approvals, the parties shall cooperate in defending such action. Owner shall bear its own costs of defense as a real party in interest in any such action, and shall reimburse City for all reasonable court costs and attorneys' fees expended by City in defense of any such action or other proceeding. 26. Severability If any material term or condition of this Agreement is for any reason held by a final judgment of a court of competent jurisdiction to be invalid, and if the same constitutes a material change in the consideration for this Agreement, then this entire Agreement shall likewise be invalid, and shall be deemed null and void and of no further force or effect following such judicial determination. 27. No Third Parties Benefited No person other than the City, Owner, or their respective successors is intended to or shall have any right or claim under this Agreement, this Agreement being for the sole Page 15 of 19 249 East Grand Avenue DA June 28, 2006 benefit and protection ofthe parties hereto and their respective successors. Similarly, no amendment or waiver of any provision of this Agreement shall require the consent or acknowledgment of any person not a Party or successor to this Agreement. 28. Binding Effect of Agreement The provisions of this Agreement shall bind and inure to the benefit of the Parties originally named herein and their respective successors and assigns. 29. Relationship of Parties It is understood that this Agreement is a contract that has been negotiated and voluntarily entered into by City and Owner and that the Owner is not an agent of City. The parties do not intend to create a partnership, joint venture or any other joint business relationship by this Agreement. The City and Owner hereby renounce the existence of any form of joint venture or partnership between them, and agree that nothing contained herein or in any document executed in connection herewith shall be construed as making the City and Owner joint venturers or partners. Neither Owner nor any of Owner's agents or contractors are or shall be considered to be agents of City in connection with the performance of Owner's obligations under this Agreement. 30. Bankruptcy The obligations ofthis Agreement shall not be dischargeable in bankruptcy. 31. Mortgagee Protection: Certain Rights of Cure (a) Mortgagee Protection. This Agreement shall be superior and senior to all liens placed upon the Property or any portion thereof after the date on which this Agreement or a memorandum of this Agreement is recorded, including the lien of any deed oftrust or mortgage ("Mortgage"). Notwithstanding the foregoing, no breach hereof shall defeat, render invalid, diminish or impair the lien of any Mortgage made in good faith and for value, but all of the terms and conditions contained in this Agreement shall be binding upon and effective against all persons and entities, including all deed of trust beneficiaries or mortgagees ("Mortgagees") who acquire title to the Property or any portion thereof by foreclosure, trustee's sale, deed in lieu of foreclosure or otherwise. (b) Mortgagee Not Obligated. No foreclosing Mortgagee shall have any obligation or duty under this Agreement to construct or complete the construction of any improvements required by this Agreement, or to pay for or guarantee construction or completion thereof. City, upon receipt of a written request therefor from a foreclosing Mortgagee, shall permit the Mortgagee to succeed to the rights and obligations of Owner under this Agreement, provided that all defaults by Owner hereunder that are reasonably susceptible of being cured are cured by the Mortgagee as soon as is reasonably possible. The foreclosing Mortgagee thereafter shall comply with all of the provisions of this Agreement. Page 16 of 19 249 East Grand Avenue DA June 28, 2006 (c) Notice of Default to Mortgagee. If City receives notice from a Mortgagee requesting a copy of any notice of default given to Owner hereunder and specifying the address for service thereof, City shall deliver to the Mortgagee concurrently with service thereof to Owner, all notices given to Owner describing all claims by the City that Owner has defaulted hereunder. If City determines that Owner is in noncompliance with this Agreement, City also shall serve notice of noncompliance on the Mortgagee, concurrently with service thereof on Owner. Each Mortgagee shall have the right during the same period available to Owner to cure or remedy, or to commence to cure or remedy, the condition of default claimed or the areas of noncompliance set forth in City's notice. 32. Estoppel Certificate Either party from time to time may deliver written notice to the other party requesting written certification that, to the knowledge ofthe certifying party (i) this Agreement is in full force and effect and constitutes a binding obligation ofthe parties; (ii) this Agreement has not been amended or modified either orally or in writing, or, if it has been amended or modified, specifying the nature of the amendments or modifications; and (iii) the requesting party is not in default in the performance of its obligations under this Agreement, or if in default, describing therein the nature and monetary amount, if any, of the default. A party receiving a request hereunder shall endeavor to execute and return the certificate within ten (10) days after receipt thereof, and shall in all events execute and return the certificate within thirty (30) days after receipt thereof. However, a failure to return a certificate within 10 days shall not be deemed a default ofthe party's obligations under this Agreement and no cause of action shall arise based on the failure of a party to execute such certificate within 10 days. The City Manager shall have the right to execute the certificates requested by Owner hereunder provided the certificate is requested within 6 months of the annual or special review. City acknowledges that a certificate hereunder may be relied upon by permitted transferees and Mortgagees. At the request of Owner, the certificates provided by City establishing the status of this Agreement with respect to any lot or parcel shall be in recordable form, and Owner shall have the right to record the certificate for the affected portion of the Property at its cost. 33. Force Mai eure Notwithstanding anything to the contrary contained herein, either Party shall be excused for the period of any delay in the performance of any of its obligations he~eunder, except the payment of money, when prevented or delayed from so doing by certain causes beyond its control, including, and limited to, major weather differences from the normal weather conditions for the South San Francisco area, war, acts of God or of the public enemy, fires, explosions, floods, earthquakes, invasions by non-United States armed forces, failure of transportation due to no fault of the Parties, unavailability of equipment, supplies, materials or labor when such unavailability occurs despite the applicable Party's good faith efforts to obtain same (good faith includes the present and actual ability to pay market rates for said equipment, materials, supplies and labor), strikes of employees other than Owner's, freight embargoes, sabotage, riots, acts of terrorism and acts of the Page 17 of19 249 East Grand Avenue DA June 28, 2006 government (other than the City). The Party claiming such extension of time to perform shall send written notice of the claimed extension to the other Party within thirty (30) days from the commencement of the cause entitling the Party to the extension. 34. Rules of Construction and Miscellaneous Terms (a) The singular includes the plural; the masculine gender includes the feminine; "shall" is mandatory, "may" is permissive. (b) Time is and shall be of the essence in this Agreement. (c) Where a Party consists of more than one person, each such person shall be jointly and severally liable for the performance of such Party's obligation hereunder. (d) The captions in this Agreement are for convenience only, are not a part of this Agreement and do not in any way limit or amplify the provisions thereof. (e) This Agreement shall be interpreted and enforced in accordance with the laws of the State of California in effect on the date thereof. 35. Exhibits Exhibit A - Map and Legal Description of Property Exhibit B - Use Permit, including Plan Set and Conditions of Project Approval Exhibit C - Form Irrevocable Letter of Trust 36. Notices. All notices required or provided for under this Agreement shall be in writing and delivered in person (to include delivery by courier) or sent by certified mail, postage prepaid, return receipt requested or by overnight delivery service. Notices to the City shall be addressed as follow: City Clerk P.O. Box 711, 400 Grand Avenue South San Francisco, CA 94080 Notices to Owner shall be addressed as follows: c/o Alexandria Real Estate Equities 385 E. Colorado Boulevard, Suite 299 Pasadena, CA 91101 Fax: (626) 578-7318 Attn: Corporate Secretary Page 18 of 19 249 East Grand Avenue DA June 28, 2006 Attention: A party may change its address for notice by giving notice in writing to the other party and thereafter notices shall be addressed and transmitted to the new address. ************************************************ Page 19 of 19 249 East Grand Avenue DA June 28, 2006 IN WITNESS WHEREOF this Agreement has been executed by the parties on the day and year first above written. CITY OF SOUTH SAN FRANCISCO By: Barry M. Nagel, City Manager ATTEST: . City Clerk APPROVED AS TO FORM Steven T. Mattas, City Attorney OWNER By: Name: Title: 833875_1 Page 20 of 19 249 East Grand Avenue DA June 28, 2006 EXHIBIT A PROPERTY DESCRIPTION All that certain real property in the City of South San Francisco, County of San Mateo, State of California, more particularly described as follows: EXHIBITB USE PERMIT PLAN SET EXHIBIT C FORM IRREVOCABLE LETTER OF CREDIT [MUST BE SUBMITTED ON BANK'S LETTERHEAD] IRREVOCABLE STANDBY LETTER OF CREDIT # City of South San Francisco Attention: Barry M. Nagel, City Manager City Manager's Office 400 Grand Avenue South San Francisco, CA 94080 DATE: ,2006 EXPIRATION: Perpetual (see conditions for termination described below) By order of our clients, Alexandria Real Estate Equities ("Alexandria"), we hereby issue in your favor this Irrevocable Standby Letter of Credit for any sum or sums not exceeding ($ ) which is available against your draft(s) at sight on [Insert name and address of banking institution issuing letter], when accompanied by a statement signed by a purportedly authorized representative of the Office of the City Manager, City of South San Francisco, CA certifying the following: 1. Alexandria is in default of anyone of the provisions established by that certain "Development Agreement For The 249 East Grand Avenue Office/Research And Design Development Project" ("Development Agreement") entered into between the City of South San Francisco and Alexandria (collectively, "the Parties") and dated the _ day of , 2006, and has failed satisfactorily to perform the terms, covenants and conditions contained therein. 2. Proceeds of any draft drawn on this Letter of Credit will be used solely for the purposes and interest described the Development Agreement entered into between Parties. All drafts must be presented at the counters of the [insert bank name and address], and must include the statement "Drawn on the, Letter of Credit Number ." Partial and multiple drawings are permitted. Office of the City Manager, City of South San Francisco Letter of Credit # Page 2 This Letter of Credit shall remain in full force and effect in perpetuity without expiration until the completion, including review and approval by the City, of all requirements listed in that certain "Development Agreement For The 249 East Grand Avenue Office/Research And Design Development Project" incorporated herein by reference. We hereby undertake that all drafts drawn hereunder will be duly honored by us if drawn and presented in accordance with the terms and conditions stated in this Letter of Credit. This Letter of Credit is subject to the Uniform Customs and Practice for Documentary Credits (1993 Revision, International Chamber of Commerce, Publication Number 500.) In addition, the undersigned hereby stipulates and agrees that no change, extension of time, alteration or additions to the terms of the Development Agreement or to the work to be performed thereunder or the specifications accompanying the same shall in any way affect its obligations on this Letter of Credit, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Development Agreement, the work or to the specifications. If suit is brought to enforce this guarantee, the prevailing party shall be entitled to receive in addition to the face amount of this Letter of Credit, its costs and expenses and fees, including attomey fees, all to be taxed as costs and included in any judgment rendered. The guarantee inures to and binds the successor and assigns of the parties. Sincerely, Executed by [insert bank intuition] this _ day of ,2006 Bank Name Signature of Authorized Agent Printed Name of Authorized Agent // AGENDA ITEM #4 ort DATE: July 26,2006 TO: The Honorable Mayor and City Council FROM: Steven T. Mattas, City Attorney SUBJECT: Adopt an Ordinance Adding a New Chapter 15.60, "Recycling and Diversion of Debris from Construction and Demolition," To Title 15 ofthe South San Francisco Municipal Code Relating to Recycling and Diversion of Construction and Demolition Debris RECOMMENDATION: Adopt an Ordinance Adding a New Chapter 15.60, "Recycling and Diversion of Debris from Construction and Demolition," To Title 15 ofthe South San Francisco Municipal Code Relating to Recycling and Diversion of Construction and Demolition Debris BACKGROUND/DISCUSSION: Council has previously waived reading and introduced the following ordinance. The Ordinance is now ready for adoption. ADOPT AN ORDINANCE ADDING A NEW CHAPTER 15.60, "RECYCLING AND DIVERSION OF DEBRIS FROM CONSTRUCTION AND DEMOLITION," TO TITLE 15 OF THE SOUTH SAN FRANCISCO MUNICIP AL CODE RELATING TO RECYCLING AND DIVERSION OF CONSTRUCTION AND DEMOLITION DEBRIS (Introduced on 7 12/06 Vote 5-0) By: ------ 844756-1 ORDINANCE NO. AN ORDINANCE ADDING A NEW CHAPTER 15.60, "RECYCLING AND DIVERSION OF DEBRIS FROM CONSTRUCTION AND DEMOLITION," TO TITLE 15 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE RELATING TO RECYCLING AND DIVERSION OF CONSTRUCTION AND DEMOLITION DEBRIS WHEREAS, the City Council finds and determines that the City is committed to protecting the public health, safety, welfare and environment; and WHEREAS, in order to meet these goals, it is necessary that the City promote the reduction of solid waste and reduce the stream of solid waste going to landfills; and WHEREAS, under California law as embodied in the California Waste Management Act (California Public Resources Code Sections 40000 et seq.), the City is required to prepare, adopt and implement a source reduction and recycling element to reach reduction goals, and is required to make substantial reductions in the volume of waste materials going to landfill, or pay penalties; and WHEREAS, debris from construction and demolition of buildings represents a significant portion of the volume of solid waste presently being generated by the City, and much of this debris is particularly suitable for recycling; and WHEREAS, the City's commitment to the reduction of waste and to compliance with State law requires the establishment of programs for recycling and salvaging construction and demolition materials; and WHEREAS, the City Council recognizes that requiring construction and demolition debris to be recycled and reused may in some respects add modestly to project costs and in other respects may make possible some cost recovery and cost reduction; and WHEREAS, the City Council hereby finds that it is necessary in order to protect the public health, safety and welfare that the City implement a recycling requirement in order to achieve the above-referenced public purposes. NOW THEREFORE, the City Council of the City of South San Francisco does ORDAIN as follows: SECTION 1. A new chapter 15.60, "Recycling and Diversion of Debris from Construction and Demolition," is hereby added to Title 15 of the South San Francisco Municipal Code, to read as follows: Chapter 15.60 RECYCLING AND DIVERSION OF DEBRIS FROM CONSTRUCTION AND DEMOLITION 842810-1 15.60.010 Definitions 15.60.020 Deconstruction and Salvage and Recovery 15.60.030 Diversion Requirements 15.60.040 Information Required Before Issuance of Permit 15.60.050 Administrative Fee 15.60.060 Deposit Required 15.60.070 Reporting 15.60.080 Penalties and Enforcement 15.60.010 Definitions. For purposes ofthis chapter, the following definitions apply: (a) "Construction and demolition debris" means and includes: (1) Discarded materials generally considered to be not water soluble and non-hazardous in nature, including but not limited to steel, copper, aluminum, glass, brick, concrete, asphalt material, pipe, gypsum, wallboard, and lumber from the construction or destruction of a structure as part of a construction or demolition project or from the renovation of a structure and/or landscaping, including rocks, soils, tree remains, trees, and other vegetative matter that normally results from land clearing, landscaping and development operations for a construction project; (2) Remnants of new materials, including but not limited to: cardboard, paper, plastic, wood, and metal scraps from any construction and/or landscape project; (b) "Contractor" means any person or entity holding, or required to hold, a contractor's license of any type under the laws ofthe State of California, or who performs (whether as contractor, subcontractor, owner-builder, or otherwise) any construction, demolition, remodeling, renovation, or landscaping service relating to buildings or accessory structures in the corporate City limits of South San Francisco. (c) "Covered Project" means ahd includes any project which consists of one or more of the following: (1) Demolition work only, where the cost of the work exceeds $5,000 as determined by the Building Official; (2) The renovation, remodel or addition to an existing structure, or the construction of a new structure where the cost ofthe work exceeds $50,000, as determined by the Building Official; (3) Commercial, residential or multi - family residential development, and any new structure that is equal to or greater than 2,000 square feet. (d) "Designated recyclable and reusable materials" means and includes: (1) Inert solids 842810-1 (2) Wood materials, including any and all dimensional lumber, fencing or construction wood that is not chemically treated, creosoted, CCA pressure treated, contaminated or painted; (3) Vegetative materials, including trees, tree parts, sluubs, stumps, logs, brush or any other type of plants that are cleared from a site for construction or other use; (4) Metals, including all metal scrap such as, but not limited to, pipes, siding, window frames, door frames and fences; (5) Roofing materials including wood shingles and shakes as well as asphalt, stone and slate based roofing material; (6) Salvageable materials and structures, including, but not limited to doors, windows, fixtures, hardwood flooring, sinks, bathtubs and appliances; (7) Any other materials that the Building Official determines can be diverted due to the identification of a recycling facility, reuse facility, or market accessible from the County. ( e) "Inert solids" includes asphalt, concrete, rock, stone, brick, sand, soil and fines; (f) "Salvage" means the controlled removal of materials from a covered project, for the purpose of reuse or storage for later reuse; (g) "Structure" means anything constructed or erected. 15.60.020 Deconstruction and Salvage and Recovery. (a) Contractors are encouraged to make every structure planned for demolition available for deconstruction, salvage, and recovery prior to demolition; and to recover the maximum feasible amount of salvageable designated recyclable and reusable materials prior to demolition. (b) Recovered and salvaged designated recyclable and reusable materials from the deconstruction phase shall be counted towards the diversion requirements ofthis chapter. 15.60.030 Diversion Requirements. (a) One hundred percent (100%) of inert solids, and at least fifty percent (50%) of the remaining construction and demolition debris tonnage shall be diverted. (b) For each covered project, the diversion requirements of this chapter shall be met by submitting and following a Waste Management Plan that includes the following: (1) Deconstructing and salvaging all or part ofthe structure as practicable. AND (2) Directing one hundred percent (100%) of inert solids to reuse or recycling facilities approved by the City. AND (3) Either 842810-1 a. Taking all mixed construction and demolition debris to the Mixed Construction and Demolition Debris Recycling facilities approved by the City and taking all sorted or crushed construction and demolition debris to approved facilities. OR b. Source separating non-inert materials, such as cardboard and paper, wood, metals, green waste, new gypsum wallboard, tile, porcelain fixtures, and other easily recycled materials, and directing them to recycling facilities approved by the City and taking the remainder (but no more than 50% by weight or yardage) to a facility for disposal. In this option, calculations must be provided to show that 50% of construction and demolition debris (in addition to 100% of inert solids) has been diverted. 15.60.040 Information Required Before Issuance of Permit. Every contractor shall submit a properly completed "Waste Management Plan," on a form prescribed by the City's Building Division, as an integral part ofthe building or demolition permit application process for a covered project. The Waste Management Plan shall indicate the intended salvage, reuse, and recycling facilities, chosen from a list of facilities approved by the City, for all construction. and/or demolition debris from the project. Approval of alternative facilities or special salvage or reuse options may be requested of the Building Official. Approval by the Building Official, or designee, of the Waste Management Plan as complying with this chapter shall be a condition precedent to the issuance of any building or demolition permit for a covered project. 15.60.050 Administrative Fee. As a condition precedent to the issuance of any building or demolition permit for a covered proj ect, the applicant shall pay to the City a fee as established by resolution to compensate the City for all expenses incun-ed in administering this chapter. 15.60.060 Deposit Required As a condition precedent to issuance of any permit for a building or a demolition permit that involves the production of solid waste destined to be delivered to a landfill, the applicant shall post a cash deposit or bond in the amount of fifty dollars ($50.00) for each estimated ton of construction and/or demolition debris, but not less than one hundred dollars ($100) or more than fifty thousand ($50,000). The deposit or cash bond shall be retumed, without interest, in total or in proportion, upon proof to the satisfaction of the building official, that no less than the required percentages or proven proportion of those percentages of the tons of debris generated by the demolition and/or construction proj ect have been diverted from landfills and have been recycled or reused. If the lesser percentage oftons or cubic yards than required is diverted, a proportionate share ofthe deposit will be returned. The deposit shall be forfeited entirely or to the extent that there is a failure to comply with the requirements ofthis chapter. 15.60.070 Reporting. (a) No later than thirty (30) days following the completion of a demolition project or construction project, the contractor shall, as a condition of final approval and for issuance of any certificate of occupancy, submit documentation to the City that demonstrates compliance with the requirements of this chapter. 842810-1 (b) The documentation shall consist of photocopies of receipts and weight tags or other records of measurement or equivalent documentation from recycling companies, deconstruction contractors, and landfill and disposal companies. The contractor's approved "Waste Management Plan" shall be completed by recording and confirming the type of debris diverted and the facilities to which it was taken. The contractor shall sign the completed "Waste Management Plan" form to certify its accuracy as part of the documentation of compliance. ( c) Progress reports during construction may be required. (d) All documentation submitted pursuant to this section is subject to verification by the City. ( e) It is llil1awful for any person to submit documentation to the City under this section which that person knows to contain any false statements, including but not limited to false statements regarding tonnage of materials recycled or diverted, or to submit any false or fraudulent receipt or weight tag or other record of measurement. 15.60.080 Penalties and Enforcement (a) Each violation of the provisions of this chapter shall constitute a misdemeanor, and shall be punishable as provided for in Section 36901 ofthe Government Code, as that section or its successor reads at the time of the offense. Each day that a violation continues shall be deemed a new and separate offense. (b) The Building Official shall have the authority to enforce this chapter as specified in section 15.06.060 of the South San Francisco Municipal Code, including but not limited to the authority to order tllat work be stopped where any work is being done contrary to the provisions ofthis chapter. SECTION 2. SEVERABILITY If any provision of this ordinance or the application thereofto any person or circumstance is held invalid or unconstitutional, the remainder ofthis ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions ofthis ordinance are severable. The City Council ofthe City of South San Francisco hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that anyone or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable. SECTION 3. PUBLICATION AND EFFECTIVE DATE Pursuant to the provisions of Government Code Section 36933, a summary ofthis Ordinance shall be prepared by the City Attorney. At least five (5) days prior to the Council meeting at which this Ordinance is scheduled to be adopted, the City Clerk shall (1) publish the Summary, and (2) post in the City Clerk's Office a certified copy of this Ordinance. Within fifteen (15) days after the adoption of this Ordinance, the City Clerk shall (1) publish the summary, and (2) post in the City Clerk's Office a certified copy of the full text ofthis Ordinance along with the names ofthose City 842810-1 Council members voting for and against this Ordinance or otherwise voting. This ordinance shall become effective thirty days from and after its adoption. * * * * * Introduced and adopted at a regular meeting of the City Council of the City of South San Francisco, held the _ day of , 2006. Adopted as an Ordinance of the City of South San Francisco at a regular meeting of the City Council held the day of, 2006 by the following vote: AYES: NOES: ABSTAIN: ABSENT: As Mayor of the City of South San Francisco, I do hereby approve the foregoing Ordinance this day of , 2006. - Joe Fernekes, Mayor 842810-1 AGENDA ITEM #5 DATE: TO: FROM: SUBJECT: July 26, 2006 Honorable Mayor and City Council Marty Van Duyn, Assistant City Manager BA YSHORE BOULEVARD-STREET NAME CHANGE RECOMMENDATION It is recommended that the City Council adopt a resolution changing the name of Bayshore Boulevard to Airport Boulevard. BACKGROUND/DISCUSSION In February 2006, the Traffic Advisory Committee (T AC) received a request to clarify the street name signs at the intersection of Bayshore Boulevard-Airport Boulevard and Sister Cities Boulevard- Oyster Point Boulevard. After reviewing the request, T AC recommended that Bayshore Boulevard be renamed Airport Boulevard from Sister Cities Boulevard-Oyster Point Boulevard to the city limits with City of Brisbane. The name change is recommended due to numerous complaints and confusion on the roadway when motorists exit southbound Route 101 at the new hook-ramp north of Sister Cities/Oyster Point. This street name change would make the two streets north and south of Sister Cities Boulevard intersection share the same name. Currently, there are no mailing addresses on Bayshore Boulevard and this action would require only minimal street name sign changes. FUNDING: No additional funding would be necessary to replace the existing street name signs. The cost to install the signs shall be charged to general street maintenance. By: Marty Van Duyn Assistant City Mana APProVed:~ "C) a . agel City Manager RR: ts Attachments: Resolution Location Map RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION CHANGING THE NAME OF BA YSHORE BOULEVARD TO AIRPORT BOULEVARD WHEREAS, on February 2006, staff received a request to clarify the street name signs at the intersection of Bayshore Boulevard-Airport Boulevard and Sister Cities Boulevard-Oyster Point Boulvard; and WHEREAS, the Traffic Advisory Committee ("T AC") reviewed the request and recommended that Bayshore Boulevard be renamed Airport Boulevard from Sister Cities Boulevard- Oyster Point Boulevard to the city limits with City of Brisbane; and WHEREAS, the name change is recommended due to numerous complaints and confusion on the roadway when motorists exit southbound Route 101 at the new hook-ramp north of Sister Cities/Oyster Point; and WHEREAS, no additional funding is required to replace the existing street name signs, the cost of replacement of the street signs shall be charged to general street maintenance. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council approves the changing of the name of Bayshore Boulevard to Airport Boulevard. * * * * * I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a meeting held on the day of , 2006 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk 846318vl t N PROPOSED STREET NAME CHANGE: BAYSHORE BOULEVARD TO AIRPORT BOULEVARD . . \R ~:~ ~ ..1 ~Pl.W!,:~;; "J 1" ",::~" , " /'~'IIin.tI~~ , '" ;;:''''''Os ".., " , '~, , ", ~~z i,'., sr. ..J l . ~plJll. st~1E Ilfl ~1/iIA ,il' ,:j /:/ /// /;1 /~/ // ~I )f ,/ /Y'/"// /(/~t~ ~//,~~/,,~/., S' \\ '</~.J /'/. \::.>/ .. /f ;' /~"'_" /...."'-;, "~.. .<ri ..~ ~\ .' ~~" /~ J~" /~, /t >>~,i</ 1/ .././ < i ;' / -~"A-^_,_~"_~~m."'~/ /~n=NN' . '" ilJJ,i ~ .~ c,i .0.. 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"'"---",, II '~,'=: ......j [==:::::,':P-:si'" . '''',~ il::.'H:.S'M.EC:::::::::=::AVE:}~I"::'::'::::/fYt:=::: i9 II' i jj " ji , ~ ,> W' REVISION - CITY OF SOUTH SAN FRANCISCO DEPARTMENT OF PUBLIC WORKS LOCATION MAP ~". ~/'w) iiil ;~ ~ 9:.. ~.i - ....... /~>'"''' J/' ---------~~.---..-.-.-- UCALs.!NTS __~ APPROVED: DATE: 0511712006 ! Gl\Dra.wlngs\CITY MAP\Rtrvlsed BQs~N83'\Bo.s~N83.dwg ----'-T~~WN: KCM r:ECKED: TAS-~ DRAWING NO. 1 ~'t\\ 8M g ~ . ~~\ o 0 l:>-t ~l t:l C') " ~l@!'~~ 0 Staff Report AGENDA ITEM #6 DATE: TO: FROM: SUBJECT: July 26, 2006 Honorable Mayor and City Council Marty VanDuyn, Assistant City Manager PARTICIPATION IN THE COUNTYWIDE SUB-REGION TO ADMINISTER ABAG'S REGIONAL HOUSING NEEDS ALLOCATION PROCESS (RHNA). RECOMMENDATION It is recommended that the Council adopt a resolution authorizing the City of South San Francisco to participate in the Countywide Sub-Region, an entity that would locally administer AGAB's Regional Housing Needs Allocation Process (RHNA). BACKGROUND/DISCUSSION A new state law now allows cities within the County to join together to form a "sub-region", a consortium that would administer the State mandated Regional Housing Needs Allocation (RHNA) program at the local level. Each member jurisdiction of a sub-region must submit a resolution to ABAG requesting authority to locally administer the program by August 31,2006. ABAG would then adopt a resolution approving the formation of the "sub-region." This process would establish the housing numbers to be used in each city or county as part of the Housing Element update for 2009. The City/ County Association of Governments of San Mateo County (C/CAG) would like to form a sub-region consisting of all the cities and the County. A "sub-region" may be comprised of two or more contiguous cities. C/CAG has indicated interest in supporting this effort if the individual cities and the County are interested. Therefore, C/CAG is coordinating the creation ofa countywide "sub-region" that includes most ifnot all the cities and the County. C/CAG is committed to provide facilitation and staff support as necessary. The "sub-region" would receive a housing allocation from ABAG on May 1,2007. By June 30, 2007, the "sub-region" would distribute draft housing allocations to its member jurisdictions. Local jurisdictions may request revisions to their draft housing allocations and have 60 days to file an appeal to the "sub-region". A public hearing must be held to hear the appeal. The "sub-region" must issue the final housing allocations between February and April of2008. "Sub-regions" must follow the same substantive and procedural rules and guidelines that ABAG follows when distributing housing allocations. "Sub-regions" must also enter into an agreement with ABAG that specifies the process, timing, and other terms and conditions for administering the local housing needs determination process. Staff Report Subject: Countywide Sub-Region to administer the Regional Housing Needs Allocation process Page 2 CONCLUSION Creating a "sub-region" in San Mateo County to administer the allocation process significantly increases local control. Members of the "sub-region" will have the flexibility to negotiate with other members for adjustments to their allocations. Jurisdictions that want fewer units might offer incentives to other jurisdictions willing to accept additional units. Incentives could include cash payments to help subsidize the cost of providing services for new development or the costs of roadway and transportation improvements. Or, perhaps, jurisdictions that want fewer units could be required to make cash payments to the Housing Endowment and Regional Trust of San Mateo County to help build more housing in the County. This concept of swap and credits is not possible under state law using the current ABAG process. However, swaps and credits can be developed through the sub-regional delegation process. BY.~ a=== . Marty VanDuyn Assistant City Manager APproved:~'1 ~) , M. Na e City Manager MVD:SOS Attachment: Resolution Letter from C/CAG to City Manager Staff Report to C/CAG regarding the Housing Element Update RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA RESOLUTION AUTHORIZING THE CITY OF SOUTH SAN FRANCISCO TO BECOME A MEMBER OF A COUNTYWIDE SUB-REGION, AN ENTITY THAT WOULD LOCALL Y ADMININSTER ABAG'S REGIONAL HOUSING NEEDS ALLOCATION PROCESS (RHNA). WHEREAS, the Association of Bay Areas Governments (ABAG) is required by State law to administer the Regional Housing Needs Allocation program in the Bay Area; and WHEREAS, ABAG has begun preliminary work on developing the program with the objective of completing the program in August of 2008; and WHEREAS, changes to the Housing Element law in 2004 allow ABAG to transfer administration of the program to local jurisdictions who create sub-regions for the purposes of distributing housing need allocations among the members of the sub-region; and WHEREAS, a sub-region is defined as two or more cities in a County or any combination of geographically contiguous local governments; and WHEREAS, the City of South San Francisco desires to become part of a sub-region in San Mateo County; and WHERAS, the City/ County Association of Governments of San Mateo County (C/CAG) will facilitate and provide staff support; and WHEREAS, each member of a sub-region must adopt a resolution authorizing its inclusion in the sub-region; and WHEREAS, adopted resolutions must be sent to ABAG by August 31, 2006; and WHEREAS, ABAG must adopt a resolution approving the sub-region. NOW, THEREFORE, BE IT RESOLVED that the City of South San Francisco agrees to participate in the process to establish realistic housing allocations among the sub-region (cities and the County) for use in the next housing element that is due in 2009. Adoption of this resolution indicates the Council's intention to participate in the sub-region process for San Mateo County and to designate the City/ County Association of Governments of San Mateo County (C/CAG) as the official representative of the San Mateo County sub-region. This resolution is submitted to the Association of Bay Area Governments (ABAG) for inclusion in the Resolution designating the sub-region. * * * * * * I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a regular meeting held on the 26t day of July, 2006 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk C/CAG CITY/COUNTY ASSOCIATION OF GoVERNMENTS OF SAN MATEO COUNTY Atherton' Belmont. Brisbane. Burlingame. Calma. Daly City. East Palo Alto. Foster City. Half Moon Bay. Hillsborough . Menlo Park. Millbrae Pacifica. Portola Valley' Redwood City. San Bruno. San Carlos' San Mateo. San Mateo County .South San Francisco' Woodside June 21,2006 Attention: City Managers and County Manager Subject: Regional Housing Needs Allocation (RHNA) - Sub-regional delegation As you know the next Housing Element update is due in 2009. Usually a housing number is provided to each City/ County through ABAG's Regional Housing Needs Allocation (RHNA) Process. The allocation from this process has typically not been well received. This cycle a unique opportunity has been presented to allow sub-regions to be created that would be given a number collectively. The advantage to this is that it would allow the members of the sub- region to decide how to divide the housing among the Cities/ County in the sub-region. This would also create the opportunity to provide for joint agreements to fund housing with reasonable credit going to participating Cities/ County. It is unlikely that this flexibility could be achieved for Cities and Counties through State Legislation since it is strongly opposed by some housing groups. This sub-regional process provides the greatest opportunity for local input to the process. The C/CAG Board has indicated that it is willing to facilitate and provide staff support for the process if the Cities and County are interested in forming a sub-region. However this effort will primarily be a City/ County effort. The first step in forming a sub-region is to adopt a resolution indicating participation and provide it to C/CAG and ABAG no later than 8/31/06. Your consideration of participation in the sub-region is appreciated. Attached and e-mailed is a sample staff report, resolution, and background material. PLEASE PROVIDE PARTICIPATION RESOLUTION BY 31 AUGUST 2006 C/CAG staff is available to provide support as necessary. If there are any questions please contact me at 650 599-1420. If any County can do this, San Mateo County can. Sincerely, Richard Napier Executive Director City/ County Association of Governments 555 County Center, 5th Floor, Redwood City, CA 94063 PHONE: 650.599.1406 FAX: 650.361.8227 April13,2006 To: C/CAG Board From: Duane Bay Re: Housing Element Update: Common sections (generic and/or city-specific) & Sub-Regional Housing Needs Allocation (SubRHNA) The table below outlines two opportunities through which C/CAG member jurisdictions could save money and/or increase local control in the next mandatory Housing Element update. A separate handout details the schedule of the update process through a June 2009 deadline. Common Housing Element Sections Sub-Regional Housing Needs Allocation Each jurisdiction could save money by using a Exercising our existing local right to negotiate jointly-authored common version of certain a sub-regional housing needs allocation required housing elements sections that recite cooperatively would increase local control statistics and offer generic analysis of housing while preserving existing autonomy of action supply and demand. and appeal for each local jurisdiction. Straightforward Process Any jurisdictions may cooperate on update text The County plus any two or more contiguous as they wish. jurisdictions may cooperate to sub-allocate their block of housing requirement among themselves. In a cooperative process, the schedule for submittal and appeal closely tracks the comparable schedule for jurisdictions working independently, and is designed to make independent compliance possible if cooperative process falls apart. Timing The initial technical step, development of an Participating jurisdictions must apply for RFP, could proceed almost any time after delegation of authority by August 31, 2006. Housing Needs Analysis Study is complete. Subsequent steps are outlines in separate However, it would be prudent to wait to see handout published recently by ABAG. iflhow the Sub-RHNA alternative unfolds. An initial administrative step would be to develop a draft technical scope, and use it to pursue grant funding. smcSubRHNAtalkingpointsv3.doc rev: SMC-DoH 04-10-06 Page 1 of2 Cost Reduction Collectively, cities and county will spend from Advantage is in flexibility and autonomy, not $2 million to $4 million on updating our cost reduction. However, cooperative sub- Housing Elements. About 80% of the pages allocation will not cost extra. and 40% of the cost will be spent on an Grant funding may be obtainable. obligatory analysis of housing needs and housing supply. This could be done once, by one contractor, with countywide information and local break-outs. Jurisdiction-specific policy sections would still be done locally. There might also be some economies of scale available through developing a countywide housing-site GIS to support the State-required process of each jurisdiction identifying "adequate housing sites." Of course, the actual identification would remain the technical and political responsibility of each jurisdiction. Increased Local Control The common Housing Element sections are Alternatives are available that otherwise descriptive, not prescriptive. Local control is would not be through trades and local not an issue. customizations, subject to mutual agreement. Jurisdictions that want fewer units might offer incentives to others to accept units. Jurisdictions that want more housing, or are at least willing to take more housing with appropriate trade-offs, might negotiate with other jurisdictions for traffic mitigations, or Hetch Hetchy water rights, or priority in building Caltrain grade separations, or loans or grants for subsidies for affordable or supportive housing. Each Jurisdiction's Rights Are Preserved The common Housing Element sections are Any jurisdiction may opt out (even after descriptive, not prescriptive-they recite ioining the consortium) and will then be statistics about housing supply and demand. assigned an allocation directly by ABAG. Each jurisdiction prepares its own Housing All existing rights to trade allocations with Program section that outlines actions it intends consenting neighboring jurisdictions are to take. preserved. All rights to appeal allocations are preserved Each jurisdiction makes its own determination (even allocations agreed to as part of a sub- of "adequate sites for housing." rellional negotiation process). smcSubRHNAtalkingpointsv3.doc rev: SMC-DoH 04-10-06 Page 2 0[2 /'~l / ~'t\\ s~ m ~ . ~v.\ (0 0 ~ ~l v c ~lIFO"~ Staff Report AGENDA ITEM #7 DATE: July 26,2006 TO: The Honorable Mayor and City Council FROM: Marty Van Duyn, Assistant City Manager SUBJECT: MILLER A VENUE AND SOUTH SPRUCE A VENUE RESURFACING PROJECT: ENGINEERING FILE NO. 51-13231-0701, PROJECT NO. ST-07-1, BID NO. 2445 RECOMMENDA TION: It is recommended that the City Council adopt a resolution awarding the construction contract of the Miller A venue and South Spruce A venue Resurfacing Project, Project No. ST -07-1, Bid No. 2445, to Interstate Grading and Paving, Inc. of South San Francisco, CA in the amount of $648,997.00; and reject the bids submitted by C.F. Archibald Paving, Inc. of Redwood City, CA; El Camino Paving of Sunnyvale, CA; and O'Grady Paving, Inc. of Mountain View, CA. BACKGROUND/DISCUSSION: The project is located on Miller A venue from Chestnut A venue to Maple A venue and on South Spruce Avenue from Starlite Street to South Canal Street. The construction project involves full width pavement grinding, wedge grinding, asphalt pavement dig-outs, pavement crack sealing, installation of new asphalt concrete surfacing, new pavement striping and markings, and raising the utility manhole and monument covers to grade. On June 20, 2006 and June 27, 2006, staff advertised the notice to invite sealed bids for the project. Staff opened bids on July 13,2006 and six (6) bids were received. Below is the summary of the bids: Engineer's Estimate: Bids: C.P. Archibald Paving, Inc. of Redwood City Interstate Grading & Paving, Inc. of South San Francisco G. Bortolotto and Co., Inc. of San Carlos El Camino Paving of Sunnyvale O'Grady Paving, Inc. of Mountain View Esquivel Grading & Paving, Inc of San Francisco $627,115.00 $647,688.00 $648,997.00 $652,017.39 $752,891.28 $785,502.00 $872,715.50 Staff Report Subject: MILLER A VENUE AND SOUTH SPRUCE A VENUE RESURFACING PROJECT: ENGINEERING FILE NO. 51-13231-0701, PROJECT NO. ST-07-1, BID NO. 2445 Page 2 of 3 The bid proposal specifically stated that all bidders attached the most current Asphalt Concrete Price Index to their respective bids. This price index determines whether the cost of asphalt concrete, a by- product of oil, will increase or decrease due to monthly fluctuations in the cost of oil and it's by- products. The asphalt price index is published by the State of California and is in effect on the first business day of each month. C.F. Archibald Paving, Inc. of Redwood City, El Camino Paving of Sunnyvale, and O'Grady Paving, Inc. of Mountain View failed to attach the asphalt price index to their bid. Interstate Grading and Paving of South San Francisco, G. Bortolotto and Co., Inc of San Carlos, and Esquivel Grading and Paving Inc. of San Francisco attached the asphalt price index to their bid. After reviewing the results of the bid, staff referred the issue of the bidders' failure to attach the Asphalt Price Index to their submitted bid proposals to the City Attorney's office for review. The City Attorney's office concluded that the bidders' failure to attach the Asphalt Price Index rendered their submitted bids as non-responsive and is sufficient cause for rejection of the bids submitted by c.F. Archibald Paving, Inc. of Redwood City, El Camino Paving of Sunnyvale, and O'Grady Paving, Inc. of Mountain View; and to award the project to the second lowest responsive bidder, Interstate Grading and Paving, Inc. of South San Francisco. The project is the first phase of various streets to recei ve new asphalt concrete surfacing as stated in the Capital Improvement Program. Shown below are the streets included in the second phase to receive new asphalt concrete surfacing scheduled for bid advertisement on August 2nd, 2006. · Gellert Boulevard (from Westborough Blvd. to Shannon Drive) · King Drive (from Junipero Serra Blvd. to Newman Drive) · Newman Drive (from King Drive to San Felipe Street) · South Airport Boulevard (from San Mateo Ave to Mitchell A venue · Produce Avenue (from San Mateo Ave to Terminal Ct) · Terminal Court (from Produce Ave to End of Cul-de-sac) FUNDING Shown below is the cost breakdown for the project budget: Interstate Grading & Paving, Inc. of South San Francisco Bid Amount - $648,997.00 Add 10% Contingency - $ 64,900.00 Add Construction Administration - $ 32,500.00 Total Project Budget Cost - $746,397.00 Staff Report Subject: MILLER A VENUE AND SOUTH SPRUCE A VENUE RESURFACING PROJECT: ENGINEERING FILE NO. 51-13231-0701, PROJECT NO. ST-07-1, BID NO. 2445 Page 3 of 3 This project is included in the City of South San Francisco's 2006 - 2007 Capital Improvement Program. Sufficient Gas tax and Measure A funds were budgeted to cover project costs. CONCLUSION: Approval of this project will allow the installation of new asphalt pavement surface providing smoother driving, less vehicle emissions due to continuous flow of traffic, reduced vehicle damage due to uneven pavement surface and potholes, increased service life of the street, and a reduction in major street maintenance for an extended period of time. The project will be coordinated and inspected by City Staff in accordance with the plans and specifications. The project has a one year warranty period, which takes effect upon acceptance by the City Council. B ---., Marty Van Duyn Assistant City Manager RR:rd Attachments: Resolution Vicinity Map Bid Summary Spreadsheet Bid Proposal RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AWARDING A CONSTRUCTION CONTRACT FOR MILLER A VENUE AND SOUTH SPRUCE A VENUE RESURFACING PROJECT TO INTERSTATE GRADING ANDPA VING, INe. OF SOUTII SAN FRANCISCO IN THE AMOUNT OF $648,997.00 AND REJECT THE BIDS SUBMITTED BY C.P. ARCHIBALD PAVING, INC. OF REDWOOD CITY, EL CAMINO PAVING OF SUNNYVALE AND O'GRADY PAVING. me. OF MOUNTAIN VIEW WHEREAS, staff recommends that the City Council award the construction contract for Miller A venue and South Spruce Avenue Resurfacing Project to Interstate Grading and Paving, Inc. of South San Francisco in the amount of $ 648,997 and reject the bids submitted by e.P. Archibald Paving, Inc. of Redwood City, El Camino Paving of Sunnyvale and O'Grady Paving, Inc. of Mountain View; and WHEREAS, on July 13,2006 Staff opened bids and six were received. The bid proposal specifically stated that all bidders attached the most current Asphalt Concrete Price Index to their respective bids, this price index determines whether the cost of asphalt concrete, a by product of oil, will increase or decrease due to monthly fluctuations in the cost of oil and it's by-products. The asphalt price index is published by the State of California and is in effect on the first business day of the month; WHEREAS, C.P. Archibald Paving, Inc. of Redwood City, EI Camino Paving of Sunnyvale, and O'Grady Paving, Inc. of Mountain View failed to attach the asphalt price index to their bid; WHEREAS, Interstate Grading and Paving of South San Francisco, G. Bortolotto and Co., Inc. of San Carlos, and Esquivel Grading and Paving Inc. of San Francisco attached the asphalt price index to their bid. After reviewing the results of the bid, Staff referred the issue of the bidders' failure to attach the Asphalt Price Index to their submitted bid proposals to the City Attomey' s office for review; WHEREAS, The City Attorney's office concluded that the bidder's failure to attach the Asphalt Price Index rendered their submitted bids as non-responsive and is sufficient cause for rejection of the bids submitted by e.P. Archibald Paving, Inc, El Camino Paving and O'Grady Paving, Inc., and to award the project to the second lowest responsive bidder, Interstate Grading and Paving, Inc. of South San Francisco; 846421-1 WHEREAS, sufficient funds for this project are included in the City's 2006-2007 Capital Improvement Program. Sufficient Gas tax and Measure A funds were budgeted to cover the project costs. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council hereby awards the construction contract for the Miller A venue and South Spruce A venue Resurfacing Project to Interstate Grading and Paving in the amount of $ 648,997.00. BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute the contract on behalf of the City of South San Francisco. * * * * * I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a meeting held on the day of , 2006 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk 846421-1 < ~ (1 ~ z ~ ~ ~ ~ > ~ ]}~ ~~>Ji~ . // /~f~>~ I -,_: f ! ~""""r/ "RADB\lRll,'OR' ! ,,' - /''t ~ -'\ ; ,%. <,_~~~] ~ i=: i .. ~ \. .' · ..;;;f:(~~::'\\V \ ,>' /' ,_ ",-,/, ,\." 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"" "" "" 4.l ~ ~ ~ E-< <C ~ <C<C <C , <C <C 'f 'f 'f fl ~ ;J ;J .... .... t:l <:II t:l ~ ~ .5 t:l t:l t:l ""' N U U ~ E-< E-< "0 8 00 0 .- N ("<) '<t V) \D r- oo 0- 0 .- .- N ("<) '<t V) \D r- oo 0- 0 ~ "" .- N ("<) '<t V) \D r- 0- .- .- .- .- ...... ...... .- .- .- .- N N N N N N N N N N N ("<) .... - PROPOSAL STREET RESURFACING PROJECT MILLER A VENUE AND SOUTH SPRUCE A VENlJE ENGINEERING FILE NO. 51-13231- 0701 PROJECT NO. ST-07-1 BID NO. 2445 To The Honorable City Council City of South San Francisco In submitting this proposal as herein described, the undersigned as a bidder, declares that he has thoroughly examined all of the contract documents herein contained; that he has carefully examined the locations of the proposed work, the plans and specifications for the STREET RESURFACING PROJECT: :MILLER AVENUE AND SOUTH SPRUCE AVENUE; ENGINEERING F1lE NO. 51-13231- 0701; PROJECT NO. ST-07-1; BID NO. 2445, and hereby proposes to furnish all materials and do all work necessary and/or required to complete the work in accordance with the plans, special provisions and specifications for the lump sum prices or bid prices set forth in the schedule below and forming a part of this proposal. The undersigned further proposes that if this proposal is accepted, he will execute a contract with the City of South San Francisco, in the form of Agreement for Public Improvements to furnish all materials, to provide a superintendent and all labor, equipment and expenses of whatever nature necessary to construct the work in conformity with the plan, specifications, and other contract provisions herein contained, or reasonably implied as necessary to complete the work in a manner satisfactory to the City Engineer. Complete bids shall be submitted for all items. A bidder's bond, certified check or cash in the amount of ten percent (10%) of the sum total bid for all projects, payable to the City of South San Francisco, shall accompany the bid proposal otherwise the bid shall not be considered valid. All forms shall be completely filled out, signed and dated as indicated. All completed forms shall be submitted with this proposal including the CERTIFICATE OF NON- DISCRIMINATION. The undersigned further agrees that in case of default in executing the required contract with necessary bond within ten (10) days, not including Saturdays, Sundays and holidays, after having received notice that the contract is ready for signature, the proceeds of the check or bonds accompanying his bid shall become the property of the City of South San Francisco. The owner reserves the right to reject any or all bids. Bids will be RECEIVED in the Office of the C-ill' Engineer at 315.Maple Avenue, South San Francisco at 2:00 P.M., THURSDAY, JULY 13 ,2006. . 6 PROPOSAL STREET RESURFACING PROJECT NITLLERAVENUEANDSOUTHSPRUCEAVENUE ENGINEERING FILE NO. 51.13231- 0701 PROJECT NO. ST-07-1; BID NO. 2445 BID SCHEDULE Perform the scope of work for STREET RESURF ACWG PROJECT: MILLER A VENUE AND SOUTH SPRUCE AVENUE; ENGJNEE~G PILE NO. 51-13231- 0701; PROJECT NO. ST- 07-1; BID NO. 2445, in place, and in accordance with the plans, special provisions and specifications at the locations of work shown; Bid Item Description Unit Estimated Bid Unit Price Bid Total Item Quantity 1 Traffic Control LS 1 50 \ 000;- 6OIaoo.~ 2 Asphalt Concrete Pavement Dig-outs TON 1,550 Iz.D.- lCOloICCO.~ 3 Full Width Pavement Grinding SY 20,090 (Miller Avenue - Pinal Quantity) 4.- ~OI&t>O. - 4 Asphalt Pavement Crack Sealing LS 1 (South Spruce Avenue) - Pinal Quantity Ltl to 00 , - 4: to 00. ~ I 5 . AC Wedge Grind & Conform Grind LF 1,720 [!; .5..9 (0102..0. -- 6. 2-inch AC Overlay TON 3,700 1'5.'"" 2- '77, f;DO ,- 7 Adjust SSJ\.1H and SD:MH Covers to EA 14 000,- . Grade I,OO().- 8 Adjust Monument Covers to Grade EA 11 ~'5cJ. - :?l ttlSO.- Pavement Striping, Markers and Markings 9 "STOP" EA 11 1,35.- \)4C05.- 10 "XING" (Yellow) EA 6 1.35. ' ~lO.- 11 "SCHOOL" (Yellow) EA 6 155. - Gl~,- 12 "SLOW" (Yellow) EA 7 I~.- C145.- 13 "25" EA 2 65.'- 170. - 14 "30" EA 4 BS, - 3L-fO ." 15 Limit Line (White) LF 392 4.- 11510'3".- 16 Limit Line (Yellow) LF 64 L.J. ,. j!3(P. - 17 Crosswaile (Hatched Yellow) LF 1,048 Y.'"" 1.1) J <12..- 18 Crosswalk (White) LF 740 Y.- 2.) otloO,- 19 Detail 2 LF 4,310 \ . - y\ 0\0,' 20 Parking Cross EA 31 50.,- \) 550.'- 7 21 Detail 21 LF 2950 .2... ~ 5,QoO. - 22 Fire Hydrant Blue Marker EA 7 I~.- \ 2.10. - 23 Flexible Pedestrian Crossing Sign (paddle EA 6 Type in Reflective Green) YOD.- Z\ YOO.- 24 Type 1 Anow EA 2 75.- 150.- 25 Type IV AITOW EA 5 55. - L{ 25 .- 26 Detail 38 C LF 920 2..'59 2\ 000.- 27 Detail 38 LF 250 2.59 1025. .- 28 Detail 9 LF 1,200 /. .- 1\ z.co.-. 29 "KEEP" EA 3 105.- L{ 05.- 3D "CLEAR" EA 3 155.- 410 '5. ~ 31 ".A:HEAD" EA 1 '\55.- 156.-- Total Bid (Bid Items 1 through 31) (PLJ'O I QQ7.- CONTRACT TOTAL IN WORDS ';j\':J.,. nu.v0sed-Q\~ Ct~~ +h.~CLro\...~NJ ~ n\f\tb<Se~ Gu\'Oss ~{\ COMPANYPROFlLE NAME/S AND TITLE OF COMPANY OFFICERS ADDRESS 1. Plea5e 3eeCtt:tztchwL 2. 3. Bidder's Name (Company): / It/C!.. Business Address: /lJ3<--3D. fYkplP /!uP, JDu &iJ7 r:-I72r7C-ic5t!IJi {k CjLf!)f?O TelephoneNumber: fo50.G:J2. 7J33 Fax No. ttaJ. QOZ'h8'67 8 Typed or Printed Name: 1-1. rY7( OFFICER H. Michael Pariani . President Joseph Caron Vice- President Nancy Pariani Zammuto Secretary/Treasurer Interstate Grading &. Paving, Inc. 128 So. Maple Avenue So. San Francisco, Ca 94080 650-952-7333 ph 650-952-6851 fx ADDRESS 128 So. Maple Avenue So. San Francisco, Ca 94080 128 So. Maple Avenue So. San Francisco, Ca 94080 128 So. Maple Avenue So. San Francisco, Ca 94080 PROPOSAL STREET RESURFACING PROJECT MlLLER A VENUE AND SOUTH SPRUCE A VENUE ENGINEERING FILE NO. 51-13231- 0701 PROJECT NO. ST-07-1j BID NO. 2445 Licensed in accordance with an act providing for the registration of Contractors. License No.: 3lofoO~O - ~ Expiration Date: 1 \ ~ 30 ~D(o ~ ~r Check (attach) in the amount of: {OO! 0 If bidder is a corporation, the legal name of the corporation shall be set forth together with the signature of the officer or officers authorized to sign contracts on behalf of the corporation; if bidder is a copartnership, the true name of the firm shall be set forth together with the signature of the partner or partners authorized to sign contracts in behalf of the copartnership; and if bidder is an individual, his or her legal name shall be set forth. Bids are required for the entire work. The estimated quantities are given only for the purpose of comparing of bids. The City of South San Francisco does not expressly or by implication agrees that the actual amount of work will correspond with these quantities and reserves the right to increase or decrease the amount of any class or portion of the work or omit portions of the work, . as it may deem necessary or desirable. For each bid item the bidder shall set forth, in the spaces provided, the item price and the total price in clearly legible words and figures. In the case of unit priced items, the amount set forth under the total column shall be the extension of the unit price bid for the estimated quantity for the item. In the case of a discrepancy between the unit price and the total set forth for the item, the unit price shall prevail, however, if the amount set forth as a unit price is ambiguous, unintelligible or uncertain for any cause, or is omitted, or, in the case of unit priced items, is the same amount as the entry in the total column, then the amount set forth in the total column for the item shall prevail, subject to the following: (a) As to lump sum items, the amount set forth in the total column shall be the item pnce. (b) As to unit priced items, the amount set forth in the total column shall be divided by the estimated quantity for the item and the price thus obtained shall be the item pnce. In case of a discrepancy between the Contract Total In Words and the figure shown in the Contract Total on the Bid Schedule sheet, the contract will be awarded to the Bidder in the total amount written in words. 9 The City reserves the right to reiect any and all proposals and/or waive any irregularity in any proposal received. Attention is directed to the special provisions and specifications of this contract. Unless otherwise required by law, no bidder may withdraw his proposal for a . period of sixty (60) days after the date set for receipt thereof. The City is working within budgeted amounts for this project. If the total cost of this project exceeds the amount budgeted, the work will be deleted, or portions thereof, to come within the monies budgeted. Note: Bidders shall attach the latest Asphalt Concrete Price Index used in submitting this bid proposal, preferably for the month of June 2006 or July 2006. 10 Caltrans - Uthce tngmeer - Asphalt Pnce lndex California Home Page 1 of2 About Us Advertised Projects Bids Opened & Awarded Contracts Contact Us Construction Standards Cost Information Enhanced Constructabi lity Review File Format Information Newly Added {r9]!~g~.r r MyCI Caltrans > Enqineerinq Services> Office Enqineer > Asphalt Price Index California Paving Asphalt Price Index Jan-05 Feb-05 :b..far-05 Apr-05 May-OS Jun-05 Jul-05 Aug-05 I Sep-05 I I Oct-05 I 316.7 I N 0'17-05 I 285.2 Dec-05 274.3 Office Engineer e-mail List Server Ready to List (RTL) Guide Special Notices Jan-06 298.2 Feb-06 316.0 Mar-06 287.3 Apr-06 314.9 May-06 354.9 Joo-06 338.8 This Index is to be used for adjustments to compensation for paving asphalt ir with the provisions of the special provisions section "Compensation Adjustrm Index Fluctuations" in those projects containing the section. The index values in both metric and non metric projects. Unit adjustment is included in the forn in the special provisions. The California Statewide Paving Asphalt Price Index is determined each mOll" Department using the median of posted prices in effect on the first business d~ as posted by Chevron, Exxon Mobil and Tosco (formerly Unoca1) for the Bue Huntington Beach, Kern River, Long Beach, Midway Sunset and Wilmington This information is also available as a graphica1line chart (displayed in .gif fc Asphalt Price Index - Monthly Values h<+-..IITT~T~T' ~~... ~n ~~..f1.,.~I~n~I~~lnn~hnl... ~~~n..lnn"'nh'n t.........., '7/1 ...../.....r.r.C. PROPOSAL STREET RESURFACING PROJECT :MILLER A VENUE AND SOUTH SPRUCE A VENUE ENGINEERING FILE NO. 51-13231- 0701 PROJECT NO. ST-07-1 BID NO. 2445 DESIGNATION OF SUBCONTRACTORS Pursuant to the provisions of Section 4100 to 4113 inclusive, of the Government Code of the State of California, the Contractor shall not, without the consent of the City of South San Francisco, either: (a) Substitute any person or subcontractors 1TI place of the subcontractors designated on his original bid. (b) Permit any subcontract to be assigned or transferred or allow it to be performed by anyone other than the original subcontractor listed in the bid. (c) Sublet or subcontract any portion of the work in excess of one-half (Y1) of the one- percent (1 %) of his bid as to which his original bid did not designate a subcontractor. Should the Contractor violate any of the provisions of said Section 4100 to 4113, inclusive, of the Government Code, his so doing shall be deemed a violation of this Contract, and the City of South San Francisco may cancel the contract. In the event of such violation, the Contractor may be penalized to the extent of ten percent (10%) of the amount of the subcontract involved. Note: Not less than fIfty percent (50%) of the contract work shall be done by the prime contractor. Portion of Work Subcontractor Location and Place of Business % of Work 3~-\~\(l~ 0.f(1c)L~\. l,.~~,-:> p ~ reM () (rt- ~'Vo"G\~-to? L\fu.~ Lt. ~l-% J '" OJ . \IJ 10 13 PROPOSAL STREET RESURFACING PROJECT NITLLER AVENUE AND SOUTH SPRUCE AVENUE ENGINEERING FILE NO. 51-13231- 0701 PROJECT NO. ST-07-1 BID NO. 2445 NONCOLLUSION AFFIDAVIT In accordance with Title 23 United States Code Section 112 and Public Contract Code 7106 the bidder declares that the bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation; that the bid is genuine and not collusive or sham; that the bidder has not directly or indirectly colluded, conspired, connived, or agreed with any bidder or anyone else to put in a sham bid, or that anyone shall refrain from bidding; that the bidder has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the bidder or any other bidder, or to fix any overhead, profit, or cost element of the bid price, or of that of any other bidder, or to secure any advantage against the public body awarding the contract of anyone interested in the proposed contract; that all statements contained in the bid are true; and further, that the bidder has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, or paid, and will not pay, any fee to any corporation, partnership, company association, organization, bid depository, or to any member or agent thereof to effectuate a collusive or sham bid. This Noncollusion Affidavit is part of the Proposal. The bidder's signature on the Proposal shall also constitute signature of this Noncollusion Affidavit. Bidders are cautioned that making a false certification may subject the certifier to criminal prosecution. By: (Signature of auth 'zed representative of Bidder) /-I. fflt"(jhael Pt::LfLa,~ (Type Name) YrelJ~ (Title) 7/1 3/ Dw (Date) 14 PROPOSAL STREET RESURFACING PROJECT MILLER A VEN1JE AND SOUTH SPRUCE A VENDE ENGINEERING FILE NO. 51-13231- 0701 PROJECT NO. ST-07-1 BID NO. 2445 DEBARMENT AND SUSPENSION CERTIFICATION TITLE 49, CODE OF FEDERAL REGULA TIONS, PART 29 The bidder, under penalty of perjury, certifies that, except as noted below, he/she or any other person associated therewith in the capacity of owner, partner, director, officer, manager: · Is not currently under suspension, debarment, voluntary exclusion, or determination of ineligibility by any federal agency; · Has not been suspended, debarred, voluntarily excluded or detennined ineligible by any federal agency within the past 3 years; · Does not have a proposed debarment pending; and · Has not been indicted~ convicted, or had a civil judgement rendered against it by a court of competent jurisdiction in any matter involving fraud or of official misconduct within the past 3 years. If there are any exceptions to this certification, insert the exceptions in the following space. Exceptions will not necessarily result in denial of award, but will be considered in determining bidder responsibility. For any exceptions noted above, indicate below to whom it applies, initiating agency, and dates of action. Note: Providing false information may result in criminal prosecution or administrative sanctions. The above certification is part of the Proposal. Signing this Proposal on the signature portion thereof shall also constitute signature of this Certification. 15 PROPOSAL STREET RESURFACING PROJECT MILLER A VENUE AND SOUTH SPRUCE A VENUE ENGINEERING FILE NO. 51-13231- 0701 PROJECT NO. ST-07-1 BID NO. 2445 (THE BIDDER'S EXECUTION ON THE SIGNATURE PORTION OF THIS PROPOSAL SHALL ALSO CONSTITUTE AN ENDORSEMENT AND EXECUTION OF THOSE CERTIFICATIONS WHICH ARE A PART OF THIS PROPOSAL) EQUAL EMPLOYlYJENT OPPORTUNITY CERTIFICATION The bidder /YJ..J.cr3/aJr> amd'/rj ~' Pau~ 1/7(' proposed subcontractor hereby certifies that he has ~, has not , participated in a previous contract or subcontract subject to the equal opportunity clauses, as required by Executive Orders 10925, 11114, or 11246, and that, where required, he has filed with the Joint Reporting Committee, the Director of the Office of Federal Contract Compliance, a Federal Government contracting or administering agency, or the former President's Committee on Equal Employment Opportunity, all reports due under the applicable filing requirements. Note: The above certification is required by the Equal Employment Opportunity Regulations of the Secretary of Labor (41 CFR 60-1.7(b) (1)), and must be submitted by bidders and proposed subcontractors only in connection with contracts and subcontracts which are subject to the equal opportunity clause. Contracts and subcontracts which are exempt from the equal opportunity clause are set forth in 41 CPR 60-1.5. (Generally only contracts or subcontracts of $10,000 or under are exempt.) Currently, Standard Form 100 (EEO-1) is the only report required by the Executive Orders or their implementing regulations. Proposed prime contractors and subcontractors who have participated in a previous contract or subcontract subject. to the Executive Orders' and have not. filed the required reports should note that 41 CPR 60-1.7(b) (1) prevents the award of contracts and subcontracts unless such contractor submits a report covering the delinquent period or such other period specified by the Federal Highway Administration or by the Director, Office of Federal Contract Compliance, D.S. Department of Labor. 16 PROPOSAL STREET RESURFACING PROJECT MILLER A VEN1JE AND SOUTH SPRUCE A VENUE ENGINEERING FILE NO. 51-13231- 0701 PROJECT NO. ST-07-1 BID NO. 2445 CERTIFICATE OF NON-DISCRIMINATION "ON BEHALF OF the bidder making this proposal, the. undersigned certifies that there will be no discrimination in employment with regards to race, color, religion, sex or national origin; that all Federal, State and local directives and executive orders regarding nondiscrimination in employment will be complied with; and that the principle of equal opportunity in employment will be demonstrated positively and aggressively." It'l-/m5hkarzz:i~ 4 ~ / n:'. (Bidder) -J1r By: (Signature of autho . e representative of Bid . /-I. fY},d1oe/ Parum (Type Name) Prt's ~r&- (Title) 7 / /31D/o (Date) 17 - ~'t\\ S:4N g& (0 0 :>-t ..... t:l ~ v 0 C4lIFO-p..~\.~ - AGENDA ITEM #8 Staff ReQort DATE: TO: FROM: SUBJECT: July 26, 2006 Honorable Mayor and City Council Terry White, Director of Public Works AWARD OF CONTRACT AGREEMENT FOR THE PURCHASE OF SODIUM BISULFITE FOR USE AT THE WATER QUALITY CONTROL PLANT RECOMMENDATION It is recommended that the City Council adopt a resolution, to award a contract agreement for the purchase of Sodium Bisulfite Solution to Sierra Chemical Company of Sparks, Nevada, as the lowest responsible bidder in the amount of $0.6347 per gallon. BACKGROUND/DISCUSSION On June 30, 2006, the Public Works Department received three bids in response to a Request for Bids (Bid No. 2447) for the purchase of 25 % sodium bisulfite solution used at the City's Water Quality Control Plant. Sodium bisulfite is introduced to our effluent to neutralize hypochlorite (chlorine) used to disinfect waste water before it is released to the bay. Sodium bisulfite is injected into the effluent at the pumping point where it is mixed with effluent from the other members of the North Bayside System Unit (NBSU) and then sent to the bay. The following is a tabulation of the bids received: BIDDERS BID AMOUNT Sierra Chemical Company, Sparks, NV Basic Chemical Solutions, LLC, Santa Fe Springs, CA Pioneer Americas, LLC, Walnut Creek, CA (no price given) $0.6347 per gallon $0.7518 per gallon $0.0000 per gallon The Water Quality Control Plant (WQCP) has been purchasing bisulfite solution at $0.6603 per gallon, therefore, the award will result in a decrease in the WQCP operating costs for FY 2006-2007 for the purchase of this chemical. FUNDING The WQCP' s budget is funded through Sewer Enterprise Fund 71. The budget for FY 2006-2007 has an allocation of$226,000 for sodium bisulfite and this cost is divided with the other NBSU members. South San Francisco's share is $86,132 (38.1 %), San Bruno's share is $42,809 (18.9%), Staff Report Subject: Award of Sodium Bisulfite Bid Page 2 Burlingame's share is $58,364 (25.8%), Millbrae's share is $21,726 (9.6%), and San Francisco Airport's share is $16,969 (7.5 %). No budget adjustment is necessary. The contract will be for one year. CONCLUSION Acceptance of the bid from Sierra Chemical Company as the lowest responsible bidder for sodium bisulfite at a price of $0.6347 per gallon, fixes the price at a lower rate until July 31,2007. By~ -pJ~ Terry White/ / Director of~blic Works APPfOved:cii '(~J . Nagel City Manager Attachment: Resolution RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AWARDING A BID TO SIERRA CHEMICAL COMPANY FOR THE PURCHASE OF SODIUM BISULFITE SOLUTION IN AN AMOUNT NOT TO EXCEED $226,000 WHEREAS, staff recommends the purchase of sodium bisulfite solution from the lowest responsible bidder, Sierra Chemical Company, in an amount of$0.6347 per gallon; and WHEREAS, the sodium bisulfite is used to process the effluent prior to its discharge to the bay to remove chlorine in accordance with the Regional Water Quality Control Board; and WHEREAS, the Water Quality Control Plant's (WQCP's) budget is funded through the Sewer Enterprise Fund 71; and WHEREAS, the WQCP's budget for fiscal year 2006-2007 has an allocation of $226,000 for the purchase of the sodium bisulfite; and WHEREAS, South San Francisco's share of the cost is (38.1%) at $86,132; San Bruno's share is (18.9%) at $42,809, Burlingame's share (25.8%) at $58,364, Millbrae's share (9.6%) at $21,726, and San Francisco Airport's share (7.5%) at $16,969. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council hereby awards a bid to Sierra Chemical Company for the purchase of sodium bisulfite solution in an amount not to exceed $226,000. * * * * * I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a meeting held on the day of , 2006 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk & ~ . ~~\ o 0 :>-t ~ t:l C') v 0 ~l1Fo"~ Staff Report AGENDA ITEM #9 DATE: July 26, 2006 TO: Honorable Mayor and City Council FROM: Marty VanDuyn, Assistant City Manager SUBJECT: 1. EIR ASSESSING THE ENVIRONMENTAL IMPACTS ASSOCIATED WITH A NEW 101,171 SQUARE FOOT HOME DEPOT STORE, A 24,215 SQUARE FOOT GARDEN CENTER, OPEN AT-GRADE PARKING AND A 2 LEVEL PARKING STRUCTURE. 2. PLANNED UNIT DEVELOPMENT PERMIT ALLOWING PARKING IN A PORTION OF THE FRONT SETBACK. 3. USE PERMIT ALLOWING OUTDOOR SALES, OUTDOOR STORAGE, A USE GENERATING IN EXCESS OF 100 VEHICLE TRIPS PER DAY, UP TO 24 HOUR DAILY OPERATION, AND THE DETERMINATION OF A PARKING RATE. 4. DESIGN REVIEW OF A 101,171 SQUARE FOOT HOME DEPOT STORE, A 24,215 SQUARE FOOT GARDEN CENTER, OPEN AT-GRADE PARKING AND A 2 LEVEL PARKING STRUCTURE. 5. TRANSPORTATION DEMAND MANAGEMENT PLAN REDUCING VEHICLE TRIPS. 6. TYPE C SIGN PERMIT ALLOWING A MASTER SIGN PROGRAM CONSISTING OF NEW BUILDING FA<;ADE SIGNS WITH A TOTAL SIGN AREA of1,103 SQUARE FEET. Address: 900 Dubuque Avenue (APN 015-021-090 & SBE 135-41-41 PAR.1) Zone: Planned Commercial Zoning District (P-C-L) SSFMC Chapters: 20.24, 20.74, 20.81 & 20.86. Owner: Levitz SL San Francisco Applicant: Home Depot Case Nos. P05-0035 (pUD05-0003, UP05-0010, TDMO-0003, SIGNS05-0044, DR05-0020 & EIR05-0003) Staff Report Subject: Home Depot - 900 Dubuque Avenue Page 2 of7 RECOMMENDATION That the City Council follow the Planning Commission recommendation and adopt the attached resolution certifying 1) EIR assessing the environmental impacts associated with a new 101,171 square foot Home Depot store, a 24,215 square foot Garden Center, open at-grade parking and a 2 level parking structure including a Statement of Overriding Considerations; and approving 2) Planned Unit Development Permit allowing parking in a portion of the front setback; 3) Use Permit allowing outdoor sales, outdoor storage, a use generating in excess of 100 vehicle trips per day, up to 24 hour daily operation, and the determination of a parking rate; 4) Design Review allowing a new 101,171 square foot Home Depot store, a 24,215 square foot Garden Center, open at-grade parking and a 2 level parking structure; 5) Transportation Demand Management Plan reducing vehicle trips; and 6) Type C Sign Permit allowing a master sign program consisting of new building fa<;ade signs with a total sign area of 1,103 square feet and adopting the conditions of approval. BACKGROUND / DISCUSSION PROJECT DESCRIPTION The proposed development involves the demolition of the existing Levitz building totaling 126,326 square feet and the construction of a 101,171 square foot one-story Home Depot building material store, an adjoining 24,215 square foot outdoor Garden Center and Nursery, and a small seasonal outdoor sales and display area. Parking for a minimum of 462 passenger vehicles will be provided in a two level garage and an open on-site parking lot. The signs will provide a total sign area of an estimated 1,103 square feet. The home improvement center will offer a range of building supplies, tools and equipment, and associated household and garden items. The store will include outdoor sidewalk sales and display of special products, such as plant and nursery materials, barbeques, outdoor patio furniture, tools and seasonal items in the parking lot area and near the Garden Center. Home improvement centers, as a service to their customers, also commonly have a couple of outdoor independent food vendors near the entry vestibule. While these vendors would be under the garage and not be visible from the street, the Planning Commission is recommending that the City Council not allow any outdoor food vendors. Store hours would be from 6 AM to 10 PM with the option of remaining in operation 24 hours per day. Truck deliveries would occur throughout the day and may include 24 hour deliveries. The store will employee an estimated 150 - 175 full-time and part-time employees primarily derived from the local area. The shifts are likely to number 2 to 3 per day with an average of 50 to 75 employees per shift. GENERAL PLAN AND ZONING The General Plan Land Use designation of the project site is Business Commercial and the site is situated in the Planned Commercial (P-C) Zoning District. The proposed development is consistent with both the General Plan and the Zoning Ordinance. The General Plan principles, policies and goals and the East of 101 Area Plan (specifically Land Use Policy LU-4a) strongly encourage the retention of existing Staff Report Subject: Home Depot - 900 Dubuque Avenue Page 3 of7 retail uses especially along the US 101 frontage. The P-C Zoning (SSFMC Chapter 20.24.020) allows retail uses. DEVELOPMENT STANDARDS The building generally complies with current City development standards as displayed in the table contained in Appendix A. A brief review of the key development requirements including parking, front setback reduction, landscaping, signs, and Transportation Demand Management are contained in the following subsections. For more detailed explanation see the staff reports prepared for the Planning Commission. Parking The SSFMC Section 20.74.060 (g) Multi-Tenant Retail/Commercial, requires parking to be provided at a rate of 1 parking space per each 200 square feet. Applying this rate to the development would result in a parking requirement of 632 spaces. The applicant has conducted a parking study of several of the local Home Depot facilities and in accordance with the study results, proposes to reduce the parking rate to 3.7/1,000 SF and a total of 462 spaces. The parking study is attached to this staff report. The Institute of Traffic Engineers (ITE) has also recently examined the parking requirements for big box retail stores and identifies average peak range rates of between 2.43/1,000 SF to 3.40/1,000 SF and a peak hour rate range of between 3.20/1,000 SF to 4.40/1,000 SF. The SSFMC Chapter 20.74 allows the City to determine separate parking rates for unique uses. City Staff supports the proposed rate of 3.7/1,000 SF, because it is supported by both the applicant's parking data and falls within the ITE parking range for big box retail uses. Planned Unit Development The development generally complies with the minimum setbacks required for a commercial development. The applicant is requesting an exception vis-a.