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HomeMy WebLinkAbout2007-11-14 e-packet~a~~x,s~~ SPECIAL MEETING o ~ o CITY COUNCIL cALIFOR~l~ OF THE CITY OF SOUTH SAN FRANCISCO P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, California 94083 MUNICIPAL SERVICF, BUILDING COMMUNITY ROOM WEDNESDAY, NOVEMBER 14, 2007 6:45 P.M. NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Governmcnt Code of the State of California, the City Council of the City of South San Francisco will hold a Special Meeting on Wednesday, the 14°' day of November, 2007, at 6:45 p.m., in the Community Services Room, 33 Arroyo Drive, South San Francisco, California. Purpose of the meeting: 1. Call to Order 2. Roll Call 3. Public Comments -comments are limited to items on the Special Meeting Agenda 4. Closed Session a) Pursuant to Government Code section 54957.6, conference regarding Executive Management Sidc Letter with labor negotiator, Barry M. Nagel b) Pursuant to Governmcnt Code section 54956.9 (a), conference with lc~,ral counsel regarding existing litigation Hocnish v City of South San Francisco (c) Pursuant to Government Code section 549.56.9 (a), conference with lc~,ral counsel regarding existing litigation Masagrandc v City of South San Francisco 5. Adjournment i Irene Soto, Interim City Clerk c~~H s~F ors ~, ~ ~ ~~9 H ti~ U O w+~ww~ ~9LIFOR~~~ AGENDA REDEVELOPMENT AGENCY CITY OF SOUTH SAN FRANCISCO REGULAR MEETING MUNICIPAL SERVICE BUILDING COMMUNITY ROOM WEDNESDAY, NOVEMBER 14, 2007 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 meeting of the Redevelopment Agency is held on the second 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 andlor 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. RICHARD A. GARBARINO, SR. Chair PEDRO GONZALEZ Vice Chair JOSEPH A.FERNEKES Boardmember RICHARD BATTAGL,IA Investment Officer BARRY M. NAGEL Executive Director MARK N. ADDIEGO Boardmember KARYL MATSUMOTO Boardmember IRENE SOTO Interim City Clerk STEVEN T. MATTAS Counsel PLEASE SILENCE CELL PHONES AND PAGERS HEARING ASSISTANCE EQUIPMENT IS AVAILABLE FOR USE BY THE HEARING-IMPAIRED AT REDEVELOPMENT AGENCY MEETINGS CALL TO ORDER ROLL CALL AGENDA REVIEW PUBLIC COMMENTS CONSENT CALENDAR 1. Motion to approve minutes of October 24, 2007 2. Motion to confirm expense claims of November 14, 2007 3. Resolution awarding a cantract to Z.K. Painting Company for the Linden Avenue Pole Painting project 4. Motion to approve the Grand Avenue Pole Painting Project as complete in accordance with the plans and specifications ADMINISTRATIVE BUSINESS 5. a) Adopt resolution approving purcr~ase and sale agreement for 1 Chestnut Avenue b) Resolution approving a budget amendment appropriating $6.5 million to the South San Francisco Redevelopment Agency Capital Budget for the acquisition of 1 Chestnut Avenue CLOSED SESSION 6. Pursuant to Government Code section 54956.8 real property negotiations related to 216 Baden Avenue property, owner: Evelyn Raffin Trustee, Raffin Family Trust 7. Pursuant to Government Code section 54956.8 real property negotiations related to 356 Grand Avenue property -owner: David Tsui 8. Pursuant to Government Code section 54956.8 real property negotiations related to 314 Miller Avenue property -owner: Edgar and Myda Trinidad 9. Pursuant to Government Code section 54956.8 real property negotiations related to 80 Chestnut Avenue property, owner: California Water Service 10. Pursuant to Government Code section 54956.8 real property negotiations related to 1 Chestnut Avenue property, owner: Ron Price ADJOURNMENT REGULAR REDEVELOPMENT AGENCY MEETING November 14, 2007 AGENDA PAGE 2 Redevelopment Agency Staff Report RDA AGENDA ITEM # 3 DATE: November 14, 20017 TO: Redevelopment .ggency Board FROM: Te~r;% White, Director of Public Works SUBJECT: RESOLUTION A WARDING A CC?~?TRACT TO Z.K. PAINTING COMPANY FOR THE LINDEN AVENUE POLE PAINTING PROJECT RECOMMENDATION It is recommended that the Redevelopment Agency Board adopt a resolution, awarding a contract to Z.K. Painting Company, of Castro Valley, California, as the most responsive proposal in the amount of $33,810, for the Linden Avenue Pole Painting Project and amending the Public Works 2007/2008 operating budget. BACKGROUl1TD!DISCUSSION The Linden Avenue Pole Painting Project will paint the City's various 273 poles and metal infrastructure on Linden Avenue between Railroad Avenue and Airport Boulevard including: street light poles, sign poles, traffic signal poles and traffic signal heads, parking meter poles and controller cabinets. The painting of these items is needed in order to maintain a consistent aesthetic appearance with Grand Avenue. The light poles on Linden Avenue were last painted in 1993. A Request for Proposal (RFP) was prepared for this project and was advertised. The City received nine (9) proposals from contractors. The proposals are as follows: CONTRACTORS Z.K. Painting Company Castro Valley, CA Andy's Painting Berkeley, CA Clean Innovation Corporation Santa Clara, CA Armstrong Painting Inc. Stockton, CA PROPOSAL AMOUNT $33,810.00 $39,700.00 $44,172.92 $46,982.00 Staff Report Subject: Linden Avenue Pole Painting Project Page 2 CONTRACTORS PROPOSAL All~OUNT Varsity Painting $52,080.00 Walnut Creek, CA Affordable Painting Services, lnc. $52,450.00 Sacramento, CA irhetro Structural Painting $60,230.00 South San Francisco, CA Olympic Painting $ 77,300.00 Orange, CA Fix Painting Company $97,740.00 Woodland Hills, CA Pole Painting Estimate: $50,000.00 FT TN i ~TN~ This project will be funded from the Redevelopment Agency Program (RDA/57-10860-0528) in the amount of $38,000, allowing for a minor contingent amount, and supplement the Public Works 2007/2008 operating budget. CONCLUSION It is recommended that the Redevelopment Agency Board award a contract to Z.K. Painting Company, of Castro Valley, California, as the lowest responsive bidder in the amount of $33,810, for the Linden Avenue Pole Painting Project and amending the Public Works 2007/2008 operating budget in the amount of $38,000. By:`e.....~ ~,~ ~. Terry White Director of P~ is Works Approv ` ~' Ba . Na I Executive Direc Attachment: Resolution TW/ra RESOLUTION NO. REDEVLEOPMENT AGENCY, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AWARDING A CONTRACT TO Z.K. PAINTING COMPANY, OF CASTRO VA_ T LEY, CALIFCRNIA, FOR THE LINDEN AVENUE P(JLE PAINTING PROJECT AND AMENDING THE PUBLIC WORKS 2007/2008 OPEP.ATING BUDGET. ~~'HEREAS, staff recommends awarding a contract to Z.K. Painting Company, of Castro Valley, Califoomia, as the most responsive proposal in the amount of $33,810, for the Linder. Avenue Poi_e Painting Project and amending the Public Works 2007/2008 operating budget; and WHEREAS, the Linden .venue Pole Painting Project will paint the City's 273 various poles and metal infrasu-ucrtzre on Linden Aver_ue between Railroad Avenue anti Airport Boulevard as part of an effort to maintain and upgrade the appearance of the infrastructure; and WHEREAS, the process of painting the City's exposed metal infrastructure on Linden Avenue between Railroad Avenue and Airport Boulevard will begin approximately December 10, 2007, and be completed on or around February 11, 2007, with Public Works Department personnel regularly monitoring the painting process of the contractor. WHFRr,AS, project will be fi2nded from the Redevelopment Agency Program in the amount of $38,000, allowing for a minor contingent amount, and supplement the Public Works 2007/2008 operating budget. NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency of the City of South San Francisco hereby awards a contract to Z.K. Painting Company, of Castro Valley, California, for the Linden Avenue Pole Painting Project in the amount of $33,810. BE IT FURTHER RESOLVED that the Executive Director is hereby authorized to execute the documents necessary to effectuate the contract on behalf of the Redevelopment Agency of the City of South San Francisco, subject to approval as to form by the City Attorney. I hereby certify that the forgoing 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 by the folic ~~~ing vote: AYES: N(_%ES: ABSTAi~v: ABSENT: ATTEST: Interim City Clerk Redevelopment Agency Staff Report DATE: November 14, 2007 TO: Redevelopment Agency Board FROM: Terry White, Director of Public ~~'orks RDA AGENDA ITEM # 4 SUBJECT: GRAND AVENUE POLE PAIN"PING PROJECT PROJEC ; NO. `7-~ 10860-0528 REGOl~I1VIEN~ATION It is recommended that the Redevelopment Agency Board, by motion, accept the Grand Avenue Poke Painting Project as complete. BACKGROUND/DISCUSSION This project involved the painting of 374 poles and metal infrastructure on Grand Avenue between Spruce Avenue and Airport Boulevard including: street light poles, traffic signal poles and traffic heads, parking meter poles, controller cabinets, bike bollards and tree well grates. The painting of these items was needed in order to maintain and upgrade the appearance of the infrastructure. Acceptance of the project will provide authorization for staff to file a Notice of Completion. FUNDING This project was funded from the Redevelopment Agency Program (RDA/57-10860-0528) in the amount of $37,580, the original contract amount. CONCLUSION The completion of the Grand Avenu~° Pole Painting Project has improved the appearance of Grand Avenue. ;~ B~% ~/~ ~ Y . ~- Terry White Director of~I'-- lic Works Approved _ ` ~ 7 an M. Nag Executive Dire or TW/GB/ra Redevelopment Agency Staff Report RDA AGENDA ITEM # 5 DATE: November 14, 2007 TO: Redevelopment Agency Board FROM: Marty Van Duyn, Assistant Executive Director SUBJECT: RESOLUTIONS AUTHORIZING A PURCHASE AND SALE AGREEMENT FOR PROPERTY TOTALING 1.68 ACRES LOCATED AT #1 CHESTNUT AVENUE (APN 011-322-030) AND APPROVING AN AMENDMENT TO THE REDEVELOPMENT AGENCY CAPITAL BUDGET RECOMlO~IENDATIOl~T It is recommended the Redevelopment Agency Board adopt the attached resolutions authorizing the Executive Director to execute the attached Purchase and Sale Agreement to acquire the property located at #1 Chestnut Avenue, and approving a budget amendment appropriating $6.5 million to the South San Francisco Redevelopment Agency Capital Budget for this acquisition. BACKGROUND/DISCUSSION The Redevelopment Agency has recently completed acquisition of 13.6 acres of Public Utility Commission (PUC) properties along El Camino Real, Chestnut Avenue and Mission Road for the purpose of assembling land necessary to complete a Master Plan of this area which will include an extension of Oak Avenue, the Centennial Linear Park improvements and the possible development of other public, residential and cormnercial development consistent with the City's General Plan and the El Camino Corridor Redevelopment Plan. The property at #1 Chestnut Avenue, Ron Price Motors, has been put up for sale, however no other auto dealers are interested in the site, therefore allowing the site to possibly be purchased and committed for development before the specific plannir-g of this area is completed. This site is an important element to the over-all development of the corridor and integral to the assemblage of properties the Agency has already purchased. The Agency has a vested interest in seeing compatible development and use of this key site. The site area of the property is 1.684 acres (73,355 square feet), and the building has a total of 27,792 square feet. The original building was constructed as a grocery store in 1956 and added onto over the years, generally to the south and to a partial upper level. The current configuration for auto dealership use was completed in about 1.986. The most recent renovation was in 2002. The building is a wood frame and light steel frame structure, the shop area (8,338 square feet) has 17 auto racks. The site around the building is mostly paved with some landscaping in front, and the site has parking for 141 cars. Staff Report Subject: Resolutions authorizing; a Purchase and Sale Agreement for property totaling 1.68 acres located at #1 Chestnut Avenue (apn 011-322-030) and approving an amendment to the Redevelopment Agency Capital Budget. Page 2 Staff is recommending that the Redevelopment Agency purchase this property, and include it within the Master Planning of this area, which will begin following the closing of the PUC lands acquisition. An appraisal of the property was completed in October, and the proposed purchase price is consistent with the appraised value. The Ron Price Volkswagen dealership has vacated the building; however the Subaru dealership operating from this site is still active with sales and service. The Subaru dealership operates under a "dealer" agreement between Ron Price and Subaru Motors. Staff is working with the ownership and the intent is to negotiate an arrangement that: allows Subaru to remain at the site for as long as possible. FT TNT~TNCT The Redevelopment Agency has sufficient cash in fund balance to pay for this site acquisition. The budget amendment Resolution attached 1:o this Staff Report authorizes an appropriation from Redevelopment reserves of $6,500,000 to pay for this purchase. If, however, in the next 18 months, the Agency Board decides to use this land for a public purpose, it would be acceptable at that time to use bond proceeds for the land. The Board is not being asked tonight to make a decision on how the land is ultimately used, rather, the attached Resolution preserves maximum flexibility to the Board in the future by using cash now, and leaving the door open to reimbursing ourselves our of bond proceeds within the next 18 months, if appropriate. CONCLUSION The purchase of this property will assurE; ultimate development consistent with the proposed area Master Planning and the El Camino Corridor R~°development Area Plan. This site is a key property facing Chestnut Avenue located adjacent to PUC lands currently being purchased by the RDA. The assemblage of this site with these adjacent lands, will provide an opportunity to maximize the development potential and realize improvements not only consistent with the City's General Plan, and the El Camino Corridor Redevelopment Plan, but also part of the specific area planning the City Council and Redevelopment Agency Board will be demanding in the Master Planning of this immediate area. Staff therefore recommends that the Board approve the attached Resolution authorizing the Executive Director to execute a Purchase and Sale Agreement for the acquisition of #1 Chestnut Avenue, and that the Board adopt the attached Resolution amending the Redevelopment Agency Budget to fund the acquisition of this property in the amount of X6,500,000. Staff Report Subject: Resolutions authorizin€; a Purchase and Sale Agreement for property totaling 1.68 acres located at #1 Chestnut Avenue (apn Ol 1-322-030) and approving an amendment to the Redevelopment Agency Capital Budget. Page 3 By: --- Marty Van Du Assistant Exec ~ve Director A roved: `' Pp Barry M. Nagel Executive Director Attachments: Resolution authorizing Purchase and Sale Agreement Resolution amending RDA budget Copy Purchase and Sale Agreement Exhibit A Exhibit B RE'~SOLUTION NO REDE~IELOPMENT AGENCY, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION EXECUTION OF A PURCHASE AND SALE AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO AND RON M. AND FLORINS J. PRICE :FOR THE PURCHASE OF REAL PROPERTY LOCATED AT ONE CHESTNUT STREET IN SOUTH SAN FRANCISCO, AND AUTHORIZING THE EXECUTION OF DOCUMENTS IN CONNECTION THEREWITH WHEREAS, the Redevelopment Agency of the City of South San Francisco ("Agency") is a redevelopment agency existing pursuant to the Community Redevelopment Law, California Health and Safety Code Section 33000, et seq., and pursuant to the authority granted thereunder, has the responsibility to carry out the Redevelopment Plan ("IZedevelopanent Plan") for the El Camino Corridor Area Project ("Project Area "); and WHEREAS, Ron M. and Florine J. Price (the "®wners") are the owner of real property in San Mateo County, California located at 1 Chestnut Avenue in the City of South San Francisco, (the "Property"); and WHEREAS, the Owners desire to sell the Property; and WHEREAS, the Agency desires to acquire the Property to facilitate development and construction of public benefits within the Project Area; and WHEREAS, the Agency and the Owners have negotiated a purchase and sale agreement ("Purchase and Sale Agreement") substantially in the form on file with the Agency Secretary; and WHEREAS, the Purchase anal Sale Agreement conditions, among other things, Agency's purchase of the Property on Agency's review and approval of the environmental condition of the Property; and WHEREAS, the Property is located in the Project Area, and the purchase of the Property as provided for in the Purchase and Sale Agreement is consistent with and furthers the goals and objectives of the Redevelopment Plan. 1027643.1 NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of South San Francisco that it hereby: 1. Approves the purchase of the Property from Ron M. and Florine J. Price. 2. Authorizes the Executive Director of the Agency (or his designee) to execute the Note, and to make revisions to the Purchase and Sale Agreement, and to make such other changes, with the advice of counsel, which do not materially or substantially increase the Agency's obligations thereunder, to sign all documents, to make all approvals and take all actions necessary or appropriate to carry out and implement the Purchase and Sale Agreement and to administer the Age;ncy's obligations, responsibilities and duties to be performed under the Purchase and Sale Agreement. 