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Home My WebLink About2008-02-13 e-packetS~~TN SAN p9 o~ =` ~, 9~ F ~' n U O ;~~ ~9LIFOR~~Q' AGENDA REDEVELOPMENT AGENCY CITY OF SOUTH SAN FRANCISCO REGULAR MEETING MUNICII'AL SERVICE BUILDING COMMUNITY ROOM WEDNESDAY FEBRUARY 13, 2008 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 and/or action where appropriate or the matter may be placed on a future Agenda for more comprehensive action or a report. When your name is called, please come to the podium, state your name and address for the Minutes. COMMENTS ARE LIMITED TO THREE (3) MINUTES PER SPEAKER. Thank you for your cooperation. The Clerk will read successively the items of business appearing on the Agenda. As she completes reading an item, it will be ready for Board action. PEDRO GONZALEZ Chair KARYL MATSUMOTO Vice Chair RICHARD A. GARBARINO Boardmember RICHARD BATTAGLIA Investment Officer BARRY M. NAGEL Executive Director MARK N. ADDIEGO Boardmember KEVIN MULLIN Boardmember KRISTA MARTINELLI-CARSON Clerk STEVEN T. MATTAS Counsel PLEASE SILENCE CELL PHONES AND PAGERS HF,ARING 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 Motion to approve the minutes of January 9, 2008 and January 12, 2008. 2. Motion to confirm expense claims of February 13, 2008. 3. Motion to receive and accept: the Redevelopment Agency's Property Report, Blight Report, Annual Report of Financial Transactions, Housing Activities Report and Loan Report, as required by Health and Safety Code 33080.1. 4. Resolution authorizing the Executive Director to execute a Loan Agreement with Peninsula Habitat for Humanity for the project at 440 Commercial Avenue in South San Francisco and adopting findings in connection therewith. A Resolution amending Section 3.02 of the Redevelopment Agency By-Laws related to regular meeting times and changing the regular Redevelopment Agency meeting time from 7:00 p.m. to 6:30 p.m. CLOSED SESSION 6. Pursuant to Government Cocie section 54956.8 real property negotiations related to 415- 417 Grand Avenue property. Agency negotiator: Marty Van Duyn, Owner: Dalal Metwalli. ADJOURNMENT REGULAR REDEVELOPMENT AGENCY MEETING February 13, 2008 AGENDA PAGE 2 ~,~~~TH SA~,~~ o - -.~ _F ~' is n U -~^a*..` we-w.y~ O CgLIFORN~P MINUTE S DRAFT EZEDEVELOPMENT AGENCY RDA AGENDA ITE OF THE CITY OF SOUTH SAN FRANCISCO REGULAR MEETING WEDNESDAY, JANUARY 9, 2008 :MUNICIPAL SERVICE BUILDING COMMUNITY ROOM 33 ARROYO DRNE CALL TO ORDER: 7:01 p.m• (Cassette Tape No. 1). ROLL CALL: AGENDA REVIEW Present: Boardmembers Addiego, Garbarino and Mullin, Vice Chairwoman Matsumoto and Chairman Gonzalez. r Absent: None. Executive Director Nagel recommended that the Board consider noticed Agenda Item Number 5, Closed Session pertaining to real property negotiations related to terms of lease of real property located at 1 Chestnut Avenue, after the conclusion of business pertaining to the Consent Calendar. Recommendation accepted by the Board. PUBLIC COMMENTS None. CONSENT CALENDAR Motion to approve minutes of'December 12, 2007. Item pulled from Consent Calendar by Boardmember Addiego. 2. Motion to approve expense claims of January 9, 2008 in the amount of $2, 350,419.84. Item pulled from Consent Calendar by Boardmember Addiego. Resolution # 1-2008 authorizing execution of Subordination Agreement with Grand Oak Associates and State of California Multifamily Housing Program for the Grand Oak Housing Development. Motion-Boardmember Garba.rino/Second-Boardmember Addiego: to approve Consent Calendar Item No. 3. Unanimously approved by voice vote. #1 Item Number 1: Boardmember Addiego commented on the eloquence of the minutes of the last meeting. He pointed to a specific; section of the minutes and noted that the text was not verbatim, but rather represented a characterization of his comments. Motion- Boardmember Addiego/Second- Boardmember Garbarino: to approve the minutes of December 12, 2007. Unanimously approved by voice vote. Item Number 2: Boardmember Addiego requested that staff clarify the Dana Property Analysis Redevelopment Operating program item reflected in the January 9, 2008 Warrant Disbursement Report. Assistant Agency Director Van ]Duyn replied that it was related to appraisal work clone for 80 Chestnut Avenue. Motion- Boardmember Addiego/Second- Boardmember Garbarino: to approve the expense claims of January 9, 2008 in the amount of $2,350,419.84. Unanimously approved by voice vote. CLOSED SESSION 4. Pursuant to Government Code Section 54956.8, real property negotiations related to terms of lease of real property located at 1 Chestnut Avenue; Agency Negotiator: Assistant Director Marty Van Duyn; Ron Price Motors, Inc. Negotiator: Ron Price. Time entered into Closed Session: 7:05 p.m. Time reconvened into Open Session: 7:22 p.m., Boardmembers Addiego, Garbarino, Mullin, Vice Chairwoman Matsumoto and. Chairman Gonzalez present. Report out of Closed Session: Upon completion of the Closed Session, Chairman Gonzalez reported that the Board gave direction and no reportable action was taken. ADMINISTRATIVE BUSINESS A Resolution authorizing lease of real property located at 1 Chestnut Avenue. Assistant Agency Director Van Duyn advised that the Agency had previously acquired the property located at 1 Chestnut Avenue and the transaction was currently in escrow. He noted that leasing the property would permiit interim use of the site until the Board approved a plan for the property. He opined that the subject property may be combined with other land near the site including Agency and PUC owned properties as part of a Master Plan. Motion: Boardmember Garbarino/Second -Boardmember Mullin: to approve Resolution # 2- 2008 authorizing lease of real property located at 1 Chestnut Avenue. Unanimously approved by voice vote. REGULAR REDEVELOPMENT AGENCY' MEETING JANUARY 9, 2008 MINUTES PAGE 2 ADJOURNMENT Being no further business, Chairman Gonzalez adjourned the meeting at 7:26 p.m. Submitted y: Approved: yG,~../ to Martinel i- arson, Clerk `°- Pedro Gonzalez, Chairman Cit South S Francisco City of South San Francisco REGULAR REDEVELOPMENT AGENCY MEETING JANUARY 9, 2008 MINUTES PAGE 3 ~°`~~x' S~~~ a y H J O c'~LIFOR~1~ I certify that the demands set forth on this payment register are accurate and funds are available for payment.* DATED : ? ! ~'/U ~ C~~~~" FINANCE DIRECTOR *Note: Items below do not include payroll related payments Checks: Date Amount RDA AGENDA ITEM # 2 01/09/08 $ 52,898.27 01/16/08 48,368.84 01/23/08 71,079.56 01/30/08 5,873.23 02/06/08 135,752.97 Electronic Paym ents: Date Amount R'o Description 01/14/08 6,523,639.64 Llnion Bank 1 Chestnut Ave Purchase (Ron Price) G1/25/08 44,910.30 Bank of New York HUD Loan Payment 01/30/08 21,051,162.00 iJnion Bank PUC Purchase Ol/31/08 779,000.00 E'irst Amer. Trust 216 Baden Ave Purchase Total Payments $ 28,712,684.81 This is to certify that the above bills were confirmed at the regular meeting of the Redevelopment Agency of South San Francisco held February 13, 2008. 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BACKGROUND/DISCUSSION: California Health & Safety Code 33080.1 requires local agencies to produce and submit to its legislative body and the State Controller a series of annual reports related to the Redevelopment Agency's activities in the prior fiscal year. These reports have been submitted to the State as required; the Board also needs to receive and review them. This Stafi.'Report transmits the reports for fiscal year 2006-07. Several of these routine reports are primarily for demographic reporting to the State, are lengthy and contain very detailed numerical data. Consequently, it is not feasible to include them here as Attachments. They can be viewed on the City's website via the: Finance Department Homepage (www.ssf.net/depts/finance), or by contacting the Finance Department at 877-8513. A binder will also be available in the Council office. The reports submitted annually to the State Controller's Office are: Property Report Describes properties owned by the agency, their uses, and those acquired in the previous fiscal year. (Exhibit A) Blight Pro reg~ ss Report Describes the Agency's progress in eliminating blight over the past year, including goals and objectives set and achieved. (Exhibit B) Annual Report of Financial Transactions of Community Redevelopment A eg_ncies Presents detailed descriptions of the Agency's project areas and assessed valuations, including but not limited to, the Agency's long-term debt and statement of income and expenditures. (Not attached here, but available for viewing as described above) Staff Report Subject: Annual Redevelopment Reporting Requirements Page 2 Housing Activities Report Describes housing activities and funding sources. (Not attached here, but available for viewing as described above) Loan Report Identifies loans which equal or exceed $50,000 and that were found by the agency during the previous fiscal year to have either defaulted or not complied with the terms of the agreements approved by the agency. The Agency did not have any such loans in fiscal year 2006/07, so this statement, in lieu of a report, will suffice for the reporting requirement. CONCLUSION: Acceptance of these reports will facilitate the Agency's compliance with the State Health and Safety Code. ~ '" By: ~ _ ~'''~=v..~ - ~~~~,~~... .. Approve : ~ ` ~ . M y Van Duyn t Barry M. Na e Assistant City Managar~ Executive Dir for Attachments: Exhibit A Property Report Exhibit B Blight Progress Report Exhibit A City of South San Francisco FtDA Property List as of 6/30/07 Fiscal Year Original Ending of Cost Description Use Purchase Land $ 535,000 200 Linden Ave City Office Space (IT Dept.) 6/30/1997 Land $ 336,229 432 Baden/429 Third Ln Parking Lot 6/30/1997 Land $ 341,016 616 Linden Ave Parking Lot 6/30/1997 Land $ 317,006 700 Linden Open Space 6/30/1998 Land $ 111,219 468 Miller Parking Lot 6/30/1999 Land $ 1,579,729 472 Grand/306 Spruce County Medical Facility 6/30/1999 Land $ 507,269 905 Linden Open Space 6/30/2000 Land $ 942,083 212 Baden Giorgi Bldg Warehouse/storage 6/30/2001 Land $ 564,000 201 Grand Ave Parking Lot 6/30/2001 Land $ 804,086 339-341 Commercial Residential Housing 6/30/1999 Land $ 5,007,603 480 No Canal (Black Mtn Water) Central Fire Station 6/30/2004 Land $ 717,183 312 Miller Ave. Residential Housing 6/30/2004 Land $ 586,309 310 Miller Pave., SSF Residential Housing 6/30/2005 Land $ 862,000 714 Linden Ave. Residential Housing 6/30/2005 Land $ 683,080 380 Alta Vista, SSF Residential Housing 6/30/2005 Land $ 1,257,668 601 Gateway Blvd. Childcare Facility 6/30/2003 Land $ 859,717 339-341 Commercial Residential Housing 6/30/2006 Land $ 700,655 323 Miller Ave. Residential Housing 6/30/2007 Total Land $16,711,852 Exhibit B I3light Progress Report Redevelopment Agency of South San Francisco During fiscal year 2006-07 Redevelopment Agency efforts have been focused on the alleviation of blight through the following activities: Infrastructure improvements to major thoroughfares and residential streets to capitalize on the opportunities resulting from the BART station development and to open additional area to development and redevelopment. Business attraction activities to eliminate blighted conditions and provide additional employment opportunities for South San Francisco residents. Construction and rehabilitation of public facilities such as parks and recreational facilities. Redevelopment of existing vacant and underutilized land to eliminate blighted conditions and provide residents with additional housing, employment and recreational opportunities. Housing activities to provide new affordable housing opportunities for low and moderate income families and to improve the City's existing housing stock. Specific projects undertaken include but are not limited to the following: Completed construction of 43 new affordable rental units at Grand and Oak Avenues. The construction was completed in September 2007 with lease-up in October. Completed street improvements to the El Camino Corridor in the vicinity of the BART station. Continued construction of four home owner units by Habitat for Humanity. Continued funding renovations for Safe Harbor Homeless Shelte:• which was being renovated by San Mateo County. Acquisition of a duplex at 323 Miller Avenue for two units of affordable housing. Provision of 20 units of affordable for sale town homes at the City Lights project. Continuation of housiing acquisition loan program for low and moderate income, first-time home buyers. One (1) Redevelopment loan was issued for the City Lights project. Initiated Phase I of the Linear Park development in the El Camino Corridor Project Area. Sponsored the acquisition of a 15 unit apartment complex with Housing Investment Project (I~IIP), providing affordable units for low and very low income families. Provided $1.8 million loan to HIP for acquisition. ~zx S .~ Redevelopment Agency 0 o Staff Repoy~t c'~LIFOR~1~ RDA A GENDA ITEM # 4 DATE: February 13, 2008 TO: Redevelopment Agency Board FROM: Marty Van Duyn, Assistant Executive Director SUBJECT: LOAN AGREEMENT WITH HABITAT FOR HUMANITY FOR PROJECT AT 440 COMMERCIAL AVENUE RECOMMENDATION It is recommended that the Redevelopment Agency Board adopt a Resolution approving a forgivable construction loan of $33,7180 to Peninsula Habitat for Humanity for the project at 440 Commercial Avenue, and authorize the Executive Director to execute a Loan Agreement and a Resale Restriction ,and Right of First Refusal Agreement. BACKGROUND/DISCUSSION In December of 2001 the Redevelopment Agency acquired the property at 440 Commercial Avenue to develop affordable housing. In purchasing the site, the Agency's intent was to advance the production of new residential units affordable to low- and moderate-income working families and meet the Association of Bay Area Governments (ABAG) and the California State Department of Housing and Community Development (HCD) affordable housing allocation requirements. In 2005, the Agency entered into a Development and Disposition Agreement (DDA) to develop a for-sale housing project affordable to very low-income working families. The project consists of four affordable single family detached Homes on a 50 ft. by 140 ft. rectangular parcel. A11 four of the homes will be sold to families with annual incomes below 50% of median income and will be subject to 55-year affordability restrictions (see Exhibit 1). Each home is 1,356 sq. ft., with three bedrooms, two baths, and atwo-car tandem garage. When the Redevelopment Agency Board approved the DDA, it also agreed to provide a forgivable construction loan of $33,780 (see Exhibit 2). Since the project is nearing completion, Peninsula Habitat for Humanity has requested the funds which the Agency will provide on a reimbursement basis to pay for construction work not performed by volunteers. It should be noted that Peninsula Habitat for Humanity leveraged the Agency's land subsidy and construction loan with a $250,000 loan from the San. Mateo County HOME Consortium, state and federal grants totaling $68,000, private construction financing and the sweat equity of the future owners helping to construct their homes. At the start of construction phase, Peninsula Habitat for Humanity selected the four families that will purchase the homes. The families have been working for more than a year building their homes. A Staff Report Subject: Loan Agreement with Peninsula Habitat for Humanity Page 2 dedication celebration will be held on February 29, 2008, the same day the four families will purchase their homes and move in. Staff will provide the Agency Board more information on the event as it becomes available. FUNDING The Redevelopment Agency will provide the forgivable construction loan of $33,780 to Peninsula Habitat for Humanity using Redevelopment Agency Housing Set-Aside funds. CONCLUSION Staff recommends the Redevelopment Agency Board approve the Loan Agreement and Right of First Refusal Agreement with Peninsula Habitat for Humanity and authorize the Executive Director to execute the agreements. By: Marty Van Duyn Assistant Executive V M. Nag Executive Dig Attachments: Resolution Loan Agreement Exhibit 1: Resale Restriction and Right of First Refusal Agreement Exhibit 2: 2005 Resolution No. 15-2005 BNIN: iVIVD: AFS RESOLUTION NO REDEVELOPMENT A(JENCY, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AUTHORIZING EXECUTION OF A LOAN AGREEMENT WITH PENINSULA HABITAT FOR HUMANITY AND ADOPTING FINDINGS 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 Hf;alth and Safety Code Section 33000, et seq. (the "CRL"), and pursuant to the authority granted thereunder, has the responsibility to carry out the Redevelopment Plan ("Redevelopment Plan") for the Downtown/Central Redevelopment Project Area ("Project Area "); and WHEREAS, in 2005, the Agency authorized by resolution No. 15-2005 (i) execution of a Disposition and Df;velopment Agreement with Peninsula Habitat for Humanity, a California nonprofit public benefit corporation ("Developer"), pursuant to which Agency agreed to transfer that. certain real property located near the Project Area. at 440 Commercial Avenue in South S;an Francisco (the "Property") to Developer for the development on the Property of four (4) single family homes affordable to very low- income households (the "Project"); and (ii) provision of a loan to Developer in the principal amount of $33,780 (the "Loan") to defray the costs of constructing the Project; and WHEREAS, the Agency and Developer have since negotiated a Loan Agreement ("Loan Agreement") and a Promissory Note ("Note") substantially in the forms on file with the Agency Secretary; and WHEREAS, the Loan Agreement and the Note provide, among other things, that (i) disbursement of the proceeds of t11e Loan to Developer is conditioned upon the sale of the 4 single family homes comprising the Project to very low-income households and the recordation of a Resale Restriction Agreement and Option to Purchase ("Agency Resale Restriction Agreement") against each such home which (a) requires that each home remain affordable to very low-income households for a period of 55 years; and (b) grants the Agency an option to purchase each such home upon the occurrence of certain events; and (ii) that the Loan will be forgiven upon satisfaction of the foregoing conditions; anti WHEREAS, the Loan will bye funded with monies from the Agency's Low and Moderate Income Housing Fund I;"Housing Fund") to facilitate development and construction of affordable housing which will benefit the Project Area; and 1047008.1 WHEREAS, pursuant to Section 33334.2 of the CRL, the Agency may use Housing Fund monies outside of thE; Project Area provided that the Agency Board and the City Council find that the use will be of benefit to the Project Area; and WHEREAS, the City Council has adopted a resolution finding that use of Housing Fund monies to acquire the Property will be of benefit to the Project Area because the Project will provide affordable housing; and WHEREAS, the Developer vrill provide the purchasers of each home comprising the Project with a first mortgage loan; and WHEREAS, Developer has requested the Agency to subordinate the Agency Resale Restriction Agreement; and WHEREAS, Section 33334.1.4 of the CRL permits subordination of the Agency Resale Restriction Agreement provided that the Agency makes a finding that an economically feasible alternative method of assisting the Project on substantially comparable terms and conditions without subordination is not reasonably available. NOW, THEREFORE, BE IT RESOILVED by the Redevelopment Agency of the City of South San Francisco that it hereby: 1. Finds that provision of the Loan to Developer from the Housing Fund for the Project pursuant to the terms of the Loan Agreement will benefit the Project Area because the Project will provide affo~°dable housing to very low-income households. 