-vis a Planned Unit Development Permit (PUD) to reduce the minimum required front setback of20 feet to 6 feet accommodating a few open at- grade parking spaces. This is necessary owing to the unusua110t configuration, the street widening to allow left turn pockets and to provide sufficient parking. The SSFMC allows reductions where the City finds that the community benefit outweighs the exception (SSFMC Chapter 20.84). City Staff supports the reduction as the development will provide services and a range of products not commonly found either in the community or in one location and will provide job opportunities and significant economic benefits. Landscaping The proposed landscaping of 3,320 square feet complies with the City's minimum requirement of 10% of the total site area (SSFMC Section 20.73.040). The area between the property line and the sidewalk along Dubuque Avenue is proposed to be landscaped to a depth of 6 feet between the parking stalls and Staff Report Subj ect: Home Depot - 900 Dubuque Avenue Page 4 of7 the property line. The garage design has also been revised to incorporate landscaping of the upper garage deck. Signs The signs consist of new fac;ade signs with a total sign area of 1,103 square feet. A Type C Sign Permit is required because the total sign area exceeds 100 square feet (SSFMC Chapter 20.86). The total sign area is in keeping with the site size and the nature of the use. The pylon sign has been eliminated and replaced with a tower integrated with the building and garage structure. The signs are reflective of the building design and color scheme. Transportation Demand Management Plan The development requires a Transportation Demand Management Plan (TDM) because it will generate in excess of 100 average daily vehicle trips (SSFMC Chapter 20.120). Since the development may also generate 100 vehicle trips in the peak commute hour, the TDM Plan was required to be reviewed by the San Mateo County City and County Association of Governments (C/CAG). The TDM Plan would by practicality be focused on the store employees and designed to achieve a minimum 28% alternative mode use, consistent with the request to allow a floor area ration (FAR) of 0.31. The TDM Plan has been accepted by C/CAG in a letter dated July 18, 2006. Both the home improvement parking rate and the TDM Plan are consistent with the City's General Plan, TDM policies. The Preliminary TDM Plan and the C/CAG letter are attached. DESIGN REVIEW BOARD The proposed development was reviewed by the Design Review Board (DRB) at their meetings of March 15,2005 and May 17, 2005. At the fIrst meeting the Board suggested increasing the building detailing, increasing the garage height, e1imnating the pylon sign, using plant species that are better suited to the local climate and increasing the number of trees. At the second meeting the Board determined that the comments had been addressed, suggested that the signs be constructed of individually illuminated channe11etters, screen all roof mounted equipment and recommended approval. PLANNING COMMISSION The proposed development was reviewed by the Planning Commission at their May 18, June 1 and July 6, 2006 meetings. At the fIrst meeting the Commissioners expressed general support for the Alternative Plan (which expanded the on-site parking), but directed the applicant to improve the visual appearance, making the building and garage appear less as a warehouse and more as a landmark retail facility, eliminating the pole sign and enhancing the garage access. At the June 1,2006 meeting the Planning Commission reviewed the revised plans (based on the former Alternative Plan) and suggested more changes including screening of the loading area. Staff Report Subject: Home Depot - 900 Dubuque Avenue Page 5 of7 At the July 6, 2006 meeting the Commissioners reviewed the revised plans and recommended approval with a unanimous vote, but they expressed concern that the building and site plan could benefit from additional design improvements. The Commissioners added conditions of approval regarding further screening of the loading area adjacent to Dubuque Avenue, increasing the number of trees and reducing the tree spacing adjacent to the loading area screen wall, increasing the loading screen wall height, further articulation of the pallet enclosure walls, adding more trellises on the upper parking deck, requiring an interim screening element for the wall mounted trellises until the vines have adequately covered the trellises, requiring the cart storage enclosure adjacent to the building entry to complement the building, requiring a site maintenance plan and limiting outdoor storage to the garden center and seasonal sales area, not allowing outdoor food vendors, and requiring that the loading area design be modified to resemble more of a plaza when not in use as a loading area. ENVIRONMENTAL DOCUMENT City Staff has employed the services of Lamphier and Gregory to prepare and circulate an Environmental Impact Report (EIR) for public comment. The document was circulated for 45 days for public comment from January 31, 2006 to March 17,2006, in accordance with the California Environmental Quality Act (CEQA). The Planning Commission also conducted a public hearing on March 2, 2006 allowing public comments; however, the only comments made were by the Planning Commissioners. Written comments were received from a couple of agencies including Caltrans. Written responses to comments are contained in the FEIR. Caltrans has continued to comment and another letter was received June 1,2006. The comments do not require any changes to the EIR. The City's consultant and City Staff have prepared a response attached to this staff report. The key environmental issue identified by City Staff is traffic. The site plan was revised during the Planning Commission review improving both site access and circulation and thereby reducing some traffic impacts. Mitigation measures are proposed to reduce most of the impacts to less than a significant level. The required Mitigation Monitoring Program ensuring implementation of the identified measures is attached. Due to the revised site plans, staffhas revised mitigation measure 7-1B and 7-2B to allow a broader range of design solutions for storm water drainage. Because the proposed development will contribute to long-term cumulative traffic impacts, CEQA requires the adoption of a Statement of Overriding Considerations identifying that the proj ect benefits outweigh the cumulative unmitigateable significant impacts. Caltrans, City Staff and the traffic consultant have determined that the required improvements to accommodate the cumulative traffic impacts are impracticable and/or financially infeasible. Improvement of traffic flow on US 101 would require substantial improvements and alterations including new traffic lanes, expansion of the Oyster Point interchange and upgrades to mass transit - costing in the tens if not hundreds of millions of dollars. Clearly, these types of improvements and costs are beyond local capabilities and require long-term regional solutions. Staff Report Subject: Home Depot - 900 Dubuque Avenue Page 60f7 Among the many economic benefits accruing to the local community are the following: ANNUAL SSF TAX REVENUES SSF IMP ACT FEES Sales Tax $ 400,000 Traffic & Sewer $ 950,000 Property Tax $ 28,000 SSFUSD Fees $ 33,386 Building Permits $ 75,000 Total $ 428,000 Total $1,058,386 Additional benefits include construction contracts estimated at a minimum of$15,000,000, replacement of the existing aging 40 year old warehouse type building and removal of one ofthe largest pole signs in the community, new sidewalks and left-turn pockets along Dubuque Avenue, the provision of goods and services not generally available in the community or in one location, and the creation of employment opportunities for 150 - 175 full-time and part-time jobs. The applicants have also voluntarily offered to enter into a Local Hiring Preference Agreement with the City to facilitate employment oflocal residents. Few local communities have such agreements. The City Attorney has reviewed the agreement and has determined that it is reasonable and meets the intent of the City. A copy of the draft agreement is attached. In City Staff s estimation the economic benefits associated with the development alone are locally significant and when combined with the replacement of an aging outdated building with an attractively designed building that more readily blends with the quality of recent developments, outweigh the small cumulative traffic impacts associated with the retail development. CONCLUSION/RECOMMENDATION: The proposed development complies with the General Plan, the Zoning Code and the City's development requirements. City Staff recommends that the City Council follow Planning Commission's recommendation and adopt a resolution to certify 1) EIR assessing the environmental impacts associated with a new 101,171 square foot Home Depot store, a 24,215 square foot Garden Center, open at-grade parking and a 2 level parking structure, including a Statement of Overriding Consideration; and approve 2) Planned Unit Development Permit allowing parking in a portion of a front setback; 3) Use Permit allowing outdoor sales, outdoor storage, a use generating in excess of 100 vehicle trips per day, up to 24 hour daily operation, and the determination ofa parking rate; 4) Design Review allowing a new 101,171 square foot Home Depot store, a 24,215 square foot Garden Center, open at-grade parking and a 21eve1 parking structure; 5) Transportation Demand Management Plan reducing vehicle trips; and 6) Type C Sign Permit allowing a master sign program consisting of new building fayade signs with a total sign area of 1,103 square feet, subj ect to adopting the conditions of approval. Staff Report Subject: Home Depot - 900 Dubuque Avenue Page 7 of7 By: t!:~{w Assistant City Manager By: MD/SC ATTACHMENTS: Draft City Council Resolution Planning Commission Resolution Draft Conditions of Approval J oint City Council and Planning Commission Study Session Minutes October 5, 2005 Planning Commission Minutes May 18, 2006 June 1,2006 July 6,2006 Design Review Board Minutes March 15,2005 May 17, 2005 Planning Commission Staff Reports May 18, 2006 June 1,2006 July 6, 2006 Appendix: A Draft Local Hiring Agreement Applicant's Letter of July 20, 2006 Preliminary TDM Plan C/CAG Letter of July 17, 2006 Ca1trans Letter and City Staff Response FEIR DEIR (Previously distributed to the City Council will be available at the City Council meeting and is available at City Hall Permit Center) Plans RESOLUTION NO. CITY COUNCIL CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO, RECOMMENDING CERTIFICATION OF THE FINAL ENVIRONMENT AL IMPACT REPORT, INCLUDING SIGNIFICANT AND POTENTIALLY SIGNIFICANT IMPACTS, FINDINGS CONCERNING ALTERNATIVES, A STATEMENT OF OVERRIDING CONSIDERATIONS, AND A MITIGATION MONITORING PROGRAM, AND APPROVAL OF ENTITLEMENTS INCLUDING THE ENVIRONMENTAL IMPACT REPORT, A PLANNED UNIT DEVELOPMENT, USE PERMIT, DESIGN REVIEW, TRANSPORTATION DEMAND MANAGEMENT PLAN, AND TYPE C SIGN PERMIT, AND AUTHORIZATION FOR CITY MANAGER TO APPROVE HOME DEPOT'S PROPOSED LOCAL HIRING AGREEMENT WHEREAS, Home Depot has applied to demolish the existing Levitz furniture building at 900 Dubuque Avenue and in its place construct a 101,171 square foot Home Depot store, a 24,215 square foot Garden Center, with open at-grade parking and a two-level parking structure ("Project"); and, WHEREAS, the entitlements proposed would provide for (1) construction of the Project; (2) a Planned Use Development allowing parking in a portion of a front setback; (3) a Use Permit allowing outdoor sales, outdoor storage, a use generating in excess of 100 vehicle trips per day, up to 24 hours daily operation and determination of a parking rate; (4) Design Review allowing a new 101,171 square foot Home Depot store, a 24,215 square foot Garden Center, with open at- grade parking and a two-level parking structure; (5) Transportation Demand Management Plan reducing vehicle trips; and (6) Type C Sign Permit allowing a master sign program consisting of new building fa<;ade signs with a total sign area of 1,103 square feet, subject to adopting the conditions of approval; and, WHEREAS, the Home Depot has proposed a Local Hiring Agreement that will contribute to an increase in employment opportunities for local citizens; and WHEREAS, a Notice of Preparation for a Draft Environmental Impact Report ("DEIR") was issued on February 1, 2006, informing all interested parties of the City's intention to prepare an Environmental Impact Report; and, WHEREAS, a DEIR was prepared evaluating the significant and potentially significant impacts of the development, the growth inducing impacts of the development, the cumulative impacts of the development, and alternatives to the proposed project; and, 1 -1- WHEREAS, the DEIR analyzes two alternatives to the Project, including a no project alternative; and, WHEREAS, the public review period on the DEIR commenced on January 31,2006, and closed on March 17,2006; and, WHEREAS, the City prepared responses to comments on environmental issues received during the public review period and at the public hearings, which responses clarify and amplify the infonnation contained in the DEIR, providing a good faith reasoned analysis supported by factual infonnation. The comments and responses to comments were published in a Final Environmental Impact Report ("FEIR") dated May 2006, which incorporated the DEIR; and, WHEREAS, copies of the FEIR were distributed or otherwise made available to the Planning Commission, responsible agencies, and other interested parties; and, WHEREAS, based on the FEIR and other information in the record, there are impacts of the Project which are not environmentally significant and which require no fmdings or mitigation upon approval; and, WHEREAS, based on the FEIR and other information in the record, there are certain significant and potentially significant environmental impacts of the Project which could be mitigated to a level of insignificance, therefore mitigation fmdings are required pursuant to CEQA ~21081 and CEQA Guidelines ~15091 upon Project approval; and, WHEREAS, based on the FEIR and other information in the record, there are significant and potentially significant impacts of the Project which could not be mitigated to a level of insignificance, therefore the alternatives to the Existing Project were examined to determine if they would avoid any of the unmitigated significant impacts; and, WHEREAS, based on the FEIR and other information in the record, there are significant and potentially significant environmental impacts of the Project which could not be reduced to a level of insignificance, therefore a Statement of Overriding Considerations is required upon Project approval; and, WHEREAS, CEQA 921081.6 requires that where mitigation findings are made for significant and potentially significant environmental impacts, a mitigation monitoring and reporting program shall be adopted upon Project approval to ensure compliance with the mitigations during project implementation; and, WHEREAS, the above-referenced mitigation and monitoring program shall be submitted concurrently with the precise plan for the Home Depot site; and WHEREAS, the location and custodian of the documents which constitute the record of proceedings upon which the City's decision on entitlements relating to the FEIR is the City of South San Francisco Planning Division, 315 Maple Avenue, South San Francisco; and, '} -2- WHEREAS, the mitigation measures identified in the FEIR will be applied as conditions of Project approval. NOW, THEREFORE, BE IT RESOLVED that the foregoing recitals are true and correct and made a part of this resolution, and that the City Council of the City of South San Francisco hereby adopts the following findings based upon the entire record for the Home Depot development, including without limitation, the South San Francisco General Plan, the Home Depot initial study and Environmental Impact Report, and the comments received in response the Draft Environmental Impact Report, site plans, floor plans and elevations revised April 4, 2006 prepared by Greenberg Farrow, the proposed Planned Unit Development, the proposed Use Permit, the proposed Transportation Demand Management Plan, the proposed Type C Sign Permit, the Design Review Board meeting and minutes of March 15, 2005, the Design Review Board meeting and minutes of May 17, 2005, the Special Joint City Council and Planning Commission study session of October 5, 2005 and testimony and materials submitted at this meeting, the Planning Commission staff reports of May 18,2006, June 1,2006, and July 6,2006, and the Planning Commission meetings of May 18,2006, June 1,2006, and July 6,2006, and testimony and materials received at the City Council meeting of July 26, 2006: 1. Environmental Impact Report. As required by the California Environmental Quality Act (CEQA) [Pub. Res. Code SS 21000 et seq.], the following [mdings are made in approval of a Final Environmental Impact Report and Statement of Overriding Considerations, allowing development of a home improvement retailer situated at 900 Dubuque Avenue in the Planned Commercial Zoning district, subject to making the findings of approval and, based on public testimony and the materials submitted to the City of South San Francisco Planning Commission which include, but are not limited to: Site plans, floor plans and elevations revised Apri14, 2006 prepared by Greenberg Farrow; the Home Depot Initial Study and Environmental Impact Report; Design Review Board meeting of March 15,2005; Design Review Board meeting of May 17,2005; Design Review Board minutes of March 15,2005; Design Review Board minutes of May 17,2005; the Planning Commission's public hearing on March 2, 2006, a meeting with CalTrans on April 27, 2006, comments received on the Draft Environmental Impact Report and incorporated into the Final Environmental Impact Report, Planning Commission staff reports of May 18, 2006, June 1,2006, and July 6,2006, and Planning Commission meetings of May 18,2006, June 1,2006, and July 6, 2006, and testimony and materials received at the City Council meeting of July 26, 2006: (a) The key environmental issue identified by City staff is traffic. Mitigation measures are proposed to reduce many of the identified impacts to a less than significant level. However, significant cumulative traffic impacts attributable to the development will occur in the year 2020 and cannot be feasibly mitigated. The project proponent has also revised the site plan to reduce some of the impacts and improve circulation. The plans now reflect the provision of a left-turn 3 -3- pocket on Dubuque Avenue providing better and safer site access. The applicant is also proposing to improve on-site circulation as suggested by the City's traffic consultant and is proposing to increase the amount of parking; both of these improvements are not considered impacts and do not require mitigation, but will help ease on-site congestion. (b) A Statement of Overriding Considerations has been prepared for those significant impacts which are unavoidable. The Statement of Overriding Considerations concludes that significant and unavoidable impacts resulting from the development, specifically, traffic impacts, are outweighed by the benefits of the Home Depot development. Approval of the proj ect will generate a new source of significant tax revenue for the City. The Home Depot store is estimated to generate gross sales upwards of $40 million per year, resulting in a revenue stream of approximately $400,000 per year to the City. The Project is expected to employ an estimated 150 to 175 full-time and part-time employees, primarily derived from local communities. The Project will provide retail sales of building supplies, lumber, hardware and associated items for construction, landscaping, and home improvement projects in the area. Additionally the project will provide rental tools and equipment to be leased for such projects. Finally, the Project is generally consistent with objectives and requirements of the City's General Plan and the Zoning Code. 2. Planned Unit Development. As required by the Planned Unit Development Procedures [SSFMC Chapter 20.84], the following findings are made in approval of a Planned Unit Development (PUD05-0003) allowing parking in a portion of the minimum required front setback, situated at 900 Dubuque A venue in the Planned Commercial Zoning district, subject to making the findings of approval and, based on public testimony and the materials submitted to the City of South San Francisco Planning Commission which include, but are not limited to: Site plans, floor plans and elevations revised April 4, 2006 prepared by Greenberg Farrow; the Home Depot Initial Study and Environmental Impact Report; Design Review Board meeting of March 15,2005; Design Review Board meeting of May 17,2005; Design Review Board minutes of March 15,2005; Design Review Board minutes of May 17, 2005; Planning Commission staff reports of May 18, 2006, June 1, 2006, and July 6,2006, and Planning Commission meeting of May 18,2006, June 1,2006, and July 6, 2006, and testimony and materials received at the City Council meeting of July 26,2006: (a) The site is physically suitable for a home improvement center. The development is similar in style to existing adjacent buildings and shares a similar floor area ratio and will reinforce a commercial environment of sustained desirability and stability by matching the development quality and design. Conditions of approval require that the new building and site improvements conform to the City's 4 -4- development standards. (b) The proposed exception allowing a reduction in part of the front setback adjacent to the open at-grade parking lot is acceptable in that the planned development will be of general benefit to the community by providing a service and diversity of products not otherwise available in the City or in anyone location. The exception will not unreasonably be detrimental to the health, safety, welfare, comfort or convenience of persons working vicinity of the property in that the development provides for improved access and circulation and is of a design that is a significant improvement over the existing building and site improvements and is a better fit with the existing nearby buildings. (c) The project complies with the provisions of the California Environmental Quality Act. An Environmental Impact Report was prepared and circulated for public comments. Mitigation measures are identified to reduce impacts to a level less than significant. A Statement of Overriding Concerns is proposed due to cumulative traffic impacts associated with the development. A Mitigation Monitoring Program is required to ensure that all mitigation measures are implemented. '.'f.. (d) The proposed development is consistent with the General Plan Land Use Element designation of the site as Business Commercial. The proposed project is consistent with the General Plan which designates the property Business Commercial and the East of 101 Area Plan. Retention of existing retail development is a key principle of the plan. Policy LU-4a supports development of retail use in areas designated "Planned Commercial". The proposed development's floor area ratio (FAR) of 0.38 is well below the maximum FAR of 0.5 allowed in the Business Commercial land use designation. (e) The proposed retail development will not be adverse to the public health, safety or general welfare of the community, or unreasonably detrimental to surrounding properties or improvements. The development is designed to comply with the City's Design Guidelines and the architectural theme of the surrounding commercial developments. Conditions of approval are attached which will ensure that the development complies with local development standards and requirements. (f) The City's Design Review Board determined that the proposed building design and site improvements comply with the City's Design Guidelines and recommended approval of the proposed development. 3. Use Permit. As required by the "Use Permit Procedure" (SSFMC Chapter 20.81), :; -5- the City Council makes the following findings in support of the request to approve a Use Permit (up05-0010) allowing outdoor sales, outdoor storage, a use generating in excess of 100 vehicle trips per day, up to 24 hour daily operation, and the determination of a parking rate, situated at 900 Dubuque Avenue, in the Planned Commercial Zone District, based on public testimony and the materials submitted to the City of South San Francisco Planning Commission which include, but are not limited to: Site plans, floor plans and elevations revised April 4,2006 prepared by Greenberg Farrow; the Home Depot Initial Study and Environmental Impact Report; Design Review Board meeting of March 15, 2005; Design Review Board meeting of May 17, 2005; Design Review Board minutes of March 15, 2005; Design Review Board minutes of May 17,2005; Planning Commission staff reports of May 18,2006, June 1,2006, and July 6,2006, and Planning Commission meeting of May 18,2006, June 1, 2006, and July 6, 2006, and testimony and materials received at the City Council meeting of July 26, 2006: (a) The proposed retail development allowing outdoor sales, outdoor storage, generating in excess of 100 vehicle trips per day, up to 24 hour daily operation, and the determination of a parking rate not identified in the SSFMC will not be adverse to the public health, safety, or general welfare of the community, or unreasonably detrimental to surrounding properties or improvements. The site is physically suitable for the type and intensity of the land use being proposed, and the compatibility with adjacent developments was thoroughly analyzed in the Environmental Impact Report. Conditions of approval and mitigation measures are required to ensure protection of public safety, reduce traffic, reduce parking demand and ensure compliance with Federal, State and City development and environmental standards. (b) The proposed retail development allowing outdoor sales, outdoor storage, generating in excess of 100 vehicle trips per day, up to 24 hour daily operation, and the determination of a parking rate not identified in the SSFMC is consistent with the General Plan which designates the property Business Commercial and the East of 11 Area Plan. Retention of existing retail development is a key principle of the plan. Policy LU-4a supports development of retail use in areas designated "Planned Commercial". The proposed development's floor area ratio (FAR) of 0.38 is well below the maximum FAR of 0.5 allowed in the Business Commercial land use designation. ( c) The proposed retail development allowing outdoor sales, outdoor storage, generating in excess of 100 vehicle trips per day, up to 24 hour daily operation, and the determination of a parking rate not identified in the SFMC meets or exceeds the minimum standards and requirements of the City's Zoning Ordinance which designates the site (\ -6- Planned Commercial. Retail use is allowed subject to an approved Use Permit. The proposed outdoor sales and storage is commonly associated with home improvement centers retail development. The number of parking spaces is adequate to serve the proposed retail use based on parking data for similar home improvement centers, the Institute of Traffic Engineers data and that a TDM Plan will be required. Conditions of approval are required to ensure compliance with the City's development standards, reduce parking demand, provide security and ensure that the site is well maintained. (d) The proposed project is consistent with the goals and objectives of the Redevelopment Program for the Downtown/Central Redevelopment Project Area, and specifically with the following: 1. To create and develop local job opportunities and to preserve the area's existing employment base. 11. To replan, redesign and develop areas which are stagnant or improperly used. (e) An Environmental Impact Report has been prepared for the project in accordance with the provisions of CEQA. Mitigation measures are required which will reduce all identified impacts to a level less than significant. A Mitigation Monitoring Program is required to ensure that all mitigation measures are implemented. A Statement of Overriding Consideration is required because of cumulative traffic impacts associated with the development. 4. Tvpe C Sign Permit. As required by the "Sign Permit Procedures" (SSFMC Chapter 20.86), the following findings are made in approval of a Type C Sign Permit (SignsOS.0044) allowing a master sign program consisting of new building fa9ade signs with a total sign area of 1,103 square, situated at 900 Dubuque Avenue, based on public testimony and the materials submitted to the City of South San Francisco Planning Commission which include, but are not limited to: sign plans revised Apri14, 2006 prepared by Greenberg Farrow; the Home Depot Initial Study and Environmental Impact Report; Design Review Board meeting of March 15, 2005; Design Review Board meeting of May 17,2005; Design Review Board minutes of March 15, 2005; Design Review Board minutes of May 17, 2005; Planning Commission staff reports of May 18,2006, June 1, 2006, and July 6,2006, and Planning Commission meeting of May 18,2006, June 1,2006, and July 6, 2006, and testimony and materials received at the City Council meeting of July 26, 2006: (a) The master sign program consisting of a building fa<;ade sign and a double faced pole sign with a total sign area of 960 square feet, situated at 900 Dubuque Avenue is consistent with the City's General Plan Land Use Element, which designates this site for Business 7 -7- Commercial and the City Design Guidelines, which encourages master sign programs. (b) The master sign program consisting of a building fayade sign and a double faced pole sign with a total sign area of 960 square feet, situated at 900 Dubuque Avenue is consistent with the requirements of SSFMC Chapters 20.76 and 20.86, which requires an approved Type C Sign Permit. The size, materials, colors, graphic style, illumination and other sign features are in keeping with the visual character of the area and are reflective of the building design and exterior finishes. The signs are of a straight forward design and are clear and readable. The City's Design Review Board recommended approval of the sign program at their meeting of May 17, 2005. ( c) The master sign program consisting of a building fayade sign with a total sign area of 1,103 square feet, situated at 900 Dubuque Avenue will not be adverse to the public health, safety or general welfare of the community, nor detrimental to surrounding properties or improvements. The existing pylon sign, while being retained, will be significantly reduced in height and size and will be smaller than the billboard signs in the immediate vicinity. The pole sign and the total sign area are needed due to the unique nature of the use and site and orientation to the regional traveler. 5. Transportation Demand Management Plan. As required by the Transportation Demand Management Procedures [SSFMC Section 20.120.070], the following findings are made in approval of the Preliminary Transportation Demand Management Plan, based on public testimony and the materials submitted to the City of South San Francisco Planning Commission which include, but are not limited to: Site plans, floor plans and elevations revised April 4, 2006 prepared by Greenberg Farrow; the Home Depot Initial Study and Environmental Impact Report; Design Review Board meeting of March 15,2005; Design Review Board meeting of May 17,2005; Design Review Board minutes of March 15, 2005; Design Review Board minutes of May 17, 2005; Planning Commission staff reports of May 18,2006, June 1,2006, and July 6, 2006, and Planning Commission meeting of May 18,2006, June 1,2006, and July 6, 2006, and testimony and materials received at the City Council meeting of July 26, 2006: (a) The proposed Preliminary Transportation Demand Management Plan measures are feasible and appropriate for the retail development located at 900 Dubuque A venue with up to 24 hour operation in the Planned Commercial Zone District adjacent to other commercial uses. (b) The proposed performance guarantees, consisting of an Annual and Triennial Reviews, will ensure that the target alternative mode use established for the project of28% based on a Floor Area Ratio of 0.38 [SSFMC 20.120.030 (C)] will be achieved and maintained. !l -8- NOW, THEREFORE, BE IT FURTHER RESOL YED that the City Council of the City of South San Francisco does hereby: A. Approves, in accordance with the California Environmental Quality Act, of the Final Environmental Impact Report and the following, assessing environmental impacts of the proposed development of a home improvement retail store: i. Findings Concerning Alternatives attached hereto as Exhibit A; ii. The Statement of Overriding Considerations attached hereto as Exhibit B' -, iii. The Mitigation Monitoring Program attached hereto as Exhibit C. B. Approves the Planned Unit Development allowing parking in a portion of the minimum required front setback, situated at 900 Dubuque Avenue in the Planned Commercial Zoning district. C. Approves the Use Permit allowing outdoor sales, outdoor storage, a use generating in excess of 100 vehicle trips per day, up to 24 hour daily operation, and the determination of a parking rate, situated at 900 Dubuque Avenue, in the Planned Commercial Zone District. D. Approves the Type C Sign Permit allowing a master sign program consisting of new building fayade signs with a total sign area of 1,103 square feet, situated at 900 Dubuque Avenue. E. Approves the Transportation Demand Management Plan concerning the Home Depot development to be situated at 900 Dubuque Avenue, in the Planned Commercial Zone District. F. Authorize the City Manager to execute on behalf of the City, Home Depot's proposed Local Hiring Agreement, attached hereto as Exhibit D. BE IT FURTHER RESOLVED that the resolution shall become effective immediately upon its passage and adoption. * * * * * * * I hereby certify that the foregoing resolution was adopted by the City Council for the City of South San Francisco at the regular meeting held on the . day of , 2006 by the following vote: AYES: 9 -9- NOES: ABSTENTIONS: ABSENT: ATTEST: City Clerk 10 -10- Exhibit A Findings Concerning Alternatives CEQA requires that an EIR identify alternatives to a project as proposed. CEQA Guidelines section 15126.6, subdivision (a), specifies that the EIR consider alternatives that would feasibly attain most of the basic objectives of the project, but would avoid or substantially lessen many of the significant environmental effects of the project. "Feasible" means capable of being accomplished in a successful manner within a reasonable period of time, taking into account economic, environmental, social, and technological factors. The Home Depot EIR identified two alternatives: No Project and 0.50 Floor Area Ratio Alternative. The following findings are for both the No Project and 0.50 Floor Area Ration Alternative as discussed in the EIR. The City Council hereby finds that the two alternatives identified and described in the EIR were considered and finds them to be infeasible for the specific economic, social, or other considerations set forth below pursuant to CEQA section 21081 (c). No Proiect Alternative (EIR Page 13-1) Under the No Project Altemative the Project site would remain as it is today-an existing commercial building occupied by the Levitz Furniture Company, and used to warehous~ and sell furniture. This Alternative would maintain the site's Planned Commercial General Plan use designation, but the retail use would not be as intense or economically beneficial to the City as it would be if the Project as proposed were implemented. The No Project Alternative is not consistent with the East of 101 Area Plan's policy towards increasing property tax revenues and generating new sources of sales tax revenue. Nor is it consistent with the Plan's policy of improving streetscape along Dubuque avenue. The No Project Alternative would not result in the environmental impacts described in this EIR, particularly those identified as significant and unavoidable. There would be approximately 185 fewer AM Peak Hour trips and 350 fewer PM Peak Hour trips, resulting in lower air pollutant vehicle emissions and traffic levels of service. The No Project site would also not introduce several of the hazardous materials that would be stored and used on the site as part of the Project, and would preserve the seven protected trees that will otherwise need to be replaced. Findinq: This alternative is found to be infeasible and rejected for the following reasons: 1. The City Council specifically finds that the No Project Alternative is rejected as an alternative because it would not achieve any of the Project's objectives. 2. Though this alternative would avoid most of the significant impacts of the Project, this alternative would not generate additional tax revenue. 3. The No Project Alternative is inconsistent with at least some of the policies of the East of 101 Area Plan. - 11- 0.50 Floor Area Ratio Alternative (EIR Page 13-2) The 0.50 Floor Area Ratio Alternative proposes reducing the square footage of the Home Depot store from 125,794 square feet to 63,897 square feet. Such a reduction would decrease the floor area ratio (FAR) from 0.38 to 0.19. The applicant has indicated that it would not be economically feasible for Home Depot to occupy such a small building, based on its standard store size and business model-the average Home Depot store is about 110,000 square feet. The reduced development intensity would produce fewer vehicle trips and less air pollutant emissions. Fewer vehicle trips would result in better freeway Levels of Service and better Levels of Service on street intersections near the Project site. It would not however, completely mitigate the significant impacts detailed in the Transportation and Circulation Chapter. The 0.50 Floor Area Ratio Alternative would still provide extensive landscaping on the site, and would also require a smaller amount of vehicle parking facilities. However, this Alternative would effectively prohibit the Applicant from occupying the site, and alternate retail uses-especially at half the proposed FAR- would not generate an equivalent economic benefit for the City. Findinq: This alternative is found to be infeasible and rejected for the following reasons: 1. The City Council specifically finds that the 0.50 Floor Area Ratio Alternative is rejected as an alternative because it would not achieve most of the basic objectives of the Project. 2. As this alternative would prohibit the Applicant from occupying the site, the alternative would not satisfy the home improvement market needs in South San Francisco and the surrounding area. 3. This alternative would not successfully mitigate all of the significant impacts, but would greatly reduce the economic benefits to the City. -12- Exhibit B Statement of Overriding Considerations 1~ -13- STATEMENT OF OVERRIDING CONSIDERATIONS 1. General. Pursuant to CEQA Guidelines section 15093, the City Council of the City of South San Francisco adopts a Statement of Overriding Considerations for those impacts identified in the Home Depot Project ("Project") EIR as significant and unavoidable. (Resolution .) The City Council carefully considered each impact in its decision to approve development of the Home Depot Project. The City Council is currently considering the Home Depot Project and accompanying EIR. The Project proposes demolition of the Levitz Furniture building and the construction of a 101,171 square foot Home Depot home improvement warehouse, an adjoining 24,215 square foot Garden Center, and a two-level parking structure providing 490 parking spaces on a 7.62 acre parcel. The City prepared an EIR for the Home Depot Project which identified environmental impacts that were determined to be less than significant or could be mitigated to a less than significant level. The EIR also identified some significant traffic-related impacts that could not be mitigated or avoided. The proposed development is for construction of a Home Depot store for retail sales of building supplies, lumber, hardware and associated items, such as appliances, barbeques, pool accessories, home furnishings, patio furniture, and other home improvement and maintenance materials. The Project will also provide rental tools and equipment to be leased for construction, landscaping, and home improvement projects. Approximately 150 to 175 full-time and part-time employees will be hired to staff the store. These employees will come from the City of South San Francisco and surrounding communities. The City Council adopts this Statement of Overriding Considerations for development approvals for the Home Depot Project. Pursuant to a 2002 court decision, the City Council must adopt overriding considerations for the impacts that apply to the Home Depot Project, 1 which are identified in the Home Depot Project EIR as significant and unavoidable. The City Council believes that many of the unavoidable environmental effects in the Home Depot Project EIR will be substantially lessened to a less than significant level by the proposed mitigation measures and by the environmental protection measures to be adopted through the Home Depot Project approvals. Even with mitigation, however, the City Council recognizes that the implementation of the project carries with it unavoidable adverse effects as identified in the Home Depot Project EIR. The City Council specifically finds that to the extent that the identified adverse or potentially adverse impacts for the project have not been mitigated to acceptable levels, there are specific economic, social, environmental, land use, and other considerations that support approval of the project. 2. Unavoidable Shmificant Adverse Impacts. The following unavoidable significant impacts have been identified in the Home Depot Project ErR.. 1 "[P]ublic officials must still go on the record and explain specifically why they are approving the later project despite its significant unavoidable impacts." Communities for a Better Environment v. Cal. Resources Aoencv (2002) 103 Cal.App.4th 98, 125. 829135-1 -14- Impact 11.2 - Year 2006 Intersection Level of Service Impacts. While nearly all intersections analyzed would maintain acceptable operation during AM and PM peak hour conditions, the Oyster Point Bou1evardlDubuque Avenue/U.S. 101 Northbound on- ramp intersection would experience significant increase in traffic volume. Level of Service (LOS) grades for this intersection would drop from an E to an F, and volume would increase by 4.3%.2 There are no feasible physical improvements that the City could undertake at this intersection to improve operation to Base Case Conditions or better. Impact 11.5 - Year 2006 Vehicle Queuing Impacts 50th Percentile Queue. The Dubuque Avenue northbound approach left turnJthrough lanes would receive more than a two percent increase in traffic (19.5%), with significant Base Case queuing in the left turn lane. Acceptable Base Case queuing in the combined left/through lane would also be increased beyond the available storage with the addition of Project traffic. There are no feasible physical improvements that the City could undertake at this intersection to reduce queuing to Base Case Conditions or better. 95th Percentile Queue. The Dubuque Avenue northbound approach left turn lane would receive more than a two percent increase in traffic (9.6%) with unacceptable Base Case queuing during the AM peak hour. During the PM peak hour, the Dubuque Avenue northbound approach left turn lane and through/left turn lanes would receive more than a two percent increase in traffic (19.5%) with unacceptable Base Case queuing in both lanes. There are no feasible physical improvements that the City could undertake at this intersection to reduce queuing to Base Case Conditions or better. Impact 11.6 - Year 2020 Intersection Level of Service Impacts. During the PM peak hour volume at the Oyster Point Bou1evardlDubuque Avenue/U.S. 101 Northbound on- ramp would increase by more than two percent (2.1 %), resulting in a significant impact at this intersection. There are no feasible physical improvements that the City could undertake at this intersection to reduce the impact to Base Case Conditions or better. Impact 11.9 - Year 2020 Vehicle Queuing Impacts 50th Percentile Queue; AM Peak Hour. The Dubuque Avenue northbound approach left turn lane would receive an increase in traffic with unacceptable Base Case queuing during the AM peak hour. There are no feasible physical improvements that the City could undertake to reduce queuing to an acceptable level during the AM peak hour at the Dubuque Avenue northbound approach left turn lane. 50th Percentile Queue; PM Peak Hour. During the PM peak hour, the Oyster Point Boulevard westbound approach through lanes and left turn lane would receive a significant increase in traffic with unacceptable Base Case queuing. The Dubuque Avenue northbound approach left turn/through lanes will also experience significant increase in traffic with unacceptable Base Case queuing. Mitigation Measure ll-9A will 2 An increase in volume of greater than two percent was considered "significant" for purposes of the EIR. 829135-1 -15- not reduce queuing to an acceptable level during the PM peak hour at Oyster Point Boulevard or Dubuque Avenue lanes. 95th Percentile Queue; AM Peak Hour. The Dubuque Avenue northbound approach left turn lane and combined through/left turn lanes will experience a 7.2% increase in traffic with unacceptable Base Case queuing. Additionally, the Bayshore Boulevard southbound approach left turn lane will experience a 4.1 % increase in traffic with unacceptable Base Case queuing. The Oyster Point Boulevard westbound approach left turn lane will have a demand increased beyond the available storage with the addition ofproject traffic. There are no feasible physical improvements that the City could undertake at the Dubuque Avenue northbound approach to reduce the impact to Base Case Conditions or better. Mitigation 11-9B will not reduce queuing on Bayshore Boulevard or alleviate the storage problem on Oyster Point Boulevard to acceptable levels. 95th Percentile Queue; PM Peak Hour. The Oyster Point Boulevard westbound approach through lanes will receive a 4% increase in traffic with unacceptable Base Case queuing. The Oyster Point Boulevard westbound approach left turn lane will receive a 4.1 % impact in traffic with unacceptable Base Case queuing. The Bayshore Boulevard southbound approach left turn lane will experience a 8.1 % increase in traffic with unacceptable Base Case queuing. The Dubuque Avenue northbound approach left turn and combined through/left turn lanes will receive a 6.2 increase in traffic with unacceptable Base Case queuing. Mitigation Measure 11-9B will not reduce queuing on Oyster Point Boulevard westbound approaches to an acceptable level. Nor will the Measure reduce queuing at the Bayshore Boulevard southbound approach to an acceptable level. There are no feasible physical improvements that the City could undertake at the Dubuque Avenue northbound approach to reduce the impact to Base Case Conditions or better. 3. Overridin!! Considerations. The City Council now balances the unavoidable impacts that apply to future development of the Home Depot Project, against it benefits, and hereby determines that such unavoidable impacts are outweighed by the benefits of the Home Depot Project as further set forth below. The Project will generate a new source of significant tax revenue for the City. The Home Depot store is estimated to generate gross sales upwards of $40 million per year, resulting in a revenue stream of approximately $400,000 per year to the City. The Project is expected to employ an estimated 150 to 175 full-time and part-time employees, primarily derived from local communities. The Project will provide retail sales of building supplies, lumber, hardware and associated items for construction, landscaping, and home improvement projects in the area. Additionally the project will provide rental tools and equipment to be leased for such projects. 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I .- U W ""') o c:: a.. .- o e.. w o w ::E o I N N I o N W Cl <( a.. -39- RESOLUTION NO. 2656-2006 PLANNING COMMISSION CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION RECOMMENDING CERTIFICATION OF THE FINAL ENVIRONMENTAL IMPACT REPORT, INCLUDING SIGNIFICANT AND POTENTIALLY SIGNIFICANT IMPACTS, FINDINGS CONCERNING ALTERNATIVES, A STATEMENT OF OVERRIDING CONSIDERATIONS, AND A MITIGATION MONITORING PROGRAM, AND APPROVAL OF ENTITLEMENTS, INCLUDING A PLANNED UNIT DEVELOPMENT, USE PERMIT, AND TRANSPORTATION DEMAND MANAGEMENT PLAN FOR A NEW 148,698 SQUARE FOOT LOWE'S FACILITY AT 600-790 DUBUQUE AVENUE WHEREAS, Lowe's has applied to demolish three of the four existing buildings on the 12.8 acre parcel located at 600-790 Dubuque Avenue, and construct in their place a 124,000 square foot Lowe's Home Improvement Warehouse, a 24,698 square foot Lowe's Garden Center, a 655-space surface parking lot, with 118 of the proposed parking spaces located on a separate parcel leased by the applicant, and retention of an existing 15,178 square foot retail building and open at-grade parking ("Project"); and WHEREAS, the entitlements proposed would provide for (1) construction of the Project; (2) a Planned Use Development allowing parking in a portion of a front setback; (3) a Use Permit allowing outdoor sales, outdoor storage, a use generating in excess of 100 vehicle trips per day, up to 24 hour daily operation, and the determination of a parking rate; (4) Design Review allowing a new 124,000 square foot Lowe's Home Improvement Warehouse, a 24,698 square foot Lowe's Garden Center, and a 655-space surface parking lot; (5) Transportation Demand Management Plan reducing vehicle trips; and (6) a Development Agreement; and WHEREAS, a Notice of Preparation for a Draft Environmental Impact Report ("DEIR") was issued on August 5, 2005, informing all interested parties of the City's intention to prepare an Environmental Impact Report; and WHEREAS, a DEIR was prepared evaluating the significant and potentially significant impacts of the development, the growth inducing impacts of the development, the cumulative impacts of the development, and alternatives to the proposed project; and WHEREAS, the DEIR analyzes two alternatives to the Project, including a no project alternative; and -40- 'WHEREAS, the public review period on the DEIR. commenced on January 31, 2006, and closed on March 17, 2006; and 'WHEREAS, the City prepared responses to comments on environmental issues received during the public review period and at the public hearings, which responses clarify and amplify the information contained in the DEIR., providing a good faith reasoned analysis supported by factual information. The comments and responses to comments were published in a Final Environmental Impact Report ("FEIR.") dated June 2006, which incorporated the DEIR; and 'WHEREAS copies of the FEIR. were distributed or otherwise made available to the Planning Commission, responsible agencies, and other interested parties; and 'WHEREAS, based on the FEIR. and other information in the record, there are impacts of the Proj ect which are not environmentally significant and which require no findings or mitigation upon approval; and, 'WHEREAS, based on the FEIR. and other information in the record, there are certain significant and potentially significant environmental impacts of the Proj ect which could be mitigated to a level of insignificance, therefore mitigation findings are required pursuant to CEQA g21081 and CEQA Guidelines g15091 upon Project approval; and, 'WHEREAS, based on the FEIR. and other information in the record, there are significant and potentially significant impacts of the Project which could not be mitigated to a level of insignificance, therefore the alternatives to the Proj ect as proposed were examined to determine if they would avoid any of the unmitigated significant impacts; and, 'WHEREAS, based on the FEIR. and other information in the record, there are significant and potentially significant environmental impacts of the Project which could not be reduced to a level of insignificance, therefore a Statement of Overriding Considerations is required upon Project approval; and, 'WHEREAS, CEQA S21081.6 requires that where mitigation findings are made for significant and potentially significant environmental impacts, a mitigation monitoring and reporting program shall be adopted upon Project approval to ensure compliance with the mitigations during project implementation; and, WHEREAS, the above-referenced mitigation and monitoring program shall be submitted concurrently with the precise plan for the Lowe's site; and 'WHEREAS, the location and custodian of the documents which constitute the record of proceedings upon which the City's decision on entitlements relating to the FEIR. is the City of South San Francisco Planning Division, 315 Maple Avenue, South San Francisco; and, 'WHEREAS, the mitigation measures identified in the FEIR. will be applied as conditions of Project approval. -41- NOW, THEREFORE, BE IT RESOLVED that the foregoing recitals are true and correct and made a part of this resolution, and that the Planning Commission of the City of South San Francisco hereby adopts the following findings based upon the entire record for the Lowe's development, including without limitation, the South San Francisco General Plan, the Lowe's initial study and Environmental Impact Report, and the comments received in response to the Draft Environmental Impact Report, site plans, floor plans and elevations revised June 7, 2005 prepared by AMS; the Lowe's Initial Study and Environmental Impact Report; Design Review Board meeting of June 21,2005; Design Review Board meeting of July 19, 2005; Design Review Board minutes of June 21,2005; Design Review Board minutes of July 19, 2005; Planning Commission staffreport of June 15,2006 and Planning Commission meeting of June 15,2006; Planning Commission staffreport of July 20,2006 and Planning Commission meeting of July 20, 2006: 1. Environinental Impact Report. As required by the California Environmental Quality Act (CEQA) [Pub. Res. Code SS 21000 et seq,], the following findings are made in approval of a Final Environmental Impact Report and Statement of Overriding Considerations, allowing development of a home improvement retailer situated at 600-790 Dubuque Avenue in the Planned Commercial Zoning district, subj ect to making the findings of approval and, based on public testimony and the materials submitted to the City of South San Francisco Planning Commission which include, but are not limited to: the Lowe's initial study and Environmental Impact Report, and the comments received in response to the Draft Environmental Impact Report, site plans, floor plans and elevations revised June 7, 2005 prepared by AMS; the Lowe's Initial Study and Environmental Impact Report; Design Review Board meeting of June 21,2005; Design Review Board meeting of July 19,2005; Design Review Board minutes of June 21,2005; Design Review Board minutes of July 19, 2005; Planning Commission staffreport of June 15,2006 and Planning Commission meeting of June 15,2006; Planning Commission staff report of July 20,2006 and Planning Commission meeting of July 20, 2006: (a) The key environmental issue identified by City staffis traffic. Mitigation measures are proposed to reduce many of the identified impacts to a less than significant level. However, significant cumulative traffic impacts attributable to the development will occur and cannot be feasibly mitigated. The project proponent has also revised the site plan to reduce some of the impacts and improve circulation. The plans now reflect the provision of a left-turn pocket on Dubuque Avenue providing better and safer site access. The applicant is also proposing to improve on-site circulation as suggested by the City's traffic consultant and is proposing to increase the amount of parking; both of these improvements are not considered impacts and do not require mitigation, but will help ease on- site congestion. -42- (b) A Statement of Overriding Considerations has been prepared for those significant impacts which are unavoidable. The Statement of Overriding Considerations concludes that significant and unavoidable impacts resulting from the development, specifically, traffic impacts, are outweighed by the benefits of the Lowe's development. Approval of the project will generate a new source of significant tax revenue for the City. The Lowe's store is estimated to generate gross sales upwards of $40 million per year, resulting in a revenue stream of approximately $400,000 per year to the City. The Project is expected to employ an estimated 150 to 175 full-time and part-time employees, primarily derived from local communities. The Project will provide retail sales of building supplies, lumber, hardware and associated items for construction, landscaping, and home improvement projects in the area. Additionally the project will provide rental tools and equipment to be leased for such projects. Finally, the Project is generally consistent with objectives and requirements of the City's General Plan and the Zoning Code. 2. Planned Unit Development. As required by the Planned Unit Development Procedures [SSFMC Chapter 20.84J, the following findings are made in approval of a Planned Unit Development Permit (pUD05-0002) allowing parking in a portion of the minimum required front setback, situated at 600-790 Dubuque Avenue in the Planned Commercial Zoning district, subject to making the findings of approval and, based on public testimony and the materials submitted to the City of South San Francisco Planning Commission which include, but are not limited to: Site plans, floor plans and elevations revised June 7, 2005 prepared by AMS; the Lowe's Initial Study and Environmental Impact Report; Design Review Board meeting of June 21, 2005; Design Review Board meeting of July 19, 2005; Design Review Board minutes of June 21, 2005; Design Review Board minutes of July 19,2005; Planning Commission staffreport of June 15,2006 and Planning Commission meeting of June 15,2006; Planning Commission staff report of July 20, 2006 and Planning Commission meeting of July 20, 2006: (a) The site is physically suitable for a home improvement center. The development is similar in style to existing adjacent buildings and shares a similar floor area ratio and will reinforce a commercial environment of sustained desirability and stability by matching the development quality and design. Conditions of approval require that the new building and site improvements conform to the City's development standards. (b) The proposed exception allowing a reduction in part of the rear setback adjacent to the open at-grade parking lot is acceptable in that the planned development will be of general benefit to the community by providing a service and diversity of products not otherwise available in the City or in anyone location. The exception will not unreasonably be detrimental to the health, safety, welfare, comfort or convenience of persons working -43- vicinity of the property in that the development provides for improved access and circulation and is of a design that is a significant improvement over the existing building and site improvements and is a better fit with the existing nearby buildings. (c) The proj ect complies with the provisions of the California Environmental Quality Act. An Environmental Impact Report was prepared and circulated for public comments. Mitigation measures are identified to reduce impacts to a level less than significant. A Statement of Overriding Concerns is proposed due to cumulative traffic impacts associated with the development. A Mitigation Monitoring Program is required to ensure that all mitigation measures are implemented. (d) The proposed development is consistent with the General Plan Land Use Element designation of the site as Business Commercial. The proposed project is consistent with the General Plan which designates the property Business Commercial and the East of I 01 Area Plan. Retention of existing retail development is a key principle of the plan. Policy LU-4a supports development of retail use in areas designated "Planned Commercial". The proposed development's floor area ratio (FAR) of 0.25 is well below the maximum FAR of 0.5 allowed in the Business Commercial land use designation. (e) The proposed retail development will not be adverse to the public health, safety or general welfare of the community, or unreasonably detrimental to surrounding properties or improvements. The development is designed to comply with the City's Design Guidelines and the architectural theme of the surrounding commercial developments. Conditions of approval are attached which will ensure that the development complies with local development standards and requirements. (f) The City's Design Review Board determined that the proposed building design and site improvements comply with the City's Design Guidelines and recommended approval of the proposed development. 3. Use Permit. As required by the "Use Permit Procedure" (SSFMC Chapter 20.81), the Planning Commission makes the following fmdings in support of the request to approve a Use Permit (up05-0021) allowing outdoor sales, outdoor storage, a use generating in excess of 100 vehicle trips per day, up to 24 hour daily operation, and the determination of a parking rate, situated at 600-790 Dubuque Avenue, in the Planned Commercial Zone District, based on public testimony and the materials submitted to the City of South San Francisco Planning Commission which include, but are not limited to: Site plans, floor plans and elevations revised June 7, 2005 prepared by AMS; the Lowe's Initial Study and Environmental Impact Report; Design Review Board meeting of June 21, 2005; Design Review -44- Board meeting of July 19, 2005; Design Review Board minutes of June 21,2005; Design Review Board minutes of July 19, 2005; Planning Commission staff report of June 15, 2006 and Planning Commission meeting of June 15, 2006; Planning Commission staff report of July 20, 2006 and Planning Commission meeting of July 20, 2006: (a) The proposed retail development allowing outdoor sales, outdoor storage, generating in excess of 100 vehicle trips per day, up to 24 hour daily operation, and the determination of a parking rate not identified in the SSFMC will not be adverse to the public health, safety, or general welfare of the community, or unreasonably detrimental to surrounding properties or improvements. The site is physically suitable for the type and intensity of the land use being proposed, and the compatibility with adjacent developments was thoroughly analyzed in the Environmental Impact Report. Conditions of approval and mitigation measures are required to ensure protection of public safety, reduce traffic, reduce parking demand and ensure compliance with Federal, State and City development and environmental standards. (b) The proposed retail development allowing outdoor sales, outdoor storage, generating in excess of 100 vehicle trips per day, up to 24 hour daily operation, and the determination of a parking rate not identified in the SSFMC is consistent with the General Plan which designates the property Business Commercial and the East of 11 Area Plan. Retention of existing retail development is a key principle of the plan. Policy LU-4a supports development of retail use in areas designated "Planned Commercial". The proposed development's floor area ratio (FAR) of 0.25 is well below the maximum FAR of 0.5 allowed in the Business Commercial land use designation. (c) The proposed retail development allowing outdoor sales, outdoor storage, generating in excess of 100 vehicle trips per day, up to 24 hour daily operation, and the determination of a parking rate not identified in the SFMC meets or exceeds the minimum standards and requirements of the City's Zoning Ordinance which designates the site Planned Commercial. Retail use is allowed subject to an approved Use Permit. The proposed outdoor sales and storage is commonly associated with home improvement centers retail development. The number of parking spaces is adequate to serve the proposed retail use based on parking data for similar home improvement centers, the Institute of Traffic Engineers data and that a TDM Plan will be required. Conditions of approval are required to ensure compliance with the City's development standards, reduce parking demand, provide security and ensure that the site is well maintained. -45- (d) The proposed project is consistent with the goals and objectives of the Redevelopment Program for the Downtown/Central Redevelopment Project Area, and specifically with the following: 1. To create and develop local job opportunities and to preserve the area's existing employment base. 11. To replan, redesign and develop areas which are stagnant or improperly used. ( e) An Environmental hnpact Report has been prepared for the proj ect in accordance with the provisions of CEQA. Mitigation measures are required which will reduce all identified impacts to a level less than significant. A Mitigation Monitoring Program is required to ensure that all mitigation measures are implemented. A Statement of Overriding Consideration is required because of cumulative traffic impacts associated with the development. 4. Parcel Map. As required by the Tentative Parcel Map Procedures [SSFMC Title 19], the following findings are made in approval ofa Tentative Parcel Map (pM05-0005) allowing five parcels to be merged, based on public testimony and the materials submitted to the City of South San Francisco Planning Commission which include, but are not limited to: Tentative Parcel Map prepared by AMS, dated June 7, 2005; the Lowe's Initial Study and Environmental hnpact Report; Design Review Board meeting of June 21, 2005; Design Review Board meeting of July 19, 2005; Design Review Board minutes of June 21,2005; Design Review Board minutes of July 19, 2005; Planning Commission staffreport, dated June 15, 2006; and Planning Commission meeting of June 15, 2006; Planning Commission staff report of July 20, 2006 and Planning Commission meeting of July 20, 2006: (a) The proposed lot merger conforms with the requirements of the State Subdivision Map Act and with the requirements of the City of South San Francisco Title 19 Subdivision Code. The Tentative Parcel Map conforms to City standards with regards to design, drainage, utilities, and street improvements. A dedication for sidewalk and utilities is required. The lot will exceed the sizes of the adjacent lots and exceed the City's minimum lot size requirements. Conditions of approval will ensure that the development complies with City development standards. (b) The proposed lot merger complies with the General Plan Land Use Element designation of the site of Business Commercial and the minimum lot size requirements delineated in SSFMC Title 20 Zoning Regulations. 5. Transportation Demand Management Plan, As required by the Transportation Demand Management Procedures [SSFMC Section 20.120.070], the following findings are made in approval of the Preliminary Transportation Demand - -46- Management Plan (TDM05-0002), based on public testimony and the materials submitted to the City of South San Francisco Planning Commission which include, but are not limited to: Site plans, floor plans and elevations revised June 7,2005 prepared by AMS; the Lowe's fuitial Study and Environmental Impact Report; Design Review Board meeting of June 21, 2005; Design Review Board meeting of July 19, 2005; Design Review Board minutes of June 21,2005; Design Review Board minutes of July 19, 2005; Planning Commission staff report of June 15,2006 and Planning Commission meeting of June 15,2006; Planning Commission staff report of July 20,2006 and Planning Commission meeting of July 20, 2006: (a) The proposed Preliminary Transportation Demand Management Plan measures are feasible and appropriate for the retail development located at 600- 790 Dubuque Avenue with up to 24 hour operation in the Planned Commercial Zone District adjacent to other commercial uses. (b) The proposed performance guarantees, consisting of an Annual and Triennial Reviews, will ensure that the target alternative mode use established for the project of28% based on a Floor Area Ratio of 0.25 [SSFMC 20.120.030 (C)] will be achieved and maintained. NOW, THEREFORE, BE IT FURTHER RESOLVED that the Planning Commission of the City of South San Francisco does hereby: A. Recommend certification, in accordance with the California Environmental Quality Act, of the Final Environmental Impact Report and the following, assessing environmental impacts of the proposed development of a home improvement retail store: i. Findings Concerning Alternatives attached hereto as Exhibit A; ii. The Statement of Overriding Considerations attached hereto as Exhibit B' -, iii. The Mitigation Monitoring Program attached hereto as Exhibit C. B. Recommend approval of the Planned Unit Development allowing parking in a portion of the minimum required front setback, situated at 600-790 Dubuque Avenue in the Planned Commercial Zoning district. C. Recommend approval of the Use Permit allowing outdoor sales, outdoor storage, a use generating in excess of 100 vehicle trips per day, up to 24 hour daily operation, and the determination of a parking rate, situated at 600-790 Dubuque Avenue, in the Planned Commercial Zone District. -47- D. Recommend approval of Tentative Parcel Map allowing five parcels situated at 600-790 Dubuque Avenue to be merged. E. Recommend approval of the Transportation Demand Management Plan concerning the Lowe's development to be situated at 600-790 Dubuque Avenue, in the Planned Commercial Zone District. I hereby certify that the foregoing resolution was adopted by the Planning Commission of the City of South San Francisco at the regular meeting held on the 20th of July, 2006, by the following vote: AYES: Commissioner Giusti, Commissioner Prouty, Commissioner Romero, Commissioner Sim, Vice Chairperson Honan Chairperson Zemke NOES: None ABST AlN: None ABSENT: r()mmi""i()nf~r T~eJi~ Attest: Isl Susv Kalkin Susy Kalkin Interim Secretary to the Planning Commission -48- CONDITIONS OF APPROVAL 900 DUBUQUE AVENUE P05-0035 HOME DEPOT (As recommended by the Planning Commission on July 6, 2006) A. PLANNING DIVISION: 1. The applicant shall comply with the City's Standard Conditions and with all the requirements of all affected City Divisions and Departments as contained in the attached conditions, except as amended by the conditions of approval. 2. The construction drawings shall substantially comply with the City Council approved plans, as amended by the conditions of approval including the revised plans prepared by Greenberg Farrow, submitted in association with P05-0035. 3. Prior to the issuance of the Building Permit, the landscape plan shall be revised to incorporate the Design Review Board suggestions made at their meeting of May 2005 and shall also include mature shrubs, trees that have a minimum size of24 inch box and 15% of the total number of proposed trees shall have a minimum size of 48 inch box. Larger trees shall be placed along the loading area screen wall along Dubuque Avenue. The landscape plans shall also include landscaping of the garage roof deck to soften views from the intersection of Dubuque Avenue and Oyster Point Boulevard. The garage deck landscaping shall include trellises with vining material. Trellises shall also be placed in close proximity to the garage deck perimeter. The landscape plan shall consider the inclusion of palm trees at the main entry. The landscape plan shall include an interim 2 year screening element for the wall mounted trellises until the vines adequately cover the trellis. The landscape plan shall be subject to the review and approval by the City's Chief Planner. 4. Prior to the issuance of any permit the owner shall revise the plans to include increasing the height of the loading area screen wall to occlude views of trucks in the loading docks, provide greater design articulation of the pallet enclosure that more closely matches the remainder of the building, modify the design of the loading area so that it appears as a plaza area when not in use as a loading area, and use a green accent color under the main entry signs. 5. Prior to opening the business the owner shall obtain and thereafter maintain a City Business License. -49- 6. Prior to the final inspection the applicant shall have a Final Transportation Demand Management Program (TDM) prepared by a qualified and licensed traffic engineer that incorporates the provisions of the City of South San Francisco SSFMC 20.120 Transportation Demand Management. The Final TDM Plan shall closely follow the PTDM Plan approved by the City Council in association with P05-0035 and shall be subject to the review and approval by the City's Chief Planner. The Final TDM shall also be subject to the review and approval by the San Mateo City/County Association of Governments. 7. Prior to the Final Inspection, the owner shall establish a Site Maintenance Program to maintain the site free of litter and debris and good appearance. The plan shall be subject to the review and approval of the City's Chief Planner. 8. Prior to the Final Inspection, the owner shall establish an Outdoor Storage, Outdoor Display and Sales, Seasonal Outdoor Display and Sales, and Outdoor Vendors. The plan shall limit outdoor storage to the Garden Center and the areas designated for Outdoor Display and Sales and Seasonal Outdoor Display and Sales as shown on the approved site plan. Outdoor Vendors shall not be allowed. The plan shall be subject to the review and approval of the City's Chief Planner. 