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HomeMy WebLinkAboutReso 84-2007 RESOLUTION NO. 84-2007 CITY COUNCIL CITY OF SOUTH SAN FRANCISCO A RESOLUTION ADOPTING THE CITY OF SOUTH SAN FRANCISCO 2007 EAST OF 101 TRAFFIC IMPACT FEE STUDY UPDATE AND REVISING THE CITY'S TRAFFIC DEVELOPMENT IMP ACT FEE FOR FUTURE DEVELOPMENT WITHIN THE EAST OF 101 AREA RECITALS WHEREAS, on October 13, 1999, the City Council of the City of South San Francisco adopted the South San Francisco General Plan ("General Plan"); and WHEREAS, the General Plan, as adopted, applies to the East of 101 Area, which is a Planning Area that includes the land within the jurisdictional limits of the City; and WHEREAS, the General Plan area is included on the Land Use Map contained in the General Plan; and WHEREAS, the City's adopted General Plan includes policies requiring that new development within the East of 101 Area should be required to pay its fair share toward upgrades to existing transportation facilities and construction of new transportation facilities as those upgrades and facilities are necessitated by new development in the East of 101 Area (see Policies 4.2-G-7, 4.2-1-7 and 4.2-1-6); that the potential impacts of new growth will be mitigated through development fees and other exactions (see Policies 4.2- G-land 4.2-1-8); that development of all urban uses shall be coordinated with provision of essential community services or facilities, including but not limited to transportation improvements (see Policies 4.2-G-6 and 4.2-1-4); that the location, timing and extent of growth shall be guided through capital improvements programming and financing, including through the use of impact fees and developer contributions, to prevent increased congestion and level of service deficiencies (see Policy 4.2-1-1); and WHEREAS, pursuant to the California Environmental Quality Act (Pub. Resources Code, SS 21000, et seq. ["CEQA"]), on October 13, 1999, the City Council of the South San Francisco approved and certified an Environmental Impact Report ("EIR") analyzing the environmental impacts of the General Plan; and WHEREAS, the EIR identified certain significant and potentially significant environmental impacts which could be mitigated to a level of less than significance; and WHEREAS, pursuant to CEQA requirements, the City adopted mitigation findings and a specific mitigation monitoring and reporting program to track compliance with the mitigation measures; and WHEREAS, the transportation improvements identified in the General Plan and the traffic impact fee study update, attached to this Resolution as Exhibit A, will undergo separate environmental review once the improvements have been sufficiently engineered to identify their scope and potential impacts; and WHEREAS, in 2001, 2005, and 2007, the City of South San Francisco retained MuniFinancial to assist the City in reviewing the needs of residents, businesses, and employees through build-out under the adopted General Plan, and in preparing a traffic impact fee study to determine the amount of fees necessary to generate funds to pay for the transportation improvements necessitated through build-out under the adopted General Plan; and WHEREAS, on September 26,2001, the City Council adopted the Traffic Impact Fee Study for the East of 101 Area, prepared by MuniFinancial; and WHEREAS, on August 24, 2005 the City Council adopted the 2005 Traffic Impact Fee Study Update for the East of 101 Area, prepared by MuniFinancial; and WHEREAS, MuniFinancial has now prepared and presented to the City Council a second Traffic Impact Fee Study Update for the East of 101 Area ("2007 Traffic Fee Study Update"), which is attached to this Resolution as Exhibit A, and incorporated herein by reference; and WHEREAS, the 2007 Traffic Fee Study Update identifies additional transportation improvements that are necessary to accommodate future development within the East of 101 Area, and estimates the cost of all improvements, including previously identified improvements; and WHEREAS, cost estimates for each transportation improvement are based on calculations performed by TY Lin, as described in Exhibit B, incorporated herein by reference; and WHEREAS, TY Lin estimates that $6,708,780 of the total cost of the transportation improvements is attributable to land acquisition expenses; and WHEREAS, the 2007 Traffic Fee Study Update calculates the fee necessary to fully fund all identified traffic improvements, per square foot of each specific type of land use; and WHEREAS, the 2007 Traffic Fee Study Update demonstrates the appropriateness of the amount of the traffic impact fee proposed for adoption, based on current estimates of the cost of transportation improvements needed to accommodate new development; and WHEREAS, the specific transportation improvements needed have been identified based on several factors, including (1) anticipated future development in the East of 101 Area; (2) the number of new vehicle trips generated by anticipated future development in the East of 101 Area; and (3) means of minimizing traffic congestion and maintaining acceptable levels of service throughout the East of 101 Area; and WHEREAS, in accordance with Government Code S 66016(a), at least 14 days prior to the public hearing at which this Resolution was adopted, notice of the