2. Finds that an economically feasible alternative method of assisting the Project on substantially comparable terms and conditions without subordination is not reasonably available. 3. Approves the Loan Agreement, the Promissory Note, and the Agency Resale Restriction Agreement substantially i:n the forms on file with the Agency Secretary. 4. Authorizes the Executive Director of the Agency (or his designee) to execute the Loan Agreement and the Agency Resale Restriction Agreement substantially in the forms on file with the Agency Secretary; to make revisions to the Loan Agreement and Agency Resale Restriction Agreement, subject to the approval 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 intent of this Resolution. 1047008.1 I hereby certify that the foregoing Resolution was regularly introduced and adopted by the Redevelopment Agency of the City of South San Francisco at a meeting held on the 13th day of February, 2008 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: Agency Secretary 1047008.1 LOAN AGREEMENT This Loan Agreement (this "A.-greement") is entered into effective as of , 2008 ("Effective Date") by and between the Redevelopment Agency of the City of South San Francisco, a public body, corporate and politic (the "Agency") and Peninsula Habitat for. Humanity, a California nonprofit public benefit corporation (the "Borrower"). Agency and Borrower are hereinafter collectively referred to as the "Parties." RECITALS A. Agency and Borrower executed a Disposition and Development Agreement I;the "DDA") dated as of April 20, 2006 pursuant to which (i) Agency conveyed to Borrower that certain real property located near the Downtown/Central Redevelopment Project Area ("Project Area") at 440 Commercial Avenue iri South San Francisco, California (the "Property";-; and (ii) Borrower agreed to construct on the Property four (4) single family homes (the "Project") affordable to households whose annual gross income does not exceed 50% of the area median income for San Mateo County ("Very Low-Income Household"), adjusted for household size, as published in Section 6932 of Title 25 of the California Code of Regulations or successor provision. B. Borrower has requested, and Agency has agreed to provide, a loan (the "Loan") pursuant to the terms and conditions set forth herein for the purpose of financing a portion of the construction costs for the Project. C. The proceeds of the Loan ("Loan Proceeds") will be disbursed from the Agency's Low- and Moderate-Income Housing Set-Aside Fund (the "Fund") established pursuant to the California Community Redevelopment Law (Health and Safety Code Section 33000 et .seq. ), and the use of the Loan Proceeds pursuant to this Agreement will serve the purposes of the Fund by increasing the City's supply of affordable low- and moderate-income housing. D. The Agency has determined that provision of the Loan pursuant to the terms of this Agreement will be of benefit to the Project Area because the Project will provide affordable housing. NOW THEREFORE, in consideration of their mutual undertakings and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows. 1. THE LOAN AND DISBURSEMENT OF LOAN PROCEEDS. 1.1. Loan. Agency agrees to loan to Borrower, and Borrower agrees to borrow from Agency, a sum in the principal amount of Thirty-Three Thousand Seven Hundred-Eighty Dollars ($33,780) (the "Loan") upon the ternns and conditions and for the purposes set forth in this Agreement. The Loan shall be evidenced by a promissory note dated as of the Effective Date and executed by Borrower substantially in the form attached hereto as Exhibit A (the "Note"). 1042275.1 Provided that Borrower has complied with all conditions set forth in Section 1.5, the Loan Proceeds shall be disbursed in accordance with Section 1.4 hereof. 1.2. Interest; Maturity Date; For~i~weness. Provided that Borrower is not in default under the terms of this Agreement, the Note or 'the DDA, no interest shall accrue on the Loan. The outstanding principal balance of the Loan and any other sums due under the Promissory Note shall be payable in full on the fifteenth (15th) anniversary of the Effective Date unless the Loan is forgiven pursuant to the terms of this Agreement. Provided that Borrower is not in default under this Agreement, the Note, or the DDA, the Agency shall forgive the outstanding balance of the Loan upon the sale of the four (4) single-family homes comprising the Project to Very Low- Income Households and the recordation of a Resale Restriction and Right of First Refusal Agreement ("Resale Restriction Agreement") against each such home. 1.3. Use of Loan Proceeds. The Loan Proceeds shall be used solely and exclusively to defray construction costs for the Project. 1.4. Disbursement of Proceeds. Upon satisfaction of the conditions set forth in Section 1.5, provided that Borrower has provided Agency copies of third-party invoices, evidence of Borrower's payment for services rendered in connection with the Project, and such other documentation as Agency may reasonably require, the Agency shall promptly disburse Loan Proceeds to Borrower. 1.5. Conditions Precedent to Disbursement of Funds. Agency's obligation to disburse the Loan Proceeds is conditioned upon satisfaction of all of the following conditions: a. Borrower's execution and delivery to the Agency of this Agreement and the Note; b. Borrower's delivery to the Agency of each of the following: (i) certified resolution indicating that Borrower has authorized this transaction and that the persons executing thisc Agreement on Borrower's behalf have been duly authorized to do so anal (ii) certified copies of Borrower's articles of incorporation, bylaws, and I.R.S. tax-exemption determination letter. Borrower's sale of the; four (4) single family homes comprising the Project to Very Low-Income Households and the recordation of a Resale Restriction Agreement against each such home. 1.6. No Obligation to Disburse proceeds Upon Default. Notwithstanding any other provision of this Agreement, the Agency shall have no obligation to disburse any portion of the Loan Proceeds to Borrower followin3;: a. The failure of any of ]Borrower's representations and warranties set forth in this Agreement to be true and correct in all material respects. b. Termination of this Agreement by mutual written agreement of the Parties. 1042275.1 2 c. The occurrence of an Event of Default under this Agreement, the Note or. the DDA. 2. NON-DISCRIMINATION. 2.1.Non-Discrimination. Borrower covenants by and for itself and its successors anal assigns that there shall be no discrimination against or segregation of a person or of a group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Project or the Property, nor shall Borrower or any person claiming under or through Borrower establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the Project. 2.2. Mandatory Language in All Subsequent Deeds, Leases and Contracts. All deeds, leases or contracts made or entered into by Borrower, its successors or assigns, as to any portion of the Property or the Project shall contain therein the following language: (a) In Deeds: "Grantee herein covenants by and for itself, its successors and assigns that there shall be no discrimination against or segregation of a person or of a group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12S>55, and Section 12955.2 of the Government Code in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the property herein conveyed nor shall the grantee or any person claiming under or through the grantee establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or venciees in the property herein conveyed. The foregoing covenant shall run with the land." (b) In Leases: "The lessee herein covenants by and for the lessee and lessee's heirs, personal representatives and assigns acid all persons claiming under the lessee or through the lessee that this lease is made subject to the condition that there shall be no discrimination against or segregation of any person or of a group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the land herein leased nor shall the lessee or any person claiming under or through the lessee establish or permit any such practice or practices of discrimination or segregation with reference to the 1042275.1 selection, location, number, use or occupancy of tenants, lessees, sublessees, subtenants, or vendees in the land herein lE;ased." (c) In Contracts: "There shall be no discrimination against or segregation of any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the property nor shall the transferee or any person claiming under or through the transferee establish or permit any such practice or practices of discrimination or segregation with reference 1;o the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the land." 3. ADDITIONAL COVENANTS, REPRESENTATIONS AND WARRANTIES OF BORROWER. 3.1. Representations. Borrower represents and warrants to the Agency as follows: a. Organization of the Borrower. Borrower is a duly organized nonprofit public benefit corporation, validly existing and in good standing under the laws of the State of California. Borrower has all requisite power and authority to develop the Project, to carry on its business as now conducted, and to execute, deliver and perform its obligations under this Agreement and the Note. Borrower has received a determination from the Internal Revenue Service that it is exempt from federal tax under Section 501(c)(3) of the Internal Revenue Code of 1986 as amended. b. Authorization of the Loan; No Violation. The execution, delivery and performance of this Agreement and the Note have been duly authorized by Borrower, and this A€;reement and the Note, when duly executed and delivered will constitute the valid and binding obligations of Borrower enforceable in accordance with their respective terms. Borrower's execution of this Agreement and the Note and performance thereunder will not result in a breach of or constitute a default under any agreement, indenture or other instrument to which Borrower is a party or by which Borrower may be bound. c. Litigation. There are: no pending or to Borrower's knowledge, threatened actions or proceedings before any court or administrative agency which may adversely affect the financial condition or operation of Borrower or its ability to carry out the obligations of Borrower under this Agreement and the Note. Borrower is not the subject of an action under federal or state Bankruptcy Law (as defined below). 3.2. Indemnification. Borrower shall indemnify, defend (with counsel approved by the Agency), and hold Agency and the City of South San Francisco ("City") and their respective 1042275.1 tl elected and appointed officers, officials, employees, contractors, agents and representatives (all of the foregoing, collectively the "Indlemnitees") harmless from and against any and all liabilities, losses, damages, fines, deficiencies, penalties, claims, demands, suits, actions, causes of action, legal or administrative proceedings, judgments, costs and expenses (including without limitation reasonable attorneys' fees and court costs) (all of the foregoing, collectively "Claims") arising directly or indirectly in any manner in connection with or resulting from (a) any and all predevelopment, development or construction activities conducted in connection with the Property or the Project, including without limitation, site investigations conducted by or for Borrower, (b) any failure of any o:f Borrower's representations or warranties set forth in this Agreement, or made by Borrower in c;onnection with the execution and delivery of this Agreement or in any certificate furnished pursuant hereto, or in connection with any request for disbursement of Loan Proceeds to be correct in all material respects, (c) any claim, demand or cause of action, or any action or other proceeding, whether meritorious or not, brought ar asserted against any Indemnitee whiclh relates to or arises in connection with the Loan or any transaction contemplated thereby. Bcrrower's obligations under this Section shall survive the making and repayment of the Loan acid the expiration or termination of this Agreement. Borrower's indemnity obligations shall not apply to Claims arising solely as a result of the willful misconduct or gross negligence of the; Indemnitees. 3.3. Books and Records. The A;;ency shall have the right, during business hours and after reasonable notice to Borrower, to inspect and copy Borrower's books and records pertaining to the Property, the Project and the Loan. Agency shall maintain the copies of Borrower's books and records in strict confidence excef-t to the extent required to be disclosed by applicable law. 4. DEFAULT AND REMEDIES. 4.1. Events of Default. The occurrence of any one or more of the following events shall constitute an event of default hereundler ("Event of Default"): a. Unless the Loan is forgiven pursuant to the terms of this Agreement, Borrower fails to pay when due the principal payable under the Note, and such failure continues for thirty (30) days after Agency notifies Borrower thereof in writing. b. Any of Borrower's representations or warranties contained in this Agreement, or made by Borrower in connection with the execution and delivery of this Agreement or in any certificate furnished pursuant hereto, or in connection with any request for disbursement of Loan Proceeds shall prove to have been incorrect when made in any material respect. c. Borrower fails to use Loan Proceeds in accordance with this Agreement or fails to use Loan Proceeds in accordance with Borrower's request for disbursement. d. Pursuant to or within the meaning of the United States Bankruptcy Code or any other federal or state :law relating to insolvency or relief of debtors ("Bankruptcy Law"), Borrower (i) commences a voluntary case or proceeding; (ii) consents to the entry of an order for relief against Borrower in an involuntary case; (iii) 1042275.1 consents to the appointment of a trustee, receiver, assignee, liquidator or similar official for Borrower; (iv) makes an assignment for the benefit of its creditors; or (v) admits in writing ills inability to pay its debts as they become due. e. A court of competent jjurisdiction enters an order or decree under any Bankruptcy Law that (i) is for relief against Borrower in an involuntary case, (ii) appoints a trustee, receiver, assignee, liquidator or similar official for Borrower or substantially all of such entity's assets, (iii) orders the liquidation of Borrower, or (iv) issues or levies a judgment, writ, warrant of attachment or similar process against the Property or the Project, and in each case the order or decree is not released, vacated, dismissed or fully bonded within 60 days after its issuance. f. Borrower fails to maintain insurance as required pursuant to the DDA, a1~d Borrower fails to cure such default within 10 days. g. Borrower defaults in the performance of any term, provision, covenant or agreement contained in this Agreement other than an obligation enumerated in this Section 4.1, and unless a shorter cure period is specified for such default, the default continues for thirty (30) days after the date upon which Agency shall have given written notice of the default to Borrower, provided that in the case of a nonmonetary default ghat is not susceptible of cure within thirty (30) days, an Event of Default shall not arise hereunder if Borrower commences to cure the default within thirty (30) days and thereafter prosecutes the curing of such default to completion with du.e diligence and in good faith, but in no event longer than 120 days from the receipt of notice of default. 4.2. Remedies. Upon the occurrence of an Event of Default, the Agency shall have the following rights, in addition to any other rights and remedies provided by law: (a) The Agency may declare the entire outstanding principal balance of the Loa1i immediately due and payable; (b) The Agency may seek an order of specific performance; and (c) The Agency may terminate this Agreement. Each of the remedies provided herein. is cumulative and not exclusive of, and shall not prejudice any other remedy provided herein, or in the Note, or under law or in equity. The Agency may exercise any rights and remedies available under applicable law, in addition to, and not in lieu of, any rights and remedies expressly granted in this Agreement. 