9. In accordance with the California Environmental Quality Act, the owner shall comply with all mitigation measures identified in the Environmental Impact Report certified by the City Council of the City of South San Francisco. The owner shall implement the Mitigation Monitoring Program including all mitigation measures in a timely manner. The Mitigation Monitoring Program shall be subject to the review and approval by the City's Chief Planner. (planning Division Contact: Steve Carlson 650/877-8353, Fax 650/829-6639) B. ENGINEERING DIVISION: 1. STANDARD CONDITIONS The developer shall comply with the conditions of approval for commercial projects, as detailed in the Engineering Division's "Standard Conditions for Commercial and Industrial Developments", contained in our "Standard Development Conditions" booklet, dated January 1998. This booklet is available at no cost to the applicant from the Engineering Division. -50- II. SPECIAL CONDITIONS The developer shall comply with the on- and off-site traffic, sewer, drainage and other infrastructure mitigation recommendations contained in the approved environmental mitigated negative declaration document for the project. The approved mitigation improvements shall be designed, furnished, constructed and installed by the applicant's consultants and contractors, in accordance with plans prepared by the applicant's consultant and approved by the City Engineer. The work shall be constructed to City Standards, pursuant to a secured encroachment permit, or off-site development improvement agreement, obtained prior to receiving a building permit for the subject project. The cost of all work and permits to mitigate the infrastructure impacts of the subject project shall be borne by the applicant and shall be performed at no cost to the City of South San Francisco. A. The design of the project shall include settlement and retention ponds and other approved devices, such as grassy swales, that will filter pollutants from the site's storm water runoff, in compliance with the City's and County's storm water discharge permit requirements. B. Provide a sight line study at each exit so there is adequate stopping sight distance. Revise the northwest property line to include a horizontal curve to improve the Dubuque Avenue roadway based on the results of the sight line study. The Developer shall pay for costs relating to the design and construction of the improvements. The Developer shall also install city standard driveways at each exit. C. The applicant shall submit on-site pavement construction, pavement repair, and curb repair, striping, signing, and traffic control plans for the interior parking lot(s) and driveway isles within the site that will be used by Home Depot employees and guests. Rl "STOP" signs shall be installed at each exit that will be used by the guests when leaving the site. Traffic control signs shall be mounted on 2" diameter, galvanized steel poles. D. Upon completion of the building alterations and site improvements, the applicant shall clean, repair or reconstruct, the existing curb, gutter and driveway approaches, along the entire frontage of the subject parcel, as may be required by the City's Construction Manager, to conform to current City public improvement safety and drainage standards, prior to receiving a "final", or occupancy permit, for the subject project. -51- E. Prior to the issuance of a Building Permit for the project, the applicant shall pay the various fees detailed below. Ill. ON-SITE IMPROVEMENTS A. The applicants shall design, construct and install a drainage system capable of accommodating a 10-year design storm. Any existing drainage facilities that are proposed to be re-used shall be inspected by a competent consultant and cleaned, repaired, or improved by the applicant's contractor, in order to conform to City Engineering Division site drainage standards. Storm drain pipes, shall not connect to each other at a "blind" connection. All storm drains shall begin and end at a manhole, catch basin, inlet, or junction box, in order to provide access for maintenance. B. A report shall be prepared by the applicant's drainage consultant and submitted to the City Engineer for review and approval. The report shall describe the condition and adequacy of any existing storm drainage facilities that will be re-used and shall justify the design of all proposed new improvements to the site's drainage system. The applicant shall design and install the drainage improvements described in the approved report, to the satisfaction of the City's Engineering Construction Manager. C. New storm water pollution control devices and filters shall be installed within the existing and new site drainage facilities located within the areas subject to travel by the guests, as required to prevent pollutants deposited on the impervious surfaces within the site from entering the public stom drains. Plans for these facilities shall be prepared by the applicant's consultant and submitted to the Engineering Division and to the City's Environmental Compliance Coordinator, for review and approval. V. OYSTER POINT OVERPASS CONTRIBUTION FEE The applicant shall pay the Oyster Point Overpass fee for the proposed building, prior to receiving a building permit, in accordance with the Standard Conditions referenced above. The subject proposal for a 101,171 SF Home Depot store and 24,215 SF Garden Center with a 2- story parking structure would result in a fee of $0, which was calculated as follows: Existing Retail: 149,356 sq. ft x 48 trips/1,000 sq. ft. = 7,169.09 trips -52- Proposed Retail: (101,171 + 24,215) sq. ft. @ 48 tripsllOOO sq. ft. = 6,038.11 trips Total new trips: 6,038.11 (new trips) -7,169.09 (existing trips) = 0 net new trips Fee: o trips x $154 x [8260.41/6552.16 (Engr. Construction Index)] = $0 VI. EAST OF 101 TRAFFIC IMPACT FEES Prior to issuance of a Building Permit for any building within the proposed project, the applicant shall pay the East 101 Traffic Impact fee, in accordance with the resolution adopted by the City Council at their meeting of September 26,2001, or as the fee may be amended in the future. Fee Calculation (as ofMav 2005) (101,171 + 24,215 SF) aSF @ $6.25 per each square foot = $786,212.50 (Please note that the traffic impact fee is proposed to be increased. If the applicant has not obtained a building permit and begun construction prior to the date on which the fee is increased, the applicant will be required to pay the revised fee.) VII. SEWER SYSTEM CAPACITY STUDY AND IMPROVEMENT FEE The City of South San Francisco has identified the need to investigate the condition and capacity of the sewer system within the area east of US Highway 101, downstream of the proposed development. The existing sewer collection system was originally designed many years ago to accommodate warehouse and industrial use and is now proposed to accommodate uses, such as offices, biotech facilities and retail, with a much greater sewage flow. These additional flows, plus groundwater infiltration into the existing sewers, due to ground settlement and the age of the system, have resulted in pumping and collection capacity constraints downstream of the subject site. In order to fund these improvements the City Council has adopted a fee on October 22, 2002, which applies to all new development within the area east of 10l. The applicant shall pay the East of 1 01 Sewer Facility Development Impact Fee, as adopted by the City Council at their meeting of October 22, 2002. The adopted fee is $3.19 per gallon of discharge per day. The Carollo Study, which forms the basis for the system upgrades, calculated Office/R&D uses to require a capacity of 400 gallons per day per 1000 square feet of development. Based upon this calculation, the potential fee determined by the Engineering News Record San Francisco Construction Cost Index): 0.4 gallons per square foot (400 gpd/1000 sq. ft.) x $3.19 per gallon x (101,171 + 24,215) SF = $160,513.14. The sewer contribution shall be due and payable prior to receiving a building permit for each phase of the development. (Engineering Division Contact: Michelle Bocalan 650/829-6652) C. POLICE DEPARTMENT 1. Municipal Code Compliance The applicant shall comply with the provisions of Chapter 15.48 of the Municipal Code, "Minimum Building Security Standards" Ordinance revised May 1995. The Police Department reserves the right to make additional security and safety conditions, if necessary, upon receipt of detailed/revised building plans. 2. Building Security a. Doors 1. The jamb on all aluminum frame-swinging doors shall be so constructed or protected to withstand 1600 lbs. of pressure in both a vertical distance of three (3) inches and a horizontal distance of one (1) inch each side of the strike. 2. Glass doors shall be secured with a deadbolt lock1 with minimum throw of one (1) inch. The outside ring should be :free moving and case hardened. 3. Employee/pedestrian doors shall be of solid core wood or hollow sheet metal with a minimum thickness of 1-3/4 inches and shall be secured by a deadbolt lock1 with minimum throw of one (1) inch. Locking hardware shall be installed so that both deadbolt and deadlocking latch can be retracted by a single action of the inside knob, handle, or 1 The locks shall be so constructed that both the deadbolt and deadlocking latch can be retracted by a single action of the inside door knob/lever/turnpiece. A double-cylinder deadbolt lock or a single-cylinder deadbolt lock without a turnpiece may be used in "Group B" occupancies as defined by the Uniform Building Code. When used, there must be a readily visible durable sign on or adjacent to the door stating "This door to remain unlocked during business hours", employing letters not less than one inch high on a contrasting background, The locking device must be of type that will be readily distinguishable as locked, and its use may be revoked by the Building Official for due cause, -54- turn piece. 4. Outside hinges on all exterior doors shall be provided with non-removable pins when pin-type hinges are used or shall be provided with hinge studs, to prevent removal of the door. 5. Doors with glass panels and doors with glass panels adjacent to the doorframe shall be secured with burglary- resistant glazing2 or the equivalent, if double-cylinder deadbolt locks are not installed. 6. Doors with panic bars will have vertical rod panic hardware with top and bottom latch bolts. No secondary locks should be installed on panic-equipped doors, and no exterior surface-mounted hardware should be used. A 2" wide and 6" long steel astragal shall be installed on the door exterior to protect the latch. No surface-mounted exterior hardware need be used on panic-equipped doors. 7. On pairs of doors, the active leaf shall be secured with the type of lock required for single doors in this section. The inactive leaf shall be equipped with automatic flush extension bolts protected by hardened material with a minimum throw of three- fourths inch at head and foot and shall have no doorknob or surface-mounted hardware. Multiple point locks, cylinder activated from the active leaf and satisfying the requirements, may be used instead of flush bolts. 8. Any single or pair of doors requiring locking at the bottom or top rail shall have locks with a minimum of one throw bolt at both the top and bottom rails. b. Windows 1. Louvered windows shall not be used as they pose a significant security problem. 2. Accessible rear and side windows not viewable from the street shall consist of rated burglary resistant glazing or its equivalent. Such windows that are capable of being opened shall be secured on the inside with a locking device capable of withstanding a force of two hundred- (200) lbs. applied 25/16" security laminate, V4" polycarbonate, or approved security fIlm treatment, minimum. -55- in any direction. 3. Secondary locking devices are recommended on all accessible windows that open. c. Roof Openings 1. All glass skylights on the roof of any building shall be provided with: a) Rated burglary-resistant glass or glass-like acrylic material.2 or: b) Iron bars of at least 1/2" round or one by one-fourth inch flat steel material spaced no more than five inches apart under the skylight and securely fastened. or: c) A steel grill of at least 1/8" material or two inch mesh under skylight and securely fastened. 2. All hatchway openings on the roof of any building shall be secured as follows: a) lfthe hatchway is of wooden material, it shall be covered on the outside with at least 16 gauge sheet steel or its equivalent attached with screws. b) The hatchway shall be secured from the inside with a slide bar or slide bolts. The use of crossbar or padlock must be approved by the Fire Marshal. c) Outside hinges on all hatchway openings shall be provided with non-removable pins when using pin-type hinges. 3. All air duct or air vent openings exceeding 8" x 12" on the roof or exterior walls of any building shall be secured by covering the same with either of the following: a) Iron bars of at least 1/2" round or one by one-fourth inch flat steel material, spaced no more than five inches apart and securely fastened. or: b) A steel grill of at least 1/8" material or two inch mesh and -56- securely fastened and c) If the barrier is on the outside, it shall be secured with galvanized rounded head flush bolts of at least 3/8" diameter on the outside. d. Lighting 1. All exterior doors shall be provided with their own light source and shall be adequately illuminated at all hours to make clearly visible the presence of any person on or about the premises and provide adequate illumination for persons exiting the building. 2. The premises, while closed for business after dark, must be sufficiently lighted by use of interior night-lights. 3. Exterior door, perimeter, parking area, and canopy lights shall be controlled by photocell and shall be left on during hours of darkness or diminished lighting. e. Numbering of Buildings 1. The address number of every commercial building shall be illuminated during the hours of darkness so that it shall be easily visible from the street. The numerals in these numbers shall be no less than four to six inches in height and of a color contrasting with the background. 2. In addition, any business, which affords vehicular access to the rear through any driveway, alleyway, or parking lot, shall also display the same numbers on the rear of the building. f. Alarms 1. The business shall be equipped with at least a central station silent intrusion alarm system. NOTE: To avoid delays in occupancy, alarm installation steps should be taken well in advance of the final inspection. g. Traffic, Parking, and Site Plan 1. Handicapped parking spaces shall be clearly marked and properly sign posted. -57- NOTE: For additional details, contact the Traffic Bureau Sergeant at (650) 829-3934. h. Misc. Security Measures 1. Commercial establishments having one hundred dollars or more in cash on the premises after closing hours shall lock such money in an approved type money safe with a minimum rating ofTL-15. 2. Fencing should be of an open design, such as decorative wrought iron, to preclude scaling, and maximize both natural surveillance and territorial reinforcement. NOTE: Proposed height exceeding 6 feet will require a variance, which upon design approval, is encouraged to minimize inventory shrinkage. Gates to proposed fencing should be alarmed, also. (police Department Contact: Sgt. E. Alan Normandy 650/877-8927) D. FIRE PREVENTION: 1. Install fire sprinkler system per NFP A 13/SSFFD requirements under separate fire plan check and permit for overhead and underground. 2. Fire sprinkler system shall be central station monitored per California Fire Code section 1003.3. 3. Install exterior listed horn/strobe alarm device. 4. Provide class III combination standpipe-sprinkler system conforming to NFP A 13/SSFD requirements. Standpipe connections to be located on first and second story of parking structure. Additional connections to be provided inside building, location to be determined on submission of rack storage plans. 5. A manual fire alarm system shall be provided that will alarm both audibly/visually throughout the building if activated and also alert the Fire Department via an approved monitoring station. Install fire alarm panel at front and rear, location to be determined. -58- 6. Elevator if provided shall not contain shunt-trips. 7. Minimum height clearance under parking structure (13.5 feet) CFC 2001. Provide 20 foot wide clear emergency vehicle access road. Indicate as fire lane with no parking allowed. 8. Access road shall have all weather driving capabilities and support the imposed load of 68,000 pounds. 9. Road gradient shall not exceed maximum allowed by engineering department. 10. Provide fire flow in accordance with California Fire Code Appendix III-A. 11. Provide portable thermal imager to mitigate search and rescue of occupants from high occupant load warehouse structure. 12. Provide fire hydrants; location and number to be determined. 13. All buildings shall provide premise identification in accordance with SSF municipal code section 15.24.100. 14. Provide Knox key box for each building with access keys to entry doors, electricaVmechanical rooms, elevators, and others to be determined. 15. Smoke Control design/criteria to be approved by Fire Marshal. 16. Provide emergency illumination. 17. Provide exit signs. 18. Project must meet all applicable Local (SSF Municipal Code, Chapter 15.24 Fire Code), State and Federal codes. (Fire Prevention Contact: Bryan Niswonger 650/829-6645) E. WATER QUALITY CONTROL PLANT 1. A plan showing the location of all storm drains and sanitary sewers must be submitted. 2. The onsite catch basins are to be stenciled with the approved San Mateo Countywide Stormwater Logo. -59- 3. Storm water pollution preventions devices are to be installed. A combination of landscape based controls (e.g., vegetated swales, bioretention areas, planter/tree boxes, and ponds) and manufactured controls (vault based separators, vault based media filters, and other removal devices) are preferred. Existing catch basins are to be retrofitted with :filter type catch basin inserts or equivalent. These devices must be shown on the plans prior to the issuance of a permit. CDS or Stormceptor units alone are not acceptable. These units must be used in series with an additional treatment measure. 4. The applicant must submit a signed maintenance schedule for the stormwater pollution prevention devices installed. 5. Any trash handling area must be covered, enclosed and must drain to sanitary sewer. This must be shown on the plans prior to issuance of a permit. 6. Plans must show the connection of the wash area to the sanitary sewer. 7. Plans must show the location of all drains in the maintenance area. These drains must be connected to a three-compartment oiVwater separator and the sanitary sewer. 8. Must demonstrate how the storm drains will be protected during construction. (Water Quality Contact: Cassie Prudhel 650/829-3840) -60- MINUTES CITY COUNCIL CITY OF SOUTH SAN FRANCISCO SPECIAL JOINT MEETING CITY COUNCIL - PLANNING COMMISSION 'WEDNESDAY, OCTOBER 5, 2005 MUNICIPAL SERVICES BUILDING COM:MUNITY ROOM 33 AAROYO DRIVE 1. Call to Order 6:07 p.m. (Cassette Tape No.1) 2. Roll Call Present: Councilmembers Garbarino, Gonzalez and Matsumoto, Mayor Pro Tem Femekes and Mayor Green Planning Commissioners Giusti, Honan, Prouty"', Romero, and Sim"', Vice Chair Zemke'" and Chair Teglia "'Commissioners Prouty and Sim arrived at 6:09 pm and Vice Chair Zemke arrived at 7:08 pm Absent: None Staff: City Manager Nagel, City Attorney Mattas, Assistant City Manager Van Duyn, and Senior Planner Steve Carlson 3. Public Comments Ms. Kamala Silva Wolfe, resident, submitted a list of items that she would like to see addressed in the EIR being prepared by Lamphier & Gregory. City Manager Nagel stated a vvritten response will be prepared. 4. Study Session: Joint meeting with the Planning Commission - discussion ofllie following projects: a) Lowe's Home Improvement Center, 600-790 Dubuque Avenue Staff report presented by Senior Planner Steve Carlson. Messrs. Roger Bernstein and Anthony Fannand, representatives of Lowe's Home Improvement Center, gave an overview of the project. Mayor Green asked for comments from the Planning Commission, then City Council. -61- Commissioner Prouty stated his preference for a parking structure and felt it was more efficient. Commissioner Honan recently observed several eyesores at the San Bruno store and suggested that empty pallets, dismantled appliances, broken shopping carts, and surplus store supplies be enclosed or kept indoor's. Chair Teglia expressed concerns regarding the store configuration on the site and that it be re-orientated. He suggested the Dubuque Avenue area be visually enhanced. Councilman Gonzalez suggested the rear of building, facing the railroad tracks, be visually enhanced, materials from the demolition of existing buildings be recycled and the back area be monitored for graffiti. Mayor Pro Tem Femekes asked for clarification on where customers vvill be drawn from and ::Mr. Bernstein responded that the store would be a regional draw, hopefully from San Francisco and off 101 from the south. Councilwoman Matsumoto stated a preference for a parking structure, but has concerns regarding' safety. She asked for statistical'information regarding a structure versus an open parking lot. She asked if a "local employee preference" can be made a condition and City Attorney Mattas stated he will look into it. Councilwoman Matsumoto stated concerns regarding the landscape tree species and container size and questioned the anticipated traffic flow on weekends. Councilman Garbarin,o questioned the signage, delivery hours, and stated support for the local preferential hiring concept. Mayor Green questioned the close proximity of the Home Depot and Lowe's stores and success ratio. :Mr. Bernstein stated the positives; including more selection, store competition and that ultimately the consumer wins. Councilmembers Garbarino and Matsumoto questioned the location of the employee parking area and suggested it be monitored for compliance. Councilman Gonzalez discussed the potential need for an employee childcare program and Lowe's willingness to make a childcare contribution. Mr. Bernstein stated he will look into the matter and will get back to Council. Commissioner Prouty suggested that personal trucks be parked off-street. Commissioner Siro asked for a context drawing of the street "designed-out" and stated the Commission is looking for a high quality look. Chair Teglia asked for a picture of what Lowe's most expensive store looks like. SPECIAL CITY COUNCIL MEETrnG lv.IDIDTES -62- OCTOBER 5, 2005 PAGE 2 (Recess: 7:01 pm-7:12 pm) 3. Public Comments (continued) Mr. Nick Tentes, resident, questioned the zoning of the area and asked if Lowe's and Home Depot approached the City or did the City approach Lowe's and Home Depot. City Manager Nagel confirmed that the two businesses approached the City. Senior Planner Carlson stated the general plan designation for Dubuque A venue is retail, not R&D. 4. b) Home Depot, 900 Dubuque Avenue Staff report presented by Senior Planner Carlson. :Mr. Jeff Nance and Ms. Beverly Metz-Robbins gave a visual overview of the project. Commissioner Honan discussed the impact of the quarterly outdoor sales on the parking area, and the anticipated truck delivery schedule. Commissioner Romero commented on the poorly designed parking structure at the Colma store and suggested the landscaping on the entire site be enhanced. Vice-Chair Zemke asked that the elevator be maintained and kept operational. Chair Teglia suggested other creative ways be look at for orientating the building. ' He asked for a picture of what Home Depot's most expensive store looks like. Commissioner Giusti stated concerns regarding the parking of vehicles along the side of the building where shopping carts need to maneuver and that this has been a problem at the Colma store. Commissioner Prouty asked that substantial trees be planted and maintained. Councilman Garbarino suggested landscaping be added to the top level of the parking structure. Councilwoman Matsumoto asked that preferential hiring practices be included in the project, that the applicant work with staff on this matter, and that a landscape maintenance agreement also be included. Councilman Gonzalez asked that the feasibility of a bridge linking the second level of the parking structure to the store be looked into and that landscaping be added to this level. He asked that a graffiti program be maintained. In response to Mayor Pro Tem Femekes' question regarding the potential customers, Ms. Metz-Robbins stated that the targeted customers will be drawn from Burlingame to San Francisco. Mayor Pro Tem Fernekes described Colma's parking SPECIAL CITY COUNCIL :MEETING MINUTES -63- OCTOBER 5, 2005 PAGE 3 structure's poorly designed driveways and Senior Planner Carlson confirmed that the structure will not be similar. Chair Teglia suggested the parking spaces be slanted or diagonal. Commissioner Honan stated there were one too many signs for the site. In response to Commissioner Prouty's concern regarding graffiti, Ms. Metz- Robbins stated graffiti is aggressively monitored at their stores. Commissioner Siro suggested several plant species be considered to trellis the parking structure, such as bougainvillea, more vertical landscaping, and to avoid institutional light fixtures. Councilman Gonzalez suggested a sign be put at the rear of the store. Commission Sim suggested the parapet wall be dimensional rather than flat. (Recess: 8:05 p.m. - 8:16 p.m.) c) Discussion of Terrabay Phase III; Myers Development Mr. Jack Myers, Myers Development, Mr. Norman Garden, RTKL, and other development team members gave a visual overview of the proposal. Mayor Pro Tern Femekes and Councilwoman Matsumoto (Terra bay ill subcommittee members) asked for feedback from the Commission and Council members. Chair Teglia commented on the original concept for developing the site, including hotel and retail businesses, not residential. He stated concerns regarding the failure to rehabilitate the "Point". He stated major issues to be looked at during the public hearing process would include a massive development, maintaining a view up the mountain, location of high-rises, and the residential element. Commissioner Romero asked for documentation on how the number of below market rate units was calc~ated. He stated concerns regarding the Point area and that it is not looking as good as he would like. He stated that he favored a hotel as part of the mixed use, residential second, and an office tower as the third preference. He stated that the height of the buildings was not what was envisioned. (Cassette Tape No.2) Chair Teglia reiterate concerns regarding the concept to reduce the development's footprint by building-up, and promises that were made to stay off the Point. He stated he is not averse to adding residential, but concerned that the project is looking massive for the area. SPECIAL CITY COUNCIL MEETING MThlUTES -64- OCTOBER 5, 2005 PAGE 4 Commissioner Prouty stated concerns regarding the orientation of the buildings and commented that the proposal looks front-loaded. He suggested a hotel/condo use be considered. Commissioner Sim stated his opposition to proposing another tower and that it would have to be designed differently and not isolated. The discussion continued with Commissioners Sim, Romero and Giusti, and Chair Teglia voicing their concerns regarding the configuration of the proposed site pl~ connecting the residential tower with the mixed-use development by adding trails and pedestrian walkways, and overall agreeing the current proposal will not work. Mayor Pro Tern Femekes stated the subcommittee (FemekeslMatsumoto) and staff members met last week with Mr. Myers and that the subcommittee expressed many of the same concerns. Councilman Gonzalez stated dissatisfaction with building more high-rises and suggested the height be reduced so that the mountain can remain visible in that area. Councilman Garbarino suggested the orientation of the proposed tower be adjacent to the townhouse area. Mr. Myers agreed to look at it again. 5. Adjournment Being no further business, Mayor Green' adjourned the meeting at 9:02 p.m. Submitted by: Approved: 1st Sylvia M. Payne, City Clerk City of South San Francisco Isl Raymond 1. Green, Mayor City of South San Francisco SPECIAL CITY COUNCIL MEETING MINUTES -65- OCTOBER 5, 2005 PAGE 5 MINUTES July 6, 2006 CITY OF SOUTH SAN FRANCISCO REGULAR PLANNING COMMISSION CALL TO ORDER I PLEDGE OF ALLEGIANCE ROLL CALL PRESENT: TAPE 1 7:30 D.m. Commissioner Giusti, Commissioner Prouty, Commissioner Romero, Commissioner Sim, , Vice Chairperson Honan and Chairperson Zemke ABSENT: Commissioner Teglia STAFF PRESENT: Planning Division: Susy Kalkin, Acting Chief Planner Steve Carlson, Senior Planner Bertha Aguilar, Admin. Asst. II Peter Spoerl, Assistant City Attorney Ray Razavi, City Engineer Dennis Chuck, Senior Civil Engineer Robert Yonker, Special Projects Coordinator Bryan Niswonger, Assistant Fire Marshall City Attorney: Engineering Division: Information Technology: Fire Prevention. CHAIR COMMENTS AGENDA REVIEW No Changes ORAL COMMUNICATIONS None CONSENT CALENDAR 1. Approval of regular meeting minutes of May 4th, May 18th and June 1st 2006. Motion Sim I Second Giusti to approve the Consent Calendar. Vice Chairperson Honan abstained from approving the may 18th minutes. Approved by majority voice vote. PUBLIC HEARING 2. Home Depot/applicant Levitz SL San Francisc%wner 900 Dubuque Ave. P05-0035: PUD05-0003, UP05-001 0, TDMO-0003, SIGNS05-0044, EIR05-0003 & DR05-0020 (Continued from June 1, 2006) Environmental Impact Report assessing environmental impacts, Planned Unit Development allowing a reduced front setback; Use Permit allowing outside storage and display, Design Review allowing construction of a 101,171 square foot Home Depot store, a 24,215 square foot Garden Center, open at-grade parking and a 2 level parking structure and generating in excess of 100 daily vehicle trips; Type C Sign Program comprised of building facade signs with a total area exceeding of 1,103 square feet; Transportation Demand Management Plan reducing traffic effects, situated at 900 Dubuque Avenue in the Planned Commercial (P-C- L) Zoning District in accordance with SSFMC Chapters 20,24,20,81 & 20.85 Public Hearing opened. -66- Planning Commission Meeting of July 6, 2006 Senior Planner Carlson gave a brief staff report. Frank Coda, Greenberg Farrow, noted that they have responded to the Commissionls request for the cumulative visual effect of the area with both Home Depot and Lowels sites along Dubuque by providing a board that shows the Dubuque frontage of both stores. He noted that the looked at moving the loading dock to another area on the site but it impacted the circulation and truck turnaround. Some of the changes to the project were: · Screening of the loading docks by adding 3 walls and a metal trellis. · The palette enclosures and other miscellaneous enclosures now have a solid wall around them to minimize visual impacts. · He submitted a materials board to the Commission and pointed out that the tower will have a white and silver Alucabond material · All the corners were turned & roof top trellis's were added. · Decorative light was added. · He showed a roof plan and the cart storage layout. · They produced a night view of the project on Dubuque. Mr. Coda played a video for the Commission showing the details of the project. The Commission looked at the loading area frame by frame on the video. Commissioner Sim questioned if the palette enclosed area would be fenestrated. Commissioner Romero also asked if there would be any outside storage in these areas. Mr. Coda noted that the palette area would be enclosed and there would not be any outside storage. Commissioner Romero questioned if the docks would be above ground or below. Mr. Coda noted that the docks drop about four or five feet and only a portion of the truck would be visible from the street. Commissioner Sim asked if the loading dock would be concrete or asphalt. Mr. Coda noted that this area would most likely be concrete due to the weight of the trucks damaging the concrete. Commissioner Prouty questioned what the slope was on the loading dock. Mr. Coda replied that it is 40 feet at 2% and another 35 feet at 6%. Commissioner Sim suggested that the loading dock should have a paving pattern. Mr. Coda noted that if they put concrete in this area they can put a scored color concrete to give the plaza feel. Commissioner Romero asked for the setback on the property. Mr. Coda stated that it is 20 feet from the property line to the garden center. Commissioner Giusti questioned when the trees would be fully grown. Mr. Coda replied that they have a five year growth. Commissioner Prouty was concerned that the trees would not cover the dock when entirely closed. Vice Chairperson Honan asked how the plants on the trellis get watered if they were going to be green throughout the year. Mr. Cota noted that the planters and trellisl will be irrigated. The Landscape architect noted that the vine on the trellis is a Boston Ivy which is red in color and will lose some leaves but will have some color year round in South San Francisco. Vice Chairperson Honan questioned how long it would take for the ivy to fill the trellis as shown on the pictures. The landscape architect stated that it would fill to reflect the plans after it second full bloom and added that this kind of ivy will flourish and maintain its red-orange color throughout the year. He reassured the Commission that the ivy is a hearty vine that will survive in the South San Francisco weather with a minimal amount of maintenance. Commissioner Prouty asked if some trees could be added to the loading dock area. The landscape architect stated that trees are centered 30 to 40 feet so that they have room to grow. He noted that there is a tighter grouping of trees on the site and they could mimic this. He noted that a larger group of trees gives more emphasis and draws attention to that specific area. Vice Chairperson Honan asked how the roof top ivy will work on the front of the site. The landscape architect noted that the ivy will start on each end of the parking lot and work its way to the middle using cables. Commissioner Prouty reiterated his concern with stealthing the dock and questioned if there could be larger trees installed in this area to entirely cover the loading dock. The landscape architect replied affirmatively and added that the standard is a 24 inch box tree but could increase it to a 36 inch box tree depending on availability of the S:\MLYIo"tes\DT-Ob-Ob Rope MLYIoVltes,c(OC -67- PClge :2 of 5 Planning Commission Meeting of July 6, 2006 trees. Vice Chairperson Honan suggested adding palm trees could be added to the corners as an accent. The landscape architect noted that this could be done, although they are more problematic to install. Mr. Coda noted that they could add palm trees but they do not meet the stealthing expectations that the Commission has. Commissioner Sim asked why there was only three rows of grillaging on the parking structure. Mr. Coda noted that they extended the columns of the parking structure and felt that it was more aesthetically pleasing to have the trellis on both sides versus a half size trellis. Commissioner Romero asked how the cart storage would look like and where the designated cart storage location would be. Mr. Coda showed the cart storage on one of the slides. He noted that they will have a designated cart area. Public Hearing closed. Commissioner Prouty felt that the applicant had responded to the Commission comments. He suggested that the architect increase the amount of trees near the loading dock, Vice Chairperson Honan noted that the loading dock wall should be taller and the trellis would then be taller. Mr. Coda noted that the wall behind the wall with the trellis would be raised. Vice Chairperson Honan suggested that they include palm trees on the corners as accents. Commissioner Romero recommended that the outdoors storage be eliminated from the approval because it is blight to the public. He felt that the landscaping could be more pleasing. Commissioner Sim noted that the architect has responded to the Commission's comments. He was concerned with the loading dock area and suggested that more stealthing be added to the trellis wall. He added that more skinning techniques to the loading dock would eliminate his concern with the visual impacts on Dubuque. He also felt that the parking structure needs more stealthing. Chairperson Zemke noted that the landscaping is good but noted that the wind and maintenance playa big factor in the duration of the landscaping. He asked if the Commission wanted to discuss Commissioner Romero's comment on outside storage. Commissioner Romero noted that if this could be included in the Conditions of Approval. He asked if the lumber would be stored inside or outside. Mr. Coda noted that there will not be any outdoor storage of building materials and this is the purpose of the enclosed staging area. He added that the seasonal sales area is outside which is shown on the plans. He also pointed out that there are also sidewalk sales but may not be able to do this because of the configuration of the building. Commissioner Romero noted that the outdoor storage is included in staff's recommendation but felt that this needs to be eliminated. Senior Planner Carlson pointed out that this condition includes the outdoor garden and seasonal sales areas. He added that the Commission can limit the condition to the storage of these things and not allowing those that are not within those designated areas. Vice Chairperson Honan noted that the wood is staged outside and agrees with Commissioner Romero that the outside storage needs to be eliminated. Vice Chairperson Honan was also concerned with hot dog and coffee vendors. Mr. Coda noted that this is not a Home Depot function and that many vendors approach the store manager but it is the responsibility of the vendor to get the permits required by the City. He pointed out that there is a lumber staging area and that they do not have any issues with a more stringent condition of approval with regards to outdoor storage. Senior Planner Carlson read condition of approval number 7 into the record and added that this condition can be amended to include storage. Commissioner Sim felt that the project was very impressive and encouraged the maximum amount of stealthing in the loading dock with a paved pattern and some artificial stealthing on the palette wall until the landscaping is fully grown. He added that large cars can be viewed on the second floor of the parking structure but it could be stealthed by adding additional trellises with ivy. He further suggested changing the stucco windows to some type of glass skinning. S:\MLlIlovtUs\o7-0i&-Oi& Rope MLlIlovttes,c\oc. -68- PL1ge :3 of 5 Planning Commission Meeting of July 6, 2006 Motion Sim I Second Prouty adopting Resolution 2656-2006 recommending that the City Council certify EIR05- 0003 and approve P05-0035: PUD05-0003, UP05-0010, TDMO-0003, SIGNS05-0044 & DR05-0020, The Commission also recommended that the Council include the following: · Further stealthing of loading dock area, · Skin and texture the palette walls. · Refenestration of the pavement pattern to make the loading dock look like a plaza, · Create an office look using a spandrel glazing technique to make it look like an office. · The parking garage should have a filter or screening to hide cars on the second floor from street view, · Eliminate all outside storage of lumber and returned items. · Consider Palm trees, · Lager boxed trees near the loading dock area no smaller than 48 inch box trees, · Amending Condition A7 to address outside storage and vendor issues. · Keeping the site clean of boxes and debris, Roll Call: Ayes: Noes: Abstain: Absent: Commissioner Giusti, Commissioner Prouty, Commissioner Romero, Commissioner Sim Vice Chairperson Honan and Chairperson Zemke None Commissioner Teglia Approved by majority voice vote. 3. CT Mobile I Kaiser Facility Kaiser Permanente/Owner Kaiser Permanente/Applicant 1200 EI Camino Real P06-0026: UP06-0012 & DR06-0071 Use Permit and Design Review allowing a mobile computerized tomography (a) imaging unit with a new fire protection wall at the rear of the Kaiser Medical Center situated at 1200 EI Camino Real in the Planned Commercial (P-C) Zoning District in accordance with SSFMC Chapters 20,24 and 20.81, ADMINISTRATIVE BUSINESS ITEMS FROM STAFF None ITEMS FROM COMMISSION None ITEMS FROM THE PUBLIC None Attendance policv Bell market OranQe Avenue Fairfield uDdate ADJOURNMENT 9:55 P.M. S:\MlVloute.s\o:;'-OG-OG Rope MlVloute.s,cioc -69- p~ge -4- of 5 Planning Commission Meeting of June 1r 2006 Commissioner Prouty asked that there be a note in the file stating that it cannot be used as a second unit. Acting Chief Planner Kalkin noted second units require approval but this is not an application for a second unit. Approved by unanimous voice vote, PUBLIC HEARINGS 6. Home Depot/applicant Levitz SL San Francisc%wner 900 Dubuque Ave. P05-0035: PUDOS-0003, UPOS-0010, TDMO-0003, SIGNSOS-0044, EIROS-Q003 & DROS-0020 (Continued from May 18, 2006) Environmental Impact Report assessing environmental impacts, Planned Unit Development allowing a reduced front setback; Use Permit allowing outside storage and display, Design Review allowing construction of a 101,579 square foot Home Depot store, a 24,215 square foot Garden Center, open at- grade parking and a 2 level parking structure and generating in excess of 100 daily vehicle trips; Type C Sign Program comprised of building facade signs and retention of an existing pole sign with a total area exceeding 300 square feet; Transportation Demand Management Plan reducing traffic effects, situated at 900 Dubuque Avenue in the Planned Commercial (P-C-L) Zoning District in accordance with SSFMC Chapters 20.24, 20.81 & 20.85 Public Hearing opened. Recess called at 7:39 p.m. Recalled to order at 7:43 p.m. Senior Planner Carlson presented the staff report. Vice Chairperson Honan asked staff to review some of the issues at the May 15th meetingr being that she was absent. Senior Planner Carlson noted that some of the Commission's comments were: . Traffic, queuing with the left turn pocket into the site · Traffic backing out to US Highway 101 . Alternative access through the JPB site Commissioner Teglia added that they also asked for better aesthetics and rooftop parking. Senior Planner Carlson noted that the pictures presented by Commissioner Romero encouraged the applicant to revise the plans. Greg Georger Home Depotr noted that the architect has revised the plans. He pointed out that they looked into rooftop parking extensively and found that it doubles the cost of the building. He stated that he is unable to provide rooftop parking. Frank Codar Architect, gave a PowerPoint presentation and addressed some of the changes made to the proposal. The changes were - · Added a second lane into the parking lotr one is dedicated for the first level and the other allows the driver to continue straight this addressed the queuing concerns. · They added a significant tower element to show the entry to the site. · They upgraded the parking deck with vertical elements and freestanding trellises on the exterior · The architect eliminated the orange colorr with the exception of the corporate logo. · The fence is not a chain link fence but wrought iron fence. · Decorative lighting elements were added to the garden center and on the parking structure which was carried all around the deck. .s:\M'VIo"t~\O"-01.-0'" RPC MLVIo"t~,doc -70- P~gf :3 of l? Planning Commission Meeting of June 1/ 2006 Public Hearing closed. Commissioner Prouty questioned if there was going to be a no left hand turn at the median. He suggested that they not be allowed to make a left turn which would ensure that the driver goes toward the deck. Mr. Coda noted that they were entertaining the no left turn option but also did not want the customers that were in that area to go back out to the street to get find a parking space. Commissioner Giusti thanked the architect for not using orange color on the structure. Chairperson Zemke asked if the columns that support the parking structure had ivy growing on them. Mr. Coda noted that the columns will have ivy growing on them and the upper level planters will have vines growing on them. Chairperson Zemke also asked if there was going to be a stairway by the cargo elevators. Mr. Coda noted that this will be included. Commissioner Prouty asked if the freight elevators were the same size as those in the Colma store. Mr. Coda noted that the Colma elevators were smaller than the ones proposed in this Home Depot. Chairperson Zemke asked how opaque the mesh behind the wrought iron fence was for viewing purposes. Mr. Coda noted that the mesh is a three to two inch square so that people cannot pull things through them. Commissioner Romero was concerned with the palette enclosure and trash compactor area. He was concerned with this area becoming an outdoor area like with other Home Depots. He noted the importance to have a Condition of Approval requiring for everything to be contained within the building. Mr. Coda noted that there are enclosures that can be solid walls and could screen it more along so that it is not visible from Dubuque. Commissioner Romero asked where the delivery trucks would load and unload materials. Mr. Coda noted that all deliveries are done in the back. Mr. Coda and Commissioner Romero discussed the circulation of delivery trucks on the site. It was explained that the trucks would be at the site when the store is closed to the public and would enter the site through the customer access area and then go to the back and unload. Commissioner Romero stated that he does not want to see continuous outdoor storage in the palette area and containers in the parking lot or in the seasonal sales area. Mr. Coda suggested that there need to be some screen walls in the area to ensure what they are after. Commissioner Romero suggested continuing a wrought iron fence to screen the area too. Commissioner Romero asked if the SSF store going to replace the Colma store and if Home Depot was moving more towards serving contractors rather than for the consumers. Mr. Coda noted that they are not planning on expanding their operations to contractors and assured the Commissioner that this site would be a consumer Home Depot. Commissioner Teglia noted that the layout of the building on the property. He felt that the tower sticks out and did not see it as an improvement. He stated that the East elevation is the front door and the North elevation will be visible from 101. He pointed out that the loading docks and the storage will be seen from 101 and the building would have a better presence if it were oriented towards 101. he felt that the building should be offset towards Dubuque and the loading docks should be in the rear facing towards the railroads with a pocket lane. Vice Chairperson Honan asked for a clarification in the deliveries of the materials. Mr. Coda noted that they prefer to have delivery trucks in off peak hours. Vice Chairperson Honan noted that there will be an option of having the store operate 24 hours a day which will cause the store to have deliveries during business hours while there are customers in the store. Mr. George noted that the design and merchandise of the store is a typical Home Depot and not a contractor oriented store and added that the contractor base of their customers is 25%. He added that every delivery is a scheduled delivery and the goal is to deliver on non-peak hours. Vice Chairperson Honan asked if deliveries would be in the day on weekends. Mr. George noted that if they City desires not to have weekend business they could work with no deliveries on one day of the weekend and have deliveries on the other day of the weekend to be fully stoked on Monday morning for business. s:\MLVIoLottes\D"'-D:L-O';; R'PC MLVIoLotter.,d-oc -71- 'PClge "f of 1< Planning Commission Meeting of June 1, 2006 Vice Chairperson Honan asked where the appliances that have been returned be stored. Mr. George noted that the non operable appliances be scheduled for pickup as soon as possible and be stored near the delivery docks in the meantime. Vice Chairperson Honan asked how often the pickups of these appliances are performed. Mr. George noted that he would look into this and respond to Vice Chairperson Honan. Commissioner Teglia asked if the applicant considered a Home Depot Expo at the site. Mr. George noted that the expo concept and business model changed two years ago and added that 150f those were closed in the United States. Commissioner Sim noted that he is looking at the vertical expressions and noted that the north and west elevations do not match. Mr. Coda noted that these will be corrected because the west elevation is the determining height. Commissioner Sim added that the south and east elevations have the same matching issues. Mr. Coda noted that there are some corner elements that need to be refined corrected. He pointed out that the east elevation needs to wrap and a peak will go away. Commissioner Sim noted that he has not seen the roof plan for the parking structure to see how much density and coverage there is. Commissioner Sim added that the parapet should be screened and should look real. He noted that the loading and unloading is going to be an eyesore. He stated that the architect needs to show cross sections of 101 and how they expect to screen views from this area. He pointed out that the lighting will create a nightscape that will be dramatic when someone drives by. Commissioner Teglia and Mr. Coda explored the reorientation of the building towards Dubuque with loading in the back or on the side. Mr. Coda noted that they have explored it but have little flexibility because of heights and scales. Commissioner Teglia felt that the current design is not the best for the site. Commissioner Prouty asked if the architect could look at the truck delivery area to see if they could avoid any potential storage issues. Mr. Coda noted that there may be a way but could explore the rear corner in totality. Commissioner Sim stated that the cumulative effect of the aesthetics and traffic is significant. He would like to see a diagram of where the footprint relative to the building stands. Mr. Coda noted that some of the photos are very hard to put together but will try and put something conceptual together. Commissioner Romero was concerned with the carts not having a specified storage area because they are scattered throughout the parking lot. Mr. Coda noted that there are cart corrals throughout the parking lot. Commissioner Romero added that there should be a designated storage area for the carts and not throughout the parking lot. Mr. Coda pointed out that the concept is to have them stored in the vestibule. Commissioner Romero asked what would be washed down at the TRC storage. Mr. Coda replied that this is where customers would return any rental equipment and it would be washed down and prepared for next rental. He added that they comply with the current codes for this type of area. Commissioner Romero asked if the outside display area would be on an ongoing basis. Mr. Coda stated that this will be ongoing depending on the sales that are occurring at the time. Commissioner Prouty asked what the use would be for the seasonal sales area. Mr. Coda noted that this area would be used about four to five times a year and with the exception of the Christmas tree sales they are all a week in duration. He clarified that the sidewalk display area will be the ongoing display area. Commissioner Prouty asked if the cart corrals were going to take up some of the parking spaces and if so, how much would it impact the parking on the site. Mr. Coda noted that these are already in the plans and do not impact the parking. Vice Chairperson Honan noted that that this looks like a standard Home Depot building. Mr. Coda noted that it is a custom design because they do not have other Home Depots with a parking garage. She noted that she is not comfortable on the design. Mr. Coda noted that they can work on the details of the corner and pointed out that they are nearing their budget on this project. Vice Chairperson Honan was uncomfortable with the location of S:\Mtv..Lo<tes\oG-O:l-OG 'RPC MtVl.Lo<Us,cloc -72- 'P~'2le 5 of ~ Planning Commission Meeting of June 1, 2006 the loading docks and pallet storage. Commissioner Teglia noted that the Commission is looking for other details on the plans, which is something the architect is willing to do but there is a time constraint issue. He suggested having the applicant withdraw their application and work with staff to make the proposed project aesthetically pleasing. He noted that if this is what they are going to render on decision on, then the Commission could conclude that there are no overriding considerations to warrant the project and deny the project. Chairperson Zemke asked for clarification from staff on time constraints. Senior Planner Carlson noted that the applicant has one year under California law with only a maximum of a total of a 90 day extension in which the decision making body has to make a decision, which includes City Council. He noted that the one year timeline was up on May 31 and the applicant has agreed to an additional 60 days, until the end of July. He pointed out that if the applicant returns on the June 15th meeting the Council has both meetings in July to review the project. Commissioner Romero asked that a comparative analysis of Home Depot and Lowe's be given to the Commission when the applicant returns. Senior Planner Carlson noted that both sites are separated by a building and stated that it is difficult to get a good picture of the area from different angles. Commissioner Romero noted that he does not want to move the project forward with a recommendation to deny. He asked if the applicant was willing to return to the Commission and address the issues brought up at the meeting. Mr. Coda stated that they would like the opportunity to do this. He clarified that they granted a 45 day extension which was up to July 15th. He felt that they are agreeable to extending that if the Council needs another session with the applicant. Commissioner Prouty pointed out that getting a full picture of the area and a perspective of both sites is very important so the Commission has a full picture of what this will look like. Mr. Coda noted that they cannot get a 3-dimensional view of the site and a 2-dimensional view of the area is extremely difficult to get. Commissioner Sim noted that a physical model will allow each individual to see the project in different ways and see the entire context of 101, adjacent buildings, and the project. Mr. Coda noted that a 3-dimensional model may not be ready in the short time frame they have. He noted that a strip elevation would give the Commission some sense of the masses. Commissioner Teglia reiterated his concern of the loading dock and trash compactor areas. He suggested that the architect explore putting these on the railroad side. Commissioner Sim suggested seeing a materials color board. Chairperson Zemke noted that the Commission's consensus is to see a roof plan, screening of the freight area or possible relocation, additional detail on the sign tower, cumulative visual effects of this project and Lowe's, cart storage and corner treatments. Commissioner Teglia added that they see the total sign program. Mr. Coda noted that the initial submittal did have the detail and due to time constraints could not include it with this packet. He stated that it would be in the future packet. Senior Planner Carlson noted that the next meeting is on June 15th at which they will have a Public Hearing on Lowe's and this may be the Commission's opportunity to see both projects together. He added that CalTrans sent in a letter after the statutory comment period. Their comments are on the traffic study and one of many of their comments is in their jurisdiction. He pointed out that the City has been using the traffic model that they suggested and has met with CalTrans to inform them of this. He also added that the City is not obligated to respond to their comments because the comment period has closed. Many of the impacts that they are concerned with are occurring in the year 2020 and it is likely that the freeway will not be able to provide traffic accessibility. He concluded that staff is overstating the effects on traffic and local street system. Motion Sim I Second Romero to continue the item to June 15, 2006. Approved by unanimous voice vote. s:\M~""l-tte5\o"'-01.-0'" R.1>C ML""l-ttes,c;loc -73- 1>~ge '" of 1< Planning Commission Meeting of June 1, 2006 Commissioner Teglia addressed the architect and suggested that they ask for additional time if they are not ready by the June 15th meeting. Recess called at 9:25 p.m. Recalled to order at 9:35 p.m. [Items 7-11 were discussed together.} 7. Type "C" Sign (Shell) Eleanor ColombanilOwner Jim Martin/Applicant 710 EI Camino Real P05-0055: SIGNS05-0017 Type "C" Sign Permit to install new signage at a gas station situated at 710 EI Camino Real in the Retail Commercial (C-1-L) Zoning District in accordance with SSFMC Chapters 20.76 & 20.86. 8. Type "c" Sign (Shell) Jim Martin/applicant Equilon Enterprises, LLC/owner 899 Airport Blvd. P05-0056: SIGNS05-0018 Type "C" Sign Permit to install new signage at a gas station situated at 899 Airport Boulevard in the Planned Commercial (P-C-L) Zoning District in accordance with SSFMC Chapters 20.76 & 20,86 9. 'Type "C" Sign (Shell) Peter Tobin/applicant Equilon Enterprises, LLC/owner 123 Linden Ave. P05-0072: SIGNS05-0025 Type "C" Sign Permit to install new signage at a gas station situated at 123 Linden in the Planned Commercial (P-C-L) Zoning District in accordance with SSFMC Chapters 20.24, 20,76 & 20,86 10. Type "C" Sign (Shell) Peter Tobin/applicant Shell Oil Co.lowner 248 So. Airport Blvd. P05-0073: SIGNS05-0026 Type "C" Sign Permit to install new signage at a gas station situated at 248 So. Airport Blvd in the Planned Commercial (P-C-L) Zoning District in accordance with SSFMC Chapters 20.24, 20,76 & 20.86 11. Type "C" Sign (Shell) ARC Architects, Inc.lapplicant Derenzi, Marie G/owner 140 Produce Ave. P05-0111: SIGNS05-0043 Type "C" Sign Permit allowing a master sign program including building facade signs, canopy signs, monument sign, and a pylon signs exceeding 1 0 feet in height and signs exceeding 1 00 square feet in area, situated at 140 Produce Avenue, in the Planned Commercial (P-C) Zoning District, in accordance with SSFMC Chapters 20,81 & 20,86 Senior Planner Carlson presented the staff report. .s:\M~VIolo(m\oG-D:L-OG R'PC M~V\.utes,vtoc -74- 'Pl'I0erof e Planning Commission Meeting of May 18, 2006 Commissioner Sim noted his supporting of staff's recommendation and noted that a phasing strategy could also work for the applicant. Commissioner Teglia asked if the roll up doors could be replaced by glass doors similar to what is used in car dealerships. He asked the applicant if they could accomplish their need with a glass door and if two doors were needed. Mr. Leung noted that he needs two doors. He added that a glass door would make his business difficult because they use a hand truck. He pointed out that he does not the means to make any additional improvements to the property because he did not realize the cost of the proposal. Commissioner Prouty felt that the applicant needed to return with a landscape plan and information on the feasibility of installing glass doors or what can be done with the roll up doors. Commissioner Teglia noted that glass doors could work better with the proposed operation. Commissioner Sim stated that the door can also be one big panel that can hinge over or slide up. He added that the applicant work with architect to find stealth technology that will make it work. Commissioner Prouty also asked for colors and texture detail. Commissioner Romero added that the applicant needs to move away from the industrial look and make it look more creative. The Commission, staff and the applicant discussed continuing the item for response the following: . Detail on rollup doors . Color and materials board . Landscape plan Motion Teglia to continue the item to June 15, 2006. Mr. Leung noted that his architect is going to be on vacation for three weeks and may not met the deadline. He suggested that the Commission approve the project with a condition to have him return in a month with the roll up door and landscape plan details. Staff and the Commission discussed continuing the item with pending approvals of the landscape plan and roll up door details. Senior Planner Carlson noted that the Commission could do this because the landscaping would be installed last. Motion Teglia I Second Sim to approve P06-0010: UP06-0006 & DR06-0010 subject to future review of the aesthetics, rollup doors, landscape and colors / materials board within 30 days of issuance of the building permit. Approved by unanimous voice vote. Vice Chairperson Honan - absent Recess taken at 8:49 p.m. Recalled to order at 9:00 p.m. 5. Home Depot/applicant Levitz SL San Francisc%wner 900 Dubuque Ave. P05-0035: PUD05-0003, UP05-0010, TDMO-0003, SIGNS05-0044, EIR05-0003 & DR05-0020 Environmental Impact Report assessing environmental impacts, Planned Unit Development allowing a reduced front setback; Use Permit allowing outside storage and display, Design Review allowing construction of a 101,579 square foot Home Depot store, a 24,215 square foot Garden Center, open at-grade parking and a 2 level parking structure and generating in excess of 100 daily vehicle trips; Type C Sign Program comprised of building facade signs and retention of an existing pole sign with a total area exceeding 300 square feet; Transportation Demand Management Plan reducing traffic effects, situated at 900 Dubuque Avenue in the Planned Commercial (P-C-L) Zoning District in accordance with SSFMC Chapters 20.24, 20.81 & 20.85 Public Hearing opened, Senior Planner Carlson presented the staff report. s:\M.......utes\Os-:l.11-0G R,1>C M.......utes,clDc -75- 1>&lge 5 of3 Planning Commission Meeting of May 18, 2006 Greg George, Home Depot Real Estate Manager, presented the project team. Frank Coda & Carolyn-Shaw, AfCfficrs,- gaveaPowerPolnt presentation showu'lgllow option "A" addressed onsite circulation number of parking spaces and pedestrian access from upper level. Mr. Coda pointed out that the deck has been moved to attach to the building which allowed them to pick up 65 additional spaces. He noted that option "8" does not have any of the changes in option "A". He showed pictures showing the different views of the site. He also showed a comparison of the Colma site plan and the Dubuque Avenue site plan. He pointed out that they will have 2 freight sized elevators. Mr. Coda noted that one of the differences between the Colma store and the South San Francisco (SSF) store is that Colma has one access point and the SSF store has two access points. Public Hearing closed. Commissioner Romero noted that he and Commissioner Sim saw a presentation of big box retail at the Planner's Institute. He showed pictures of a Home Depot in Southern California that was a superior design. He was concerned with the current design and felt uncomfortable with the proposal. Commissioner Sim noted that he is looking at the entire area. He noted that it was important to look at the cumulative effect on the entire corridor with other applications that are in the process due to the importance of the corridor. He noted that the pictures presented by Commissioner Romero show more detail than the SSF proposal and pointed out that this detail needs to be reflected at the site also. He felt that the architect needed to concentrate on the architectonic features first rather than on landscaping that may not be as full as shown on the renderings. TAPE 2 - bad Commissioner Sim continued his comments by asking for more views and elevations of the project in conjunction with the adjacent projects. TAPE 3 Commissioner Prouty noted that the largest issue is going to be circulation with regard to the intersection exiting from 101 Northbound. He added that it is so narrow that there will be problems with cars backing out onto the freeway. Commissioner Teglia noted that these comments are the same issues that were brought up at the Joint Study Session. He pointed out that the Commission and Council encouraged them to make this project the best Home Depot created because it will be viewed from 101. He stated that the original design is being adhered to and the old pole is going to remain. He felt that the building could be situated at that marquis and make it a nice quality looking building. He added that the parking structure is encroaching into the setback and that roof parking was a possibility that was brought up at joint study session. This would allow them to pull back from the setback. He was also concerned with traffic on Dubuque and backing up to the hook ramps. He suggested a straight lane to Home Depot and allowing straight access from the intersection. Chairperson Zemke noted that he prefers option "A". Commissioner Prouty asked why the parking analysis used stores in EI Camino, Hayward and San Mateo but not the Colma store. Mr. Coda noted that the consultant was directed not to look at it because its revenues are much higher than they should be, which is t he reason why they are looking at the SSF site for a new store. He added that the stores chosen are bringing in the projected revenue for this store. He pointed out that the suggestion to close an island can be done also. He asked if there was a particular style that the Commission was interested in having. Commissioner Teglia noted that at the study session they were informed that the City was looking for top quality design and not have the bright orange so visible. S:\Mtlll.i-ttts\D5-:L!?-OG R.PC Mtlll.v.tes,c;(oc -76- Pll'2le G of.!) Planning Commission Meeting of May 18, 2006 Mr. Coda asked for direction from the Commission in what type of aesthetics they are looking for. Some of the comments the Commission offered were: . Roof parking with at grade parking rather than the parking structure. . Reorienting the building . Allow for different skinning techniques with different colors of stucco . Use of different materials . Stealthing so that it does not look like a warehouse look and give it some frontality. . Reconfigure the building to face Dubuque rather than facing the parking structure. Mr. Coda noted that they can work on the aesthetics and design. He stated that they looked at rooftop parking and was not economically feasible. He added that they can work on a fa<;ade for Dubuque but the main entrance will be towards the parking lot. He also suggested including a tower element at the corner Commissioner Prouty suggested that the entrance to the parking lot be straight off the freeway on the northern portion of the site. He felt that this would eliminate some of the queuing problems. Mr. Coda noted that the area in question is a Caltrain controlled intersection and they may not grant an access point at that intersection. Senior Planner Carlson pointed out that this option was looked at early in the process but being that it is owned by the Joint Powers Board (JPB) the application process would have gone in a different direction. Commissioner Teglia noted that the Commission can make a formal request to explore access through that area of the site to JPB. Senior Planner Carlson pointed out that asking for this may be difficult to get from them. He also noted that the permit streamlining deadline is fast approaching. Commissioner Teglia felt that the entitlements being requested were pushing the envelope and pointed out that the traffic impacts from these entitlements need to be resolved now before they become a problem later. He suggested that access on the northern point of the site can be looked into. Senior Planner Carlson noted that staff could follow up on this but it may adversely affect the project. Commissioner Sim asked to see if the traffic consultant felt this would mitigate the problems. Mark Crane, Traffic Consultant, noted that this would be difficult to implement because there is not much distance between the intersection and the railroad tracks. He pointed out that an immediate curve to the right would need to be provided in order to serve Home Depot. He also noted that access at another location is needed to the warehouse to have a smooth channelized ingress and egress serving Home Depot. Another issue Mr. Crane noted was the interchange has a delicate balance with the intersections not operating at an acceptable level of service in the year 2020. He noted that the intersection serves as a "T" intersection and if it is revised to serve Home Depot from that intersection, there will be a large amount of traffic to and from the warehouse. He added that in 2020 the traffic on the intersections will be barely cleared. He pointed out that with a four-legged intersection there will be another level of delay where a second departure lane from the freeway will need to be created. Mr. Crane further noted that when they looked at Home Depot and Lowe's in operation, the queuing did fit into the available storage length. The new plan has an additional left turn pocket which will serve the central driveway. He pointed out that the second driveway will be a second entry point if there is a backup at the first driveway. He also noted that the new proposed driveway is 30 feet wide and has room for 1 inbound and 1 outbound lane with 110 feet of queuing space. He added that there is room for a second inbound lane to the driveway. Commissioner Prouty asked if there would be a traffic light at the intersection. Mr. Crane noted that it does not meet the requirements for a traffic light but if needed in the future a 4 way stop sign could be installed. Commissioner Teglia and Commissioner Prouty were comfortable with having Home Depot add the second driveway isle, as well as install a 4 way stop sign if it is needed in the future. Chairperson Zemke noted that the Commission is not satisfied with the design aspect of the project and questioned if the applicant was willing to return with changes. Mr. Coda replied affirmatively and added that there is a mitigation measure reqUiring them to perform a study up s:\MlV\.lottes\D5-:l.g-0G 'R.'PC MlV\.lottes,cjoc -77- 'P~ge T of3 Planning Commission Meeting of May 18, 2006 to 2010 to determine if they will install a stop sign or signal at the driveway entry. Commissioner Giusti noted that the parking garage will be the focus of the building and asked if it would be behind the building. Mr. Coda noted that parking garage and the warehouse will look like one large integrated building. Commissioner Romero asked to see the building without the landscape and with the landscaping. Senior Planner Carlson, the Commission and the Mr. Coda discussed potential dates of having Home Depot return to the Commission for further review and if the architeet would have enough time to respond to all the Commission comments. Mr. Coda noted that they could be back by the June 1, 2006 meeting. Mr. Coda noted that with the second lane there may be a loss of parking and wanted to know if the Commission was comfortable with this. Commissioner Prouty noted that there does need to be enough parking so that customers are not circulating around the parking lot looking for a spot. Commissioner Teglia suggested looking once more at rooftop parking. The Commission felt that option "A" was better. Motion TeQlia I Second Prouty to continue the item to June 1, 2006. Vice Chairperson Honan - absent. ADMINISTRATIVE BUSINESS 6. Cityview Marbella 280, LLP/Owner Watt Communities/ Applicant Gellert Boulevard POS-OllS; DR06-0041 Confirmation of the Acting Chief Planners approval of the color samples and roof materials for South City Lights (formerly Marbella) at 2280 Gellert Blvd in the Multi-Family Residential (R-3-L) Zone District. Acting Chief Planner Kall<in stated that the sample of the roof material had been installed on the site and the Commission had been .invited to see it. She noted that Scott Allman was requesting that the Commission approve the materials that have been installed on a portion of the site. Scott Allman, Watt Communities, noted that their color consultant would make a presentation on the colors and materials to the Commission. Leslie Tipple, , noted that they are trying to go with a Mediterranean look and chose warm earthone colors. She explained in detail the colors on all 3 color schemes. The Commissioners noted that they had been out to the site and were satisfied with tile and the colors chosen for the site. Consensus of the Commission to recommend that the Citv Council confirm the Adina Chief Planners aODroval of the color and roof materials. ITEMS FROM STAFF Assistant City Attorney Spoerl informed the Commission that the City Council at a study session on April 19, 2006 discussed policy changes to absences for Boards and Commissions. He explained that 3 absences in a 12 month period or absences in 1/3 or more of the meetings in one year would cause for that person's appointment to be put on an agenda and may result in termination by the City Council. He added that the policy will allow one grace absence; the second would call for a warning letter from the Mayor and the third would be possible termination. S,\MlV\oo.<tes\D5-:l~-O'" RPC MLv...o.<t:es,c(oc -78- P&lge ~ o{~ Planning Commission Meeting of March 2, 2006 8. Levitz SL San Francisco/Owner Home Depot/Applicant 900 Dubuque Avenue POS-0035, EIROS-0003 (SCH# 200S-08-2032) Conduct a public hearing and take public testimony on the Home Depot Draft Environmental Impact Report. Public Hearing opened. Senior Planner Carlson presented the staff report. Public Hearing closed. Vice Chairperson Honan asked that the Traffic Consultant give a summary of the traffic study findings. Mark Crane, Crane Transportation Group, noted that they looked at Home Depot in conjunction with Terrabay and Lowe's being fully constructed. He noted that Dubuque will be the main congestion area and cars will walt a couple cycles at the intersection. He added that vehicle queues wlJl be extending to the afternoon hours. He noted that the entry driveway to the garage is not channelized far enough into the parking lot. He added that parking may not be adequate on Saturday afternoons for a couple hours. Commissioner Prouty asked if the Traffic Consultant has suggested making changes to the proposal. Mr. Crane noted that they have identified the problem and recommended that the applicant look at redesign of the parking lot. Commissioner Giusti suggested redesigning the garage also. Commissioner 'Romero felt that there is a conflict betvveen the vehicles and Joot traffic. Mr. Crane noted that the ramp at the second level does not pose as a problem because of its location. Vice Chairperson Honan asked if the delivery trucks would impact the traffic. Mr. Crane noted that the southerly driveway will have no pedestrian traffic and the delivery trucks would use this driveway. Vice Chairperson Honan asked if the calculations, which included Terrabay, factor in the retail portion of the project. Mr. Crane noted that the proposal included the version that was before the Planning Commission a few weeks ago. Commissioner Romero questioned if the consultant considered loading and unloading of building materials at the parking lot into the traffic study for circulation purposes. Mr. Crane noted that the parking isles are designed per the City's criteria for shopping centers. He added that there is always the potential for blocklng the isles. lOMINISTRATIVE BUSINESS ). A third review of the remaining Conditions of Approval associated with UP04-0029 - 915 Linden Avenue Moved to Consent Calendar under Agenda Review. TENS FROM STAFF Chief Planner Sparks noted that the Commission will have a Joint aty Council / Planning Commission meeting regarding the Genentech Master Plan and the most current rendition of Terrabay Phase III. Assistant City Attorney Spoerl noted that there is an ethics training meeting that will be held on March 9111 from 6-8 p.m. -1.i......\.twWLiulLl.zeli Mi.vIul%s\:!OOGo\OS-O::2-OGo 'RJ>C MLv..w.tes,cl.oc -79- "~ee S of" RB Agenda arch 1St 2005 1ge 4 of7 O'W'NER: APPLICANT: ADDRESS: PROJECT NUMBER: PROJECT NAME: ESTIMATED TIME Laurence Jacobs Ted Witt 390 Swift Ave. #7 POS-0038 & UFOS-OOI2 Use Permit (Case Planner: Steve Carlson) DESCRIPTION: Use Permit allowing food preparation with daily hours of operation from 7 .AM: to 2 AMt situated at 390 Swift Avenue in the Planned Industrial Zoning District (P-I) in accordance with SSFMC Chapter 20.33. The Board had no comments. Approved as submitted. OWNER: APPLICANT: ADDRESS: PROJECT NUMBER: PROJECT NAME: Nguy~ Tom C. Nguy~ Toan C. 656 Spruce Ave. P05-0022t UP05-0006 & DR05-00I4 Use Permit for deck exceeding 300 sq ft (Case Planner: Steve Carlson) DESCRIPTION: Use Permit and Design Review to construct a rear deck greater than 300 square feet in the Single-Family Residential (R-I-B) Zoning District in accordance with SSFMC Chapters 20.16, 20.81 & 20.85. The Board had the following comments: 1. Bring the railing of the old deck up to code and use the same picket design and spacing as you are using on the new deck:. 