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 _, 2007 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: Agency Secretary 1027643.1 RE'~SOLUTION NO. REDEVELOPMENT AGENCY', CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AMENDING THE REDEVELOPMENT AGENCY BUDGET TO FUND 'THE ACQUISITION OF ONE CHESTNUT AVE. WHEREAS, the Agency is a redevelopment agency existing pursuant to the Community Redevelopment Law, California Health and Safety Code Section 33000, et seq., and pursuant to the authority granted thereunder, has the responsibility to carry out the Redevelopment Plan ("Redevelopment Plan") for the El Camino Corridor Area Project ("Project Area "); and WHEREAS, real property located at One Chestnut Ave. in South San Francisco ("Property") currently being used by Ron Price Mators is for sale, and WHEREAS, the Agency has approved the acquisition of real property from the San Francisco Public Utilities Commission ("PUC Parcel") which is located adjacent to the Property, and WHEREAS, combining the Property and the PUC Parcel would allow for a unified Master Plan for development of said real property; and WHEREAS, the Property is located in the Project Area, is at a key intersection in the City and the purchase of the Property is consistent with and furthers the goals and objectives of the Redevelopment Plan. NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency Board of the City of South San Francisco hereby appropriates $6,500,000 to the Redevelopment Agency capital budget for the purpose of acquiring One Chestnut Ave. Funds will come from the Redevelopment Agency Fund Balance. I hereby certify that the foregc-ing 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 ~ 2007 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: Agency Secretary PURCHASE AND SALE AGREEMENT THIS PURCHASE AND SALE AGREEMENT (this "Agreement") is entered into effective as of , 2007', (the date upon which this Agreement the date that this Agreement is fully approved and executed by Buyer and Seller and hereafter, the "Effective Date") by and between Ronald M. Price and Florine J. Price, as Trustees for the Ronald M. Price and Florine J. Price Living Trust ("Seller") and the City of South San Francisco Redevelopment Agency, a public body, corporate and politic ("Buyer"). Seller and Buyer are hereinafter referred to as the "Parties." WHEREAS, Seller is the owner of that certain real property in San Mateo County, California, known as APN 011-322-030, located at 1 Chestnut Avenue in the City of South San Francisco, and more particularly described in Exhibit A attached hereto and incorporated herein by this reference (the "Land"); WHEREAS, in accordance with the terms and conditions contained herein, Buyer desires to purchase, and Seller desires to sell, the Land together with all improvements located thereon and all easements, hereditaments, and appurtenances belonging to or inuring to the benefit of Seller and pertaining to the Land (all of the foregoing collectively hereinafter, the "Property"); WHEREAS, Buyer is a redevelopment agency existing pursuant to the Community Redevelopment Law, California Health and Safety Code Section 33000, et seq., and pursuant to the authority granted thereunder, Buyer has the responsibility to carry out the Redevelopment Plan ("Redevelopment Plan") for the. El Camino Corridor Area Project ("Project Area "); WHEREAS, the Property is located in the Project Area, and the purchase of the Property as provided for in this Agreement is consistent with and furthers the goals and objectives of the Redevelopment Plan. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows. 1. Agreement to Sell and Purchase. Seller agrees to sell and Buyer agrees to purchase the Property subject to the terms and conditions of this Agreement. Z. Purchase Price; Eminent Domain Dismissal. The purchase price for the Property shall be Six Million Five Hundred Thousand U.S. Dollars ($6,500,000) ("Purchase Price"). 3. Conveyance of Title. At the close of escrow, Seller shall convey by grant deed to Buyer marketable fee simple title to the Property, free and clear of all recorded and unrecorded liens, encumbrances, assessments, leases and taxes except: (a) the provisions and effect of the Redevelopment Plan; 102777.1 (b) taxes for the fiscal year in which the escrow for this transaction closes, which shall be prorated as of the close of escrow; and (c) such other conditions, liens, encumbrances, restrictions and exceptions as may be approved in writing by Buyer ("Permitted Exceptions"). 4. Escrow; Escrow Instructians. Within five (5) business days following the Effective Date, the Parties shall open an escrow to consummate the purchase and sale of the Property pursuant to this Agreement at the office of Alliance Title, 1111 Bayhill Drive, Suite 240, San Bruno, CA 94066 ("Title Company" or "Escrow Agent") or such other title company as maybe mutually agreed upon by the Parties. Upon the opening of escrow, the Parties shall deposit with the Escrow Agent an executed copy of this Agreement, which shall serve as the joint escrow instructions of Buyer and Seller for thia transaction, together with such additional instructions as maybe executed by the Parties and delivered to the Escrow Agent. 5. Earnest Money Deposit. Upon the opening of escrow and in no event later than seven (10) business days after the Effective Date, Buyer shall deposit the sum of Five Thousand Dollars ($5,000) "Earnest Money Deposit") into escrow in an interest bearing account for the benefit of Buyer. The Earnest Money :Deposit, and all interest earned thereon, shall be applied to the Purchase Price at the close of escrow. All amounts deposited by the Parties with the Escrow Agent, including the Earnest Money Deposit, shall be held in escrow in an interest-bearing account. 6. Title Documents. Within seven (7) days following the opening of escrow, Seller shall deliver or cause to be delivered to Buyer a preliminary title report ("Preliminary Report") on the Properly issued by the Title Company, setting forth all liens, encumbrances, easements, restrictions, conditions, pending litigation, judgments, administrative proceedings, and other matters of record affecting Seller's title to the Property, together with copies of all documents relating to exceptions listed in the Preliminary Report ("Title Exceptions") and complete and legible copies of all instruments refen-ed to therein, as requested by Buyer. Buyer shall approve or disapprove each Title Exception tivithin fourteen (14 days following Buyer's receipt of the Preliminary Report. Buyer's failurE; to object within such period shall be deemed to be a disapproval of the Title Exceptions. If Buyer objects or is deemed t:o have disapproved any Title Exception, Seller shall use its best efforts at Seller's sole expense to remove from title or otherwise satisfy each such exception no later than fourteen (14) days prior to the close of escrow and in a form that is reasonably satisfactory to Buyer. If Seller fails to remove or satisfy any Title Exception to the satisfaction of Buyer, Buyer shall have the option, in its sole discretion, to terminate this Agreement or to accept title subject to such exception. In the event Buyer elects to terminate this Agreement, the Earnest Money Deposit, including interest thereon, and all other funds and documents deposited into escrow by or on behalf of Buyer shall be returned to Buyer, and all rights and obligations hereunder shall terminate. It shall be a condition to the close of escrow that Title Company shall deliver to Buyer, within five (5) days after Buyer has approved the Preliminary Report pursuant to this Section, 102777.1 2 and in no event later than seven (7) days prior to the close of escrow, a title commitment for an ALTA Owner's Title Insurance Policy ("Title Policy") to be issued by Title Company in the amount of the Purchase Price for the benefit and protection of Buyer, showing title to the Property vested in Buyer, subject only to the Permitted Exceptions, including such endorsements as may reasonably be requested by F>uyer, and committing Title Company to issue the Title Policy to Buyer upon the close of escrow. 7. Closing Documents and Funds. (A) Seller. (a) Within twenty-five (25) days following the opening of escrow, Seller shall deposit into escrow all of the following;: (i) a Grant Deed, substantially in the form attached hereto as Exhibit B ("Grant Deed"), duly executed and ac'.knowledged, conveying to Buyer good and marketable fee simple title to the Property, subject only to the Permitted Exceptions approved pursuant to this Agreement; (ii) Seller's affidavit of non-foreign status and Seller's certification that Seller is a resident of California, each executed by Seller under penalty of perjury as required by state and federal law; and (iii) such additional duly executed instruments and documents as the Escrow Agent may reasonably require to consummate the transaction contemplated hereby. (b) Unless Seller elects to have the following charges deducted from the funds to be distributed to Seller at close of escrow, no later than one (1) business day prior to close of escrow, Seller shall deposit into escrow inunediately available funds in the amount necessary to pay: (i) all governmental conveyance fees and transfer taxes; and (ii) one-half of .all escrow fees and recording fees. (B) Bu~er• (a) Within twenty-five (25) days following the opening of escrow, Buyer shall deposit into escrow all of the following: (i) a duly executed Certificate of Acceptance in the form shown in Exhibit C, as required by California Government Code Section 27281; and (ii) such additional duly executed instruments and documents as the Escrow Agent may reasonably require to consummate the transaction contemplated hereby. 102777.1 3 (b) No less than one (1) business day prior to the close of escrow, Buyer shall deposit into escrow immediately available funds in the amount, which together with the Earnest Money Deposit plus interest thereon, if any, is equal to: (i) the Purchase Price as adjusted by any prorations between the Parties; (ii) one-half (1/2.) of all escrow fees, and recording fees; and (iii) the cost of the Title Policy. 8. Close of Escrow. The Parties intend to close escrow within ninety (90) days following the date upon which escrow is opened, unless this Agreement is terminated pursuant to the terms hereof or extended by mutual agreement of the Parties. The Escrow Agent shall close escrow by: (i) causing the Grant Deed to be recorded in the official records of San Mateo County, California; (ii) issuing the Title Policy and delivering same to Buyer; (iii) delivering to Seller the monies constituting the Purchase Price less prorated amounts and charges to be paid by or on behalf of Seller; and (iv) delivering to Buyer the original Grant Deed, together with a conformed copy thereof indicating recording information thereon. Possession of the Property shall be delivered to Buyer at the close of escrow. 9. Closing Costs. Each Parry shall pay one-half (1/2) of all escrow fees (including the costs of preparing documents and instruments), and recording fees. Buyer shall pay title insurance and title report costs and Seller shall pay all govermnental conveyance fees and all transfer taxes. 10. Prorations. At the close of escrow, the Escrow Agent shall make the following prorations: (i) property taxes shall be prorated as of the close of escrow based upon the most recent tax bill available, including amy propei-ry taxes which imay be assessed after the close of escrow but which pertain to the period prior to the transfer of title to the Property to Buyer, regardless of when or to whom notice- thereof is delivered; and (ii) any bond or assessment that constitutes a lien on the Property at the; close of escrow shall be assumed by Buyer. 11. Buyer's Conditions to Closing. The close of escrow and Buyer's obligation to purchase the Property are conditioned. upon: (i) the performance by Seller of each obligation to be performed by Seller under this Agreement within the applicable time period, or the waiver by Buyer of such obligation; (ii) Seller's representations and warranties contained in this Agreement being true and correct as of the Effective Date and the close of escrow; (iii) the commitment by Title Company to issue and deliver the Title Policy, subject only to the Permitted Exceptions; and (iv) Buyer's approval of the condition of the Property pursuant to Section 12. Should any condition to closing fail to occur, excepting any such conditions that have been waived by Buyer, Buyer shall have the right, exercisable by giving written notice to Seller, to cancel the escrow, terminate this Agreement, and recover any and all amounts paid by Buyer to Seller or deposited with the Escrow Agent by or on behalf of Buyer, including the Earnest 102777.1 4 Money Deposit and interest thereon. The exercise of this right by Buyer shall not constitute a waiver by Buyer of any other rights Buyer may have at law or in equity. 12. )Buyer's Additional Conditions to Closing. Buyer's obligation to purchase the Property is also conditioned upon Buyer's review and approval of the condition of the Property pursuant to this Section. A. Feasibility Studies. During the period commencing on the Effective Date and ending on the sixtieth (60th) day after the opening of escrow ("Due Diligence Period") Buyer may, at Buyer's expense, undertake an inspection and review of the Property, including without limitation (i) a review of the physical condition of the Property, including but not limited to, a Phase II Enviromnental Site Assessment to include inspection and examination of soils, environmental factors, and Hazardous Materials (as defined in Exhibit D attached hereto), (ii) review of archeological information relating to the Property; if any, (iii) a review and investigation of the effect of any zoning, maps, permits, reports, engineering data, regulations, ordinances, and laws affecting the Property, and (iv) an evaluation of the Property to determine its feasibility for Buyer's intended use. Buyer may consult with or retain civil engineers, contractors, soils and geologic engineers, architects and other specialists in its investigation, and may consult with or retain other consultants to determine if the Property is suitable for Buyer's intended use. If Buyer's environmental consultants require additional time to determine the existence and extent of any Hazardous Materials on the Property, Buyer shall have the right, exercisable by delivering written notice to Seller prior to the expiration of the Due Diligence Period, to extend the Due Diligence Pf;riod and the date for Close of Escrow for up to thirty (30) additional days to complete the testing. B. Other matters. During the Due Diligence Period, Buyer may inspect, examine, survey and review any other matters concerning the Property, including without limitation, any and all studies or reports provided by Seller, all contracts, leases, rental agreements and other obligations relating to the Property, and the Property's conformity with all applicable laws and regulations. During the Due Diligence Period, Buyer shall have the right to perform due diligence regarding t:he investigation, assessment, and monitoring of the environmental condition of the Property, and upon completion of the Due Diligence Period, unless Buyer elects to terminate this Agreement pursuant to the terms hereof, Buyer will purchase the Property in its "AS IS" condition as such condition exists at the end of the Due Diligence Period. C. Disapproval of Property Condition. Should Buyer fail to approve the condition of the Property or its feasibility for Buyer's intended use in writing within five (5) days following the end of the Due Diligence Period, Buyer shall have the right, exercisable by giving written notice to Seller, to cancel the escrow, terminate this Agreement, and recover any and all amounts paid by Buyer to Seller or deposited with the Escrow Agent by or on behalf of Buyer, including the Earnest Money Deposit: and interest thereon. The exercise of this right by Buyer shall not constitute a waiver by Buyer of any other rights Buyer may have at law or in equity. 102777.1 5 13. Studies, Reports and Investigations. Seller agrees to make available to Buyer within five (5) business days following the Effective Date, any and all information, studies, reports, investigations, contracts, leasers, rental agreements and other obligations concerning or relating to the Property which are in Seller's possession or which are reasonably available to Seller, including without limitation surveys, studies, reports and investigations concerning the Property's physical, environmental o:r geological condition, habitability, or the presence or absence of Hazardous Materials in, on or under the Property and the compliance by the Property with Environmental Laws (as defined in Exhibit D). 14. R_,iaht of Entry. Prior to close of escrow, Buyer and Buyer's agents shall have the right, upon reasonable notice to Seller, to enter upon the Property for the purpose of inspecting, examining, surveying and reviewing the Property in accordance with Section 12. Buyer's inspection, examination, survey and review of the Property shall be at Buyer's sole expense. Buyer shall obtain Seller's advance consent in writing to any proposed physical testing of the Property by Buyer or Buyer's agents,, which consent shall not be unreasonably conditioned, withheld or delayed. Buyer shall repair, restore and return the Property to its original condition after such physical testing, at Buyer's sole expense. Buyer shall schedule any such physical tests during normal business hours unless otherwise approved by Seller. Buyer agrees to indemnify Seller and hold Seller harmless from and against all liability, loss, cost, damage and expense (including, without limitation, reasonable attorney's fees and costs of litigation) resulting from Buyer's or Buyer's agents entry upon the Property, except to the extent that such liability, loss, cost, damage and expense arises as a result of the negligence or other wrongful conduct of Seller or its agents. 