5. MISCELLANEOUS. 5.1. Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns. Notwithstanding the foregoing, Agency's obligation to make the Loan is personal to Borrower, and shall not be assignable by operation of 1042275.1 law or otherwise absent the express written consent of Agency, and any such prohibited assignment by operation of law or otherwise shall be void. 5.2. Notices. Except as otherwise specified herein, 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: a. personal delivery, in which case notice is effective upon delivery; b. 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; c. 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; d. 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-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 shaill be considered to have been received on the next business day if it is received afl:er 5:00 p.m. recipient's time or on a nonbusiness day. AGENCY: Redevelopment Agency of the City of South San Francisco 400 Grand Avenue South San Francisco, (:A 94080 Attention: Executive L)irector BORROWER: Peninsula Habitat for 13umanity 690 Broadway Street Redwood City, CA 94063 Attention: President 5.3. Waiver, Modification and Amendment. No failure or delay on the part of the .Agency in exercising any right, power, or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power, or remedy preclude any other or further exercise thereof or the exercise of any other right, power, or remedy hereunder. No modification or waiver of any provision of this Agreement, nor any consent to any departure by Borrower therefrom, shall in any event be effective unless the same shall be in writing, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. No notice to or demand on the Borrower in any case shall entitle the Borrower to 1042275.1 ~ any other or further notice or demand in similar or other circumstances unless expressly :provided herein or by law. No amendment to o:r modification of this Agreement shall be effective unless and until such amendment or modification is in writing, properly approved in accordance with applicable procedures, and executed by the Parties. 5.4. Further Assurances. The Parties shall execute, acknowledge and deliver to the other such other documents and instruments, and take such other actions, as either shall reasonably request as may be necessary to carry out the intent of this Agreement. 5.5. Parties Not Co-Venturers. Nothing in this Agreement is intended to or shall establish the Parties as partners, co-venturers, o~r principal and agent with one another. 5.6. Action >~ the Agency. Excc;pt as may be otherwise specifically provided herein, whenever any approval, notice, direction, consent or request by the Agency is required or permitted under this Agreement, such action shall be in writing, and such action maybe given, made or taken by the Executive Director or by any person who shall have been designated by the Executive Director, without further approval by the Agency's governing board unless the Executive Director determines in his or her discretion that such action requires such approval. 5.7. Non-Liability of Agenc~anci Agency Officials, Employees and Agents. No member, official, employee or agent of the Age;ncy shall be personally liable to Borrower, or any successor in interest, in the event of any default or breach by the Agency, or for any amount of money which may become due to Borrower or its successor or for any obligation of Agency under this Agreement. 5.8. No Third Party Beneficiaries. There shall be no third party beneficiaries to this Agreement. 5.9. Captions; Construction. Thee headings of the sections and paragraphs of this Agreement have been inserted for convenience only and shall not be used to construe this Agreement. The language of this Agreement shall be construed as a whole according to its fair meaning and not strictly for or against any Party. Time is of the essence in the performance of this Agreement. 5.10. Governing Law; Venue. This Agreement shall be construed and enforced in accordance with the laws of the State of California without regard to principles of conflicts of law. The Parties consent to the jurisdliction of any federal or state court in the jurisdiction in which the Property is located (the "Property Jurisdiction"). Borrower agrees that any controversy arising under or in relation to this Agreement shall be litigated exclusively in courts having jurisdiction in the Property Jurisdiction. Borrower irrevocably consents to service, jurisdiction, and venue of such courts; for any such litigation and waives any other venue to which it might be entitled by virtue of domicile, habitual residence or otherwise. 5.11. Attorne sY Fees. In the event any legal action is commenced to interpret or to enforce the terms of this Agreement or to colllect damages as a result of any breach thereof, the Party prevailing in any such action shall be entitled to recover against the other Party all reasonable attorneys' fees and costs incurred in :>uch action. 1042275.1 5.12. Severability. If any term of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, t]ne remainder of the provisions shall continue in full force and effect unless the rights and obligations of the Parties are materially altered or abridged by such invalidation, voiding or unenforc;eability. 5.13. Entire Agreement; Exhibits. This Agreement contains the entire agreement between the Parties with respect to the subject matter hereof, and supersedes all prior oral or written agreements between the Parties with respect thereto. Exhibit A attached hereto is incorporated herein by this reference. 5.14. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one and the same instrument. SIGNATURES ON FOLLOWING PAGE. 1042275.1 9 IN WITNESS WHEREOF, the Parties have executed this Loan Agreement as of the date first written above. REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO, a public body, corporate and politic: By: Name: ATTEST: By: Executive Director Agency Secretary APPROVED AS TO FORM: By: Agency Counsel BORROWER: PENINSULA HABITAT FOR HUMANITY, a California nonprofit public benefit corporation By: Name: President 1042275.1 I Q Exhibit A FORM[ OF PROMISSORY NOTE $33,780 South San Francisco, California 2008 FOR VALUE RECEIVED, the undersigned Peninsula Habitat for Humanity, a California nonprofit public benefit corporation ("Maker"), hereby promises to pay to the order of the Redevelopment Agency of the City oi' South San Francisco, a public body, corporate and politic ("Holder" or "Agency"), the principal sum of Thirty-Three Thousand Seven Hundred Eighty Dollars ($33,780) (the "Loan") or such lesser amount as is actually disbursed to Maker by Holder. This Promissory Note (this "1\fote") has been executed and delivered pursuant to and in accordance with a Loan Agreement executed by and between Maker and Agency dated as of 2008 (the "Loan Agreement"), and is subject to the terms and conditions of the Loan Agreement, which is by this reference; incorporated herein and made a part hereof. Capitalized terms used but not defined herein shall have the meaning ascribed to such terms in the Loan Agreement. 1. Payments 1.1 Maturity Date; Interest; For iveness. Unless the Loan is forgiven piursuant to the terms of the Loan Agreement and this Note, the entire principal balance outstanding under this Note shall be due and payable in full on the fifteenth (15th) anniversary of the da1:e first written above ("Maturity Date"). Provided. that Maker is not in default under the Loan Agreement or the DDA, no payment is due on the outstanding principal balance of the Loan and no interest shall accrue on the outstanding principal balance of the Loan. Provided that Maker is not in default under the terms of the Loan Agreement or the DDA, the Agency shall forgive the outstanding balance of the Loan upon the sale of the four (4) single-family horries comprising the Project to Very Low-Income Households and the recordation of a Resale Restriction Agreement against each such home. 1.2 Manner of Payment. All payments under this Note shall be paid in currency of the United States of America, which at the time of payment is lawfiul for the payment of public and private debts. All payments shall be made payable to Holder and mailed or delivered to Holder's office at 400 Grand Avenue, South San Francisco, California 94080, or to such other place as Holder of this Note may from time to time designate. 1043134.1 2. Events of Default; Remedies. (a) An event of default (")E:vent of Default") permitting Holder to declare all sums payable hereunder immediately due and payable, and to exercise all remedies available to Holder pursuant to this Note and the Loan Agreement, shall arise upon the occurrence of any of the following: (1) Unless the Loan is forgiven pursuant to the Loan Agreement and this Note, Maker fails to pay in full any payment required under this Note when due which continues for more than thirty (30) days after Holder's delivery of a written notice to Maker that such payment is due; (2) An event oil default arises under the DDA or the Loan Agreement and remains uncured beyond any applicable cure period; (3) Pursuant to or within the meaning of the United States Bankniptcy Code or any other federal or state law relating to insolvency or relief of debtors ("Bank~•uptcy Law"), Maker shall (i) commence a voluntary case or proceeding; (ii) consent to the entry of an order for relief against it in an involuntary case; (iii) consent to the appointment of a trustee, receiver, assignee, liquidator or simil~~r official; (iv) make an assignment for the benefit of its creditors; or (v) admit in writing its inability to pay its debts as they become due. (4) A court of competent jurisdiction enters an order or decree under any Bankruptcy Law that (i) is for relief against Maker in an involuntary case, (ii) appoints a trustee, receiver, assignee, liquidator or similar official for Maker or substantially all of Maker's assets, or (iii) orders the liquidation of Maker, and in each case the order or decree is not dismissed within 60 days. (b) Remedies. Upon the occurrence of an Event of Default hereunder, Agency may, at its option (i) by written notice to N[aker, declare the entire unpaid principal balance of this Note immediately due and payable regardless of any prior forbearance, (ii) exercise any and all rights and remedies available to it under applicable law, and (iii) exercise any and all rights and remedies available to Agency pursuant to this Note or the Loan Agreement. Maker shall pay all reasonable costs and expenses incurred by or on behalf of Agency including, without limitation, reasonable attorneys' fees, incurred in connection with Agency's enforcement of this Note and the exercise of any or all of its rights and remedies hereunder. 3. Miscellaneous Provisions. (a) Waivers; Amendment;. The rights and remedies of Agency under this Note shall be cumulative and not alternative. No waiver by Agency of any right or remedy under this Note shall be effective unless in a writing signed by Agency. Neither the failure nor any delay in exercising any right, power or privilege under this Note will operate as a waiver of such right, power or privilege, and no single or partial exercise of any such right, power or privilege by Agency will preclude any other or further exercise of such right, power or privilege or the exercise of any other right, power or privilege. No notice to or demand on Maker will be 1043134.1 2 deemed to be a waiver of any obligation of Maker or of the right of Agency to take further action without notice or demand as provided in this Note. Maker hereby waives presentment, demand, protest, notices of dishonor and of protest and all defenses and pleas on the grounds of arty extension or extensions of the time of payment or of any due date under this Note, in whole or in part, whether before or after maturity and with or without notice. There shall be no amendment to or modification of this Note except by written instrument executed by Maker and Agency. (b) Notices. All notices to Holder or Maker shall be given in the manner and at the addresses set forth in Section 5.2 of the Loan Agreement, or to such addresses as Holder and Maker may hereafter designate in accordance with said Loan Agreement. (c) Attorneys' Fees. In the event of litigation arising from the enforcement of or a default under this Note, the non-prevailing party shall pay all reasonable costs and expenses, including reasonable attorneys' fees, incurred by the prevailing party in such litigation. (d) Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of California without regard to principles of conflicts of laws. (e) Time is of the Essence. The times for the performance of any obligations hereunder shall be strictly construed, itime being of the essence. (f) Severability. If any provision of this Note shall be held by a court of competent jurisdiction to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby. MAKER: Peninsula Habitat for Humanity, a California nonprofit public benefit corporation By: Its: 1043134.1 Exhibit 1 Form of Resale Restriiction and Right of First Refusal Agreement Recording requested by and when recorded mail to: Redevelopment Agency of the City of South San Francisco 400 Grand Avenue South San Francisco, CA 94080 Attention: Executive Director EXEMPT FROM RECORDING FEES PER GOVERNMENT CODE &6103, 27383 Space above this line for Recorder's use. RESALE RESTRICTION ,AGREEMENT AND OPTION TO PURCHASE NOTICE: THERE ARE RESTRIC~!'IONS ON THE SALE OF THE PROPERTY YOU ARE BUYING. EXCEPT FOR A TRANSFER TO THE REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO OR PENINSULA HABITAT FOR HUIYIANITY FOLLOWING EXERCISE OF THEIR RESPECTIVE OPTION TO PURCHASE, THE PROPERTY MAY ONLY BE SOLD TO AN ELIGIBLE HOUSEHOLD AT A PRICE NOT TO EXCEED THE ADJUSTED RESALE PRICE WHICH IS CAPPED AT AN AFFORDABLE HOUSING COST. AL1: IMPROVEMENTS TO THE PROPERTY AND ALL LOANS SECURED B:Y THE PROPERTY REQUIRE PRIOR T~'RITTEN APPROVAL FROM TIi'E REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO. This Resale Restriction Agreement and Option to Purchase ("Agreement") is entered into as of this , 2008 (tile "Effective Date"), by and between the Redevelopment Agency of the City of South San Francisco ("Agency") and ("Owner"). Agency and Owner are collectively rE;ferred to hereinafter as the "Parties." RECITALS A. Owner intends to purchase the property located at in the City of South San Francisco and more particularly described in Exhibit A attached hereto and incorporated herein by reference (the "Property"). B. The Property was constructed pursuant to a Disposition and Development Agreement ("DOA") dated as of , 2005 by and between the Agency and Peninsula Habitat for Humanity, a California nonprofit put-lic benefit corporation (the "Developer"). Pursuant to the DOA, the Developer agreed to sell the Property to Very Low- Income households (as defined below). C. Developer and Owner have entered, or will enter, into a Grant of Option to Repurchase and Resale Restriction Agreement ("Developer Resale Agreement") which restricts the resale price of the Property and grants the Developer an option to purchase the Property at a restricted price ("Developer Option"). 1048251.2 D. In consideration of the Developer's agreement to sell the Property to the Owner at a price below the fair market value of the Property, the Owner has agreed to execute and comply with this Agreement. E. The purpose of this Agreement is to place occupancy and resale controls on the Property in consideration of the economic benefit:; to the Owner resulting from purchase of the Property at a below market price. This Agreement restricts the resale price of the Property and specifies, among other requirements, that the Property may only be transferred to Eligible Households. This Agreement also provides the Agency an option to purchase the Property at a restricted price, subject to the Developer Option. NOW THEREFORE, in consideration of the benefits received by the Owner anal the Agency hereunder, Owner and Agency agree as follows: 1. Definitions. The follo`~ving terms shall have the meanings set forth in thi:> Section. Additional terms are defined. in the Recitals and text of this Agreement. (a) "Adjusted Resale Price" is defined in Section 15. (b) "Affordable Housing Cost" shall have the meaning ascribed to such term in California Health and Safety Code Section 50052.5 or successor provision and the regulations promulgated pursuant thereto. (c) "Area Median Income" or "AMI" means the area median income for San Mateo County, California, adjusted for household size, published periodically by the California Department of Housing and Community Development ("HCD") in Section 6932 of Title 25 of the California Code of Regulations or successor provision published pursuant to California Health and Safety Code Section 50093(c). If HCD ceases to make such determination, Area Median Income shall be the median income applicable to San Mateo County, with adjustments for household size, as determined from time to time by the U.S. Department of Housing, and Urban Development ("HUD") pursuant to the United States Housing Act of 1937 as amended, or such other method of median income calculation applicable to the City of South San Francisco that HUD may hereafter adopt in connection with such Act. (d) "Agency Option" is Clefined in Section 8. (e) "Base Resale Price" its defined in Section 15. (f) "Developer Option" is defined in Recital C. (g) "Eligible Household" is defined in Section 7. (h) "Gross Income" shall have the meaning ascribed to such term in Section 6914 of Title 25 of the California Code of Regulations or any successor thereto. 