time and place of the hearing was mailed to eligible interested parties who filed written requests with the City for mailed notice of meetings on new or increased fees or service charges; and WHEREAS, in accordance with Government Code S 66016(a), the 2007 Traffic Fee Study Update, containing the data upon which the traffic impact fee is based (attached to this Resolution as Exhibit A), was available for public review and comment for ten days prior to the public hearing at which this Resolution was adopted; and WHEREAS, ten days advance notice of the public hearing at which this Resolution was adopted was given by publication in accordance with Government Code S 6062(a). FINDINGS WHEREAS, the City Council finds as follows: A. The 2007 Traffic Fee Study Update complies with California Government Code SS 66000, et seq., by establishing the basis for imposition of the fee on new development in the East of 101 Area. The purpose of the traffic impact fee set forth in this Resolution is to finance transportation improvements necessary to reduce the impacts caused by future development in the East of 101 Area, as further identified and explained in Exhibit A. Additionally, the 2007 Traffic Fee Study Update: 1. identifies the purpose of the fee; 2. identifies the use to which the fee will be put; 3. demonstrates a reasonable relationship between the fee's use and the type of development project upon which the fee will be imposed; 4. demonstrates a reasonable relationship between the need for the public facilities and the type of development project upon which the fee will be imposed; 5. demonstrates a reasonable relationship between the amount of the fee and the cost of the public facilities or portions of facilities attributable to the development upon which the fee will be imposed. B. The traffic impact fee collected pursuant to this resolution shall be used to finance the transportation improvements described in Exhibit A, subject to the City's authority to make reasonable modifications or replacements to the improvements, as further described in Section 13 of this Resolution. C. Based on the entirety of the Record, which includes without limitation, the 2007 Traffic Fee Study Update (contained in Exhibit A), cost estimates and breakdowns from TY Lin (as described in Exhibit B), all reports, including staff reports received for the public hearing on this matter, the testimony received at this noticed public hearing, the agenda statements, the General Plan, and all correspondence received (collectively, "Record"), the City Council approves and adopts Exhibit A and incorporates such report herein. The City Council further finds that future development in the City will generate the need for the transportation improvements described in Exhibit A, and that such improvements are consistent with the General Plan. D. Adoption of the traffic impact fee set forth in this Resolution, as it relates to development within the East of 101 Area, is intended to obtain funds for transportation facility improvements necessary to reduce congestion and improve levels of service within the East of 101 Area. While the fee may contribute sufficient funds for the improvements, it will not, by and of itself, ensure the improvements are constructed. Moreover, any improvements intended to be funded by the fee will be fully analyzed under CEQA when the improvements are sufficiently engineered and the precise location and scope of the improvements identified. As such, the fee, as it relates to development within the City, is not a "project" within the meaning of CEQA because it is not a necessary causal link in the provision of the improvements identified in the 2007 Traffic Fee Study Update. (Pub. Resources Code S21080(b)(8)(D)). E. In adopting the traffic impact fee set forth in this Resolution, the City Council is exercising its powers under Article XI, Section 7 of the California Constitution. F. The Record establishes: 1. That there is a reasonable relationship between the use of the traffic impact fee set forth in this Resolution (payment for certain listed transportation improvements) and the type of development projects on which such fee will be imposed, specifically, commercial, office/research and development, and hotel, because such new development in the East of 101 Area generates new vehicle trips, increasing congestion and decreasing levels of service, thereby contributing to the need for the transportation improvements listed in Exhibit A; and 2. That there is a reasonable relationship between the need for the transportation improvements listed in Exhibit A and the type of development projects on which the traffic impact fee set forth in this Resolution is imposed because new development in the East of 101 Area-office/research and development, commercial and hotel-will increase the number of people who work in the East of 101 Area, generate more vehicle trips in the Area, and contribute to the need for the transportation improvements listed in Exhibit A; and 3. That there is a reasonable relationship between the amount of the traffic impact fee set forth in this Resolution and the cost of the transportation improvements listed in Exhibit A or that portion of such improvements attributable to the development on which such fee is imposed because such fee is calculated based