15. Seller's Conditions to Closing. The close of escrow and Seller's obligation to sell the Property pursuant to this Agreement are conditioned upon: (i) the performance by Buyer of each obligation to be performed by Buyer under this Agreement within the applicable time period, or waiver by Seller of such obligation; and (ii) Buyer's representations and warranties contained in this Agreement being true and correct as of the Effective Date and the close of escrow. 16. Seller's Representations and Warranties. Seller hereby represents and warrants that except as disclosed in writing to Buyer, as of the Effective Date and as of the close of escrow: (i) the Property is free and has always been free of Hazardous Materials and is not and has never been in violation of any Environmental Law; (ii) there are no buried or partially buried storage tanks located on the Property; (iii) Seller has received no notice, warning, notice of violation, administrative complaint, judicial complaint, or other formal or informal notice alleging that conditions on the Property are or have ever been in violation of any Environmental Law or informing Seller that the Property is subject to investigation or inquiry regarding Hazardous Materials on the Property or the potential violation of any Environmental Law; (iv) there is no monitoring program required by the Enviromnental Protection Agency or any other governmental agency concerning the Property; (v) no toxic or hazardous chemicals, waste, or substances of any kind have ever beers spilled, disposed of, or stored on, under or at the Property, whether by accident, burying, drainage, or storage in containers, tanks, holding areas, or any other means; (vi) the Property has never been used as a dump or landfill; (vii) Seller has disclosed to Buyer all information, records, and studies in Seller's possession or reasonably 102777.1 6 available to Seller relating to the Property concerning Hazardous Materials; (viii) Seller has not received any notice from anv governmental authority of any threatened or pending zoning, building, fire, or health code violation or violation of other governmental regulations concerning the Property that have not previously been corrected, and no condition on the Property violates any health, safety, fire, environmentai~, sewage, building, or other federal, state or local law, ordinance or regulation; (ix) no contracts, licenses, leases or commitments regarding the maintenance or use of the Property or allowing any third party rights to use the Property are in force; (x) there are no threatened or pending actions, suits, or administrative proceedings against or affecting the Property or any portion thereof or the interest of Seller in the Property; (xi) there are no threatened or pending condemnation, eminent domain, or similar proceedings affecting the Property or any portion thereof; (xii) Seller has not received any notice from any insurer of defects of the Property which have not been corrected; (xiii) there are no natural or artificial conditions upon the Property or any part thereof that could result in a material and adverse change in the condition of the Property; (xiv) all information that Seller has delivered to Buyer, either directly or through Seller's agenits, is accurate and complete; and (xv) Seller has disclosed all material facts concerning the Property. Seller further represents and warrants that this Agreement and all other documents delivered or to be delivered in connection herewith prior to or at the close of escrow: (a) have been duly authorized, executed, and delivered by Seller; (b) are binding obligations of Seller; (c) are collectively sufficient to transfer all of Seller's right, title and interest in and to the Property; and (d) do not violate the provisions of any agreement to which Seller is a party or which affects the Property. Seller further represents and warrants that the persons who have executed this Agreement on behalf of Seller are authorized to do, that Seller has the legal right to enter into this Agreement and to perform all of its terms and conditions, and that this Agreement is enforceable against Seller in accordance with its terms. Seller shall notify Buyer of any facts that would cause any of the representations contained in this Agreement to be untrue as of the close of escrow. If Buyer reasonably believes that a fact materially and adversely affects the Property, Buyer shall have the option to terminate this Agreement by delivering written notice thereof to Seller. In the event Buyer elects to terminate this Agreement, the Earnest Money Deposit, including interest thereon, and all other funds and documents deposited into escrow by or on behalf of Buyer shall be returned to Buyer, and all rights and obligations hereunder shall germinate. Seller shall indemnify, defend and hold harmless Buyer from all loss, cost, liability, expense, damage or other injury, including without limitation, attorneys' fees and all other costs and expenses incurred by reason of, or in any manner resulting from the breach of any representation or warranty contained in this Section. 17. Seller's Covenants. Seller covenants that from the Effective Date and through the close of escrow, Seller: (i) shall not permit any liens, encumbrances, or easements to be placed on the Property, other than Permitted Exceptions; (ii) shall not enter into any agreement regarding the use, sale, rental, management, repair, improvement, or any other matter affecting the Property that would be binding on Buyer or the Property after the close of escrow without the 102777.1 7 prior written consent of Buyer; (iii) shall not permit any act of waste or act that would tend to diminish the value of the Property for any reason, except that caused by ordinary wear and tear; and (iv) shall maintain the Property in its condition as of the Effective Date, ordinary wear and tear excepted, and shall manage the Property substantially in accordance with Seller's established practices. 18. Bu, erg 's Representations, Warranties and Covenants. Buyer represents, warrants and covenants that this Agreement ar~d all other documents delivered in connection herewith, prior to or at the close of escrow: (i;1 have been duly authorized, executed, and delivered by Buyer; (ii) are binding obligations of Buyer; and (iii) do not violate the provisions of any agreement to which Buyer is a party. Buyer further represents and warrants that the persons who have executed this Agreement on behalf of Buyer have are duly authorized to do, that Buyer has the legal right to enter into this Agreement and to perform all of its terms and conditions, and that Agreement is enforceable against ]Buyer in accordance with its terms. 19. Indemnification. A. Seller Indemnification. Seller agrees to defend, indemnify and hold Buyer harmless from and against any and all. claims, liens, demands, losses, damages, liabilities, fines, penalties, charges, administrative and judicial proceedings and orders, and all costs incurred in connection therewith (including without limitation actual attorneys' fees and costs of experts and consultants) arising from (i) any obligation of Seller not expressly assumed by the Buyer related to the ownership or operation of the Property prior to the Close of Escrow; (ii) personal injury or property damage relating to the Property which occurred prior to the date of Close of Escrow and not caused by the acts or omissions of the Buyer or Buyer's agents, employees, or invitees; and (iii) the breach of any of Seller's representations made under this Agreement. The indemnity contained in this subsection shall survive the termination of this Agreement and the consummation of the Close of Escrow. B. Buyer Indemnification. Buyer agrees to defend, indemnify and hold Seller harmless from and against any and all claims, liens, demands, losses, damages, liabilities, fines, penalties, charges, administrative and judicial proceedings and orders, and all costs incurred in connection therewith (including without limitation actual attorneys' fees and costs of experts and consultants) arising from (i) any obligation of Buyer not expressly assumed by the Seller related to the ownership or operation of the Property after the Close of Escrow; (ii) personal injury or property damage relating to the Property which occurred after the date of Close of Escrow and not caused by the acts or omissions of Seller or Seller's employees, agents, board members, or officers ;and (iii) the breach of any of Buyer's representations made under this Agreement. The indemnity contained in this section shall survive the termination of this Agreement and the consummation of the Close of Escrow. Notwithstanding any other provision in this subsection, Buyer is not obligated to defend or indemnify Sellers or hold Sellers harmless for any claims related to Hazardous Materials in, on or under the Property or any portion thereof or any claims arising from federal, state, and local laws, ordinances, regulations, orders and directives pertaining to Hazardous Materials. 102777.1 $ 20. Damage and IDestruction. In the event of any damage or other loss to the Property, or any portion thereof, caused by fire or other casualty prior to the close of escrow in an amount not exceeding $50,000, Buyer shall not be entitled to terminate this Agreement, but shall be obligated to close the escrow and purchase the Property as provided in this Agreement, without abatement in the Purchase Price, provided that Seller shall: (i) assign and transfer to Buyer all of Seller's rights under any insurance policy covering the damage or loss, and all claims for monies payable from Seller's insurer(s) in connection with the damage or loss, and (ii) pay to Buyer at the close of escrow the amount of Seller's deductible under the insurance policy or policies covering the damage or loss. In the event of damage or destruction of the Property or any portion thereof prior to the close of escrow in an amount in excess of $50,000, Buyer may elect either to terminate this Agreement upon written notice to Seller, or to consummate the purchase of the Property, in which case Seller ;;hall (i) assign and transfer to Buyer all of Seller's rights under any insurance policy covering th.e damage or loss, and all claims for monies payable from Seller's insurer(s) in connection with i:he damage or loss, and (ii) pay to Buyer at the close of escrow the amount of Seller's deductible under the insurance policy or policies covering the damage or loss. In the event Buyer elects to terminate this Agreement, the Earnest Money Deposit, including interest thereon, an+i all other funds and documents deposited into escrow by or on behalf of Buyer shall be returned to Buyer, and all rights and obligations hereunder shall terminate. 21. )Brokers. Each Party warrants and represents to the other that no person or entity can properly claim a right to a real estate commission, brokerage fee, finder's fee, or other compensation with respect to the transaction contemplated by this Agreement. Each Party agrees to~ defend, indemnify and hold harmless the other Parry from any claims, expenses, costs or liabilities arising in connection with a breach of this waiYanty and representation. The terms of this Section shall survive the expiration or earlier termination of this Agreement. 22. Assignment. Buyer shall l;iave the right to assign all rights and obligations under this Agreement to any party and no approval of any such assignment shall be necessary. 23. Notices. Except as otherwise specified in this Agreement, all notices to be sent pursuant to this Agreement shall be made in writing, and sent to the Parties at their respective addresses specified below or to such other address as a Party may designate by written notice delivered to the other parties in accordance with this Section. All such notices shall be sent by: (i) personal delivery, ir- which case notice is effective upon delivery; (ii) certified or registered mail, return receipt requested, in which case notice shall be deemed delivered on receipt if delivery is confirmed by a return receipt; (iii) nationally recognized overnight courier, with charges prepaid or charged to the sender's account, in which case notice is effective on delivery if delivery is confirmed by the delivery service; (iv) facsimile transmission, in which case notice shall be deemed delivered upon transmittal, provided that (a) a duplicate copy of the notice is promptly delivered by first- 102777.1 9 class or certified mail or by overnight delivery, or (b) a transmission report is generated reflecting the accurate transmission thereof. Any notice given by facsimile shall be considered to have been received on the next business day if it is received after 5:00 p.m. recipient's time or on a nonbusi:ness day. ;Buyer: South San Francisco Redevelopment Agency P.O. Box 711 South Sa~1 Francisco, CA 94083 Attention.: Executive Director Telephone: (650) 829-6620 Facsimile;: (650) 829-6623 with a copy to: Meyers, ]~1ave, Riback, Silver & Wilson 575 Marl~et Street, Suite 2600 San Francisco, CA Attentior.~: Steven T. Mattas, Agency Counsel Seller: Ronald M and Florine J. Price 1 Chestnut Avenue South San Francisco, CA 94080 24. Litigation Costs. If any legal action or any other proceeding, including arbitration or action for declaratory relief, is brought for the enforcement of this Agreement or because of an alleged breach or default in connection. with this Agreement, the prevailing Party shall be entitled to recover reasonable attorneys' fees and other costs, in addition to any other relief to which such Party maybe entitled. 25. Waivers; Modification. No waiver of any breach of any covenant or provision of this Agreement shall be deemed a waiver of any other covenant or provision hereof, and no waiver shall be valid unless in writing, and executed by the waiving party. An extension of time for performance of any obligation o:r act shall not be deemed an extension of the time for performance of any other obligation or act, and no extension shall be valid unless in writing and executed by the waiving party. This Agreement may be amended or modified only by a written instrument executed by the Parties. 26. Successors. This Agreement shall bind and inure to the benefit of the respective heirs, personal representatives, successors and assignees of the Parties. 27. Provisions Not Merged With Deeds. None of the provisions, terms, representations, warranties and covenants of this Agreement are intended to or shall be merged by the Grant Deed, and neither the Grant Deed nor• any other document shall affect or impair the provisions, teens, representations, warranties and covenants contained herein. Without limiting the generality of the foregoing, Seller's representations, warranties and covenants contained herein shall survive the close of escrow. 102777.1 10 28. Construction. The section headings used herein are solely for convenience and shall not be used to interpret this Agreement. The Parties acknowledge that this Agreement is the product of negotiation and compromise; on the part of both Parties, and the Parties agree, that since both Parties have participated in t:he negotiation and drafting of this Agreement, this Agreement shall not be construed as if prepared by one of the Parties, but rather according to its fair meaning as a whole, as if both Parties had prepared it. 29. Action or Approval. Where action and/or approval by Buyer is required under this Agreement, Buyer's Executive Director may act on and/or approve such matter unless the Executive Director determines in his or her discretion that such action or approval requires referral to Buyer's Board for consideration. The time periods afforded Buyer for any event, inspection, feasibility, due diligence, escrow closing or otherwise shall not be extended by any such referral to Buyer's Board. 30. Entire Agreement. This Agreement, including Exhibits A to D attached hereto and incorporated herein by this reference, contains the entire agreement between the Parties with respect to the subject matter hereojF, and supersedes all prior written or oral agreements, understandings, representations or statements between the Parties with respect to the subject matter thereto. 31. Counterparts. This Agrec;ment imay be executed in one or more counterparts, each of which shall be an original and all of which taken together shall constitute one and the same instrument. 32. Severability. If any term., provision, or condition of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement shall continue in full force and effect unless the rights and obligations of the Parties have been materially altered or abridged thereby. 33. No Third Party Beneficiaries. Nothing in this Agreement is intended to or shall confer upon any person, other than th.e Parties and their respective successors and assigns, any rights or remedies hereunder. 34. Parties Not Co-Venturers. Nothing in this Agreement is intended to or shall establish the Parties as partners, co-venturers, or principal and agent with one another. 35. Non-Liability of Officials, Employees and Agents. No member, official, employee or agent of Buyer shall be personally liable to Seller or its successors in interest in the event of any default or breach by Buyer or for any amount which may become due to Seller or its successors in interest pursuant to this Agreement. 36. Time of the Essence. Tiine is of the essence for each condition, term, obligation and provision of this Agreement. 102777.1 11 37. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California without regard to principles of conflicts of laws. 38. Time for Performance. When the time for performance of any obligation under this Agreement is to be measured from another event, such time period shall include the day of the other event. If the day of the time for performance is not a regular business day, then the time for such performance shall be by the regular business day following such day. SIGNATURES ON FOLLOWING PAGF 102777.1 12 IN WITNESS WHEREOF, th.e Parties have executed this Agreement as of the date first written above. IB~UYER: By: ATTEST: By Agency Secretary APPROVED AS TO FORM: By Agency Counsel SOUTH SAN FRANCISCO REDEVELOPMENT AGENCY' Barry M. Nagel, Executive Director '.TELLER: Ronald M. Price I3y: Florine J. Price By: 102777.1 13 Exhibit A LEGAL DESCRIPTI®N 102~7~.i 14 F.xhihit R Recording Requested by and when Recorded, return to: CITY OF SOUTH SAN FRANCISCO REDEVELOPMENT AGENCY P.O. Box 711 South San Francisco, CA 94083 Attn: Executive Director EXEMPT FROM RECORDING FEES PER GOVERNMENT CODE §§6103, 27383 GRANT DEED ABOVE THIS LINE RESERVED FOR RECORDER'S USE) For valuable consideration, receipt of which is hereby acknowledged, Ronald M. and Florine J. Price, as Trustees, for the Ronald M. and Florine J. Price Living Trust ("Grantors"} hereby grants to the City of South San. Francisco Redevelopment Agency, a public body, corporate and politic ("Grantee") all that real property located in the City of South San Francisco, County of San Mateo, Statc; of California described in Exhibit A attached hereto and incorporated herein. IN WITNESS WHEREOF, (Jrantors each have executed this Grant Deed as of .2008. GRANTOR By: Ronald M. Price By Florine J. Price 102777.1 15 EXHIBIT A to Grant Deed (Attach legal description.) 102777.1 16 F,xhihit C CERTIFICATE OF ACCEPTANCE This is to certify that the interest in real property conveyed by the Grant Deed dated 2006, executed by F:onald M. and Florine J. Price to the City of South San Francisco Redevelopment Agency, a public body, corporate and politic ("Agency"), is hereby accepted on behalf of the Agency by it:> Executive Director pursuant to authority conferred by Resolution No. , adopted by the Agency on , 2008, and that the Grantee consents to recordation of the Grant De;ed by its duly authorized officer. Dated , 2008 By: Executive Director ATTEST: By: Agency Secretary APPROVED AS TO FORM: By: Agency Counsel Print Name: 102777.1 17 ACKNOWLEDGMENT State of California ) ss. County of San Mateo ) On 20 before me, a Notary Public, personally appeared ,personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. NOTARY PUBLIC 875563-2 ~ $ ACKNOWLEDGMENT State of California ) ss. County of Sonoma ) On 20 before me, , a Notary Public, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. NOTARY PUBLIC 875563-2 19 Exhibit D HAZARDOUS MATERIALS; ENVIRONMENTAL LAW "Hazardous Materials" means any substance, material or waste which is or becomes regulated by any federal, state or local governmental authority, agency or governmental body, and includes without limitation (i) petroleum or oil or gas or amy direct or indirect product or by-product thereof; (ii) asbestos and any material containing asbestos; (iii) any substance, material or waste regulated by or listed (directly or by reference) as a "hazardous substance", "hazardous material", "hazardous waste", "toxic waste", "toxic pollutant", "toxic substancE;", "solid waste" or "pollutant or contaminant" in or pursuant to, or similarly identified as hazardous to lhuman health or the environment in or pursuant to, the Toxic Substances Control Act (15 U.S.C. 2601, et seq.); the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. Section 9601, et seq.), the Hazardous Materials Transportation Authorization Act (49 U.S.C. Section 5101, et seq.), the Resource Conservation and Recovery Act (42 U.S.C. 6901, et seq.), the Federal Water Pollution Control Act (33 U.S.C. Section 1251), the Clean Air Act (42 U.S.C. Section 7401, et seq.), the California Underground Storage of Hazardous Substances Act (California Health and Safety Code Section 25280, et seq.), the California Hazardous Substances Account Act (California Health and Safety Code Section 25300, et seq.), the California Hazardous Waste Act (California Health and Safety Code Section 25100, et seq.), the California Safe Drinking Water and Toxic; Enforcement Act (California Health and Safety Code Section 25249.5, et seq.), and the Porter-Cologne Water Quality Control Act (California Water Code Section 13000, et seq.), as they now exist or are hereafter amended, together with any regulations promulgated thereunder; (iv) any substance, material or waste which is defined as such or regulated by any "Superfund" or "Superlien" law, or any Environmental Law; (v) any material determined to be hazardous based on deleterious properties such as ignitability, corrosivity, reactivity, carcinogenicity or toxicity; or (vi) any other substance, material, chemical, waste or pollutant identified as hazardous or toxic and regulated under any other federal, state or local environmental law, including without limitation, asbestos, polychlorinated biphenyls, petroleum, natural gas and synthetic fuel products and by-products. "Environmental Law" means all federal, state or local statutes, ordinances, rules, regulations, orders, decrees, judgments or common law doctrines, and provisions and conditions of permits, licenses and other operating authorizations regulating;. or relating to, or imposing liability or standards of conduct concerning (i) pollution or protection of the environment, including natural resources; (ii) exposure of persons, including employees and agents., to Hazardous Materials (as defined above) or other products, raw materials, chemicals or other substances; (iii) protection of the public health or welfare from the effects of by-products, wastes, emissions, discharges or releases of chemical substances from industrial or commercial activities; (iv) the manufacture, use or introduction into commerce of chemical substances, including without limitation, their manufacture, formulation, labeling, distribution, transportation, handling, storage and disposal; or (iv) the use, release or disposal of toxic or hazardous substances or Hazardous Materials or the; remediation of air, surface waters, groundwaters or soil, as now or may at any later time be in effect, including but not limited to the Toxic Substances Control Act (15 U.S.C. 2601, et seq.); the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. Section 9601, et seq.), the Hazardous Materials Transportation Authorization Act (49 U.S.C. Section 5101, et seq.), the Resource Conservation and Recovery Act (42 U.S.C. 6901, et seq.), the Federal Water Pollution Control Act (33 U.S.C. Section 1251), the Clean Air Act (42 U.S.C. Section 7401, et seq.), the California Underground Storage of Hazardous Substances Act (California Health and 875563-2 20 Safety Code Section 25280, et seq.), the California Hazardous Substances Account Act (California Health and Safety Code Section 25300, et :>eq.), the California Hazardous Waste Act (California Health and Safety Code Section 25100, et seq.), the California Safe Drinking Water and Toxic Enforcement Act (California Health and Safety Code Section 25249.5, et seq.), and the Porter-Cologne Water Quality Control Act (California Water Code Section 13000, et seq.), as they now exist or are hereafter amended, together with any regulations promulgated thereunder. 875563-2 21 C~J r. a a y ~ ~ o .~ ~ ~~oro 2 aR. . a 0 s °'~ O C .~ _~ Q C l1! C DDDQ -- ~'~` ~ ~ s o ~ b y ~ ~ # A ~ ~' N 2 ro ~ a 2 b n n ~ ]a _ O .e vE a ~w ~, ,~ i ?$ {- /~ . W N Neighbai~ood Map Exhibit B So~TH,'.SAN F'Q '. ~, _o f. ~, r." ~gLIFOR~~P AGENDA CITY COUNCIL CITY OF SOUTH SAN FRANCISCO REGULAR MEETING MUh1ICIPAL SERVICE BUILDING COMMUNITY ROOM WEDNESDAY, NOVEMBER 14, 2007 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 follow:>: 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 tlhe 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. RICHARD A. GARBARINO, SR Mayor PEDRO GONZALEZ Vice Mayor JOSEPH A. FERNEKES Councilman RICHARD BATTAGLIA City Treasurer BARRY M. NAGEL, City Manager MARK N. ADDIEGO Councilman KARYL MATSUMOTO Councilwoman IRENE SOTO Interim City Clerk STEVEN T. MATTAS City Attorney PLEASE SILENCE CELL PHONES AND PAGERS HEARING ASSISTANCE EQUIPMENT AVAILABLE FOR USE BY THE HEARING IMPAIRED AT CITY COUNCIL MEETINGS CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE INVOCATION PRESENTATIONS • City of South San Francisco Centennial Celebration -Judy Bush, Chuck Elliott, Mike Brosnan • Fire Prevention Poster Contest Award Presentation -Fire Captain Art Mosqueda AGENDA REVIEW PUBLIC COMMENTS ITEMS FROM COUNCIL • Announcements • Committee Reports • Consideration of Subcommittee's recommendation regarding the distribution of Measure A funds ($30M) for the South San Francisco and Redwood City Ferry Terminals • Consideration of Subcommittee's recommendation regarding City Council Discretionary Benefit Option CONSENT CALENDAR Motion to approve the minul:es of City Council Study Session of October 17, 2007 and Regular Meeting of October 24, 2007 2. Motion to confirm expense claims of November 14, 2007 Resolution amending the "Fingers" Ground Lease between REST Investment and the City of South San Francisco 4. Resolution awarding a consl:ruction contract to P C & N Construction, Inc. for the replacement of metal guardrail on Hickey Boulevard and South Spruce Avenue and amending the 2007/2008 CIP Budget - Project No. 51-13231-0804 5. Resolution authorizing the acceptance of $10,000 in grant funding from the Atkinson Foundation to support Community Learning Center programming and amending the Library Department's 2007/2008 operating budget REGULAR CITY COUNCIL MEETING November 14, 2007 AGENDA PAGE 2 PUBLIC HEARING 6. An urgency ordinance of the City of South San Francisco making findings and extending a moratorium on the approval of discretionary land use entitlements for specified parcels in the EI Camino Real and Sunshine Gardens sub-areas, pending completion of a specific plan ADMINISTRATIVE BUSINESS 7. Resolution approving the installation of stop signs on Arroyo Drive at the intersection of Cuesta Drive/Capay Circle, I)el Monte Avenue, Indio Drive, Lomitas Avenue/Capay Circle, and Erica Drive/Escanyo Drive 8. Resolution approving the installation of a stop sign on Junipero Serra Boulevard at King Drive 9. Resolution approving 2006-07 Year-End financial results and budget closing 10. Review of Miller Avenue Parking Structure Design 1 I . Consider report on City Cowlcil Expense Reimbursement Policy and expense reports and provide direction regarding amendments to the policy, the related forms and enforcement options 12. Resolution authorizing an extension of the current compensation plan agreement for the South San Francisco Executive Management Unit Employees COMMUNITY FORUM ADJOURNMENT REGULAR CITY COUNCIL MEETING November I4, 2007 AGENDA PAGE 3 - - ..e _ .`_ __ __ _ _ ___ . BO.~FD vl= DIF~CTOR: ,`:reside~~c J ariene Haugi~YJol~nso+.~ Tice President Captain Plancyl~layner October 31, 2007 Barry Nagel City of South San Francisco 400 Grand Avenue PO Box 711 South San Francisco, CA 94083 Hon. Alberi Eoro ~~r, ~_,m,e~ ~-n~~ Regarding: South San Francisco Ferry Service I-ion.,'-~.nthony;.lniintoli,lr. Dear Barry: Hon. Bede.ly Johnsen Dr. RoccoLMancin2pi I am writing to confirm our recent discussions regarding the funding and delivery of the South San Francisco ferry service. Hon.ua~nn Newscn°~ "'" ~aP''°r` We are currently preparing t~o bid or award three construction contracts for the facilities. ,,,,a.ii,a'v.seccnitano The first would be for the construction of 2 vessels. The second would be for the ~.ni~,onyVditiiinotor, construction of the pier and other landside improvements associated with the terminal. The last would be for the construction of the float, which is the part of the terminal that Cnie`~re%utive Oiiice; ,,~,~~,Castleberr„ floats on the water and is the facility to which the vessels tie after docking. The construction elements, costs., and funding sources are summarized in Attachment 1. We have secured most of the project funding but are awaiting confirmation on the Measure A San Mateo County Sales Tax funds. Our earlier project budget assumed that $20 million would be available from the Measure A funds. We now believe that $15 million will be the maximum amount of sales tax funds allocated for the South San Francisco ferry service. If the City can secure $15 million from the Measure A funds, we intend to award the construction contract for the 2 vessels in December of this year. We would also intend to award a construction contract for the pier early in the Spring 2008. With the $5 million shortfall, we would delay the award of a construction contract for the float until adequate funding was available. Potential funding sources for this shortfall include Federal Ferryboat Discretionary Funds or State Proposition 1 B funds. The final decision on allocations from either of these fund sources would require the concurrence of the new Water Emergency Transportation Authority Board of Directors, which will likely hold its first meeting in early 2008. Given the uncertainty in funding, the start of the new service will be delayed beyond December 2008. However, we believe this approach is the most prudent to deliver the project as soon as possible and to protect from escalation costs associated with a delay. Please let me know if you have any questions about this information. Sincerely, Steve Castleberry ATTACHMENT 1 SSF Construction Costs Cost Item Estimate Environmental and Design $ 3,400,000 Vessels $ 17,000,000 Terminal Waterside $ 18,000,000 Landside $ 1,400,000 Construction Mgmt/Permitting $ 1,000,000 Environmental Mitigation $ 275,000 Miscellaneous/Contingency $ 1,642,000 Site Improvements $ 3,520,000 Total Cost $ 46,237,000 SSF Revenues Source Estimate RM2 General $ 3,400,000 RM2 -SSF Specific $ 12,000,000 Federal Earmarks -SSF Vessels $ 2,516,250 Federal Earmarks -SSF Terminal $ 8,320,750 San Mateo Measure A/SSF $ 15,000,000 Total Available $ 41,237,000 Unsecured $ 5,000,000 DATE: November 14, 2007 T®: Honorable Mayor and City Council FROldI: Marty Van Duyn, Assist<~nt City Manager SUBJECT: RESOLUTION AMENL>ING THE "FINGERS'' GROUND LEASE BETWEEN THE CITY OF SOUTH SAN FRANCISCO AND REST INVESTMENTS, INC. RECOMMENDATION It is recommended that the City Council adopt a resolution directing the City ldianager to execute the First Amendment to the "Fingers" Ground Lease between the City and REST Investments, Inc. BACKGROUND The City owns property identified as AI?N 015-180-020, which includes the area customarily identified as the "Fingers" portion (more particularly described as Exhibit A) In 2001, REST Investments, Inc. ("REST") constructed a 1,100 car parking structure and a ground level parking lot through a lease agreement with the City for the "Finger" piers portion of City property. Based on the success of the existing parking structure, REST expressed an interest in developing a second multi-level commercial parking facility. As a result, in 2006, the City entered into a second lease agreement with REST for two acres of land on the adjacent Tillo property to facilitate development of a second multi-level parking structure. Although most of the new parking structure will sit on the Tillo portion of the property, a small portion of the structure will sit on the "Fingers" property. Therefore, REST has asked the City to modify the "Fingers" lease term so it runs concurrently with the Tillo term. If passed, the proposed First Amendment shall: Extend the initial term of the "Fingers" lease from 30 to 39 years so that the initial term on both leases ends in 2037. • Combine the "Fingers" two 15-year lease extension options into a single 30-year option (the "Initial Term Extension."). The T:illo lease differs from the "Fingers" lease in that the initial term extension in the Tillo lease is contingent upon commencement of construction of the proposed parking structure. • Add a second 30-year lease extension option ("Additional Extension") following the initial term extension, subject to REST's construction of the parking structure by 2037. The City Council should also note that this First Amendment would eliminate the City's ability to terminate the "Fingers" lease until 2067 (after the Initial Term Extension period). Under the current "Fingers" lease, the City retains a right to terminate the Lease. REST has requested the Staff Report Subject: Amendment to "Fingers" Lease removal of the City's right to terminate t:he "Fingers" lease on the basis that it needs a guaranteed time frame in order for a bank to finance the construction of the parking structure. As previously reported to the City Council, REST plans to construct the commercial parking facility in two phases: In the first phase., REST will construct an at grade parking facility with parking capacity for 161 cars; In the second phase, REST will construct amulti-story commercial parking facility with capacity for 1,400 t:o 1,450 cars. Currently, REST does not pay rent for the "Fingers" property because the City granted it an 11- year rent forbearance to facilitate constn~ction of the first parking structure. Beginning in June 2009, REST will pay the City $4,200 in monthly rent. Additionally, the City collects an 8% gross receipts commercial parking tax from this facility. Because tax receipts are proprietary information they cannot be publicly disclosed, however, revenues in 2005-06 and 2006-07 have met projected expectations. REST also I>rovides public parking, walkways, benches and access on property it owns to the San Francisco Bay and the San Francisco Bay Trail in cooperation with the San Francisco Bay Conservation and Development Commission (BCDC). REST estimates that in taxes and fees th.e City will collect between $28,000 and $95,000 in parking tax annually during phase one of the project and approximately $361,000 the first year the parking structure begins operating. [n addition, the Redevelopment Agency will also collect approximately $200,000 in property taxes annually. These projections are comparable to the revenue generated by the existing facility. C®NCLUSI®l~ It is recommended that the City Counci]'~ review the terms of the amendment and adopt a resolution directing the City Manager to execute the First Amendment to the "Fingers" Ground Lease with REST Investments, Inc. Marty Van Duyn Barry M. Nagel Assistant City Manager ~ ' ~, City Manager BMIvT:MVD:AFS Attachment: Resolution Exhibit A Parcel Map Exhibit B First Amendment to "Fingers" Ground Lease RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AMENDING THE FINGERS GROUND LEASE BETWEEN THE CITY OF SOUTH SAN FRANCISCO AIVD REST INVESTMENTS, INC. WHEREAS, the City is responsible for building and maintaining infrastructure that is essential to building and preserving, the economic and social well-being of its residents and businesses of the City; and WHEREAS, in 2001 REST Investments, Inc. ("REST") successfully constructed a 1,100 car parking structure on the "Fingers" property (more particularly described in Exhibit A adjacent to the Tillo site, and a surface parking lot, through a lease agreement with the City and to the City's satisfaction, and WHEREAS, based on its success, the City approved the subsequent lease with REST for the Tillo property for purposes of developing a second multi-level commercial parking facility for airport patrons; and WHEREAS, the construction of the commercial parking facility is to occur in two phases: (1) REST will construct an at grade parking facility with parking capacity for 161 cars; (2) REST will construct amulti-story commercial parking facility for 1,400 to 1,450 cars; and WHEREAS, the City will collect parking tax, property tax, and permit fee revenue from the new facility; and WHEREAS, while most of the new parking structure would sit on the Tillo portion of the property, a portion of the structure is set to sit on the "Fingers" property; and WHEREAS, REST has requE;sted that the City modify the "Fingers" lease term so it runs concurrently with the Tillo lease teY•m and remove the City's ability to terminate the "Fingers" lease until 2067. Resolution -First Amendment to Fingers Lease NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco does hereby: 1. Approve the "First Amendment to the Fingers Ground Lease" by and between the City of South San Francisco and REST Investments, Inc., as set forth in Exhibit B, attached hereto; and 2. Authorize the City Manager to sign and execute, on behalf of the City, the First Amendment to the Fingers Ground Lease, attached hereto as Exhibit B. ~ * * ~ 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 _, 2007 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk Resolution -First Amendment to Fingers Lease 0 E l 1 ~ . ~1 1 i r ~~ i t i P ~~ .