104825.2 2 (i) "Notice of Intent to Tlransfer" is defined in Section 10. (j) "Principal Residence''' means the place where a person resides on a substantially full-time basis during not less than ten (10) months per year. (k) "Term" means a period of fifty-five (SS) years from the Effective Date. (1) "Transfer" as defined in Section 6. (m) "Very Low-Income" Yneans Gross Income that does not exceed 50% of AMI. 2. Principal Residence Rf;_guirement. The Owner covenants and agrees that Owner shall occupy the Property as the Owner's Principal Residence throughout the period of time that Owner owns the Property, and shall not rent or lease the Property or portion thereof during the Term of this Agreement. Upon request of the Agency made from time to time, Owner shall provide a written certification to the Agency, in form provided by the Agency, that Owner is occupying the Property as Owner's Principal Residence and that Owner is not renting oi• leasing the Property to another party, and shall provide such documents and other evidence as Agency may reasonably request to verify compliance with this Section. During the Term of this Agreement, successor owners of the Property shall be obligated to use the Property as successor's Principal Residence for the duration of successor's ownership. 3. Affordability Restrictions. Owner, by and for itself and any successors in interest, hereby covenants and agrees that the Property shall be sold only to Eligible Households (defined in Section 7 below) at a price not to exceed the Adjusted Resale Price (as defined in Section 15 and that during the Term of this Agreement all of the requirements and restrictions of this Agreement shall apply. 4. Maintenance. a. The Owner shell maintain the Property, including landscaping, iri good repair and in a neat, clean and orderly condition (and, as to landscaping, in a healthy condition) and in accordance with all applicable: laws, rules, ordinances, orders and regulations of all federal, state, county, municipal, and. other governmental agencies and bodies having or claiming jurisdiction and all their respective departments, bureaus, and officials. Owner shall not commit waste or permit deterioration of the Property, and shall make all repairs and replacements necessary to keep the Property in good condition and repair. Failure by the Owner to maintain the Property shall constitute a default under this Agreement for which the Agency may exercise the remedies provided to Agency hereunder, including without limitation, the Agency Option to purchase the Property pursuant to Section 8 below. b. In the event that the Owner breaches any of the covenants contained in this Section 4 and such default continues for a period often (10) days after written notice from the Agency with respect to graffiti, debris, waste material, and general maintenance or thirty (30) days after written notice from the Agency with respect to landscaping and building improvements, then in addition to arty other remedy Agency may have at law or in equity, 104825.2 3 Agency shall have the right to enter the Property and perform or cause to be performed all such acts and work necessary to cure the default. Pursuant to such right of entry, the Agency shall be permitted (but is not required) to enter the Property and perform all acts and work necessary to protect, maintain, and preserve the improvements and landscaped areas, and to attach a lien on the Property, or to assess the Property, in the amount of the expenditures arising from such acts and work of protection, maintenance, .and preservation by the Agency and/or costs of such cure, which amount shall be promptly paid Eby the Owner to the Agency, plus an administrative charge equal to fifteen percent (15%) of the cost of such work upon demand. 5. Insurance. The Owner shall maintain a standard all risk property insurance policy equal to the replacement value of the ]?roperty (adjusted every five (5) years by appraisal., if requested by Agency) naming the Agf;ncy and its elected and appointed officers, officials, employees, representatives and agents. as additional insureds. The Owner shall provide the Agency with evidence of required insurance coverage upon Agency's request. 6. Transfer. a. Restrictions on Transfer. Except as provided in Section 6(b), throughout the Term of this Agreement, the Property may only be sold or otherwise conveyed to Eligible Households at a price not to exceed the Adjusted Resale Price defined in Section 15 below. There shall be no Transfer of the Property without the Agency's certification that the transferee is an Eligible Household and that the Property is being transferred at a price not to exceed the Adjusted Resale Price. "Transfer" means any sale, assignment or transfer, voluntary or involuntary, of any interest in the Property, including, but not limited to, a fee simple interest, a joint tenancy interest, a life estate, a leasehold interest, an interest evidenced by a land contract by which possession of the Property is transferred and Owner retains title, or a deed of trust. Any Transfer without satisfaction of 1;he provisions of this Agreement is prohibited and shall constitute a default by Owner for which the Agency may exercise any of the remedies provided herein, including without limitation, the exercise of the Agency Option pursuant to Section 8 below. b. Permitted Transfers. Provided that the transferee assumes, within 30 days following written request by the Agency, all of Owner's duties and obligations under this Agreement pursuant to a written assumption agreement in a form acceptable to Agency, or at Agency's election, execution of an agreement substantially similar to this Agreement, the following transfers ("Permitted Transfers") of title to the Property or of any estate or interest therein, shall not be subject to the Ag;ency's prior approval, shall not trigger the exercise of the Agency Option, and shall not be considered Option Events: (i) a transfer to Developer pursuant to the Developer Resale Restriction Agreement (ii) a transfer to an existing spouse or domestic partner; (iii) a transfer by an Owner to a spouse or domestic partner where the spouse or domestic partner becomes the co-ow~aer of the Property; (iv) acourt-ordered transfer of title to a spouse as part of a divorce or dissolution proceeding; (v) a transfer to an existing spouse or domestic partner of Owner or to Owner's issue by devise or inheritance following the death of Owner; or (vi) a transfer by Owner into an inter vivos trust in which the Owner is a beneficiary and the Owner continues to occupy tlhe property as his/her Principal Residence. For purposes of this section, "domestic partner" shall mean two unmarried people, at least eighteen (18) years of 104825.2 4 age, who have lived together continuously for at least one (1) year and who are jointly responsible for basic living expenses incurred during their domestic partnership. Domestic partners may not be persons related to each other by blood or adoption such that their marriage would be barred in the state of California. For purposes of this section, an individual shall be considered a domestic partner of Owner upon presentation of an affidavit or other acceptable evidence by Owner to the Agency. c. Inheritance. In the event a Transfer occurs by devise or inheritance due to death of the Owner, the administrator of the Owner's estate or the person inheriting the Property shall provide written notice to the Agency of the Owner's death within thirty (30) days o:Pthe date of death and the following procedures shall apply: (i) If the pearson inheriting the Property (the "Inheriting Owner") is the child or stepchild of the deceased Owner (an "Inheriting Child"), he or she shall prc-vide the Agency with documentation that he oar she is the child or stepchild of the deceased Owner and with income information, to be verified by the Agency, so that the Agency may determine if the Inheriting Child is an Eligible Household. If the Inheriting Child fails to provide required documentation of his or her relationship to the Owner, or financial information, he or she shall be deemed not to qualify as an Inheriting; Child andlor Eligible Household, as applicable. Ifs the Inheriting Child qualifies as an Eligible Household, he or she shall succeed to the Owner's interest and obligations under this Agreement and new documents shall be executed between the Inheriting Owner and the Agency and. recorded against the Property. If the Inheriting Child fails to qualify as an Eligible Household, he or she shall be required to Transfer the Property to an Eligible Household at a price not exceeding the Adjusted Resale Price, pursuant to the procedures set forth in Section 10 below and the Agency may exercise the Agency Option pursuant to Section 8 below; provided, however that the Inheriting Child may own and occupy the Property for up to a maximum of twelve (12) months provided that the Inheriting Child remains in compliance with the requirements of this Agreement. The Inheriting Child shall not be required to occupy the Property during such twelve (12)-month time period, but shall not rent the Property. (ii) If the Inheriting Owner is not the child or stepchild of the deceased Owner, except as permitted pursuant to Section 6(a), the Inheriting Owner shall Transfer the Property to an Eligible Household at a price not exceeding the Adjusted Resale Price, pursuant to the procedures set forth in Section 10! below and the Agency may exercise the Agency Option pursuant to Section 8 below. In this event, the Inheriting Owner shall provide the Agency with a Notice of Intent to Transfer within sixty (60) days of the date of death of the Owner. (iii) Failure of an Inheriting Owner to follow the procedures and file the notices described in this Section 6 shall constitute a default under this Agreement and the Agency may then exercise any of the remedies set forth in Section 22 below, including, without limitation, exercise of the Agency Option. 7. Eligible Household. A prospective purchaser shall qualify as an "Eligible Household" if he or she meets the following requirements as determined by the Agency: 104825.2 (i) The pro:;pective purchaser shall certify that he or she will occupy the Property as his or her Principal Residence throughout his or her ownership; and (ii) The Gross Income for all members of the prospective purchaser's household shall not exceed Very Low-- Income. 8. Grant of Agency Option to Purchase• Assignment of Option. Owner hereby grants to the Agency an option ("Agency Option") to purchase the Property at the Adjusted Resale Price upon the occurrence of a~n Option Event subject to the terms and conditions contained herein. For so long as the L>eveloper Resale Agreement is in effect, the Agency Option shall be subordinate to the Developer Option, and Agency may only exercise the Agency Option if Developer elects not to exercise the Developer Option. The Agency may assign the Agency Option to another government entity, anon-profit affordable housing provider or an Eligible Household. The Agency's assignment of the Agency Option shall not extend any time limits contained herein with respect to the exercise period of the Agency Option or the period within which the Property must be purchased following exercise of the Agency Option. In no event shall Agency become in any way liable to Owner, nor become obligated in any manner, by reason of the assignment of the Agency Option, nor shall Agency be in any way obligated or liable to Owner for any failure of Agency's assignee to consummate a purchase of the premises or to comply with the terms of any purchase and sale agreement. 9. Events Giving Rise to Right to Exercise Option. Agency shall have the right to exercise the Agency Option upon the occurrence of any of the following events (each, an "Option Event"): a. Receipt of a Notice of Intent to Transfer (defined in Section 10 below); b. Any actual, attempted or pending Transfer of the Property or of any estate or interest therein, except as provided in Section 6(b); c. Any actual, attempted or pending encumbrance of the Property, including without limitation by way of mortgage or deed of trust, or by judgment, mechanics, tax or other lien, except as provided in Section 19 below; d. Recordation of a notice of default and/or notice of sale pursuant to California Civil Code section 2924 (or successor provisions) under any deed of trust or mortgage with a power of sale encumbering the Property; e. Commencemf;nt of a judicial foreclosure proceeding regarding the Property or execution by Owner of any deed in lieu of foreclosure transferring ownership of the Property; f. The occurrence of an Event of Default as described in Section 21; or g. Any violation by Owner of any provision of this Agreement. 104825.2 6 10. Notice of Intent to Transfer; Exercise of Option.. a. Notice of Intent; to Transfer. If Owner desires to Transfer the Property or of any estate or interest therein, Owne:r shall notify Agency in writing to that effect (the "Notice of Intent to Transfer"). The Notice of Intent to Transfer shall state the street address of the Property; Owner's full name or names; the address and telephone number at which Owner shall be contacted if not at the Property; and shall be delivered personally or deposited in the United States mail, postage prepaid, certified-return receipt requested, addressed to the Redevelopment Agency of the City of South San Francisco, 400 Grand Avenue, South San Francisco, C.A 94080, Attn: Executive Director. The Notice of Intent to Transfer shall be in substantially the form attached hereto as Exhibit B„ In the case of a proposed sale of the Property to a prospective purchaser, the Owner shall submit to the Agency, together with the Notice of Intent to Transfer, a copy of the prospective purchaser's income certification, a list of all assets owned by the prospective purchaser, and other financial information reasonably requested by Agency, in a form approved by the Agency, along with the income certification to be provided to any lender making a loan to the prospective purchaser. The Agency may require the prospective purchaser to provide documentation c;videncing and supporting the income and other financial information contained in the certifications. b. Notice of Exercise. Upon the occurrence of any Option Event, the Agency may exercise the Agency Option by delivering notice ("Notice of Exercise") to Owner of its intent to exercise such Agency Option pursuant to the terms of this Agreement. 7'he Notice of Exercise may be in the form attached hereto and incorporated herein as Exhibit C, or in such other form as the Agency ma;y from time to time adopt. The Notice of Exercise shall be delivered by deposit in the United States mail, postage prepaid, first-class, addressed to Owner at the Property, or at such other address as may be indicated on the Notice of Intent to Transfer, and delivery shall be deemed effective five (5) calendar days following the date of deposit. If the Option Event relates to the potenitial foreclosure of a mortgage under Sections 9(d) or (e), then the Agency shall also deliver the Notice of Exercise to the mortgagee or beneficiary under such mortgage, at such mortgagee's or beneficiary's address of record in the Office of the Recorder of San Mateo County. c. Notice of Con:>ent to Transfer. If the Agency decides not to exercise the Agency Option, the Agency may give its consent to the occurrence of the Option Event ("Consent to Transfer"). If the Option Event involves a proposed sale of the Property to a prospective purchaser, the Agency's consent shall be conditioned upon (i) the proposed purchaser's qualification as an Eligible Household; (ii) the sale of the Property at a price not to exceed the Adjusted Resale Price; (ii.i) the proposed purchaser's execution of a Disclosure Statement in the form attached hereto as Exhibit D or such other form or forms as may be promulgated by the Agency; and (iv;l the proposed purchaser's assumption of Owner's duties and obligations under this Agreemer.~t pursuant to a written assumption agreement in a form acceptable to Agency, or execution of an agreement substantially similar to this Agreement, in a form acceptable to Agency, within thirty (30) days after the Consent to Transfer has been delivered to Owner. If the prospective purchaser (i) fails to qualify as an Eligible Household, (ii) fails to execute and deliver the Disclosure Statement to the Agency, or (iii) fails to execute 104825.2 7 and deliver to the Agency an assumption agreement or an agreement substantially similar to this Agreement within such thirty (30) day period, then the Consent to Transfer shall expire and the Agency may, at its option, either notify Owner of the disqualification, thereby entitling Owner to locate another purchaser who qualifies as an Eligible Household, or exercise the Agency Option, as if no Consent to Transfer h,ad been delivered. d. Time Period for Notice. Agency shall deliver a Consent to Transfer, if applicable, no later than sixty (60) days after the date it receives notification of an Option Event. Agency shall deliver a Notice of Exercise, if applicable, no later than ninety (90) days after the date that Agency receives notification of an Option Event. For purposes of computing commencement of the delivery periods, the Agency shall be deemed to have notification of an Option Event on the date that it actually receives written Notice of Intent to Transfer, notice of default, summons and complaint or other pleading, or other writing specifically stating that an Option Event has occurred. The Agency shall have no obligation to deliver a Notice of Exercise or Consent to Transfer, and the applicable time period for exercise of the Agency Option shall not commence to run, unless and until the Agency has received notification of an Option Event in the manner specified in this subsection. If there is a stay or injunction imposed by court order precluding the Agency from delivering its Consent to Transfer or Notice of Exercise within the applicable time period, then the running of such period shall cease until such time as the stay is lifted or the injunction is dissolved and the Agency has been given written notice thereof, at which time the period for delivery of a Consent to Transfer or Notice of Exercise shall again begin to run. e. No Waiver. If the Agency in its sole discretion determines not to exercise the Agency Option in any particular instance, or fails to deliver a Notice of Exercise or Consent to Transfer within the tirrie periods set forth in this Section 10, such determination or failure shall not affect Agency's night to exercise the Agency Option upon the occurrence of any future Option Event. 