2. Adjust the spacing on the pickets to comply with UBC requirements. Submit changes to the Planning Division. No need to go back to DRB. Dinner Break OWNER: APPLICANT: ADDRESS: PROJECT NUMBER: PROJECT NAME: DESCRIPTION: 5 :55 pm Levitz SL San Francisco Home Depot 900 Dubuque Ave. P05-0035, UPOS-OOIO & DR05-0020 Home Depot (Case Planner: Steve Carlson) Use Permit and Design Review to allow construction of a 101,272 sf Home Depot store, a 24,522 sf Garden Center and a 2- story (3 level) parking structure situated at 900 Dubuque Avenue in the Planned Commerical (P-C-L) ZoDing District in accordance with SSFMC Chapters 20.24, 20.81 & 20.85. -80- RB Agenda .arch 15, 200S 1ge 5 of7 ESTIMATED Tllv.lE The Board bad the following comments: 1. Continue the buildii:J.g detailing onto the south and west elevations, not just on the north and east elevations. 2. Single-pole freestanding can signs are not encouraged. Consider a different type of design such as a pylon sign. 3. Consider incorporating rooftop parking over the store to reduce the height of the proposed parking structure. The 3-story parking structure, as it is, overwhelms the view from soutbound. Highway 101 4. A lot of the species on the plant list will not do well in SSF. Revise the plant schedule using species that are better suited to SSF's climate. Consider using some of the trees from the opposite side of the street; Magnolias and flowering pear trees are the most common types. 5. The trees around the parking structure need to be taller. 6. More detail on the landscaping at the main entry driveway between the two buildings. 7. Use creeping fig or boston ivy on the parking structure. 8. Plant trees along the south and west property lines Revise plans and resubmit to the DRB for further review. OWNER: APPUCANT: ADDRESS: PROJECT NUMBER: PROJECT NAME: Prasad, Mahendra Prasad, Mahendra 711 :Hickory Place P04-0109 & DR04-0061 New SFR on Hickory Place (Case Planner: Steve Kowalski) Resubmittal DESCRIPTION: Design Review of a new single-family dwelling on Hickory Place behind 710 Olive Avenue in the Medium Density Residential (R- 2-H) Zoning District in accordance with SSFMC Chapters 20.18 & 20.85. The Board had the following comments: 1. The house is still too massive; some of the reductions made to the 3rd floor should be continued on the 2nd floor to help make the structure look less massive. 2. The front elevation still has too many different roof designs. Simplify the roof plan even further so that the front elevation doesn't look so incongruous. 3. Change ceiling heights from 9'0" to 8' or 8'6" to cut down some of the height. 4.. Strawberry trees will not grow as tall as the house; select a species that will grow to approximately the same height as the house. S. Clearly show the outline of the landscaped areas and paved surfaces in the rear yard on the Site Plan. Revise the plans and resubmit to the DRB for further review. -81- May 17, 2005 Page 4 of9 7. OWNER: APPLICJ>.NT: ADDRESS: PROJECT NUMBER: PROJECT NAME: Levitz SL San. Francisco Home Depot 900 Dubuque Ave. POS-D03S, DROS-0020 & UPOS-OOIO Home Depot (Resubmittal) (Case Planner: Steve Carlson) DESCRIPTION: Use Pem:rit and Design. Review to allow construction of a 101,272 sf Home Depot store, a 24,522 sf Garden Center and a 2-story (3 level) parking structure situated at 900 Dubuque Avenue in. the Planned Commerical (P-C-L) Zoning District in accordance with SSFMC Chapters 20.24, 20.81 & 20.85 The Board had the following comments: 1. Do not use intemal1y illuminated can signs; use external lighting or individually illuminated channel letters. 2. Consider grouping the roof mounted equipment and using roof screens. No need to come back to the DRB. 8. DINNER BREAK OWNER: APPLICANT: ADDRESS: PROJECT NUMBER: PROJECT NAME: Ping Hsu Ping Hsu Vacant Lot - Terrabay (phase I .Area) POS-0018, PPOS-OOOl & PM05-000l Terrabay (Case Planner: Steve Carlson) DESCRIPTION: Precise Plan and Tentative Parcel Map to divide a 9,261 square foot lot into three lots and develop a single family home on each situated at the intersection of North crest and Wmdcrest Lane in the Terrabay Specific Plan District in accordance with SSFMC Chapters 19.48 & 20.63 The Board had the following comments: 1. Provide a cross section for the entire site including all retaining walls and staircases to clarify bulling pad relationships. 2. Specify the type of retaining walls and materials to be used on the plans. 3. Submit a materials and color board for the exterior finishes. 4. Show the steps outside the entrance to the home on Lot 179A 5. The North elevation of 179A is missing the garage window. 6. Add a window to the garage on Lot 179B. 7. The master bedroom of l79B is missing a window on the west elevation. 8. The 2nd -story bay over the garage on Lot 179B is missing from the roof plan. 9. The 2nd_story bay in Bedroom #3 on Lot 179C is missing from the roof plan. 10. The spaces between the homes are much too narrow for a Bishop Pine and Monterey Cypress. Delete the trees and just use Escalonia shIubs instead. 11. Incoporate the landscape pallete from the Phase I Terrabay Development to improve the qualiyt of the fit with the existing neighborhood. Revise plans and resubmit them to the DRB for further review. -82- May 17, 2005 Page 4 of9 7. OWNER: APPLICJ\NT: .ADDRESS: PROJECT NUMBER: PROJECT NAME: Levitz SL San Francisco Home Depot 900 Dubuque Ave. P05-0035, DR05-0020 & UPOS-OOIO Home Depot (Resubmittal) (Case Planner: Steve Carlson) DESCRIPTION: Use Permit and Design Review to allow construction of a 101,272 sf Home Depot store, a 24,522 sf Garden Center and a 2-story (3 level) parking structure situated at 900 Dubuque Avenue in the Planned Commerical (P-C-L) Zoning District in accordance with SSFMC Chapters 20.24, 20.81 & 20.85 The Board had the following comments: 1. Do not use internally illuminated can signs; use externa1lighting or individually illuminated channel letters. 2. Consider grouping the roof mounted equipment and using roof screens. No n.eed to come back to the DRB. 8. DINNER BREAK OWNER: APPUCJ\NT: "tillDRESS: PROJECT NUMBER: PROJECT NAME: Ping Hsu PingHsu Vacant Lot - Terrabay (phase I Area) POS-0018, PPOS-OOOl & PMOS-0001 Terrabay (Case Planner: Steve Carlson) DESCRIPTION: Precise Plan and Tentative Parcel Map to divide a 9,261 square foot lot into three lots and develop a single family home on each situated at the intersection ofNorthcrest and Windcrest Lane in the Terrabay Specific Plan District in accordance with SSFMC Chapters 19.48 & 20.63 The Board had the following comments: 1. Provide a cross section for the entire site including all retaining walls and staircases to clarify bulling pad relationships. 2. Specify the type of retaining walls and materials to be used on the plans. 3. Submit a materials and color board for the exterior finishes. 4. Show the steps outside the entrance to the home on Lot l79A 5. The North elevation of 179A is missing the garage window. 6. Add a window to the garage on Lot 179B. 7. The master bedroom of 179B is missing a window on the west elevation.. 8. The 2nd-story bay over the garage on Lot 179B is missing from the roof plan. ' 9. The 2nd -story bay in Bedroom #3 on Lot 179C is missing from the roof plan. 10. The spaces between the homes are much too narrow for a Bishop Pine and Monterey Cypress. Delete the trees and just use Escalonia shrubs instead. 11. Incoporate the landscape pallete from the Phase I Terrabay Development to improve the qualiyt of the fit with the existing neighborhood. Revise plans and resubmit them to the DRB for further review. -83- Planning Commission Staff Report DATE: May 18, 2006 TO: Planning Commission SUBJECT: 1. EIR assessing the environmental impacts associated with a new 101,579 square foot Home Depot store, a 24,215 square foot Garden Center, open at-grade parking and a 2 level parking structure. 2. Planned Unit Development Permit allowing parking in a portion of the front setback. 3. Use Permit allowing outdoor sales, outdoor storage, a use generating in excess of 100 vehicle trips per day, up to 24 hour daily operation, and the determination of a parking rate. 4. Design Review of a 101,579 square foot Home Depot store, a 24,215 square foot Garden Center, open at-grade parking and a 2 level parking structure. 5. Transportation Demand Management Plan reducing vehicle trips. 6. Type C Sign Permit allowing a master sign program consisting of new building fayade signs and the retention of a double faced pylon sign with a total sign area exceeding 300 square feet. Address: 900 Dubuque Avenue (APN 015-021-090 & SBE 13 5-41-41 P AR.1) Zone: Planned Commercial Zoning District (P-C-L) SSFMC Chapters: 20.24, 20.74, 20.81 & 20.86. Owner: Levitz SL San Francisco Applicant: Home Depot Case Nos. P05-0035 (pUD05-0003, UP05-001 0, TDMO-0003, SIGNS05-0044, DR05-0020 & EIR05-0003) RECOMMENDATION: That the Planning Commission adopt a resolution recommending that the City Council certify 1) EIR assessing the environmental impacts associated with a new 101,579 square foot Home Depot store, a 24,215 square foot Garden Center, open at-grade parking and a 2 level parking structure including a Statement of Overriding Considerations; and approve 2) Planned Unit Development Permit allowing parking in a portion of the front setback; 3) -84- May 18, 2006 P05-0035 Home Depot Page 2 of 10 Use Permit allowing outdoor sales, outdoor storage, a use generating in excess of 100 vehicle trips per day, up to 24 hour daily operation, and the determination of a parking rate; 4) Design Review allowing anew 101,579 square foot Home Depot store, a 24,215 square foot Garden Center, open at-grade parking and a 2 level parking structure; 5) Transportation Demand Management Plan reducing vehicle trips; and 6) Type C Sign Permit allowing a master sign program consisting of new building fa~ade signs and the retention of a double faced pylon sign with a total sign area exceeding 300 square feet, subject to adopting the conditions of approval. BACKGROUND: Project Overview The 7.62 acre project site is situated at 900 Dubuque Avenue, and is bounded on the west and north by Dubuque Avenue and Highway 101, on the south by single-story office buildings and services, and to the east by Union Pacific Railroad line right-of-way. PROJECT DESCRIPTION The proposed development involves the demolition of the existing Levitz building totaling 126,326 square feet and the construction ofa 101,579 square foot one-story Home Depot building material store, an adjoining 24,215 square foot outdoor Garden Center and Nursery, and a small seasonal outdoor sales and display area. Parking for a minimum of 426 passenger vehicles will be provided in a two level garage and an open on-site parking lot. The signs will provide a total sign area of an estimated 960 square feet, including the retention of the existing mono-pole sign. An Alternative Plan increasing the parking to 490 spaces has recently been proposed. The plan is reviewed in more detail in the section entitled Alternative Plan. The Alternative site plan is included in the plan set. Proposed Use The proposed development is for retail sales of building supplies, lumber, hardware and associated items such as appliances, barbeques, pool accessories, home furnishings, patio furniture and materials associated with home improvement and maintenance. The proposed outdoor Garden Center and Nursery would provide for retail sales of plant and nursery items. It is anticipated that the store will also provide rental tools and equipment to be leased for construction, gardening and home improvement projects. It is expected that sales activity will also include propane, trailers and sheds. On-site truck rentals will probably occur and the site may have several outdoor independent food vendors. The project will include outdoor sidewalk sales and display of special products, such as plant and nursery materials, barbeques, outdoor patio furniture, tools and seasonal decor in the parking lot -85- May 18, 2006 P05-0035 Home Depot Page 3 of 10 area. Seasonal sales events of items such as pumpkins and holiday trees and wreaths, would take place near the Garden Center. Seasonal sales events are estimated to be 4 times per year. In response to the Planning Commissioner's comments, the applicant has recently revised the site plan to provide increased on-site circulation flow and a left turn pocket from Dubuque Avenue. The applicant is also proposing an Alternative site plan for the Commission consideration that increases the parking by extending the garage over the main aisleway. The applicant will make a detailed presentation at the Commission meeting on both alternatives. Store Operation The project will require delivery of heavy merchandise. Items will be off-loaded at the loading docks on the northerly end of the building and brought inside with forklifts. The store operating hours are typically 6 AM to 10 PM with the option of remaining in operation 24 hours per day. Truck deliveries would occur throughout the day and may include 24 hour deliveries. Outdoor storage of garden and display materials and periodic outdoor sales events are part of the store operations similar to other garden and material centers. The store will employee an estimated 150 - 175 full-time and part-time employees primarily derived from local communities. It is assumed that managers and employees will be transferred from other stores to maintain quality of service and operational consistency. The shifts are likely to number 2 to 3 per day with more shifts if the store operates on a 24 hour basis. Approximately 50 to 75 employees are anticipated per shift. Entitlements The applicants are requesting several entitlements including a Planned Unit Development to allow a slight reduction from minimum required front setback for a small portion of the parking area along Dubuque Avenue; a Use Permit allowing outdoor sales, outdoor storage, a use generating in excess of 100 vehicle trips per day, up to 24 hour daily operation, and the determination of a parking rate; a Type C Sign Permit for a sign program with a total area in excess of 300 square feet and the retention of a pole sing in excess of 10 feet in height; Design Review of the proposed improvements; and a Transportation Demand Management Plan (TDM) to reduce traffic impacts. An Environmental Impact Report (EIR) with the likelihood of significant unavoidable cumulative traffic impacts will require the development proposal to be reviewed by both the City Council and Planning Commission. DISCUSSION: The General Plan Land Use designation of the project site is Business Commercial and the site is situated in the Planned Commercial (P-C) Zoning District. The proposed development is consistent with both the General Plan and the Zoning Ordinance. The General Plan principles, -86- May 18, 2006 P05-0035 Home Depot Page 4 of 10 policies and goals and the East of 101 Area Plan (specifically Land Use Policy LU-4a) strongly encourage the retention of existing retail uses especially along the US 101 frontage. The P-C Zoning (SSFMC Chapter 20.24.020) allows retail uses. DEVELOPMENT STANDARDS The building generally complies with current City development standards as displayed in the following table: DEVELOP:MENTSTANDARDS Total Site Area: 7.62 acres [331,927 SF] Height Maximum: 50FT Proposed: 35FT Floor Area Ratio: Maximum: 1.0 Proposed: 0.31 Floor Area Maximum: 331,927 SF Proposed: 101,579 SF Lot Coverage: Maximum: 50% Proposed: 38% Landscaping: Minimum: 10% Proposed: 10% Automobile Parking Retail Minimum: 632 Proposed: 426 Setbacks Front Minimum: 20FT Proposed: 6FT North Minimum: OFT Proposed: 145 FT Side South Minimum: OFT Proposed: 44FT Side Rear Minimum: 15 FT Proposed: 6FT Note: Alternative Plan provides increased parking spaces and lot coverage. An exception is requested for the parking in the front setback. Parking The SSFMC Section 20.74.060 (g) Multi-Tenant Retail/Commercial, requires parking to be provided at a rate of 1 parking space per each 200 square feet. Applying this rate to the -87- May 18, 2006 P05-0035 Home Depot Page 5 of 10 development would result in a parking requirement of 632 spaces. The applicant has conducted a parking study of existing Home Depot facilities in the region and in accordance with the study results, proposes to reduce the parking rate to 3.36 spaces/1,OOO SF resulting in a total of 426 parking spaces (The Alternative Plan has a parking rate of3.9/1,000 SF and a total of 490 spaces). A TDM Plan, which is also required, will assist in reducing the employee parking demand and thus parking spaces need. The parking study is attached to this staff report. The Institute of Traffic Engineers (ITE), a highly regarded engineering institute referenced in the SSFMC, has recently examined the parking requirements for big box retail stores. The lTE identifies a range of average peak rate of 2.43/1,000 SF to 3.40/1,000 SF and a peak hour rate of 3.20/1,000 SF to 4.40/1,000 SF. Applying the higher rates would result in sufficient parking for the weekdays, but may create a possible shortfall of 130 parking spaces during the peak hours on Saturday. While the applicant does not anticipate a parking shortfall (based on their parking survey), possible ways to address the potential shortfall are to require a larger garage (see the Alternative Plan), require a TDM Plan or require that employees park off-site and be shuttled to the store. The TDM Plan, which is required by SSFMC, is reviewed in this staff report in a following section. The SSFMC Chapter 20.74 allows the City to determine separate parking rates for unique uses. Staff supports the proposed rate of 3.36/1,000 SF, because it is supported by both the applicant's parking data and falls within the ITE parking range for big box retail uses. City staff also supports the Alternative Plan parking rate of3.9/1,000 SF, because it is closer to the mid-point of the ITE range and provides a greater number of parking spaces. Planned Unit Development The development generally complies with the minimum setbacks required for a commercial development. The applicant is requesting an exception vis-a.-vis a Planned Unit Development Permit (PUD) to reduce the minimum required front setback of20 feet to 6 feet to accommodate some open at-grade parking spaces along a portion of Dubuque Avenue. This is necessary owing to the unusual lot configuration, the street widening to allow a left turn pocket and the desire to provide sufficient parking. Landscaping will be provided along the frontage that will help soften the appearance of the site. The PUD allows reductions where the City finds that the community benefit outweighs the exception (SSFMC Chapter 20.84). City staff supports the reduction as the development will provide a service and range of products not commonly found either in the community or in one location and will provide job opportunities and significant economic benefits. -88- May 18,2006 P05-0035 Home Depot Page 6 of 10 Landscaping & Screening The proposed landscaping of3,320 square feet complies with the City's minimum requirement of 10% of the total site area (SSFMC Section 20.73.040). The area between the property line and the sidewalk along Dubuque Avenue is proposed to be landscaped to a depth of 6 feet between the parking stalls and the property line. The garage design has also been revised to incorporate landscaping of the upper garage deck, thereby softening views from the intersection of Dubuque Avenue and Oyster Point Boulevard and surrounding streets. Outdoor storage of garden and display materials and periodic outdoor sales events are part of the store operations similar to other garden and material centers. Views of the garden center and outdoor displays will be screened from the street either by fencing or due to the placement of the garage in close proximity to the building. The SSFMC Chapter 20.24 allows these activities subject to an approved Use Permit. A condition has been added that requires that the site be maintained in an attractive manner and free of debris. Alternative Plan The Alternative Plan improves access to the upper deck of the garage and increases the parking to 490 spaces - a rate of spaces per 3.9/1,000 SF (well within the ITE trip rate range). The expansion of the garage will also increase the lot coverage to 38.4%, still well below the maximum allowed for the site. As a consequence of increasing the parking, the potential peak season peak hour parking shortfall would be substantially reduced to 50 parking spaces or eliminated altogether. That the shortfall will be eliminated is all the more likely with the implementation of the mandatory TDM Plan. Physically, a portion of the garage will be closer to the street and to the building, but will not intrude into the 20 foot deep minimum required front setback nor impair circulation or access. City staff also supports the revised design as it provides increased parking and maintains the same design scheme. Signs The signs consist of new fa9ade signs and the retention of the existing mono-pole sign refaced with a smaller sign. The total sign area amounts to an estimated 960 square feet. A Type C Sign Permit is required because the total sign area exceeds 300 square feet and the pole sign (35 feet in height) exceeds 10 feet in height (SSFMC Chapter 20.86). The Planning Commission should consider the appropriateness of retaining the pole sign even though the applicant proposes to reduce the sign size and height (see plans). The applicant prefers to keep the pole sign as it provides enhanced visibility to regional travelers. The total sign area is in keeping with the site size and the nature of the use. The sign design and colors reflect the building design and color scheme. -89- May 18, 2006 P05-0035 Home Depot Page 7 of 10 Transportation Demand Management Plan The development requires a Transportation Demand Management Plan (TDM) because it will generate in excess of 100 average daily vehicle trips (SSFMC Chapter 20.120). Because the development may also generate 100 vehicle trips in the peak commute hour, the TDM Plan is also required to be reviewed by the San Mateo County City and County Association of Governments (C/CAG). The TDM Plan would by practicality be focused on the store employees and not the customers and designed to achieve a minimum 28% alternative mode use, consistent with the request to allow an FAR of 0.38. The TDM Plan would be modeled on a TDM Plan accepted by C/CAG for the East Palo Alto IKEA store. City staffhas reviewed the IKEA Plan and discussed the plan with C/CAG representatives. Based on these conversations, City staff is confident that the C/CAG will accept a TDM Plan modeled on the IKEA plan. The TDM plan will need to be slightly modified to include all City mandatory elements, such as showers and locker facilities, participation in shuttle programs, carpool and vanpool ride matching, guaranteed ride home program, secure bicycle parking, and an on-site program coordinator. A condition of approval has been added to require that the applicant prepare a TDM Plan acceptable to the City. Both the home improvement parking rate and the TDM Plan are consistent with the City's General Plan, as delineated in the following policies: "4.3-1-11 Establish parking standards to support trip reduction goals by: · Allowing parking reduction for projects that have agreed to implement trip reduction methods. 4.3-1-12 Amend the Zoning Ordinance to reduce minimum parking requirements for projects proximate to transit stations and for projects implementing a TDM program." DESIGN REVIEW BOARD The proposed development was reviewed by the Design Review Board (DRB) at their meetings of March 15, 2005 and May 17, 2005. At the first meeting the Board offered the following comments: 1. Continue the building detailing onto the south and west elevations, not just on the north and east elevations. 2. Single-pole freestanding can signs are not encouraged. Consider a different type of design such as a pylon sign. 3. Consider incorporating rooftop parking over the store to reduce the height of the proposed parking structure. The 3-story parking structure, as it is, overwhelms the view from south bound Highway 101 -90- May 18,2006 P05-0035 Home Depot Page 8 of 10 4. A lot of the species on the plant list will not do well in SSF. Revise the plant schedule using species that are better suited to SSF's climate. Consider using some of the trees from the opposite side of the street; Magnolias and flowering pear trees are the most common types. 5. The trees around the parking structure need to be tailer. 6. Provide more detail on the landscaping at the main entry driveway between the two buildings. 7. Use creeping fig or boston ivy on the parking structure. 8. Plant trees along the south and west property lines 9. Revise plans and resubmit to the DRB for further review. The architect revised the plans and re-submitted for Board review. At the second meeting the Board determined most of the previous comments had been addressed but offered two comments: 1. Do not use internally illuminated can signs; use external lighting or individually illuminated channel letters. 2. Consider grouping the roof mounted equipment and using roof screens. The Board was otherwise pleased with the design changes and recommended approval of the design. The Board's comments made at the May 17th. meeting will be made into conditions of approval. SPECIAL JOINT CITY COUNCIL & PLANNING COMIvllSSION STUDY SESSION The City Council and the Planning Commission conducted ajoint Study Session on October 5, 2005. At the meeting the comments were made by Council members, Commissioners, Kamala Silva Wolfe and Nick Tentes. The key comments offered by the Council and Commission members included, but are not limited to, improving views of the garage roof from the Dubuque Avenue/Oyster Point Boulevard intersection, and improving on-site circulation. In response to the Council and Commission member's comments, the development proponent has revised the plans to add landscaped trellises on the upper garage level to soften views from the street, revised the on-site aisle ways to provide improved on-site circulation, and added a left- turn pocket to facilitate safe access. The applicant has also proposed an alternate plan that would add more on-site parking. Ms. Wolfe and Mr. Tentes offered comments regarding the environmental impacts and the development's effect on local businesses. Ms. Wolfe offered a dozen questions regarding the following proposed developments: Terrabay Phase III, Home Depot and Lowe's. With the exception of a couple of the questions, the majority of comments are addressed in the Draft Environmental Impact Reports (DEIR). Separate DEIRs are being prepared for each -91- May 18,2006 P05-0035 Home Depot Page 9 of 10 development. Their comments regarding the development's effect on local businesses, especially the hardware store on Grand Avenue and the lumber yard on South Spruce Avenue, are addressed in an economic study that is attached to the staff report. The report, prepared by CB Richard Ellis, concludes that the proposed development would have a negligible effect. Ms. Wolfe and Mr. Tentes have been sent notices of the availability of the Home Depot DEIR. and the public comment period, the Planning Commission's DEIR. public meeting and the Planning Commission hearing. Ms. Wolfe also asked questions regarding the estimated revenue generated from the building material store, cost of the DEIR, and the process and criteria utilized to select the EIR consultants. The revenue to the City is based primarily on sales tax and property tax. The store is anticipated to generate gross sales of upwards of$40 million per year, resulting in an annual revenue stream of approximately $400,000 to the City. The costs of the DEIR and staff time are borne by the applicants. The City's standard criteria for evaluating any consultant were utilized. These criteria include, but are not limited to the following: comprehension of work, experience, expertise, knowledge of CEQA, cost, ability to accomplish the work in the requested time frame, ability to work with City staff and the public, and ability to secure adequate insurance. The process followed included sending out Request for Proposals (RFPs) to three EIR consulting firms (two firms responded) and reviewing the proposals. The selection process was conducted by City staff and included telephone interviews with the consultants. The RFP distribution was limited as per guidance from American Planning Association. ENVIRONMENTAL DOCUMENT City staffhas employed the services of Lamphier and Gregory to prepare and circulate an Environmental Impact Report (EIR.) for public comment. The document was circulated for 45 days for public comment from January 31, 2006 to March 17, 2006, in accordance with the California Environmental Quality Act (CEQA). The Planning Commission also conducted a public hearing on March 2, 2006 allowing public comments, however, the only comments made were by the Planning Commissioners. Written comments were received from a couple of agencies with the most notable comments offered in several letters by CalTrans. In addition to numerous telephone conversations, a meeting was conducted with CalTrans representatives on April 27, 2006 to review their comments. Written responses to comments are contained in the FEIR.. The key environmental issue identified by City Staff is traffic. Mitigation measures are proposed to reduce many of the identified impacts to less than a significant level. However, significant cumulative traffic impacts attributable to the development and other known developments will occur and cannot be feasibly mitigated. A Mitigation Monitoring Program will be required to be prepared prior to the issuance of any permits. -92- May 18, 2006 P05-0035 Home Depot Page 10 of 10 The project proponent has recently revised the site plan to improve parking and circulation thereby reducing some of the traffic impacts. The revised plans now reflect the provision of a left-turn pocket on Dubuque Avenue providing better and safer site access. The applicant is also proposing to improve on-site circulation, as suggested by the City's traffic consultant and is proposing to increase the amount of parking; both of these improvements are not considered environmental impacts and do not require mitigation, but will help ease on-site congestion. Should the City desire to approve the development, CEQA requires the City to adopt a Statement of Overriding Considerations identifying that the project benefits outweigh the cumulative unmitigateable significant impacts. Because the project involves an EIR, with a Statement of Overriding Considerations regarding long-term cumulative traffic impacts, the EIR will also be required to be certified by the City Council. CONCLUSION/RECOMIv1ENDATION: The proposed development complies with the General Plan, the Zoning Code and the City's development requirements. Therefore, City staff recommends that the Planning Commission adopt a resolution recommending that the City Council certify 1) EIR assessing the environmental impacts associated with a new 101,579 square foot Home Depot store, a 24,215 square foot Garden Center, open at-grade parking and a 2 level parking structure including a Statement of Overriding Consideration; and approve 2) Planned Unit Development Permit allowing parking in a portion of a front setback; 3) Use Permit allowing outdoor sales, outdoor storage, a use generating in excess of 100 vehicle trips per day, up to 24 hour daily operation, and the determination of a parking rate; 4) Design Review allowing a new 101,579 square foot Home Depot store, a 24,215 square foot Garden Center, open at-grade parking and a 2 level parking structure; 5) Transportation Demand Management Plan reducing vehicle trips; and 6) Type C Sign Permit allowing a master sign program consisting of new building fa<;ade signs and the retention of a double faced pylon sign with a total sign area exceeding 100 square feet, subject to adopting the conditions of approval. ~~~ S ve Carlson, Sernor Planner Attachments: Draft Statement of Overriding Considerations (EIR.) Draft Resolution Draft Conditions of Approval -93- Planning Commission Staff Report DATE: June I, 2006 TO: Planning Commission SUBJECT: 1. EIR. assessing the environmental impacts associated with a new 101,579 square foot Home Depot store, a 24,215 square foot Garden Center, open at-grade parking and a 2 level parking structure. 2. Planned Unit Development Permit allowing parking in a portion of the front setback. 3. Use Permit allowing outdoor sales, outdoor storage, a use generating in excess of 100 vehicle trips per day, up to 24 hour daily operation, and the determination of a parking rate. 4. Design Review of a 101,579 square foot Home Depot store, a 24,215 square foot Garden Center, open at-grade parking and a 2 level parking structure. 5. Transportation Demand Management Plan reducing vehicle trips. 6. Type C Sign Permit allowing a master sign program consisting of new building fayade signs and the retention of a double faced pylon sign with a total sign area exceeding 300 square feet. Address: 900 Dubuque Avenue (APN 015-021-090 & SBE 135-41-41 P AR.1) Zone: Planned Commercial Zoning District (P-C-L) SSFMC Chapters: 20.24, 20.74, 20.81 & 20.86. Owner: Levitz SL San Francisco Applicant: Home Depot Case Nos. P05-0035 (PUD05-0003, UP05-001O, TDMO-0003, SIGNS05-0044, DR05-0020 & EIR05-0003) RECOMMENDATION: That the Planning Commission adopt a resolution recommending that the City Council certify 1) EIR assessing the environmental impacts associated with a new 101,579 square foot Home Depot store, a 24,215 square foot Garden Center, open at-grade parking and a 2 level parking structure including a Statement of Overriding Considerations; and approve 2) Planned Unit Development Permit allowing parking in a portion of the front setback; 3) -94- June 1, 2006 P05-0035 Home Depot Page 2 of 10 Use Permit allowing outdoor sales, outdoor storage, a use generating in excess of 100 vehicle trips per day, up to 24 hour daily operation, and the determination of a parking rate; 4) Design Review allowing a new 101,579 square foot Home Depot store, a 24,215 square foot Garden Center, open at-grade parking and a 2 level parking structure; 5) Transportation Demand Management Plan reducing vehicle trips; and 6) Type C Sign Permit allowing a master sign program consisting of new building fa~ade signs and the retention of a double faced pylon sign with a total sign area exceeding 300 square feet, subject to adopting the conditions of approval. BACKGROUND: The proposed development was reviewed by the Planning Commission at their May 18th meeting. The Commissioners expressed general support for the Alternative Plan, but directed that the applicant improve the visual appearance, making the building and garage appear less as a warehouse and more as a landmark retail facility, eliminate the pole sign and enhance the garage access. The Commission continued the matter to the meeting of June 1 st. The applicant has revised the plans to incorporate the Planning Commissioners comments. Project Overview The 7.62 acre project site is situated at 900 Dubuque Avenue, and is bounded on the west and north by Dubuque Avenue and Highway 101, on the south by single-story office buildings and services, and to the east by railroad right-of-way. PROJECT DESCRIPTION The proposed development involves the demolition of the existing Levitz building totaling 126,326 square feet and the construction ofa 101,579 square foot one-story Home Depot building material store, an adjoining 24,215 square foot outdoor Garden Center and Nursery, and a small seasonal outdoor sales and display area. Parking for a minimum of 490 passenger vehicles will be provided in a two level garage and an open on-site parking lot. The signs will provide a total sign area of an estimated 960 square feet. Proposed Use The proposed development is for retail sales of building supplies, lumber, hardware and associated items such as appliances, barbeques, pool accessories, home furnishings, patio furniture and materials associated with home improvement and maintenance. The proposed outdoor Garden Center and Nursery would provide for retail sales of plant and nursery items. It is anticipated that the store will also provide rental tools and equipment to be leased for construction, gardening and home improvement projects. It is expected that sales activity will also include propane, trailers and sheds. On-site truck rentals will probably occur and the site may have several outdoor independent food vendors. -95- June 1, 2006 P05~0035 Home Depot Page 3 of 10 The project will include outdoor sidewalk sales and display of special products, such as plant and nursery materials, barbeques, outdoor patio furniture, tools and seasonal decor in the parking lot area. Seasonal sales events of items such as pumpkins and holiday trees and wreaths, would take place near the Garden Center. Seasonal sales events are estimated to be 4 times per year. Store Operation The project will require delivery of heavy merchandise. Items will be off-loaded at the loading docks on the northerly end of the building and brought inside with forklifts. The store operating hours are typically 6 AM to 10 PM with the option of remaining in operation 24 hours per day. Truck deliveries would occur throughout the day and may include 24 hour deliveries. Outdoor storage of garden and display materials and periodic outdoor sales events are part of the store operations similar to other garden and material centers. The store will employee an estimated 150 - 175 full-time and part-time employees primarily derived from local communities. It is assumed that managers and employees will be transferred from other stores to maintain quality of service and operational consistency. The shifts are likely to number 2 to 3 per day with more shifts if the store operates on a 24 hour basis. Approximately 50 to 75 employees are anticipated per shift. Entitlements The applicants are requesting several entitlements including a Planned Unit Development to allow a slight reduction from minimum required front setback for a small portion of the parking area along Dubuque Avenue; a Use Permit allowing outdoor sales, outdoor storage, a use generating in excess of 100 vehicle trips per day, up to 24 hour daily operation, and the determination of a parking rate; a Type C Sign Permit for a sign program with a total area in excess of 300 square feet and the retention of a pole sing in excess of 10 feet in height; Design Review of the proposed improvements; and a Transportation Demand Management Plan (TDM) to reduce traffic impacts. An Environmental Impact Report (EIR) with the likelihood of significant unavoidable cumulative traffic impacts will require the development proposal to be reviewed by both the City Council and Planning Commission. DISCUSSION: The General Plan Land Use designation of the project site is Business Commercial and the site is situated in the Planned Commercial (P-C) Zoning District. The proposed development is consistent with both the General Plan and the Zoning Ordinance. The General Plan principles, policies and goals and the East of 101 Area Plan (specifically Land Use Policy LU-4a) strongly encourage the retention of existing retail uses especially along the US 10 1 frontage. The P-C Zoning (SSFMC Chapter 20.24.020) allows retail uses. -96- June 1, 2006 P05-0035 Home Depot Page 4 of 10 DEVELOPMENT STANDARDS The building generally complies with.current City development standards as displayed in the following table: DEVELOPMENT STANDARDS Total Site Area: 7.62 acres [331,927 SF] Height Maximum: 50FT Proposed: 35FT Floor Area Ratio: Maximum: 1.0 Proposed: 0.31 Floor Area Maximum: 331,927 SF Proposed: 101,579 SF Lot Coverage: Maximum: 50% Proposed: 38.4% Landscaping: Minimum: 10% Proposed: 10% Automobile Parking Retail Minimum: 632 Proposed: 490 Setbacks Front Minimum: 20FT Proposed: 6FT North Minimum: OFT Proposed: 145 FT Side South Minimum: OFT Proposed: 44FT Side Rear Minimum: 15 FT Proposed: 6FT Note: Alternative Plan provides increased parking spaces and lot coverage. An exception is requested for the parking in the front setback. Parking The SSFMC Section 20.74.060 (g) Multi-Tenant Retail/Commercial, requires parking to be provided at a rate of 1 parking space per each 200 square feet. Applying this rate to the development would result in a parking requirement of 632 spaces. The applicant has conducted a parking study of existing Home Depot facilities in the region and in accordance with the study results, proposes to reduce the parking rate to 3.9/1,000 SF and a -97- June 1, 2006 P05-0035 Home Depot Page 5 of 10 total of 490 spaces. A TDM Plan, which is also required, will assist in reducing the employee parking demand and thus parking spaces need. The parking study is attached to tbis staff report. The Institute of Traffic Engineers (ITE), a highly regarded engineering institute referenced in the SSFMC, has recently examined the parking requirements for big box retail stores. The ITE identifies a range of average peak rate of2.43/1,000 SF to 3.40/1,000 SF and a peak hour rate of 3.20/1,000 SF to 4.40/1,000 SF. Applying the bigher rates would result in sufficient parking for the weekdays, but may create a possible shortfall of 50 parking spaces during the peak hours on Saturday. \Vb.ile the applicant does not anticipate a parking shortfall (based on their parking survey), possible ways to address the potential shortfall are to require a TDM Plan or require that employees park off-site and be shuttled to the store. The TDM Plan, which is required by SSFMC, is reviewed in this staff report in a following section. The SSFMC Chapter 20.74 allows the City to determine separate parking rates for unique uses. Staff supports the proposed rate of3.9/1,000 SF, because it is supported by both the applicant's parking data and falls within the ITE parking range for big box retail uses. Planned Unit Development The development generally complies with the minimum setbacks required for a commercial development. The applicant is requesting an exception vis-a.-vis a Planned Unit Development Permit (PUD) to reduce the minimum required front setback of20 feet to 6 feet to accommodate some open at-grade parking spaces along a portion of Dubuque Avenue. This is necessary owing to the unusual lot configuration, the street widening to allow a left turn pocket and the desire to provide sufficient parking. Landscaping will be provided along the frontage that will help soften the appearance of the site. The PUD allows reductions where the City finds that the community benefit outweighs the exception (SSFMC Chapter 20.84). City staff supports the reduction as the development will provide a service and range of products not commonly found either in the community or in one location and will provide job opportunities and significant economic benefits. Landscaping & Screening The proposed landscaping of3,320 square feet complies with the City's minimum requirement of 10% of the total site area (SSFMC Section 20.73.040). The area between the property line and the sidewalk along Dubuque A venue is proposed to be landscaped to a depth of 6 feet between the parking stalls and the property line. The garage design has also been revised to incorporate landscaping of the upper garage deck, thereby softening views from the intersection of Dubuque Avenue and Oyster Point Boulevard and surrounding streets. Outdoor storage of garden and display materials and periodic outdoor sales events are part of the store operations similar to other garden and material centers. Views of the garden center and -98- June It 2006 P05-0035 Home Depot Page 6 of 10 outdoor displays will be screened from the street either by fencing or due to the placement of the garage in close proximity to the building. The SSFMC Chapter 20.24 allows these activities subject to an approved Use Permit. A condition has been added that requires that the site be maintained in an attractive manner and free of debris. Signs The signs consist of new fayade signs. The total sign area amounts to an estimated 960 square feet. A Type C Sign Permit is required because the total sign area exceeds 300 square feet (SSFMC Chapter 20.86). The total sign area is in keeping with the site size and the nature of the use. The sign design and colors reflect the building design and color scheme. Transportation Demand Management Plan The development requires a Transportation Demand Management Plan (TDM) because it will generate in excess of 100 average daily vehicle trips (SSFMC Chapter 20.120). Because the development may also generate 100 vehicle trips in the peak commute hourt the TDM Plan is also required to be reviewed by the San Mateo County City and County Association of Governments (C/CAG). The TDM Plan would by practicality be focused on the store employees and not the customers and designed to achieve a minimum 28% alternative mode use, consistent with the request to allow an FAR of 0.38. The TDM Plan would be modeled on a TDM Plan accepted by C/CAG for the East Palo Alto IKEA store. City staffhas reviewed the IKEA Plan and discussed the plan with C/CAG representatives. Based on these conversations, City staff is confident that the C/CAG will accept a TDM Plan modeled on the IKEA plan. The TDM plan will need to be slightly modified to include all City mandatory elements, such as showers and locker facilities, participation in shuttle programs, carpool and vanpool ride matchingt guaranteed ride home program, secure bicycle parking, and an on-site program coordinator. The Preliminary TDM Plan is attached. Both the home improvement parking rate and the TDM Plan are consistent with the Cityts General Plan, as delineated in the following policies: "4.3-1-11 Establish parking standards to support trip reduction goals by: · Allowing parking reduction for projects that have agreed to implement trip reduction methods. 4.3-1-12 Amend the Zoning Ordinance to reduce minimum parking requirements for projects proximate to transit stations and for projects implementing a TDM program." DESIGN REVIEW BOARD -99- June 1, 2006 P05-0035 Home Depot Page 7 of 10 The proposed development was reviewed by the Design Review Board (DRB) at their meetings of March 15,2005 and May 17,2005. At the first meeting the Board offered the following comments: 1. Continue the building detailing onto the south and west elevations, not just on the north and east elevations. 2. Single-pole freestanding can signs are not encouraged. Consider a different type of design such as a pylon sign. 3. Consider incorporating rooftop parking over the store to reduce the height of the proposed parking structure. The 3-story parking structure, as it is, overwhelms the view from south bound Highway 101 4. A lot of the species on the plant list will not do well in SSF. Revise the plant schedule using species that are better suited to SSF's climate. Consider using some of the trees from the opposite side of the street; Magnolias and flowering pear trees are the most common types. 5. The trees around the parking structure need to be taller. 6. Provide more detail on the landscaping at the main entry driveway between the two buildings. 7. Use creeping fig or boston ivy on the parking structure. 8. Plant trees along the south and west property lines 9. Revise plans and resubmit to the DRB for further review. The architect revised the plans and re-submitted for Board review. At the second meeting the Board determined most of the previous comments had been addressed but offered two comments: 1. Do not use internally illuminated can signs; use external lighting or individually illuminated channel letters. 2. Consider grouping the roof mounted equipment and using roof screens. The Board was otherwise pleased with the design changes and recommended approval of the design. The Board's comments made at the May 17th meeting will be made into conditions of approval. SPECIAL JOINT CITY COUNCIL & PLANNING COM:N.IISSION STUDY SESSION The City Council and the Planning Commission conducted ajoint Study Session on October 5, 2005. At the meeting the comments were made by Council members, Commissioners, Kamala Silva Wolfe and Nick Tentes. The key comments offered by the Council and Commission members included, but are not limited to, improving views of the garage roof from the Dubuque Avenue/Oyster Point Boulevard intersection, and improving on-site circulation. -100- June 1, 2006 P05-0035 Home Depot Page 8 of 10 In response to the Council and Commission member's comments, the development proponent has revised the plans to add landscaped trellises on the upper garage level to soften views from the street, revised the on-site aisle ways to provide improved on-site circulation, and added a left- turn pocket to facilitate safe access. The applicant has also proposed an alternate plan that would add more on-site parking. Ms. Wolfe and Mr. Tentes offered comments regarding the environmental impacts and the development's effect on local businesses. Ms. Wolfe offered a dozen questions regarding the following proposed developments: Terrabay Phase III, Home Depot and Lowe's. With the exception of a couple of the questions, the majority of comments are addressed in the Draft Environmental Impact Reports (DEIR). Separate DEIRs are being prepared for each development. Their comments regarding the development's effect on local businesses, especially the hardware store on Grand Avenue and the lumber yard on South Spruce Avenue, are addressed in an economic study that is attached to the staff report. The report, prepared by CB Richard Ellis, concludes that the proposed development would have a negligible effect. Ms. Wolfe and Mr. Tentes have been sent notices of the availability of the Home Depot DEIR and the public comment period, the Planning Commission's DEIR public meeting and the Planning Commission hearing. Ms. Wolfe also asked questions regarding the estimated revenue generated from the building material store, cost of the DEIR, and the process and criteria utilized to select the EIR consultants. The revenue to the City is based primarily on sales tax and property tax. The store is anticipated to generate gross sales of upwards of $40 million per year, resulting in an annual revenue stream of approximately $400,000 to the City. The costs of the DEIR and staff time are borne by the applicants. The City's standard criteria for evaluating any consultant were utilized. These criteria include, but are not limited to the following: comprehension of work, experience, expertise, knowledge of CEQA, cost, ability to accomplish the work in the requested time frame, ability to work with City staff and the public, and ability to secure adequate insurance. The process followed included sending out Request for Proposals {RFPs) to three EIR consulting firms (two firms responded) and reviewing the proposals. The selection process was conducted by City staff and included telephone interviews with the consultants. The RFP distribution was limited as per guidance from American Planning Association. ENVIRONMENTAL DOCUMENT City staffhas employed the services of Lampbier and Gregory to prepare and circulate an Environmental Impact Report (EIR) for public comment. The document was circulated for 45 days for public comment from January 31, 2006 to March 1 7, 2006, in accordance with the California Environmental Quality Act (CEQA). The Planning Commission also conducted a public hearing on March 2, 2006 allowing public comments, however, the only comments made -101- June 1, 2006 P05-0035 Home Depot Page 9 of 10 were by the Planning Commissioners. Written comments were received from a couple of agencies with the most notable comments offered in several letters by CalTrans. In addition to numerous telephone conversations, a meeting was conducted with CalTrans representatives on April 27, 2006 to review their comments. Written responses to comments are contained in the FEIR. The key environmental issue identified by City Staff is traffic. Mitigation measures are proposed to reduce many of the identified impacts to less than a significant level. However, significant cumulative traffic impacts attributable to the development and other known developments will occur and cannot be feasibly mitigated. A Mitigation Monitoring Program will be required to be prepared prior to the issuance of any permits. The project proponent has recently revised the site plan to improve parking and circulation thereby reducing some of the traffic impacts. The revised plans now reflect the provision of a left-turn pocket on Dubuque Avenue providing better and safer site access. The applicant is also proposing to improve on-site circulation, as suggested by the City's traffic consultant and is proposing to increase the amount of parking; both of these improvements are not considered environmental impacts and do not require mitigation, but will help ease on-site congestion. Should the City desire to approve the development, CEQA requires the City to adopt a Statement of Overriding Considerations identifying that the project benefits outweigh the cumulative unmitigateable significant impacts. Because the project involves an EIR, with a Statement of Overriding Considerations regarding long-term cumulative traffic impacts, the EIR will also be required to be certified by the City Council. CONCLUSION/RECOMMENDATION: The proposed development complies with the General Plan, the Zoning Code and the City's development requirements. Therefore, City staff recommends that the Planning Commission adopt a resolution recommending that the City Council certify 1) EIR assessing the environmental impacts associated with a new 101,579 square foot Home Depot store, a 24,215 square foot Garden Center, open at-grade parking and a 2 level parking structure including a Statement of Overriding Consideration; and approve 2) Planned Unit Development Permit allowing parking in a portion of a front setback; 3) Use Permit allowing outdoor sales, outdoor storage, a use generating in excess of 100 vehicle trips per day, up to 24 hour daily operation, and the determination ofa parking rate; 4) Design Review allowing a new 101,579 square foot Home Depot store, a 24,215 square foot Garden Center, open at-grade parking and a 2 level parking structure; 5) Transportation Demand Management Plan reducing vehicle trips; and 6) Type C Sign Permit allowing a master sign program consisting of new building fayade signs and the retention of a double faced pylon sign with a total sign area exceeding 100 square feet, subject to adopting the conditions of approval. -102- June 1, 2006 P05-0035 Home Depot Page 10 of 10 allowing parking in a portion of a front setback; 3) Use Permit allowing outdoor sales, outdoor storage, a use generating in excess of 100 vehicle trips per day, up to 24 hour daily operation, and the determination ofa parking rate; 4) Design Review allowing anew 101,579 square foot Home Depot store, a 24,215 square foot Garden Center, open at-grade parking and a 2 level parking structure; 5) Transportation Demand Management Plan reducing vehicle trips; and 6) Type C Sign Permit allowing a master sign program consisting of new building fa<;:ade signs and the retention of a double faced pylon sign with a total sign area exceeding 100 square feet, subject to adopting the conditions of approval. ~~~ t ve ar son, Senior anner Attachments: Draft Resolution with Exhibits A - Finding Concerning Alternatives B - Draft Statement of Overriding Considerations (EIR.) C - Mitigation Monitoring Program Draft Conditions of Approval Joint City Council Planning Commission Study Session Minutes October 5, 2005 Planning Commission Minutes May 18, 2006 (Draft) - will be delivered next week March 2, 2006 Design Review Board Minutes March 15, 2005 May 17, 2005 Applicant's Project Description and Development Narrative Photos Plans CBRE Economic Study Preliminary TDM DKS Parking Study DEIR & FEIR (Copies of the DEIR were previously provided to the Planning Commission and both the DEIR and the FEIR are available at the city's website at www,ssf.net and will be available at the Commission meeting.) -103- Planning Commission Staff Report DATE: July 6, 2006 TO: Planning Commission SUBJECT: 1. EIR assessing the environmental impacts associated with a new 101,171 square foot Home Depot store, a 24,215 square foot Garden Center, open at-grade parking and a 2 level parking structure. 2. Planned Unit Development Permit allowing parking in a portion of the front setback. 3. Use Permit allowing outdoor sales, outdoor storage, a use generating in excess of 100 vehicle trips per day, up to 24 hour daily operation, and the determination of a parking rate. 4. Design Review of a 101,171 square foot Home Depot store, a 24,215 square foot Garden Center, open at-grade parking and a 2 level parking structure. 5. Transportation Demand Management Plan reducing vehicle trips. 6. Type C Sign Permit allowing a master sign program consisting of new building fa~ade signs with a total sign area of 1,103 square feet. Address: 900 Dubuque Avenue (APN 015-021-090 & SBE 135-41-41 PAR.l) Zone: Planned Commercial Zoning District (P-C-L) SSFMC Chapters: 20.24,20.74,20.81 & 20.86. Owner: Levitz SL San Francisco Applicant: Home Depot Case Nos. P05-0035 (PUD05-0003, UP05-001O, TDMO-0003, SIGNS05-0044, DR05-0020 & EIR05-0003) RECOMMENDATION: That the Planning Commission adopt a resolution recommending that the City Council certify 1) EIR assessing the environmental impacts associated with a new 101,171 square foot Home Depot store, a 24,215 square foot Garden Center, open at-grade parking and a 2 level parking structure including a Statement of Overriding Considerations; and approve 2) Planned Unit Development Permit allowing parking in a portion of the front setback; 3) Use Permit allowing outdoor sales, outdoor storage, a use generating in excess of 100 -104- July 6, 2006 P05-0035 Home Depot Page 2 of 10 vehicle trips per day, up to 24 hour daily operation, and the determination of a parking rate; 4) Design Review allowing a new 101,171 square foot Home Depot store, a 24,215 square foot Garden Center, open at-grade parking and a 2 level parking structure; 5) Transportation Demand Management Plan reducing vehicle trips; and 6) Type C Sign Permit allowing a master sign program consisting of new building fa'1ade signs with a total sign area of 1,103 square feet, subject to adopting the conditions of approval. BACKGROUND: The proposed development was reviewed by the Planning Commission at their meetings of May 18 and June 1,2006. At the first meeting, the Commissioners expressed general support for the Alternative Plan, but directed that the applicant improve the visual appearance, making the building and garage appear less as a warehouse and more as a landmark retail facility, eliminate the pole sign and enhance the garage access. The Commission continued the matter to the meeting of June 15, 2006. At the meeting the applicant requested to continue the matter to the Planning Commission meeting of July 6th to allow the applicant to complete the plan revisions requested by the Commissioners. At the June 1 st meeting the Commissioners expressed general support for the revised Alternate Plan, but offered additional comments regarding the building exterior (especially the garden area enclosure), architectural detailing, garage deck landscaping, screening of the loading and outdoor storage areas, and signs. The Planning Commission directed that the applicant provide more perspectives of the proposed development and neighboring buildings, provide on-site traffic controls (e.g. no left turn signs on the main aisle way to the garage), provide landscape details of the upper garage roof deck, more details of the architectural elements (e.g. exterior lights), more details of the signs, cart storage and cart corrals, and visually screen the loading, dock and outside storage areas from views from adjacent properties and Dubuque Avenue. The Commission continued the matter to the meeting of June 15th. The applicant has revised the plans to incorporate many of the Commissioners comments. The loading area has been reoriented and screened so that it is not visible from the street, the site plans shows the cart storage facilities, the site plan includes the garage stair near the elevators, a comprehensive view of the three developments on Dubuque Avenue is included in the plan set, the garage roof plan is revised showing landscaping, and the location of the trellises and light poles, and the sign program has been revised. The applicant's narrative describing the revisions is attached to the staff report. Project Overview The 7.62 acre project site is situated at 900 Dubuque Avenue, and is bounded on the west and north by Dubuque A venue and Highway 101, on the south by single-story office buildings and services, and to the east by railroad right-of-way. -105- July 6,2006 P05-0035 Home Depot Page 3 of 10 PROJECT DESCRIPTION The proposed development involves the demolition of the existing Levitz building totaling 126,326 square feet and the construction ofa 101,171 square foot one-story Home Depot building material store, an adjoining 24,215 square foot outdoor Garden Center and Nursery, and a small seasonal outdoor sales and display area. Parking for a minimum of 462 passenger vehicles will be provided in a two level garage and an open on-site parking lot. Proposed Use The proposed development is for retail sales of building supplies, lumber, hardware and associated items such as appliances, barbeques, pool accessories, home furnishings, patio furniture and materials associated with home improvement and maintenance. The proposed outdoor Garden Center and Nursery would provide for retail sales of plant and nursery items. It is anticipated that the store will also provide rental tools and equipment to be leased for construction, gardening and home improvement projects. It is expected that sales activity will also include propane, trailers and sheds. On-site truck rentals will probably occur and the site may have several outdoor independent food vendors. The project will include outdoor sidewalk sales and display of special products, such as plant and nursery materials, barbeques, outdoor patio furniture, tools and seasonal decor in the parking lot area. Seasonal sales events of items such as pumpkins and holiday trees and wreaths, would take place near the Garden Center. Seasonal sales events are estimated to be 4 times per year. Store Operation The project will require delivery of heavy merchandise. Items will be off-loaded at the loading docks on the northerly end of the building and brought inside with forklifts. The store operating hours are typically 6 AM to 10 PM with the option of remaining in operation 24 hours per day. Truck deliveries would occur throughout the day and may include 24 hour deliveries. Outdoor storage of garden and display materials and periodic outdoor sales events are part of the store operations similar to other garden and material centers. The store will employee an estimated 150 - 175 full-time and part-time employees primarily derived from local communities. It is assumed that managers and employees will be transferred from other stores to maintain quality of service and operational consistency. The shifts are likely to number 2 to 3 per day with more shifts if the store operates on a 24 hour basis. Approximately 50 to 75 employees are anticipated per shift. Entitlements The applicants are requesting several entitlements including a Planned Unit Development to allow a slight reduction from minimum required front setback for a small portion of the parking area along Dubuque Avenue; a Use Permit allowing outdoor sales, outdoor storage, a use -106- July 6, 2006 P05-0035 Home Depot Page 4 of 10 generating in excess of 100 vehicle trips per day, up to 24 hour daily operation, and the determination of a parking rate; a Type C Sign Permit for a master sign program with a total area of 1,103 square feet; Design Review of the proposed improvements; and a Transportation Demand Management Plan (TOM) to reduce traffic impacts. An Environmental Impact Report (EIR) with the likelihood of significant unavoidable cumulative traffic impacts will require the development proposal to be reviewed by both the City Council and Planning Commission. DISCUSSION: The General Plan Land Use designation of the project site is Business Commercial and the site is situated in the Planned Commercial (P-C) Zoning District. The proposed development is consistent with both the General Plan and the Zoning Ordinance. The General Plan principles, policies and goals and the East of 101 Area Plan (specifically Land Use Policy LU-4a) strongly encourage the retention of existing retail uses especially along the US 101 frontage. The P-C Zoning (SSFMC Chapter 20.24.020) allows retail uses. DEVELOPMENT STANDARDS The building generally complies with current City development standards as displayed in the following table: DEVELOPMENT STANDARDS Total Site Area: 7.62 acres [331,927 SF] Height Maximum: 50FT Proposed: 35FT Floor Area Ratio: Maximum: 1.0 Proposed: 0.31 Floor Area Maximum: 331,927 SF Proposed: 101,171 SF Lot Coverage: Maximum: 50% Proposed: 38.4% Landscaping: Minimum: 10% Proposed: 10% Automobile Parking Retail Minimum: 627 Proposed: 462 Setbacks Front Minimum: 20FT Proposed: 6FT -107- July 6, 2006 P05-0035 Home Depot Page 5 of 10 North Side South Side Rear Minimum: 0 FT Proposed: 145 FT Minimum: 0 FT Proposed: 44 FT Minimum: 15 FT Proposed: 6 FT Note: An exception is requestedfor the parking in the front setback. Parking The SSFMC Section 20.74.060 (g) Multi-Tenant Retail/Commercial, requires parking to be provided at a rate of 1 parking space per each 200 square feet. Applying this rate to the development would result in a parking requirement of 627 spaces. The applicant has conducted a parking study of existing Home Depot facilities in the region and in accordance with the study results, proposes to reduce the parking rate to 3.7/1,000 SF and a total of 462 spaces. A TDM Plan, which is also required, will assist in reducing the employee parking demand and thus parking spaces need. The parking study is attached to this staff report. The Institute of Traffic Engineers (ITE), a highly regarded engineering institute referenced in the SSFMC, has recently examined the parking requirements for big box retail stores. The ITE identifies a range of average peak rate of 2.43/1,000 SF to 3.40/1,000 SF and a peak hour rate of 3.20/1,000 SF to 4.40/1,000 SF. Applying the higher rates would result in sufficient parking for the weekdays, but may create a possible shortfall of parking spaces during the peak hours on Saturday. While the applicant does not anticipate a parking shortfall (based on their parking survey), possible ways to address the potential shortfall are to require a TDM Plan or require that employees park off-site and be shuttled to the store. The TDM Plan, which is required by SSFMC, is reviewed in this staff report in a following section. The SSFMC Chapter 20.74 allows the City to determine separate parking rates for unique uses. Staff supports the proposed rate of 3.7/1,000 SF, because it is supported by both the applicant's parking data and falls within the lTE parking range for big box retail uses. Planned Unit Development The development generally complies with the minimum setbacks required for a commercial development. The applicant is requesting an exception vis-a-vis a Planned Unit Development Permit (PUD) to reduce the minimum required front setback of 20 feet to 6 feet to accommodate some open at-grade parking spaces along a portion of Dubuque Avenue. This is necessary owing to the unusual lot configuration, the street widening to allow a left turn pocket and the desire to provide sufficient parking. Landscaping will be provided along the frontage that will help soften the appearance of the site. The PUD allows reductions where the City finds that the community -108- July 6, 2006 P05-0035 Home Depot Page 6 of 10 benefit outweighs the exception (SSFMC Chapter 20.84). City staff supports the reduction as the development will provide a service and range of products not commonly found either in the community or in one location and will provide job opportunities and significant economic benefits. Landscaping & Screening The proposed landscaping of 3,320 square feet complies with the City's minimum requirement of 10% of the total site area (SSFMC Section 20.73.040). The area between the property line and the sidewalk along Dubuque A venue is proposed to be landscaped to a depth of 6 feet between the parking stalls and the property line. The garage design has also been revised to incorporate landscaping of the upper garage deck, thereby softening views from the intersection of Dubuque A venue and Oyster Point Boulevard and surrounding streets. Outdoor storage of garden and display materials and periodic outdoor sales events are part of the store operations similar to other garden and material centers. Views of the garden center and outdoor displays will be screened from the street either by fencing or due to the placement of the garage in close proximity to the building. The SSFMC Chapter 20.24 allows these activities subject to an approved Use Permit. A condition has been added that requires that the site be maintained in an attractive manner and free of debris. Signs The signs consist of new fa9ade signs. The total sign area amounts to an estimated 1,103 square feet. A Type C Sign Permit is required because the total sign area exceeds 300 square feet (SSFMC Chapter 20.86). The total sign area is in keeping with the site size and the nature of the use. The pylon sign has been further refined and integrated with the building. The revised sign design and colors generally appear to reflect the building design and color scheme. Transportation Demand Management Plan The development requires a Transportation Demand Management Plan (TDM) because it will generate in excess of 100 average daily vehicle trips (SSFMC Chapter 20.120). Because the development may also generate 100 vehicle trips in the peak commute hour, the TDM Plan is also required to be reviewed by the San Mateo County City and County Association of Governments (C/CAG). The TDM Plan would by practicality be focused on the store employees and not the customers and designed to achieve a minimum 28% alternative mode use, consistent with the request to allow an FAR of 0.38. The TDM Plan would be modeled on a TDM Plan accepted by C/CAG for the East Palo Alto IKEA store. City staffhas reviewed the IKEA Plan and discussed the plan with C/CAG representatives. Based on these conversations, City staff is confident that the C/CAG will accept a TDM Plan modeled on the lKEA plan. The TDM plan will need to be slightly modified to include all City mandatory elements, such as showers and locker facilities, -109- July 6, 2006 P05-0035 Home Depot Page 7 of 10 participation in shuttle programs, carpool and vanpool ride matching, guaranteed ride home program, secure bicycle parking, and an on-site program coordinator. The Preliminary TDM Plan is attached. Both the home improvement parking rate and the TDM Plan are consistent with the City's General Plan, as delineated in the following policies: "4.3-1-11 Establish parking standards to support trip reduction goals by: . Allowing parking reduction for projects that have agreed to implement trip reduction methods. 4.3-1-12 Amend the Zoning Ordinance to reduce minimum parking requirements for projects proximate to transit stations and for projects implementing a TDM program." DESIGN REVIEW BOARD The proposed development was reviewed by the Design Review Board (DRB) at their meetings of March 15,2005 and May 17,2005. At the first meeting the Board offered the following comments: 1. Continue the building detailing onto the south and west elevations, not just on the north and east elevations. 2. Single-pole freestanding can signs are not encouraged. Consider a different type of design such as a pylon sign. 3. Consider incorporating rooftop parking over the store to reduce the height of the proposed parking structure. The 3-story parking structure, as it is, overwhelms the view from south bound Highway 10 1 4. A lot of the species on the plant list will not do well in SSF. Revise the plant schedule using species that are better suited to SSF's climate. Consider using some of the trees from the opposite side of the street; Magnolias and flowering pear trees are the most common types. 5. The trees around the parking structure need to be taller. 6. Provide more detail on the landscaping at the main entry driveway between the two buildings. 7. Use creeping fig or boston ivy on the parking structure. 8. Plant trees along the south and west property lines 9. Revise plans and resubmit to the DRB for further review. The architect revised the plans and re-submitted for Board review. At the second meeting the Board determined most of the previous comments had been addressed but offered two comments: -110- July 6, 2006 P05-0035 Home Depot Page 8 of 10 1. Do not use internally illuminated can signs; use external lighting or individually illuminated channel letters. 