on the number of residents or employees generated by specific types of land uses, the total cost of construction of such facilities, and the percentage by which development within the City contributes to the need for such facilities; and 4. That the cost estimates set forth in Exhibit A are reasonable estimates for the cost of the transportation improvements listed therein, and the fees expected to be generated by future development will not exceed the projected cost of such improvements; and 5. That the method of allocating of the fee set forth in this Resolution to a particular development bears a fair relationship and is roughly proportional to each development's burden on and benefits from the improvements to be funded by such fee, because such fee is calculated based on the number of trips each particular development will generate. ADOPTION OF FEE NOW, THEREFORE, the City Council of the City of South San Francisco does resolve as follows: 1. The 2007 Traffic Impact Fee Study Update, attached to this Resolution as Exhibit A, is hereby adopted. 2. Definitions. (a) "Applicant" shall mean any person or legal entity that applies for a permit or other entitlement for a new development project. (b) "Child Care Facility" shall mean any child care facility, as that term is defined by section 1596.750 of the California Health and Safety Code, including but not limited to facilities providing non-medical care to children under eighteen years of age in need of personal services, supervision, or assistance essential for sustaining the activities of daily living or for the protection and supervision of an individual on less than a 24-hour basis. Such facilities shall include day care centers, employer-sponsored child care centers, and family day care homes. (c) "City" shall mean the City of South San Francisco. (d) "Commercial" shall mean any development constructed or to be constructed on land having a General Plan land use designation or zoning designation for facilities for the purchase or sale of commodities or services and/or the sales, servicing, installation, or repair of such commodities or services and other space uses incidental to these activities. Commercial land uses include, but are not limited to: apparel and clothing stores; auto dealers and malls, auto accessories stores; banks and savings and loans; beauty salons; book stores, discount stores and centers; dry cleaners; drug stores; eating and drinking establishments; furniture stores and outlets; general merchandise stores; hardware stores; home furnishings and improvement centers; hotels and motels; laundromats; liquor stores; restaurants; service stations; shopping centers; supermarkets; and theaters. "Commercial" includes the Commercial land use designation in the General Plan. (e) "Commercial, Office/Research & Development and Hotel Development Project" shall mean the construction of new Floor Area on a lot in the Community Commercial, Business Commercial, Coastal Commercial, Mixed Industrial, and Business and Technology Park land use classifications, identified in the General Plan, and located in the East of 101 Area. (f) "Commercial, Employee-Serving Amenities" shall mean ancillary commercial establishments and services, and other uses incidental to business park or campus activities, as identified in the South San Francisco General Plan Policy 3.5-1-8. Uses may include small restaurants and cafes, and services such as dry cleaners that are intended to support and to meet the needs of employees from a larger office or research and development park or technology campus in the East of 101 Area. (g) "Development" shall mean the construction, alteration, or addition, other than by the City, of any building or structure within the area within the City of South San Francisco. (h) "Development Project" means any Commercial, Office/Research and Development and Hotel Development Project. (i) "East of 101 Area Traffic Impact Fee" "Traffic Impact Fee" and "Fee" shall all mean the charge or charges imposed on development to fund the transportation improvements to ensure that such development pays its fair share of improvements generated by such development pursuant to this Resolution and applicable law. (j) "Floor Area" shall mean the area of all floors and levels as defined in the City of South San Francisco Building Code. (k) "Hotel" shall mean a commercial facility containing guestrooms for the temporary use of transients where access to individual units is predominantly by means of common interior or exterior hallways. (1) "Industrial" shall mean any development constructed or to be constructed on land having a General Plan land use or zoning designation for the manufacture, production, assembly, or processing of consumer goods and/or other space uses incidental to these activities. Industrial land uses include but are not limited to: assembly; concrete and asphalt batching plants; contractors' storage yards; fabrication; lumber yards; manufacturing; outdoor stockyards and service yards; printing; processing; warehouse and distribution; and wholesale and heavy commercial uses. "Industrial" includes the following General Plan land use designations: light industry and heavy industry. (m) "Land Use Category" shall mean any of the specific land uses that have been listed in this Resolution and are