11. Right to Reinstatement. If the Option Event is the recordation of a notice of default, then the Agency shall be deemed to be Owner's successor in interest under California Civil Code Section 2924c (or success>or section) solely for purposes of reinstatement of any mortgage on the Property that has led to the recordation of the notice of default. As Owner's deemed successor in interest, the Agency shall be entitled to pay all amounts of principal, interest, taxes, assessments, homeowners' association fees, insurance premiums, advances, costs, attorneys' fees and expenses required to cure the default. If the Agency exercises the Agency Option, then any and all amounts paid by the. Agency pursuant to this Section shall be treated as Adjustments to the Base Resale Price for the Property, as defined in Section 15, below,. 12. Inspection of Propert~~. After receiving a Notice of Intent to Transfer or delivering a Notice of Exercise, the Agency shall be entitled to inspect the Property one or more times prior to the close of escrow to determine the amount of any Adjustments to the Base Resale Price. Before inspecting the property, the Agency shall give Owner not less than forty- eight (48) hours written notice of the date, time and expected duration of the inspection. The inspection shall be conducted between the hours of 9:00 a.m. and 5:00 p.m., Monday through Friday, excluding court holidays, unless the parties mutually agree in writing to another date 104825.2 and time. Owner shall make the Property available for inspection on the date and at the time specified in the Agency's request for inspection. 13. Escrow. Promptly after delivering a Notice of Exercise, the Agency shall open an escrow account for its purchase of the Property. Close of escrow shall take place ten (10) days after Owner has performed all acts and executed all documents required for close of escrow, provided, however, that close; of escrow shall not occur later than sixty (60) days after a Notice of Exercise has been delivered. Prior to the close of escrow, the Agency shall deposit the Adjusted Resale Price as defined iin Section 15 below and all escrow fees and closing costs to be paid by Agency. Closing costs and title insurance shall be paid pursuant to the custom and practice in the County of San Mateo at the time of the opening of escrow, or as may otherwise be provided by mutual agrc;ement. Owner agrees to perform all acts and execute all documents reasonably necessary to ei:fectuate the close of escrow and transfer of the Property to the Agency. 14. Proceeds of Escrow; l~;emoval of Exceptions to Title. Prior to close of escrow, Owner shall cause the removal of all exceptions to title to the Property that were recorded after the Effective Date with the exceptior.~ of (i) nondelinquent taxes for the fiscal year in which the escrow closes, which taxes shall be prorated as between Owner and Agency as of the date of close of escrow, (ii) quasi-public utility, public alley, public street easements, sidewalks, and rights of way of record, and (iii) such other liens, encumbrances, reservations and restrictions as maybe approved in writing by the; Agency ("Permitted Exceptions"). All amounts required to be deposited into escrow by the Agency shall be applied first to the payment of any and all liens and encumbrances recorded against the Property in order of lien priority, and thereafter to the payment of escrow fees and closing costs. Any amounts remaining after the amounts deposited into escrow by the Agency have been so applied, if any, shall be paid to Owner upon the close of escrow. If the amounts deposited into escrow by the Agency are insufficient to satisfy all liens and encumbrances recorded against the Property, the Owner shall deposit into escrow such additional sums as may be required to remove said liens and encumbrances. In the event that the Agency agrees to proceed with close of escrow prior to the date that Owner has caused all exceptions to title other than the Permitted Exceptions to be removed, then Owner shall indemnify, defend and hold Agency harmless from any and all costs expenses or liabilities (including attorneys' fees) :incurred or suffered by Agency that relate to such exceptions and their removal as exceptions to title to the Property. 104825.2 9 15. Determination of Adiu;>ted Resale Price. If the Agency (or its assignee) exercises the Agency Option, or if the Owner sells to an Eligible Household, the maximum sales price that the Owner shall receive from the Agency or the Eligible Household shall be the Base Resale Price, as adjusted pursua~it to subsection (b) below (the "Adjusted Resale Price"). Notwithstanding any other provision :hereof to the contrary, in no event shall the Adjusted Resale Price be a price that will result in greater than Affordable Housing Cost for the Eligible Household. a. Base Resale Price. Priar to adjustment pursuant to subsection (b) below the base resale price ("Base Resale Price") of the Property shall be the lesser of: i. Indexed Value. The Indexed Value of the Property means the original price paid by the Owner for acquisition of the Property which the Parties agree is the sum of Dollars ($ ) (the "Base Price"), increased (but not decreased) by an amount, if any, equal to the Base PricE; multiplied by the percentage increase in the AMI between the Effective Date and the date that the Agency receives notification of an Option Event. ii. Fair Market Value. The Fair Market Value of the Property means the value of the Property as determined by a qualified appraiser, certified by the State of California, selected and paid for by the Owner and approved by the Agency in writing. Nothing in this Section shall preclude the Owner and the Agency from establishing the Fair Market Value by mutual agreement instead of by appraisal. b. Adjustments to Base Resale Price. Subject to the Affordable Housing Cost restriction, the Base Resale Price shall be increased or decreased, as applicable, by the following adjustment factors ("Adjustment"): i. Capital Improvements. An increase for capital improvements made to the Property by Owner, but only if th.e purpose and amount of said improvements have; been previously approved by the Agency i;n writing and evidence of the cost is provided to the Agency for verification. The amount of the Adjustment shall equal the original cost of any such capital improvements depreciated on a straight-line basis based upon the estimated useful life of the improvement stated in the Agency's prior written acceptance of said improvement. ii. Damages. A decrease by the amount necessary to repair damages to the Property, if any, and to place the Property into saleable condition as reasonably determined by the Agency, including, without limitation, amounts attributed to cleaning; painting; replacing worn carpeting and draperies; making; necessary structural, mechanical, electrical and plumbing repairs; and repairing or replacing built-in appliances and fixtures. iii. Advances b~he Agency. A decrease in an amount equal to the sum of all costs advanced by the Agency for the payment of mortgages, taxes, assessments, insurance premiums, homeowner's association i'ees and/or associated late fees, costs, penalties, interest, attorneys' fees, pest inspections, resale inspections, fixing violations of applicable building, plumbing, electric, fire, or other codE;s, and other expenses related to the Property, which Owner has failed to pay or has permitted to become delinquent. 104825.2 16. Priority and Effectiveness of the Option. a. Recordation. This Agreement shall be recorded in the Official Records on or as soon as practicable after the Effective Date. The Agency Option shall have priority over any subsequent Transfer or encwnbrance of the Property, or of any estate or interest therein, and in the event of exercise oiF the Agency Option by Agency, the Agency shall take the Property subject only to Permitted Exceptions. Except as otherwise provided in Section 17(a), the exercise of the Agency Option by the Agency at any time and from time to time shall not extinguish the Agency Option or cause a merger of the Agency Option into any estate or other interest in the Property, and the Agency Option shall continue to exist and be effective wrath respect to the Property against any and all subsequent owners in accordance with the terms and conditions hereof. b. Request for Notice of Default. The Agency shall file a Request for Notice of Default for recordation in the Official Records promptly upon execution of this Agreement. c. Subordination. This Agreement shall be subordinate to the Developer Resale Agreement. The Agency agrees that if required in order to assist Owner to secure purchase money financing for the acquisition of the Property, the Agency will enter into a subordination agreement with a purchase money lender to subordinate this Agreement under such terms as the Agency and the senior purchase money lender shall negotiate provided that Agency is granted reasonable notice .and cure rights under the first mortgage. 17. Survival of Option Upon Transfer. a. In General. The Agency's right to exercise the Agency Option shall survive any Transfer of the Property by Owner. The Agency Option may be exercised against the Property whether owned, possessed or occupied by (i) an Eligible Household, (ii) any successor, transferee, assignee, heir, executor, or administrator of an Eligible Househald, including adebtor-in-possession, debtor or trustee pursuant to Title 11 of the United States Code, or (iii) any person owning, possessing or occupying the Property who does not qualify as an Eligible Household pursuant to Section 7 (collectively all referred to and defined herein as "Owner"). Notwithstanding the foregoing, the Agency Option shall not survive (i) the; sale and transfer of the Property to a third party purchaser pursuant to a judicial or non judicial foreclosure or a deed-in-lieu of foreclosure under a power of sale contained in a mortgage or deed of trust recorded against the Property in the Office of the Recorder of the County of San Mateo on or prior to the date of this Agreement, provided that the Agency has received timely notice of such Option Event and has failed to either reinstate said mortgage or deed of trust or exercise the Agency Option, or (ii) tihe recording of an instrument conveying Owner's .interest in the Property to the Agency, or its assignee, provided the conveyance is in accordance with the terms of this Agreement. 104825.2 11 18. Voidable Transfers. Ar.-y actual or attempted Transfer of the Property or of any estate or interest therein, in violation of the terms and conditions of this Agreement, shall be voidable at the election of the Agency. 19. Permitted Encumbrances and Refinances. This Agency Option shall not become exercisable as the result of Owner's encumbering the Property for the purpose of securing financing to purchase the Property, or to refinance existing indebtedness incurred to purchase the Property. The maximum amount (the "Permitted Encumbrance Amount") of any refinancing permitted by this section shall not exceed an amount equal to ninety percent (90%) of the Adjusted Resale Price calculated as provided in Section 15. The Permitted Encumbrance Amount shall be the Adjusted Resale Price calculated as if the Agency has received notification of an Option Event on the earlier of (a) the date on which the deed of trust or mortgage securing the refinancing indebtedness is filed for record in the Official Records, or (b) the date the Agency receives Notice of Intent to Transfer pursuant to Section 10(a) above. 20. Insurance Proceeds anti Condemnation Award. In the event the Property is destroyed and insurance proceeds are distributed to Owner instead of being used to rebuild the Property, or, in the event of condemnation, if the proceeds thereof are distributed to Ov~mer, any surplus of proceeds remaining after payment of the senior liens and encumbrances on the Property shall be distributed as follows: that portion of the surplus up to, but not to excf;ed, the net amount Owner would have received pursuant to Section 14 had the Agency exercised the Agency Option on the date of the destruction of condemnation valuation date shall be distributed to Owner, and the balance. of such surplus, if any, shall be distributed to the .Agency. 21. Events of Default. Thf; following shall constitute the occurrence of an event of default ("Event of Default") hereunder, and shall entitle the Agency to exercise the Agency Option or to pursue any other remedy provided herein or at law or in equity: a. Owner fails to use the Property as Owner's Principal Residence. b. Owner Transfers the Property in violation of this Agreement. Owner refinances the Property in violation of this Agreement; d. Commencement of a judicial foreclosure proceeding regarding the Property. e. Execution by Owner of any deed in lieu of foreclosure transferring ownership of the Property. f. Commencement of a proceeding or action in bankruptcy, whether voluntary or involuntary, pursuant tc- Title 11 of the United States Code or other bankruptcy statute, or any other insolvency, reorganization, arrangement, assignment for the benefit of creditors, receivership or trusteeship;, concerning the Owner; 104825.2 ~ 2 g. Owner otherwise fails to comply with the requirements of this Agreement and such violation is not corrected to t:he satisfaction of the Agency within thirty (30) days after the date of written notice by the Agency to the Owner of such violation. 22. Remedies. a. Specific Perforrnance. Owner acknowledges that any breach in the performance of its obligations under this Agreement shall cause irreparable harm to the Agency. Owner agrees that the Agency is entitled to equitable relief in the form of specific performance, including without limitation, upon Agency's exercise of the Agency Option, and that an award of damages shall not be adequate to compensate the Agency for Owner's failure to perform according to the terms of this, Agreement. b. Other Remedies. Agency shall be entitled to pursue any other remedy provided for at law or equity, all of which shall be cumulative. 23. Covenants Running with the Land. Owner hereby subjects the Property to the covenants, conditions and restrictions set forth in this Agreement. The Parties hereby declare their express intent that all such covenants, conditions and restrictions shall be deemed covenants running with the land and shall pass to and be binding upon Owner's successors in title to the Property. All covenants without regard to technical classification or designation shall be binding for the benefit of the Agency and the City, and such covenants shall run in favor of the Agency and its successors for the Term of this Agreement. Each and every contract, deed or other instrument hereafter executed applicable to or conveying the Property or any portion thereof shall conclusively be :held to have been executed, delivered and accepted subject to such covenants, conditions and restrictions, regardless of whether such covenants, conditions and restrictions are set forth in such contract, deed or other instrument. 24. Owner's Acknowled~e;ment of Resale Restriction. Owner hereby acknowledges ;and agrees that: A. Owner hereby subjects the Property to certain restrictions, and limits the price for which Owner may sell the Property and the persons to whom Owner may sell the Property. The resale price limitation, and other provisions contained in this Agreement restrict the full benefits of owning the Property. Owner may not enjoy the same economic or other benefits from owning the Property that Owner would enjoy if this Agreement did not exist. B. Absent the provisions of 'the DDA and the provisions of this Agreement, the Property could not be made available; to Eligible Households, including Owner, at an affordable price. C. Owner has read and understands all of the provisions of this Agreement. Owner accepts and agrees to the provisions of this Agreement and understands that this Agreement (including without limitation the effectiveness of the resale restrictions and the Agency Option) 104825.2 13 will remain in full force and effect throughout the Term of this Agreement despite any Transfer of the Property. D. OWNER UNDERSTANDS THAT THE DETERMINATION OF THE ADJUSTED RESALE PRICE OF THE PROPERTY TO AN ELIGIBLE HOUSEHOLD CAN BE MADE ONLY AT THE TIME OF THE PROPOSED TRANSFER, TAKING INTO CONSIDERATION INCREASES IN MEDIAN INCOME, MORTGAGE INTEREST RATES, PROPERTY TAXES AND OTHER FACTORS THAT CANNOT BE ACCURATELY PREDICTED AND THAT THE SALES PRICE PERMITTED HEREUNDER MAY NOT INCREASE OR DECREASE IN THE SAME MANNER AS OTHER SIMILAR REAL, PROPERTY WHICH IS NOT ENCUMBERED BY THIS AGREEMENT. OWNER FURTHER ACKNOWLEDGES THAT AT ALL TIMES IN SETTING THE SALES P:LZICE OF THE PROPERTY THE PRIMARY OBJECTIVE OF THE AGENCY AND THIS AGREEMENT IS TO PROVIDE HOUSING TO ELIGIBLE HOUSEHOLDS AT AFFORDABLE HOUSING COST. T'HE ADJUSTED RESALE PRICE WILL ALMOST CERTAINLY BE LESS THAN OTHER SIMILAR PROPERTIES THAT HAVE NO RESTRICTIONS. [initialed by Owner(s)] 25. Notices. Except as otherwise specified in this Agreement, all notices required to be sent pursuant to this Agreement shall be made by personal delivery or by deposit in the United States mail, first-class, postage prepaid, and shall be deemed to have been delivered and received on the date of personal delivery or five (5) days after deposit in the mail, if sent to the following address: Agency: Redevelopment Agency of the City of South San Francisco 400 Grand Avenue South San Francisco, California 94080 Attn: Executive Director Owner: South San Francisco, California 6. Attorneys' Fees. If either party initiates legal proceedings to interpret or enforce its rights under this Agreement, the prevailing party in such action shall be entitled to an award of reasonable attorneys' fees and costs in additions to any other recovery to which it is entitled under this Agreement. 