2. Consider grouping the roof mounted equipment and using roof screens. The Board was otherwise pleased with the design changes and recommended approval of the design. The Board's comments made at the May 17th meeting will be made into conditions of approval. SPECIAL JOINT CITY COUNCIL & PLANNING COMMISSION STUDY SESSION The City Council and the Planning Commission conducted a joint Study Session on October 5, 2005. At the meeting the comments were made by Council members, Commissioners, Kamala Silva Wolfe and Nick Tentes. The key comments offered by the Council and Commission members included, but are not limited to, improving views of the garage roof from the Dubuque Avenue/Oyster Point Boulevard intersection, and improving on-site circulation. In response to the Council and Commission member's comments, the development proponent has revised the plans to add landscaped trellises on the upper garage level to soften views from the street, revised the on-site aisle ways to provide improved on-site circulation, and added a left- turn pocket to facilitate safe access. The applicant has also proposed an alternate plan that would add more on-site parking. Ms. Wolfe and Mr. Tentes offered comments regarding the environmental impacts and the development's effect on local businesses. Ms. Wolfe offered a dozen questions regarding the following proposed developments: Terrabay Phase nl; Home Depot and Lowe's. With the exception of a couple of the questions, the majority of comments are addressed in the Draft Environmental Impact Reports (DEIR). Separate DEIRs are being prepared for each development. Their comments regarding the development's effect on local businesses, especially the hardware store on Grand Avenue and the lumber yard on South Spruce A venue, are addressed in an economic study that is attached to the staff report. The report, prepared by CB Richard Ellis, concludes that the proposed development would have a negligible effect. Ms. Wolfe and Mr. Tentes have been sent notices of the availability ofthe Home Depot DEIR and the public comment period, the Planning Commission's DEIR public meeting and the Planning Commission hearing. Ms. Wolfe also asked questions regarding the estimated revenue generated from the building material store, cost of the DEIR, and the process and criteria utilized to select the EIR consultants. The revenue to the City is based primarily on sales tax and property tax. The store is anticipated to generate gross sales of upwards of $40 million per year, resulting in an annual revenue stream of approximately $400,000 to the City. -111- July 6, 2006 P05-0035 Home Depot Page 9 of 10 The costs of the DEIR and staff time are borne by the applicants. The City's standard criteria for evaluating any consultant were utilized. These criteria include, but are not limited to the following: comprehension of work, experience, expertise, lmowledge of CEQA, cost, ability to accomplish the work in the requested time frame, ability to work with City staff and the public, and ability to secure adequate insurance. The process followed included sending out Request for Proposals (RFPs) to three EIR consulting firms (two firms responded) and reviewing the proposals. The selection process was conducted by City staff and included telephone interviews with the consultants. The RFP distribution was limited as per guidance from American Planning Association. ENVIRONMENTAL DOCUMENT City staff has employed the services of Lamphier and Gregory to prepare and circulate an Environmental Impact Report (EIR) for public comment. The document was circulated for 45 days for public comment from January 31,2006 to March 17,2006, in accordance with the California Environmental Quality Act (CEQA). The Planning Commission also conducted a public hearing on March 2, 2006 allowing public comments, however, the only comments made were by the Planning Commissioners. Written comments were received from a couple of agencies with the most notable comments offered in several letters by CalTrans. In addition to numerous telephone conversations, a meeting was conducted with CalTrans representatives on April 27, 2006 to review their comments. Written responses to comments are contained in the FEIR. The key environmental issue identified by City Staff is traffic. Mitigation measures are proposed to reduce many of the identified impacts to less than a significant level. However, significant cumulative traffic impacts attributable to the development and other known developments will occur and cannot be feasibly mitigated. A Mitigation Monitoring Program will be required to be prepared prior to the issuance of any permits. The project proponent has recently revised the site plan to improve parking and circulation thereby reducing some of the traffic impacts. The revised plans now reflect the provision of a left-turn pocket on Dubuque A venue providing better and safer site access. The applicant is also proposing to improve on-site circulation, as suggested by the City's traffic consultant and is proposing to increase the amount of parking; both of these improvements are not considered environmental impacts and do not require mitigation, but will help ease on-site congestion. Another CalTrans letter was received June 1,2006. The City's consultant and City staff are preparing a response that will be available at the Planning Commission's June 15th meeting. The letter is attached. Should the City desire to approve the development, CEQA requires the City to adopt a Statement of Overriding Considerations identifying that the project benefits outweigh the cumulative unmitigateable significant impacts. -112- July 6, 2006 POS-0035 Home Depot Page 10 of 10 Because the project involves an EIR, with a Statement of Overriding Considerations regarding long-tenn cumulative traffic impacts, the EIR will also be required to be certified by the City Council. CONCLUSION/RECOMMENDA TION: The proposed development complies with the General Plan, the Zoning Code and the City's development requirements. Therefore, City staff recommends that the Planning Commission adopt a resolution recommending that the City Council certify 1) EIR assessing the environmental impacts associated with a new 101,171 square foot Home Depot store, a 24,215 square foot Garden Center, open at-grade parking and a 2 level parking structure including a Statement of Overriding Consideration; and approve 2) Planned Unit Development Pennit allowing parking in a portion of a front setback; 3) Use Pennit allowing outdoor sales, outdoor storage, a use generating in excess of 100 vehicle trips per day, up to 24 hour daily operation, and the detennination of a parking rate; 4) Design Review allowing a new 101,171 square foot Home Depot store, a 24,215 square foot Garden Center, open at-grade parking and a 2 level parking structure; 5) Transportation Demand Management Plan reducing vehicle trips; and 6) Type C Sign Permit allowing a master sign program consisting of new building fa((ade signs with a total sign area of 1,103 square feet, subject to adopting the conditions of approval. ~~~ Attachments: Draft Resolution with Exhibits A - Finding Concerning Alternatives B - Draft Statement of Overriding Considerations (EIR) C - Mitigation Monitoring Program Draft Conditions of Approval Joint City Council Planning Commission Study Session Minutes October 5,2005 Planning Commission Minutes June 1,2006 (Draft) May 18,2006 (Draft) March 2, 2006 Design Review Board Minutes March 15, 2005 May 17,2005 Applicant's Project Description and Development Narrative Photos -113- July 6, 2006 P05-0035 Home Depot Page 11 of 10 Plans CBRE Economic Study Preliminary TDM DKS Parking Study DEIR & FEIR (Copies of the DEIR were previously provided to the Planning Commission and both the DEIR and the FEIR are available at the city's website at l\lWl-i-'.ssf.net and will be available at the Commission meeting.) -114- APPENDIX: A DEVELOPMENT STANDARDS Total Site Area: 7.62 acres [331,927 SF] Height Maximum: 50FT Proposed: 35 FT Floor Area Ratio: Maximum: 1.0 Proposed: 0.31 Floor Area Maximum: 331,927 SF Proposed: 101,579 SF Lot Coverage: Maximum: 50% Proposed: 38.4% Landscaping: Minimum: 10% Proposed: 10% Automobile Parking Retail Minimum: 632 Proposed: 462 Setbacks Front Minimum: 20FT Proposed: 6FT North Minimum: OFT Proposed: 145 FT Side South Minimum: OFT Proposed: 44FT Side Rear Minimum: 15 FT Proposed: 6FT Note: A parking determinationfor a rate of 3,7 spaces/l, 000 SF is requested in conjunction with a TDM Plan. An exception is requested for the parking in the front setback. -115- LOCAL HIRING AGREEMENT REGARDING RECRUITMENT AND HIRING OF EMPLOYEES AT THE 900 DUBUQUE AVENUE HOME DEPOT IN SOUTH SAN FRANCISCO This Local Hiring Agreement is entered into this _ day of July, 2006, by and between HOME DEPOT U.S.A., INC. (hereinafter "Home Depot"), and the CITY OF SOUTH SAN FRANCISCO (hereinafter "City"). Home Depot and the City (collectively "the Parties") hereby agree as follows: Section 1. Purpose. The purpose of this Local Hiring Agreement ("Agreement") is to facilitate the employment of Local Applicants by Home Depot. Section 2. Definitions. As used in this Agreement, the following capitalized terms shall have the following meanings. All definitions include both the singular and plural form. "Agreement" shall mean this Local Hiring Agreement. "City" shall mean the City of South San Francisco. "Home Depot Job" shall mean a job that is performed on-site at the Project for which Home Depot directly hires a new employee. For the purposes of this Agreement, the term "Home Depot Job" shall not include any job which Home Depot fills with an employee who already works at a Home Depot store. "Initial Hiring Date" shall mean the date on which Home Depot commences unrestricted hiring efforts for the Store on a regular basis. "Local Applicant" shall mean a job applicant that resides in the Project Impact Area. "Pre-Hiring Period" shall mean the seven (7) day period immediately prior to the Initial Hiring Date. "Project" shall mean the Home Depot home improvement store proposed to be constructed at 900 Dubuque Avenue, South San Francisco, California. "Project Impact Area" shall mean San Mateo County. "Store Opening Date" shall mean the date on which the Project first opens for normal retail operations. -116- Section 3. Scope. This Agreement shall apply to hiring by Home Depot for Home Depot Jobs at its location at 900 Dubuque Avenue in the City of South San Francisco, except for jobs for which the hiring procedures are governed by a collective bargaining agreement that conflicts with this Agreement. Section 4. Activities Prior to Store Opening Date. Home Depot shall undertake the following activities during the three months prior to the Store Opening Date: 4.1 Pre-Hiring Period. Home Depot shall coordinate with the City Manager to arrange for a pre-hiring location in a convenient, transit- accessible location within the City. Home Depot shall conduct hiring activities at this pre-hiring location during the Pre-Hiring Period and shall only receive applications from Local Applicants during that time. Home Depot will interview, and make hiring decisions regarding, Local Applicants who apply during the Pre- Hiring Period before interviewing any other candidates for Home Depot Jobs. 4.2 Advertising Initial Hiring Employment Opportunities. Home Depot shall advertise in connection with hiring for the initial staffing of its retail operations at the Project in a local newspaper of general circulation, before advertising in other newspapers. 4.3 Other Notification of Initial Hiring Employment Opportunities. Home Depot shall provide to a maximum of ten (10) community- based organizations and/or public agencies, as directed in writing by the City, a list of hiring needs for the initial staffing of its retail operations at the Project. Section 5. Activities During First Five Years of Project Operations. During the first year of retail operations at the Project, Home Depot shall meet and confer with City representatives regarding hiring issues on a quarterly basis. During the second through fifth years of retail operations at the Project, Home Depot shall meet and confer with City representatives regarding hiring issues at least twice a year. Each of these meetings shall: (i) be initiated by written notice by City to Home Depot; (ii) occur at a time and place in South San Francisco that is convenient to both parties; and (iii) last for approximately one hour. These meetings shall include the following: 5.1 Employment Needs and Practices. The parties shall discuss Home Depot's employment needs, hiring and retention experience and practices, in sufficient detail so as to allow City and/or any adult education providers designated by City to understand Home Depot's employment needs and to facilitate training and education efforts by City to better prepare Local Applicants for Home Depot Jobs. -117- 5.2 Recent Hires. Home Depot shall provide to City representatives the number of Local Applicants hired by Home Depot since the last meeting, and the total number of employees hired by Home Depot for Home Depot Jobs since the last meeting. If Home Depot has not had any hiring activity during that time period, Home Depot shall inform City of such inactivity. Section 6. Limitations. This Agreement is subject to the following limitations: 6.1 No Violation of Hiring Practices or Regulations. Nothing in this Agreement shall be construed to require Home Depot to violate in any manner its hiring practices, or federal or state laws, regulations, consent decrees or orders. 6.2 labor Agreements. In the event that the provisions of this Agreement are inconsistent with the provisions of any collective bargaining agreements or other labor agreements by which Home Depot is bound, then the provisions of such other agreements shall control and to that extent the provisions of this Agreement shall be null and void. 6.3 Exceptional Cases. This Agreement shall not apply to any employment opportunities when any of the following is true: (a) Pre-Hirinq bv Home Depot. This Agreement shall not apply to any hiring which Home Depot may have done prior to the execution of this Agreement. (b) Existinq Emplovees. Nothing herein shall restrict any policy by Home Depot to allow existing employees of Home Depot to have preference with respect to jobs available at the Project. (c) Essential Functions. Nothing in this Agreement shall preclude Home Depot from using temporary or reassigned existing employees to perform essential functions of this operation. For these purposes, "essential functions" means those functions necessary to meet business obligations. (d) Other Stores. The provisions of this Agreement shall apply only to employees hired by Home Depot to be assigned on a primary basis to positions at the Project. Home Depot's efforts to recruit and hire employees to be assigned to any positions at locations other than the Project are not within the scope of this Agreement. -118- 6.4 No Hiring Requirements. Home Depot is encouraged, but shall not be required, to hire Local Applicants. In no way shall this Agreement be construed to cause the business operation of Home Depot at the Project to be non-competitive as to labor costs nor require the then existing corporate hiring or firing practices of Home Depot to be changed or hindered. In no way shall Home Depot be required to hire individuals who are not qualified for the intended position, and at all times, Home Depot shall have the right, in Home Depot's sole discretion, to select the most appropriate party to be hired. The parties agree and acknowledge that every individual considered by Home Depot for employment must pass a preliminary screening test that may include a drug test, a background check and/or any other nondiscriminatory pre- employment conditions that Home Depot establishes from time to time in its sole discretion. Employment with Home Depot is not for a specified term and is at the mutual consent of the employee and Home Depot, and the employment relationship may be terminated with or without cause, and with or without prior notice, by either the employee or Home Depot. Nothing in this Agreement is intended to alter the "at-will" nature of an individual's employment with Home Depot. Section 7. Notices. Any notices required to be given under this Agreement shall be in writing, and any such written notice shall be deemed to have been duly given on the earlier of (i) the date that such notice is received or (ii) two (2) days after the date that it is mailed either via a nationally recognized overnight courier, or via either registered or certified mail, return receipt requested, postage prepaid, to the parties at the addresses below: If to City: City of South San Francisco City Hall 400 Grand Avenue South San Francisco, CA 94080 Attention: City Clerk If to Home Depot: Home Depot U.S.A., Inc. 2455 Paces Ferry Road NW Atlanta, GA 30339-4024 Attention: VP Real Estate Law With Copies to: Home Depot U.S.A., Inc. 3800 West Chapman Avenue Orange, CA 92868-1611 Attention: Division Counsel- Real Estate Law -119- and Real Estate Department (two separate notices) Home Depot U.S.A., Inc. 900 Dubuque Avenue South San Francisco, CA 94080 Attention: Store Manager Either party may change its address by giving notice of such change. Failure to give any notice in a manner provided in this Section 7 shall not defeat the effectiveness of any written notice that is actually and timely received. Home Depot will notify City of the name of the initial store manager, and upon request from City, Home Depot will provide City with the name of the then current store manager. Section 8. Miscellaneous Provisions. 8.1 Early Termination. This Agreement is based on the expectation that Home Depot will construct the Project. In the event that Home Depot does not obtain a building permit for the Project by March 1, 2007, this Agreement shall terminate and be of no further force or effect. 8.2 Compliance with State and Federal Law. This Agreement shall be implemented only to the extent that it is consistent with the laws of the state of California and the United States. If any provision of this Agreement is held by a court of law to be in conflict with state or federal law, the applicable law shall prevail over the terms of this Agreement, and the conflicting provisions of this Agreement shall not be enforceable. 8.3 Severability. If any term, provision, covenant or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions shall continue in full force and effect. 8.4 Binding on Successors. This Agreement shall be binding upon and inure to the benefit of the successors in interest, transferees, assigns, present and future partners, subsidiary corporations, affiliates, agents, representatives, heirs, and administrators of any party that has committed to comply with it. Any reference in this Agreement to a party shall be deemed to apply to any successor in interest, transferee, assign, present or future partner, subsidiary corporation, affiliate, agent, representative, heir or administrator of such party. -120- 8.5 Counterparts. This Agreement may be executed in one or more counterparts. Each shall be deemed an original and all, taken together, shall constitute one and the same instrument. 8.6 Relationship of Parties. It is specifically understood and agreed by the parties that the development of the Project is a private development. Nothing contained in this Agreement shall be deemed or construed, either by the parties hereto or by any third party, to create the relationship of principal and agent or create any partnership, joint venture or other association between Home Depot and City. 8.7 No Obligations to Third Party. This Agreement is not intended and shall not be construed to create any third party beneficiary rights in any person or entity that is not a party hereto, and no action to enforce the terms of this Agreement may be brought against either party by any person or entity that is not a party hereto. 8.8 Governing Law. This Agreement shall be governed and construed by the laws of the State of California. 8.9 Construction. Home Depot and City both have had the opportunity to be advised by counsel with regard to this Agreement. Accordingly, this Agreement shall not be strictly construed against any party, and the rule of construction that any ambiguities be resolved against the drafting party shall not apply to this Agreement. 8.10 Entire Agreement. This Agreement contains the entire agreement between the parties on the subjects described herein, and supercedes any prior agreements, whether written or oral. This Agreement may not be altered, amended or modified except by an instrument in writing signed in writing by all parties to the contract in which it is incorporated. IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the dates written below: The City of South San Francisco Dated: ,2006 Barry M. Nagel City Manager -121- APPROVED AS TO FORM: City Attorney Dated: ,2006 APPROVED AS TO FORM: By: Title: Home Depot By: Title: -122- A PROFESSIONAL CORPORATION e CASSIDY SHiMKO DAVVSON KAVVAKAMI S ender's e-mail address: DLK@CSDKLAW.COM July 20, 2006 Mayor Joe Femekes and Members of the South San Francisco City Council South San Francisco Department of Economic and Community Development 315 Maple Avenue South San Francisco, CA 94083 Re: Proposed Home Depot Store at 900 Dubuque Avenue Dear Mayor Femekes and Members of the South San Francisco City Council: On behalf of Home Depot, we write to encourage the South San Francisco City Council to (i) certify the Environmental hnpact Report ("EIR") for Home Depot's proposed South San Francisco store (''Project'') and (ii) approve the required entitlements (including a Use Permit, a Type C Sign Permit and a Planned Dnit Development Permit) for the Project itself at your July 26, 2006 meeting. The environmental review and project design processes for the Project have been comprehensive and very productive, and we hope that this letter will be useful in demonstrating the benefits and strengths of the Project to you as you consider the Project on July 26. This letter provides the following information: · The evolution and current status of the Project design (page 2); · The benefits of the current Project design (page 2); · A discussion of parking availability at the Project (page 4); · A comparison of the Project to Home Depot's Colma store (page 4); · The key findings of the EIR (page 6); · A summary of the requirements included in the proposed Transportation Demand Management Plan for the Project (page 7); · A summary of Home Depot's proposed local hiring activities (page 8); · The economic impacts of the Project (page 9); and · Some of the ways in which the Project will benefit South San Francisco (page 10). 20 CALIFORNIA ST, SUITE 500, SAN FRANCISCO C:A ~4111 -123- TELEPHONE: (415) 788-2040 FACSIMilE: (415) 788-2039 Honorable Mayor Femekes and Members of the South San Francisco City Council July 20, 2006 Page 2 of 11 Deshm History A chronology of the events leading to the current design of the Project is attached hereto as Exhibit A. To summarize, on March 1, 2005, Home Depot submitted an application to the City of South San Francisco ("City") to construct a project (the "Original Project") consisting of an approximately 101,272 square foot home improvement center with a 24,522 square foot outdoor garden center, for a total of 125,794 square feet of retail space. The Original Project also included three levels of parking (i.e., the ground floor and two parking decks) for a total of 634 parking spaces. After intensive review by the City - including two hearings before the Design Review Board, a joint Planning Commission/City Council study session, three Planning Commission hearings and no fewer than four sets of revisions to the Project design - the Planning Commission voted to recommend that you certify the EIR and approve the Project. "While the current design of the Project has changed substantially from the design of the Original Project, the total retail square footage has not changed, although the size of the store building has been slightly increased to 101,579 square feet and the size of the garden center has been slightly decreased to 24,215 square feet. At the request of the Design Review Board and as approved by the Planning Commission, the parking structure serving the Proj ect has been reduced to two levels (i.e., the ground floor and one parking deck), with a total of 462 parking spaces; as discussed in more detail on page 4, this number of spaces is more than sufficient to accommodate customer vehicles at the store. Benefits of Current Proiect Deshm The Project as now designed has significant advantages over the Original Project, especially with respect to parking, traffic circulation and overall appearance. In particular, the Proj ect' s current design addresses the following requests and suggestions made by the Planning Commission and City Council at the Joint Session, and by the Planning Commission during its three hearings on the Project: · Landscaping. In response to requests for additional landscaping on the Project site, Home Depot has worked with its landscape architect to "green up" the parking area in particular. As a result, the Project proposes additional ivy to climb the columns of the parking deck, thus creating a more inviting and decorative setting for the parking area beneath the deck. In addition, Home Depot has added numerous additional trellises or pergolas on the upper parking level to soften the aesthetic appearance of the Project from the street. · Visibility of Loading Area. Planning Commission members requested that the loading dock for the Project be relocated or concealed so that suppliers' trucks could not be seen by vehicles traveling north along Dubuque Avenue. Home Depot examined the feasibility of relocating the loading dock, but due to the constrained nature of the site -124- Honorable Mayor Femekes and Members of the South San Francisco City Council July 20, 2006 Page 3 of 11 it was unable to do so without seriously impairing truck circulation and thus the day to day operation of the Proj ect. Home Depot therefore retained its loading dock in the location originally proposed, but angled it away from the access point from Dubuque Avenue. This reorientation of the dock, in conjunction with the addition of screening walls, means that trucks loading and unloading merchandise will be almost completely hidden from vehicles driving north on Dubuque Avenue. . Encouraging Customers to Use Parking Deck. At the Joint Session, Home Depot was urged to develop ways to encourage its customers to drive up the ramp to the second level of parking rather than compete for spaces on the ground parking level. In response, Home Depot has redesigned the circulation patterns in the ground floor parking area so that customers using the northernmost driveway would be led directly to the ramp to the second parking level. In addition, the northernmost driveway has been reconfigured to allow two incoming lanes, thus eliminating the potential that cars may back up on Dubuque Avenue while waiting to enter the site. This revised layout makes it much easier and more inviting for customers to enter the site, and to access and use the second parking level. . "Bridge" to Parking Deck. A suggestion was made at the Joint Session that a "bridge" lead from the top parking level to the Project. As currently designed, the parking deck for the Project would extend over the drive aisle and pick-up area in front of the store to abut the store building itself, with access elevators located between the entry and exit at the store. 1 The extension of the parking level will have the benefit of accommodating approximately fifty additional parking spaces, while the new placement of the elevators would greatly reduce conflicts between cars and pedestrians relative to the Original Project because customers parked on the top level would not have to cross a drive aisle to go between the store and the elevators. This will also provide an additional incentive for customers to use the parking deck. . Parking Spaces at Side / Back of Store Building. Home Depot has removed the parking spaces from the eastern corner of the Project site in response to questions about the accessibility of that location, as well as the parking spaces in the western corner near the loading dock. The reallocation of spaces in this area has freed up some of the area adj acent to storage and delivery facilities in order to provide maximum maneuverability for delivery and service vehicles. . Exterior Lighting. At the Joint Session, there was a request that the exterior lights of the Project be decorative and of good quality. Home Depot's architects have responded by creating a distinctive lighting scheme that includes custom-designed 1 Home Depot investigated the possibility of including rooftop parking in the Project but concluded that this would be infeasible due to high costs and maintenance issues. -125- Honorable Mayor Fernekes and Members ofthe South San Francisco City Council July 20, 2006 Page 4 of 11 plexiglass light fixture enclosures that will highlight the architectural elements of the Project in an extremely attractive manner at night. Parkin!! Availability \Vhile the shape of the Project site prevents the Project from accommodating the number of parking spaces required pursuant to the City's Zoning Ordinance,2 the number of parking spaces proposed would be adequate for the proposed use, based on a study of the particular parking demands of Home Depot home improvement stores. As discussed in the May 2, 2005 Parking Study performed by DKS and Associates that was previously submitted to the City, based on the parking ratios provided at three other Bay Area Home Depot stores, the Project would require 304 parking spaces. The Project exceeds this number by 158 spaces. The Parking Study shows that the parking ratios provided at the three comparable Home Depots have fully met customer demand for those stores, thus confirming that the number of parking spaces proposed here would serve the proposed use as effectively as the standard number of spaces required by Chapter 20.74 of the City's Zoning Ordinance. At the Joint Session, Home Depot was requested to consider implementing angled, as opposed to perpendicular, parking spaces. Home Depot's consultants investigated this proposal but found that providing slanted parking spaces would significantly decrease the number of spaces that the Project site could accommodate. Further, Home Depot's consultants determined that the most efficient site circulation plans could not be accomplished using slanted parking spaces. The Project therefore reflects the standard perpendicular parking space configuration to maximize parking accessibility and site traffic maneuverability. Comparison to the Colma Store Participants in the Joint Session and the Planning Commission hearings emphasized the importance of ensuring that site operations for the Project would be more efficient and less congested than those at the existing Home Depot store in Colma. First, it should be noted that the Project - in conjunction with the new Daly City Home Depot and the Home Depot that has been approved for San Francisco - would ensure that regional demand for home improvement products would be more evenly distributed among stores, thus alleviating conditions at the Colma store and ensuring that conditions would remain manageable at the Project. Second, even if this were not the case, the site layout and operations for the Colma store may be distinguished from the Project in many ways, including as follows: 2 Section 20.74.060 of the City's Zoning Code, "Retail and General Commercial Uses," requires one space for each 200 gross square feet of floor area (including garden center). The Project therefore would require 629 spaces pursuant to City code. lfthe parking ratio for garden center area were one space per 1,000 square feet (as is often the requirement in other jurisdictions), then the Project would need only 532 spaces. -126- Honorable Mayor Fernekes and Members of the South San Francisco City Council July 20, 2006 Page 5 of 11 . Site Access. The Colma store has one way in and one way out. That one driveway must be shared by employees, customers and delivery trucks, and leads directly to the front of the store. By contrast, the Project proposes three entrance/exit points, which would allow traffic to circulate more freely and would relieve traffic pressure from any single point of ingress/egress. . Ramp to Parking Deck. The ramp to the parking deck at the Colma store is located at the opposite end of the store's parking area relative to the parking area entrance. In order to access the ramp, ColIna customers must proceed along a long drive aisle and then cross through the busy loading area in front of the store itself. The Project's circulation plan, on the other hand, facilitates customer movement to the upper parking level (especially when drivers enter the site at its northernmost driveway); in addition, the drive aisle to the ramp is much shorter than in Colma and does not cross in front of the store building. . Elevators to Parking Deck. In Colma, the elevator to the upper level of the parking deck is located across the drive aisle and pick-up zone from the store. Colma customers must therefore cross through traffic in order to walk between the elevator and the store. By contrast, the Project eliminates the need to cross through traffic, as the elevators to the parking deck would be placed directly adjacent to the front of the store building. . Elevator Operation. The ColIna store has one elevator, which some commenters have remarked is frequently out of service and is thus a deterrent to using the parking deck. In fact, maintenance records indicate that the elevator was out of service only nine times in 2005 (an average ofless than once a month). In addition, the Project by contrast would have two elevators, so even if one of the elevators at the Project were to break down, the other elevator would be available to ensure uninterrupted service to the second parking level. Furthermore, the elevator at Colma is a small single-door, hydraulic elevator, where as the Project elevators would be large, double-door, cable- type elevators. . Pallet Storage. Some commenters have observed that certain parking spaces and drive aisles at the Colma store are occasionally blocked by discarded pallets, which may impede site circulation and/or be unsightly. This situation would not occur at the proposed South San Francisco store. Home Depot's newer stores (including the Project) include an enclosed area for pallet storage so that discarded pallets may be gathered in one place, out of sight, once emptied. This would keep Proj ect parking spaces and drive aisles free for their intended use by vehicles. As you can see, the design of the Project improves upon the design used for the Calma store for site circulation and operation. As a result, the Project would be much more pedestrian- friendly and vehicle-efficient than the Colma store. -127- Honorable Mayor Fernekes and Members of the South San Francisco City Council July 20, 2006 Page 6 of 11 Process and Substance of the EIR On January 31, 2006, the South San Francisco Planning Department published a draft focused environmental impact report ("DEIR") for the proposed Project. On March 2, 2006, the Planning Commission held a public hearing to receive comments on the DEIR. On May 5,2006, the Department issued a document entitled "Final Focused Environmental Impact Report," which responded in detail to each written and oral comment received during the public comment period on the DEIR. Together with the DEIR, this document constitutes the "Final EIR" (also referred to as the "EIR") which we encourage you to certify on July 26. "While the EIR's thorough and comprehensive analysis was based on the Original Project, it applies equally to the Project as currently proposed, because the two proposals are the same size and would have substantially the same trip generation and traffic circulation. Thus, the revised Project would result in only the same impacts as, and no greater impacts than, those identified in the EIR for the Project as originally designed. The EIR concluded that, with mitigation measures, the only significant and unavoidable impacts of the Proj ect would relate to the level of service and traffic queuing at one intersection in both 2006 and 2020 and to traffic queuing at a second intersection in 2020, specifically: · The level of service (pM peak hour) and queuing capacity of certain lanes (AM and PM peak hours) at the Oyster Point Boulevard/Dubuque Avenue/U.S. 101 Northbound On-Ramp intersection in both 2006 (as a project-related impact) and in 2020 (in conjunction with projected future growth and development); and · The queuing capacity of certain lanes (AM and PM peak hours) at the Bayshore Boulevard/Sister Cities Boulevard/Oyster Point Boulevard/Airport Boulevard intersection in 2020 (in conjunction with projected future growth and development). It is important to note that the traffic study prepared for the EIR is based on certain "worst case" assumptions, which result in a very conservative scenario for analysis. This is an effective method to use in preparing the EIR, as it leads to the identification of every traffic impact that could possibly occur, but in reality the traffic impacts of the Project would likely be far less intense. The three primary "worst case" assumptions that were incorporated into the EIR analysis are as follows: · The study increased the Project's average trip generation rates by 25% "in order to provide a safety factor for impact analysis." Thus, the impacts to affected intersections have been substantially inflated as compared to impacts based on trip generation rates recommended by the Institute of Transportation Engineers (Trip Generation, 7th Edition, 2003). -128- Honorable Mayor Fernekes and Members of the South San Francisco City Council July 20, 2006 Page 7 of 11 . The study projected zero "diverted linked trip capture" or "pass-by trips," i. e., vehicles that would still travel past the site even if the store did not exist, for the Project during the AM peak hour. For the PM peak hour, the study proj ected only a minor level of such trips. In contrast, the Institute of Traffic Engineers Manual allows for up to 40% of the trips to home improvement stores to be counted as pass-by trips, and based on Home Depot's experience with other stores in similar types of locations, we anticipate that at least 10% to 15% of the AM and PM peak hour trips to the Project would be pass-by trips. Therefore, the number of trips that the Project would actually generate is likely to be at least 10% to 15% lower than the number of trips on which the EIR analysis is based, and the actual traffic impacts of the Project would be correspondingly reduced. Therefore, because of the conservative nature of the analytical approaches selected, the Project impacts likely are overstated. Even if in reality Project traffic equaled the "worst case" scenario, the level of service at only one intersection would be significantly degraded, and queuing would exceed capacity at only one intersection in 2006, and at only two intersections in 2020. Transportation Demand Manaeement Plan As required by Chapter 20.120 of the City's Municipal Code, Home Depot has prepared a Transportation Demand Management Plan ("TDM Plan") that proposes a set of strategies, measures and incentives to encourage Home Depot's employees to walk, bicycle, use public transportation, carpool or use other alternatives to driving alone to the Project. The TDM Plan focuses on the reduction of employee trips as opposed to customer trips, as it would be impossible to compel Home Depot's retail customers to take public transit to purchase home improvement merchandise. This approach is consistent with the TDM Plan prepared for the IKEA store in Palo Alto, which was approved by the San Mateo City/County Association of Governments ("C/CAG"). Because different employees will have different needs when it comes to alternative transportation methods, the TDM Plan provides multiple options and incentives. The TDM Plan is expected to reduce the number of employee peak-hour trips by approximately 113 trips, which equals 38% of the total number of daily trips made by 150 employees (the maximum number of employees expected to work at the store each day).3 The TDM Plan thus substantially exceeds the minimum 28% alternative mode use by Home Depot's employees that is required under the City's Municipal Code. The TDM Plan has been reviewed and officially approved by C/CAG. 3 This calculation assumes that all store employees will travel to and from the store during the AM and PM peak hours, which will not be the case due to the multiple retail shifts scheduled each day. Thus, the TDM Plan will likely reduce the number of peak-hour employee trips by an even greater percentage than estimated here. -129- Honorable Mayor Fernekes and Members of the South San Francisco City Council July 20, 2006 Page 8 of 11 All TDM Plan elements required by the City have been included in Home Depot's proposed TDM Plan. \Vhile the provisions of the proposed TDM Plan are too numerous to set forth here in their entirety (the document itself will be an attachment to the City Council Staff Report), some of the most significant elements are as follows: · Home Depot will become a sponsoring employer of the existing shuttle service that serves employers in the area so that employee shuttles would serve the site; · Bicycle racks for 13 bicycles will be installed in safe and convenient areas near the customer and staff entries, while two shower / changing room combinations and 75 clothes lockers will be installed adjacent to the staff administration area; · Home Depot will reserve two parking spaces for employee carpools and two parking spaces for employee vanpools; · Home Depot will provide carpool, vanpool and transit riders with guaranteed rides home in emergency situations; and · Home Depot shall participate in either The Peninsula Congestion Relief Alliance or a similar organization that provides ongoing support for alternative commute programs. Local Hirine Aereement Although the City's Municipal Code does not require any local hiring commitment, Home Depot has volunteered to enter into a Local Hiring Agreement with the City that would give local residents certain advantages in applying for jobs at the Proj ect. It should be noted that it is extremely unusual for Home Depot to enter into such an agreement with any city or county, because as a large corporation with hundreds of stores across the country, it is important for it to maintain consistent employment and operating procedures at all of those stores. Nonetheless, Home Depot is strongly committed to the success of the Project and therefore is willing to change its standard operational systems to address issues that are important to the City. The terms of the draft agreement proposed by Home Depot are still under consideration by the City Attorney, but at a minimum the agreement will include the following requirements: (a) prior to the store opening date, Home Depot will advertise its jobs locally and also offer local residents the opportunity to apply and interview for jobs before any other applicants; (b) Home Depot representatives will meet on a periodic basis with City representatives during the first five years of store operation to discuss the store's employment needs and its hiring and retention experience and practices, so that the City and community -130- Honorable Mayor Femekes and Members of the South San Francisco City Council July 20, 2006 Page 9 of 11 based organizations may better prepare local applicants for Home Depot jobs; and (c) at those periodic meetings, Home Depot will provide to the City the number of Local Applicants hired by Home Depot since the last meeting, and the total number of employees hired by Home Depot for Home Depot jobs since the last meeting. Economic Impacts of the Proiect In November 2005, CBRE Richard Ellis Consulting / Sedway Group ("Sedway") produced an economic impact report (the "Sedway Report") that detailed the potential economic impacts of the Project. The Sedway Report, which we believe will be attached to the staff report that will be furnished to you for the Project, stated that the Project could earn as much as $53.1 million in sales in 2008, of which approximately $44.1 million would likely represent sales that would otherwise be lost to retailers outside the City - most significantly the Home Depot stores in Colma and San Mateo, and possibly the Lowe's store in San Bruno. Sedway Report p. 18. The Sedway Report predicted that, in a worst-case scenario (i. e., where each dollar earned by Home Depot in a particular sales category is a dollar lost by existing retailers within the City), City retailers would experience no loss in home furnishings and appliance sales, and only approximately 6.6% of their building materials sales.4 Sedway Report, p. 13. In total, the Sedway Report estimated that, in the worst case scenario, the maximum sales diverted from City retailers would represent only 7.4% of the estimated combined total home furnishings and appliance, building materials, and garden supplies sales in the City in 2008. Sedway Report, p. 14. The Sedway Report also stated that any potential sales losses would likely lessen over time as the City's population grows. Sedway Report, p. 15. Due to a variety of factors, including the unavailability of proprietary store data, the Sedway Report was unable to specifically identify which stores would be at risk oflosing business if its worst-case scenario were realized. It did, however, specifically state that South City Ace Hardware and Lumber was not likely to be substantially affected by the Project, due among other things to its presence as "an established market leader" with a "loyal clientele." Sedway Report pp.18-19. The Sedway Report also noted that Grand Avenue True Value Hardware and Sporting Goods would be unlikely to be materially impacted by the Project since it serves primarily convenience-oriented shoppers looking for a few items in a quick trip to the store; this type of sales model is generally not seen as being in direct competition with large format stores such as the Project. Sedway Report p. 19. Furthermore, the Sedway Report suggested that there could be factors that could lower the potential sales losses and even increase sales for these and other existing stores, including increased specialization by other businesses in products not carried by Home Depot, or enhanced marketing activities. 4 The Sedway Report noted that a substantial amount of garden supplies sales could be diverted from existing retailers in the City, but predicted that in reality the impact on such retailers would be much lower due to the fact that many of the garden supply stores in the City are highly specialized and sell products that would not be available at the Project. See discussion, Sedway Report pp. 14-15. -131- Honorable Mayor Fernekes and Members of the South San Francisco City Council July 20, 2006 Page 10 of 11 Sedway Report, pp. 15-16. Home Depot's own experience confirms that many smaller hardware and building supply stores actually benefit from close proximity to a Home Depot; we have attached as Exhibit B just a few of the many newspaper articles from areas throughout the country that highlight examples of this phenomenon. As a result of its analysis, Sedway concluded that the development of the Project would not contribute to urban decay in South San Francisco. Sedway Report, p. 24. Benefits of the Proiect Not only would the Project offer goods and services to the residents of South San Francisco, but it would create approximately 150 to 175 jobs in the City. In addition, it would provide substantial tax benefits and several other types of indirect economic advantages to the City. Home Depot is an active community partner and is heavily involved in charitable efforts in the areas in which its stores are located. In addition to the benefits that have been mentioned above, here are a few of the many other reasons why the store would be good for the City: · Starting salaries for Home Depot employees are considerably higher than the state's minimum wage. In addition, Home Depot provides a wide range of benefits to both its full-time and part-time employees, including: medical, dental and life insurance plans; a 401(k) plan; and same sex domestic partner benefits. · Home Depot has a proven track record of community giving and being an excellent corporate citizen. For instance, each Home Depot store has its own Team Depot, an associate volunteer program that encourages store associates to participate in community service projects. Since 2003, Team Depot has contributed more than $500,000 to more than fifty charitable or neighborhood improvement projects in the Bay Area. Home Depot has also created the Home Depot Foundation, which invests in nonprofit organizations that have demonstrated success within one of the grant-making initiatives of the Foundation. The Foundation supports organizations and programs that work to create or rehabilitate affordable housing; assist at-risk youth; protect the environment; and prepare for natural disasters. · The cost to construct the store building and adj acent parking structure is estimated to be at least $15,000,000, while Home Depot representatives additionally estimate that the land is worth approximately $30.00 per square foot. These numbers translate into tremendous tax benefits for the City. 5 Sedway defmed ''urban decay" as "physical deterioration that is so prevalent and substantial it impairs the proper utilization of affected real estate or the health, safety, and welfare of the surrounding community." Sedway Report, p. 3. -132- Honorable Mayor Fernekes and Members of the South San Francisco City Council July 20, 2006 Page 11 of 11 Conclusion We hope that you find this letter to be informative and useful as you consider the Project. As you can see, the Project has undergone rigorous CEQA review, which has concluded that it would have minimal impacts on the environment. The design of the Project has also been scrutinized and refined in response to both environmental review and public input. The Project, as revised, responds to questions and reflects suggestions and ideas voiced by Commissioners, staff and others. It would also have a more pleasing appearance, decrease traffic impacts and facilitate pedestrian circulation in the area. Weare confident that, upon consideration of the thoroughness of the EIR and all of the beneficial aspects of the Project, you will recommend that the City Council certify the EIR and approve the Project. Thank you for your consideration. Should you have any questions regarding any aspect of the Project in advance of the July 26 hearing, please feel free to contact me or Greg George, the Real Estate Manager responsible for the Project. I may be reached at (415) 788-2040, and Greg may be reached at (714) 940-3601. Sincerely, ~ L ~:-- Deborah L. Kartiganer cc: Susan Kalkin - Interim Planning Director Steve Carlson - Senior Planner Ann J erhoff - Home Depot Greg George - Home Depot Frank Coda - Greenberg Farrow Caroline Shaw - Greenberg Farrow Anna Shimko - Cassidy Shimko Dawson & Kawakami Mike Pacelli - Bay Relations -133- EXHIBIT A Chronology of Revisions to Project Design March 1,2005: Home Depot submits an application to the City of South San Francisco ("City") to construct an approximately 101,272 square foot home improvement center with a 24,522 square foot outdoor garden center, for a total of 125,794 square feet of retail space. Parking is proposed to be provided on three levels (i. e., the ground floor and two parking decks) for a total of634 parking spaces. March 15: The City's Design Review Board reviews the Project design, and approves it with certain parking and landscaping changes. These changes include the request that one of the parking decks be removed in order to improve the aesthetic appearance of the Project as a whole. May 5, 2005: Home Depot submits a revised application for the Project that incorporates the changes requested by the Design Review Board on March 15. The parking area includes two parking levels (i. e., a ground level and one parking deck), which in total accommodate 426 parking spaces. May 17, 2005: The Design Review Board reviews the Project as revised by Home Depot, and approves it for submittal to the Planning Commission. October 5, 2005: The Planning Commission and City Council hold a joint study session (the "Joint Session") on the Project. At the Joint Session, agency representatives, community members and others provide a number of comments related to design, landscaping and traffic circulation issues. April 3, 2006: In response to issues, concerns and ideas raised by the Planning Commission and City Council during the Joint Session and by City staff at other times during the entitlements process, Home Depot submits an amended application with two versions ("Option A" and "Option B") of a redesigned Project proposal that reflected the input received. Option A and Option B differ only in (i) the design of the parking deck that provides the second level of parking spaces and (ii) the placement of the elevators serving the second parking level. In Option A, the parking deck is extended to abut the store building, resulting in the provision of 490 parking spaces. In Option B, the parking deck remains separated from the building by the drive aisle in front of the store, resulting in 429 parking spaces. The total retail square footage of the Project does not change in either of the options, although the size of the store building is slightly increased to 101,579 square feet and the size of the garden center is slightly decreased to 24,215 square feet. May 18, 2006: The Planning Commission holds the first of three hearings on the Project. The Planning Commission selects Option A (the extended parking deck) as the preferred option, and requests a number of changes to the design of the Project. These changes include: revisions to the overall design character of the Project to make it more "distinctive"; additional second-level and third-level detailing around the building; innovative -134- techniques for "skinning" the building fa9ade; and restriping of the main entry driveway to accommodate more cars. May 25,2006: Home Depot submits a revised design for the Project that reflects the input received at the May 18 Planning Commission hearing. The changed Proj ect includes additional detailing around the Project building, a restriped main entry driveway, and an innovative overall design that is completely different from any other Home Depot store. June 1,2006: The Planning Commission holds the second of three hearings on the Project. The revisions that have been made to the Project are well received by the Planning Commission, though additional changes are requested, including: further concealment of the loading area (including higher screening walls); an enlarged pallet enclosure area; and a revised design for the tower element. July 3, 2006: Home Depot submits a newly revised design for the Project that reflects the Planning Commissioners' requests on June 1. Revisions to the Project include: an angled loading dock so that trucks are better screened from Dubuque Avenue; higher screening walls; a large, fully enclosed pallet enclosure area; a revised design for the tower element; and a distinctive exterior lighting and landscaping design. Due to the redesign of the parking area to accommodate the redesigned loading dock and additional design elements, there are now 462 parking spaces available. July 6,2006: The Planning Commission holds the last of three hearings on the Project, and approves the Project with certain additional recommended changes, including further concealment of the loading area and additional skinning of the pallet enclosure. July 20,2006: Home Depot submits updated elevations and plans for the Project in response to the Planning Commission's most recent comments. -135- EXHIBIT B Newspaper Articles Regarding Positive Economic Impacts of Home Depot Stores -136- BUSINESS Monday November 19,2001 . [hf Patriot Irbgrr Small hardware store is thriving Currys feared Home Depot's anival By KEmf REGAN For The Palnol Ledger QurNCY - v..Ot'Tl Home Depot opened just around the comer from Curry Ace Hard....are on CClpeland Streel a~uI nine rears ago. see:ond- generation ov..ller Bob Curry feared the WOI1il. "We were peni fied whffl Home DePOI came in." said Curry. "Bl1t it's ended up helping us, Dot huning us." Business is so strong that Curry has fmaliled plans to Dearly double: the size of his shop, which his fa. ther, Paul. founded in 1945. The 2.80Q-square-foo! expansion, for which pmnits have b<:-c:n issued and was initially slated !o start this fall, will now probably get under ....";!y neX! June. after the busy spring g:lfden $e3S(\n has ended. ~ Curry s.:lid some details of the ex- pamio~ are being kepI under \l,T3ps. but $;lid thaI one are::! of the busine-ss Ih:lt needs lldditiOlkl1 space is the point deparnnenl. "Some days we nip over each other when we ka...e here, it's so busy:' he said~ Curry's SOD Sean said the: store was the f lI'St Benjamin Moore paint dealer south of Boston and he point- ed out Ih:31 its locarion just off 1.93 makes if a e:on\eoient ClI=uon. Tho: store also rocus~ on niches th:lt the big-box Slore dO....Tl the S tree'! neglects. sue: b as 5pC'Cia Ity roanngs, fau."( r ullsh~, custom and hard'lo-fmd fasteners for contrac- tors and screen repair, Sean Curry s.3id. Bob Curry said the store had one: of ItS busiest months in 0C10ber. He: atmbules the fact that his business has thrived \\ rule other family- O"'lled hard\\-are Stores have wilted under the threat of the home im. provement giants to OUtStaIiding e:ustomer ser.ice. "We've got about a dozen people who v.'Ork here at various times and they aJl go the extra mile:' Bob Cw'- ry said. "We've got a great reputa- lion for jumping through hoops. 1 f someone com~ in and De-efjs some- thing, our mission is to get it for them. If lhal me.ms we h:r.-e 10 call Home DC'pOI, lhat'S what we'.II do," Another reason m:my hard\\at'e STores failed. Bob Curry said. is that they "remained old.f:lShioned:' ~o o'ne can accuse the Curr)'s of th':H, The IVoO art among the e:o- fOWlders of HomeTQ".l.n$lores,com. a \Veb site that sells home improve- ment products, "We didn't Stay old- f~hioned." Bob (' uTrv said. Sean Curry said the: e'XpaDSion project will t:1ke about 18 \Ioeeks. As part of the projC'Ct. the (wry's pur- chased a building DCtt door that \l. ill be used for WI1j:'\lrary storage dur- ing the prO)~\:1 .l11d [hen me<! for Jddltional pJIkmg. ~ -137- ; :,; iH t & U S ltH H I Hardware stores unfazed .by\~_~~e Depo\ By Marlene Urso SIal! wr IIf" Home Depot's familiar orange sl'unllle could become a fOnTul1able presence at Ole (hartlers Valley Shopping (rnler. but some local com. pt'lllDr~ are not intimidated by !he hardware giant 'At (Ll'sl II Will hurt us iK-c'ause It is a novelty, but we have a lot o( items lhey don't stock,. S;!llj Jasoo Sarasnick, co-owner o( Sarasnick Hardware in Bridgeville. Sarasnick is conCident that his lOYAl ruslDmeM; will conlin. ue lD buy specialty plumbing IIpms, bolls, screen and win. dow supplies and olher mer. chandise OIl his slDre. He says Ole Home Depot will eventual. ly bring more business his way. '11 wtll be an asset. It will draw people lD the a rea" Regardless oL how local rct"Blers (eel, Ole Collier Home Depol is due to open on Thunday, Slop! 19. The 116,593 sCJuare. (001 slore includes a tool ren141 cenler, Jl garden cenler. an expanded appliance cenler tlnd ltiu:hen and baOl drslgn place. The slore will employ 165 pt'ople. Most will be hired (rom Ihe loc:ll commWllly. A hiring Iraller "'3S on . Me beginning on Monday. Sarasnick. a fourlh genera. llIln owner. says his firsl Joh In lhe hardware buslllcss was cafT)'Ulg boxes (or hiS III I her when he was in the seventh ~r;lde. Ill' prides himseU on provid- InR the right producl and knowledge. somel/lIng he r laJnlS his larger competitor cannol always do. -YDU have to (ind your niche in lhis b:JSl/Ies.s.. When Sears Hardware opened at Great Soulhern Shopping Center it impacted his business nl'galively for a bou: SIX months. Now he has more buslJ1ess because of il. Sarasruck said a C'uslDmer who l"l't'enlJy bought a laucet :It Sears Hardware, l'nded up buying ~40 worth 01 acces. sorles at his store. The Sarasnick's have also managed 10 combat the Homl' Depot's volume buying advan- tage by Wliting wi!h other smaU hnrdware slore,s to (onn lhe TrUl' .Value Cooperative hu)'rng group. "Through the C\)o MonroaviilB, fA BridgBville Hiliv'; Sta, ~ln"It",., Mil A... IV'dn."c~, wu. I'lUG 14, <"Ie? JI JIWill: JIIII 'ill l! 'if!' Iii;" ~OUll~ N?l?' .~.-- "''''ll.Lt.!..!..!'I\'f.\ JOE SARASNICK organizes the shelves at family. owned Sar.snlck Hardware. Pharo by David PinChot op, its 8,000 membeM; can get better prices by making joint purchases. Sarasnick said hardware gIants like Home Depot and lDwes 1I1JI~e -~. profit on "blind items.' A pipe at the larger slDres might be cheaper but filtings are ~ times as much as those at Sarasnick Hardware. He warns that "buyers beware' when purchasing trivial items. CuslDmers typicaUy look for a good pr.ice on paint or a sla. pIe gun bUI as a malleI' of con. venience will buy ilems like rollers and staples lD complete a proje<:t without comparing prices. Sarasnick said his prices lor severa) smaU:items are lower. HIs roUeI' C'overs are S4.98 and theirs are $2 95 Kt)'S are cut for' suo while Home Depot charges SI.89. But Home Depot representa- tives say their prices can't be beat. . "II ~ smaller retail competj- lDr tries to ~Ompete with us in prieing they will lose,' said Shelley Schumaker. spokesman (or Home Depot in Atlanta. 1f a ruslDmer finds a lower price on an item 1M company will match il. "We will create competition among retailers and drive prices dawn.' Bul Shumaker said smaller slores compete in other ways. - If someone is the loyal ('US- lDmer of a small rel4iler. no one will pry that customer away. . Ed Applebaum. owner 01 Carnegie Supply, said his ! ~,OOO sqLl3re {oot slDre offen; cooven. ience. 'Customers can get the product and then get the I heck I out 01 here tlnd get the joh done. . Schumaker suggests that small retailers provide services and product lines other than those oflered at Home Depot. Applebaum has access to items that gi~nt retailers doil'l have. but said there is also quite a bit or overlap. '"We have the ability to gcl almost anything.' Like Sarasnick, Applebaumebelongs lD a cooperalive of smaller retail slDres. The Ace Hardware co-op gives him more buying power. Both he and Sarasnick halle a mix of retail and commen:ial busine.s.s. They also agree that the Ace and True Value store$ have enjoyed a growth spurt in the past year. But Applebaum attributes the success he and his father Max, 83, have eJ\joyed for Ole past 60 years to their excellent c:uslDmer service. They have l~ knowledgeable employees. 'We will continue lD do what we do now, that is have some- one on the Door customers l:2.r' ta.Ilt to.. ___-~ -138- .... -..--- -............ ..........~,.. u"p~.u.U\~>.uJ&.loI.'-'UllMl,.IJ~...IIIJJ Uu.rlaU.::...nu-u~ UUJ_\.IUC'Y1_l0ol;')O),':)OJ&LJOC' typt:': I eXIV ronnat to Print/Save EJ Midwest News Article 8 Return to Headlines Business; B Rod Vought, manager of Damman's newest store in Macomb Township, belps customers with patio furnituret a service tbat keeps the hardware competitive. Fainily.run hardware staves off francbises Neal Haldane 03/28/2002 The Detroit News Page 02 (c) Copyright 2002, The Detroit News. All Rights Reserved. MADISON HE1GHTS .- Damman Hardware survived when Builders Square and Home Quarters entered and left tbe market. And Rick Damman. president and CEO, has the company moving forward as it competes against Lowe's and Home Depot. The company's newest 22,OOO-square-foot store just opeoed in Macomb Township, replacing a smaller outret in Warren. "We've had competition in varying forms all aJong," said Damman, whose grandfather opened the first store in Detroit in 1920. . But the competition has become stiff. Lowe's has 21 home improvement warehouses in Michigan with four more under construction as the company embarks on its most ambitious expansion program in its history. Lowes entered Michigan in 1994. Home Depot has opened five Michigan locations since October and has 53 stores in the state. The company entered Michigan in the mid-1990s' and plans t9 open three new stores this summer, including one in Auburn Hills. . Not to be outdone, Damman has been busy the last few years increasing the size of its stores in Grosse Pointe, Rochester and Farmington, and opening its oewMacornb Township store: "Our business mission is simple," said Damman about his 17-store chain. "Damman Hardware is a hardware retailer focusing on convenience and customer service." The customer base is 96 percent homeowners and half of shoppers are women, he said. The larger chains have lured away members of the building trades, who are dra\'fll to the selection of tools, Damman acknowledged. liThe professional is probably where we're impacted the most, but we just don't have the roorn." he said. Instead, the company is focusing on outfitting the home. \ } "People are gravitating toward tbeir homes and we will be carrying more home decor," he said. "We do a heck of a goodgrilJ business. We aJso assemble and deliver grills for free. We really drive the .;f2 0312912002 1:23 AJyI -139- -. .- - -...,....., . "'......... customer.service aspect." That customer service comes from a staff of250 associates, who have a stake in the firm through an employee stock plan. be said. Damman also credits the company's inventory control system that lets personnel track "tbe profitability of each item at each store." Stores such as Damman Hardware have been able to succeed by knowing the market, said Ellen Hackney of the National Retail Hardware Association. "You have to look at your market and figure out what your customers want and need," Hackney said. "Sometimes, it's service. Sometimes it's a convenient location. Sometimes it's a niche product." Damman Hardware '" Headquarters: Madison Heights · Emp )oyees: 475 4 * Staned: 1920 in Detroit · Stores: 17 * Information: www.dammanhardware~com Return to Headlines Foffi'lat to Print/Save Copyright @2oo0 Dow Jones & Company. Inc. All Rights Reserved. of2 0312912002 8:29 J -140- , "m :- _.. U. o .... I .i: ...... c .. :I. ea ! to G) .. G) .c .pi .= '.Q --- c .. .~ 'S: '11 ~'G> ..Z" . . . . .":'" .. ... C' . ~ . " fl).... . ..' . . (:;. .. . 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OJ -0 it ~ - 5: ~ ~ ~ ~ QIl~ ~ '" ~5j~~I~!~tCll=~:>~~!g~~~~~~s~~ ~~~~~~=~o~~B~~"'~J-o;r:_o__QIl55Q1D t=~5=:=~~~=~~~~~ .~~~~~OC~. ~ - ., '. - - - - ',. - OJ - ,,- _ 14 1 _ .. ..... >. r"l Q, -. F= .. ": ~~ "'< >a: 0'-'", ....10... -:fU Ill:uz :s::co ~~3 10.>- ,.,01'1 Ill'" ::: v e.. o o o N N -l '04 l-I P- < ....... >, OJ <I) ..... OJ ...., ~ OJ Z '-' Ul .<1) OJ l-I 0.. ~ l-< r;1 0.. l-I :l ~ tIl ~ .. Reading. PA Eagle Rudlng M,t _ru S Jnday SUN 101,109 FEe 13, 2eee illlllli II!IIII ! III11 !1II1 !lIlli/III III (][1JrBrn 1"./1 ,\ r L Ir~,4,~~,0 DON SPATZ David learns to get along with Goliath I've often championed the cause of the smaller shops trying to stay in business after tbe big chain stores come to town. It can be done. I've said, if the shop finds its niche and customers can see how it differs from the big boxes. Now comes a good example of a smaller competitor - A.D. Moyer Lum- ber & Hardware -that's not only still standing, but had itS best sales year ever in 1999 despite a H.2J:!!~ Depot opening up direclly across the street from its Pottstown facility. The results surpnsed even compa- ny owners Scott and Tem Moyer, and [j'J:lrketing director Ron Schock. de. spite the four years of preparation the company undertook to get ready for a battle it knew was coming. "We were cautiously optimistic," Schock said. "We were relatively con. fident we would stand our ground. We knew we would lose some of the d~it- yourselfers. but we figured we would make it up on the contractor end. "But we did not at all think. . . we would have our best year e,er in 60 years of being in business." What did A. D. ?rloyer do' The company began preparing In 1995. Schock said, Although there were no plaDS Cor a home improve- ment giant to move into the area then, the company knew someday it would face a Lowe's or Home Depot Schock said he spent months re- searching how other independent lumber dealers reacted when faced with the same situation. He compiled a list of companies of similar size aDd product mix and interviewed them, by telephone and e-mail, to see what they . did ngb'~ and wbat they did Wrong. Scbock's report led IDaDli"geinent to plan' what A.D. Moyer would do. But the plan would have be~n'tutile without a buy-in by the companies' 110 employees among its three facili. ties in Gilbertsville, Pottstown and near Birdsboro. "We are fortunate to have a very tight-knit team of employees here who care about this company as if it were their own," Scott Moyer said. "None of the Changes that our man- agement team proposed would have mattered or even been possible if the . employees hadn't believed.ill the.. company or the plan themselves!' '. A.D. Moyer had picked up. more do-it.yourself customers a year earli- er when Rickel Home Centers closed. but believed it would lose some oflhat crowd to Home Depot. It decided to focus more 00 its best cus- tomers - the contractors to whom it had been catering for years. Thus. it hired more outside sales staff and invested in specialized builder-friendly equipment, such as a knuckle.boom truck (for better placemeot when it unloads its deliv- eries) and a computeril.ed estimating system. And it decided not to compete with Home Depot on the same brands. 'Lnstead, it cbanged to other brands of products and tools aimed at profeSSional builders. "We're not trying to be all things to all people:' Schock said. "The places that went out of business (tried) to compete 00 the price issue." -142- It also ramped up its specialty ser- vices such as custom millwork and custo'm ordering. And it ad~pt~d a slo- gan - "It's all about quahty -. ~at Schock claims is not all advertiSing gimmick but the comp~IlY's way of doing business and choosmg products. The plan worked: Tne builders car. ned the company, but it didn't lose as m.ueh of the do-it-yourself crowd as It thought it would. Schock said. ^:Od even Home Depot helped, by lo~a~ directly across the street and bnngrcg customers to A.D. Moyer's end. of town. "We are muc~ better OffWlth them bemg. across the street than across town .. Schock said. ''We've found that their' existence actually has brought us more customers in some depart. ments.than we had before." But he ackn.owledges the battle isn't over_ . "We've got to change on the Oy; we have to stay" Oil our toes and change things as the b~iness ch~es" and product or tool hnes don t move, he . said. "We're more co~t orlbat ~ow than we inay have .been In tb e past. . Dim Spatz is business editor of the . ReQdmg Eagle and Readi1t9 Times. To comment, call Eagle Link at ~I0-376- 6000 categOTy 3010. Or e.matl us at dspaiz@readi7lgeag/.e.com ~.: . ' ,., INC, 8oslGn. MA 6EMI- MOHTHl T 784.967 i SEP 1999 \ I 111I11 illll UlIIIIIII n llllllllllllllll i nrDrIIr.:! M13Se0 L!lUlLIIL!!I ~ ItE: sse L I n I Ii 0 S 'Reports of my death..,' /..Lttm continUtd 10 pmlT in in resjxmJe .to O'IlT 2Oth-annivmary i.s.l~, including thiJ t1IV jrrtm a businm (Jufrlrr WM resrn ted the ! port oj otlrtimt lint ("/n Our Time~,' 1979-99") that clIronidtd tk rise of m.;ga- mai/m .lUlh a.s H(11TIt Dq>ol at lhe txpm.se of mum~nd# fl/>"alirm.s. !,'" ~ I 1 found it inlercsling 10 read about my , apparently imminent demise in your 20th-anniversary issue [in "Die, Cate'; gory. Die-I"}. We slarted our hardware \ slore one yeaT before Home Depot's founding a~d have managed 10 grow by a factor of 40' d~ring the past Z2 years. in spite of having the familiar orange facade within five miles of eilher side of our location. We represent the mom- and. pop operation that you describe. But as me~bers, and owners of a TroServc hardware cooperative lh;u last year sold $4.S bil'ion in hardware at wholesale. we hardly see ourselves as grin for the banJr.nlptcy mill. In facl, wc feel Ihat we arc Ihe nimble compeUtor that you oftcn write aboul. who can feel I and react 'quickly to the needs of our customers. While 770 is an impressive ' number of stores. lhere are more ,than I 8.000 stores in our co-op countrywide. ! and our co-op represenl.s only one of three major hardware: co.op~ in Ihe marketplace. What really struck me in that issue was the Editor's NOle waxing eloquent ilhoUI the birth of Sail and ultimately of /n(. lIS a result or its founder's early fail- \lrl: \\;lh a 5chool on :l s:lilbmll, h must be discouraging 10 see that effort doomed by the emergence of publish- ing behemoths such as Time Warner. It's obvious to everyone that there will be no room for a publication like yours among companies that dominate the publishing :md C'l\lertainment world. 11'.1 a shame. sin,c over the yeilTs I have fOllnd the- magazine 10 be a valuable resource in the growth of our business. JI'" WILKE~SO'" rAUPlIt'TOIt !\I."('XHA\\'K HAIU~W,\Rr. 1:Il"RLOTTf., N.c:.. -143- =' c ..... ..; N :: '-i Z :x < 0 ~ > - c !s Q Z ;) ... III g . III Ii) W w c: D: ... l>l ..J w c: - ~ II:( Z c l- I- W \j z D: :i ~ - :J: I- C 0:> .. oo~ ~.~ ~ >. oo~ .~., I 00 en iiciJ ~.E9 u :~ . .~. ~i~ '. '. -.......~ '1' , '-> .. ) .'. ;"',-.,..., ';o..~ r7!J.. "._}"i,.,~. "1' . '. ~~ i:." ~ :~;-. .' I!' ~.. . :,. . ~ N ,.... 00 ~ .V'J : . ~ u - ~ cL U ~: ..Q.....c "'''0' -' .cO .-.... ...o~ ....c '" 'tl._ 0.5 E)( t1'^~~ -c:-rGo ~~ln"'u--o~~ ~ ~ Q..,_ ~ ~ ~ c'O ....- U 0 >'0 .. C._ I: v.c '" tJ '" .. "' .. .. ",== t) .0 Q....l.c C ~ E Q..~: ...~ IlJ 0 gg..c :.0'0 _ c 0"' bDt,l -... :.M ~ 'O..!. .. 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C. :; l!.l 0 oog"";;:;: '" t ,," 8 .=....:l ~ CO".; a..c:;::lf:;: c -;;; ",..J c....... __0;00::>1= 'E< :.Q5;-u.g-o,"...",,,,CD3 OJ >.~!1' -€;:;l:l~IJ~~';~ ..J = .. >. 5 '0 'c '>. l'f::; " ::> 0 .0 .0 tI) ~ .2 ~ ::: u .::: ;:; U -->~~<~ ;,; " ..c ] u --c ~ C) o ~ \'-J ~ o ~ CIJ Q) ~ ~ .g ~ ~ == ..... .....c -- ... r:/) Q) >- ...... ~ ..c: ~ r .". -- mg On The m~\]j ~C!))J~ "",ok- ,.,..,.., "'/J>t...~HJ.o"N Armonk Ibrdwu~ ('"",ill.':d fN'" puce'8 bUlJdin~ malmals Home Depot does- n'l sell. In jusl one lfIp 10 Home Depot the typIcal ~uburban nome can be fully Out fITted wllh alllhe supplies required for bhnds;wallpaper, Ooor coverings, r"""lure. Cab1n<ls, grills: heaters, plumbing, lighting and electrical work. ^ holTltowner could finish not only the basemenl, but the kitchen bath, lawn and garden. . . And afler all Ihe shopping is through, a homeowner has no need 10 ~'orry aboul an oversized load damag- Ing Ihe car. They can Opl 10 have pur- chases delivered home, or packed into a Load 'N Go IcnlallmcX. If Ihey want to learn more aboul Ihe merchandise or how 10 use lheir equipment, they can take a free prodUCI Iulowledge or how.IO climc.lflhey arc W1happy with . purchase, they can bnng it back has- . sic free, Aeuslomer docsn'l have to buy a 1001 al Home Depol; he can ren\. He doesn't ha~ ro inslall an appli- ance; . he can lake advanlage of an IOslallalion service.. . .",;'" W,th local' -~ on Mohegan Lake, New Roeht West Nyack and Danbury, one might thmk thai H,)me Depot has monopolized home Improvemenl 10 Ihe Wesrchesler area But Tom Sessa, the assistanr store manager al Ihe Danbury Home Depot saId that doesn't ha\'e III be ttlt: case for small hardware slores. "You'c~'l'bc a mom and pop outfit 'cause YOll can do things a big slore can'l do. There's enough chenlele OUI Ihere for every- one. you just need 10 chanlle. Home Depot's been around for 20 years, and il's changed.'" And. In fact, Home DepOt has!\ 'I Nn small, local hardware slores tOlO the ground. Accordzng 10 hardware Slore managers in MOllnt KISCO, l.~lsboro and Armonk. their stores ife slIll successful. "WI:'VC changed around how we do tlllngs," said Chuck Vroman, Ihe man. . ager al Mt.. .K!~co Supply. "We tow- ered prices, Whal we normally sell whol.:>:!le, we 'are selling 10 cus. tomers." . Mike Levinlon, the manager al Lewisboro1>arnl and' Hardware, said "I guess we lose 'he laree dollar thingS' where. .people shop Ihe. price." But whel1 it" tumes 10 less expensive ilems. lh~'dift'crlinee bC~en a Home Depot md.his oWn hardware store is mini- mal, practieally peMies_ He said Ihat local residents shop for smaller, inex- pensive items where it's convenienl and eouneous, so he's limited his sale -.of larger equipment and brought in new lilIes, Dennis Buoncx:ore. Lbe owner of the Armonk Hardware Company, high- lights the: advantages to his store. "WI: arc very couneous and very helpful, whereas Ihe big chains are:n'\." He also said, "I'm very local. I know all the people here in town," While H,ome Depol has challenged small, locally. owned . stores in the .s.am. way jhal S'tarbUcks. The Gap, and Barnes & Noble have challenged .their local equivalents, the impact has- n'l been all negative, As DeMis ROSlsel, one of the stor~ '.managers althe Mohegan u.ke Home Depol said. "If YOII. take care of your customers, your customers will come back to you.Uyou give them'reason to shop elsewhere, lhey will:' DKS Associates TRANSPORTATION SOLUTIONSl i May 2, 2005 Jeff Nance Senior Associate Greenberg Farrow Architecture 15101 Red Hill Avenue, Suite 200 Tustin, CA 92780-6501 Subject: Home Depot Parking Study PIA No. 05110-000 Dear Mr. Nance: DKS is pleased to present this letter that addresses the expected parking ratio for the proposed Home Depot in the City of South San Francisco based on existing parking demands of three existing Home Depot store locations in the San Francisco Bay Area. The three Home Depot store locations observed are: · EI Cerrito Home Depot at 11939 San Pablo, EI Cerrito, CA · San Rafael Home Depot at 111 Shoreline Highway, San Rafael, CA · Hayward Home Depot at 21787 Hesperian Boulevard, Hayward, CA 1.0 Study Method ology The following survey methodology was employed in order to determine the appropriate parking demand for each site surveyed. Off-Street Lot - The number of parked vehicles and available spaces were counted in 30-minute intervals. 2.0 Data Collection In order to address the periods of particular concern, parking utilization surveys were conducted at the three Home Depot store locations in the month of April 2005, during a typical weekday morning from 7:00-9:00 a.m. and afternoon from 4:00 p.m. to 6:00 p.m. and on a weekend midday from 11:00 a.m. ~ 1:00 p.m. 55 South Market Street Suite 1040 San Jose, CA 95113 (408) 292-9411 (408) 292-9511 fax www.dksassociates.com -148- HOME DEPOT STORE ECONOMIC IMPACT AND URBAN DECAY ANALYSIS SOUTH SAN FRANCISCO, CALIFORNIA Prepared for: THE HOME DEPOT NOVEMBER 2005 CB RICHARD ELLIS CONSULTING Sedway Group -149- CB RICHARD ELLIS CONSULTING Sedway Group CBR::E CB RICHARDELLlS November 21,2005 Ms. Jeffrey Nichols The Home Depot Real Estate Department 3800 West Chapman Avenue Orange, CA 92868 Re: Economic Impact and Urban Decay or Deterioration Analysis of Planned South San Francisco Home Depot Store Dear Mr. Nichols: CBRE Consulting/Sedway Group is pleased to present this report regarding the proposed Home Depot Store in South San Francisco, California. The report summarizes our economic impact and urban decay or deterioration findings for the planned Home Depot Store. The Executive Summary of the report highlights key information and conclusions, fully documented in the body of the report. Please be aware that all of our analysis and conclusions are subject to the Assumptions and Limiting Conditions included at the end of this report. It has been a pleasure working with you on this project. Please let us know if you have any questions or additional needs. We will finalize our draft report upon receipt of comments from you and the City of South San Francisco. Sincerely, ~.~.~ ~1W- Amy L. Herman, AICP Managing Director Kevin August Consultant P:\2005\ 1005060 Home Depot South SF\Report\ 1 00S060ROS.doc -150- CB RICHARD ELLIS CONSULTING Sedway Group C:BRE CB RICHARD ELLIS TABLE OF CONTENTS I. EXECUTIVE SUMMARy......... ............................................................................................... 1 INTRODUCTION .......... .............. ................................ ......... ...... ............. ............................... ... 