~ ...-- gT~~3 REST PARICENG P,4GILITY 'e~ras~r q,.•~ EXHIBIT B FIRST AMENDME]T AMENDING THE GROUND LEASE BETWEEN THE CITY OF SOUTH SAN FRANCISCO AND REST INVESTMENTS DATED JUNE 12, 1998 THIS AMENDMENT TO THE GROUND LEASE AGREEMENT is made at South San Francisco, California, as of , 2007, by and between the CITY OF SOUTH SAN FRANCISCO, a municipal corporation ("City" or "Landlord"} and REST INVESTMENTS ("Tenant"), who agree as follows: RECITALS: A. On June 12, 1998, City a.nd Tenant entered into that certain Ground Lease for the Fingers property (the "1998 Lease") pursuant to the terms of which City leased to Tenant certain real property situated in the City of South San Francisco, County of San Mateo, State of California (the "Premises"), as more particularly described therein. B. On October 16, 2006, City and Tenant entered into a separate Ground Lease for the Tillo property (the "2006 Lease") pursuant to the terms of which City leased to Tenant certain real property situated in the City of South San Francisco, County of San Mateo, State of California (the "Tillo Property"). C. Landlord and Tenant now desire to amend the 1998 Lease to align with and reflect the term of the 2006 Lease. NOW, THEREFORE, for and in consideration of the promises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree as follows: 1. All terms which are defined in the 1998 Lease shall have the same meaning when used in this Amendment, unless specifically provided herein to the contrary. 2. This Amendment modifies the Term in Section 2.1 of the 1998 Lease. The Initial Term shall be thirty-nine (39) full calendar years, commencing June 12, 1998 ("Lease Commencement Date"), and ending on June 11, 2037 unless extended or sooner terminated as provided for in the 1998 Lease. All other provisions of Section 2.1 of the 1998 Lease remain in full force and effect. 3. Section 2.2 of the 1998 Lease; is hereby deleted and replaced in its entirety with the following: 2.2 Initial Term Extension. Conditioned upon Tenant's compliance with all terms and obligations set forth in this Lease and the 2006 Lease the Option Period shall be one (1) additional term of thirty (30) years, the Initial Term Extension, subject to all the provisions of the 1998 Lease. 4. Section 2.3 of the 1998 Lease, titled "Notice of Additional Rental Periods" shall be moved and relabeled Section 2.4. 5. Section 2.3 of the 1998 Lease i.s replaced in its entirety with the following: 2.3 Additional Extension. Conditioned upon (1) Tenant's compliance with all terms and obligations sett forth in the 1998 Lease; and (2) completion of construction of a multi-level parking structure on the Land, as it is defined in the 2006 Lease, Tenant may e.~tend the Initial Term Extension of the Lease, as granted in Section 2.2, for one (1) additional period of thirty (30) years.. 6. The 1998 Lease, as amended hereby, is ratified and confirmed by all the parties as being in full force and effect. To the extent of any conflict between the terms and provisions of the Lease and this Amendment, the terms and provisions of this Amendment shall govern and control. Landlord and Tenant hereby acknowledge, confirm and agree that, as of tlhe date of this Amendment, to such parties' respective knowledge, no known disputes exist between Landlord and Tenant, neither Landlord nor Tenant is in default under the terms of the Lease and the Lease is in full force and effect. This Amendment is binding on the parties and their successors and assigns. IN WITNESS WHEREC-F, this Amendment is being made and entered into effective as of the -day of _ , 2007. "LANDLORD" CITY OF SOUTH SAN FRANCISCO, a municipal corporation By: Name: Its: Barry M. Nagel City Manager "TENANT" REST INVESTMENTS By: Name: Its: ~~°~ ~~~~~~-:"~~ AGENDA ITEM # 4 0 ,~ ~, H ~ \J O ' Staff Report i~A ;'E: November 14, 2007 tai: the ttonorablc ;vtayor «nd :'Ity ~~ouncll i~~'~l~i'l: ~i Grry ~^.~lll [c:. i11i:'. C:~U: cif h'aJfli ~V~TVlIt~ ~ z-:.: T n ~~ _.;I;~Jv~_ ~~~ xt ~,tii ' ~'t E~-~IJ r.t~ ~ ~if~~ ~ (_.t_t1~~ ji{v~I ~ _%~`a i~i.~,:~~'<,tll, 1 ii! i -, N 1V CO!vS ir~i~l_ ~ 'i_')N. ~~`~~. I.OK € Ht~ R1:PLA~:~,~~;I~,`:T i tr ~~.L l'%> t_'.JUAI~~ ~^iiL ONHICK.~' POUI,Lvz~;KD:~NDSOUTiSPRUCEA~/Eiv'.)L ~`~vI_`~AMI_?ivTDTN:~ fHF_, 2007i2t~08 Clr~ i'~~~~~a~~1=.T-Pi10JECf ~~O,~I-1~2sI-0~'~~~ ;i2~;C01`.~~I~l`d~A ~ I('~i`d: '.:s : ecomrrended that the C;ty Council adopt a resolution awarding t're eos?struction contract t;; ? C & N Constructi%~j, I.-^. of Byron, Califo-r.Fia, in lire am^~~~i of $55,760 for the reply==E'emint of metal bear: girardr°ai'~l on ;iiCl:ey Bnnle:'ard and South 5,7-r~?e:. Avenue and amenc!ing the 2007/2008 CIP budget in the amount of $37,000. BACK_GROUND!DISCUSSIOI ;~: This project ~.~ill remove the old single lheam a„ardrail and install new dolibie beam guardrail along ti^~e south side of 1-lickey Boulevard frolr approximately 200 feet ~x~est of Hilton Avenue to 320 feet east of Hilton Avenue toward Camaritas Avenue. This project was planned to replace only the remainder of single beam guardrail on Hickey Blvd., however, during construction of the Linear Park on South Spruce Ave., staff discovered the existing guardrail posts (which were to be replaced in 2010) were rotted and could no longer withstand impact by a vehicle. Further inspection found that the remaining section across the BART right-of--way in front of Orowheat needed to be replaced. Staff closed Francisco Terrace Park in the interim as a safety precaution. By replacing the single beam guardrail with double beam guardrail it will conform to Caltrans standard. City staff will mark the areas where the contractor wi~.ll install new guard railing. A Request for Proposals (RFP) was prepared for this project, advertised and sent to seven builders' exchanges. Upon knowledge of the South Spruce guardrail condition, staff issued an addendum to the bid adding to the scope of work. The City received five proposals from the contractors. The proposals are as follows: CONTRACTOR BASE BID ADDENDUM TOTAL BID P C & N Construction, Inc. $35,880.00 $19,880.00 Byron, CA $55,760.00 Staff Deport Subject: Keplacement of Metal Guardrail on Hickey Boulevard and South Spititce Ave. Project No. 51-13231-0804 Page 2 CONTRACTOR BASE BID ADDETIDUM TOTAL BID M. ;;umgarner, inc. $36,400.00 532,480.00 5 ~Q,RB~•G'0 Livermore, CA r `~-i_r`; r_ c;rporation, Inc ~d.ct 2.00.0 $1'~ ~r,0 10 5 62,40().£sl, . ~ ~.. ~,;,- 1 ;ra R~ Cost v<~r; 008.00 ~2Q,999.20 5 ; 3,GC7,2G c,_ ~ . , ~74 400:00 ~~Ifi;bGG:i)tJ 'C11 :,ii~;:i,+ South San F; ancisco, CA F,rlgineeri~g Estimate g•~0.000.00 Staff has reviewed the ualifications and references of P C ~, N Constnlction, Inc. and found them~to be satisfactory. Staff recommends shat the contract be awarded to P C ~ N Construction, Inc. in the amount not to exceed $5,760. Replacement of the guardrail is expected to start by December 14, ?.007, and will be completed by the middle of January 2008. FUi~lDiivG: This project is included ir. the City of South San Francisco's 2007-2008 Capiiai Ii~~provernent Program (CIP/51-13231-0804) in the amount of $25,000. Additional funding will be supplied by the transfer of $37,000 from the greenhouse demolition Project No. 51-13231-0527. CONCLUSION: The replacement of existing single beam guardrail will improve the aesthetics of Hickey Boulevard by having all the guardrail of identical style plus the entire guardrail will conform to Caltrans' standards. Replacement of the guardrail on South Spruce will correct the existing safety hazard, allow Francisco Terrace Park to reopen, and conform to Caltrans' standards. ~ ~. ~~ Approved: "' ~ ~ .~- B• Terry Wh'te Barry .Nagel Director o ublic Works City Manager Attachments: Resolution rth/tw/db: sataffreports/twhite/guardrailhickey RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AWARDING A CONSTRUCTION CONTRACT TO P C & N CONSTRICTION FOR THE REPLACEME?~:T OF METAL GUAiKDP.AII, ON HICKE`>' BOL~LE YARD A?~!D SOUTH SPRUCi AVENUE f3ND AMENi> THE 2007/2008 Ci rBUDGET- PR01E'~"f i~~0.51 "13231-0804 \1 i1 _E~T' A C --= fF .. ~-. ~:rn RiPn t r`;r I ~~ ~ ~ Q ,; vv t t %~nv, ~la_~.. zC~".. :,--_.., Cis that the ~~:} E.~C)LlIIr?, af~(Vr;t i2sUlI171Or2 al"Jur~In~ {~ 't ii~'I-OI:, Cil;dOrm~, In ihC', amOl)nt Ci wtiti %f?tl ;Oils}!'iCt'Oi"t C,~.t._:Ctt01' ~K t~v ~~c)nsiiliCtlC?? II:,,. ~ , fnr the replaceiIlent v`i ii~tai guar~!rall OI2 .-IiCK?V BOUiC`..','-'~ ~'rd JOUth v~)tLiCP AVenL:e and;riiei'!:; the 2~?07!2008 CIP Bud:,=t ---'i:= ~zl~or~.nt ;~f $37;00~~; _~' WHEREAS, the project will involve removal of the old single beam guardrail and installation of new do~i~,c vea,:~ guardrail along Le ...~t.~n side of ~~iU,:cy Boulevard ; ar.~ ~VTriERF,AS, ~T%hile in the process of corl.str,zction of the Linear Park project on South Spl~zce Avenue, staff discovered that the existi~ig guardrail posts were : otted and could r~o longer withstand al~z impact by a vehicle and filrther found t hat the remaining section across the B~~RT right-of way in front of Orowheat needed to be ~~eplaced; and ~~'HEREAS, replacement of tlhe single beam guardrail with double beam guardrail will conform ~vitll Caitrans' standards; and WHEREAS, funding is included in the 2007/2008 CIP Budget (CiP/51-13231-0804} in the amount of $25,000. Additional funding will be supplied by the transfer of $37,000 from the greenhouse demolition Project No. 51-13231-0527. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council hereby award a contract to P C & N Constriction, Inc of Byron, California, in the amount of $55,760 for replacement of the guardrail on Hickey Boulevard and South Spruce Avenue and amend the 2007/2008 CIP Budget in the amount of $37,000. 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 cf South San >~rancisco at a _ __ meeting held on the day of y~~~,~. z_~. *~n~:;~~ .;L~_... f F `~ ~ A?N r~;,sSEN ~ . 2007 by the following vote TTE~ ; : I*:terim City Cleric DATE: November 14, 2007 TO: Honorable Mayor and City Council FROM Valerie Sommer, Library Director SUBJECT: RESOLUTION AUTHORIZING THE ACCEPTANCE OF $10,000 IN GRANT FUNDING 'TO SUPPORT THE COMMUNITY LEARNING CENTER AND AMENDING THE LIBRARY DEPARTMENT'S 2007/2008 OPERATING BUDGET RECOMMENDATION It is recommended that the City Council adopt a resolution authorizing the acceptance of grant funding in the amount of $10,000 to support Community Learning Center programming and amend the Library Department's operating budget for fiscal year 2007/2008. BACKGROUND The Community Learning Center received $10,000 from the Atkinson Foundation to purchase specialized reading software for 3"' to `i`'' grade students in the after school homework program. This year, the Homework Club is initiating a comprehensive program focused on vocabulary, language, and reading skills to help children become amore proficient in this area. This grant will support the purchase of the Destination Reading software program. This software covers a broad range of reading and vocabulary skills, uses real-life context, and is interesting and fun for children. Destination Reading will be used to give Homework Club students essential tools in reading and writing. FUNDING: The funds will be used to amend this y.°ar's operating budget of the Library Department. Funds not expended at the end of fiscal year 2007/2008 will be carried over into fiscal year 2008/2009. Receipt of these funds does not commit the City to ongoing support after the close of the funding cycle. CONCLUSION: Receipt of these funds will enable children attending the Community Learning Center's Homework Club to increase their reading skills by using specialized reading software. It is recommended that the City Council accept $10,000 in grant funding to support Community Learning Center programming and amend the Library Department's fiscal year 2007/2008 operating budget. By~~ 0~`~~ Valerie Sommer Library Director Approve City Manager d: .. `~ Barry M. Nagel RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AUTHORIZING THE ACCEPTANCE OF $10,000 IN GRANT FUNDING FROM THE ATKINSON FOUNDATION TO SUPPORT COMMUNITY LEARNING CENTER PROGRAMMING AND AMENDING THE LIBRARY DEPARTMENT'S 2007/2008 OPERATING BUDGET WHEREAS, staff recommends the acceptance of $10,000 in grant funds from the Atkinson Foundation to support Community Learning Center programming focusing on improved literacy skills for children in grades third through fifth; and WHEREAS, the funds will be used to amend this year's operating budget of the Library Department. NOW, THEREFORE, BE IT' RESOLVED by the City Council of the City of South San Francisco that the City Council hereby accepts $10,000 in grant funds from the Atkinson Foundation to support Community Learning Center programming and amends the 2007-2008 Operating Budget to reflect an increase of $10,000 to the Library Department's budget. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a regular meeting held on the , 2007 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk 2007-I1-14 CLC Atkinson Reso.doc DATE: November 14, 2007 TO: The Honorable Mayor and City Council FROM: Marty Van Duyn, Assistant City Manager SUBJECT: AN URGENCY ORDINANCE OF THE CITY OF SOUTH SAN FRANCISCO MAKING FINDINGS AND EXTENDING A MORATORIUM ON THE APPROVAL OF' DISCRETIONARY LAND USE ENTITLEMENTS FOR SPECIFIED PARCELS IN THE EL CAMINO REAL AND SUNSHINE GARDENS SUB-AREAS, PENDING COMPLETION OF A SPECIFIC PLAN RECOMMENDATION: It is recommended that the City Council waive reading, introduce and adopt an urgency ordinance making findings and extending a moratorium on the approval of discretionary land use entitlements for specified parcels in the El Camino Real and Sunshine Gardens sub-areas, pending completion of a specific plan. BACKGROUND/DISCUSSION At its October 10, 2007 meeting, the City Council adopted an interim urgency ordinance establishing a moratorium for specified parcels that thE; City intends to purchase from the San Francisco Public Utilities Commission (SFPUC). That ordinance and the Moratorium it established are set to expire 45 days after adoption, unless extended by the City Council. Staff has prepared an urgency ordinance to extend the Moratorium, which is intended to facilitate development and implementation of a specific plan for the Moratorium Area parcels, located northwest of Chestnut Avenue, between El Camino Real and Mission Road. If adopted, this urgency ordinance will extend the temporary moratorium on approvals of discretionary land use entitlements within the defined "Moratorium Area," pending completion of the specific plan, for a period of 10 months and 15 days from the scheduled expiration of the original ordinance. In the time since the original ordinance was adopted the City has continued to develop its planning strategies for the Moratorium Area. In preparing the request for proposals (RFP) for development of a specific plan for the area, staff has spent the past weeks identifying potential consultants to assist with development of the specific plan, and refining the anticipated scope of the specific plan study. If not already issued by the date of this meeting, staff expects to issue the final RFP shortly. 