27. 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 or 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 104825.2 14 and executed by the waiving party. This Agreement may be amended or modified only by a written instrument executed by the Parties and duly recorded in the Official Records of San Mateo County. 28. Severability. If any provision 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. 29. Interpretation of Agree-ment. This Agreement shall be interpreted so as t:o avoid speculation on the Property and to ensure to the extent possible that its sales price and mortgage payments remain affordable to Eligible Households. 30. Action or Approval. Whenever action and/or approval by Agency is required under this Agreement, Agency's Executive Director or his or her designee may act on and/or approve such matter unless specifically provided otherwise, or unless the Executive Director determines in his or her discretion that such action or approval requires referral to Agency's Board for consideration. 31. Entire Agreement. Thiis Agreement, including Exhibits A through D attached hereto and incorporated herein by this reference, contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior written or oral agreements, understandings, representations or statements with respect to the subject matter hereof. 32. Governing Law; Venue. This Agreement shall be governed and construed in accordance with the laws of the State; of California without regard to principles of conflict of laws. Any action to enforce or interpret this Agreement shall be filed in the Superior (:ourt of San Mateo County, California or in t:he Federal District Court for the Northern District: of California. 33. Future Enforcement b~v City. The Parties hereby agree that should the Agency cease to exist as an entity at any time; during the Term of this Agreement, the City shall have the right to enforce all of the terms and conditions herein, unless the Agency has previously specified another entity to enforce this Agreement. SIGNATURES ON FOLLOWING PAGE. 104825.2 15 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. ATTEST: By: Agency Secretary APPROVED AS TO FORM: By: Agency Counsel OWNER(S), [an individuaUa marred couple]: By: REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO, a public body corporate and politic By: Its: 104825.2 16 EXHIBIT A LF;GAL DESCRIPTION Real property in the City of South San Francisco, County of San Mateo, State of California, described as follows: 1048251.2 EXHIBIT B VIA CERTIFIED MAIL -RETURN RECEIPT REQUESTED To: Redevelopment Agency of the City of South San Francisco 400 Grand Avenue South San Francisco, CA 94080 Attn: Executive Director Date: Re: Notice of Intent to Transfer The undersigned Owner(s) - ,hereby give(s) notice c-f his/her/their intent to transfer the property located at ,South San Francisco, California (the "Property"). Owner may be contacted at the Property or at tY-e following address: Owner's daytime telephone number is ( ) The proposed transfer of the Property is to the following person(s): Name: Address: Telephone: ( ) The proposed transfer is (check one): Sale Least; Other Specify: Owner(s) signature(s): 104825.2 EXHIBIT C Date: To Re: Notice of Exercise (Ovv~ner or Transferree) (Address) The Redevelopment Agency of the City of South San Francisco ("Agency") hereby gives notice that it is exercising its opti'.on to purchase the real property located at _, South San Francisco, California. The option has been granted to the Agency pursuant to the Resale Restriction Agreement and Option to Purchase between Owner and the Agency dated and recorded on as Instrument No. (The Agency has assigned its option to purchase the real property to .) An escrow for the purchase will be opened with the Title Company. REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO, a public body, corporate and politic By: Its: 104825.2 EXHIBIT D Disclosure Statement THERE ARE RESTRICTIONS ON THE SALE OF THE PROPERTY YOU ARE BUYING. EXCEPT FOR A TRANSFER TO THE REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO OR PENINSULA HABITAT FOR HUMANITY FOLLOWING EXERCISE OF THEIR RESPECTIVE OPTION TO PURCHASE, THIS PROPERTY N]AY ONLY BE SOLD TO AN "ELIGIBLE HOUSEHOLD" AT A PRICE NOT TO EXCEED THE ADJUSTED RESALE PRICE WHICH IS CAPPED AT AN "AFFORDABLE HOUSING COST." THE PRICE FOR WHICH THIS P:E~OPERTY MAY BE SOLD IS RESTRICTED. THIS MEANS THAT YOU MAY NOT SELL THE PROPERTY FOR MARKET VALUE UNLESS APPROVED BY THE REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO. ALL IMPROVEMENTS TO THE PROPERTY AND ALL LOANS SECURED BY THE PROPERTY REQUIRE PF:IOR WRITTEN APPROVAL FROM THE REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO. THESE RESTRICTIONS WILL BE IN EFFECT UNTIL . ANY SALE OF THE PROPERTY IN VIOLATION OF THE RESTRICTIONS SHALL BE VOID. TO DETERMINE WHO AN ELIGIBLE HOUSEHOLD IS, AND WHAT THE ADJUSTED RESALE PRICE AND AFFORDABLE HOUSING COST ARE, YOU SHOULD CONTACT THE REDIVELOPMENT AGENCY OF THE CITY OF 501:7TH SAN FRANCISCO. YOU SHOULD ALSO READ TH:E RESALE RESTRICTION AND OPTION TO PURCHASE AGREEMENT RECORDED AGAINST THE PROPERTY. YOU M~.Y OBTAIN A COPY FROM THE REDEVELOPMENT AGENCY OF THE CITY OF' SOUTH SAN FRANCISCO OR FROM THE ESCROW COMPANY. I HAVE READ THE FOREGOII~(G AND I UNDERSTAND WHAT IT MEANS: Owner Owner 104825.2 EXHIBIT 2 RESOLUTION NO. 15-2005 REDEVELOPMENT AGENCY, CITY OF SOUTH SAN FRANCISCO STATE OF CALIFORNIA A RESOLUTION APPROVING A DISPOSITION AND DEVELOPMENT AGREIa:MENT (DDA) BETWEEN THE CITY OF SUtJTH SAN FRANCISCO REDEVELOPMENT AGENCY AND PENINSt.ILA HABITAT FUR HUMANITY TO TRANSFER 440 COMMERCIAL AVENtJE TO HABITAT FOR HUMANI'T'Y FOR THE CONSTRt1CTIUN OF FOL1R AFFORDABLE HOUSING UNITS AND APPROVING A FORGIVABLE CONSTRt1CTION LOAN OF $33,780 TO PENINSLII.A HABITAT FUR HtMANITY WHEREAS, it is recommend that the Redevelopment Agency Board approve the Disposition and Development Agreement, transfer the property to Peninsula Habitat for Humanity, and approve a forgivable construction loan in the amount of $33,780; and WHEREAS, under the proposed development agreement, the Redevelopment Agency will transfer the project property to Peninsula Habitat for Humanity for one dollar ($1); and WHEREAS, the City Council, acting pursuant to Health and Safety Code section 33433(c) (1) has authorized the Redevelopment Agency to sell the property located at 440 Commercial Avenue. NOW, THEREFORE, BE IT :EESOLVED by the Redevelopment Agency of the City of South San Francisco that the Agency hereby approves a Disposition and Development Agreement (DDA) between the City of South San Francisco Redevelopment Agency and Peninsula Habitat for Humanity to transfer 440 Commercial Avenue to Habitat for Humanity for the constructicn of four affordable housing units and approves; a forgivable construction loan in the amount of $33,780. BE IT FURTHER RESOLVED that the Agency authorizes the Executive Director to execute the Agreement and all related docurnents on behalf of the Redevelopment Agency, subject to approval as to form by the Agency Counsel. BE IT FURTHER RESOLVED that this resolution shall be effective upon approval of this resolution and the City Council resolution authorizing the Redevelopment Agency to sell the property at 440 Commercial Avenue to Peninsula Habitat for Humanity. ;~ ~; I hereby certify that the foregoing; Resolution was regularly introduced and adopted by the Redevelopment Agency of the City of South San Francisco at a regular meeting held on the 25`'' day of May 2005 by the following vote: AYES: Boardmembers Richard A. Garbarino Pedro Gonzalez and Karvl Matsumoto, Vice Chair Joseph A. Fernekes and Chair Raymond L Green NOES: None. ABSTAIN: None. ABSENT: None. ATTEST: Deputy Clerk °~H s . ~ Redevelopment Agency o Staff Repo~~t cALIFOR~lP RDA A GENDA ITEM # S DATE: February 13, 2008 TO: Redevelopment Agency Board FROM: Steven T. Mattas, City Attorney SUBJECT: RESOLUTION AMENDING SECTION 3.02 OF THE REDEVELOPMENT AGENCY BY-LAWS, RELATED TO REGULAR MEETING TIMES RECOMMENDATION: It is recommended that the Redevelopnnent Agency adopt a Resolution amending Section 3.02 of the Redevelopment Agency By-Laws, related to regular meeting times. BACKGROUND/DISCUSSION: Currently, the Redevelopment Agency meets at 7:00 p.m. on the second Wednesday of each month. At the City Council Retreat on January 12, 2008, the City Council directed staff to amend Section 3.02 of the Redevelopment Agency B:y-Laws, to change regular meeting times to 6:30 p.m. on the second Wednesday of each month. CONCLUSION: Adopting this Resolution will allow rE;gular meetings of the Redevelopment Agency to begin at 6:30 p.m., one half-hour earlier than i1:s current meeting time. By: Approved: Steven T. M tas City Attorney Attachment: Resolution '/V + Barry M. agel Executive Director ios~sts R1='sSOLUTION NO REDEVELOPMENT AGENCY BOARD, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AMiENDING SECTION 3.02 OF THE REDEVELOPMENT AGENCY BY-LAWS, RELATED TO REGULAR MEETING TIMES WHEREAS, by Resolution RDA.-1, dated March 5, 1980, the Redevelopment Agency of the City of South San Francisco, during its first regular meeting following formation, adopted a set of by-laws to set forth operating rules and procedures; and WHEREAS, during a special meeting on January 12, 2008, the City Council directed staff to adjust regular meeting times for the Redevelopment Agency, such that they would begin at six-thirty p.m. on the second Wednesday of each month; WHEREAS, this Resolution shall become effective as of March 29, 2008, and all Redevelopment Agency meetings after such date shall begin at 6:30 p.m. NOW, THEREFORE, BE IT RESOLVED, that the Redevelopment Agency Board of the City of South San Francisco hereby amends section 3.02 of the Redevelopment Agency Bylaws to read as follows: "Section 3.02. Regular Meeting. A regular meeting of members shall be held on the second Wednesday of each month at 6:30 p.m. In the event that the Agency determines that. additional meetings are required for the transaction of regular Agency business within a monthly period, one or more additional special meetings may be scheduled for one-half hour immediately preceding the regular City Council meeting held on the; fourth Wednesday of each month or at such other time; as may be agreed upon by the members." I hereby certify that the foregoing Resolution was regularly introduced and adopted by the Redevelopment Agency Board of the City of South San Francisco at a meeting held on the ._ day of 2008 by the following vote;: AYES: NOES: ABSTAIN: ABSENT: ATTEST: Agency Secretary 1051792.1 o °°zN sA ~~9~ AGENDA F o CITY COUNCIL -`~"'"~` CITY OF SOUTH SAN FRANCISCO C`~LIFOR~~Q' REGULAR MEETING MUNICIPAL SERVICE BUILDING COMMUNITY ROOM WEDNESDAY, FEBRUARY 13, 2008 7:30 P.M. PEOPLE OF SOUTH SAN FRANCISCO You are invited to offer your suggestions. In order that you may know our method of conducting Council business, we proceed as follows: The regular meetings of the City Council are held on the second and fourth Wednesday of each month at 7:30 p.m. in the Municipal Services, Building, Community Room, 33 Arroyo Drive, South San Francisco, California. Public Comment: For those wishing to address the City Council on any Agenda or non-Agendized item, please complete a Speaker Card located at the entrance to the Council Chamber's and subn-it it to the City Clerk. Please be sure to indicate the Agenda Item # you wish to address or the topic of your public comment. California law prevents the City Council from taking action on any item not on the Agenda (except in emergency circumstances;i. 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. PEDRO GONZALEZ Mayor KARYL MATSUMOTO Mayor Pro Tem MARK N. ADDIEGO Councilman RICHARD A. GARBARINO Councilman RICHARD BATTAGL,IA City Treasurer BARRY M. NAGEL, City Manager KEVIN MULLIN Councilman KRISTA MARTINELLI-CARSON City Clerk STEVEN T. MATTAS City Attorney PLEASE SILENCE CELL PHONES AND PAGERS IIEARING ASSISTANCE EQUIPMENT AVAILABLE FOR USE BY THE HEARING IMPAIRED AT CITY COUNCIL MEETINGS CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE INVOCATION PRESENTATIONS Centennial Update - presented by Paul Formosa and Roberto Bernardo. Proclamation recognizing March 2008 as American Red Cross Month- presented by Mayor Gonzalez. AGENDA REVIEW PUBLIC COMMENTS ITEMS FROM COUNCIL • Announcements • Committee Reports CONSENT CALENDAR Motion to approve the minutes of January 12, 2008, January 16, 2008 and January 23, 2008. 2. Motion to confirm expense claims of February 13, 2008. Motion to accept replacemer.~t of metal beam guardrail on Hickey Boulevard and South Spruce Avenue as complete :in accordance with plans and specifications, Project No. 51- 13231-0804. 4. Resolution amending the following sections of the City Council Handbook: (1) Page 4, related to Staff Assistance to the City Council during election season; (2) Appendix 5, modifying the policy regarding Councilmember use of City-provided telecommunications equipment; and (3) Page 13, establishing a time limit for presentations at City Council meetings. Resolution adopting findings in connection with the Redevelopment Agency o f South San Francisco's proposed loan to Peninsula Habitat for Humanity from the Agency's Low and Moderate Income Housing Fund for a project located at 440 Commercial Avenue in South San Francisco. 6. Resolution authorizing the purchase of two bronze giraffe sculptures for installation in the northeastern island at the intersection of Junipero Serra and Hickey Boulevards in an amount not to exceed $5000. 7. Resolution adopting the National Incident Management System. REGULAR CITY COUNCIL MEETING FEBRUARY 13, 2008 AGENDA PAGE 2 Resolution amending the 2007-2008 Budget and appropriating $22,000 from the General Fund Undesignated Reserve for the purchase of new audio and video equipment for the Council Chambers for improved hearing and viewing. PUBLIC HEARING 9. Ordinance repealing Chapter 15.24 of the South San Francisco Municipal Code and adopting a new Chapter 15.24 in conformance with the 2007 edition of the Uniform Fire Code; Motion to continue off calendar. ADMINISTRATIVE BUSINESS 10. A Resolution authorizing the acceptance of $15,000 in grant funding from ABAG Plan, which will be supplemented with funds from the Police Department Seizure Fund, to purchase handheld tasers for uniformed officers and amending the Police Department's 2007/2008 Operating Budget. 11. Waive reading and introduce an ordinance amending Section 2.04.010 of the South San Francisco Municipal Code relating to City Council meeting times and changing the regular City Council meeting; time from 7:30 p.m. to 7:00 p.m. COUNCIL COMMUNITY FORUM[ ADJOURNMENT REGULAR CITY COUNCIL MEETING FEBRUARY 13, 2008 AGENDA PAGE 3 ~~Irtrtl~ittt~rtuxt~ CITY COUNCIL, CITY OF SOUTH SAN F][tANCISCO, STATE OF CALIFORNIA AMEWCAN RED CROSS MONTH WHEREAS, the America Red Cross Bav Area was founded in 1898; and WHEREAS, the Red Cross, a leading voluntary agency, chartered and authorized by Congress to act in times of need, providing compassionate assistance to people afflicted by personal, local or national disasters; and WHEREAS, theAmerican Red Cross BcryArea helped 900families with temporary housing, clothing, food and mental health cour,!seling during 500 local disasters Zast year alone; and WHEREAS, through Prepare Bay Area Initiative and Community Preparedness programs, over 160, 000 individuals received training; and WHEREAS, in 2007, the American Red Cross Bay Area trained over 140, 000 people in lifesaving CPR, First Aid, and water safety; and WHEREAS Red Cross Blood Services support 31 Bay Area hospitals, providing them with more than 134, 000 units of red cellar, platelets and plasma to patients in need. NOW, THEREFORE, the City Council of the City of South San Francisco hereby proclaims March 2008 as "American Red Cross Montl: " and encourages all residents to be cognizant of the compassion, courage, character and civic duty that are inherent in the Red Cross nsission to prevent and relieve human suffering. Pedro Gonzalez, Mayor 1~ary1 Matsumoto, Mayor Pro Tem Mark N. Addiego, Councilmember Richard A. Garbarino, Councilmember .Kevin Mullin, Councilmember .bated: February 13, 2008 ;-~ ~ 1~; ,-t_ 0 y J O c'~LIFOR~~~ MrNUTEs REDEVELOPMENT AGENCY CITY OF SOUTH SAN FRANCISCO t~.' CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO SPECIAL MEETING CITY HALL CONFERENCE ROOM 400 GRAND AVENUE JANUARY 12, 2008 DRAFT City Council Meeting Called to Ordf:r: AGENDA ITEM #1 9:03 a.m. (Cassette Tape No. 1) Redevelopment Agency Meeting Callled to Order: 9:03 a.m. City Council and Redevelopment Agency Roll Call: Present: Councilmen/Boardmembei-s Addiego, Garbarino and Mullin, Mayor Pro Tem/Vice Chairwoman Matsumoto and Mayor/Chairman Gonzalez. Absent: None. *For reporting purposes, participants are referred to by their titles affiliated wide dre City Council except: under die specific Redevelopment Item drat was heard as Item Number 2. Public Comments: None. Items for Discussion: Council Priorities. City Manager Nagel introduced the discussion by asking the Mayor, Mayor Pro Tem and Councilmen to describe their respective goals and/or focus of attention for 2008. Mayor