used to provide the basis for future traffic projections. (n) "New Development Project" shall mean any construction, addition, alteration or other change of use of a building or land that requires the City to issue a grading, building, plumbing, mechanical, or electrical permit, or any other form of entitlement. (0) "Office/Research and Development" and "Office/R&D" shall both mean any development constructed or to be constructed on land having a General Plan land use or zoning designation for general business offices, medical or professional offices, administrative or headquarters offices, offices for large wholesaling or manufacturing operations, research and/or development, research and development campus development with ancillary retail and services, and other space uses incidental to these activities. Office land uses include, but are not limited to: administrative headquarters; business parks; finance offices; insurance offices; legal offices; medical and health services offices and office buildings; professional and administrative offices; professional associations; real estate offices; research and/or development offices and travel agencies. (p) "Public Works Director" shall mean the Director of Public Works or the Director's designee. (q) "Transportation Improvements" shall include those improvements that are described in the 2007 Traffic Fee Study Updated, attached as Exhibit A to this Resolution. (r) "Vehicle Trips" shall mean the number of average, daily trips generated by uses of land, as specified in the "South San Francisco General Plan Amendment and Transportation Demand Management Ordinance, Draft Supplemental Environmental Impact Report," April 2001. 3. Revised and Adiusted Traffic Impact Fee Imposed. Pursuant the Mitigation Fee Act (Government Code SS 66000, et seq.) the updated Traffic Impact Fee identified in this Resolution, and in the documentation provided in Exhibit A, shall be imposed, paid, and otherwise apply as prescribed in this Resolution for each non-residential development (including commercial, hotel, and office/research and development). 4. Time for Fee Payment. The Traffic Impact Fee shall be charged and paid for each non-residential development, including commercial, hotel, and office/research and development, upon issuance of the building permit, or if no building permit is required, upon approval of a use permit for the development project, or, if no use permit or amendment thereto is required, at the earliest of any other permit required for the project. 5. Amount of Fee. As calculated in the 2007 Traffic Fee Study Update, attached hereto as Exhibit A, the Traffic Impact Fee to be imposed and paid pursuant to this Resolution shall be in the amount identified in the following table, based on the land use classification for the particular project for which the Traffic Impact Fee is being imposed: Land Use Cost PM Cost per Traffic Admin Total Fee per Trip 1000 SF or Fee per Fee 2 per SF or Trip RateI hotel room SF or hotel hotel room room Commercial $4,950 3.74 $18,513.00 $18.51 $0.46 $18.97 Office/R&D3 $4,950 0.90 $4,455.00 $4.46 $0.11 $4.57 Hotel $4,950 0.21 $1,039.50 $1,039.50 $25.99 $1,065.49 ITrips per 1,000 building square feet (for commercial and office/R&D) or per room (for hotels). 2Based on an estimate of 2.5 percent of traffic fee. 3Based on a weighted average of PM trip rate and R&D land uses of 0.96 and 0.60, respectively 6. Exemptions and Reductions of Fee. Certain development in the East of 101 Area may be constructed to serve the existing and new commercial and office/R&D uses in the Area. Such development, including small restaurants, dry cleaners, and Child Care Facilities, will not generate new vehicle trips, or will only generate very few new vehicle trips, because these development will be used exclusively, or nearly exclusively, by employees working in the East of 101 Area. Therefore, if in the judgment of the City's Chief Planner, in consultation with the City Engineer, the development of any of the land uses identified in this section of the Resolution will not generate any new vehicle trips, but rather only contribute to "linked- in" trips, the Chief Planner may exempt the particular development from paying the Fee. Alternatively, if in the judgment of the City's Chief Planner, in consultation with the City Engineer, the development of any of the land uses identified in this section of the Resolution will only generate minimal new vehicle trips, the Chief Planner may reduce the Fee to be paid by the particular development, proportional to the new vehicle trips generated by the development. The types of developments to which such an exemption or reduction may be applied are limited to the following: a. Any replacement or reconstruction of an existing non-residential structure that has been destroyed or demolished; provided that, the building permit for reconstruction is obtained within one year after the building was destroyed or demolished, unless the replacement or reconstruction increase the square footage of the structure by 50 percent or more. b. Any "Child Care Facility" as that term is defined in this Resolution. c. Any "Commercial, Employee-Serving Amenities" as that term IS defined in this Resolution. 