1018982.1 Staff Report Subject: Urgency Ordinance Establishing a Moratorium November 14, 2007 Page 2 While staff has made progress in the past weeks towards implementation of a specific plan, the development of such comprehensive land use strategy takes much longer than a few weeks. Therefore, staff requires additional time to effectively develop and implement its land use strategies for the Moratorium Area, necessitating an extension of the Moratorium. URGENCY ORDINANCE: As the City Council is aware, staff has been negotiating the purchase of eight parcels, currently owned by the SFPUC, for approximately five years. Pursuant to these negotiations, $21 million dollars had been committed to the acquisition of the parcels, and the City has now entered into a purchase agreement with the SFPUC. The sale of the parcels is expected to close in the near future. Once the parcels have been acquired, staff intends to combine the lots and develop a comprehensive land use plan for the property. Pending completion of the specific plan, it is important that activities and land uses that would frustrate the City's ability to implement specific plan strategies and policies, not be initiated within the area to be addressed by the specific plan. Initiation of such uses would impede the City's efforts to establish comprehensive and cohesive planning strategies for the property, and would prevent the City from being able to effectively address economic blight in the area. Accordingly, approval of entitlements for such uses presents a current and immediate threat to the public health, safety, and welfare. Therefore, staff recommends extension of'the moratorium. As proposed in the attached urgency ordinance, this moratorium would continue to temporarily prohibit discretionary land use approvals, including approvals for uses that would require use permits, variances, subdivisions, planned unit developments, and zoning amendments. Specifically, those uses identified in Municipal Code section 20.24.025 through 20.24.070 for the Planned Commercial district would be prohibited. Additionally, those uses described in 20.27.030 and identified as requiring a use permit for the Transit Village Residential Medium Density district, would also be prohibited. Existing uses and those uses that maybe approved without discretionary review would be allowed to continue in the area during the Moratorium. Prohibited uses may be initiated outside of the Moratorium Area, including in other areas that are zoned Planned Commercial and Transit Village Residential Medium Density. Staff believes that adequate sites are available within the City to accommodate all such uses. The rationale for the distinction is that uses that do not require discretionary review are less likely to conflict with the planning goals and policies that will be established in the forthcoming specific plan. As the City is close to closing sale on the SFPUC property, and adopting a specific plan for the area, it is reasonable to temporarily prohibit those uses which may defeat the objectives of the specific plan. FUNDING No funding is involved at this time. Staff Report Subject: Urgency Ordinance Establishing a Moratorium November 14, 2007 Page 3 CONCLUSION Pursuant to Government Code Section 65858, the City may extend the 45-day moratorium, prohibiting any uses that maybe in conflict with a contemplated zoning proposal that the legislative body or the planning division is considering or studying or intends to study within a reasonable time. After this extension, the Moratorium maybe extended one more time for an additional one-year period, provided that a current and immediate threat to the :public safety, health and welfare still exists. The proposed urgency ordinance may only be adopted by a four-fifths vote of the City Council. By. ---7 Marty Van Duyn, ~stant City Manager Barry M. Nagel, City M ager Enclosure: Urgency Ordinance Extending the Moratorium ORDINANCE NO. AN URGENCY ORDINANCE OF THE CITY OF SOUTH SAN FRANCISCO MAKING FINDINGS AND EXTENDING A MORATORIUM ON THE APPROVAL OF DISCRETIONARY LAND USE ENTITLEMENTS FOR SPECIFIED PARCELS IN THE EL CAMINO REAL AND SUNSHINE GARDENS SUB-AREAS, PENDING COMPLETION OF A SPECIFIC PLAN WHEREAS, since at least 1994, the City of South San Francisco has been working to develop comprehensive and cohesive planning strategies and policies for the general area northwest of Chestnut Avenue, between El Camino Real and Mission Road, as diagramed on the attached Exhibit A ("Moratorium Area"), located in the City's El Camino Real and Sunshine Gardens sub-areas; and, WHEREAS, the City is now preparing to adopt a specific plan to establish strategies and policies for the Moratorium Area, and has already spent considerable staff time and financial resources towards developing this plan; and, WHEREAS, since 2002, staff has been negotiating with the San Francisco Public Utilities Commission for the purchase of eight parcels located within the Moratorium Area, as identified in Exhibit A; and, WHEREAS, pursuant to these negotiations, the City has executed a purchase agreement, committed $21 million to the acquisition of the parcels, and expects to close on the sale in the near future; and, WHEREAS, the City has spent $50,000 to retain the services of Rick Williams, of the firm Van Meter Williams Pollack, to assist with developing a planning strategy for the Moratorium Area; and, WHEREAS, staff is preparing and expects to issue in the coming days, a request for proposals to develop a specific plan applicable to the Moratorium Area; and, WHEREAS, a specific plan applicable to the Moratorium Area would systematically implement the City's General Plan policies, define appropriate land uses, and establish development standards in the Moratorium Area; and, WHEREAS, the majority of the Moratorium Area is located within the City's El Camino Corridor Redevelopment. Area; and, WHEREAS, portions of the Moratorium Area have been characterized by economic blight, due to the fact that construction of the near-by BART station substantially limited economic development of much of the property; and WHEREAS, now that the BART construction has finished, the City has an opportunity to address the property's economic blight through the adoption of a specific plan applicable to the Moratorium Area; and, WHEREAS, the majority of the Moratorium Area is zoned Planned Commercial (P-C), and a small area in the northern portion is zoned Transit Village Residential, Medium Density (TV-RM); and, WHEREAS, Municipal Code chapters 20.24 and 20.27 establish standards and permissible uses within the Planned Commercial and Transit Village zoning districts, respectively; and, WHEREAS, these Municipal Code chapters also identify uses that require discretionary review and approval; and, WHEREAS, permissible land uses in the Moratorium Area that do not require discretionary review or approval under the City's Municipal Code, have, by nature of the fact that they require no discretionary review, been determined to be appropriate uses for their respective zoning districts, and sufficiently compatible with surrounding land uses; and, WHEREAS, land uses that require discretionary review and approval in the Moratorium Area, including without limitation conditional use permits, variances, subdivisions, planned unit developments, and zoning amendments ("Moratorium Prohibited Uses," or "Prohibited 1:Jses"), have, by nature of the fact that they require such discretionary review, been determined to potentially create conflicts with surrounding land uses, or to only be compatible with surrounding land uses to the extent that conditions can be imposed on the proposed use; and, WHEREAS, the City Council finds that because land uses requiring discretionary review and approval present a greater potential for conflict with existing and surrounding uses for the Moratorium Area, temporarily prohibiting these uses in the Moratorium Area, pending completion of a specific plan for the area, will help prevent future land use conflicts in the Moratorium Area;, and, WHEREAS, the City Council finds that the prevention of land use conflicts in the Moratorium Area is an issue concerning the public health, safety, and welfare; and, WHEREAS, the City Council finds that initiation of such Moratorium Prohibited Uses in the Moratorium Area, wauld frustrate the City's efforts to establish and implement a comprehensive and cohesive planning strategy for the Moratorium Area; and, WHEREAS, the City Council finds that a temporary stabilization of activities and land uses within the Moratorium Area is critical to the City's ability to successfully implement its immediate and long term planning and land use goals for the Moratorium Area; and, WHEREAS, on October 10, 2007, by afour-fifths vote, the City Council adopted Ordinance No. 1390-2007, an urgency ordinance imposing the Moratorium herein described for the Moratorium Area, which ordinance is set to expire forty-five (45) days from the date of adoption; and, WHEREAS, in the time since Ordinance No. 1390-2007 was adopted, the City has continued to develop its planning strategies for the Moratorium Area, identified potential consultants to assist with development of a specific plan, refined the anticipated scope of the specific plan study, and finalized its request for proposals, which the City expects to issue shortly; and, WHEREAS, additional time is required to sufficiently study land use needs for the Moratorium Area, develop planning strategies, and implement a specific plan for the Moratorium Area; and, WHEREAS, expiration of the Moratorium at this time would allow for land use approvals that would frustrate the City's ability to establish comprehensive and cohesive planning strategies for the property, and prevent the City from effectively addressing economic blight in the Moratorium Area; and, WHEREAS, expiration of'the Moratorium at this time, therefore, presents a current and immediate threat to the public health, safety, and welfare; and WHEREAS, if extended, this Moratorium would not prohibit continuation of any existing use in the Moratorium Area, or prohibit any use that is permitted in the Moratorium Area without the need for discretionary review, as detailed in Municipal Code sections 20.24.020 and 20.27.030; and, WHEREAS, if extended, this Moratorium would prohibit discretionary land use approvals for the Moratorium Area, including approvals for those land uses requiring use permits, as detailed in Municipal Code sections 20.24.025 through 20.24.070, and section 20.27.030; and, WHEREAS, the City Council finds that the initiation of the Moratorium Prohibited Uses in the Moratorium Area would pose a current and immediate threat to the public health, safety, and welfare, as the Prohibited Uses would conflict with potential planning goals and policies to be established in the forthcoming specific plan, and could result in continued economic blight in the Moratorium Area; and, WHEREAS, areas outside of the Moratorium Area are zoned Planned Commercial and Transit Village Residential, Medium Density; and, WHEREAS, all of the Prohibited Uses are permitted or conditionally permitted in other areas of the City, including but not limited to areas that are zoned Planned Commercial and Transit Village Residential, Medium Density; and, WHEREAS, the City Council therefore finds that adequate opportunities for development of the Moratorium Prohibited Uses exist throughout the City, beyond the Moratorium Area boundaries; and, WHEREAS, this Moratorium is necessary to avoid the current and immediate threat to the public health, safety, and welfare, and there is no feasible or less burdensome alternative that would satisfactorily avoid the threat created by the Moratorium Prohibited Uses within in the Moratorium Area. NOW THEREFORE, the City Council of the City of South San Francisco does hereby ORDAIN as follows, adopted as an interim ordinance, under the provisions of California Government Code section 65858: (1) Incorporation of Recitals. The City Council finds that all Recitals are true and correct and are incorporated herein by reference. (2) Moratorium Extended. The Moratorium established in Ordinance 1390- 2007 is hereby extended for a period often (10) months and fifteen (15) days from the date of its previously scheduled expiration. From and after the date of this ordinance, no discretionary land use approvals, including but not limited to conditional use permits, variances, subdivisions, planned unit developments, and zoning amendments, shall be approved for any property within the Moratorium Area. Under the Moratorium, existing land uses, and those land uses permitted in the Moratorium Area without any requirement for discretionary review and approval under the Zoning Ordinance, Subdivision Ordinance, or any other section of the Municipal Code, may operate in the Moratorium Area. (3) Authority; Urgency Statement. This ordinance extends the effective period of Ordinance 1390-2007, and is adopted as an urgency measure pursuant to Government Code section 65858 and is for the immediate and long-term preservation of the public peace, health, and welfare. The facts constituting the urgency are these: The City is currently, and has been for many years, in the process of developing a specific plan for certain parcels in the El Camino Real and Sunshine Gardens sub-areas. Land uses in the Moratorium Area that .require discretionary review, are likely to conflict with the City's long term planning goals and policies for the area, as established in the forthcoming specific plan. Initiation of these types of uses in the Moratorium Area would frustrate the City's efforts to establish comprehensive and cohesive planning strategies for the property. It would also prevent the City from effectively addressing economic blight in the area, in furtherance of the City's Redevelopment Plan. It would be destructive to the goals of the proposed specific plan if, during the period that the specific plan is being studied and is the subject of public hearings, parties seeking to evade the operation of the specific plan were permitted to operate in a manner that might defeat in whole or in part the ultimate objective of the specific plan. Accordingly, approval of entitlements for such uses presents a current and immediate threat to the public health, safety, and welfare. (4) Compliance with California Environmental Quality Act (CEQA). This ordinance is not a "project" within the meaning of section 15378 of the State CEQA Guidelines, because it has no potential for resulting in a direct or reasonably foreseeable indirect physical change in the environment; it temporarily prevents certain physical changes in the environment pending completion of the City's planning for the Moratorium Area. Furthermore, this urgency ordinance is categorically exempt from CEQA under Guidelines section 15308 because it is a regulatory action taken by the City, in accordance with Government Code section 65858, to assure maintenance and protection of the environment pending completion of the City's planning for the Moratorium Area. (5) Severability. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance, including the application of such part or provision to other persons or circumstances, shall not be affected thereby, and shall continue in full force and effect. To this end, provisions of this ordinance are severable. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable. (6) Effective Date. This ordinance shall become effective immediately upon adoption, if adopted by at least four-fifths vote of the City Council, and shall extend the effective period of Ordinance 1390-2007 for a period often months (10) and fifteen (15) days beyond the date that Ordinance 1390-2007 would have otherwise expired, unless further extended by the City Council as provided for in Government Code section 65858. Adopted as an Ordinance of the City of South San Francisco at a regular meeting of the City Council held the day of , 2007, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk As Mayor of the City of South San Francisco, I do hereby approve the foregoing Ordinance this day of , 2007. Richard Garbarino, Mayor 1026326.1 DATE: November 14, 2007 TO: Honorable Mayor and City Council FROM: Marty Van Duyn, Assistant City Manager SUBJECT: RESOLUTION AUTHORIZING THE INSTALLATION OF STOP SIGNS ON ARROYO DRIVE AT THE INTERSECTIONS OF CUESTA DRNE/CAPAY CIRCLE, DEL MONTE AVENUE, INDIO DRIVE, LOMITAS AVENUE/CAPAY CIlZCLE, AND ERICA DRIVE/ESCANYO DRIVE RECOMMENDATION It is recommended that the City Council adopt a resolution authorizing the installation of stop signs on Arroyo Drive at the intersections of Cuesta Drive/Capay Circle, Del Monte Avenue, Indio Drive, Lomitas Avenue/Capay Circle, and Erica Drive/Escanyo Drive. BACKGROUND/DIS CUS S ION The Traffic Advisory Committee (TAC) received a request for afoot-way stop installation at the intersection of Arroyo Drive and Capay Circle/Cuesta Drive. TAC reviewed this intersection and concluded that it did not meet the Caltrans warrants for installation. However, the City Council adopted a policy at its November 29, 2006 meeting, directing staff to consider. the collection of a resident petition for stop signs to be installed at intersections_ontesidential collector and local roadways. The policy indicates that the maj ority of residents living within a 300-foot radius of the intersection must agree to the stop sign installation by signing the petition. This policy was added because the warrants set by the Department of Transportation may, at times, be too stringent for residential collectors and local roadways. Staff reviewed the petition presented by a resident to determine if it meets the new stop sign guidelines. Of the required 48 signatures, the resident was successful in collecting 30 signatures. Therefore, the petition meets the guidelines for installation of a multi-way stop sign. While evaluating Arroyo Drive, Engineering staff noted several atypical stop controlled intersections, with stop signs on only one direction of Arroyo Drive. The locations include: Del Monte Avenue (westbound direction only), Indio (eastbound direction only), Capay Circle/Lomitas Avenue (eastbound direction only), and Erica DrivelEscanyo Drive (eastbound direction only). TAC reviewed these locations and recommend installation ofall-way stop signs in order to clarifyright-of--way assignment and make the intersections a usual configuration. Staff Report Subject: RESOLUTION AUTHORIZING THE INSTALLATION OF STOP SIGNS ON ARROYO DRIVE AT 'THE INTERSECTIONS OF CUESTA DRIVE/CAPAY CIRCLE, DEL MONTE AVENUE, INDIO DRIVE, LOMITAS AVENUE/CAPAY CIRCLE, AND ERICA DRIVE/ESCANYO DRIVE Page 2 of 2 Please refer to Exhibits 1 through 5, as they display the existing conditions and the proposed recommendations for the installation of stop signs. FUNDING No additional funding would be necessary to install the stop signs. The stop signs and poles are in stock with the Street Maintenance Division and the time used to install the signs and pavement markings would be charged to general street maintenance. CONCLUSION Adoption of this resolution will authorize staff to install stop signs on Arroyo Drive at the intersections of Cuesta Drive/Capay Circle, Del Monte Avenue, Indio Drive, Lomitas Avenue/Capay Circle, and Erica Drive/Escanyo Drive. Marty Van Duyn Assistant City Manager Approved. + ~ ~~7 M. Nagel City Manager RR/tas/rc Attachment: Resolution Location Maps -Exhibits 1 through 6 RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AUTHORIZING THE INSTALLATION OF STOP SIGNS ON ARROYO DRIVE AT THE INTERSECTIONS OF CUESTA DRIVE/CAPAY CIRCLE, DEL MONTE AVENUE, INDIO DRIVE, LOMITAS AVENUE/CAPAY CIRCLE, AND ERICA DRIVE/ESCANYO DRIVE WHEREAS, the Traffic Advisory Committee (TAC) received a request to install a 4-way stop sign at the intersection of Arroyo Drive and Capay Circle/Cuesta Drive; and WHEREAS, the City Council adopted a policy at its November 29, 2006 meeting allowing staff to consider petitions submitted by affected property owners to install stop signs at intersections on residential collector and local roadways; and WHEREAS, the City Engineer received a petition signed by a majority of affected residents and recommends installation of the requested stop sign; and WHEREAS, the poles and stop signs necessary for the installation are already in stock with the Street Maintenance Division, so that no additional budget allocations are required. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco hereby authorizes the installation of stop signs on Arroyo Drive at the intersections of Cuesta Drive/Capay Circle, Del Monte Avenue, Indio Drive, Lomitas Avenue/Capay Circle, and Erica Drive/Escanyo Drive. 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 _, 2007 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk DATE: November 14, 2007 TO: Honorable Mayor and City Council FROM: Marty Van Duyn, Assistant City Manager SUBJECT: RESOLUTION AUTHORIZING THE INSTALLATION OF A STOP SIGN ON JUNIPERO SERRA BOULEVARD AT KING DRIVE RECOMMENDATION It is recommended that the City Council adopt a resolution authorizing the installation of a step sign on Junipero Serra Boulevard at King Drive. BACKGROUND The Traffic Advisory Committee (TAC) received a request from the Police Department for a stop sign on northbound Junipero Serra Boulevard at King Drive. Currently, there is a yield sign for the northbound right turn lane from Junipero Serra Boulevard onto eastbound King Drive. TAC reviewed this location at its September 26t"meeting and concluded that a stop sign should replace the existing yield sign. The current configuration makes it very difficult for the resident located at 405 King Drive to exit the driveway due to its close proximity to Junipero Serra Boulevard. Drivers approaching the driveway typically look for eastbound traffic on King Drive, neglecting vehicles exiting the driveway. A stop sign would require drivers to stop as opposed to yielding for eastbound traffic and allow drivers to view a vehicle exiting the nearby driveway. Please refer to Exhibit 1 as it displays the existing condition and the proposed recommendation for the installation of a stop sign. FUNDING No additional funding would be necessary to install the stop sign at this location. The stop sign is in stock with the Street Maintenance Division and the time used to install the sign would be charged to general street maintenance. Staff Report Subject: RESOLUTION AUTHORIZING THE INSTALLATION OF A STOP SIGI`; ON JUNIPERO SERRA BOULEVARD AT KING DRIVE Page 2 of 2 CONCLUSION Adoption of this resolution will authorize staff to install a stop sign on Junipero Serra Boulevard at King Drive. By: __---- Marty Van Duyn Assistant City Manager Approved: ~ c=~ arry .Nagel City Manager RR/tas/rc Attachment: Resolution Location Map -Exhibit 1 RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRAlvTCISCO, STATE OF CALIFORNIA ADOPT A RESOLUTION AUTHORIZING THE INSTALLATION OF A STOP SIGN ON JUNIPERO SERRA BOULEVARD AT KING DRIVE WHEREAS, the Traffic Advisory Committee (TAC) received a request from the South San Francisco Police Department to install a stop sign on northbound Junipero Serra Boulevard at King Drive; and WHEREAS, the Traffic Advisory Committee (TAC) reviewed the request at its September 26th,2007 meeting and concluded that a stop sign should replace the existing yield sign; and WHEREAS, the can ent configuration makes it very difficult for the resident located at 405 King Drive to exit the driveway due to its close proximity to Junipero Sena Boulevard; and WHEREAS, no additional funding is required to complete the installation, as the required stop sign is in stock with the Street Maintenance Division and time used 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 authorizes the installation of stop signs on Junipero Serra Boulevard at King Drive. 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 , 2007 by the following vote: AYES NOES: ABSTAIN: ABSENT: ATTEST: City Clerk 0 ~. y J O cALIFOR~l~ Staff Report AGENDA ITEM # 9 DATE: November 14, 2007 TO: Honorable Mayor and City Council FROM: Jim Steele, Director of Finance SUBJECT: 2006-07 YEAR-END FINANCIAL RESULTS AND BUDGET CLOSING RECOMMENDATION: It is recommended that the City Council approve the attached budget amendment resolution authorizing various budget actions and allowing staff to close the books on fiscal year 2006-07. BACKGROUND/DISCUSSIQN: While the 2006-07 fiscal year results have not been audited, the numbers are virtually final. General Fund revenues have come in $3.1 million higher than the amended budget (a difference of 5%), with higher than expected revenues in property taxes, continued strength in building and fire permits, and the effect of higher interest rates and higher reserves on portfolio earnings. General Fund operating budget expenditures, prior to capital improvements or debt service, came in $214,000 below budget, a savings of 0.4%. Revenues: Several General Fund revenue sources had significant differences in actuals through year end compared to budget. Those revenues are as follows: Property Taxes came in $309,000 higher than budgeted, primarily due to higher supplemental payments, particularly in the last month of the year. Supplemental payments are those not in the property tax roll at the beginning of the year, so they cannot be forecasted accurately. Since they vary from year to year, staff estimates them conservatively. Building and Fire Permits came in $1.1 million over budget. These revenues are conservatively predicted because the revenues depend on the timing of construction projects in the City. Construction projects can be delayed by developers depending on changing economic projections and large projects can cause aone-time spike in revenues. June was a very strong month, with over $1.0 million in revenue. Staff Report Subject: 2006-07 Year End Financial Results and Budget Closing Page 2 of 3 Charles for Service came in $496,000 over budget, with ambulance revenues, Basic Life Support and Advanced Life Support, Police Services Reimbursements, and Child Care Revenues all coming in over budget. Interest earnings were $662,000 over the budget, due to higher reserves and higher overall portfolio earnings rates than a year ago. Expenditures: General Fund Expenditures came in $214,000, or .4°Io, below budget before accounting for carry forward purchase orders (purchase orders open, but still unspent at year end). Continued rising gasoline prices had a negative impact on departments, eating into normal year end savings, particularly in Public Works, Police, and Fire. Even though the General Fund realized savings overall, three departments were over budget: • The Attorney's Office was over budget by $182,000. The City's practice has been to budget for the ongoing, contractual services for the Attorney's Office at the beginning of the year, and not to budget for potential litigation expenses. This overage, reflecting litigation and pending litigation, is consistent with prior years' results. • Fire was over budget by $91,000 overall, reflecting overtime spent on several out of the area incidents, all of which was reimbursed by the Office of Emergency Services (OES). • Police was over budget by $116,000 overall, reflecting overtime usage for investigations related to six major incidents that occurred in 2006-07, and the need to maintain minimum staffing. Budgeet Amendment: Two budget amendment items are needed in order to close the books on 2006-07. They are described below. General Fund The three General Fund departments mentioned above (Attorney, Fire and Police) went over budget, requiring $389,000 in increased budget appropriations. Retiree Health Obligation As was reported to Council in July 2006, the estimated liability for the City's retiree health benefit is at least $30 million. For that reason, Council authorized setting aside $1.0 million in the 2007-08 budget to begin paying down that liability. Because of the substantial size of General Fund Reserves, staff recommends that another $3.0 million be set aside as part of the attached budget amendment in the Reserve for Post-Employment (Retiree) Health Benefits. Because a large portion of the increase in revenues was due to development that will not continue indefinitely (building permit revenue), there is a rationale for setting aside those dollars. Taking this action does not restrict Council in the future from undesignating these funds; Staff Report Subject: 2006-07 Year End Financial Results and Budget Closing Page 3 of 3 however, it would be a prudent action to take. Designating $3.0 million for Retiree Health would still leave the General Fund Undesignated Reserve with a balance of $5.6 million at year end, while fully funding our Reserves for Emergencies and Reserves for Capital Projects according to Council policy. The FinanceBudget Subcommittee may want to revisit the City's reserve policies with the Finance Director and the City Manager in the next few months, with a goal of updating the policy to take into account the Retiree Health obligations as well as options for dealing with the rise in revenues that will not be maintained indefinitely. FISCAL IMPACT: The year-end balance for the General Fund Undesignated Reserve is estimated at $5.4 million, with total General Fund Discretionary Reserves estimated at $20 million. CONCLUSION: Taking the actions in the attached budget amendment resolution will allow staff to close the books on fiscal year 2006-07. ,~-~---° Prepared by: `' 'x'~°.~ ~-.~-~ Jim``Steele Finance Director r. Approved by: o ~' -----~ ,Barry M. Nagel ~ City Manager Attachments: Resolution Exhibit A-1 Total General Fund Operating & Capital Budget, Exhibit A-2 Projected Changes to General Fund Reserves JS/BN:ed RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLI 1'1'ION APPROVING VARIOUS 13UDGLT ACTIONS THAT ALLOW STAF)? TO CLOSE THF. BOOKS FOR FISCAL YF~AR 2006-07 WHEREAS, staff recommends authorizing various budget changes as described below. NOW, THEREFORE, BE TT RESOLVED that the City Council of the City of South San Francisco hereby approves various budget actions shown that allows staff to close books for the 2006-07 fiscal year. Taking these actions will result in a General Fund Undesignated Reserve of approximately $5.4 million as of June 30, 2007. Those budget actions are: • Add $182,000 to the. City Attorney's Office to cover litigation and pending litigation costs. • $91,000 to the Fire Department Budget to cover overtime. • Add $116,000 to the Police Department Budget to cover overtime. • Confirm the Reserves shown on Exhibit A-2, including the Reserve for Post Employment (Retiree Health) Benefits at $3.0 million. • Authorize the Finance Director to make final adjustments to revenues and expenditures and Reserves as a result of any audit comments that occur during the final external auditor review, in conformance with generally accepted accounting standards. * * * * * :~ 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 , 2007 by the following vote: AYES NOES ABSTAIN: ABSENT: ATTEST: City Clerk V ~ d o' o o o 0 0 0 0 0 0 0 l 0' o o o' o ~ u o~ o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0' 0 0 0 0 0 0 ~ 0 0 o 0 o C ~ ~ V O In O r V V 00 i [O r ~ CO C' O r ~ ~ i r ~ CO r CO 0 V M V I I !6 {~9 ~ > (p G N O O r 0 ~ 0 0 00 00 N c0 CO ~t O CO O CO O N ~ i ~I I O c0 0 0 ' 0 O O ~~ > o R <L ~ C I t I i i ~ I ~ v d d ('7 N ~Y [t OJ ~ N (~ 00 W ~ !~ O ~ O ld1 (~ I~ O C7 n M I~ O I V ~ ~ O c0 n [t N a) M O r CD r f~ O) r (O N m 00 N O N N ~ r 0 N C7 ap I~ V ~ to O !O N T O CA r t~ n h ~ m N; ~ ~ O) O CO ~ ~ W l0 • ~ ~ CO C'7 O CO CO N C'7 f~ ~ C'7 N (O CO 00 ~- CO to O O ~ ,, ~ W N N M i ~ ~ O I (O ~ ~ r V O ~ CO ~ Cp CD N O S r N ~ r f~ M tL w i M N I ~ ~ I C i ~ ' _ ~p 'C f~ O N . 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BACKGROUND/DISCUSSION On October 10, 2007 Watry Design, Inc. presented the Downtown Subcommittee with three alternative architectural styles over two different massing diagrams for the Miller Avenue Parking Structure to be located on existing surface lots on the 300 Block of Miller Avenue. Of these six alternatives, the Subcommittee expressed a general preference for the "Classic", 4'/2 story alternative, but requested that the designs be forwarded to the full Council for a study session. On October 17, 2007 the City Council conducted a study session to review the designs as presented to the Downtown Subcommittee. The general consensus was that a 4'/z story structure would be preferable, but that the alternatives should be forwarded to the merchants for their comment. At the close of the meeting, Council directed staff to present the designs to the Downtown merchants and solicit their input. A Downtown Subcommittee meeting was held on October 29 and the design team conducted the presentation for the merchants in attendance. In addition to a letter of invitation sent to attendees of the Downtown Subcommittee's previous business meetings, staff hand-delivered a notice of the meeting to approximately 100 Downtown businesses. The notice was also posted at the Planning Division and Chamber of Commerce counters. At the conclusion of the presentation, attendees at the meeting were informally polled for their preferences and it was found that the "Traditional" alternative was strongly favored. The larger, 51/4 story version was preferred over the 4%2 story version, but by a narrower margin. On October 30, the design team met with Councilmember Matsumoto, who provided general design comments and expressed preference for the 4'/2 story, "Traditional" alternative among the designs presented. The design team has requested direction from the City for both the proposed size of the structure and general architectural treatment to be applied to the exterior of the building. Because these elements impact the final structural design, they must be made before proceeding further with the plans. Should the Council express their preferences for the general design of the structure, staff will return to Council to Staff Report Subject: (Miller Avenue Parking Structure Designs) November 14, 2007 Page 2 of 2 present detailed plans reflecting Council's preferences, including material types, proposed colors and a plant list. A public hearing for final action on the project and adoption of an environmental document is tentatively scheduled for December 12, 2007. In light of the input received to date, staff recommends the council affirm the 4'/z level Traditional alternative as the preferred design. The 4'/2 story version is preferred by staff, the Downtown Subcommittee and the full Council because it is more sensitive to the architectural context of Downtown, which is comprised primarily of two-story buildings. The 4'/2 story version is also approximately $1.6 million less to construct than the 5'/4 alternative. FUNDING A concept financing plan was approved for the project at the Redevelopment Agency Board's meeting of February 14, 2007. Preliminary estimates of construction costs for the 5'/4 story alternative are approximately $10,721,300 compared to $9,095,400 for the 4'/2 story alternative. The construction costs are comparable for all architectural treatments. Staff will present more detailed cost data for Council's consideration with the final design plans for the December 12, 2007 meeting. CONCLUSION Staff recommends that the City Council direct staff to proceed with the design of a 4 '/2 level parking structure based on the "Traditional" style as presented. By: Marty Van Duyn Assistant City Manager BN:MVD:cs:bla By: Barry Nagel City Manager Attachment: "Traditional" Option B (4'/z story) Elevation ~°~sx"S-~'~~ 0 ~, y o c'~LIFOR~IA taff e ort p AGENDA ITEM # 11 DATE: November 14, 2007 TO: Honorable Mayor and City Council FROM: Steven T. Mattas, City Attorney SUBJECT: CONSIDER REPORT ON CITY COUNCIL EXPENSE REIMBURSEMENT POLICY AND EXPENSE REPORTS AND PROVIDE DIRECTION REGARDING AMENDMENTS TO THE POLICY, THE RELATED FORMS AND ENFORCEMENT OPTIONS. RECOMMENDATION: It