Gonzalez stated his goal of advancing green living policies in the City. He referred to a hydrogen fueled bus presentation he attended in East Palo Alto as an example of an environment- friendly fuel option. His comments iinitiated the following discussion pertaining to present green living policies and future goals: Councilman Mullin inquired as to staff's progress in evaluating the City's carbon footprint. Assistant City Manager Van Duyn advised that South San Francisco joined a consortium of Santa Clara and San Mateo County cities working on a regional approach to developing a baseline carbon input figure. The City is pursuing a subsidy offered by CCAG and has independently committed $12,000 towards creation of this baseline analysis. Staff is also actively looking at alternate sources for capturing energy. He further advised that staff is preparing a report that will summarize the City's green living efforts and policies in a combined format. He suggested a study session may be appropriate for presentation of the report, after which Council could provide further input on policy goals and objectives. Mayor Gonzalez suggested that community town hall-style meetings on the subject might also be appropriate. Councilman Garbarino commented on the financial challenges presented by green living programs. He noted the programs are expensive to fund and stressed the importance of being first in-line when funding from state and federal agencies becomes available. He emphasized the return on green living programs is to the environment and usually cannot be measured immediately or financially. Councilman Addiego inquired as to City programs to encourage resident's green living efforts. City Attorney Mattas advised that as part of an overall green living program, the City could provide development benefits when ,green living improvements are proposed and/or for mitigation of heavy water use. Assistant City Manager Van Duyn confirmed that the City currently waives building permit fees when solar improvements are propo:>ed. Staff also routinely requests that consultants provide alternatives for incentive bonuses four green building offsets. Mayor Pro Tem Matsumoto commented that the City is one of the few in the County to have its water treatment plant go cogen. She advised the Council that Assistant City Manager Van Duyn is Council's point person on green. IShe further opined that CCAG is innovative with respect to green living programs. As the Council's CCAG representative, she reviews the packet she received from the agency and disperses it to appropriate City staff for consideration. For example, she has provided CCAG hydrogen information to director of Public Works White, who has applied for a hydrogen car from the Ford Company. She advised that she could report on CCAG green living information at Council meetings. She further noted that the return on solar is about 30 years, thus long-term South San Francisco Companies should be encouraged to pursue solar options. Council continued discussion of members' goals for 2008 under Item 15, "other", as set forth below. SPECIAL REDEVELOPMENT AGENCY & CITY COUNCIL MEETING JANUARY 12, 2008 AGENDA PAGE 2 2. Redevelopment Discussion. Agency Director Nagel introduced the topic as an effort to develop a philosophical approach to Redevelopment. He noted the topic would likely come up as part of the upcoming study session on updates to the zoning code. He further noted that Counsel Susan Bloch of Meyers Nave was present and available to discuss the topic. Vice Chairwoman Matsumoto opined that South San Francisco's Redevelopment Program is consistent with Redevelopment Guidelines. However, she stressed the difficulty of making policy decisions based upon unclear rules. She further explained that prior to taking action on Redevelopment items at meetings, slie often poses questions in an effort to discern clarity with respect to the guidelines. She stated that much of her concern stems from when she was named as a Defendant in an eminent domain case in her official capacity. Counsel Mattas advised that the eminent domain case involved a Disposition and Development Agreement, pursuant to which the Agency agreed to help a developer assemble parcels of property in private ownership as part. of a master development plan. In the course of this project, the Agency used eminent domain to :purchase parcels at fair market value. Some property owners elected to counter-sue to challlenge the eminent domain action. This lawsuit was a consequence of the eminent domain action and even though the case was resolved, it was uncomfortable for the defendants. Counsel Mattas further explained that the Agency has an additional eminent domain power that allows assemblage of private property for re-use by private developers as part of a master plan that will benefit an overall Redevelopment Area. Tllis power has been the subject of ballot measures in California. Vice Chairwoman Matsumoto emphasized the difficulty in situations where properties are assembled pursuant to eminent dom~un powers and then turned over to private developers for the greater good of the City. Counsel Bloch advised that the powc;r of Redevelopment Agencies to use eminent domain to take private property has been on the books in California for many years and was confirmed by the United States Supreme Court in the ]Kew case. She emphasized that the powers are limited and specific procedures must be followed before such action is taken. Counsel Mattas advised that the laws pertaining to the eminent domain power have tightened and the Jarvis Initiative would eliminate the power to condemn private property for purposes of reconveying. Vice Chairwoman Matsumoto raised the issue of the PUC land in the Chestnut Avenue El Camino Real Area. Assistant Agency Director Van Duyn advised that the Agency has only exercised its eminent domain power to take private land acid turn it over for private development one time. I-{e further advised that he doesn't foresee the Agency using the power in the near future, although it could. With respect to the PUC/Chestnut Avenue/El Camino Real land area, he opined that the Agency SPECIAL REDEVELOPMENT AGENCY & CITY COUNCIL MEETING JANUARY 12, 2008 AGENDA PAGE 3 had positioned itself to create a specific plan for the area without eminent domain. He further advised that the area is covered under the General Plan and could include low-cost housing and other opportunities that would penni:t use of Redevelopment funds. Boardmember Addiego stated that if'there was a project in the downtown area that could potentially rehabilitate a whole City block with economic vibrancy or housing but for the exception of a hold-out, he would be; in favor of eminent domain. Boardmember Garbarino concurred as long as a specific plan was in place. Counsel Bloch presented the Boardmembers with a document that provided an overview of Redevelopment powers. Counsel Mattas advised Boardmemt~ers to read through the document at their leisure and suggested that a study session on the topic might be in order. He further advised that the Redevelopment Agency had the authority to set a vision for designated areas and to use Redevelopment powers to bring busiiness into the City and improve public infrastructure. Agency Director Nagel confirmed that Boardmembers believed a study session on Redevelopment powers and guidelines might be appropriate. Boardmember Mullin requested clarification of the two competing ballot measures on eminent domain. Counsel Bloch explained the Jarvis Initiative would sweep in restrictions on land use. The other measure would serve as a poison pills to the Jarvis initiative, restrict the ability to use eminent domain for single family homes and limit rent control. Counsel Mattas advised that both measures were qualified on the ballot for November 08'. Vice Chairwoman Matsumoto requested Counsel to advise on how the Agency could educate the public pertaining to the measures. Counsel Mattas advised that Boardrriembers were prohibited from using public funds to advocate against a specific position, but could entertain presentations explaining the measures in a neutral fashion. He further stated that Boardmembers could take public positions on the measures. 3. Regulatory Authority over New Uses under Existing Land Use Permits. City Manager Nagel explained that (:ity Attorney Mattas provided a memo to Council on this topic concerning Council's understanding of its powers and limitations with respect to regulating land use. City Attorney Mattas advised that the memo he submitted explained a recent California Supreme Court case, Hernandez v. City of Hanfor ("Hanfor"), that recognized Council's authority to zone the physical development and uses v~rithin a district for a particular result. He noted Hanfor's potential relevance to upcoming zoning amendment discussions. SPECIAL REDEVELOPMENT AGENCY & CITY COUNCIL MEETING JANUARY 12, 2008 AGENDA PAGE 4 Mayor Pro Tem Matsumoto opined that the Planning Commission would benefit from the information included in the memo. 1?or the benefit of Councilmembers, she further requested City Attorney Mattas to recount the `Val-Mart land use issue Council dealt with several years ago. City Attorney Mattas stated that the City Attorney's Office would provide the memo and relevant updates to the Planning Commission. He further explained that Wal-Mart lost a lawsuit it filed against the City challenging an urgency ordinance establishing a moratorium on approvals in the area for a short period of time during; which the City determined to permanently re-zone the property. Councilman Garbarino questioned whether Hanfor would govern the Airport Costco Geis Station situation. City Attorney Mattas advised that if Hanfor had existed when the Council set the land use designations for the Airport Costco (ias Station, it might have been in a stronger legal position to say no. Councilman Addiego requested consideration of zoning of the remaining Levitz site. Mayor Gonzalez questioned the City's authority to disallow 2 or 3 businesses of same name from opening in the City. City Attorney Mattas recommended that Council consider a study session if it wished to pursue specific discussions on the implications of its zoning authority under state law. This would permit staff to obtain a clear understanding of Council's policy direction. Staff could then propose policies to Counsel through the normal channels involving all the stake holders. He further advised that as part of this process, Council may hear arguments from building owners pertaining to the need to occupy their buildings. Councilman Mullin questioned whether the outcome of the upcoming zoning code review would necessitate a General Plan update. Assistant City Manager Van Duyn advised that the state recommends the General Plan be updated every 10 Years and the General Plan is currently 9 years old. The City will be updating its Housing Element, which it is required to do every 5 years and then will launch the General Plan update. He opined that he didn't foresee that changes to the General Plan would be inconsistent with zoning codes unless housing densities were changed substantially. He further advised that the current zoning ordinance update is aimed at bringing the code current with present development standards. He opined that there is not presently a disconnect between land uses established in the General Plan and the zoning codes. City Attorney Mattas advised that the zoning code is operable but fairly dated. He opined that the zoning code update should yield consistency with the 1999 General Plan and be flexible enough to encompass changes resulting from a General Plan update in the near future. SPECIAL REDEVELOPMENT AGENCY & CITY COUNCIL MEETING JANUARY 12, 2b08 AGENDA PAGES Mayor Pro Tem Matsumoto opined that housing densities will need to be increased in certain areas and height restrictions will need to be considered to achieve particular densities. She questioned whether this could be accomplished through amendments to the General Plan. Assistant City Manager Van Duyn opined that the current General Plan was not an impediment to Council. He noted that if Council liked a project that exceeded current densities in a specific zone, it could amend the General Plan and allow the project. He further explained that this option would be limited by the rule that a General Plan can only be amended 4 times a year in a general law city. 4. Campaign Sign Restrictions. City Manager Nagel introduced the topic and noted the City Attorney's Office provided a memo concerning current regulations pertaining to campaign signs. Mayor Pro Tem Matsumoto questior.~ed whether campaign signs and/or other County and State signs on the El Camino Real could be prohibited. Councilman Addiego questioned whether housing development signs directing traffic through town to a specific location could be prohibited. City Attorney Mattas advised that with respect to the posting of signs the Council could and has set times by which the signs must be removed under penalty of fine. Housing development related signs are illegal offsite commiercial signs that may be taken down and citations may be issued. Mayor Gonzalez opined that candidates need to advise their committee members to follow regulations when putting signs out. Councilman Addiego noted that in the past, signs posted on green space between the property and the streets were removed by the City, but this didn't seem to be done in recent elections. He further noted the importance of sign;; for introducing new candidates to the community. Councilman Mullin questioned whether Council could require signs to be made out of << specific material such as recycled paper. City Attorney Mattas advised that he; wasn't sure if a sign materials regulation had ever been tested. He opined, however, that Courts might be adverse to such a regulation that might impact a Candidate's ability to communicate his or her basic message. 5. Items from Council at City Council Meetings. Councilman Addiego opined that the; public would benefit from detailed descriptions of fewer items, as opposed to brief discussions of many items, under the Items from Council agenda topic at regular meetings of the City Council. SPECIAL REDEVELOPMENT AGENCY & CITY COUNCIL MEETING JANUARY 12, 2008 AGENDA PAGE 6 Mayor Pro Tem Matsumoto commented that it might be more useful if Council would announce upcoming events as opposed to listing events attended. She further noted that Councilmembers' reports out of committee assignments are significant. Councilman Garbarino noted that the: public appreciates hearing about events Councilmembers attended. He emphasized that detail pertaining to what comes out of committee and regional meetings is important. Mayor Gonzalez suggested that Councilmembers be mindful of agenda length when determining items for reporting. Councilman Mullin offered reporting; on items with policy implications as a guideline. He further suggested starting the regular RDA meeting at 6:30 p.m. and regular Council meetings at 7:00 p.m. City Attorney Mattas advised that thf; regular meeting time of the City Council must be adjusted by ordinance. He further explained a procedural mechanism requiring public hearing agenda items to be heard at a specific time during regular meetings in order to provide the community with temporal certainty. Mayor Pro Tem Matsumoto expressed concern that public hearings have a tendency to be long which could mean that other agenda items would get pushed late into the evening. City Attorney Mattas explained that if a long public hearing was anticipated, other significant items on the agenda could be moved ahead of the public hearings. Mayor Pro Tem Matsumoto and Councilman Garbarino requested that staff balance agenda items between the two regular monthly meetings of the City Council in a more even fashion. After discussion over the pros and cons of various suggestions, Council directed the City Attorney to prepare and propose an ordinance changing the regular meeting times of the Redevelopment Agency and the City Council to 6:30 and 7:00 p.m. respectively. Recess: 10:46 a.m. Meeting resumed: 10:52 a.m. 6. Public Comments at City Council Meetings. City Manager Nagel advised that staff had received requests from the public to make power point presentations under the public comments agenda item. He advised that staff would permit power point presentations limited to 3 mimrtes per speaker and only after the presentation had been reviewed by staff. Councilmembers agreed that power point presentations should be reviewed prior to airing. They further agreed that the meeting; Chair should be definitive and forceful in setting parameters on speaker time limits under the public comment agenda item. SPECIAL REDEVELOPMENT AGENCY & CITY COUNCIL MEETING JANUARY 12, 2008 AGENDA PAGE 7 City Attorney Mattas advised that the Chair must apply the time-limit policy consistently and uniformly with respect to all speakers. 7. Presentations at City Council Meetings. Councilman Addiego expressed concern over the Fire Department's holiday safety and toy drive presentation. He stated that the holiday safety video might have been more appropriate as a public safety message than as a presentation at the City Council meeting. He further expressed disappointment with the portion of the presentation that was given by North Peninsula Neighborhood Services. Mayor Pro Tem Matsumoto opined t11at North Peninsula Neighborhood Services' portion of the presentation was inappropriate. Councilman Garbarino echoed these concerns. Councilman Mullin stated that North Peninsula Neighborhood Services recognized the presentation was a misstep and was riandling the matter internally. Mayor Pro Tem Matsumoto suggested time limits on presentations should be considered. Councilmembers then directed staff t:o prepare and propose a policy establishing that the time allotted for the presentation item on regular City Council Meeting Agendas would be no more than 15 minutes. Council further directed staff to adjust the number of presentations per meeting based upon this overall time limit. 