1 SUMMARY OF FINDINGS.... ......... .... ................................... ....... ...... ......... .................................. 1 II. INTRODUCTION................... .................... ........................................................................4 STUDY BACKGROUND................... ........ ....................... ....... ............. ........ ................................ 4 STUDY TASKS.......................................................................................................................... 4 STUDY RESOURCES............ ..... ...... ...................................... ........ ............. ................................ 5 REPORT ORGANiZATION............. ............... .................................... ......... ...................... ............ 5 III. STORE SALES IMPACTS............. ......................................................................................... 6 STORE LOCATION AND SiZE.................................................................... ................................... 6 PROJECTED HOME DEPOT STORE SALES ......... .... ......... ............ ................................... .................. 6 NET NEW SALES TO THE PRIMARY MARKET AREA .............................................................................8 IMPLICATIONS FOR NET NEW SALES GENERATION ........................................................................ 12 IV. IMPACTS ON EXISTING PRIMARY MARKET AREA (CITY OF SOUTH SAN FRANCISCO) RET AI LERS...................................................................... ..................................................... 17 COMPETITIVE HOME IMPROVEMENT STORE SALES................... ...... ..... ...... ...... .... ........... ................. 1 7 HOME DEPOT STORE IMPACTS........................ ...................... .... ............ .... ....... ........ ................. 1 8 V. CUMULATIVE IMPACTS................. ...................................... ..................... ........ ................ 20 IDENTIFIED PROJECTS.............. ...... ............... .................... ......... ............................ ................. 20 PRIMARY MARKET AREA CUMULATIVE SALES IMPACTS.... ......... ........ ......... ...... ................. ..... .... ........ 20 VI. URBAN DECAY DETERMINATION .............. ............... ..................... ................. ................. 22 STUDY DEFINITION OF URBAN DECAY... ....... ........ ............................................................ .......... 22 APPROACH TO DETERMINING URBAN DECAY POTENTIAL ....... ....... ................. ........ .......... ............... 22 RETAILER DEMAND IN THE PRIMARY MARKET AREA (CiTY OF SOUTH SAN FRANCISCO) ........................... 22 URBAN DECAY CONCLUSiON....... ........ ...... ..... ..... ........... ........................................................ 23 ASSUMPTIONS AND GENERAL LIMITING CONDITIONS APPENDIX: EXHIBITS -151- CB RICHARD ELLIS CONSULTING Sedway Group C'BRE CB RICHARD ELLIS Estimated Major Product Lines and Distribution of Sales, Proposed Home Depot Store, Cily of South San Francisco, 2008 Estimated Sales, Proposed Home Depot Store, City of South San Francisco, 2008 Map of Primary and Secondary Market Areas, South San Francisco, Ca Population Assumptions, Primary Market Area (City of South San Francisco) and Secondary Market Area, 2000 - 2020 Estimated Garden Supply Sales and Leakage Results, Primary and Secondary Market Areas, 2008 Estimated Sales of Closing Levitz Store, South San Francisco, 2008 Retail Sales Leakage Analysis, Primary Market Area (Cily of South San Francisco), 2003 Projected Retail Sales Leakage, Primary Market Area (Cily of South San Francisco), 2008 Estimate Adjusted Sales and Attraction/Leakage Results, Primary Market Area (Cily of South San Francisco), 2008 Retail Sales Leakage Analysis, San Bruno, 2003 Proiected Retail Sales Leakage, San Bruno,2008 Retail Sales Leakage Analysis, Millbrae, 2003 Projected Retail Sales Leakage Analysis, Millbrae, 2008 Retail Sales Leakage Analysis, Burlingame, 2003 Projected Retail Sales Leakage Analysis, Burlingame, 2008 Retail Sales Leakage Analysis, Secondary Market Area, 2003 Projected Retail Sales Leakage Analysis, Secondary Market Area, 2008 Retail Sales Leakage Analysis, Primary and Secondary Market Areas, 2003 Projected Retail Sales Leakage Analysis, Primary and Secondary Market Areas, 2008 Home Depot Store Sales Impacts on Primary Market Area (Cily of South San Francisco) Retail Sales, 2008 Estimate Adjusted Home Depot Store Sales Impacts on Primary Market Area (Cily of South San Francisco) Retail Sales, 2008 Estimate Analytically Derived Maximum Diverted Sales as a Percent of Estimated Primary Market Area (City of South San Francisco) Sales, 2008 Estimate Annual New Population Retail Demand, Primary and Secondary Market Areas, 2008 - 2013 Exhibit 24: Cumulative New Population Retail Demand, Primary and Secondary Market Areas, 2008 _ 2013 Exhibit 1: Exhibit 2: Exhibit 3: Exhibit 4: Exhibit 5: Exhibit 6: Exhibit 7: Exhibit 8: Exhibit 9: Exhibit 10: Exhibit 11 : Exhibit 12: Exhibit 13: Exhibit 14: Exhibit 15: Exhibit 16: Exhibit 17: Exhibit 18: Exhibit 19: Exhibit 20: Exhibit 21: Exhibit 22: Exhibit 23: LIST OF EXHIBITS (LOCATED IN APPENDIX) Exhibit 25: Survey of Potential Competitive Developments, Primary Market Area (Cily of South San Francisco) Exhibit 26: New Sales Base as a Result of Home Depot in Primary Market Area (Cily of South San Francisco), 2008 Estimate Exhibit 27: Cumulative Impacts of Proposed Lowe's Store, South San Francisco, 2008 Exhibit 28: Maximum Cumulative Diverted Sales as a Percent of Estimated Primary Market Area (City of South San Francisco) Sales, 2008 -152- CB RICHARD ELLIS CONSULTING C:BRE CB RICl;AROELLlS I. EXECUTIVE SUMMARY INTRODUCTION The purpose of this study is to research the prospective economic impacts of a planned Home Depot Store in the City of South San Francisco, California. The store would be located at 900 Dubuque Avenue, which currently houses a Levitz furniture store. The site is proposed to be developed with a 1 01,272-gross-square-foot Home Depot Store and a 24,522-square-foot Garden Center, for a total store size of 125,794 square feet. The Home Depot is in the process of seeking approval from the City for this store, planned to open in 2007, with the first full year of operations anticipated by 2008. This study probes the potential impacts of the store on existing retailers from the store's operations. SUMMARY OF FINDINGS Home Depot Store Operational Information CBRE Consulting estimated that stabilized Home Depot Store sales will total $53.1 million in 2008 dollars, comprising $10.6 million in Home Furnishings and Appliances sales, $33.4 million in Building Materials sales, and $9.0 million in Garden Supplies sales. Stabilized sales are not expected to occur the first year of store operations, but rather the second or third year, which is typical of new retail operations. This is an aggressive sales estimate, assuming this proposed store performs at the national average. This may be an overstatement given the number of Home Depot Stores and other major home improvement stores in the general vicinity of South San Francisco. Of the sales, $42.8 million is estimated to be generated by primary and secondary market area residents. The primary market area is defined to include South San Francisco, while the secondary market area includes Millbrae, San Bruno, and North Burlingame. Impacts on Existing Primary Market Area Retailers The City of South San Francisco is an established retail shopping location, with attraction in some retail categories and leakage in others. The equivalent of 90 percent of resident spending potential is captured by South San Francisco retailers. Therefore, the City of South San Francisco is defined as the primary market area for the Home Depot Store. The secondary market area has been defined as San Bruno, Millbrae, and a portion of Burlingame north of Broadway, called "North Burlingame" for the purposes of this study. Additionally, there is still a significant level of demand generated by an undefined tertiary market area. If the Home Depot Store's primary and secondary market area sales occurred at the proportional expense of existing primary market area (City of South San Francisco) retailers, then existing retailers would experience a maximum annual net loss of $6.6 in Building Materials sales and $2.4 million in Garden Supplies sales upon stabilization of the Home Depot Store in 2008 dollars. There is no sales diversion in Home Furnishings and Appliances HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS NOVEMBER 2005 -153- CD RICHARD ELLIS CONSULTING CBRE CBRICHARD..ELLIS stores anticipated, given the projected retail sales leakage in that category. While these sales volumes may seem large, the Building Materials figure comprises only 6.6 percent of all estimated City of South San Francisco Building Materials sales in 2008. The impact on Garden Supplies stores could be large, as this figure represents more than current garden supply category sales in 2008. This fact could be mitigated by the nature of South San Francisco's three garden supply stores, which appear to cater to a specialized market niche given their unique product offerings, which include custom lawn ornaments and statuary. Oftentimes, custom dealers attract sales from a larger market area than Home Depot does because those stores offer a unique and more expensive service than a national retailer like Home Depot. Thus, Home Depot's impact on garden supplies sales will likely be smaller than predicted because it will be providing products not currently available in the market area. Moreover, stated earlier, the Home Depot Store sales estimate is aggressive, and assumes the store performs at the national average. If sales are lower, reflective of market penetration of other Home Depot Stores and major home improvement stores, then the sales impacts on primary market area retailers will be commensurately lower. Building Materials' 6.6 percent diverted sales impacts are slightly above the range of what typically is regarded as seasonal or annual changes, generally considered anything less than five percent. This being said, having established South San Francisco as a hub with strong attraction in Building Materials sales, CBRE Consulting believes that home improvement stores in the primary market area are performing well, which in return would allow for larger than typical sales impacts. New population growth is anticipated to mitigate one quarter of the proiected lost Building Materials sales volumes within five years, and a small percentage of the garden store sales within five years. Also, retailers could successfully reposition their stores and South San Francisco sales could increase overall due to the enhanced regionalism of South San Francisco's retail market. However, should specific home furnishings stores be subjected to a significant decrease in sales after the opening of the Home Depot Store, not mitigated by new demand, it is possible that one or more existing home improvement stores may close. Yet, without access to confidential individual store sales data, it is difficult to identify which stores might be most at risk of closing if this unlikely outcome is realized. Cumulative Impacts In addition to Home Depot's plans to develop a South San Francisco Store, Lowe's Home Improvement Warehouse plans to develop a new store in South San Francisco. The maximum cumulative impacts of both developments would result in $18.0 million in diverted sales, with $18.0 million diverted from existing Building Materials dealers. There are no anticipated cumulative impacts on the Home Furnishings and Appliances category, and it is very difficult to determine what, if any impacts, would be incurred by Garden Supplies stores due to the specialized nature of such stores in South San Francisco. Urban Decay Determination CBRE Consulting engaged in several retail market research tasks to assess the probability of urban decay and deterioration ensuing from development of the Home Depot Store, with urban decay defined as physical deterioration that is so prevalent and substantial it impairs HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 2 NOVEMBER 2005 -154- CB RICHARD ELLIS CONSULTING CBRE CBRICHARD.ELLlS the proper utilization of affected real estate or the health, safety, and welfare of the surrounding community. These tasks revolved around assessing the potential for primary market area (City of South San Francisco) stores to close due to the Home Depot Store, and whether the store spaces, if any, were to remain vacant for a prolonged period of time or be leased to other retailers within a reasonable marketing period. The retail market research findings indicated that the retail market in South San Francisco is considered second-tier, with few destination retailers and a lack of high-quality space. While rental rates are generally lower than those in neighboring cities, South San Francisco is highlighted by a low vacancy rate. Many businesses identified as retail in nature are actually located in light industrial buildings, given the City's character as an industrial city with limited supply of traditional retail space. This fact could be advantageous in the event vacancies result from Home Depot's opening, as these spaces could be re-used with industrial tenants. Major national retailers located in South San Francisco include Costco and Orchard Supply Hardware. However, South San Francisco's retail landscape could change in the future if current development proposals are approved and realized. In addition to Home Depot, Lowe's Home Improvement Warehouse is seeking approval for a new store in South San Francisco, and the Terrabay Specific Plan Area could include substantial new retail square footage that could upgrade the City's retail image. Several brokers with experience in the South San Francisco market indicated that there could be demand from retailers who seek lower rental rates in the event vacancies opened in the market. Though specific retailers were not identified, discount apparel stores were mentioned as one possibility. Further, Home Depot's entrance into the market could serve as an anchor to spur more retailer demand in South San Francisco. Thus, CBRE Consulting concludes that the development of the Home Depot Store will likely not contribute to urban decay in the primary market area (City of South San Francisco). HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 3 NOVEMBER 2005 -155- CB RICHARD ELLIS CONSULTING CS'RE C8,RICHAAOELLlS II. INTRODUCTION STUDY BACKGROUND The Home Depot, USA, Inc. is proposing to develop a 1 01,272-gross-square-foot retail store with an additional 24,522-square-foot outdoor Garden Center in South San Francisco, California. The proposed store would be located at the site of a closing Levitz Furniture Store just off Highway 101 and Oyster Point Boulevard, at 900 Dubuque Avenue. The Home Depot is in the process of seeking approval from the City of South San Francisco for this store, planned to open in 2007, with the first year of full operation in 2008. There are currently two Home Depot Stores located in proximity to the proposed Home Depot Store: a regular Home Depot Store and a Home Depot Pro store, both in the Town of Colma. In addition, The Home Depot plans to develop two additional stores proximate to South San Francisco - in Daly City and San Francisco. While the Daly City Store is approved and will open in 2006, the San Francisco Store has not yet received a site permit from the City. The purpose of this study is as follows: 1) To probe the potential impacts of the Home Depot Store on existing primary market area retailers, especially home improvement-related stores; 2) To estimate the cumulative impacts of other selected retail projects in the primary and secondary market areas; and 3) To develop an estimate of the extent to which the opening of the Home Depot Store mayor may not contribute to urban decay in the primary market area. This report documents CBRE Consulting's research and analysis probing the aforementioned Issues. STUDY TASKS CBRE Consulting engaged in several tasks to complete this assignment. In brief, these tasks included the following: · Independently verified the sales estimate provided by Home Depot; · Identified major home improvement store retailers in the City of South San Francisco region and beyond; · Identified a primary and secondary market area for prospective Home Depot Store shoppers; · Conducted fieldwork to identify and evaluate existing primary market area home improvement stores; · Collected and analyzed primary market area and secondary market area taxable retail sales; · Conducted retail leakage analyses for the primary market area and the secondary market area; · Estimated the share of the Home Depot Store's sales to be generated by the primary and secondary market areas versus a tertiary market area; HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 4 NOVEMBER 2005 -156- CB RICHARD ELLIS CONSULTING CBRE CBRfCHARD'ELLIS · Estimated the maximum Home Depot Store impacts on existing primary market area retailers; · Estimated the share of the Home Depot Store's sales likely to be new to the primary market area; · Assessed the competitiveness of existing primary market area home improvement stores and likely Home Depot Store impacts; · Identified planned retail projects in the primary market area; · Assessed the cumulative impacts of selected planned comparable retail projects in the primary market area; and · Assessed the extent to which opening of the Home Depot Store mayor may not contribute to urban decay in the primary market area. The detailed findings pertaining to these tasks are reviewed and fully documented In this report, with detailed analytical findings presented in the exhibits in Appendix A. STUDY RESOURCES Many resources were relied upon for this study. These included information provided by Home Depot, USA, Inc.'s 2004 Form 10-K on file with the United States Securities and Exchange Commission. Additional study resources included the City of South San Francisco Planning Department, the Association of Bay Area Governments' (ABAG) 2005 Projections for population and income estimates, and the State of California Board of Equalization for 2003 taxable sales data. Resources prepared by Claritas, Inc., a national provider of demographic and economic data, were relied upon for determining the population and income in North Burlingame, a portion of the secondary market area that included roughly half of the City of Burlingame's population. Home improvement retailers were identified through data generated by InfoUSA. Inflationary adjustments were made based upon the Consumer Price Index for the San Francisco MSA. An industry report entitled "Retail Maxim: Perspectives on Finance and Real Estate" from July 2004 was used for various sales' estimates at retailers in the market area. REPORT ORGANIZATION This report includes six chapters, as follows: I. Executive Summary II. Introduction III. Store Sales Impacts IV. Impacts on Existing Primary Market Area Retailers V. Cumulative Impacts VI. Urban Decay Determination This report is subject to the appended Assumptions and General Limiting Conditions. HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 5 NOVEMBER 2005 -157- CB RICHARD ELLIS CONSULTING C'B:RE CS..RICHAAOELLlS III. STORE SALES IMPACTS CBRE Consulting's summary findings relative to the anticipated retail sales of the proposed Home Depot Store are presented below. These include estimates of the total sales generated by the store, the minimum amount of sales estimated to be net new to the primary market area, and the maximum amount of sales estimated to be diverted away from existing primary market area home improvement stores. The potential for lost sales to be mitigated through population growth and other factors is also presented. STORE LOCATION AND SIZE The proposed Home Depot Store will be located at 900 Dubuque Avenue, which is just off Highway 101 near the Oyster Point Boulevard exit. The site currently houses a Levitz Furniture store. The Home Depot Store is planned to include 101,272 gross square feet of retail store space, plus a 24,522-square-foot outdoor Garden Center, for a total store size of 125,794 square feet. The square foot figures were provided by The Home Depot. PROJECTED HOME DEPOT STORE SALES Total Store Sales CBRE Consulting estimated store sales at the proposed Home Depot Store based on a generally accepted approach in the real estate analysis community, which applies average store sales per square foot to the projected store size. In order to identify anticipated store sales per square foot, assumptions were made based on information provided in the Home Depot, USA, Inc. 2004 Form 10-K. According to the Form 10-K, average sales per square foot of all Home Depot Stores were $375 per square foot in 2004. The Home Depot Store is proposed to open in 2007. For the purpose of this analysis, CBRE Consulting assumes sales in year 2008 dollars to account for the first full year of operation. Stabilized sales are not expected to occur the first year of store operations, but rather the second or third year, which is typical of new retail operations. However, for analytical purposes, these sales are conservatively assumed to occur in 2008. To inflate the estimated sales, CBRE Consulting assumed an annual inflationary adjustment of 3.0 percent from 2004 to calendar year 2008, resulting in an average store sales projection of $422 per square foot in 2008. Assuming the $422 per square foot average sales across all store space, the Home Depot Store's sales would be forecasted in 2008 to total $53.1 million, assuming store stabilization by then. This is an aggressive sales estimate, assuming this proposed store performs at the national average. This may be an overstatement given the number of Home Depot Stores and other major home improvement stores in the general vicinity of South San Francisco. HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 6 NOVEMBER 2005 -158- CB RICHARD ELLIS CONSULTING CBRE cs. RICHARD. EL.LIS Projected Sales by Category For analytical purposes, the total sales estimate is disaggregated into key retail categories. These categories match the taxable retail sales categories reported by the State of California Board of Equalization. While Home Depot's actual sales will be reported by the State Board of Equalization in the Lumber and Building Materials sub-category, the impact of these sales is more appropriately analyzed relative to all the home improvement categories and sub- categories that include stores competitive with or complementary to Home Depot. This includes stores that are classified as home furnishings and appliances, such as carpet and flooring stores. The sales categories and respective shares shown in Exhibits 1 and 2, and summarized in Table 1 below, are figures based upon detailed Home Depot Store sales analysis conducted by CBRE Consulting. For the purpose of this analysis and in keeping with the State Board of Equalization's categorization, garden sales were collapsed into the Board of Equalization's "Other Retail" category. Table 1 Major Sales Categories and Respective Shares Planned Home Depot Store City of South San Francisco Retail Category Home Furnishings and Appliances Building Materials Garden Supplies Total Source: Exhibit 1; and CBRE Consulting. Share 20% 63% 17% 100% Sorting the anticipated Home Depot sales into these categories facilitates detailed economic impact analysis by type of existing home improvement store. The estimation of sales by category for the Home Depot Store is presented in Exhibit 1. The results, summarized in Table 2 below, indicate that the store will have the potential to generate up to $10.6 million in home furnishings and appliances sales, $33.4 million in building materials sales, and $9.0 million in garden supplies sales, comprising the total sales estimate of $53.1 million. Table 2 Estimated Sales by Category Planned Home Depot Store City of South San Francisco 2008 Dollars (Millions) Retail Category Sales Home Furnishings and Appliances $10.6 Building Materials $33.4 Garden Supplies $9.0 Total (1) $53.1 (1) Sales figures may not total due to rounding. Sources: Home Depot, USA, Inc.; Exhibit 2; and CBRE Consulting. The following analysis examines the extent to which the home furnishings and appliances, building materials, and garden supplies sales will comprise new sales to the primary market area and mayor may not impact existing primary market area retailers. HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 7 NOVEMBER 2005 -159- CB RICHARD ELLIS CONSULTING C'BAE CBRICHAROELLIS NET NEW SALES TO THE PRIMARY MARKET AREA CBRE Consulting engaged in several analytical steps to assess the prospective minimum share of the Home Depot Store's sales new to the primary market area and the associated impacts on existing retailers. These steps included estimation of the following: · Primary market area; · Secondary market area; · Share of Home Depot Store sales originating from a tertiary market area; · Primary market area, combined primary and secondary market area, and secondary market area retail leakage and attraction; · Maximum share of Home Depot Store sales likely to be initially diverted from existing primary market area retailers, on a worst case basis; and · Impact of population growth and other factors on sales impacts. The following summary findings are documented in a series of exhibits included In the Appendix, as noted. Primary Market Area Definition CBRE Consulting estimates that the primary market area for retail demand in South San Francisco is the City of South San Francisco, with residents in South San Francisco comprising the largest share of demand for retail sales (See Exhibit 3 for Map of Market Area). Retail sales data analysis indicates that the equivalent of 89 percent of South San Francisco sales are generated by South San Francisco residents, though this demand generation varies widely across retail categories. Whereas resident spending in Apparel Stores greatly exceeds sales captured by local retailers, indicating that South San Francisco residents spend a substantial amount of money outside of South San Francisco on Apparel, resident spending on Home Furnishings and Appliances and Building Materials accounts for 68 and 62 percent of total sales, respectively. The majority of South San Francisco resident spending in most categories, including these home improvement categories, is captured within South San Francisco. Thus, South San Francisco generates many of its own retail sales and is considered its own primary market area for this analysis. Secondary Market Area Definition CBRE Consulting identified a secondary market area for the proposed Home Depot Store. The secondary market area has been generally defined to include the following areas: · The cities of San Bruno and Millbrae; and · The northern portion of Burlingame, or "North Burlingame," whose residents were deemed more likely to travel to South San Francisco's Home Depot than the existing store in the City of San Mateo, while residents of "South Burlingame" were considered more likely to shop at the San Mateo Store. CBRE Consulting defined North Burlingame as the portion of Burlingame north of Broadway, which provides the northernmost point of access to Highway 101 in the City of Burlingame for northbound and southbound drivers. HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 8 NOVEMBER 2005 -160- CB RICHARD ELLIS CONSULTING caRE GS RIGHAROELUS This secondary market area definition reflects the existing nature of retailing in South San Francisco and the location of other major home improvement stores, including Home Depot Stores. CBRE Consulting identified representative major home improvement stores located in the general area, including the San Francisco Peninsula from the southernmost point of San Mateo County, Palo Alto, up north to San Francisco. The boundaries of the secondary market area, as depicted in Exhibit 3, are reflective of the area the proposed Home Depot Store will most likely draw from. It is assumed that residents north of the primary and secondary market areas will be attracted to the existing Home Depot stores in Colma and other home improvement stores in Daly City and San Francisco (including planned Home Depot Stores in both cities); and residents located south of the secondary market area will be attracted to the Home Depot and home improvement stores located in San Mateo. The next nearest Home Depot Stores to South San Francisco are located in San Mateo and Colma, approximately 12 and 8 miles by car from the proposed Home Depot Store site, respectively. CBRE Consulting estimates that primary and secondary market area residents will generate 95 percent of the Home Depot Store's sales in Home Furnishings and Appliances, 75 percent for Building Materials, and 85 percent for Garden Supplies sales. These percentage allocations are derived from the retail leakage analysis findings for the combined primary and secondary market area (see following section).' Residents of an undefined tertiary market area, which could include shoppers traveling along Highway 101 that stop into Home Depot due to its visible location, are estimated to generate the remaining percentage of sales by category. The concept of a percentage share allocation of demand from a market area is consistent with general real estate market analysis principles, which recognize that regional retailers have primary, secondary, and often even tertiary market areas. Geographic Origin of Store Sales Given the stabilized store net new sales estimate of total sales of $53.1 million ($10.6 million in home furnishings and appliances, $33.4 million in building materials, and $9.0 million in garden supplies sales), coupled with the estimated split of sales between the combined primary and secondary market areas and tertiary market area, the Home Depot Store's sales are estimated to originate as follows: Retail Category Home Furnishings and Appliances Building Materials Garden Supplies Total (1) (1) Figures do not total due to rounding. Source: Exhibit 20; and CBRE Consulting. Table 3 Geographic Origin of Sales - Planned Home Depot Store City of South San Francisco - 2008 Dollars (Millions) Primary and Secondary Market Area $10.1 $25.1 $7.7 $42.8 Total $10.6 $33.4 $9.0 $53.1 Tertiary Market Area $0.5 $8.4 $1.4 $10.2 1 The leakage results documented in the next section indicate that the equivalent of 6.9 percent of combined primary and secondary market sales in home furnishings and appliances are generated by non-residents, i.e., the tertiary market area. The comparable figure for building materials is 34.8 percent. Thus the tertiary market area percentages of 5 and 25 percent, respectively, are conservative, because they assume a greater impact to the primary and secondary market areas. The overall market attracts 23.9 percent of sales. If garden supplies sales were to reflect the same level of attraction seen in the market as a whole, it would also attract 23.9 percent of its soles from the tertiary market area. Since CBRE Consulting can not soy for sure that this will occur, it is conservatively assumed that 15 percent of garden supplies sales will be attrocted from the tertiary market area. HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 9 NOVEMBER 2005 -161- CB RICHARD ELLIS CONSULTING CBRE CBRfCHAROELLlS These estimates indicate that a total of $42.8 million in Home Depot Store sales are estimated to be generated from within the store's primary and secondary market areas. Retail Leakage Analysis Approach. CBRE Consulting operates a proprietary model that estimates retail spending potential for a market area (usually a city, grouping of cities, or county) based upon population, income, and consumer spending patterns.2 The model then determines the extent to which a market area is or is not capturing this sales potential based upon taxable sales data published by the State of California Board of Equalization or provided by city tax consultants. In order to determine the anticipated pattern of retail spending for a market area, the model uses a bench marked control area. For the purposes of this study, the control area is the nine-county Bay Area. The purpose of the control area is to control for characteristics unique to individual markets that might artificially inflate or deflate the calculated spending pattern of area residents, such as the City of San Francisco's strong regional draw. Retail categories in which spending is not fully captured are called "leakage" categories, while retail categories in which more sales are captured than are generated by residents are called "attraction" categories. Generally, attraction categories signal particular strengths of a retail market, while leakage categories signal particular weaknesses. Population and Income Estimates. CBRE Consulting's leakage model conducts the analysis for all retail sales in an area, including taxable and nontaxable. However, for purposes of this study, the findings focus on the categories most relevant to the Home Depot Store, e.g., home furnishings and appliances, building materials, and garden supplies sales. For the leakage analysis, different sources were used for population and mean household income figures and projections: the Association of Bay Area Governments (ABAG), Projections 2005, was the source of population estimates and income figures for most areas; and Claritas, a market research and data collection company, was used to estimate the population in North Burlingame. To estimate the population in the northern portion of Burlingame included in the secondary market area definition ("North Burlingame"), whose residents are estimated to be more likely to shop at the South San Francisco Home Depot Store than the existing store in San Mateo, CBRE Consulting extracted Claritas data for the area of Burlingame north of Broadway. According to Claritas, 44.2 percent of Burlingame's residents live north of Broadway. This percentage was multiplied by the total Burlingame population provided by ABAG to estimate North Burlingame's population (see Exhibit 4). The population estimates were projected forward using the compound average growth rate, derived from relevant projected population data. Population estimates and projections were provided for the years 2000, 2005, 2010, 2015, and 2020; intermediary years were calculated. Population projections predict modest growth in the primary and secondary market areas for the years under review. In the primary market area (South San Francisco), approximately 800 new residents are expected between 2005 and 2008, representing total growth of slightly more than one percent. The combined primary and secondary market area populations are projected to grow at an annual rate of roughly 0.5 percent between 2005 2 Much of the analysis is predicated upon spending patterns by household income per the United States Department of labor, Bureau of labor Statistics, Consumer Expenditure Survey. HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 10 NOVEMBER 2005 -162- CB RICHARD ELLIS CONSULTING CBRE CBRICHARO.ELLlS and 2010, with 3,150 new residents anticipated for that time period. With much of the developable land in the market areas already built out, most of the new population will be a result of infill projects throughout the four cities included in the market areas. Estimated Garden Supplies Sales. While the Board of Equalization presents Home Furnishings and Appliances and Building Materials in their own distinct retail category for each city in California, garden supply stores are captured within the Other Retail Stores category. In order to estimate garden supply sales, CBRE Consulting obtained a more detailed city-level report from the Board of Equalization that reports actual sales in the Farm and Garden Supply subcategory. However, this report is also based in part on data subject to the confidentiality policies as discussed in the next paragraph, and as such, garden supply sales were suppressed in each component city of the primary and secondary market areas. Therefore, CBRE Consulting developed an approach to estimating sales in garden supply stores, and Exhibit 5 details how these estimates were derived. While this estimate ultimately indicates that sales in comparable stores total $1.8 million per year, it is unlikely that the stores operating in South San Francisco provide comparable products or services to those offered at the Garden Center of Home Depot. For instance, two of the three garden supply stores identified in South San Francisco specialize in statues and lawn ornaments; while Home Depot does carry similar products, it is unlikely that they would be of the same quality or offer the same services that would compete with stores dedicated entirely to statuary. Therefore, the products sold by these stores are only minimally comparable to those offered at Home Depot. Analytic Adjustment Required Due to Confidentiality. The leakage analysis conducted for the combined primary and secondary market areas involved an analytic adjustment necessitated due to data limitations. When the Board of Equalization publicly reports data, it will not report data for a sales category if it does not meet certain disclosure requirements. For example, if there are only one or two stores in a category or the category sales are dominated by one retailer, then the sales in that category will not be released. Instead, they will be combined with the sales in another category. This issue arose when estimating relevant retail category sales in several of the areas included in the market areas, whose leakage analyses can be found in Exhibits 8 through 19. In the case of the City of San Bruno, the Board of Equalization combined the "Building Materialsl Farm Implements" sales with "Other Retail Stores." Exhibit 1 0 details how CBRE Consulting made adjustments to avoid overstating the other retail category and understating other categories. In Millbrae, the Board of Equalization combined the "Home Furnishings and Appliances" sales with "Other Retail Stores;" Exhibit 12 details how CBRE Consulting made adjustments in this case. Analytic Adjustment Made for North Burlingame. CBRE Consulting devised an approach to estimate sales in North Burlingame, since the Board of Equalization's taxable sales data only comes at the entire City level. Using an estimate of business concentration in Burlingame, CBRE Consulting determined that 22.8 percent of retail businesses were in North Burlingame. Thus, CBRE Consulting assumed that 22.8 percent of Burlingame's retail sales occur in the north, and multiplied the total sales figures by the 22.8 percent factor to determine the sales in North Burlingame. Sales Adjustment For Levitz Closure. CBRE Consulting made adjustments to the projected leakage findings to account for the closure of Levitz, located at the site of the proposed Home Depot (900 Dubuque Avenue) during 2005. Since the benchmark Board of Equalization data are from 2003, the store's sales are included in the preceding results but will be removed by HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 11 NOVEMBER 2005 -163- CO RICHARD ELLIS CONSULTING CBRE CSR'ICHARO.ELLIS 2008. Exhibit 6 estimates the store's sales as $32.0 million in 2008 dollars. This sales estimate is subsequently factored into the 2008 leakage model results in Exhibit 9. Because the store is a furniture store, only the home furnishings category is impacted. Findings. Two leakage analyses were conducted to assess the state of the primary market area's (City of South San Francisco) retail climate. The first leakage analysis, presented in Exhibit 7, examines the primary market area's sales performance relative to its own population base in order to assess the degree to which it is serving the retail needs of its resident population. In this analysis, South San Francisco comprises the primary market area. A second leakage analysis, displayed in Exhibit 8, examines the sales performance of the Home Depot Store's combined primary and secondary market area. The leakage results for the primary market area (City of South San Francisco) and the combined primary and secondary market area are located in the Appendix (see Exhibits 7 through 9 for primary market area results and Exhibits 10 through 19 for secondary market area constituent city and combined primary and secondary market area results). For benchmark purposes, detailed results for all retail categories are presented for each area, os well as results specific to the home furnishings and appliances, building materials, and other retail stores retail categories to be represented at the Home Depot Store. The leakage analyses were conducted using 2003 sales data and extrapolated to 2008, reflecting the sales estimates for the Home Depot Store upon completion. The 2003 data were used because they reflect the lost full year for which retail sales data were available from the Board of Equalization at the time the study was conducted. The per capita expenditure trends from 2003 were assumed to be equivalent to the per capita expenditure trends for 2008, with adjustments for interim population growth and inflation. The purpose of this adjustment was to maximize comparison with the Home Depot Store's anticipated primary and secondary market area sales in 2008 dollars. The primary market area (City of South San Francisco) is generally typified by attraction, though several categories do experience leakage. All of the home improvement-related retail categories experienced significant attraction in sales, while Apparel, Food Stores, Eating and Drinking Places, and Auto Dealers and Auto Supplies all experienced leakage. On a percentage basis, 11 percent of South San Francisco sales were attracted from outside of the City, including 32 percent of Home Furnishing and Appliances sales and 38 percent of Building Materials sales (see Exhibit 8). Spending by primary market area (City of South San Francisco) residents represents an equivalent of 89 percent of the total retail spending in the primary market area. This substantiates the definition of the city as the primary market area, as the source of the majority of the city's retail sales. Furthermore, the combined primary and secondary market area continues to have attraction and generate approximately 24 percent of all retail spending from outside the market area. In the relevant categories to Home Depot, the primary and secondary market area attracts 6.9 percent of its Home Furnishing and Appliances sales and 34.8 percent of Building Materials sales from outside the combined market areas (see Exhibit 18). IMPLICATIONS FOR NET NEW SALES GENERATION Sales Impacts on Existing Stores. CBRE Consulting has developed an analytic approach that estimates the maximum impact of a store such as the proposed Home Depot Store on existing retailers. For this analysis, the approach assumes that if the Home Depot Store is adding sales to a category in an amount greater than any primary or combined primary and secondary HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 12 NOVEMBER 2005 -164- CB RICHARD ELLIS CONSULTING CBRE C8RICHARD.ELLIS market area leakage in the category, then at worst, the amount of Home Depot Store sales in that category in excess of any leakage will be diverted away from existing primary market area retailers in proportion to the primary market area retailers' contribution to combined primary and secondary market area sales. In other words, the negative impacts of the Home Depot Store's sales will be spread proportionally among all the like retailers in the combined primary and secondary market area. This diversion estimate, prepared for analytic purposes, assumes no recovery among the impacted retailers. This approach is analytically displayed in Exhibits 20 and 21, which takes into account the following fadors for the three most relevant retail sales categories: . Home Depot Store sales by major category; . Estimated Home Depot Store sales by major category generated by combined primary and secondary market area residents; . The primary market area's (City of South San Francisco) share of adjusted combined primary and secondary market area sales based upon the historic distribution of sales; . The share of Home Depot Store sales estimated, at maximum, to be diverted from existing primary market area (City of South San Francisco) retailers upon stabilization; and . The minimum sales achieved by the Home Depot Store not diverted away from existing primary market area (City of South San Francisco) retailers. This is a conservative approach, in that it assumes there will be no net increase in primary and secondary market area sales after the Home Depot Store achieves market stabilization aside from new resident spending. Such increases commonly happen as residents shift their shopping patterns or increase their expenditures based upon the enhanced availability of consumer goods. This is why CBRE Consulting considers the resulting existing retailer impacts maximum estimates upon stabilization, documented in Exhibit 21 and summarized below in Table 4, with the resulting net new sales to the City of South San Francisco minimum estimates. Retail Category Home Furnishings and Appliances Building Materials Garden Supplies Total (1) (1) Figures may not total due to rounding. Source: Exhibits 20 and 21; and CBRE Consulting. Table 4 Maximum Retailers Sales Impads Upon Stabilization Planned Home Depot Store City of South San Francisco 2008 Dollars (Millions) Maximum Sales Diverted From South San Francisco Retailers $0.0 $6.6 $2.4 $9.0 Home Depot Sales $10.6 $33.4 $9.0 $53.1 Minimum Net New Sales to South San Francisco $10.6 $26.9 $6.6 $44.1 These results indicate that, at worst, $9.0 million in sales captured by the Home Depot Store upon stabilization will comprise sales diverted away from existing City of South San Francisco home improvement stores. Thus, the balance of new sales, comprising $44.1 million, is the minimum estimate of Home Depot Store sales new to South San Francisco. These figures are conservative and are presented as an analytical benchmark. They are considered conservative for several reasons. Foremost, they assume the maximum diversion HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 13 NOVEMBER 2005 -165- CB RICHARD ELLIS CONSULTING C;S'RE CB,RICHARDELLIS away from existing retailers upon stabilization of the Home Depot Store. Thus, they do not take into account any prospective market corrections or enhancements following the introduction of the Home Depot Store to the marketplace, including competitive retailer repositioning. In addition, as stated earlier, the Home Depot Store sales estimate is aggressive, and assumes the store performs at the national average. If sales are lower, reflective of market penetration of other Home Depot Stores and major home improvement stores, then the sales impacts on primary market area retailers will be commensurately lower. Implicit in the sales impact methodology is the assumption that the South San Francisco Home Depot Store will divert sales away from existing Home Depot Stores in Colma and San Mateo, the stores closest to primary and secondary market area residents. Home Depot's annual report indicates that new stores often "cannibalize" sales from existing stores.3 This is done strategically by Home Depot to "enhance service levels, gain incremental sales and increase market penetration."4 Even though South San Francisco is characterized by sales attraction, the methodology assumes that a portion of the sales achieved at neighboring city Home Depot Stores comprise unmeasured leakage from the primary and secondary market areas. Thus, the recapture of these sales is deducted in Exhibit 21 from the analytically derived maximum sales impacts on existing primary market area retailers, as these sales essentially comprise new sales to the primary market area in the form of recaptured leakage. Based on information in Home Depot's annual report, it is assumed that 10 percent of the new store's sales, or $5.3 million, will comprise these recaptured sales from other Home Depot Stores. It is important to note that Home Depot's 2004 Annual Report indicates that 17 percent of its sales in certain new locations were "cannibalized" from existing stores, but CBRE Consulting considered the cumulative effect of three new Home Depot Stores planned proximate to the primary and secondary market areas and determined that 17 percent cannibalization from each store would be too aggressive (South San Francisco, San Francisco Bayshore, and Daly City). If this 17 percent figure were applicable to Home Depot's three new Bay Area stores, these stores could cannibalize as much as 51 percent of sales from the existing stores in Colma, which does not seem reasonable. Therefore, CBRE Consulting assumed that no more than 30 percent of Colma's sales would be cannibalized by the three new stores, and divided this number equally among the new stores. Therefore, the 10 percent figure used for South San Francisco is conservative, given that sales will also likely be diverted from Home Depot's San Mateo store as well. The maximum sales diverted represent just 7.4 percent of the estimated combined total home furnishings and appliances, building materials, and garden supplies sales in South San Francisco in 2008 (see Exhibit 22). Specifically, the maximum figure of $6.6 million in diverted Building Materials sales comprises 6.6 percent of South San Francisco Building Materials sales, estimated at $99.9 million in 2008. The maximum figure of $2.4 million in diverted garden supplies sales comprises 132.7 percent of South San Francisco Garden Supplies sales, estimated at $1.8 million in 2008. This does not necessarily mean that the three existing garden supply stores would close as a result of Home Depot's opening, however, given the specific nature of those stores. For instance, two of the garden supply stores predominantly sell custom-made lawn ornaments and statues, and could be differentiated enough to avoid direct competition with the kinds of garden products offered at Home Depot. Finally, there will be no sales diversion for Home Furnishings and Appliances sales, given the unabsorbed leakage in that category. These estimates assume the Home Depot Store achieves stabilization 3 The Home Depot, 2004 Annual Report, page 16. 4 Ibid. HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 14 NOVEMBER 2005 -166- CB RICHARD ELLIS CONSULTING CBRE GSRICHAROELLlS in 2008, which is aggressive, given that the earliest the store could open given the planning process is 2007 and that stabilization is unlikely to occur before 2009 at the earliest (i.e., two years). Thus, by the time the Home Depot Store achieves stabilization, these sales percentages will be lower reflecting a new sales base due to an extra year of demand generation (because initial sales will likely be less than shown in this conservative estimate). Mitigating Effects of Population Growth and Other Factors. Despite the size of the analytically-derived maximum sales estimates summarized in Table 4, they will likely lessen by the time the Home Depot Store achieves stabilization after about two to three years. Factors contributing to this finding include the primary market area (City of South San Francisco) and secondary market area's anticipated population growth, and the demonstrated ability of retailers to generally respond to increased levels of competition. The greatest mitigating factor to any potential negative Home Depot Store impacts is usually the anticipated population growth and the associated spending of these new residents. However, in the case of the primary and secondary market areas for the South San Francisco store, residential development and population growth are not expected to be strong between 2008 and 2013, growing at a rate of between 0.5 and 1.0 percent per year. For example, between 2008 and 2013, the primary market area's (City of South San Francisco) population is anticipated to grow by 2,483, with primary and secondary market area population growth estimated at 3,230 (see Exhibits 23 and 24). This is due to the built out nature of the north San Francisco Peninsula, with little developable land left for residential, or commercial, development. Thus, given the estimated per capita spending for the primary market area (City of South San Francisco) and combined primary and secondary market area residents, and the primary market area's (City of South San Francisco) historic share of combined primary and secondary market area sales, this new population is estimated to generate the following new sales by 2013: Retail Category Home Furnishings and Appliances Building Materials Garden Supplies Total Source: Exhibits 23 and 24; and CBRE Consulting. Table 5 Cumulative New Population Retail Demand Primary Market Area and Combined Primary and Secondary Market Area 2008 - 2013, in 2008 Dollars (Millions) Primary Market Area (City of South San Francisco) $1.4 $2.5 $0.1 $4.0 Secondary Market Area $0.5 $1.2 $0.0 $1.7 Estimated Primary Market Area Capture $0.4 $0.9 $0.1 $1.5 These figures indicate that by 2013, primary market area (City of South San Francisco) retailers are estimated to capture an additional $0.4 million in Home Furnishings and Appliances sales, $0.9 million in new Building Materials sales, and $0.1 million in garden supply store sales. These figures compensate for some of the $6.6 million in Building Materials sales, some of the $2.4 million in garden supply sales estimated to be diverted away from primary market area (City of South San Francisco) retailers as a result of the Home Depot Store sales, and add an additional $0.4 to the demand for Home Furnishings and Appliances sales. The extent to which these diverted sales will impact existing retailers will depend upon many factors, such as their market niche, hours of operation, market strength, store and HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 15 NOVEMBER 2005 -167- CB RICHARD ELLIS CONSULTING CBRE ca. RICHARD El..:US management quality, and location relative to the Home Depot Store. Many of these factors are presented in the following chapters, with the Impacts on Existing Primary Market Area (City of South San Francisco) Retailers Chapter in particular discussing likely impacts on the primary market area's (City of South San Francisco) home improvement stores. HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPAOS 16 NOVEMBER 2005 -168- CB RICHARD ELLIS CONSULTING C:'BRE C8RlCHARD ELLIS IV. IMPACTS ON EXISTING PRIMARY MARKET AREA (CITY OF SOUTH SAN FRANCISCO) RETAILERS The analytical findings presented in the previous chapter indicate that, at worst, up to $6.6 million in building materials sales and $2.4 million in garden stores sales might be initially diverted away from existing primary market area (City of South San Francisco) retailers following the development of the Home Depot Store, with no sales diversion in Home Furnishings and Appliances stores. This chapter in turn probes the extent to which these maximum sales impacts might or might not impact existing home improvement stores based on their store characteristics. COMPETITIVE HOME IMPROVEMENT STORE SALES The leakage analysis and subsequent adjustment indicated that in 2008 dollars, a maximum of $6.6 million in Building Materials sales and $2.4 million in Garden Supply sales may be diverted away from existing home improvement stores in the City of South San Francisco; no diversion is expected for Home Furnishings and Appliances sales, given that there is sufficient leakage to absorb Home Depot's impact in that category. This is the equivalent of 6.6 percent and 132.7 percent, respectively, of the estimated 2008 category retail sales. Such a high sales diversion in Garden Supply Stores suggests that the Garden Supply category is underseved in the primary market area (City of South San Francisco), and these sales would likely represent new sales to the primary market area diverted away from stores outside the primary market area. Additionally, these levels of diverted sales assume the Home Depot Store achieves full stabilization in 2008, which is unlikely. There are several major home improvement stores existing in South San Francisco. These include Orchard Supply Hardware, hardware stores such as Ace Hardware and True Value Hardware, floor covering stores such as Color Tile, paint stores like Kelly Moore, and lumber yards such as South City Lumber (part of Ace Hardware). Each of these stores have already withstood the competitive influence of each other and other home improvement stores in South San Francisco, which suggests a strong market for home improvement goods. Generally speaking, South San Francisco is split by Highway 101 (Hwy 101), with a large industrial park comprising most of the area to the east of Hwy 101 and residential and commercial development concentrated to the west of Hwy 101. Most retail businesses located east of Hwy 101 are not operating in traditional retail space, with primarily industrial development on that side of town. A notable exception is Levitz, which sits along Hwy 101 on the east side. Downtown South San Francisco, west of Hwy 101, features a strip of shops and restaurants including two convenience-oriented hardware stores, Grand Avenue True Value Hardware and Frank Giffra and Sons Hardware. An additional commercial corridor runs along EI Camino Real, with a concentration of somewhat dated retail strip centers and fast food restaurants south of Orange Avenue, leading up to a newer Costeo store north of Orange Avenue. There is a strip center in the extreme north part of town on Hickey Boulevard that houses a Kelly Moore Paints store, and a large shopping center on Gellert Court on the west side of town, which is anchored by Orchard Supply Hardware. HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 17 NOVEMBER 2005 -169- CB RICHARD ELLIS CONSULTING CBRE CBR1CHARDELLlS HOME DEPOT STORE IMPACTS Overall Impact The preceding analysis estimated a maximum sales impact on City of South San Francisco home improvement related stores of a total of $9.0 million. Without access to confidential actual sales figures and comparing these to national and regional sales figures, it is not possible to establish the relative performance of the home improvement stores in South San Francisco. Given that an average sales per square foot for building materials is $372 in 2008, loss of support for up to approximately 30,400 square feet of existing store space could occur, until such time as this level of demand is recouped through new market area population growth and associated demand. This impact is likely to be spread evenly among existing stores; in the possible event that one small store were to close, the sales would likely be equally re-distributed among the remaining stores. The cumulative retail demand estimates due to population growth documented in Exhibit 24 indicate that $0.4 million of South San Francisco Home Furnishings and Appliances sales, $0.9 million of South San Francisco Building Materials sales (or approximately one quarter of the estimated diverted sales), and $0.1 million of South San Francisco Garden Supply stores sales will be generated by new growth in five years following the assumed 2008 full year operation of the Home Depot Store. Cumulative demand figures could be higher if the City of South San Francisco increases its share of secondary market area sales, if sales increase due to the added attraction of the Home Depot Store, and/or if population growth exceeds the projections. However, if stores cannot withstand a temporary downturn in sales, it is possible that one or more existing home improvement stores may close. Without access to confidential individual store sales data, it is difficult to identify which store(s) might be most at risk of closing if this outcome is realized. Stores not as susceptible to negative impacts from the Home Depot Store, and thus less at risk of closing, include stores with a strongly defined specialty or niche, offering services or levels of service not available at Home Depot. Store Impacts In building materials sales, the Home Depot sales category with the greatest proiected primary market area impact, Home Depot will likely capture a significant amount of its diverted sales from the existing Home Depot Stores in Colma and San Mateo, and possibly the Lowe's store in San Bruno. The following discusses other prospective store impacts. South City Ace Hardware and Lumber is located in central South San Francisco at the intersection of Railroad and Spruce avenues. CBRE Consulting observed moderate-to-high shopper volume when it visited the store at mid-morning on a weekday. Its product offerings cater to both contractors and do-it-yourselfers, as it includes a sizable lumber yard in addition to a full-sized hardware store. Any impact on its sales from the presence of a large national retailer in the market area has probably already been fully manifested in its sales due to the presence of Lowe's Home Improvement Warehouse in the secondary market area, but given the expected primary market area sales diversion from Home Depot, it is likely that South City Ace Hardware and Lumber would see a sales impact from Home Depot's opening. However, due to its presence as an established market leader, it likely has a loyal clientele who would continue to shop at Ace even after Home Depot enters the market. Moreover, hardware stores HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 18 NOVEMBER 2005 -170- CB RICHARD ELLIS CONSULTING CBRE CB.RfCHARDELLlS like Ace often serve a convenience-oriented shopper looking for a few items in a quick trip the store, which is not typical of shopping trips to Home Depot. Therefore, it is not likely to close. The OSH store is located in a newer looking shopping center several miles away from the proposed Home Depot, west of Highway 280. Its location is sufficiently removed from the main commercial corridors of South San Francisco, and it likely has its own market niche based on its remote location. As such, it is also not likely to be materially impacted by a Home Depot Store. The stores currently offering garden supplies in South San Francisco include A Silvestri Garden Ornaments and Giannini Garden Ornaments. Each is located in an industrial area in the southern part of South San Francisco, near the City's border with San Bruno, and removed from the commercial centers downtown and along EI Camino Real. Their product offerings are mostly large statues and garden ornaments that tend to be more expensive and rarefied than the similar categories of products offered at Home Depot. Further, they do not offer certain items available in Home Depot's garden center, including plants, fertilizers, and gardening tools. Stores of this nature appear to cater to a larger market area than Home Depot, given their obvious appeal to a specific niche in the home improvement market. For these reasons, it is not likely that they would compete directly with, and therefore would not be materially impacted by, a Home Depot Store in South San Francisco. The likely impacts on smaller specialty stores cannot be generalized across the primary market area because of a lack of data on actual sales performance and the wide range of specific circumstances in which they operate. However, given the potential diverted sales results identified in this report, it is possible that one or more of these small specialty stores may close as a result of Home Depot's opening. Stores that offer high quality products, good service, and large selection for items such as paint, flooring, appliances, and garden supplies may also be impacted but should remain competitive. Retailers often demonstrate their flexibility in responding to competitive threats by refocusing product lines, changing product mixes, or enhancing customer service. Previous CBRE Consulting case study research indicated this approach has benefited other independent home improvement retailers in communities when new area Home Depot stores opened. HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 19 NOVEMBER 2005 -171- CB RICHARD ELLIS CONSULTING CBRE CBRICHARO.ELLIS V. CUMULATIVE IMPACTS An additional charge of this study was to analyze the Home Depot Store in the context of other planned home improvement stores in the market areas. Because of increasing concerns regarding cumulative economic impacts of major retail developments, this chapter includes analysis of select other planned retail projects in the primary market area (City of South San Francisco). IDENTIFIED PROJECTS CBRE Consulting researched planned retail projects with identified tenants in South San Francisco (see Exhibit 25). The only proposed project in the primary market area that could compete with Home Depot is a Lowe's store planned for the 600 block of Dubuque Avenue, down the street from the proposed Home Depot. According to South San Francisco City Planning, both projects are at a similar stage of development and would open at roughly the same time. Therefore, it is assumed that Lowe's would be operational in 2008, the same year of the planned Home Depot Store. PRIMARY MARKET AREA CUMULATIVE SALES IMPACTS Exhibits 26 through 28 summarize the maximum diverted sales impacts resulting from the development of the proposed Home Depot Store as well as the proposed Lowe's store, using the same methodology as for just the Home Depot Store. These results, displayed in Table 6, indicate that assuming the development of Home Depot and Lowe's, at worst, $18.0 million in sales will be diverted away from existing primary market area retailers (see Exhibit 28). The diverted sales impact estimate is $18.0 million in Building Materials stores. If the Home Depot Store achieves total sales volume less than the level projected in this report, the cumulative sales impacts will be less. Type of Retailer Home Furnishings and Appliances Building Materials Garden Supplies Total (1) (1) Figures may not total due to rounding. (2) See discussion below. Source: Exhibit 28; and CBRE Consulting. Table 6 Maximum Cumulative Diverted Sales Planned Home Depot and Lowe's Stores City of South San Francisco 2008 Dollars (Millions) Maximum Sales Diverted from PMA Retailers $0.0 $18.0 N/A (2) $18.0 New PMA Sales Base $32.0 $126.8 $8.4 $167.2 Diverted Sales as a Percent of Estimated Sales 0.0% 14.2% N/A 10.8% Garden Supplies. Since the Garden Supply stores impact analysis results indicate that more than 100 percent of sales would be diverted away from primary market area (City of South HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 20 NOVEMBER 2005 -172- CB RICHARD ELLIS CONSULTING C::BiRE caRICHARD ELLIS San Francisco) retailers, it suggests that the Garden Supply category is probably served adequately in South San Francisco. However, due to data limitations explained in Chapter III, as well as the probable disparity between available goods from existing garden supply retailers and those from Home Depot, it is difficult to assess the exact extent to which existing retailers would be impacted by Home Depot's Garden Supply sales. Any impact that does occur is likely to be spread evenly among existing stores; in the possible event that one small store were to dose, the sales would likely be equally redistributed among the remaining stores. Moreover, it is likely that the entry of Home Depot and Lowe's would create sales attraction in this category to South San Francisco, but the extent of such attraction is difficult to quantify. Building Materials. The estimated $18.0 million in maximum diverted sales is equivalent to 78,000 square feet of space devoted to building materials sales assuming the standard $300 per square foot in sales, inflated to 2008 dollars at 3.0 percent per year. Limitations on population growth in the primary and secondary market areas make it unlikely that this much demand could be generated through population growth. Thus, it appears approximately 78,000 square feet of space devoted to building materials in the primary market area, at a maximum, is at risk of dosing. However, as with Garden Supply category, it is likely that any impact that does occur among building materials stores is likely to be spread evenly among existing stores. However, in the possible event that perhaps one store doses, the sales would likely be equally redistributed among the remaining stores. The next chapter will explore the extent to which the impacts of the proposed Home Depot Store could result in urban decay in the primary market area. HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 21 NOVEMBER 2005 -173- CB RICHARD ELLIS CONSULTING CBRE CBRICHARD'ELLIS VI. URBAN DECAY DETERMINATION The purpose of this chapter is to assess the degree to which development of the Home Depot Store will or will not contribute to urban decay in the primary market area (City of South San Francisco). This includes impacts associated with the cumulative impacts of the Home Depot Store and other planned primary market area retail developments. Urban decay could theoretically result from development of the Home Depot Store and other known primary market area planned retail developments, but only if they cause other stores to close and real estate market forces prevent those spaces from being re-tenanted and they subsequently fall into physical disrepair. This chapter discusses market findings relative to what these impacts might be and their blight implications. STUDY DEFINITION OF URBAN DECAY For the purpose of this study, urban decay is defined as physical deterioration that is so prevalent and substantial it impairs the proper utilization of affected real estate or the health, safety, and welfare of the surrounding community. Physical deterioration includes, but is not limited to, abandoned buildings and industrial sites, boarded doors and windows, extensive gang or offensive graffiti painted on buildings, dumping of refuse or overturned dumpsters on properties, dead trees or shrubbery and uncontrolled weed growth or homeless encampments. ApPROACH TO DETERMINING URBAN DECAY POTENTIAL CBRE Consulting engaged in several tasks to assess the probability of urban decay ensuing from development of the Home Depot Store or the identified cumulative store impacts. These tasks revolved around assessing the potential for closed primary market area (City of South San Francisco) store spaces, if any, to remain vacant for a prolonged period of time or to be leased to other retailers within a reasonable marketing period. Several commercial real estate brokers active in the primary market area (City of South San Francisco) were contacted regarding the health of the area's retail market and the depth of prospective demand for retail space. The purpose of this research was to determine if sufficient retailer demand exists to absorb vacated space in the event existing primary market area (City of South San Francisco) retailers close due to the negative impacts of the Home Depot Store. RETAILER DEMAND IN THE PRIMARY MARKET AREA (CITY OF SOUTH SAN FRANCISCO) CBRE Consulting conducted telephone interviews with three real estate brokers experienced in the South San Francisco market. In the course of the interviews, the brokers shared some proprietary information with CBRE Consulting. As a professional courtesy, and upon their request, the overall gist of this information is summarized below, but not the detail. HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 22 NOVEMBER 2005 -174- CB RICHARD ELLIS CONSULTING CBRE CB RICHARD ELLIS Market Characterization The real estate brokers contacted for this study characterized the South San Francisco retail market as a second-tier market, with a lack of new space and generally lower rental rates than surrounding areas. They indicated that the retail market is considered less desirable than the neighboring communities of San Bruno, Burlingame, Colma, and Daly City. Much of the retail space is owned by just a few owners, and deferred maintenance on existing space is noticeable when driving through the market. One broker mentioned that South San Francisco was considered an unattractive address for retailers, while indicating that it lacked "destination" retail establishments, with the notable exception of Costco on EI Camino Real. For the most part, retailers in South San Francisco are "mom-and-pop" shops with local ties. Retailer Interest According to the real estate brokers interviewed, there is some demand for South San Francisco space by national retailers, particularly those interested in finding "value" locations with lower rents. One broker explained that South San Francisco is a market where value- based chains, such as Ross and Marshall's, would be interested in locating if the appropriate infill site could be found. The same broker indicated that the City's location between San Francisco and Burlingame/San Mateo made it unlikely that high-end retailers would be interested in the City. Retenanting Potential CBRE Consulting observed only one large vacancy in the South San Francisco market, an old Bell Market grocery store in a strip center at the corner of EI Camino Real and Westborough Boulevard. While this space has been vacant for an unknown amount of time, it was recently sold to an Asian-themed grocery store operator for re-use as a grocery store. According to brokers familiar with the market, retenanting vacant spaces in South San Francisco can be challenging due to the market's status as a second-tier location. One broker relayed his experience with a kidney dialysis center, which leased about 10,000 square feet in an existing shopping center in 2001. He suggested that this type of use would not typically occupy space in a shopping center in more desirable retail locations. Therefore, if any vacancies in traditional retail spaces were to result from Home Depot's opening, it could be difficult to find tenants to occupy the vacant space given the relative lack of demand and generally lower- quality product in South San Francisco. However, there is little precedent for re-tenanting large vacancies due to South San Francisco's lack of retail supply and low vacancy rate, leaving the prospects for such re-tenanting unclear. It should be noted that South San Francisco could become a more attractive location for retailers in the future if current development proposals come to fruition. In addition to Home Depot, Lowe's Home Improvement Warehouse is seeking approval in South San Francisco, and the Terrabay Specific Plan is expected to include substantial new retail square footage. If these projects are built, they could upgrade the City's image as a retail site and attract additional retailers to South San Francisco. URBAN DECAY CONCLUSION CBRE Consulting's retail market research indicated that the retail market in South San Francisco is challenged by a lack of high-quality space or destination tenants, two factors that have caused national retailers to locate in nearby cities with better space and a more HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 23 NOVEMBER 2005 -175- CB RICHARD ELLIS CONSULTING CBRE CB RICHARD ELLIS established retail landscape. In fact, many businesses in South San Francisco categorized as "retailers" were actually operating in light industrial space east of Hwy 101. This suggests that any retail spaces potentially vacated as a result of the Home Depot Store could sit vacant for some time before being re-occupied. It is possible, however, that value-based national retailers could seek out opportunities in South San Francisco where they could get more favorable lease rates than in neighboring cities. Further, the addition of Home Depot could serve to create a more favorable view of South San Francisco's retail market and help to attract additional retailers to South San Francisco. Additionally, the lack of large aggregations of retail space in South San Francisco (for instance, many retail businesses are operating in traditional industrial/flex space) makes it unlikely that large blocks of vacant space would result from the opening of Home Depot. In other words, smaller blocks of vacant retail space interspersed with other types of active/occupied buildings would be highly unlikely to add to urban decay or deterioration. South San Francisco has the largest industrial sub-market on the San Francisco Peninsula, with more than 24 million square feet of industrial space and a strong demand from the biotechnology sector. To the extent that the sales impacts discussed in this report cause businesses operating in industrial space to close, it is likely that industrial tenants could be found for those vacancies. Thus, CBRE Consulting concludes that the development of the Home Depot Store and the identified cumulative impacts will not contribute to urban decay in South San Francisco. HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 24 NOVEMBER 2005 -176- CB RICHARD ELLIS CONSULTING CBRE CB RICHARD ELLlS ASSUMPTIONS AND GENERAL LIMITING CONDITIONS Field work for this study was completed in July 2005. Accordingly, CBRE Consulting assumes no responsibility for market events pertinent to the primary or secondary market areas or the proposed Home Depot site occurring after that date. CBRE Consulting has made extensive efforts to confirm the accuracy and timeliness of the information contained in this study. Such information was compiled from a variety of sources, including interviews with government officials, review of City and County documents, and other third parties deemed to be reliable. Although CBRE Consulting believes all information in this study is correct, it does not warrant the accuracy of such information and assumes no responsibility for inaccuracies in the information by third parties. We have no responsibility to update this report for events and circumstances occurring after the date of this report. Further, no guarantee is made as to the possible effect on development of present or future federal, state or local legislation, including any regarding environmental or ecological matters. The accompanying projections and analyses are based on estimates and assumptions developed in connection with the study. In turn, these assumptions, and their relation to the projections, were developed using currently available economic data and other relevant information. It is the nature of forecasting, however, that some assumptions may not materialize, and unanticipated events and circumstances may occur. Therefore, actual results achieved during the projection period will likely vary from the projections, and some of the variations may be material to the conclusions of the analysis. Contractual obligations do not include access to or ownership transfer of any electronic data processing files, programs or models completed directly for or as by-products of this research effort, unless explicitly so agreed as part of the contract. This report may not be used for any purpose other than that for which it is prepared. Neither all nor any part of the contents of this study shall be disseminated to the public through publication advertising media, public relations, news media, sales media, or any other public means of communication without prior written consent and approval of CBRE Consulting. HOME DEPOT SOUTH SAN FRANCISCO ECONOMIC IMPACTS 25 NOVEMBER 2005 -177- EXHIBIT 1 ESTIMATED MAJOR PRODUCT LINES AND DISTRIBUTION OF SALES PROPOSED HOME DEPOT STORE CITY OF SOUTH SAN FRANCISCO 2008 Home Furnishings and Appliances Flooring Fashion Plumbing, Cabinets Appliances Building Materials Lumber and Building Materials Hardware Plumbing and Electrical Supplies Paint, Glass, and Wallpaper Garden Supplies Nursery/Outdoor Fashion 20% Carpet, vinyl, laminate, hardwood, tile flooring, ceiling tiles Cabinets, countertops, vanities, bath fixtures Small and major home appliances 63% Dimensional lumber, siding, fencing, roofing, insulation, concrete Fasteners, bolts Pipes, faucets, water heaters, fixtures, bulbs, ceiling fans Paint, caulk, prep tools and supplies, wallpaper, drapery hardware 17% Plants, fertilizer, patio supplies Notes: (1) As categorized by the California State Board of Equalization. (2) Estimates made by CBRE Consulting based on previously-provided sales information from Home Depot. Sources: Home Depot, USA, Inc.; and CBRE Consulting. P:\2005\ 1005060 Home De ot South SF\Exhibits\ E - , SSF Leaka -178- wO D/:u OV) 1-- V)U V)I-Z wO~V) ~0...LL.D/: NV)~Z:S I- ....I ai@~~O :E~OJ:O C;5~J:5~ i=000 V)WV)N WV) OLL. 0...0 ~~ o...U co -0 o ~ CO 0, M 10 ~ "O'o~-oM -o1O~100'0 NO-o-oIO ,......... ,.....' M.... ",'" M'" "00'0"""" NO'o""""""" ",,' -0- a:i "",,' ",,- ~~~~"" ~ ~ N N """" ~ ~~ ~~I?ft. 10""-00'0"" Nr-I""""" '-0 """" 0'0 " 10' N III III .!!2 ;: 0 0.. -t: 0.. Q) ~ 0) ::>0. & 1 ~]. ~ 0) .