7. Credit for Existing Uses. Applicants whose projects involve the rehabilitation, remodeling or replacement of existing buildings with warehouse, industrial or light industrial uses shall be entitled to fee credits that discount the overall Fee by the number of trips already generated by existing uses. Thus, credit shall be awarded to existing uses based on a net increase in trip generation. The amount of any such discount shall be determined by the City Engineer in his or her sole discretion. 8. Use of Fee Revenue. The revenues raised by payment of the Fee shall be placed in a separate, interest bearing account to permit accounting for such revenues and the interest that they generate. Such revenues and interest shall be used only for the facilities and the purposes for which the Fee was collected, which are the following: a. To pay for acquisition of the right-of-way; b. To pay for design, engineering, construction, maintenance of and property acquisition for, and reasonable costs of outside consultant studies related to, the Transportation Improvements; c. To reimburse the City for the Transportation Improvements constructed by the City with funds from other sources including funds from other public entities, unless such funds were obtained from grants or gifts intended by the grantor to be used for the Transportation Improvements. d. To reimburse developers that have designed and constructed any of the Transportation Improvements with prior City approval and have entered into an agreement, as provided in Section 14, below; and e. To pay for and/or reimburse costs of program development and ongoing administration of the Fee program, including, but not limited to, the cost of studies, legal costs, and other costs of updating the Fee. 9. Standards. The standards upon which the need for the Transportation Improvements are based are the standards of the City, including the standards contained in the General Plan and those City standards reflected in this Resolution, including the 2007 Traffic Fee Study Update. 10. Periodic Review. a. During each fiscal year, the Public Works Director shall prepare a report for the City Council, pursuant to Government Code S 66006, identifying the balance of Fee revenues in the Fee account. b. Pursuant to Government Code S 66002, the City Council shall also review, as part of any adopted City Capital Improvement Plan each year, the approximate location, size, time of availability and estimates of cost for all Transportation Improvements to be financed with the Fee. The estimated costs shall be adjusted in accordance with appropriate indices of inflation. The City Council shall make findings identifying the purpose to which the existing Fee revenue balances are to be put and demonstrating a reasonable relationship between the Fee and the purpose for which it is charged. 11. Subsequent Analysis and Revision of the Fee. The Fee set forth herein is adopted and implemented by the City Council in reliance on the Record identified above. The City may continue to conduct further study and analysis to determine whether the Fee should be revised. When additional information is available, the City Council may review the Fee to determine that the Fee amounts are reasonably related to the impact of Development within the City. In addition to the inflation adjustments pursuant to Section 12, below, the City Council may revise the Fee to incorporate the findings and conclusions of further studies and any standards in the General Plan, as from time to time amended by the City. 12. Fee Adiustments. Beginning July 1, 2008 and each July thereafter, the Fee shall be automatically adjusted to account for inflation. The City Manager or his designee shall be responsible for performing the calculations described in this Section. The adjustments described in this Section shall be applied administratively. The Fee shall be adjusted as follows: a. Land Adjustment. The adjustment for the land acquisition costs shall be equal to the percentage change in land cost per acre within the City, based on a comparison of a current appraisal (prepared for the City for the purpose of adjusting the Fee) and the immediately preceding appraisal (prepared for the City for the purpose of adjusting the Fee and using the same methodology). This calculation shall be known as the "Land Adjustment." (1) For the purposes of calculating the Land Adjustment, the City should conduct annual appraisals; however, in the event that the City has not conducted appraisals on an annual basis, in any year in which the Land Adjustment is applied to the Fee, the Land Adjustment shall be based on the percentage change between a current appraisal (prepared for the City for the purpose of adjusting the Fee) and the last available appraisal (prepared for the City for the purpose of adjusting the Fee and using the same methodology). (2) If in any year, for any reason, the City Manager or his designee does not calculate the Land Adjustment, the Fee shall still be automatically adjusted using only the Construction Adjustment. b. Construction Adjustment. The adjustment for construction costs shall be equal to the percentage change in the Engineering News Record Construction Cost Index (20-city average) between the prior April, and the April of the preceding year. This calculation shall be known as the "Construction Adjustment." c. Fee Adjustment. Once calculated, the Construction Adjustment and the Land Adjustment shall be applied to the respective portions of the total cost of the Transportation Improvements, to determine a new, adjusted total cost. (The portions of the 2007 total cost attributable to each factor are described in Exhibit B: $6,708,780 of the total fee is attributable to land acquisition costs; the remainder of the total fee is attributable to construction costs). This adjusted total cost shall be used to calculate the Cost Per Trip (Table 7 of the 2007 Traffic Fee Study Update) and the Total Fee (Table 9 of the 2007 Traffic Fee Study Update) in the same manner as in the 2007 Traffic Fee Study Update. 