is recommended that the City Council review this report and provide direction regarding any amendments the City Council may desire to the adopted expense reimbursement policy. Staff also recommends that the Finance Director or his designee review future expense reports to confirm compliance with adopted policy and to advise councilmembers if a particular expense is not reimbursable or if fiurther clarifying information is necessary. As a related recommendation, the Council should consider directing revisions to the current expense form to more closely track the adopted expense reimbursement policy. Staff further recommends that for those few items listed below that exceed the reimbursement limitations, the councilmember either reimburse the City the differential amount or provide additional information substantiating the expense as in compliance with the adopted policy. BACKGROUND/DISCUS SION: On June 14, 2006, the City Council adopted a resolution approving the current City Council Expense Reimbursement Policy ("Policy"), found in the City Council Handbook. The Policy authorizes reimbursement of certain expenses incurred in connection with the following activities: 1. Communicating with representatives of the local, state, or national government on adopted policy positions; 2. Attending educational seminars designed to improve officials' skill and information levels; 3. Participating in regional, state and national organizations whose activities affect the City's interests; 4. Recognizing service to the City (e.g., thanking a longtime employee with a retirement gift or celebration of nominal value or cost); 5. Attending City events; 6. Implementing aCity-approved strategy for attracting or retaining businesses to the City; and 7. Meetings for activities listed above for which a meeting stipend is expressly authorized under the Policy. Staff Report Subject: CONSIDER REPORT ON CITY COUNCIL EXPENSE REIMBURSEMENT POLICY AND EXPENSE REPORTS AND PROVIDE DIRECTION REGARDING AMENDMENTS TO THE POLICY, THE RELATED FORMS AND ENFORCEMENT OPTIONS. Page 2 of 7 On October 10, 2007, the City Council requested that staff review expense reports submitted by the Council and determine whether all expenses were consistent with the Policy. Specifically, staff was asked to compile expenditures for city/regional and non-profit events including a spouse or significant other accompanying a Councilmember. Staff from the City Manager's Office, City Attorney's Office and Finance Department worked together to review expense reports submitted in 2007 for compliance with the Policy. Our analysis centered on expense spreadsheets generated by the City Manager's Office for each Councilmember, but in some cases we also looked at the receipts and expense forms submitted. The spreadsheets summarize and reflect 210 reimbursement requests Councilmembers submitted in 2007, through mid-October. The spreadsheets are included as an attachment to this staff report. Almost all of the expenses analyzed comply with the Policy and constitute reimbursable expenses. Nonetheless, based on the information available to us, it appears that a small portion of those reimbursed expenses may have exceeded the guidelines for meal reimbursement or may not have been authorized by the Policyl. Below we outline the expenses that may not have been authorized or may have exceeded set limits, or that we thought would benefit from explanation. A. Categories of Potentially Noncompliant Expenses The Policy outlines specific categories of approved expenses for reimbursement (listed above), and provides that: "[a]ll other actual and necessary expenses incurred in the performance of official duties that are not described in this Policy shall not be reimbursed unless approved before the expense is incurred."2 1. Meals This section analyzes what was reported to the City as each councilmember's individual reimbursable expenses for meals. The Policy provides that meal expenses may not exceed the following limits: • Breakfast $12 • Lunch $18 • Dinner $40 In addition, the Policy provides that meal expenses incurred by a Councihnember's spouse, significant other, or immediate family are reimbursable only if the meal is: (1) part of an event or function in San Mateo County; and (2) provided at a function where the Councilmember is performing official duties. Our office also found that in instances where Councilmembers attended non-profit or service organization dinners, most Councilmembers sought reimbursement for the meals of their spouses/significant others. ' In some instances in which a questionable expense was not covered by the Policy, the Councihnember has already reimbursed the City for such expenses. z All quoted text in this staff report refers to the City Council Expense Reimbursement Policy adopted by the City Council on June 14, 2006. Staff Report Subject: CONSIDER REPORT ON CITY COUNCIL EXPENSE REIMBURSEMENT POLICY AND EXPENSE REPORTS AND PROVIDE DIl2ECTION REGARDING AMENDMENTS TO THE POLICY, THE RELATED FORMS AND ENFORCEMENT OPTIONS. Page 3 of 7 The Policy also has special meal limits at conferences: "If a meal is provided by a conference and included in the payment of registration fees, Councilmembers may not be reimbursed for meals purchased in lieu of, or in addition to, the provided meal." Finally, the Policy allows for use of City funds to recognize service to the City and implement a City-approved strategy for attracting or retaining businesses to the City. Such expenditures may include paying for the meals of individuals who are not City employees or members of the Council. Based on those provisions of the Policy, nearly all meal-related expenses were reimbursable. A few are questionable either because they exceed the guidelines or because they are unauthorized for reimbursement under the Policy. Mayor Garbarino • League of California Cities (LOCC) Executive Forum in July: ^ $32.89 lunch, $14.89 over the lunch limit. ^ $57.07 dinner, $17.07 over the dinner limit. ^ $32.29 lunch. The $4.00 alcoholic beverage purchased as part of this meal must be repaid to the City under the Policy, which does not permit reimbursement for alcoholic beverages. This lunch also exceeded the lunch limit by $14.29 A review of the LOCG Executive Forum Program shows that registration costs covered one breal~ast, one lunch, and a reception dinner. If any of the meals were purchased in "lieu of, or in addition to, the provided meal" included in the registration cost, then the Policy requires repayment of the full amount of each of those meals to the City. If any portion of the meals was purchased for a spouse or significant other, it would not be reimbursable under the Policy because this event took place in Monterey, outside of San Mateo County. • Boston BIO Conference in May: ^ $31.20 dinner on May 31d. This is before the Conference started and thus does not qualify under the Policy as a reimbursable expense, unless related to other City business. ^ $13.53 breal~ast on May 4~'. See above. ^ $51.73 dinner on May 4~'. As discussed below regarding lodging, the conference started on May 5~' at 8:00 a.m. Arrival at such a conference the night before, and the expense of a hotel and a dinner, would be a reasonable expense for the City to reimburse. This amount exceeds the limit by $11.73 . ^ $13.84 breal~ast on May S~'. This exceeds the breakfast limit by $1.84. ^ $22.76 breakfast on May 8a'. This exceeds the breakfast limit by $10.76. ^ $20.00 lunch on May 8~', $2.00 over the lunch limit. Staff Report Subject: CONSIDER REPORT ON CITY COUNCIL EXPENSE REIMBURSEMENT POLICY AND EXPENSE REPORTS AND PROVIDE DIRECTION REGARDING AMENDMENTS TO THE POLICY, THE RELATED FORMS AND ENFORCEMENT OPTIONS. Page 4 of 7 Vice Mayor Gonzalez • $48.751unch with Comcast staff at the Basque Center in July. Comcast is a franchisee of the City and manages the broadcast facilities for City Council meetings. We have been advised that the lunch meeting related to that service. This meal is valid to the extent that the Vice Mayor's portion of the meal did not cost more than $18, as it is part of aCity-approved strategy for attracting or retaining business or recognizing service to the City. If the Vice Mayor's portion exceeded $18, then difference should be reimbursed to the City. Councilmember Matsumoto • Boston BIO Conference in May ^ $22.14 for unknown meal. If this was for lunch, it exceeded the limit by $4.14; if for breakfast, it exceeded the limit by $10.14. ^ $17.85 for unknown meal. If it was for breakfast, it exceeded the limit by $5.85. Councilmember Fernekes • Boston BIO Conference in May • $18.45 for unknown meal. If this was for lunch,. it exceeded the limit by $0.45; if for breakfast, it exceeded the limit by $6.45. 2. Lodging The Policy does authorize reimbursement for lodging at official City business where the location is greater than 50 miles from the Councilmember'styork or home. If lodging is connected with a conference, the Policy dictates that "lodging expenses must not exceed the group rate published by the conference sponsor..." Mayor Garbarino • Boston BIO Conference in May o Mayor Garbarino's Seaport Hotel bill is $1,603.56 (excluding meals and other expenses) for six nights. o This conference started on May 5~ at 8:00 a.m. Mayor Garbarino arrived early in the morning on May 3rd and was charged for that night so that he could check in upon arrival. Other Councihnembers arrived early on the morning of May Sd`. Mayor Garbarino obtained a lower airfare than the other Councilmembers by purchasing his ticket separately and arriving early. o The Seaport Hotel's conference room rate was $267.26 per night (including taxes}. The cost of the two additional nights totaled $534.52. Arrival at a conference on the East Coast the day before the start of a conference is reasonable, and therefore reimbursement for the cost of the room on the night of May 4d' would be reasonable. Since the expense for the night of May 3rd does not appear attributable to attendance at the conference, the difference is not reimbursable and must be repaid to the City, unless is related to other official City business. Staff Report Subject: CONSIDER REPORT ON CITY COUNCIL EXPENSE REIlVIBURSEMENT POLICY AND EXPENSE REPORTS AND PROVIDE DIRECTION REGARDING AMENDMENTS TO THE POLICY, THE RELATED FORMS AND ENFORCEMENT OPTIONS. Page 5 of 7 3. Mileage The Policy mandates that Councilmembers may only be reimbursed for expenses incurred in traveling by personal vehicle while on official business: "Councilmembers shall use City vehicles for travel in performance of official duties, when available. If a City vehicle is unavailable Councilmembers may be reimbursed for expenses incurred in traveling by personal vehicle on official business at the annual Internal Revenue Service Standard Mileage Rate." We understand that there is some inconsistency among Councilmembers in submitting mileage expense reimbursement reports on a monthly basis, which makes verifying expenses difficult. The City Council may want to consider requiring more regular expense reimbursement reports for mileage for this reason. A question has been raised whether mileage from home to the Municipal Services Building for Council meetings is reimbursable. Mileage for attendance for City business is reimbursable. Pursuant to the Policy, if any Councilmember is expending mileage from his or her work or home to the Council meeting, it may be reimbursed so long as the travel starts from the location (either work or home) closest to the destination point of official business. 4. Attendance at Non-Profit Organization Events Many of the expenses submitted for reimbursement were related to attendance at non-profit organization events. The Policy is somewhat ambiguous about whether those costs are reimbursable. The Policy authorizes expenditures for "participating in regional, state and national arganizations whose activities affect the City's interests." On the other hand, it does not allow any reimbursement for "political or charitable contributions or events." Historically, those two statements have been read together to mean that the Policy does not authorize reimbursement of purely political or charitable event expenses unless they are connected to regional, state and national organizations whose activities affect the City's interests. Further, it has been left to individual Councilmembers to determine whether anon-profit's activities affect the City's interests. If a Councihnember concludes that an organization's activities affect the City's interests, then the City will reimburse the Councihnember for attendance at an event sponsored by the organization. Relatedly, if the non-profit organization's event includes a meal as part of the ticket price, the entire cost of registration has been treated as reimbursable -- the meal is not subject to the Policy's meal guidelines. This has been construed to include full reimbursement of the meal of the Councilmember's spouse or significant other. If the City Council so wishes, this part of the Policy could be clarified with respect to what exactly constitutes "participation" in an organization, what types of organizational activities "affect the City's interests" enough to merit participation, and whether tickets or meals for spouses or significant others should be reimbursed by the City at such events. Staff Report Subject: CONSIDER REPORT ON CITY COUNCIL EXPENSE REIMBURSEMENT POLICY AND EXPENSE REPORTS AND PROVIDE DIRECTION REGARDING AMENDMENTS TO THE POLICY, THE RELATED FORMS AND ENFORCEMENT OPTIONS. Page 6 of 7 As the Council is aware, the Policy allows for reimbursement for the costs of a meal or registration of a spouse or significant other when traveling with a Councilmember on official City business only within San Mateo County. Councilmember Addiego • $60.00 dinner (with significant other) at the Sister Cities event at Caesar's Italian Restaurant in January. It appears from the expense reimbursement request submitted for this event that the City paid for two tickets at $30 each, one for Councilmember Addiego and one for his guest. Councilmember Addiego's ticket is reimbursable under the Policy, as explained above. The Councilmember should reimburse the City for the guest's ticket, however, because according to the event information, the dinner took place outside of San Mateo County (in San Francisco). 5. Expense Report Submissions The Policy requires all Councilmember expense reimbursement requests to be submitted on the Expense Reimbursement Form ("Form") found in Appendix 3 of the City Council Handbook. It further requires that the Form: (1) is submitted within 30 days of an expense being iYCUrred; and (2) is accompanied by receipts documenting each expense. Submission of the Form is crucial because: "Expense reports must document that the expense in question met the requirements of this policy. For example, if the meeting is with a legislator, the local agency official should explain whose meals were purchased, what issues were discussed and how those relate to the City's adopted legislative positions and priorities." VVe understand that the Form is not being used for all reimbursement requests. Credit card and restaurant receipts are being turned in but are not always accompanied by the Form, and submission of information regarding the basis for reimbursement requests is not consistent among Councilmembers. Additionally, requests are regularly submitted more than 30 days after mcurrmg an expense. Under the Policy, if documentation is not provided in a timely fashion, it "may result in the expense being borne by the Councilmember." Our office also recommends that the Form, as the Council may direct that it be revised, be used on a more consistent basis for purposes of compliance auditing and enforcement. Staff Report Subject: CONSIDER REPORT ON CITY COUNCIL EXPENSE REIMBURSEMENT POLICY AND EXPENSE REPORTS AND PROVIDE DIRECTION REGARDING AMENDMENTS TO THE POLICY, THE RELATED FORMS AND ENFORCEMENT OPTIONS. Page 7 of 7 B. Penalties for Noncompliance with the Policy. The Policy sets forth very specific penalties for violation: "Use of public resources or falsifying expense reports in violation of the Policy could result in any or all of the following: (1) loss of reimbursement privileges; (2) a demand for restitution to the City; (3) the City's reporting the expenses as income to the elected official to state and federal tax authorities; (4) civil penalties of up to $1,000 per day and three times the value of the resources used; and (5) prosecution for misuse of public resources." C. Enforcement Mechanisms. The City Council is ultimately responsible for enforcing this Policy and imposing penalties for violations. It is in the Council's discretion whether to strictly enforce the guidelines and how, including the right to select the type of penalty (out of the five options listed in Section B.) for any violation. To best avoid penalties, Councilmembers should repay all expenses reported for reimbursement that: (1) exceed the money amount limit or (2) were unauthorized. CONCLUSION It is recommended that the Ciry Council provide direction regarding any proposed amendments relating to: (1) language of the City Council Expense Reimbursement Policy; and/or (2) implementation and (3) enforcement of said Policy. Staff also recommends that the Finance Director or his designee confirm that required expense reports are submitted in compliance with the Policy. Staff further recommends that where any Councilmember has made unauthorized expense reimbursement requests or has exceeded expense limits, that such Councilmember either reimburse the City the differential amount or provide additional information substantiating the expense as in compliance with the adopted Policy. By: ~ Approve - a ` ~,~ Steven T. Mattas B agel City Attorney City Manager Attachments: City Council Expense Reimbursement Policy Expense Summary Spreadsheets 1028839_4.DOC