~ 0 c c: -t~ U "5 ...!!2-o >-I/)~ W c: ..co::> III .;: CC -0 0 CDO)-o c:- o.....c: o~_ V)..g 0 ~ O)..Q .E -o...c;; Q; O.S: 0 .9 1Il0)-O~-O -JJ u.S: E"E E 1: ::> .~ J2 ::> 0 ::>'0 Vl e 'S ....I J: ii: 0... 0... CC -179- """"; .....-0 0_ """ """"" ..... N -00 0- 0'0 ..... ~ ~~I III 0) u c: .9 a. 0. <( -0 c: o III 0) .S >- ~o.. 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" '" o N c, oi "3 '" C o U w "" IX) U -0 C o 5" -<{ /Xl ~ '" 1: " E E <Il > o Cl o " <I: >- o /Xl a c: .2 '6 '0 o '" '" -<{ i:' .2 o .!::! o :l 0- W a 1: o o IXl <Il o ciS o 'E ~ o u -< ;2 ~ '" o '" " o l/) 00- N W '" X .; ... o C <( Ql o -'" o <Il -' Ll.. l/') l/) W / .:!! :5 :.c x w r.C l/') ..c "5 o l/') 15 " o Ql E o :c o ..0 o U'l o o / U'l o o N / c..: '" <Il U 5 o l/') EXHIBIT 6 ESTIMATED SALES OF CLOSING LEVITZ STORE (1) CITY OF SOUTH SAN FRANCISCO 2008 ESTIMATE ..Store.Assumptions Amount Square Feet of Levitz Store 156,700 Estimated Sales Per Square Foot 2003 Dollars (2) 2008 Dollars (3) $176 $204 Total Estimated Annual Sales, 2008 $31,971,852 Notes: (1) The Home Depot is planned to replace an existing Levitz store at 900 Dubuque Avenue in South San Francisco whose sales are currently captured in the Home Furnishings and Appliances category. (2) Retail Maxim's Perspectives on Retail Real Estate and Finance, July 2004 (2003 data) for furniture stores. (3) Calculated sales estimates assumes 1.2 percent inflation between mid.year 2003 and 2004 and 3.0 percent thereafter. Sources: Ci1y of South San Francisco Planning Department; Retail Maxim's Perspectives on Retail Real Estate and Finance, July 2004; Bureau of Labor and Statistics, CPI data; and CBRE Consulting. P: \2005\ 1005060 Home Depot South 20-Sep-05 -183- 0- u I/) U -~ ~ u.. ;~ ~~ ~5 <0 "'WI/) 1-C>u..M iii~OO ~~~~ I/)~ ~~ c:5~ .....1- ~~ ~~ ~ i52 c.. c o ti ~ tIl <..,e ":;:..51 p}...... ... , tIl ,I:\.. ..... ~ g ,0, U :..,," '0' B S ......- u.. 0 <':J::~U) '0 If) . '&8' o .. u' .... '0 c.c i'g c.:.tIl .. ;.gel) , 0.:. ':,1/). g - &II~,: . 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N w en ~ N o ~ III '.. >- c c: <( Q) 0> o ~ Q) -' LL. '" '" 'I wi /" .J!! :..c :.c x w cC '" ..c: :; o '" C') 15 !: Co ::E Q) ::l Cl '" Q) !: E o 0 U :c UJ 0 ~ ;g CD LO U g aJ ,.- U LO ... 0 ::l 0 o S:! V) c.: PRELIMINARY TRANSPORTATION DEMAND MANAGEMENT PLAN FOR THE SOUTH SAN FRANCISCO HOME DEPOT RETAIL STORE July 2006 The Home Depot has applied to construct a home improvement store and adjoining garden center and nursery at 900 Dubuque Avenue in South San Francisco ("City"), California. The attached Preliminary Transportation Development Plan ("Plan") proposes a set of strategies, measures and incentives to encourage Home Depot's employees to walk, bicycle, use public transportation, carpool or use other alternatives to driving alone to the store. Because different employees will have different needs when it comes to alternative transportation methods, the Plan provides multiple options and incentives. The Plan is expected to reduce the number of employee peak- hour trips by approximately 113 trips, which equals 38% of the daily trips made by 150 employees (the maximum number of employees expected to work at the store each day).l The Plan thus substantially exceeds the required minimum 28% alternative mode use by Home Depot's employees. The Plan is similar in many respects to the plan for the.IKEA in East Palo Alto that was previously accepted as sufficient by the San Mateo County City and County Association of Governments ("C/CAG"). In addition, it contains all of the mandatory elements set forth in the City's Zoning Code. The exact measures described in the Plan have been tailored to be as compatible as possible with the operational characteristics of the store, which will maximize the Plan's effectiveness. These measures also will be facilitated by the pedestrian- and bicycle-friendly characteristics of the site plan proposed for the project. Given these facts, as well as the fact that the Plan uses proven strategies and measures also used elsewhere in the Bay Area, Home Depot is confident that the Plan will not only achieve but surpass the City's required percentage goal for alternative mode use. 1 This calculation assumes that all store employees will travel to and from the store during the AM and PM peak hours, which will not be the case due to the multiple retail shifts scheduled each day. Thus, the Plan will likely reduce the number of peak-hour employee trips by an even greater percentage than estimated here. -206- STATEMENT OF OVERRIDING CONSIDERATIONS 1. General. Pursuant to CEQA Guidelines section 15093, the City Council of the City of South San Francisco adopts a Statement of Overriding Considerations for those impacts identified in the Home Depot Project ("Project") EIR as significant and unavoidable. (Resolution .) The City Council carefully considered each impact in its decision to approve development of the Home Depot Project. The City Council is currently considering the Home Depot Project and accompanying EIR. The Project proposes demolition of the Levitz Furniture building and the construction of a 101,171 square foot Home Depot home improvement warehouse, an adjoining 24,215 square foot Garden Center, and a two-level parking structure providing 490 parking spaces on a 7.62 acre parcel. The City prepared an EIR for the Home Depot Project which identified environmental impacts that were determined to be less than significant or could be mitigated to a less than significant level. The EIR also identified some significant traffic-related impacts that could not be mitigated or avoided. The proposed development is for construction of a Home Depot store for retail sales of building supplies, lumber, hardware and associated items, such as appliances, barbeques, pool accessories, home furnishings, patio furniture, and other home improvement and maintenance materials. The Project will also provide rental tools and equipment to be leased for construction, landscaping, and home improvement projects. Approximately 150 to 175 full-time and part-time employees will be hired to staff the store. These employees will come from the City of South San Francisco and surrounding communities. The City Council adopts this Statement of Overriding Considerations for development approvals for the Home Depot Project. Pursuant to a 2002 court decision, the City Council must adopt overriding considerations for the impacts that apply to the Home Depot Project, 1 which are identified in the Home Depot Project EIR as significant and unavoidable. The City Council believes that many of the unavoidable environmental effects in the Home Depot Project EIR will be substantially lessened to a less than significant level by the proposed mitigation measures and by the environmental protection measures to be adopted through the Home Depot Project approvals. Even with mitigation, however, the City Council recognizes that the implementation of the project carries with it unavoidable adverse effects as identified in the Home Depot Project EIR. The City Council specifically finds that to the extent that the identified adverse or potentially adverse impacts for the project have not been mitigated to acceptable levels, there are specific economic, social, environmental, land use, and other considerations that support approval of the project. 2. Unavoidable Si2I1ificant Adverse Impacts. The following unavoidable significant impacts have been identified in the Home Depot Project EIR. , "[PJublic officials must still go on the record and explain specifically why they are approving the later project despite its significant unavoidable impacts." Communities for a Better Environment v. Cal. Resources Aoency (2002) 103 Cal.App.4th 98,125. 829135-1 -207- Impact 11.2 - Year 2006 Intersection Level of Service Impacts. "While nearly all intersections analyzed would maintain acceptable operation during AM and PM peak hour conditions, the Oyster Point Boulevard/Dubuque AvenuelU.S. 101 Northbound on- ramp intersection would experience significant increase in traffic volume. Level of Service (LOS) grades for this intersection would drop from an E to an F, and volume would increase by 4.3%.2 There are no feasible physical improvements that the City could undertake at this intersection to improve operation to Base Case Conditions or better. Impact 11.5 - Year 2006 Vehicle Queuing Impacts 50th Percentile Queue. The Dubuque Avenue northbound approach left tum/through lanes would receive more than a two percent increase in traffic (19.5%), with significant Base Case queuing in the left turn lane. Acceptable Base Case queuing in the combined left/through lane would also be increased beyond the available storage with the addition of Project traffic. There are no feasible physical improvements that the City could undertake at this intersection to reduce queuing to Base Case Conditions or better. 95th Percentile Queue. The Dubuque Avenue northbound approach left turn lane would receive more than a two percent increase in traffic (9.6%) with unacceptable Base Case queuing during the AM peak hour. During the PM peak hour, the Dubuque Avenue northbound approach left turn lane and through/left turn lanes would receive more than a two percent increase in traffic (19.5%) with unacceptable Base Case queuing in both lanes. There are no feasible physical improvements that the City could undertake at this intersection to reduce queuing to Base Case Conditions or better. Impact 11.6 - Year 2020 Intersection Level of Service Impacts. During the PM peak hour volume at the Oyster Point Boulevard/Dubuque A venuelU.S. 101 Northbound on- ramp would increase by more than two percent (2.1 %), resulting in a significant impact at this intersection. There are no feasible physical improvements that the City could undertake at this intersection to reduce the impact to Base Case Conditions or better. Impact 11.9 - Year 2020 Vehicle Queuing Impacts 50th Percentile Queue; AM Peak Hour. The Dubuque Avenue northbound approach left turn lane would receive an increase in traffic with unacceptable Base Case queuing during the AM peak hour. There are no feasible physical improvements that the City could undertake to reduce queuing to an acceptable level during the AM peak hour at the Dubuque A venue northbound approach left turn lane. 50th Percentile Queue; PM Peak Hour. During the PM peak hour, the Oyster Point Boulevard westbound approach through lanes and left turn lane would receive a significant increase in traffic with unacceptable Base Case queuing. The Dubuque Avenue northbound approach left turn/through lanes will also experience significant increase in traffic with unacceptable Base Case queuing. Mitigation Measure 11-9A will 2 An increase in volume of greater than two percent was considered "significant" for purposes of the EIR. 829135-1 -208- not reduce queuing to an acceptable level during the PM peak hour at Oyster Point Boulevard or Dubuque A venue lanes. 95th Percentile Queue; AM Peak Hour. The Dubuque Avenue northbound approach left turn lane and combined through/left turn lanes will experience a 7.2% increase in traffic with unacceptable Base Case queuing. Additionally, the Bayshore Boulevard southbound approach left turn lane will experience a 4.1 % increase in traffic with unacceptable Base Case queuing. The Oyster Point Boulevard westbound approach left turn lane will have a demand increased beyond the available storage with the addition of project traffic. There are no feasible physical improvements that the City could undertake at the Dubuque Avenue northbound approach to reduce the impact to Base Case Conditions or better. Mitigation 11-9B will not reduce queuing on Bayshore Boulevard or alleviate the storage problem on Oyster Point Boulevard to acceptable levels. 95th Percentile Queue; PM Peak Hour. The Oyster Point Boulevard westbound approach through lanes will receive a 4% increase in traffic with unacceptable Base Case queuing. The Oyster Point Boulevard westbound approach left turn lane will receive a 4.1 % impact in traffic with unacceptable Base Case queuing. The Bayshore Boulevard southbound approach left turn lane will experience a 8.1 % increase in traffic with unacceptable Base Case queuing. The Dubuque Avenue northbound approach left turn and combined throughlleft turn lanes will receive a 6.2 increase in traffic with unacceptable Base Case queuing. Mitigation Measure 11-9B will not reduce queuing on Oyster Point Boulevard westbound approaches to an acceptable level. Nor will the Measure reduce queuing at the Bayshore Boulevard southbound approach to an acceptable level. There are no feasible physical improvements that the City could undertake at the Dubuque Avenue northbound approach to reduce the impact to Base Case Conditions or better. 3. Overriding: Considerations. The City Council now balances the unavoidable impacts that apply to future development of the Home Depot Project, against it benefits, and hereby determines that such unavoidable impacts are outweighed by the benefits of the Home Depot Project as further set forth below. The Project will generate a new source of significant tax revenue for the City. The Home Depot store is estimated to generate gross sales upwards of $40 million per year, resulting in a revenue stream of approximately $400,000 per year to the City. The Project is expected to employ an estimated 150 to 175 full-time and part-time employees, primarily derived from local communities. The Project will provide retail sales of building supplies, lumber, hardware and associated items for construction, landscaping, and home improvement projects in the area. Additionally the project will provide rental tools and equipment to be leased for such projects. 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U 0::;E ::l 0) "'d..... 0) .;!a 0 "'" fIl Eo-< ctl S fIl ~u:.a a1"""l en ..... > .- 0 o ~.- l5...g 13 :::::Q)~ -1"""1 ~ a,.-.ol ::: '00 1:: "OJ!3~ 0.'- ..... 0) "'" oc.Ss .- ~ a3 '0 ~ U ::l o ctl '"0 :I:-a~ 0{) ~ ~ ~ ~ "'d 0) U ::l "'d 0) ~ -213- lr') fIl 0. 'C ..... S o ,.!:i I ~ Q) 0. lr') o .- '"0 Q) 2,.!:i fIl ..... ~~ fIl 0 ..... 0 0 000 ~.~ .~ =: ~ fIl .2"E~ 0) Q) ~ 0) ~ 0 ..gasu 4-<AfIl o E ~;;.., 0-1:: 2 Q) ::l Q)..g 0 '"O"",U .Ec.S0) UfIl,.!:i .S 0) ~ s O).S 0 ctl ~~~5b ~:ge8 ::l eo~ fIlOo..... ~'"O""'o ::l Q) ~ 0) fIl fIl 0) ~ ctl .....> fIl as Q) 0) ;:J 0{) E~"'dctl ~Q)aa E-<-B....:l::;E ~ Eo-< 4-< o ~ o ..... ..... ctl fIl o 1:: :E Q) ~ E - Q) 0_ U~ ~ ...-( ...-( Q ~ E-- -< ~ ~ Eo-; ~ ~ r:I.l ~ ~ Eo-; ~ ~ o == ~ -< ~ ~ ~ ~ o ~ """ C/CAG CITY/COUNTY ASSOCIATION OF GOVERNMENTS OF SAN MATEO COUNTY Atherton' Belmont. Brisbane' Burlingame' Calma' Daly City. East Palo Alto. Foster City . Half Moon Bay . Hil/sborough . Menlo Park' Mil/brae Pacifica' Portola Valley' Redwood City. San Bruno' San Carlos' San Mateo' San Mateo County. South San Francisco' Woodside July 17, 2006 ~CrE~r' ',. ~'!,7~.. _. ." 1) p~~ )b '. " .'" (lV:llvI G Oli' ~ Steve Carlson, Senior Planner City of South San Francisco Planning Division P.O. Box 711 South San Francisco, CA 94083 RE: Home Depot Project Transportation Demand Management Plan Dear Mr. Carlson: I have reviewed the Transportation Demand Management (TDM) Plan for the Home Depot Project. C/CAG recognizes that retail establishments can prove difficult to mitigate when it comes to the reduction of peak hour trips. The proposed TDM plan concentrates on the reduction of employee peak hour trips and is a well devised plan that covers the requirements for compliance with the Congestion Management Program. Thank you for your continued work with C/CAG in developing this comprehensive set of Transportation Demand Management measures. We would appreciate it if you could keep us informed of the enforcement of the plan so thatwe can keep track of how the program is being implemented. ;:~V~ Tom Madalena City/County Association of Governments of San Mateo County 650-599-1460 direct tmadalena@co.sanmateo.ca.us 555 COUNTY CENTER, 5TH FLOOR, REDWOOD CITY -'2\ 4'_')63. <I> 650/599-1460. FAX: 650/361-8227 (FRMO_ . ._.__...:) STATE OF CALIFORNIA-BUSINESS. TRANSPORTA nON AND HOUSING AGENCY ARNOLD SCHW ARZENEGGER Governor DEPARTMENT OF TRANSPORTATION 111 GRAND AVENUE P. O. BOX 23660 OAKLAND, CA 94623-0660 PHONE (510) 286-5505 FAX (510) 286-5559 TTY (800) 735-2929 RECRl, VlnID --~~ '.!1.!.1 . ~ .., '"; ''f!l~j '" \J J c. ~lfb Flex your power! Be energy efficient! June 1, 2006 PLANNING DEPT. SM101415 SM-101-22.5-23.2 SCH#2005082032 Mr. Steve Carlson City of South San Francisco Planning Department 315 Maple Avenue South San Francisco, CA 94080 Dear Mr. Carlson: HOME DEPOT - FINAL ENVIRONMENTAL IMPACT REPORT, SYNCHRO RUNS Thank you for continuing to include the California Department of Transportation (Department) in the environmental review process for the Home Depot project. The following comments are based on the Final Environmental Impact Report (FE1R) and recently submitted Synchro runs. FEIR comments are numbered according to the format in that document. Additional comments on the Synchro runs may be forthcoming pending completion of our review. Highway Operations FEIR Response to E-4: Caltrans highway design standards require a two-lane off-ramp when volumes exceed 1,500 vehicles per hour. E-5: Comment has not been adequately addressed. Regarding the "response's reference to significance criteria for the Terrabay project, responses to our comments on the Home Depot project should be adequately addressed without reference to other projects. Any omission on the Terrabay project will be discussed with the City to rectify concerns for that project. E-6: All legs of the US 101 Northbound off-ramp/Dubuque Avenue intersection should be analyzed. E-7: Since highway operations staff was not invited to the Synchro/SIM presentation, we are not able to determine whether the mitigation discussed is appropriate. Nonetheless, it should be included in the EIR as mitigation. E-8: Comment No. E-8 has not been adequately addressed. See response to E-5above. E-9: Comment No. E-9 has not been adequately addressed. Detail measures needed to mitigate "Caltrans improves mobility across California" -215- Mr. Steve Carlson June 1,2006 Page 2 this impact and explain why there are no physical improvements considered feasible at this intersection. E-lO: Detail measures needed to reduce this impact to a less than significant level. E-l1: Comment No. E-l1 has not been adequately addressed. See response to E-5 above. Synchro Runs The SimTraffic simulation showed significant queuing at the US 101 Northbound off- ramp/Dubuque A venue intersection. The recommended signal timing modifications would reduce this impact, but would create significant queuing along Northbound Dubuque Avenue. Does the City accept this mitigation? Please feel free to call oremail Patricia Maurice of my staff at (510) 622-1644 or patricia maurice@dot.ca.!wv with any questions regarding this letter. ;ad-g. f1\J~ T~~~LE District Branch Chief IGR/CEQA c: Ms. Terry Roberts, State Clearinghouse Mr. David Tait, The Tait Group "Caltrans improves mobility across California" -216- DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT PLANNING DIVISION (650) 877-8535 FAX (650) 829-6639 CITI' COUNCIL 2005-2006 JOSEPH A. FERNEKES, MAYOR RICHARD A. GARBARINO, VICE MAYOR MARK N. ADDIEGO, COUNCILMEMBER PEDRO GONZALEZ, COUNCILMEMBER KARYL MATSUMOTO, COUNCILMEMBER BARRY M. NAGEL, CITY MANAGER July 14, 2006 Department of Transportation Attn: Timothy C. Sable P.O. Box 23660 III Grand Avenue Oakland, CA 94623-0660 Re: Caltrans Home Depot Letter of June I, 2006 Mr. Sable: The letter is in response to your June I, 2006 comment letter. HIGHWAY OPERATIONS 1. Comment noted regarding requirement for a second off-ramp lane when off-ramp volume exceeds 1,500 vehicles per hour. The D.S.1 01 northbound off-ramp intersection connecting to Dubuque Avenue is the only off-ramp in the project area projected to exceed this volume limit (year 2020 AM peak hour, with or without the Home Depot project). 2. (E-5) Synchro 95th percentile queuing analysis contained in the DEIR (Tables 11-9 and 11-10) shows that the U.S.101 northbound off-ramp intersection would not be expected to have off-ramp traffic backing up to the U.S.101 mainline in either 2006 or 2020, with or without the Home Depot project. The AM peak hour off-ramp volume in 2020 would come to within :1:50 feet of the off-ramp gore area with the freeway mainline. Further evaluation of 2020 AM peak hour off-ramp traffic flow using the SIM traffic program -217- 315 MAPLE AVENUE . P.O. BOX 711 . SOUTH SAN FRANCISCO, CA 94083 does show, however, that off-ramp traffic would eventually back up to the freeway mainline (with or without the Home Depot project). A variety of Synchro/SIM traffic year 2020 AM and PM peak hour runs have been provided to Caltrans showing resultant off-ramp operation with provision of a second northbound off-ramp lane connection to the freeway mainline (as recommended by Caltrans highway operations staff), as well as signal timing adjustments at Dubuque Avenue to help clear off-ramp traffic. Runs have been conducted both with and without coordination of the Dubuque Avenue/freeway ramps intersection with the remaining intersections within the Oyster Point interchange. The May 19,2006 memo transmittal with a description of the results of those runs (already delivered to Caltrans) is attached. It should be noted that by 2020, the Home Depot project would actually be expected to reduce traffic on the northbound off-ramp compared to the site's originally planned office/R&D development (during the critical AM peak traffic hour). It is agreed that Home Depot, Lowe's, Terrabay and other area development should provide a fair share payment to provision of this second needed northbound off-ramp lane. 3. (E-6) 50th and 95th percentile queuing information for the Dubuque Avenue/ Northbound Off-/Southbound On-ramp intersection has been provided for the V.S.l 01 off-ramp and southbound Dubuque Avenue intersection approaches in the DEIR (Tables 11-7, 11-8, 11-9 and 11-10). Results for the northbound Dubuque Avenue approach are provided in the expanded Tables 11-7, 11-8, 11-9 and 11-10, which are attached. Queuing data for the northbound approach is bolded within the table. This is a City of South San Francisco controlled approach. 4. (E- 7) Representatives of Caltrans District 4 Division of Operations, including Ms. Katie Yim, Senior Transportation Engineer, and another Caltrans traffic engineer were both present at the meeting at Caltrans District 4 headquarters presenting Synchro and SIM traffic results for the Oyster Point interchange for the Terrabay project. The set of2020 cumulative volumes contained in the Terrabay analysis are the same as those contained in the Home Depot and Lowe's analyses. 5. (E-8) At the Oyster Point Boulevard interchange intersections, the Caltrans controlled approach legs are the northbound off-ramp approach to Dubuque Avenue, the southbound off-ramp approach to Bayshore Boulevard and the southbound off-ramp approach to Oyster Point Boulevard-Gateway Boulevard. The off-ramps connecting to Dubuque Avenue and Bayshore Boulevard have been evaluated in the Home Depot EIR, as they would be the two off-ramps to potentially be impacted by Home Depot traffic. Synchro 95th percentile queuing analysis shows that during 2006 or 2020 the AM peak hours (Table 11-9) or the 2006 PM peak hour (Table 11-10), the project would not result in a significant off-ramp impact. However, during the 2020 PM peak hour (Table 11-10), the project would be expected to produce a significant impact at the southbound off-ramp approach to Bayshore Boulevard (based upon Caltrans criteria of one extra vehicle being added to a location with unacceptable Base Case operation). The project would add 22 vehicles to the off-ramp and Synchro analysis indicates unacceptable Base Case (without project) off-ramp queuing. This result has already been identified as a significant impact in the DEIR (as it met the City's "greater than two percent" traffic added to unacceptable -218- Base Case queuing significance criteria). Signal timing adjustment and Bayshore Boulevard approach turn. lane lengthening measures have been recommended to mitigate this impact (as part of both the Terrabay Phase 3 and Home Depot EIRs). 6. (E-9) The City of South San Francisco has determined that, based upon right-of-way limitations and construction costs, any further improvements to the Oyster Point . Boulevard/Dubuque AvenuelU.S.101 northbound on-ramp intersection are infeasible. 7. (E-I0) Measures required to mitigate year 2020 traffic impacts due to office/R&D development on the project site (as well as full development in the East of 101 area) were developed as part of the DEIR for the South San Francisco General Plan Amendment and Transportation Demand Management Ordinance study in April 2001. This study has apparently been previously supplied to Caltrans. 8. (E-ll) Please see Response 5. SYNCHRO RUNS. I. Comment noted. Yes the City would accept the mitigation measure. Should you have any questions, please do not hesitate to contact me at 650/877-8535, Regards, ~~?~ 7ve arlson, Senior Planner Attachments. Cc Ray Razavi, City Engineer Dennis Chuck, Senior Engmeer File -219- CRANE TRANSPORTATION GROUP SOUTH SAN FRANCISCO-HOME DEPOT EIR YEAR 2020 SYNCHRO RUNS WITH FULL CUMULATIVE DEVELOPMENT (INCLUDING HOME DEPOT) MITIGATED TO CLEAR TRAFFIC FROM U.S.101 OFF-RAMPS AT THE OYSTER POINT/U.S.101INTERCHANGE The enclosed files are year 2020 Synchro Level of Service runs for the intersections within the Oyster Point Blvd./U.S.1 01 interchange. Intersections included in the system are: Bayshore Blvd./U.S.1 01 Southbound Off-Ramp Bayshore Blvd.rrerrabay Phase 3 Main Entrance Bayshore Blvd.lSister Cities Blvd./Airport Blvd.lOyster Point Blvd. Oyster Point Blvd.lDubuque Ave.lU.S.101 Northbound On-Ramp Dubuque Ave.lU.S.1 01 Northbound Off-Ramp/Southbound on-Ramp There are a total of 4 Synchro runs. They are as follows: Year 2020 AM Peak Hour (Coordinated System of all intersections) Year 2020 AM Peak Hour (Dubuque/1 01 Ramps intersection NOT Coordinated with rest of system) Year 2020 PM Peak Hour (Coordinated System of all intersections) Year 2020 PM Peak Hour (Dubuque/1 01 Ramps intersection NOT Coordinated with rest of system) These runs include traffic from full development of the Home Depot, Lowe's and Terrabay Phase 3 projects currently proposed in South San Francisco. Runs for Home Depot and Lowe's, submitted on separate disks, have exactly the same year 2020 results, as the cumulative volumes are exactly the same for both studies (and are the same as the cumulative volumes already reviewed by Caltrans for the Terrabay Phase 3 EIR). These runs are all optimized to clear traffic from the freeway at the Bayshore/101 SB ramps and at the Dubuque Ave/NB offramp/SB onramps intersections. As noted above, there are runs with the Dubuque Ave/NB 101 off-ramp/SB 101 on-ramp both as a coordinated part of the remaining system of intersections within the interchange as well as a stand alone intersection (in a manner similar to the way the system of intersections within the interchange works today). Note that, as recommended by Caltrans, a second off- ramp lane has been provided at the Dubuque/101 NB off-ramp intersection. When run in SimTraffic, neither the AM or PM Peak Hour Scenarios work satisfactorily with the fully coordinated system. However, SimTraffic shows that both the AM and PM Peak Hour off-ramp queues are always acceptable at the Southbound Off-Ramp to Bayshore Blvd. and almost always acceptable at the Dubuque Avenue off-ramp intersection if it is not coordinated with the other intersections. 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"U ........_ ~.'1:""~ """ " ~ w ijlt'rJ ~~ ~ ~ ~ K) Rhamnus Californica Eve Case M) Pennisetum Setaceum 'rubrum' FINAL FOCUSED ENVIRONMENTAL IMPACT REPORT State Clearinghouse Number: 2005-082032 CITY OF SOUTH SAN FRANCISCO HOME DEPOT PROJECT PREPARED BY LAMPHIER - GREGORY MAY 2006 r UI m I , 0 ;;0 00 CD -I m 08 "'''' 0 co :::c h :r -Ic :J:~ m 000 ,.... )>c ,.... Z ~ :::c > 'T1~O < ~ ffi s:: m ~ m Z c n m p 0 n m )> CII r- ""0 c =n 0 0 -t ;;0 m Z -I :; '" C 0 . 0 (J) . ;x> - z () " > x ..... ~ '" UI CD UI ... 00 0 L ~I Cllii ~. z. "I nii! >. ,....~ ~I ~I >iI i CD~ ~I oo~ ~ oiil'! ~ ",- '" 0- ~ 0- '" 0- "'- o -t m ,.... ..... ... "l) ,.... Z"l) ~,.... nZ ~~ :c:8 ~:c: G) 5~O);! z!aill5 Rlo;;oO'J u,zm'll: c~~~ O'JO'JO'Jo ~~~8 ~~~~~ > fiiCII li9~O..:r ",~i\;~~Rl !l!!~leOOIl-t lig~g~> '" UI CD o UI o o ~ ()c rOcn )>zm a()""O cnmm ()'1J;o )>~s:: ""0)>- mr-;i :r (,) ."]: . '~"~, ~ '. .h '. .... . "'" ". ". .' .' ..- / / .' " ,1Jt//// .,/ ~~i " "I r Cl C'l -11'1 Z "-..J, UJ> ;U C) 1" '" C'l Z I L .. II mm ~rf III il! illll~i ~II;SWI~ i1~ n .j'-'l~ ~ll..1 Z i i ~ ~1~:qS ~M~i!! ; ~ i !:Ii~!:I I~ l! > a fg ~j! ~!:Ii sa III! 1!llll W!I !i I !~ ~I .' ~~ r'1 i ~ ~I i . I ~ ColI C,Il W ell t.I F F F F F F F F ~ ~ ill", ft:~~~~ ~ ..; a: ..; = a: o 0 0 0 lC )( Ie lC LL II UJl1L iw.i I ~~ CONTENTS Page 17 . PREFACE.. ............. ............ .............. ..... ........ ..... .......................... ....................... .... .......... 17-1 Purpose of the Final Environmental Impact Report........................................................................................17-1 Organization of the Final EIR .............................................................................................................................17-2 Scope of the EIR ....................................... ....... ................................. ................... ....... ......................... ..................17 - 3 Public Review Process ................. ....... .............................................. ................... .......................... ...... ..................17-3 18. REVISIONS TO THE DRAFT EIR....................................................................................... 18-1 19. COMMENTS AND RESPONSES........................................................................................... 19-1 Introduction.......................................................................................................................... .................................. 19-1 List of Letters ...................................................................................................................................... ................... .19- 2 A. State of California Governor's Office of Planning and Research ........................................................19-3 B. County of San Mateo Department of Public W orks...............................................................................19-7 C. California Department of Transportation, District 4 .......................................................................... 19-11 D. Cassidy Shimko Dawson Kawikami....................................................................................................... 19-15 E. California Department of Transportation, District 4 .......................................................................... 19-29 F. State of California Governor's Office of Planning and Research ...................................................... 19-37 G. Town of Colma .......................................................................................................................................... 19-41 '" m N c 3: > lJ'l-<> ...., Z 08 Co I Vl -lC I'" -; C m lJ'lD ;>:: )>c zm I > "'T'I< 0 -; ;AJm )>~ zm ~ V> Q C lJ'l m n -; 9 0 ..., n )> m r- ""'0 "'T'I Ul 0 0 c ;AJ Z ...., )> C . 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C) en N~V5C"") :;'::>>C)o gw__o.... gzc->C"") "'C):>>:I> cnz-o ~~::!:a rvQOcn ~;gj-a c:>m "'F;;C") ~ -I =1 _ ~ ~ ~ tHi c= ca~a ... ill.-" CD Ii~!!. CD q~a- l!l ~ il CD :?~ ... i ~ c:;.. ill ~ c:u ill - .... i l!l'" ;;: CI e -t :J: m :J: o :!i: m <DC =m ="'t:I 00 ai-t c:: . Den ~O :pC: ~~~ rn Z -- ::I:~en 0- > :S::~Z rn u> o :J> "T1 rnZ::C -0,,> ~$'Z c::ZC") NC,nQcn ~ > u> C") 0' '-'0 8Z9- ",0~~ ~gs-a ~~~rn g~~~ cnU)n-a ~~m ~ C") il :::! .- < m is 17 PREFACE 17.1 PURPOSEOFTHEFINALEIR This Final Environmental Impact Report (EIR) provides responses to comments submitted by government agencies, organizations and individuals on the Draft EIR for the Home Depot Project. The EIR has been prepared pursuant to the California Environmental Quality Act (CEQA) as amended (commencing with Section 21000 of the California Public Resources Code), and the CEQA Guidelines. The Lead Agency for the Project, as defined by CEQA, is the City of South San Francisco. In accordance with the requirements of the California Environmental Quality Act (CEQA), this Final EIR consists of the responses to comments and revisions of those portions of the Draft EIR which have been modified in response to comments received during the public review period on the Draft EIR. This Final EIR includes copies of all written comments received within the 45-day public review period following publication of the Draft EIR, and provides responses to those comments. In some cases, the responses have also resulted in revisions to the Draft EIR, and all such changes are reflected in this document. As required by CEQA, this document addresses those comments received during the public review period that raise environmental issues. The EIR (which is comprised of the Draft EIR and the Final EIR) is intended to be certified as a complete and thorough record of the environmental impacts of the proposed Project by the City of South San Francisco. Certification of the EIR as adequate and complete must take place prior to any formal City action on the proposed Project itself, and EIR certification does not equate to approval of the Project. The EIR is meant to provide an objective, impartial source of information to be used by the lead and responsible agencies, as well as the public, in their consideration of the Project. The basic purposes of CEQA are to: · inform governmental decision makers and the public about the environmental effects of proposed activities; . involve the public in the decision making process; · identify ways that damage to the environment can be avoided or significantly reduced; and HOME DEPOT PROJECT FINAL FOCUSED EIR PAGE 17-1 - CHAPTER 17: PREFACE - · prevent environmental damage by requiring changes in the project through the use of alternatives or mitigation measures.1 - The analysis in the EIR concentrates on those aspects of the Project that are likely to have a significant adverse effect on the environment. The EIR identifies reasonable and feasible measures to mitigate (i.e., reduce or avoid) these effects. The CEQA Guidelines define "significant effect on the environment" as "a substantial, or potentially substantial adverse change in any of the physical conditions within the area affected by the project ...."2 The determination of significance of potential environmental effects is based, in part, on the discussion of environmental effects which are normally considered to be significant found in Appendix G of the CEQA Guidelines. - - - This EIR does not address those environmental factors and effects that have already been determined to be "less than significant", except as necessary to establish a background for the Project. The social or economic issues associated with the proposed Project are not evaluated in the EIR, as these are not considered "environmental" effects. Such an analysis is beyond the scope of this environmental review document. - - - 17.2 ORGANIZATION OF THE FINAL EIR The Final EIR consists of the following major sections: ...... . Preface - outlines the objectives of the EIR and important preliminary information, - . Revisions to the Draft EIR - contains revisions to the Draft EIR text, · Comments and Responses - contains letters of comment on the Draft EIR along with responses to these comments. In response to some comments, the text of the Draft EIR has been modified, with changes indicated as described in the previous paragraph. - - This EIR has been prepared for the City of South San Francisco (the Lead Agency) by Lamphier-Gregory. The information in the EIR was compiled from a variety of sources, including published studies, applicable maps and independent field investigations. Unless otherwise noted, all background documents are available for inspection at the City of South San Francisco Planning Department. .... - - State of California, Governot's Office of Planning and Research, California Environmental Quality Act Statutes and Guidelines, 1995, Section 15002(a). 2 Ibid, Section 15382. - - PAGE 17-2 HOME DEPOT PROJECT FINAL FOCUSED EIR - CHAPTER 17: PREFACE 17.3 SCOPE OF THE FINAL EIR An initial evaluation of the proposed Project by City staff indicated that the development of the project site area as proposed might have several potentially significant environmental impacts (see Executive Summary Chapter of the Draft EIR). The potentially significant project related impacts identified relate to those areas that are listed below: . Air Quality . Geology and Soils . Hazardous Materials . Hydrology . Land Use . Noise . Public Services . Transportation and Circulation and . Utilities Each of these topic areas is addressed in the DEIR in its respective chapter. 17.4 PUBLIC REVIEW PROCESS The Notice of Preparation of the Draft EIR was released on February 1,2006. It is included in Appendix A of the Draft EIR, along with responses to comments on the Notice of Preparation. The Draft EIR was circulated for a 45-day period. During this time, the public and responsible agencies and organizations submitted comments on the sufficiency or adequacy of the EIR in evaluating the environmental effects of the proposed project. --:"'^ Responses to written comments received on the Draft EIR have been prepared, and are presented in this document. The Draft EIR, with the responses to comments received on the Draft EIR during the public review period, comprise the Final EIR. The Final EIR will be presented to the City Council of the City of South San Francisco for review and certification, in accordance with Section 15080 of the CEQA Guidelines. However, certification of the EIR does not constitute approval of the proposed Project. This action only indicates that the record of potential environmental impacts and the available means of reducing or avoiding these impacts provided in the EIR is adequate and complete. Upon certification of the EIR, the City Council will make a separate decision on the approval, denial or modification of the Project as proposed. Certification of the EIR as adequate and complete does not imply that the proposed Project has to be approved. In accordance with the HOME DEPOT PROJECT FINAL FOCUSED EIR PAGE 17-3 - CHAPTER 17: PREFACE - requirements of CEQA, where there remam significant environmental effects that cannot be reduced to a level of "less than significant", the Project may be approved only where a statement of overriding considerations of social, economic or other benefit can be made and supported with substantial evidence.3 - - - - - - .- - - - - ""'" 3 California Public Resources Code Section 21080(e) "...substantial evidence includes fact, a reasonable assumption predicated upon fact, or expert opinion supported by fact. Substantial evidence is not argument, speculation, unsubstantiated opinion or narrative, evidence that is clearly inaccurate or erroneous, or evidence of social or economic impacts that do not contribute to, or are not caused by, physical impacts on the environment." - - PAGE 17-4 HOME DEPOT PROJECT FINAL FOCUSED EIR - 18 REVISIONS TO THE DRAFT EIR In response to comments received on the Draft EIR during the 45-day public review period, the following revisions in the text of the Draft EIR have been made. Additions are illustrated as underlined text, while deletions are illustrated as strikethrough text: On DEIR pages 2-17 to 2-22, the Executive Summary table has been revised to indicate the resulting level of significance after the implementation of mitigation measures for each analyzed intersection in Impacts 11-5, 11-6, and 11-9, and included at the end of this chapter. On DEIR pages 2-22 and 11-78, Mitigation Measure 11-10 has been revised as follows: Mitigation Measure 11-10 Left Turn Lane · Revise the Project site plan layout in the vicinity of the central driveway in order to widen Dubuque Avenue sufficiently to provide a southbound left turn lane at least 75 and preferably 100 feet long. Sight Lines . Provide low height landscaping along the site's entire Dubuque Avenue frontage that will allow permanent sight lines of at least 360 feet in both directions from each Project driveway. Dubuque Avenue shall be posted in both directions with a maximum speed limit of 35 miles per hour in the vicinity of Home Depot. Prior to any of the Home Depot driveway improvements along Dubuque Avenue the owner shall have a sight line study prepared by a qualified Traffic Engineer acceptable to the City Engineer. The study shall analyze the potential for left turns out of the northerly Home Depot driveway. The study and recommendations shall be subject to the review and approval of the South San Francisco City Engineer. On-street parking along the Project's entire Dubuque Avenue frontage shall be prohibited. Prior to 2010. at the owner's expense. an intersection control study shall be conducted by a qualified Traffic Engineer acceptable to the South San Francisco City Engineer. The study shall analyze the need for intersection control at the Project's central driveway to minimize traffic conflicts and shall be subject to the review and approval of the South San Francisco City Engineer. . . . . HOME DEPOT PROJECT FINAL FOCUSED EIR PAGE 18-1 - CHAPTER 18: REVISIONS TO THE DRAFT EIR The City of South San Francisco shall post speed limit signs of 30 to 35 miles per hour along Dubuque f~venue in the vicinity of Home Depot for both tra..,cl directions. Prohibit left turns out of the northerly Home Depot driT;c-"ay. The City of South San Francisco shall prohibit on street parking along the Project's entire Dubuque Avenue frontage. If needed, consider provision of "all way stop" control at the Project's central driT;eway intersection. . . . . - .- - These measures would reduce the Project's impact to a less-than-significant level. - On DEIR page 7-9, the following underlined text has been added as follows: -.. SAN MATEO COUNTYWIDE STORMWATER POLLUTION PREVENTION PROGRAM - To comply with the CW A, San Mateo County and the 20 cities and town in the County formed the San Mateo Countywide Stormwater Pollution Prevention Program (STOPPP). STOPPP holds a joint municipal NPDES permit from the San Francisco Bay RWQCB. The permit includes a comprehensive plan to reduce the discharge of pollutants to creeks, San Francisco Bay, and the ocean to the maximum extent possible. Amendments to the program as instituted by the RWQCB in February 2003 included provision C.3 which strengthens the New Development and Construction component of the STOPPP Stormwater Management Plan (SMP) component requirements by identifying and implementing appropriate site design. source control. and stormwater treatment measures. - - - - On DEIR page 7-12, the following underlined text has been added as follows: Mitigation Measure 7-1b PAGE 18-2 - Revised Storm Drain Plan. If the hydraulic analysis described in Mitigation Measure 7-1a cannot show that the existing storm drain has capacity for Project flows, the applicant shall submit a Revised Storm Drain Plan for the Project. The revised plan shall include drawings of the new proposed system and shall include calculations of the new system capacity. All runoff from the site must be routed to the Oyster Point Boulevard outlet and must not be directed to the San Mateo County Flood Control District's flood control channel (Colma Creek watershed). or must be infiltrated at the project site. Methods such as on-site storm water detention, storm drain line upgrades, and an infiltration area shall be incorporated into the project design. Mitigation Measure 7-2b requires incorporation of a vegetated swale and infiltration area for treatment of storm water runoff from parking lot areas. Any drainage changes shall be reviewed and approved by the City of South San Francisco and the San Mateo County Flood Control District prior to tentative map approval. - "'" - - - HOME DEPOT PROJECT FINAL FOCUSED EIR - CHAPTER 18: REVISIONS TO THE DRAFT EIR On DEIR page 11-2, the following text has been revised as follows: Southbound U.S. 101 traffic accesses the Project area via a stop sign controlled off-ramp connecting to Bayshore Boulevard Dubuque Avenue along the Home Depot site frontage (soon to be signalized). On DEIR page 11-2, the following text has been deleted as follows: Adjacent to the eastern boundary of the Home Depot site, Bayshore Boulevard has two travel lanes in each direction, narrowing to single travel lanes near its intersection with the U.S.101 southbound off-ramp (scissors ramp). Improvements are underway to make Bayshore Boulevard a four-lane roadway adjacent to the Home Depot site. On DEIR pages 11-61 and 11-65, Figures 11-13 and 11-15 have been revised to show proper PM peak hour volumes at the project driveways. Updated versions of Figures 11-13 and 11-15 are included at the end of this chapter. In response to Comment E-l from the California Department of Transportation, project-related turning movement volumes are provided in Figure A (AM Peak Hour) and Figure B (PM Peak Hour), included at the end of this chapter. HOME DEPOT PROJECT FINAL FOCUSED EIR PAGE 18-3 CHAPTER 18: REVISIONS TO THE DRAFT EIR Impact 11-1: Trip Generation Exceeds 100 Trips During Peak Hours. The proposed Project would generate 100 net new trips more than existing site uses during the AM and PM peak hours (:1: 185 more trips during the AM peak hour and :1:350 more trips during the PM peak hour than the existing Levitz furniture operation), The San Mateo City/County Association of Governments (C/CAG) Agency Guidelines for the implementation of the 2003 Draft Congestion Management Program ("C/CAG Guidelines") specifies that local jurisdictions must ensure that the developer and/or tenants will mitigate all new peak hour trips (including the first 100 trips) Projected to be generated by the development, This would be a significant impact. Impact 11-2: Year 2006 Intersection Level of Service Impacts. Tables 11-1 and 11-2 show that all but one analyzed intersection would maintain acceptable operation during AM and PM peak hour conditions with the proposed Project. At the Oyster Point Boulevard/Dubuque Avenue/U.S.l01 Northbound On-Ramp intersection, PM peak hour Project traffic would degrade operation from LOS E to LOS F and increase volumes by more than two percent (4.3%). This would be a significant impact. .:' Impact 11-5: Year 2006 Vehicle Queuing Impacts. Tables 11-7 and 11-8 show that the proposed Project would result in significant queuing impacts during the PM peak traffic hour in 2006 at the 50th Percentile Queue, 50th Percentile Queue PM PEAK HOUR 1) Bayshore Boulevard/Sister Cities Boulevard/Oyster Point Boulevard/Airport Boulevard intersection. The Oyster Point westbound HOME DEPOT PROJECT FINAL FOCUSED EIR Mitigation Measure 11-1: Transportation Demand Management Program. The Project sponsors shall implement a Transportation Demand Management (rDM) plan consistent with the City of South San Francisco Zoning Ordinance Chapter 20.120 Transportation Demand Management and acceptable to San Mateo City County Association of Governments (C/CAG). The TDM plan is required to be on-going for the life of the development. The C/CAG guidelines specify the number of trips that may be credited for each TDM measure. Appendix B Table 5 outlines TDM plan measures that can generate trip credits to offset the :1: 185 net new AM peak hour trips and :1:350 net new PM peak hour trips generated by the Project. Since the majority of vehicles associated with Home Depot will be retail customers and not employees (and not influenced by typical TDM measures), the Project applicant and C/CAG will need to meet and develop a program agreeable to the City, C/CAG and Home Depot. Implementation of a TDM plan will reduce the Project's impact to a less than significant level. Mitigation Measure 11-2: None. There are no physical improvements considered feasible at this intersection by City of South San Francisco Engineering Division to improve operation to Base Case Conditions or better. The impact would rem am significant and unavoidable. Mitigation Measure 11-5A: 50th Percentile Queue 1) Bayshore Boulevard/Sister Boulevard/Oyster Boulevard/Airport Boulevard Proposed restriping of the westbound Oyster Point Boulevard approach (as required of the Bay West Cove development) to provide one left turn lane, two through lanes and one right turn lane will reduce westbound through queuing demand to 195 feet, less than the available 255 feet of storage. Therefore, this impact will be reduced to a level less-than- Cities Point Less than Significant Significant and Unavoidable Less than Significant PAGE 18-5 CHAPTER 18: REVISIONS TO THE DRAFT EIR approach through lanes would receive more than a two percent Increase In traffic (5%) with unacceptable Base Case queuing. 2) Oyster Point Boulevard/Dubuque Avenue/V.S.l0l Northbound On-Ramp The Dubuque Avenue northbound approach left turn/through lanes would receJVe more than a two percent increase in traffic (19.5%) with unacceptable Base Case queuIng In the left turn lane. Acceptable Base Case queuing in the combined left/through lane would also be increased beyond the available storage with the addition of Project traffic. These would be significant impacts. 95th Percentile Queue Tables 11-9 and 11-10 show that the Project would result in significant queuing impacts during the AM and PM peak traffic hour in 2006 at the 95'h Percentile Queue. AM PEAK HOUR 1) Oyster Point Boulevard/Dubuque Avenue/V.S. 101 Northbound On- Ramp. The Dubuque Avenue northbound approach left turn lane would receive more than a two percent increase In traffic (9.6%) with unacceptable Base Case queuing. These would be significant impacts. PM PEAK HOUR 2) Bayshore Boulevard/Sister Cities Boulevard/Oyster Point Boulevard/Airport Boulevard intersection. The Oyster Point westbound approach through lanes would receive more than a two percent increase in traffic (5%) with unacceptable Base Case queuing. Also, acceptable Base Case queuing In the westbound approach left turn lane would be increased beyond the available storage with the addition of project traffic. PAGE 18-6 significant level. 2) Oyster Point Boulevard/Dubuque Avenue/V.S.l0l Northbound On-Ramp There are no physical Improvements considered feasible at this intersection by City of South San Francisco Engineering Division staff to reduce queuing to the Base Case conditions. The impact would remain significant and unavoidable. Mitigation 11-5B: 95th Percentile Queue 1) Bayshore Boulevard/Sister Boulevard/Oyster Boulevard/Airport Boulevard Proposed restriping of the westbound Oyster Point Boulevard approach (as required of the Bay West Cove development) to provide one left turn lane, two through lanes and one right turn lane would reduce westbound through queuing demand to 225 feet, less than the available 255 feet of storage. In addition, the 95th percentile queuing in the westbound left turn lane would be reduced to 80 feet, which IS the planned available storage length. This impact would be reduced to a less-than-significant level. Cities Point .. - Significant and Unavoidable - - - - - - Less than Significant - - - - _. ... ..... - ",-j, HOME DEPOT PROJECT DRAFT FOCUSED EIR -. 3) Oyster Point Boulevard/Dubuque Avenue/V.S.IOl Northbound On- Ramp The Dubuque Avenue northbound approach left turn and through/left turn lanes would receive more than a two percent increase in traffic (19.5%) with unacceptable Base Case queuing in both lanes. These would be significant impacts. Impact 11-6: Year 2020 Intersection Level of Service Impacts. Tables 11-1 and 11-2 show that all but three analyzed intersections would maintain acceptable operation during AM or PM peak hour conditions with the proposed Project. At the Bayshore/U.S.lOl Southbound Hook Ramps/Terrabay access intersection, PM peak hour operation would remain LOS F, but volumes would increase by less than two percent (1.1 %). At the Oyster Point Boulevard/Dubuque Avenue/U.S.IOl Northbound On-Ramp intersection, AM peak hour operation would remain LOS F, but volumes would increase less than two percent. However, during the PM peak hour operation would also remaIn LOS F, but volumes would increase by more than two percent (2.1 %), resulting in a significant impact at this location. Project traffic would also produce a significant impact during the PM peak hour at the Bayshore Boulevard/ Sister Cities Boulevard/Oyster Point Boulevard/ Airport Boulevard intersection, Operation would remain LOS F and volumes would increase by more than two percent (2.6%). These would be significant impacts. HOME DEPOT PROJECT FINAL FOCUSED EIR CHAPTER 18: REVISIONS TO THE DRAFT EIR 2) Oyster Point Boulevard/Dubuque Avenue/V.S.IOl Northbound On-Ramp There are no physical improvements considered feasible at this intersection by City of South San Francisco staff to reduce queuing to Base Case conditions. Impact would remain significant and unavoidable. Mitigation Measure 11-6 Bayshore Boulevard/Sister Cities Boulevard/Oyster Point Boulevard/ Airport Boulevard o Provide a proportionate share contribution to the same mitigations required of the Terrabay Phase III development. oRe-stripe the northbound Airport Boulevard approach to provide a second left turn lane. o Reconfigure the eastbound Sister Cities Boulevard approach to provide two left turn lanes, an exclusive through lane and a shared through/right turn lane. Improvements to the eastbound approach should also provide adjustments to the north curb line of Sister Cities Boulevard, if needed, to allow safe turn movements, which will be conducted by Project drivers. Resultant Operation PM Peak Hour LOS D-51.8 seconds vehicle delay The impact would be reduced to a less-than- significant level. Oyster Point Boulevard/Dubuque Avenue/V.S.IOl Northbound On-Ramp . There are no physical improvements considered feasible at this intersection by City of South San Francisco Engineering Division staff to improve operation to the Base Case conditions or better. The impact would remaIn significant and unavoidable. Significant and Unavoidable Less than Significant Significant and Unavoidable PAGE 18-7 CHAPTER 18: REVISIONS TO THE DRAFT EIR Impact 11-9: Year 2020 Vehicle Queuing Impacts. Tables 11-7 and 11-8 show that the proposed project would result in significant 50th percentile queuing impacts at two intersections during the AM and/or PM peak traffic hours in 2020. Tables 11-9 and 11-10 show that the proposed project would result in significant 95th percentile queuing impacts at three intersections during the AM and/or PM peak traffic hours in 2020. 50th Percentile Queue AM PEAK HOUR Oyster Point Boulevard/Dubuque Avenue/U.S.l0l Northbound On- Ramp · The Dubuque Avenue northbound approach left turn lane would receive a :t4.4% increase in traffic with unacceptable Base Case queumg. PM PEAK HOUR Bayshore Boulevard/Sister Boulevard/Oyster Boulevard/Airport intersection. Cities Point Boulevard · The Oyster Point Boulevard westbound approach through lanes would receive a :t 4% increase in traffic with unacceptable Base Case queUIng. · The Oyster Point Boulevard westbound approach left turn lane would receive a :t4.1 % increase in traffic with unacceptable Base Case queumg. Oyster Point Boulevard/Dubuque Avenue/U.S.l0l Northbound On- Ramp · The Dubuque Avenue northbound approach left turn/through lanes would receive a :t 6.2% increase in traffic with unacceptable Base Case queuing. 95th Percentile Queue AM PEAK HOUR Oyster Point Boulevard/Dubuque PAGE 18-8 Mitigation Measure 11-9A: 50th Percentile Queue Bayshore Boulevard/Sister Cities Boulevard/Oyster Point Boulevard/Airport Boulevard (same improvements as for level of service) · Provide two left turn lanes on the eastbound Sister Cities Boulevard approach. · Stripe a second left turn lane on the northbound Airport Boulevard approach. These measures will not reduce unacceptable westbound through and left turn lane queuing to acceptable levels. Oyster Point Boulevard/Dubuque Avenue/U.S.l0l Northbound On-Ramp . There are no physical improvements considered feasible at this intersection by City of South San Francisco Engineering Division staff to reduce Project queuing impacts to the Base Case conditions. Impacts would remain significant and unavoidable. Mitigation Measure 11-9B: 95th Percentile Queue Bayshore Boulevard/Sister Cities Boulevard/Oyster Point Boulevard/Airport Boulevard (same improvements as for level of service) · Reconfigure the eastbound Sister Cities Boulevard approach to provide two left turn lanes, an exclusive through lane and a combined through/right turn lane. · Stripe a second left turn lane on the northbound Airport Boulevard approach. These measures would not reduce unacceptable westbound through and left turn lane queuing to acceptable levels, Oyster Point Boulevard/Dubuque Avenue/U.S.l0l Northbound On-Ramp · There are no physical improvements considered feasible at this intersection by City of South San Francisco staff to reduce project queumg impacts to Base Case conditions. Impacts would remain significant and unavoidable. .. - - Significant and Unavoidable - - - - Significant and Unavoidable - - .... Significant and Unavoidable - - - - - Significant and Unavoidable - - - HOME DEPOT PROJECT DRAFT FOCUSED EIR - Avenue/V.S.IOl Northbound On- Ramp . The Dubuque Avenue northbound approach left turn lane and combined through/left turn lanes would receive a 7.2% increase in traffic with unacceptable Base Case queuing. Bayshore Boulevard/Sister Boulevard/ Oyster Boulevard/Airport intersection. Cities Point Boulevard . The Bayshore Boulevard southbound approach left turn lane would receive a 4.1 % increase in traffic with unacceptable Base Case queuing. In addition, the Oyster Point Boulevard westbound approach left turn lane would have a demand increased beyond the available storage with the addition of project traffic. PM PEAK HOUR Bayshore Boulevard/Sister Boulevard/ Oyster Boulevard/Airport intersection. Cities Point Boulevard . The Oyster Point Boulevard westbound approach through lanes would receive a :1: 4% increase in traffic with unacceptable Base Case queuing. . The Oyster Point Boulevard westbound approach left turn lane would receive a :1:4.1 % increase in traffic with unacceptable Base Case queuing. . The Bayshore Boulevard southbound approach left turn lane would receive a :1:8.1 % increase in traffic with unacceptable Base Case queuing, Oyster Point Boulevard/Dubuque Avenue/V.S.IOl Northbound On- Ramp . The Dubuque Avenue northbound approach left turn and combined through/left turn lanes would receive a :1: 6.2% increase in traffic with unacceptable Base Case queuing, Bayshore Boulevard/V.S. 101 Southbound Ramps/Terrabay North HOME DEPOT PROJECT FINAL FOCUSED EIR CHAPTER 18: REVISIONS TO THE DRAFT EIR Bayshore Boulevard/V.S.lOl Ramps/Terrabay Access Southbound . Provide a fair share contribution toward lengthening the Bayshore Boulevard southbound approach left turn lane (from 350 to 550 feet) in conjunction with Terrabay providing an additional lane on the eastbound intersection approach. The impact at this intersection would be reduced to a less-than-significant level. Less than Significant PAGE 18-9 CHAPTER 18: REVISIONS TO THE DRAFT EIR Access · The off-ramp lanes would receive a 2.1 % increase In traffic with unacceptable Base Case queuing. These would be significant impacts. Impact 11-10: Project Access Impacts. The proposed Project would have three driveway connections to Dubuque Avenue. The north and central driveway connections would be in the same locations as driveways now serving Levitz furniture. The Home Depot southerly driveway would be in the same location as Levitz's most southerly driveway. The existing Levitz fourth driveway connection to Dubuque Avenue just north of the Levitz southerly driveway would be eliminated. Speeds along Dubuque Avenue adjacent to the Project site range from 35 to 45 miles per hour. The north Home Depot driveway would be 30 feet wide, allowing one inbound and outbound lane, The existing :t150-foot-long left turn lane on the southbound Dubuque Avenue approach to this intersection would be maintained, It would provide storage for about six to seven autos. Dubuque Avenue has two northbound through lanes and one southbound through lane at this location. However, on-street parking IS now allowed adjacent to the Home Depot site between the north and central driveways, If this parking is occupied, northbound flow is limited to a single lane. The central Home Depot driveway would be 30 feet wide, also allowing one wide inbound and outbound lane. No left turn lane is proposed on the southbound Dubuque Avenue approach to this intersection. Dubuque Avenue is 26 feet wide just south of this driveway and widens to 38 feet just north of this driveway. The southerly Home Depot driveway would be 57 feet wide, allowing adequate room for truck turn movements. No left turn lane is proposed on the southbound Dubuque Avenue approach to the intersection. Dubuque Avenue is 26 feet wide in the vicinity of this driveway. Mitigation Measure 11-10: Left Turn Lane · Revise the Project site plan layout in the vicinity of the central driveway In order to widen Dubuque Avenue sufficiently to provide a southbound left turn lane at least 75 and preferably 100 feet long, Sight Lines · Provide low height landscaping along the site's entire Dubuque Avenue frontage that will allow permanent sight lines of at least 360 feet in both directions from each Project driveway. · Dubuque Avenue shall be posted in both directions with a maximum speed limit of 35 miles per hour in the vicinity of Home Depot. . Prior to any of the Home Depot driveway improvements along Dubuque Avenue the owner shall have a sight line study prepared by a qualified Traffic Engineer acceptable to the City Engineer. The study shall analyze the potential for left turns out of the northerly Home Depot driveway. The study and recommendations shall be subject to the review and approval of the South San Francisco City Engineer. · On-street parking along the Project's entire Dubuque Avenue frontage shall be prohibited. . Prior to 2010, at the owner's expense, an intersection control study shall be conducted by a qualified Traffic Engineer acceptable to the South San Francisco City Engineer. The study shall analyze the need for intersection control at the Project's central driveway to minimize traffic conflicts and shall be subject to the review and approval of the South San Francisco City Engineer. These measures would reduce the Project's impact to a level that is less than significant. .. - - - Less than Significant - - - - - - - - - - - - 1 Intersection Channelization Design Guide, Transportation Research Board Report 279, November 1985-see Appendix B. 2 American Association of State Highways and Transportation Officials. PAGE 18-10 - - HOME DEPOT PROJECT DRAFT FOCUSED EIR - 456 350 -L30 + ~ " SOB 'lOTTO SCA.LE A t r 2B4 170 N ~ III ~ .c: ~ III OJ 6845 t + -L 189 350 395 219 ..J ~ ~ - 903 Sister Cities Blvd ' 220 85 J 403 -+ eo -,. Mile 187 430 237 ..Jt~ 19B J 99 -+ 145 -,. -L 1302 -ne Oy~erPomtBwd ,1272 255 J ~ t r 240 -+ 400 -,. 53615 179 8060 144B 219 5 -L 0 ..J t L.- ;:- 05 555 J ~ t r 0- 146316 0 129-,. ~ * Home Depot Project Site ~ OJ 1:: o .g- ot ~ ot CI.l ::J ::J .g Cl -L 286 - 345 .. 686 Gran Ave ~ t r 75 465 122 L 93 27 ~ 1895 120 'ut Grand Ave ) )- 72 ./' 386 202 t J ~ CRANE TRANSPORTATION GROUP Figure 11-13 Year 2006 Base Case + Project PM Peak Hour Volumes ~ t 309 844 ~ -g 0 iii rc ~ .c:: '" iU' Ql 576 -L 602 I 924 I 494 -1221 ..J t ~ .L 255 J Sister Cities Blvd , I 90 ~ J 269j 561 - 65 , J i J I I J J I J 58 546 440 J ..J t L.. TelTi3bay Ph 3 Access 59 j , 228- J 112 , .J J 49 1510 TelTi3bay ..J + Ph 3 Access 83 j 232, 23 1719 TelTi3bay ..J + Ph 3 Access 275, Miller -' J 505 560 541 ..J t ~ 455 J 130 - 100 , J -L 35 -141 r 901 t ~ 543 384 ~ iii 13 .g. "l: -L2125 - 1175 Oyster Point Blvd ,1710 638 j ~ t ~ 284 -- 903 384 386, 200 1801 290 5 ~ 5 3 ..J+~,1 ~ t ~ 310 432 0 ~ * Home Depot Project Site -L 233 - 404 , 801 Grand Ave ~ t ~ 95 101 480 Grand Ave 360 + -L1 ,1 t ~ 593 1 HOT TO 'sCALf ~ N l~ CRANE TRANSPORTATION GROUP Figure 11-15 Year 2020 Base Case + Project PM Peak Hour Volumes 8 Terrabay t ,,15 Ph 3 Access t 2 23 Terrabay t t Ph 3 Access 2 "tI ~ 23 m e t 0 t Tenabay .::: ~ Ph 3 Access Ql 2 IX) t.2 23 -17 Sister Cities Blvd l. ,-3 23-- ~ 3 ~ IX) 1:: o .g. "l: Oyster Point Blvd *(-3)__ 52")- ,-5 ~t~ 22 21 3 57 t ~ t 26 46 ~ * Home Depot Project Site I ~ J q; cu '" I ::. ~ J Q J t.1 Grand Ave 2 l. -7 ,-3 J Grand Ave 7-- ~ 4 ,.OT tD SCALE A. N * Negative numbers reflect vehicles attracted from background traffic l~ CRANE TRANSPORTATION GROUP Figure A Home Depot Trip Generation AM Peak Hour 16 NaT TD .stALE t r 27 ~ Terrabay t Ph 3 Access N 4 45 Terrabay t t Ph 3 Access 4 ~ 45 III t ~ t Terrabay ".ii Ph 3 Access in' 4 !Xl t.4 t. (-4) * 45 -46 - (-3)* Sister Cities Blvd l.- ,- 10 Oyster Point Blvd ,-12 42- ~ 96 -. ~t~ 9 66 57 4 ~ Di 13 Eo ~ ~ t 47 127 ~ * Home Depot Project Site ~ J Grand Ave 2 l.- 11- ~ 4 * Negative numbers reflect vehicles attracted from background traffic t..1 ,-1 ~ 1 l~ CRANE TRANSPORTATION GROUP Figure B Home Depot Trip Generation PM Peak Hour 19 COMMENTS AND RESPONSES 19.1 INTRODUCTION This chapter contains comments on the Draft EIR for the Home Depot Project. Letters received during the 45-day public review period are listed in Section 3.2. Each letter is marked to identify distinct comments on the Draft EIR. Responses to these comments are provided following each letter. Throughout the responses to comments, where a specific comment has been addressed previously, a reference to the response in which the comment is discussed may be provided in order to reduce repetition. As noted in the PREFACE, in several instances responding to a comment received on the Draft EIR has resulted in a revision to the text of the Draft EIR. In other cases, the information provided in the responses is deemed adequate in itself, and modification of the Draft EIR text was not necessary. Responses presented 1n this document focus only on those comments which bear a direct relationship to the Draft EIR and raise environmental issues, as required under CEQA. While other comments that are not directly related to the Draft EIR or do not raise environmental issues are acknowledged and will be forwarded to the decisionmakers, it is beyond the scope of the Final EIR to provide responses to Project merits. The letters received on the Draft EIR are listed below. Each letter has been marked to identify each specific comment in the right-hand margin (i.e., A-1, B-2, etc.). Following each letter, the response to each identified comment in that letter is presented sequentially (for example, the first comment on the Draft EIR identified in LETTER A is identified as A-1 in the right-hand margin of the letter, and the corresponding response immediately following LETTER A is coded as RESPONSE A-1). In order to avoid repetition, where individual comments focus on the same issues raised in a previous comment or comments, the response to those comments may make reference to a previous response or responses. HOME DEPOT PROJECT FINAL FOCUSED EIR PAGE 19-1 ..... CHAPTER 19: COMMENTS AND RESPONSES - 19.2 LIST OF LETTERS - The following comment letters were received by the City of South San Francisco during the Focused EIR's public review period: - A. State of California Governor's Office of Planning and Research, March 17, 2006. B. County of San Mateo Department of Public Works, March 3, 2006. - C. California Department of Transportation, District 4, March 16, 2006. - D. Cassidy Shimko Dawson Kawakami, March 17,2006. E. California Department of Transportation, District 4, March 30, 2006. - F. State of California Governor's Office of Planning and Research, April 13, 2006. - G. Town of Co 1m a, March 14,2006. - - - - - - - - -, - PAGE 19-2 HOME DEPOT PROJECT FINAL FOCUSED EIR 00' . '-11'Ul.L'JQ 1.1.1...,.1. O""'U-DC.~-OO..:tv p.c:. S TAT E OF CALI FOR N I A Governor's Office of Planning and :Research State Clearinghouse and Planning Unit ~Q'~ . (~) .~~~. Arnold SchwaIZenegs~ Governor SlllUl Walsb' DlrectXJr MIU"Ch 17,2006 Steve Carlson City of South Soo Francisco 3]5 Maple Avenue South Sou Frlll1Cisco, CA 94080 Lette r A Subject: lIoinc DepotProjcct SeH#: 2005082032 , -Dear Steve Carlaon: The State Clearinghouse !!Ubmitted the above named Draft EIR to selected state agcnciclI for review. On the enclosed DOCUInentDetrils Report please note that the Clellrlnghouse has listed the stnte agencies that reviewed your document. The review period closed on March 16. 2006, llnd the comments frem the responding agency (ics) is (are) enclosed. If1bis comment paclmge is n01 in order, please notify the State Clear4Ighouse immediately. Please refer to the pr()ject's 1en-digit State Clearinghollse IJUJDbcr in future corresponthmce so that we may respond promptly. ' A~1 ..' PICElSe note 'that Secti,on 211,04(c) oftm: Cillifomia Public Resources c;ode Slates that: ':. ':"A 'respoD:rlble or other public agency shaD only make substantive comments regarding those . activities involved iD a project which are within an area of expertise of the agency or which w:e required to be carried out or approved by the agency. Those eolDlIlCnts sbnll be supported by , specmcdocumenlstion. n These coDlD1etIt1i are forwarded for use in preparing your fmal environmental document. Should you need more information or clarification of the enclosed comments, we Ieconuncnd that you contact the ' CQmmenting agency directly. . , This letter aclmowledges that you bave complied with the State Clearinghouse review requirements for draft environmental documents, pursuant to the California Environmental Quality Act. Please contact the State Clearinghouse at (9l6) 445-0613 if you have my questiDl1S regarding the environmental review process. Sincerely, ~~.~(~.,--' ~ ~- -~ ff-.;; ~ !#'-rexr:y Rob - - ,', Director, State Clearinghollse . Enclosures: ""., '. . cc: Resources Agency' ::',,:".\.'_..: ':_:.. I..... .. I~.,;" . 1400 TEN'I'E. STREEl' P.O. :BOX SQ44 SACRAMENTO, DALIFORNIA 96612-3044 TEL (916) 441i-OOlll FAX {916l 523-3018 www.Dpr.an..gDv r'" ... Document Details Report State ClearJnghouse Data Base - SCfI# 2005082032 Project Title Home Depol ProJecl Lead Agency South San Francisco, City of - Type EIR Draft EIR DescrlptJon The proposed project would Involve the demolition of an existing 156,637 square foot levItz FurnIture building and the construcllon of a 101,272 square fool Home Depot home Improvement warehouse, an adjoining 24,522 square foot Garden Center, and a two-Ievel parkIng structure providing 426 parking spaces. - Lead Agency Contact Name Steve Carlson Agency City of South San Francisco Phone (650)877-8535 ema;/ Address 315 Maple Avenue CIty South San Francisco - Fax - State CA ~p':.~080 - Project Location County SanMaleo CIty RegIon Cross Streets 900 Dubuque Avenue, soulh of Oyster Point Boulevard Parcel No. 015-021~110 Township Range Section - Basa - Proximity to: Highways 82 AIrports SFO Railways UPRR Wate/'WaYB San Francisco Bay Schools Spruce ES, Parkway Heights MS, Martin ESi Brisbane ES, Hillside l.and Use Planned Commercial (P-C) I Business Commercial - - Project Issues AIr Quality; Cumulative Effec1s; Drainage/Absorption; Flood PlalnIFfooding; GeologlcJSefamlc:; Landuse: Noise; Population/Housing Balance; Public Services; Recreation/Parks: Sewer Capacity; Soil Erosion/Compaction/Grading; SoUd Waste; Toxic/Hazardous; TralfidClrculatlon; Water Quality; Water Supply; Wetland/Riparian - Reviewing Resources Agency; Regional WalBr Quallly CDntrol Board, Region 2; Department of Paries and AgencIes , Recreallorli Native American Heritage Commlsskm; Inlagraled Waste Management Board; Department of Fish and Game, Region 3; Department of Water Resources; California Highway Patrol; Caltrans. Dlstrlct4; CallTans, Division of Aeronautics; Department of Toxic Substancas Conlrol - - Dat!3 Received 01/31/2006 Start of Review 01/31/2006 End of Review 03/16/2006 - - -, Nole; BIaTlks In data fields result from lnsufficlent information provided by lead agency. - - CHAPTER 19: COMMENTS AND RESPONSES Letter A: State of California Governor's Office of Planning & Research, March 17, 2006. Response to Comment A-l: Comment noted. A letter from the California Department of Transportation (Caltrans), District 4 was received on March 16, 2006, and was the only comment letter received from a state agency within the state review period. HOME DEPOT PROJECT FINAL FOCUSED EIR PAGE 19-5 ..lar .1-" c.uuo J..I..uJ.nn ~~ II ur i:J~r rLnllJl~ll'" U~V.L O....JU-Oc..v-QO.o:J..;;:J t'.t: r-'~' "- Department of Public Worl~s RECEIVED MAR 0 8 2006 BOARD OF SUPERVISORS MARK CHURCH RICHARD S. GORDON JERRY Hill ROSE JACOBS GIBSON ADRIENNE T1SSIER NEIL R. CULLEN DIRECTOR PLANNING DEPT. COUNTY OF SAN MATEO 555 COUNTY CENTER. 