13. Replacement or Modification of Transportation Improvements. At the discretion of the City Engineer, specific Transportation Improvements may be reasonably modified or replaced with comparable improvements, provided that the modifications or replacements achieve the same or greater mitigation of traffic impacts, and maintain the reasonable relationship requirements of the Mitigation Fee Act, as identified in Government Code S 66001. 14. Credits and Reimbursement for Developer Constructed Facilities. The City and a developer may enter into an improvement agreement to allow the developer to construct certain of the Transportation Improvements. The City shall retain total discretion as to whether to execute such an agreement. Such agreement shall provide for security for the developer's commitment to construct the Transportation Improvements and shall refer to this Resolution for credit and reimbursement. If the City enters into such an agreement with a developer prior to construction of one or more of the Transportation Improvements, the City shall provide the developer a credit in accordance with the following: a. Credit Amount. The credit shall be in the amount of the lowest bid received for construction of the facility, as approved by the Director of Public Works. However, in no event shall a credit pursuant to this provision exceed the current cost of the Transportation Improvement. For the purposes of this section, such current Transportation Improvement cost shall be the amount listed in the 2007 Traffic Fee Study Update for that particular Transportation Improvement, as subsequently adjusted pursuant to Sections 11 and 12 of this resolution prior to issuance of the building permit for that Transportation Improvement. Once issued, credit pursuant to this section shall not be adjusted for inflation or any other factor. Credit provided pursuant to this section is not transferable. b. Application of Credit. Developers may apply credit pursuant to this section against the Fee applicable to a particular project, until the credit is exhausted or an excess credit results. The total credit shall be divided by the number of units to determine the amount of credit that can be applied against the Fee for each unit, and if the credit per unit is less than the Fee per unit, the developer shall pay the difference for each unit. c. Reimbursement for Excess Credit. Reimbursement for excess credit shall only be from remaining unspent Fee revenues. Once all the Facilities have been constructed or acquired, and to the extent Fee revenues are sufficient to cover all claims for reimbursement of Fee revenues, including reimbursement for excess credit, developers with excess credit shall be entitled to reimbursement, subject to such developers certifying in writing to the City that the cost of constructing the facility that resulted in an excess credit was not passed on to tenants of the development, and indemnifying the City from land-owner claims for reimbursement under Government Code S 66000 et seq., and S 66001 in particular. If remaining Fee revenues after all of the Transportation Improvements have been constructed or acquired are insufficient to cover all claims for reimbursement of Fee revenues, such claims, including claims for reimbursement of excess credit, shall be reimbursed on a pro rata basis in accordance with applicable law. 15. Effective Date. This resolution shall become effective immediately. In accordance with Government Code S 66017, the Fee shall be effective 60 days from the effective date of this Resolution. 16 . Severability. Each component of the Fee and all portions of this Resolution are severable. Should any individual component of the Fee or any portion of this Resolution be adjudged to be invalid and unenforceable by a body of competent jurisdiction, then the remaining Fee components and/or resolution portions shall be and continue in full force and effect, except as to those Fee components and/or resolution portions that have been adjudged invalid. The City Council of the City of South San Francisco hereby declares that it would have adopted this resolution and each section, subsection, clause, sentence, phrase and other portion thereof, irrespective of the fact that one or more section, subsection, clause sentence, phrase or other portion may be held invalid or unconstitutional. * * * * * 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 25th day of July, 2007 by the following vote: AYES: Councilmembers Mark N. Addiego, Joseph A. Fernekes and Karyl Matsumoto. Vice Mayor Pedro Gonzalez and Mayor Richard A. Garbarino NOES: None ABSTAIN: None ABSENT: None ATTEST: ../k~~ Interim City CI