5'" FLOOR' REDWOOD CITY' CALlFORNlA94063.1665 . PHONE (6S0) :363-4100. FAX (6501 361-B220 March 3, 2006 Mr. Steve Carlson, Senior Planner City of South San Francisco -Planning Division P.O. Box 711 South San Francisco, CA 94083 Letter B Dear Mr. Carlson: Subject: Notice of Availability ofPubli<: Review for the Draft Environmental Impact Report (DEIR) for the Proposed Home Depot Development, City of South San Francisco (APN 015-021-] 10) Thank you for the oPPOltunity to review the Draft Environmental Impact Report (DEIR) for th~ subject project. The San Mateo County Department of Public Works, in its capacity as the Administrator of the San Mateo County Flood Control District (District) which; includes the Calma Creek Flood Control Zone (Zone), has reviewed the document and offers the following comments: · Since the Home Depot project site is located outside ofthe Zone boundaries and properties outside of the Zone boundaries do not contribute financially to the Zone's revenue and maintenance of the District's facilities, existing and future stom) water runoff from this site must not be directed into the District's flood : control cllannel (Calma. Greek). Any re'ised s~orI11 ~aill pl.aIls (MJtigat!on _.' Measure 7 -1 b) must include routing of tbe r(moff to the Oyster Point Boulevard outlet and must be submitted to the District for review. . B-1 .. Page 7-6 of the OEIR presented a discussion on NPDES Phase I stonn water program regulations and requirements, and page 7-9 briefly discussed the San : Mateo Countywide Slonnwater Pollution Prevention Program (STOPPP). ; However, requirements of the New Development and RedeY~lopment . Performance Standards (Provision C.3) oftbe STOPPP PClluit amended by the · California Regional Water Quality Control Board in Febntary 2003 were not , discllssed. B-2 r-'~ ... Mr. Steve Carlson. Senior Planner, City of South San Francisco, Planning Di vision Subject:. Notice of Availability DC Public Review fOT the Draft Environmental Impact Report (DEIR) for the Proposed Home Depot Development, City of South San Francisco (APN 015-021~110) March 3,2006 - - Page 2 - If you have any questions, please contact Mark Chow at (650) 599-1489, or myself at (650) 599-1417. - ~ Very truly yours. - - Ann M_ Stillman, P .E. Principal Civil Engineer Utilities-Flood Control-Watershed Protection - AMS:MC:mmy P:\USERS\ADMIN\CmESISSFUOO6\<JOO Dubuquc Horne DCJlllI - DEIR Review.dOt: G:\USERSIUTILlTY\Colm.o Creel, FCO\WORD\Revie'NExlemal Pmjecl\20051900 Dubuque Home Depol- OEIR Review.doc File No: F-149 (9H) - cc; Mark Chow, P.E., Senior Civil Engineer. Utilities-Flood Control-Watershed Protection - - - - - - - - - CHAPTER 19: COMMENTS AND RESPONSES Letter B: County of San Mateo Department of Public Works, March 3,2006. Response to Comment B-1: The County of San Mateo Department of Public Works, San Mateo County Flood Control District will be given the opportunity to review and comment on the Revised Flood Control Plan. However, requirements of other agencies including the City of South San Francisco Public Works include the use of vegetated swales and infiltration areas for treatment of storm water runoff from parking lot areas. Mitigation Measure 7-1 b will be revised as follows. Mitigation Measure 7-1b Revised Storm Drain Plan. If the hydraulic analysis described in Mitigation Measure 7-1 a cannot show that the existing storm drain has capacity for Project flows, the applicant shall submit a Revised Storm Drain Plan for the Project. The revised plan shall include drawings of the new proposed system and shall include calculations of the new system capacity. All runoff from the site must be routed to the Oyster Point Boulevard outlet and must not be directed to the San Mateo County Flood Control District's flood control channel (Colma Creek watershed). or must be infiltrated at the project site. Methods such as on-site storm water detention, storm drain line upgrades, and an infiltration area shall be incorporated into the project design. Mitigation Measure 7-2b requires incorporation of a vegetated swale and infiltration area for treatment of storm water runoff from parking lot areas. Any drainage changes shall be reviewed and approved by the City of South San Francisco and the San Mateo County Flood Control District prior to tentative map approval. Response to Comment B-2: The section describing the STOPPP shall be amended as follows to include information on the C.3 requirements. SAN MATEO COUNTYWIDE STORMWATER POLLUTION PREVENTION PROGRAM To comply with the CWA, San Mateo County and the 20 cities and town in the County formed the San Mateo Countywide Stormwater Pollution Prevention Program (STOPPP). STOPPP holds a joint municipal NPDES permit from the San Francisco Bay RWQCB. The permit includes a comprehensive plan to reduce the discharge of pollutants to creeks, San Francisco Bay, and the ocean to the maximum extent possible. Amendments to the program as instituted by the RWQCB in February 2003 included provision C.3 which strengthens the New Development and Construction component of the STOPPP Stormwater Management Plan (SMP) component requirements by identifying and implementing appropriate site design. source control. and stormwater treatment measures. HOME DEPOT PROJECT FINAL FOCUSED EIR PAGE 19-9 no. .I. CJ c..UUQ c... .or .". ........ . I vr ..:J.o:Jr rL..n11l1..1.11U U.1.V.L Q...,)U-Oc...::J-OOvv p..:; B3/16/2a66 13:34 51828&5559 CAL TRANS PAGE In STATKOF ClI1.ll'ORNlA IlU~~3. n...1II3mRT....TlON ANOHOI1~1NG AG~lJt:V ARNOLD SClfW ARZnNBnGPJI. nn~ DEPARTMENT OF TRANSPORTATION III GRAND AVENUE P. O. BOX 23660 OAKLAND, CA 94623-0660 PHONE (510)286-.5505 Lette r C FAX (510) 286-5~59 Try (800) 735-2929 it Flu: JOU' pilWrr! 8, II/W.:I tJ/kiltlrl March 16,2006 Mr. Steve CSlllson City of South San Francisco Planning Department 315 Maple Avenue South San francisco, CA 94080 SMI01415 SCHN200S082032 Oenr Mr. Carlson: HOME DEPOT - DRAIT ENVIRONMENTAL IMPACf REPORT Thank you for inclucling the California Department of Transportation (Depmmcnl) in !he environmental review process for the Home Depot project. The foUowing commerus"ate based on the Draft Environmental Impact Repon (DEm)~ addiljon81 Comments will be forthcoming pending final review of the DEIR. Since the Traffic Study Technical Appendices were received only this week. highway operations comments have been delayed. Please note that since Callrans review requires supporting data contained in Traffic Study Technical Appendices, these should be sent along with lite environmental document. As lead agency, the City of South San Francisco is responsible for all project mitigation, including any needed improvemenrs to state highways. The project"s fiUr share contribution, financing, sc::hedllling, implementation l'esponsibilities and lead agency monitoring should be fully discussed for all proposed mitigation mCll5ures. The project's specific traffic mitigation fee should be identified in both the Traffic Impact Study 8Dd the OEm. Required roadway improvements should be compJe~d prior to issuance of lhe Certificate of Occupancy. An encroachment permit is required for work in the State RighI of Way (ROW), and the Department will not issue a pennit until Our concerns are adequately addressed. Therefore, We strongly recommend thai the City work witb both thB applicant and the Depanment tp ensure that our concerns are resolved during the CEQA procen, and in any case prior to submittal of a permit application. Further comments wlll be provided during the encroachmenl pennit processj see the end of Ihis Jetter for more infonnation regardillg encroachment pemUls. Travel Demond Forst:lUting I. Project trip generation estimates for approved development in the City are lower than the average rates cited in the Instirute of Tranrporration E"s;neel's Trip Generm{oM Manual, 111 Edirion. These should be reviewed and explained. Page I J -36, Table 1 )-11, DEm. C-1 .ClllrtdIU illfprrwu Mt:Jbll/l)' DCron Cllljfuf71io" ~3/16/2eaG 13:34 Mr. Sl;.e CarlUllJ M.n:b IS, 2006 Pap 2 SlEl2865559 CALTRANS PAGE B2 2. Figure 11-15 should represent the nel change of 2020 trip generation. Thar is, the trips in and out should ma.tch rhose 01 Table 1 I.J5C rather (han Table J1~lSa, Page 11.57. OEm. 3. Review the percentage of AM peak hour trips in and our shown in Table 1l-15A. These should be mUth higher than the values shown. Page 11-57, DEJ:R. CulJUTGI Rej ou'ces Pursuftm to CEQA Section 150154.5 and Public Resources Code Section 5024.S, any ground- disturbing work in State ROW must be preceded by an archaeological record search at the Nonhwest Information Center before an encroachmenr permit call be issued. Ent:TOachm,,,t Permit Work that encroacbes onto the State ROW:requires an encroachment permil that /s issued by lJ1e D~partment. To apply, a completed encroachment permit 6ppJjeation, envjronmental documentation, and five (5) SetS of plana clearly indicating State ROW must be 8ubmitred to the ackbl:ss below. Traffic:'n:Jaled mitigation measU~5 should be incolporated into lbe COnstmction plans during the cncroachD'lCnl permit proceliS. See the website link below lor more infonnation. blip :1lwwW.dot.ca.gOVlhq/traffOPsldevcJopserv Ipermits! Sean NOlZari, District Office Otie:f Office of Pennits CaJifomia DOT, District 4 P.O. Bo~ 23660 Oakland, CA 94623-0660 Please (eel free to call or emBiJ Patricia Maurice of my starr' at (510) 622-1644 or Plttricia rnaurice@dot,ca,e:ov with any questions regarding this If!Uer. Sincerely, t1~s~~ District Branch Chief IGRlCEQA C: Ms. Teny Robens, Slate Clearinghouse Mr. David Tail, The Tajl Group "Cl2/ITQIIJ i'"Pf'(J~'J IlIUMii)' ltcrnl.l CaJiftmrld" f".'" ... - - C-2 - C-3 - C-4 - C-5 - - - - - - - - - '- - - CHAPTER 19: COMMENTS AND RESPONSES Letter C: California Department of Transportation District 4, March 16, 2006. Response to Comment C-1: Trip generation presented in Table 11-11 of the DEIR for approved developments east of the U.S.101 freeway should not match what would be projected using ITE "average" trip rates. All developments in this area have "City" and County Congestion Management Agency (CjCAG) Transportation Demand Management plans which must be implemented to reduce peak hour trip generation. All business will be monitored (and penalties assessed, if required) in order to ensure compliance with the TDM programs. Response to Comment C-2: PM peak hour volumes shown at the project driveways in Figures 11-13 and 11-15 have been revised to reflect proper trip generation levels. Volumes change by about 10 percent. This results in no changes to project impacts or required mitigations at any location. Also, volumes at all intersections away from the project frontage are correct. Response to Comment C-3: Home Depot trip generation projections were obtained from Trip Generation, 7th Edition, by the Institute of Transportation Engineers, 2003. Land use code 862, "Home Improvement Superstore" was utilized. AM peak hour average trip rates used in the EIR are directly from the publication (page 1601) and have then been increased by 2.5 percent to provide a conservative analysis. Response to Comment C-4: Comment noted. Response to Comment C-5: Comment noted. HOME DEPOT PROJECT FINAL FOCUSED EIR PAGE 19-13 ..dl .L, L.Uuy ""T_ .L...... I' .....l I' U r- u v J- r L I' 11 . 1 ~ 11 "" U.J. V .J. 0 __ U ~ Q C. ;3 - D 0 ..:J V A PHOFE.'SIOt.J".L CC1Afta".A"T'.~1f CASSIDY SHIMKO DAWSON KAWAKAM I Lette r D March 17, 2006 Via Facsimile and Hand Delivery Mr. Steve Carlson, Senior Planner City of South San Francisco Planning Division P.O. Box 711 South San Francisco, CA 94083 Re: Initial Study for Home Depot Project. Application No. P05-0035 Dear Mr. Carlson: On behalf of our client, Home Depot, we wish to compliment the City of South San Francisco on a thorough and accurate Draft Environmental Impact Report ('.Draft EIR") for the construction ofthe.proposed Home Depot store (the "Project") to be Located at 900 Dubuque Avenue in the City of South San Francisco. While we believe that the Draft EIR. is legally sufficient under the California Environmental Quality Act ("CEQA"), we submit the following comments in order to clarify certain language and mitigation measures set forth in the document. Thank you for the opportunity to submit these comments. 1. Hvdrology. a. J\;filigatiOll Measures 7-1a and 7-lb. Mitigation Measure 7-1aofthe Draft EIR requires the applicant to conduct a hydraulic analysis of the proposed storm drain system from the Project site to the Oyster Cove outlet to establish whether the existing storm drain pipe has capacity to accommodate the increased flows resulting from the proposed Project, based on the stann drain plan that was previously submitted to the City. In the event that the storm drain does not have sufficient capacity to contain the additional flows, Mitigation Measure 7-1 b must be implemented. Mitigation Measure 7-1 b requires submittal of a revised storm drain plan for the Project that will include drawings of the new system and calculations of the new system's capacity. Home Depot agrees that these mitigation measures are adequate for the Project as proposed, and would mitigate Impact 7-1 to a less than significant level. However, Home Depot plans to prepare and submit to the City a revised storm drainage plan for the Project that will closely follow the drainage patterns of the existing Levitz site (approximately half of the site cUITently drains to the railroad right of way, while the other halfoftbe site drains to 20 CA.L1rOR~HA ST. SUITE 500 s"'~ FRANCISCO. CA 94 II TELEPHONE, \ ~ I :;) 788. Z 0'" 0 FJ\CS 'I'lILE: (4 I ;;, 7 8 8 . 2039 www c::.dklaw cnm p.e D-1 :Mr. Steve Carlson, Senior PlalUler City of South San Francisco l\.1arch 17, 2006 Page 2 Dubuque Avenue). Because the Project would have almost the same amount of impervious surfaces as the existing Levitz site (see the exhibits entitled "Existing Impervious Surfaces" and "Proposed IrnpeIVious Surfaces," attached) the site's drainage pattern would correspondingly remain consistent with the existing drainage patterns after the Project is constructed. Home Depot therefore proposes revisions to the Mitigation Measure 7-1 b to allow for ilia! possibility and to eosme that, in any event, the Project will not exceed the drainage capacity available far storm water runoff from the Project site and thus have less than significant storm drainage impacts. The proposed revisions are as follows (strikethroughs indicatc,deleted text and double underlines indicate added text): Revised Stonn Drain Plan. If the Storm Drain Analysis described in ~tigation Measure 7-1a cannot show that the existing storm drain has capacity for Project flows, or in lieu ofimolementinJ! Mitieation Measure 7-1a. the applicant shall fillbmit a Revised Storm Drain Plan for the Project. The revised plan shall include drawings of the Dew proposed system, and shall include calculations oftbe new system capacity. If.the revised plan shows drainage to anv other_~l:llli~ I2!J1wgue Avenue and the railroad right ofwav_ or ifthe revised plan would exceed the storm water runoff c20acitv at the storm drain mue(s) in ouestion. the followinQ methods Methods sllf::h as OR site storm .yater detention, slOIm draiB liB:6 lipgrades, and all infiltratieH area shall be incorPorated into the Project dcsign~ · On-site storm water detention: and/or · Storm water drain line umrrades. - Mitigation Measare '7 :!b requires ineelfloratioB of ',agctated swala and infiltration area for treabnent of storm water nmefffrom parking lot areas. Prior to the appre',al of tho Pillal Map issuance of a grading: permit for the Proiect, changes to the Project Drainage Plan shall be subject to the review and approval by the City of South San Francisco Storm Water Coordinator ~d the City Engineer. b. Mitigation Measure 7-2b. Mitigation Measme 7-2b lists certain design measmes to be incorporated into the storm drain system, including a catch basin at the end of the required vegetated/grass swale to direct runoff into an infiltration area_ This method of infiltration is infeasible, because according to the geotechnical report for the site, the upper 5- 7 feet of the soils underlying the site are primarily a clay and silt mix. This would prohibit any type of infiltration of stonn water into the ground. Home Depot therefore proposes the following changes to Mitigation Measure 7-2b (strikethroughs indicate deleted text and double underlines indicate added text), which would mitigate the identified impact to a less r-- .. - - - - - - - - - - - - 0-2 - - - - ~lr. Steve Carlson, Senior Planner City of South San Francisco March 17,2006 Page 3 than significant level: Additional Storm Water Treatment Control Methods Shall Be Incorporated into the Project The Project shall incorporate one of the following design measures into the stann drain system: o A vegetated/grass swale along the perimeter ofthe parking lot~th_i! catch basin at the end of the swal~ which sban connect to the storm drain svstem:.JJr · Another {we ofmechanical filtration svstem that will clan fv stann water leavinl! the site to a deeree that is accen..rnble to the City of South San Frmcisco Citv Enaneer and Stann Warer CoordiMlQr, · .^~ notched omb along the parking lot perimeter to direl~t flow from-lhe parking area into the swale · f~ catch basin at the end of the swale shall direct runoff into an infiltratien area · .\11 maintenance YlH"dlservioe areas shall be eo';erod The Drain Plan shall be subject to the review and approval of the City ofSoutb San Francisco City Engineer and Storm Water Coordinator. 2. Traffic. a. Overland Peer Review. Home Depot asked its consultant, Overland Traffic Consultants ('LOverland"), to prepare a peer review of the traffic analysis tbat was prepared by Crane Transportation Group and included in the Draft Em.. A copy of Overland's review is attacbed hereto. Overland has concluded that the Draft EIR adequately addresses tbe Project's potentially significant traffic impacts. Overland lIas suggested, and Home Depot now requests, that where certain mitigation measures require a '"fair share contribution" toward traffic improvements, the Final EIR for the Project include additional information regarding the total cost of each improvement, the estimated percentage of the total cost for which Home Depot would be responsible and the resulting fair share cost for which Home Depot would be responsible. b. Conservative Nature oj Analysis. The traffic study prepared for the Draft EIR is based on certain "worst case" assumptions, which resulted in a very conservative scenario analyzed in the study. This is an effective method to use in preparing the Draft EIR, as it leads to the identification of every traffic impact tbat could possibly occur, but in reality the traffic impacts of the Project wi1llikely be far less intense. The three primary '"worst case" assumptions are as follows: r' -. 0-3 0-4 j L-~II'II"'IJU U.L....-L V.....,U Ut-..... uu..",Ju !Vir. Steve Carlson, Senior Planner City of South San FrancisGo March 17,2006 Page 4 · The Project's average trip generation rates were increased by 25% "in order to provide a safety factor for impact analysis." Thus, the impacts to affected intersections have been substantially inflated as compared to impacts based on trip generation rates recommended by the Institute of Transportation Engineers (Trip Generation, 7th Edition, 2003). · No "diverted linked trip capture" or "pass-by trips" were proj ected for tbe Project during tbe AM peak hour, and only a minor level of such trips were projected during the PM peale hour. The Institute ofTraftic Engineers Manual allows for up to 40% of the trips to home improvement stores to be counted as pass-by trips, i.e.. vehicles that would still travel past the site even if the store did not exist. While the maximum of 40% may not be applicable in the present situation, based Home Depot's experience with other stores in similar types ofloeations it is expected that at least 10% to 15% of the AM and PM peak hour trips to the store in question will be pass-by trips. Therefore, the number of trips that the Project would-actually generate is likely to be at least 10% to 15% lower than the number of trips on which the Draft EIR analysis is based, and the actual traffic impacts of the Project would be correspondingly reduced. o An average of 30% of the Proj eet' s AM and PM peak hour trips were expected to come from the San Francisco/Brisbane area, whereas in reality this nwnber will likely be much lower due to demand from those areas being captured by the new Home Depot in Daly City and the proposed Home Depot in San Francisco. Therefore, traffic impacts resulting from traffic to and from areas to the north of the Project site (for instance, impacts at the intersections of Bayshore Boulevard/Sister Cities Boulevard/Oyster Point Boulevard/Airport Boulevard and Oyster Point BoulevardfDubuque AvenuelU.S. 101 Northbound On-Ramp) are likely to be less than estimated in the Draft ElR. We are not necessarily recommending that the City alter the conservative approach of the Draft EIR, but we do think that it is important fOT decision-makers to understand the conservative nature of the approaches selected, which likely overstate Project impacts. c. Mitigation Measure 11-10. Home Depot has the following comments regarding Mitigation Measure 11-10: · Home Depot supports the required widening of Dubuque Avenue to provide a southbound left turn lane into the Project's center Dubuque Avenue driveway. The preliminary layout ohms proposed mitigation is shown on two ofthe attacbed exhibits ("Center Left Turn Exhibit" 1"'.... .... - - - - - - - - - - 0-5 - - - - . '--1111I.....1'~ ~.L".&. _~....... '-"'L..-..J _.....~'-'" Mr. Steve Carlson, Senior Planner City of South San Francisco :Ylarch 17,2006 Page 5 and "Site Plan No. CA-964n"). · This mitigation measure also requires the City of South San Francisco to post speed limit signs along Dubuque Avenue and to prohibit on. street parking along the Project's Dubuque Avenue frontage. While Home Depot encourages the City to take these actions, and the City has indicated its intent to do so, mitigation measures must be feasible and must be directed toward the project sponsor, i.e. tbe applicant. Therefore, it is inappropriate for the mitigation measure to require that the City undertake any actions, and those requirements should be removed. · The mitigation measure would also prohibit left turns out of the northernmost Home Depot driveway along Dubuque Avenue, which appears to be inappropriate. The stated need for this prohibition is that "adequate sight lines [305-360 feet for travel speeds of 40-45 miles per hour] do not exist to allow for cars to safely turn left from the northern driveway" (Draft EIR, p. 11-77). However, the mitigation measure independently requires that landscaping be maintained to "aUow permanent sight lines of at least 360 feet in both directions from each Project driveway:' Thus. the stated problems with the left turn movement would no longer exist with the implementation of this mitigation measure. With adequate sight lines to the south, plus the proximity of the existing traffic signal at the Dubuque Avenue southbound off-ramp intersection to the nortb~ limited - if any - traffic conflicts would occur at this location. As such, the proposed left turn would not result in any significant traffic impacts that required mitigation. Therefore, Home Depot requests that this requirement be removed. · The mitigation requires consideration ofan "all way stop" control at tbe Project's central driveway intersection "if needed." This requirement provides no performance standard to establish when such a control would be "needed." More fundamentally, the other components ofUlls mitigation measure (e.g, provision of sight lines of at least 360 feet in both directions) will t:nsUfe safe traffic conditions at tbe Projecl's central driveway intersection such that installation of an all way stop control is unnecessary. Therefore, Home Depot requests that the "all way stop" component be removed from this mitigation measure. d. Mitigation Measure 11-11. Mitigation Measure] 1-11 requires revisions to the parking layout for the Project to provide additional channelization and storage for inbound vehicles at the north Proj eel driveway. Home Depot has prepared a preliminary t'.u 0-6 Mr. Steve Carlson, Senior Planner City of South San Francisco March 17,2006 Page 6 plan of the revised layout, which is shown in the exhibit attached hereto ("Site Plan No. CA- 964n") and will be submitted as an amendment to the Project application in the near future. As you can see, the revised layout changes the geometry of the ramp 10 the second floor of parking, so site circulation \vithin the northern section of the parking garage will be adequately managed even wi thout the striping/signing plan required by Mitigation Measure t 1-11. Therefore, once the Project application has been amended to reflect the revised layout, the second requirement under Mitigation Measure 11-11 will be inapplicable. 3. Alternatives. Home Depot believes that the alternatives analysis set forth in the Draft EIR includes a reasonable range of aHematives to the proposed project, as required by CEQA Guidelines ~ 15126.6. The alternatives analysis correctly concludes that the proposed Project provides the best balance between satisfaction of the project objectives and mitigation of environmental impacts to the extent feasible, as described and analyzed in the Draft ElR. As noted in the Draft EIR, neither the No ProjectAltemative nor the 0.50 Floor Area Ratio Alternative would meet the project goals and objectives set forth on page 3-2 of the Draft EIR. These goals and objectives include the following: (i) to comply with the objectives of the General Plan, the City Planning Code and all applicable codes, plans and ordinances of South San Francisco; (ii) to provide new retail employment opportunities to residents of South San Francisco and surrounding areas; (iii) to provide a source of significant new sales tax revenue to South San Francisco; and (iv) to satisfY the home improvement needs for both do~it- yourself customers and local contractors in South San Francisco and the surrounding area by offering Home Depot's complete range of home improvement services and products. . 4. Revised Charts. The charts on pages 7-11, 7-16, 7-18, 9-2 and 9-3 of the Draft EIR were formatted incorrectly and are difficult to read. Please provide revised charts in the Final EIR. Thank you very much for your consideration of this letter. We look forward to continuing to work with you during the CEQA and entitlements process. lfyou have any questions or conunents, please do not ]}esitate to caU me at (415) 788-2040. Very truly yours, ~.~u=- cc: Greg George Ann J erhoff Frank Coda Caroline Shaw David Tait Jerry Overland r. . .. - - - - ... 0-7 .~. - - 0-8 - - - - - c7' A' DO ~ ' ~.,~ / [77 ///. / / ~~ ~ ~ c=:J c::::J DO DO I DO 00' u~~ {9-/ --","--1 R IlIiIIileBB D . a I (OJ N ,- N C 546 sw WlllC1gale tJt. 5. ro ~ em 91221 lel ~W5<<l . fa bInA:S2!lC~ ~.DCICP'It.~.oIIOIfttTI..-___ II .) ~ wOO c':I:! 5~ zr (j)~ c::::J C=> EXISTING IMPERVIOUS SURFACES HOME DEPOT. SOUTH SAN FRANCISCO ntE HOME DEPOT SOUTH SAN FRANCISCO. CI\UFORNIA t- .. ..... ~"f d ~ ::c 1l -l ~ ~g> (j) OS' -4 co!!] Z Ul C;;l r;) VlUl c::Ul> l/l ::llc::;o C ~~;' ::u n~.. -., 0g )> ~ r-l to utO ~:..... . ~ ~lJI -Ill UlOu D..,l..l .."......!'-J -ll!~ (lIDO! WOtJ) 0,00 ~~:l PROJECT NO. HOD4B60 DATE: 03/14/06 BY: MAS SCALE: NTS SHEET NO. EX1 J ~ ~/ l3t(~ ...'A....' R laII{t:I!iBI D I: a I Q" . N 0. S41!5: n.W~" Or. St. OD p~ [A m21 To<. :ill&1112~DO fiD. m.11S2G;JO ~.---..~"""~..~ ............' ....... ........ "-~ --- :r: o ~ m o m l) o -! " j t f ~ ~ ---"-- ---.lI- " =C'" -"---'?,'J ~ C ~ =F -I-- 0 --r:- @_____ <Il, ..........- h>--< -----!!..-:T.J=w= .,p . c:=t= =F~ u ~?n~ -+- cY. -.- =r7 C7 ,/ PROPOSED IMPERVIOUS SURFACES HOME DEPOT - SOUTH SAN FRANCISCO . THE HOME DEPOT SOUTH SAN FRANCISCO. CALIFORNIA , . , .f , l -n ~ -I "lJ fT1,,0 ;0 ~...,~ 0 5~r "lJ COlf) 0 tnC::' 1Il III UJm J"'1 elf))> 0 ;Uc;:o :;; :;u 1""1 1Il "'1)> C ~>.. :::0 III () 'I .. G )> .. n [Tl 1Il '" to l,oW fo.)" _ Ll "" utO "VI lhOlol o t.o ..,,::J!,> -1/10 R g: <0 ..0 0 III w:"O ~~~ PROJECT NO. HOD4860 DATE: 03/14/06 BY: MAS SCALE: NTS SHEET NO. EX2 r-- ... - -, - - - - - - - - - - r' ~~ Over1and Traffic Consultants 27201 Toomey Road 1# 206 , Santa Clarita. CA ,91355 PhDne: (661.) 799 '- 8423 fax: (661) 799 - 8456 E-mell: lIZ@overJaodtr.!lfflc.com March 2. 2006 Ms. Caroline Shaw Greenberg Farrow 15101 Red Hill Avenue, Suite 200 Tustin, CA 92780 RE: Review of the Traffic Section of the DEJR for City of South San Francisco Home Depot (January 2006) Dear Ms. Shaw. Overland Traffic Consultants has prepared this overview of the traffic section contained in the DEIR dated January 2006 fur1he proposed Home Depot located on Dubuque Avenue south of Oyster Point Boulevard in the City of SoulhSan Francisco. Overall. the traffic sections adequately address the potential project ,and cumulative traffic impacts of the proposed new store as well as potential access and internal circulation impacts.on-site. AdeQuacv of Analvsis - In our opinion, the traffic analysis correctly identifies short- term (2006) and long-term (2020) traffic impacts associated with the project and future cumulative developmenl Furthermore. the analysis methodology and supporting documentation appears to be adequate and thoroughly researched with staff approval; . Overall the traffic impact analYSis appears to be conselVative in that the estimated 'Project generated traffic volume has been increased by 25% above t1ie ITE average traffic rates for home improvement stores. Furthermore. the project traffic impacts are based, on an unconstmlned assignment of the estimated peak hour traffic flow, in other words, the routing of the project traffic to and from the project site is not adjusted to account for the level of future intersection congestion. An unconstrained assignment of the projectlrafficflow does present a conservative ''worst case" analysis of the project traffic impacts at the adjacent study intersections. A Traffic EmBnee"n~ and TralJsDDl'tation Plannlnll Consultine Services ComlJanv ~.L.' _. _....., . _""".&J'~ ~~ Y.L ........,..... '-"'-..... ..........-...... Ms. Caroline Shaw March,2. 2000 Page 2 We recommend that more specifiC details of the Home Depotproj"ect's fair.share contribution to the intersection improvements be included in the Final EIR so Home Depot can realize the financial exposure'of those improvements (e.g.; cost, fair share %, payment sChedule, etc.). Access and ,Imemal Circulation - We agree with the widening of Dubuque Avenue , along the project frontage to provide fora left turn lene, the prohibition of on-street parking along the Dubuque Avenue frontage and the lowering of the posted speed limit along '!his segment of Dubuque Avenue. We also agree that proper sight lines , need to be provided for the project's driveway locations. Left turn access from the northerly driveway should be evaluated with the recommended modffications to the streeHrontage along Dubuque Avenue (Le., street widening, lower posted vehicular , speed limits, and low height landscaping). Upon review ofthe sight lines with these recommended modifications. a determInation should-be made as to the adequacy of the sight lines and left tumegress at the northerly driveway.- In summary" we believe the traffic impact analysis prepared for the South San FranciscoHome Depot project is adequate and provides the decision makers with the information necessarY to rule on the project. , Please contact me if you need any additional' information, have any' comments or questions. , Sincerely, 9~ ~O--:~~-R Jerry Overland A Trame Enl:ineer/ng and Transportation Planning Consultlnli! Services Comoanv r-". .L .L .... -, - ,- c:::::=:) ;;i '---h~1'_h L~-'::~~hF?j ...-..-{(.- -....'. "t1~n ."-' l --~~~ .- '-"-_!~'--- -~:.._~.. .. --...;r. -.~]~- , =~j.- ""wi I L.IU111.LIIU U.1.V.1. OyU-oc.i;;J-OO.,:)v 0>( X <l ~7 { :r: o ~ m o m '1J o -i ---- , f ~ :--_i . ! ! I I I ! ! j ! I .l. D F. I".,' I ! t, :; .' ;;. G) )> :0 0 m z () ~ iT1, ::D c::::::J '=jt-. ....__.~t-._. -"---rr- -):'-' '\. ~ ~ ~'1 \ t "Jr" :J1 a~ "'" " ~=' ... g~- m ~~ '" '" .c~ ~ :0: ~ ::; c W " ,.. ~ .. ;; <:: ;, ------r-:----. i--- --4~- ;~ ..... x ._~~-~- ';~_.... -"i----- ~=--=f7 C7 ... '" c C l':! ~ -----.--- ". . ;~ . ./ /'- ./ / PROJECT NO. HOO400(} DATE: BY; SHEET NO. 03 f14106 IJIAS H CENTER LEFT TURN EXHIBIT HOME DEPOT.. SOUTH SAN FRANCISCO THE HOME. DEPOT SOLmi S~ FflANCISCa, c.a.uF0A~!A IB'i'IIl!IIlIlIIISBI ................iPlC ......o-Ih:::'l ...-- 1"- it: ii ~ ~ ::: ~ \Ii ~ f :: Eth:;;~ G --B;( ~ !l;l;!lz 5 i~1! ~ E 50!. U C) ~!5 9 r-. .&.- - ~r- ~':J ~~~IH ~ ~~~:; I :~:. ~ ~ ~ h~ .~D~ ;;- ~ ~ !;; U 1,,- .. ~~ >....1 ~ oa= :!F,!l ~ ~~ h~~ ~ H il!~' ~ ~!~~ ~i~~ f ~ ~~ -~X,~ ~ ~ ,~!t, ~ f!,d run 3 2;31: ..iM~ ,.at-e <I: i' . g - ~ bi. I- t,l . I -:! C I~ ~ I ie ~ ~l;.~ 0.06 1'1 ... l1~P ~ 3l i '~.! wM - ~ ~~2~ 1 .a g &~ Q - I".. ;~y- je::.. s UJ ~ Ii ~ nn~ "; 'r' ~ :i!<~ I -ll en ~~;gi ~;!~ I i 1 g5~ .~I !-~ <(I :;:~,B~ ". f3 ~ .5. U1<~ a ,_~ ijii~E ii ;i~ I mi iI~~! II ~~~. 0 i'ti!Q~ j~ ~fl :'" ~~~" 2 ! l Q._" _ ~ 04. aa illite ,.~;lI,d b, ... ~~:! " ." ~... " ~ :3~. ~ ~~;. c~;: ~ is ;, ~ fi~3 ~ flij! . l~!" !~ ....~g ..,: y~il i" r e ~ I- O:~: &ii;~ Oa....S l,u- - ~ ~ o ~9 J: j]~3 . l.1J 9g~ ~a~~ .:.; ..-.... ~..IL ::~----":~::~~;;~, u '. hi -" i; llg ~i _I' , ~ - - ...,""'" '_.l.~ ... \J'Wl ~: - . ~; ......; -. -"Iii -, , '. , - ...~ - ~. !ll " Vi!{ ~f~r itf ~ i~~"; E..loli 'flit g i:i;. ~.lfl;; c~ Vril ~ i;~,j Imf CHAPTER 19: COMMENTS AND RESPONSES Letter D: Cassidy Shimko Dawson Kawakami (Applicant Attorneys), March 17, 2006. Response to Comment D-1: Comments noted. However, the eXlstmg drainage system includes an unimproved vegetated swale at the toe of slope at the edge of the railroad right of way. This existing feature could be incorporated into a vegetated swale and on site detention/retention system as required by the City of South San Francisco Public Works Department in a comment letter on the Administrative Draft EIR for the project. Additionally, the existing unimproved drainage system along the edge of the railroad right of way may not be sufficient to handle 50% of site drainage, and was observed to pond water in an uncontrolled manner. Any detention/ retention at the project site will likely also require an outlet pipe to the Oyster Point Boulevard outlet because of restrictions on site runoff into the Colma Creek flood control channel and the low permeability of the site soils. Response to Comment D-2: Comments noted. However, no inftltration study has been conducted to determine if soils have permeability conducive to infiltration of storm water in a detention basin. Additionally, the existing site runoff at the slope adjacent to the railroad right of way includes an unimproved vegetated swale which channels water to the railroad right of way where water slowly inftltrates or evaporates. While silty clay soils, such as those detected in the geotechnical study, are not the best soils for infiltration in a detention basin, these soils do allow for infiltration of water over time depending upon the soil rate of permeability, the underlying soil permeability, and the depth to groundwater. Inclusion of an outlet pipe in a detention basin which channels overflow water into the storm drain system is a common feature in storm water treatment and management systems. As required in the Mitigation Measures for the project, the revised Drainage Plan shall be subject to the review and approval of the City of South San Francisco City Engineer and Storm Water Coordinator, and shall also be reviewed and approved by the County of San Mateo Flood Control District. Any modifications to the requirements as set forth in the EIR shall be approved in writing by these public agencies. Response to Comment D-3: Comment noted. The City will prepare the "fair share contribution" calculations. Response to Comment D-4: The City has limited experience with traffic associated with home improvement centers. While the study may be viewed as more conservative in its assumptions, it is a prudent and legitimate approach and will ensure that the impacts are identified, analyzed and appropriate mitigation measures developed. The need to identify the impacts and develop corresponding mitigation measures is especially important for the following factors - more than one home improvement center is under review for Dubuque Avenue; the Oyster Point and the Grand Avenue Freeway Interchanges and the frontage road, Dubuque Avenue, have limited remaining capacity; CalTrans has commented on this and other related DEIRs regarding the need for greater specificity; and the City is considering the adoption of the HOME DEPOT PROJECT FINAL FOCUSED EIR PAGE 19-27 - CHAPTER 19: COMMENTS AND RESPONSES statement of over-riding considerations because of the lack of feasible mitigation measures. We concur with the commentators statement that it is an "effective method to use in preparing the Draft EIR ." - Response to Comment D-5: Mitigation Measure 11-10 will be revised to identify that the posted speed limit should be no greater than 35 miles per hour and will not identify the implementing agency. The prohibition of left turn exiting movements needs to remain to reduce future potential traffic conflicts. This is especially appropriate given the increase in traffic on local streets generated by the rapid private redevelopment of the area east of U.S. 101, the increasing use of the CalTrain station on the southerly end of Dubuque Avenue and the proposed home improvement center adjacent to the station. While visibility will be improved, the "all way stop" should be left as an option to provide a high level of traffic safety. The condition will be revised to add that a traffic study to determine the need of the intersection control be conducted at the applicant's expense no later than 2010. Should the "all way stop" determined to be necessary by the City's Engineer the applicant would be obligated to install the intersection controls. - - - Response to Comment D-6: To function efficiently and minimize on-site circulation conflicts, both the parking lot and the garage need to have a stripping and signing plan. The City's experience has been that such visual cues are important circulation controls that have proven effective and minimal cost. - Response to Comment D-7: Comment noted. Response to Comment D-8: Comment noted. However, it appears to the EIR authors that the tables are written in plain language and use appropriate graphics so that the public can rapidly understand the document, consistent with CEQA Guideline 15140. It is unclear to the authors what is difficult to read or improperly formatted in the tables. - - - PAGE 19-28 HOME DEPOT PROJECT FINAL FOCUSED EIR - a3/3B/2eeG 14:33 51El2BG5559 CALTR~NS AR/IIOltl1c;~^RZI'N&".GIl~ Ciav= 51... TE Of CALlPORNIA 8USTNU~ TIlAWSf'!'RTATION AND H01JSlNr. AGENCY DEPARTMENT OF 'l'RANSPORTA TJON III GRAND AVENUE P. O. BOX 23660 OAKlAND, CA 9462M660 PHONE (510)286-5505 Lette r E FAX (510) 286-5559 TrY (800) 735-2929 Flu you~ PO"'tT! JJ~ tllrrfY eJ!ltltftl' March 3D, 2006 Mr. Steve Carl~on City of South San Francisco Planning Department 315 Maple Avenue South San Francisco, CA 94080 SMI0141S SCll#2005082032 Dear Mr. Carlson: HOME DEPOT - DRAFT ENVIRONMENTAL IMPACT REPORT This letter provides supplemeotal COmmenlS on the Home Depot Draft En....ironmental Impacl Report (DEIR) 10 our March 16, 2006 Jetter. Additional c~mmenl8 may be forthc:omJng pending review of Synchro run files received March 29. 2006. Highway ()pe7dliOftt I. Please provide project-related turning movemellt volumc!l only- without base case volumes. I This will show the amount of project-related traffic. I I 2. The capacity of an auxiliary lane is the lcsserof the on- or off-ramp. Page 11-15, Freeway Operations, Analysis Methodology. 3. Since stated capacilies in the DEIR ate passenger car equivalents (pee), truck volume data should be adjusted to pee throughout the DEIR. ll~d the analYllis should be fe-run. Page 11- 21, Freeway Ramp Operations, Analysis Melhodology. 4. The project should be required to pay fair share fees to riJirigale the project's impacl to the northbound off-ramp at the US IOl/Dubuque Avenue intersection. The Base Case + Project volume of2,01 L vehicles peT hour (vpb) at the northbound Dubuque Avenllle off-ramp would requhe a two-1il1lc off-ramp. Page 11-23, Table 11-6. 5. Will Base Case + Project queues at the northbound leg of the Oyster Point BoulevardIDubllque Avenu~ intersection back up beyond the US 101 Ramps at Dubuque Avenue onto the us 101 mainline? How will thi:) affect off-ramp traffic? M~tig8tion should be recommended for project-related impacts; Ibis could include paying fair sblltc fees. Were the Dubuque Avenue i1Jtc.l15ectiODS at Oyster Point Boulevard and US 101 Ramps analyzed as independent frcebody intt:T3cctlO7JS or were they analyzed togetller? They should be analyzed "Cal'l"tl~r irnprw,s IlIlJbilily O"OJ/' C"W""'i.... PAGE I} 1 r'- @ .E-1 E-2 E-3 E-4 E-5 a3/3e/2~aG 14:33 MI. S~"I C...boo MlIclI 30. 201J<; Pigc Z 51628(;5559 CALTRANS PAGE 02 as a coordinated system and not as independent freebod)' intersections as queues from one intersection can impactlhc intersection upstream. Pages 1).25 to 11.28, Tabies 11-' to 11- 10. 6. Why isn't the nonbbouQd leg of the Us 101 RampslDubuque Avenue interchange included in the analysis in tables 11.7 to 11-107 Pages 11-25 to 11-28. 7. Will the Base Case + Project in Year 2020 queues at the US 101 Southbound RampsIBayshore Boulevard jntc"ection extend back onto south1x>und US 1017 Mitigation should be recommended to reduce an)' significant impllCts to l!- less lhan significant level. Agai n. this could include payment of fair share fees. Page 11-28, Table 11-10. 8. Adding just one: vehicle to an existing 9S'" percentiJe queue that is operating unacceptably will result in a significant impact that requires mitigation. No.8 under Impoct Analysis on Page 11-55 is not a Cain-lIDS criterion. 9. MitigMi()n to reduce project impacts to a less than significant level sbould be identified. An explanation should be provided where mitigation is determined to be irlfcosibLe. Page 11-68, Mitigation Me8su~ Z 1-2. 10. The City a9 lead agency, Ilrld Home Depot as project applicant are responsible for'ensuring that sufficient mitigation is implemented. The DElR should recommend mirigation to reduce project impact& 10 a less than significant level, 31)d the applicant should be required to contribute fai{" share fccll. The DEm states that projcct volumes Would be the same or less Ihan the officelR&D uses projecled fl)J;' the site. What miti8ation was required for the OfficeIR&D ulle'? Has this mitigation been implemented? Page 11-13. Impact 11-8 Year 2020 Freeway Ramp Impacts, PM Pelll< RoUt. 11. The DEIR should identify aU intersections currently operating with significant 95th percenrHe queues, and all intersections where project traffic wiJI result in significant 95th percentile qlleues. Mitigation should he recommended for all inters~fions operating with Ejgnificant 9Slb percentile queues with the addilion of any project trips. Since even one addi Iional vehicle wDuld cause a significant imPllct, a volume increase of two percent is not required to cause a sigcificllnt impact. Signal Op.raJion:s 1. Unless new !lignal phaSing is proposed. use existing phasing. ~isting phasing is not reflected in the Synchro models. 2, The Gateway Boulevard/Oyster Point Boulevard iotcl"Section should be included in 'he Synchro models. 3. Mitigation should be ~omme.nded for queuing problems at the northbound US lOt off-ramp during the PM peak. 4. Mosl intersections llTe over capac;ly in the Year 2020 scenarios. Mitigation. including paying fair share fees. should be recommended forme project's conlribution 10 these impacts. "Ct>JlraJt$ ''''pnt",.r mnbi./iry <le.rm Ctrljfomig. .'~ .. - E-6 - - E-7 E-8 - E-9 - E-10 - E-11 I E-12 I E-13 I E-14 I E-15 - - - - IIClI ..;.IIU c...UUU .....,. '"'~. I' , L..IUII,.I.lIU U.&,Y..&. u........... uc-..... UU""..... a3/3B/20e& 14:33 Mr. S'c.... Carbon Mllcn 30, 2006 !'age 3 511:12865559 CAL TRANS PAGE: 53 rrqJfic 1. Indicate the resulting' level of significance after mitigation in the column for each analyzed intersection. Page 2-18. Mitigation II-SA for 501ll Percentile Queue. 2. For clarity, recommended mitigation measures Bnd resulting level of ~ignific8nte should correspond to the respl;:l;tive potential impl1(:ls for each analyzed intersection. Page 2-18, Mitigation 11-5B for 951~ Percentile Queue. 3. The resulting level of significance should be idenlified in the column for each analyzed intersection. Pagc8 2-19lhrough 2-21. 4. Bayshore Boulevard is not locllted along Home Depot frontage; Dubuque Avenue is the only roadway that fronts the project site. Page 1] -2, lode}\, 11.2 Setting, 211d Paragraph. 5. The eastern boundary of the project site is the railToad, nDt Ba)lshore BoulevlU"d. Page 11-2, Index. 11.2 Setting. 4i11 Paragraph. ' 6. WlIere Is the Veteran's Road/Oyster Point Boulevard intersection'? It is not included under Study Intersections on Page 11-5. The DEIR should describe how this intersection impmvement will help mitigate projc(;t impacts. Provide supporting data and analysis for independent verification. Page 11-30, Planned TransportBtion System Improvements, 2"d Paragraph. . 7. The Gateway BoulevardlEast Grand Avenue intersection is nDt inc:1uded Ullder Study Intersections on Page 11-5. The DEIR should describe bow this intersection improvement will help mitigate project impacts. Page 11-30. Planned TransponatiOJl System Improvements. 2nd Paragraph. 8. Is the City planning to widen the GTand Avenue approaches at the OrlUld AvenueJAirpon Boulevard intersection to accommodate the proposed additionallmes? The DEIR does not appear ro analyze the intersection. nor to recommend mitigation. Please c)arify this apparent omission. Page 11-33. Figure 1 )-7. Year 2020 Lane Geometrics and Intersection Control. 9. Why is a U-turn movement proposed for eastbound Sister Cities Boulevard at the Bayshore Boulevard/Airport Boulevard inter&ection? Is it necessary to provide an eastbound V-turn at this intersection" There is not enough width on Sister Cities Boulevard 10 allow U-turns unless the City plans to widen this 3trcet. Please verify and explain this proposed improvement. Provide supponmg data and anafysis for indc?endent verification. 10. The City should revise the General Plan 10 develop a mitigation plan for uaffic problems in the projecl vicinity. While the DEIR found traffic: impacts at several study area intersections to be significant and unavoidable, the long delays at these intcIsectionB should not be ignored. Moreover, operations at intersections east of US 101 will degrade even further as development contirmes and land uses intensify. 'Co/lran. improvu ,"ubiliryacroSl CDlifomw" t"'-"'T E-16 E-17 E-18 E-19 E-20 E-21 E-22 E-23 D3/38/2666 14:33 Mr. Sic\'<: Carlton M_h l[). 200(1 P~4 5192865559 CALTRANS Hydraulics 1. Gradjng and drainage plans should be submitted for review when (hey are available. 2, New development lit The project site should not aller eXisting drainage patterns. 3. Table 7-J and 7-2 and Figure 7-3 should be revised so that they are readable. Encroachment Pel'nlit Work that encroaches Onto lhe Stale: ROW requires an encroachment pennit that is issued by the DepanmelU. Tt) apply, a compleled encroachment pennit application, environmental documentation, and five (5) seu of plans clearly indicating Slate ROW must be submitted to the address below. Traffic-related mitigation measures should be incorporated into the construction pJIU19 during we encroachment pcnni.t process. See the webshe link below for more information. http://www.dor.ca.govlhq/U1lffopsJdevelopscrv/PCnnlts/ Scan Nozzwi, Dislrlct Office Chief Office of Permits California DOT, Districl 4 P.O. Box 23660 Oakland. CA 94623-0660 Please fee) free to call or email Patricia MaUrice of my staff at (510) 622-1644 or Imlricia maurice@dot.ca.1!-ov with any questions regording thislclter. [~~ District Branch Chief IGRlCEQA C: Ms. Terty Roberts. Slate Clearinghouse Mr. David 1air, The Tail Group "Calll'dnJ ImpTthlflS "'~bifjry ~'t1S1 C:dijo""'/J ~ PAGE 64 r-.~ - I E-24 I E-25 - I E-26 - E-27 - - - - - - CHAPTER 19: COMMENTS AND RESPONSES Letter E: California Department of Transportation, District 4, March 30, 2006. Response to Comment E-l: Project-related turning movement volumes are provided 1ll Figure A (AM Peak Hour) and Figure B (pM Peak Hour), which have been added to Chapter 18. Response to Comment E-2: It is agreed that an auxiliary lane idealized capacity is that of the on- or off-ramp it connects to. With single lane on- / off-ramp capacities of :t2,000 vehicles per hour, this would indicate an auxiliary lane capacity almost the same of the adjacent freeway lane. If there were no weave movements to/from the auxiliary lane, this capacity would be appropriate. However, with weave movements, a lower capacity is likely. The year 2000 highway capacity manual freeway analysis methodology has been utilized to determine the added capacity to be considered for those segments of the U.S.101 freeway analyzed in the study that also contain an auxiliary lane. This produces a lower added increment of capacity due to the auxiliary lane than would be the case assuming the auxiliary lane has the same capacity as the on- or off-ramp it connects to. Potentially, this lower capacity reflects the impact of weave movements to/from the auxiliary lane. The analysis presented in the EIR is more conservative (and potentially realistic) than just assuming the auxiliary lane capacity is the same as the connecting on- or off-ramp. Response to Comment E-3: It is agreed that capacltles for freeway ramp operations 1ll Tables 11-5 and 11-6 are stated in passenger car equivalents (PCE). Volumes presented in Tables 11-5 and 11-6 are the same as those shown on the figures in the EIR. However, footnotes are provided to each table detailing the adjustments to be made to the volumes for truck to auto PCEs. Results for over or under capacity reflect conversion of truck volumes to PCEs. Also, for all Synchro evaluation of the Oyster Point interchange, the percent trucks is included in the analysis. Response to Comment E-4: The City of South San Francisco has an off-site traffic capital improvements mitigation fee required of all new developments east of the U.S.l0l freeway. This fee goes towards a long list of circulation system improvements found to be needed with area buildout traffic (Draft Supplemental EIR for the South San Francisco General Plan Amendment and Transportation Demand Management Ordinance, April 2001). Also, please note that the proposed project reduces the AM peak hour traffic on the northbound off-ramp to Dubuque Avenue from volume levels resulting from office development already projected for this site by 2020. It is unknown what capacity level Caltrans is using to judge that the northbound D.S.l0l off-ramp to Dubuque Avenue needs to be widened from one to two lanes. Capacity levels used for evaluating ramps at the Oyster Point interchange have stayed the same in studies submitted by the City to Caltrans for review over the past five years. Response to Comment E-5: The Home Depot EIR traffic analysis of the Oyster Point interchange, its ramps and the D.S.l0l freeway was based upon the same analysis methodology, software assumptions and significance criteria as utilized in the recent Terrabay Phase 3 DEIR analysis, which has been reviewed by Caltrans District 4. Given that no significant written HOME DEPOT PROJECT FINAL FOCUSED EIR PAGE 19-33 - CHAPTER 19: COMMENTS AND RESPONSES - response was received from Caltrans District 4 during the course of review of the Terrabay Phase 3 project in regards to any changes they wanted to see in the Terrabay traffic analysis, the exact same procedures were used for the Home Depot traffic evaluation. In addition, a meeting with Caltrans staff was held at District 4 headquarters during the course of the Terrabay review. No changes in analysis procedure were requested at this meeting. Finally, in Caltrans response to the Notice of Preparation for the Home Depot EIR, no direction was given in regards to changes in the analysis procedures for the Oyster Point interchange, its ramps and the U.S.1 01 freeway from that contained in the Terrabay DEIR analysis. - - As noted above in Response to Comment E-4, the City of South San Francisco has an off-site traffic capital improvements mitigation fee required of all new developments east of the U.S.101 freeway to account for fair share fees. - Response to Comment E-6: The northbound approach to the U.S.l0l Ramps/Dubuque intersection was not requested for evaluation by the City, as it is a City controlled approach. - Response to Comment E-7: Operation of year 2020 southbound cumulative off-ramp flow at Bayshore Boulevard has been fully evaluated as part of the Terrabay Phase 3 and Home Depot EIRs. A Synchro/SIM traffic presentation was made to Caltrans staff by the City, Crane Transportation Group and Fehr & Peers showing how signal timing adjustments could be made to more readily clear traffic from the off-ramps at the Oyster Point interchange, if needed. - - - Response to Comment E-8: The indication that significance criteria #8 was associated with Caltrans reflected the fact that the Caltrans queuing criteria was the 95th percentile vehicle queue, whereas the City of South San Francisco queuing criteria (in #7) was the 50th percentile vehicle queue. The additional two percent volume increase with unacceptable Base Case queuing had been used in the Terrabay EIR with no comment from Caltrans - Response to Comment E-9: It is unknown what additional explanation Caltrans would like provided detailing why the City of South San Francisco considers improvements at the Oyster Point/Dubuque intersection to be infeasible. - Response to Comment E-I0: Office/R&D uses that have been projected by the City for the site now being considered by Home Depot would be required to pay the City's off-site traffic impact fee. The previously referred to study (Draft Supplemental EIR for the South San Francisco General Plan Amendment and Transportation Demand Management Ordinance, April 2001) has already evaluated year 2020 cumulative volumes with office/R&D development on the project site and developed needed mitigations, where feasible. The proposed Home Depot project will also pay the City's traffic impact fee, but will have year 2020 volumes decreasing or remaining about the same at the on- / off-ramps with previously projected unacceptable Base Case traffic volumes. - - Response to Comment E-ll: The EIR evaluates 95th percentile queues for the Home Depot project in the same manner as analysis conducted in the Terrabay Phase 3 EIR. Caltrans had no comment regarding the use of the same significance criteria for the Terrabay project. - PAGE 19-34 HOME DEPOT PROJECT FINAL FOCUSED EIR CHAPTER 19: COMMENTS AND RESPONSES Response to Comment E-12: It is highly unusual to maintain eXIstmg signal timing for planning level analysis of traffic conditions in future horizon years, particularly where significant volume increases are expected, as in South San Francisco. For year 2006 and 2020 evaluation, revised (optimized) signal timing was developed by the Synchro software program for Base Case conditions (AM and PM). This same timing was then maintained for Base Case + Project evaluation. Use of existing timing for future horizon conditions would produce nonsensical results and result in significantly poorer levels of service and queuing results than presented. The more idealized signal timing (which Caltrans and the City would have employed by the different horizons in any event) would then just need to be listed as a mitigation measure in the EIR. Response to Comment E-13: The Gateway Boulevard/Oyster Point intersection was not requested for analysis by the City of South San Francisco nor by Caltrans in their response to the Notice of Preparation. It also was not evaluated in the Terrabay Analysis. Response to Comment E-14: There is no northbound off-ramp queuing problem projected during the PM peak hour. Response to Comment E-15: As noted in Response to Comment E-4, the City of South San Francisco has an off-site traffic capital improvements mitigation fee required of all new developments east of the U .S.l 01 freeway, which will account for fair share fees related to the project's contribution in the Year 2020 scenarios. Response to Comment E-16: Table 2-1 has been reformatted to indicate the resulting level of significance after mitigation for each analyzed intersection and to correspond to the respective potential impacts for each analyzed intersection. The changes are included in Chapter 18. Response to Comment E-17: The reference to frontage along the Home Depot site has been revised from Bayshore Blvd to Dubuque Avenue. The changes are included in Chapter 18. Response to Comment E-18: References to Bayshore Boulevard's adjacency to the eastern boundary of the site have been removed. The changes are included in Chapter 18. Response to Comment E-19: The Veterans Road/Oyster Point intersection is along Oyster Point Boulevard east of the Gateway intersection. Planned improvements at this intersection will not impact operations at the Oyster Point interchange, but were requested for listing by South San Francisco staff, as they are part of an approved development projected for completion by the end of 2006. Response to Comment E-20: Planned improvements at the Gateway/Grand intersection will not help mitigate project impacts. However, they were requested for listing by South San Francisco staff, as they are part of an approved development projected for completion by the end of 2006. HOME DEPOT PROJECT FINAL FOCUSED EIR PAGE 19-35 - CHAPTER 19: COMMENTS AND RESPONSES Response to Comment E-21: Planned widening of the Grand Avenue/Airport Boulevard intersection is part of the City's CIP program and will be funded by fees from developments east of the U.S.I0l freeway. These improvements are projected by the City to be in place before 2020. - - Response to Comment E-22: A U-turn movement is shown on the eastbound Sister Cities Boulevard approach to Airport Boulevard/Bayshore Boulevard since the Terrabay Phase 3 development is proposing a right turn in/right turn out access along Sister Cities Boulevard west of the intersection. A median along Sister Cities Boulevard precludes direct left turn inbound access by eastbound traffic at the driveway intersection. If this entrance is ultimately eliminated, then there will be no U-turns. Any needed widening to accommodate U-turn movements would be provided on the Terrabay Phase 3 site. Response to Comment E-23: As noted in Response to Comment E-4, the City of South San Francisco has an off-site traffic capital improvements mitigation fee required of all new developments east of the U.S.101 freeway. This fee goes towards a long list of circulation system improvements found to be needed with area buildout traffic (Draft Supplemental EIR for the South San Francisco General Plan Amendment and Transportation Demand Management Ordinance, April 2001). - -, Response to Comment E-24: Comment noted. - Response to Comment E-25: Comment noted. Response to Comment E-26: Comment noted. However, it appears to the EIR authors that the tables and figure are written in plain language and use appropriate graphics so that the public can rapidly understand the document, consistent with CEQA Guideline 15140. It is unclear to the authors what is difficult to read or improperly formatted in the tables or figure. - Response to Comment E-27: Comment noted. - - PAGE 19-36 HOME DEPOT PROJECT FINAL FOCUSED EIR Apr 18 2006 1:49PM CITY Or SSr ~LHNN1Nu U1Vl bOU-UC~-oo~~ 1"-<:' S TAT E OF C A L I FOR N I A- Governor's Office of Planning and,Research State Clearinghouse and Planning Unit ~"f~ f~ "'~') ~1fr1FCJ,~ Arnold ScbwlllZeu~cr GOVBmor Sean Wwsn' Director April 13, 2006 Letter F ~CEflrED APR 1 8 2006 . PL~lVING 1l1P.-~ ~-Ji.J'll""J" " ~\. Steve Carlson City of South San Francisco 315 Maple Avenue South San Francisco, CA 94080 Subject: Home Depot Project SCH#: 2005082032 -~~-'-Dearsteve Carlson: ..-.-_._------,=~~- ..---.....------- ._---;.;-:-:.:::;:--.-----_...~"'"~~----. -:." - The enclosed comment (5) on your Draft EIR was (were) rcceived by fue State Clearinghouse after the end of the state review period, which dosed on March 16,2006. We are forwarding these comments to you , because they proVide information or raise issues tbllt sbould be addressed in yoUr final environmental docwnenL ' F-1 , . . The California Environmental Quality Act does not require Lead Agencies to re~nd to late comments. However, we encourage you to mcolporate these additional conimentsmto your fmal enviromneotal dOI..."W11ent and to consider thc:;m prior 10 taking final action on the propo~ed project. Please cont~t the Smte Clearinghouse at (916) 445-0613 if you have nny questions concerning the environmental review process. If you bnve a question regarding the above-named project, please refer 10 the ten-digit State Clearinghouse number (2005082032) when co!11acting this office. Sincerely, ;:.:~.. ~ ;;'~... .,. . w:-:. :,'." Teny rts ' Senior Planner, State Clearinghouse Enclosures cc: Resources Agency 1400 TENTH STREET P.O. BOX SII-<< SACRAMENTO. CALIFORNIA !l5812-30<< TEL (916) 445-0613 FAX (916) S23-lIOIB wwW-.opr.cn.guv Letter F: State of California Governor's Office of Planning & Research, Apri113, 2006 Response to Comment F-l: Comment noted. Letters dated March 30, 2006 and April 12, 2006 from the California Department of Transportation (Caltrans) were received following the end of the state review period of March 16. Responses to the comments in the March 30 letter (Letter E) are included in this Final EIR. While not included in the Final EIR, responses to comments in the April 12 are being reviewed by City of South San Francisco staff, and will be incorporated into the staff report for the project. HOME DEPOT PROJECT FINAL FOCUSED EIR PAGE 19-39 Ilc::I,o:] 1lo,.I~ C-4JUU .....4.'11" """.A. t I Vt ....,...... t L..~IIIII"'jl~ U.L.....a. U-'V--C-Joc...,;;.a UU....__ ,...c::. TOWN OF COlMA PLANNING DEPARTMENT 1190 EI Camino Real- Colma, CalifornIa 94014 Phone: (650) 985-2590 - FAX: (650) 985-2578 March 14, 2006 Lette r G RECEIVED MAR f 6 2006 PLANNING DEPT. Mr. Steve Carlson, Senior Planner City of South San Francisco Planning Division P.O. Box 711 South san Francisco, CA 94083 ~RE: Draft EIR - Home Depot Project Dear Mr. Carlson: Thank you for the opportunity to review and comment on the Draft Environmental Impact Report for the proposed Home Depot project on Dubuque Avenue in South San Francisco. At this time, the Town of Colma has no comment. Please keep us Informed of the project as it progresses through the development review process. G-1 Letter G: Town of Co 1m a, March 14, 2006 Response to Comment G-1: Comment noted. HOME DEPOT PROJECT FINAL FOCUSED EIR PAGE 19-43 - ~'t\l 8:1# . ~ . ~~\ l~ ~) v c ~llFO""\~ Staff Report AGENDA ITEM #10 DATE: TO: FROM: SUBJECT: July 26, 2006 Honorable Mayor and City Council Mark Raffaelli, Chief of Police AMENDMENT TO TITLE 11,. CHAPTER 11.40, SECTION 11.40.210 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE (Commercial Vehicles Parked in Residential Areas) RECOMMENDATION It is recommended that the City Council, by motion, waive the reading and introduce an ordinance amending Title 11, Chapter 11.40, Section 11.40.210 of the South San Francisco Municipal Code to regulate commercial vehicle parking in any residential area as follows: Prohibit anyone commercial vehicle, or combination of vehicles, that is twenty-two (22) feet in overall length. Prohibit a commercial vehicle, load, or any portion of said vehicle that is over eight feet five inches (8' 5") in overall height. Reduce the consecutive time allowed for said commercial vehicles to park in residential areas to two (2) hours from the current three (3) hours. BACKGROUNDIDISCUSSION Currently, South San Francisco Municipal Code 11.40.210 regulates commercial vehicles in our residential areas and allows the Police Department to take effective enforcement action on overweight (10,000 lbs. GVW) commercial vehicles that are parked or being stored in residential areas in excess of three consecutive hours. The current code section was approved by the City Council in 1999 in order to comply with Section 22507.5 of the California Vehicle Code. Prior to 1999, the Municipal Code prohibited commercial vehicles weighing over 2000 lbs. (GVW) on residential streets in excess of five hours. Since then, the Police Department has taken a proactive approach in enforcing overweight commercial vehicles that are parked or being stored in our residential areas by making personal contact with the registered owners of overweight commercial vehicles and by issuing courtesy notices in order to gain voluntary compliance, and by issuing citations. With the increase over the last several years in economic and community development and population growth in South San Francisco and the surrounding area, parking in residential, mixed use, and industrial areas is at a premium and has become an important "quality of life" issue for most residents. Staff Report Subject: Amendment to South San Francisco Municipal Code Section 11.40.210 Page 2 The Police Department continues to receive numerous citizens' complaints regarding overweight and/or oversized commercial vehicles that are parked or being stored in residential areas. Currently, unless a particular parked commercial vehicle in a residential area is, in fact, overweight, we have no enforcement options. In response to the numerous ongoing citizens' complaints regarding oversized commercial vehicles being parked or stored in our residential areas, the City Attorney was consulted and rendered an opinion regarding the legality of the City regulating commercial vehicles in residential areas based on size (length, height, and width). The City Attorney has concluded that, based in part on California Vehicle Code Sections 22507 and 22507.5 and current case law decisions, such proposed regulations are probably, but not certainly, valid. The City Attorney's opinion goes on to state that the City could enact such additional regulations but they, like all municipal codes, are not clearly immune from challenge. Definitions: Commercial Vehicle, per the California Vehicle Code: 260 (a) CVC: A "commercial vehicle" is a motor vehicle of a type required to be registered under this code used or maintained for the transportation of persons for hire, compensation, or profit or designed, used, or maintained primarily for the transportation of property. (b) Passenger vehicles and house cars that are not used for the transportation of persons for hire, compensation, or profit are not commercial vehicles. This subdivision shall not apply to Chapter 4 (commencing with Section 6700) of Division 3. (c) Any vanpool vehicle is not a commercial vehicle. (d) The definition of a commercial vehicle in this section does not apply to Chapter 7 (commencing with Section 15200) of Division 6. Residential Area: Residential areas and mixed-use areas as defined on the City of South San Francisco's General Plan Map or Land Use Diagram. FUNDING Informational signs shall be posted throughout the city at the entrances to the aforementioned residential areas. The signs will assist with voluntary compliance by the residents and is required for the Police Department to take effective enforcement action, per California Vehicle Code section 22507. It is estimated that approximately 100 new signs will be needed at an estimated total cost of approximately $4,000. Staff Report Subject: Amendment to South San Francisco Municipal Code Section 11.40.210 Page 3 CONCLUSION Passage of this ordinance will enable the Police Department to take effective enforcement action on oversized commercial vehicles in our residential neighborhoods. This will increase public and traffic safety and will improve "quality of life" issues for all residents. By: APProve~.: w' cf[J 1 M.Nag City Manager Attachment: Ordinance 'u ORDINANCE NO. AN ORDINANCE AMENDING TITLE 11, SECTION 11.40.2100F THE SOUTH SAN FRANCISCO MUNICIP AL CODE TO INCLUDE LENGTH AND HEIGHT RESTRICTIONS ON THE PARKING OF COMMERCIAL VEHICLES IN RESTRICTED DISTRICTS AND REDUCE THE CONSECUTIVE AMOUNT OF TIME COMMERCIAL VEHICLES ARE ALLOWED TO PARK IN RESIDENTIAL AREAS WHEREAS, the South San Francisco Municipal Code currently allows the City's Police Department to enforce provisions prohibiting commercial vehicles over a specified weight from parking or being stored in residential areas in excess ofthree (3) consecutive hours; and WHEREAS, with the recent increase in economic and community development, as well as population growth in South San Francisco and the surrounding area, parking in residential, mixed use, and industrial areas is at a premium, and has become an important "quality of life" issue for most residents; and WHEREAS, the South San Francisco Police Department continues to receive numerous complaints from citizens regarding overweight and/or oversized commercial vehicles that are parked or stored in residential areas; and WHEREAS, the Police Department does not have any enforcement options regarding such citizen complaints unless the particular vehicle is in fact overweight. NOW THEREFORE, the City Council of the City of South San Francisco does ORDAIN as follows: SECTION 1. AMENDMENTS The City Council hereby amends section 210 of Chapter 11.40 of Title 11 of the South San Francisco Municipal Code, a follows (deletions in strikethrough; additions italicized): It is unlawful for any person to park any commercial vehicle (as defined by California Vehicle Code section 260) having a manufacturer's gross vehicle weight rating often thousand pounds or more in any residential district in excess ofthree-two (2) consecutive hours-;- in any residential district as follows: (a) Any commercial vehicle having a manufacturer's gross vehicle weight often thousand (10,000) pounds or more. This section does not apply to any commercial vehicle making pickups or deliveries of goods, wares, and merchandise from or to any building or structure located in a residential district, or when such vehicle is parked in connection with and in aid of the performance of a service to property in the district, or for the purpose of delivering materials to be used in the actual and bona fide repair, alteration, 846970-1 remodeling, or construction of any structure for which a building permit has previously been obtained, when time in addition to the three-two (2) hour period is necessary to complete such work; or (b) Any commercial vehicle or combination ofvehicles twenty-two (22) feet or more in overall length; or (c) Any commercial vehicle, load, or any portion of said commercial vehicle over eight feet five inches (8' 5 ") in overall height measured from the surface upon which the vehicle stands. SECTION 2. SEVERABILITY If any provision of this ordinance or the application thereof to any person or circumstance is held invalid or unconstitutional, the remainder of this ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions ofthis ordinance are severable. The City Council of the City of South San Francisco hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that anyone or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable. SECTION 3. PUBLICATION AND EFFECTIVE DATE This Ordinance shall be published once, with the names ofthose City Councilmembers voting for or against it, in the San Mateo Times, a newspaper of general circulation in the City of South San Francisco, as required by law, and shall become effective thirty (30) days from and after its adoption. * * * * * 846970-1 Adopted as an Ordinance of the City of South San Francisco at a regular meeting of the City Council held the _ day of , 2006 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk As Mayor of the City of South San Francisco, I do hereby approve the foregoing Ordinance this _ day of , 2006. Joe F emekes, Mayor 846970-1 ~'t\\ S:1N g ft. . ~\.J. \ o n ;... c;; ~ C") v 0 ~IIFO~~~ Staff Report AGENDA ITEM #11 DATE: TO: FROM: SUBJECT: July 26,2006 Honorable Mayor and City Council Mark Raffaelli, Chief of Police AMENDMENT TO TITLE 11, CHAPTER 11.30, SECTION 11.32.010, SUBSECTIONS (1) AND (m) OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE (Commercial Vehic1e Truck Route - Streets Enumerated) RECOMMENDATION It is recommended that the City Council, by motion, waive the reading and introduce an ordinance amending Title 11, Chapter 11.30, Section 11.32.010, Subsections (I) and (m) of the South San Francisco Municipal Code 11.32.010 to accurately reflect the current street names. The subsections would read as follows: (I) Hillside Boulevard, from the western city limits to Sister Cities Boulevard; (m) Sister Cities Boulevard to Airport Boulevard; BACKGROUND/DISCUSSION Since being adopted in 1992, South San Francisco Municipal Code 11.32.010 has enumerated all of the truck route streets in the City. Sub-sections (1) and (m) reflect the names ofthe streets at the time, which were: (1) Hillside Boulevard, from the western city limits to Randolph Avenue; (m) Hillside Boulevard Extension from Randolph Avenue to Airport Boulevard. With the addition of Sister Cities Boulevard and other upgrades to the surrounding area, an updating of the municipal code sub-sections for accuracy is appropriate. The police department actively enforces violations ofthe truck route and an accurate enumeration of the correct street names is required. Accurate truck route street names also reduce any confusion by the public, thereby increasing voluntary compliance. FUNDING There is no financial impact to the City of South San Francisco if this ordinance is updated. Staff Report Subject: Amendment to South San Francisco Municipal Code Section 11.40.210 Page 2 CONCLUSION The passage and updating of this ordinance will accurately reflect the current truck route and will minimize any confusion by the public or the courts. By: h~t/?-- Mark Raffaelli Chief of Police Approved: ~ "(~ B M. Nagel City Manager Attachment: Ordinance II ORDINANCE NO. AN ORDINANCE AMENDING TITLE 11, CHAPTER 11.32, SECTION 11.32.10 OF THE SOUTH SAN FRANCISCO MUNICIP AL CODE TO MODIFY ENUMERATED COMMERCIAL VEHICLE TRUCK ROUTES TO ACCURATELY REFLECT THE CURRENT STREET NAMES WHEREAS, Section 11.32.010, adopted in 1992, enumerates all ofthe truck route streets in the City; and WHEREAS, subsections (l) and (m) reflect the names of the streets at the time of adoption; and WHEREAS, with the addition of Sister Cities Boulevard and other upgrades to the surrounding area, modification of subsections (l) and (m) to section 11.32.010 is appropriate to reflect current street names; and WHEREAS, the South San Francisco Police Department actively enforce violations of the truck routes, and the Municipal Code must identify truck routes by their current and proper street name to allow for such enforcement; and WHEREAS, identification in the Municipal Code of truck routes by their current and proper street names will help to reduce public confusion over the location of truck routes, thereby increasing voluntary compliance. NOW THEREFORE, the City Council of the City of South San Francisco does ORDAIN as follows: SECTION 1. AMENDMENTS The City Council hereby amends section 010 of Chapter 11.32 of Title 11 ofthe South San Francisco Municipal Code, as follows (deletions in strikethrough; additions italicized): a. Subsection (l), is amended as follows: "Hillside Boulevard, from the western limits of the city to Randolph A ','enueSister Cities Boulevard"; and b. Subsection (m), is amended as follows: "Hillside Blvd. (extension) from Randolph AvenueSister Cities Boulevard to Airport Boulevard,". 846952-1 SECTION 2. SEVERABILITY If any provision of this ordinance or the application thereof to any person or circumstance is held invalid or unconstitutional, the remainder of this ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions ofthis ordinance are severable. The City Council of the City of South San Francisco hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that anyone or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable. SECTION 3. PUBLICATION AND EFFECTIVE DATE This Ordinance shall be published once, with the names of those City Councilmembers voting for or against it, in the San Mateo Times, a newspaper of general circulation in the City of South San Francisco, as required by law, and shall become effective thirty (30) days from and after its adoption. * * * * * Adopted as an Ordinance of the City of South San Francisco at a regular meeting of the City Council held the day of, , 2006 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk As Mayor of the City of South San Francisco, I do hereby approve the foregoing Ordinance this day of , 2006. Joe F ernekes, Mayor 846952-1