8. Requests for Information -Council/Candidates. City Manager Nagel requested direction from Council on incumbent candidates' requests to staff for information during election season. Mayor Pro Tem Matsumoto opined that for strategic reasons it would be unfair to share a candidate's request for information with other candidates. Councilman Addiego noted a distinction between incumbent candidates requesting information for their campaign(s) as opposed to information for Council business purposes. Councilman Mullin questioned whether other cities have policies pertaining to non-incumbent candidates' access to information versus incumbent candidates' access to information. City Attorney Mattas advised that he; was not aware of any such policies in other cities and noted the issue is probably handled informally. He further opined that the subject of candidate requests is almost always going to be public information because attorney client and personnel information is not disclosable. Thus,, Council could establish a policy directing distribution to all candidates of information responsive to an incumbent candidate's request. He acknowledged that there was a strategic campaign ~~rgument against such a policy. SPECIAL REDEVELOPMENT AGENCY & CITY COUNCIL MEETING JANUARY 12, 2008 AGENDA PAGE 8 Councilman Addiego asked for clarification on the following point: If an incumbent candidate received a questionnaire from an entity that was considering endorsing the candidate, would the incumbent candidate have the right to ask staff to fill out the questionnaire? City Attorney Mattas advised staff should not complete such a questionnaire. He further noted that just like any other candidate, the incumbent candidate could request existing information that would assist his or her ability to complete the form. However, any candidates' request for staff to further process or distill existing information to complete a campaign related form would be inappropriate. Mayor Pro Tem Matsumoto noted that she was not in favor of permitting candidates, including incumbent candidates, to request non.-existing staff- processed or distilled information after candidacies have been declared. She further opined that it would be unfair to distribute existing information responsive to any candidates' public records request to all other candidates. City Attorney Mattas clarified that pursuant to amendments to the Public Records Act that became effective 2 years ago, government agencies must tell people how to find requested information when aware it exists in a.n alternative form. For example, if a person came in and requested all reports relating to the City' Attorney's Office on blue paper, and the City employee knew the City possessed reports pertaining to the City Attorney's Office that happened to be on yellow paper, the employee was obli;;ated to guide the person towards this information. City Attorney Mattas confirmed agreement amongst Councilmembers that compliance with this Public Records Act requirement would not constitute distilling information. City Clerk Martinelli- Larson requested to speak through the chair and questioned how the contemplated policy would interplay with public records requests to the City Clerk's Office from candidates. City Attorney Mattas advised that any policy Council directed vis-a-vis City staff would not apply to the City Clerk's Office. City Manager Nagel noted that with :respect to staff's dealings with incumbent candidates, Public Records Act request decisions were more clear-cut than decisions with respect to day-tc--day requests received from incumbent Councilmembers during election time. Councilman Addiego opined that it is unfair for an incumbent candidate to request staff's assistance to distill information for use in the respective candidate's campaign. He noted that he perceived some unfairness with respect to this issue during the recent campaign season. Councilman Garbarino suggested a I>olicy that once an incumbent has declared his or her candidacy, information responsive tc- the incumbent candidate's requests to staff must be distributed to all candidates. Councilman Addiego concurred with this suggested policy at a minimum. City Attorney Mattas advised that disclosure of more information was always permissible. He suggested using the Public Records Act as the time frame within which staff must provide SPECIAL REDEVELOPMENT AGENCY & CITY COUNCIL MEETING JANUARY 12, 2008 AGENDA PAGE 9 information in response to campaign related requests from incumbent candidates. He further stated the exception to any policy established by Council would be for attorney/client or personnel related information. Councilman Addiego raised the issue of a single councilperson requesting information that could require a substantial amount of attorney or staff time without limitation. After discussion, Council directed staff to advise Councilmembers if it believed compliance with a particular request might take a significant amount of time so that Council could decide collectively whether the request merited the use of staff time. After further discussion on the issue of incumbent candidate requests, City Attorney Mattas summarized the proposed policies as follows: From the date of the close of the filing period for candidates through Election Day, responses to requests to staff from incumbent candidates will be distributed to all candidates. Further, staff should not create new information in response to candidate requests, unless Council approves the request during a meeting. He would memorialize this as a proposed amendment to the Council Handbook. 9. Council of Cities Appointments. City Manager Nagel suggested that Council begin consideration of Council of Cities appointments earlier in the year. Mayor Pro Tem Matsumoto expressed her frustration with the candidate selection process due to the difficulty of discussing candidates' qualifications on the Dias. She further noted the importance of alliance building when determining the candidate(s) Council would support. Councilman Addiego concurred. Given Council's discomfort with discussing candidates' qualifications from the Dias, Councilman Mullin questioned how Councilmembers could obtain the benefit of each other's institutional knowledge pertaining to respective candidates. City Manager Nagel suggested Council could discuss these items during a study session.. Councilman Addiego noted that he was comfortable deferring transportation-related candidate issues to Mayor Pro Tem Matsumoto's discretion. He further noted if any other Councilmembers had a specialty related to a respective; agency, he would defer to that members' judgment in the candidate selection process as well. Council concluded that a study session in late September on the subject of Council of Cities Elections would be appropriate. 10. Board & Commission Appointments. City Manager Nagel introduced the topic as a philosophical discussion pertaining to selection of the most qualified applicants for Bo~~rd and Commission positions. SPECIAL REDEVELOPMENT AGENCY & CITY COUNCIL MEETING JANUARY 12, 2008 AGENDA PAGE 10 Councilmembers expressed concern that in the past, some appointments may have been made on the basis of friendships as opposed to qualifications. Council further questioned its recourse upon being disappointed by a Board or Commission member's performance. City Attorney Mattas advised that Council could review and/or reconstitute a Board or Commission mid-term, but cautioned the public might perceive this as being very political. He further noted that with any decision of this sort, it is helpful to have established standards governing Commissioners' behavior. Mayor Pro Tem Matsumoto requested that the appointment process include more discussion of applicants' qualifications prior to the vote. Councilmembers agreed this was necessary. Further, the standard interview questions would continue to be asked, but Councilmembers could follow- up on an applicant's answers with additional questions if appropriate. Mayor Pro Tem Matsumoto next questioned the Mayor's plans for dealing with the recently reported absenteeism of Board and Commission members. City Clerk Martinelli-Larson explained that the absenteeism report recently submitted to Council included figures for the 3rd and 4th quarters that had not previously been reported to Council. City Manager Nagel confirmed that letters from the Mayor were being issued to Board or Commission members after two absences. But he noted that Council had to make a determination with respect to enforcc;ment of the absenteeism policy. (Cassette Tape No. 2) Council determined that after issuance of the letters, the Mayor would speak with affected Board and Commission members to discuss the circumstances surrounding the absenteeism. If the Mayor believed the circumstances warranted dismissal, he would bring the issue to Council for determination. Recess: 12:17 p.m. Meeting Resumed: 12:39 p.m. 11. City Council Mileage Reimbursement. City Manager Nagel introduced the 1:opic as a discussion pertinent to a flat monthly fee option for Council mileage reimbursement. Councilman Addiego opined that it 'was somewhat cumbersome to track mileage associated with. travel for Council activities and suggested a flat fee option as an alternative, but noted the taxability of a flat fee was undesirable. Councilmembers agreed. City Attorney Mattas advised Council could direct staff to prepare an amendment to the City Council Handbook establishing a policy whereby Councilmembers could elect a straight mileage SPECIAL REDEVELOPMENT AGENCY & CITY COUNCIL MEETING JANUARY 12, 2008 AGENDA PAGE 11 reimbursement option or a flat-fee option that would not exceed historical norms based upon an average of what has been claimed by SSF City Councilmembers in the past. Councilmembers noted that the policy requiring the City car to be used by Councilmembers whenever feasible would remain in tact. They determined, however, that the budget subcommittee might consider the option of purchasing a more fuel efficient car. 12. Departing Councilmembers Telecommunications Equipment, etc. Councilman Garbarino opined there should be an established check-out procedure when. a person leaves Council. City Manager Nagel advised that departing Councilmembers have had the opportunity to purchase their equipment, including t:he home computer and fax. Mayor Pro Tem Matsumoto stated that the equipment purchase option and all departure practices should be set forth in the Ciity Council Handbook. Councilmembers agreed. City Manager Nagel also proposed the question of whether business cards for retired Councilmembers would be appropriate or allowable. Council determined that such cards would be inappropriate. 13. City Council Office Supplies. City Manager Nagel suggested that (:ouncil office supply orders should be routed through the City Manager's Office for the purpose of obtaining discounts such as those affiliated with bulk orders. Councilmembers agreed. 14. Farmers' Market. Councilman Garbarino noted his admiration for the concept of a farmer's market but opined that the current farmer's market was not as successful as it could be due to lack of vendors. Mayor Pro Tem Matsumoto proposed that Council decide if it wanted to renew the farmer's market contract for one more year iri a new venue, such as the plaza by the BART station. Assistant City Manager Van Duyn advised that the BART plaza was designed for this type of use. Council directed staff to speak with BART and the Pacific Farmer's Market Exchange to determine if the venue was feasible. If this option was workable, Council would consider renewing the contract for another year. 15. Other- Council Priorities Revisited. SPECIAL REDEVELOPMENT AGENCY' & CITY COUNCIL MEETING JANUARY 12, 2008 AGENDA PAGE 12 Mayor Pro Tem Matsumoto identified the Sculpture Garden as a priority. She further included increased focus on Planning issues, including zoning updates and development of a vision of where South San Francisco is going as a City. She also sought Council's opinion with respect to resurrecting meetings of the North County Division of the Council of Cities, which Council approved of. Councilman Garbarino identified defining where South San Francisco is as a City with respect to the development process, particularly concerning Grand Avenue and the City's historica park, as a priority. He further prioritized increased consistency in the Planning Department's interactions with residents. Councilman Mullin stated downtown revitalization as a priority. He further included green building and partnerships between thf; City and the School District amongst his priorities. He articulated the additional priorities of intergovernmental advocacy vis-a vis state and federal government and utilization ofpre-existing state and federal relationships to benefit the C;ity fiscally. Councilman Addiego stated working with the School Board as a priority, including supporting mechanisms that might release City funds to benefit specific school programs. He stressed the importance of a first rate public school system to the viability of the community. He further stated the dream of re-installing a light electric rail system similar to the one which ran prior to the time the City was established. He explained the rail system could link the means of public transportation in the City, including the ferry terminal, the Caltrain station and BART and move through the Chestnut Avenue/El Camino Real area. Mayor Gonzalez advised he is planning Breakfast with the Mayor Sessions with small businesses in the Grand Avenue area in both Spanish and English. He also reported his intent to meet with members of churches in the community regarding their concerns. He stated priorities of stationing cameras in different parts of the City to capture issues related to crime, gangs and traffic. He also included anti-graffiti efforts in the area of Olive, Armor and Linden amongst his priorities. REDEVELOPMENT MEETING ADJOURNEMENT Being no further business, the Redevelopment Agency meeting was adjourned at 1:33 p.m. CITY COUNCIL CLOSED SESSION 16. Public Employee Performance Evaluation (Pursuant to Government Code Section 54957) Positions: City Manager and City Attorney Time entered into Closed Session: Time reconvened into Open Session: 1:33 p.m. 3:30 p.m., Councilmen Addiego, Garbarino and Mullin, Mayor Pro Tem Matsumoto and Mayor Gonzalez present. SPECIAL REDEVELOPMENT AGENCY & CITY COUNCIL MEETING JANUARY 12, 2008 AGENDA PAGE; 13 Report out of closed Session ley Mayor Gonzalez: No reportable action was taken. CITY COUNCIL MEETING ADJOL7RNMENT Being no further business, Mayor Gonzalez adjourned the meeting at 3:30 p.m. mitte by: .. _- ~6~. :a Martin li-Larson, ity Clerk of Soutl San Francisco k, Redevelopment Agency Approved: Pedro Gonzalez, Mayor City of South San Francisco Chairman, Redevelopment Agency SPECIAL REDEVELOPMENT AGENCY & CITY COUNCIL MEETING JANUARY 12, 2008 AGENDA PAGE; 14 s ~°°sx~~~~~~. 0 y J O c9LIFOR~1~ MINUTES ~~Fr~~ 1. Call to Order: CITY COUNCIL CITY OF SOUTH SAN FRANCISCO ;SPECIAL MEETING MUNICIPAL SERVICES BUILDING COMMUNITY ROOM 33 ARROYO DRIVE WEDNESDAY, JANUARY 16, 2008 6:43 p.m. (Cassette Tape No. 1) 2. Roll Call: Present: Councilmen Addiego, Garbarino, Mayor Pro Tem Matsumoto and Mayor Gonzalez. Absent: Councilman Mullin. *Councilman Mullin was excused due to participation in The League of California Cities Conference for Newly Elected Councilmembers in Sacramento. **Planning Commissioners Moore, Sim, Teglia and Zemke, Vice Chairwoman Giusti and Chairman Prouty were in attendance at the meeting. City Attorney Mattas advised that although the Planning Commission was identified on the City Council's Special Meeting Notice, the Planning Commission did not have its own separate notice. Based upon these circumstances, he opined that opening the Planning Commission's meeting would present a violation of the Brown Act. Accordingly, he advised the Planning Commission to refrain from opening its meeting and suggested that Council df;termine whether it wished to continue the meeting to a later date, or go forward with the meeting with members of the Planning Commission listening to the staff report from the audience and refraining from dialogue with Council. After discussion, Council determined to postpone the meeting and reconvene during a Joint Special Meeting of the Council and the Planning Commission which it scheduled for June 30, 2008 at 6:30 p.m. in the Community Room of the Municipal Services Building. 3. Public Comments. Item not heard due to meeting; postponement. 4. Joint Study Session with P1aruling Commission -Chestnut Avenue/PUC Specific Plan Item not heard due to meeting; postponement. 5. Adjournment. Being no further business, Chairman Gonzalez adjourned the meeting at 6:55 p.rn. Submitted b Approved: • ~ .... ~st Martinelli- arson, Clerk-! Pedro Gonzalez, Chairman City o th Sa Francisco City of South San Francisco SPECIAL CITY COUNCIL MEETING ~ JANUARY 16, 2008 MINUTES PAGE 2 HTH SA,y X50 _~"'~_`~~ - ;."~2 o F ~ U O ~- cgLl FORH~P MINUTES D12AFT i CALL TO ORDER TIME: CITY COUNCIL CITY OF SOUTH SAN FRANCISCO REGULAR MEETING WI~DNESDAY, JANUARY 23, 2008 MUNICIPAL SERVICE BUILDING COMMUNITY ROOM 7:30 p.m. ROLL CALL: Pre:;ent: Councilmen Addiego, Garbarino and Mullin, Mayor Pro Tem Matsumoto and Mayor Gonzalez. Absent: None. PLEDGE OF ALLEGIANCE: INVOCATION: PRESENTATIONS • Improving Public Places. Led by Mayor Gonzalez. Given by Rev. Dr. Gabriele Schroeder, Our Redeemer Lutheran Church. Director of Public Works White introduced members of the Improving Public Places Committee, Shane Luper and Judy Bush. Ms. Luper and Ms. Bush provided a visual presentation of landscaping needs in the City, and explained that the Committee is seeking volunteers to assist with landscape improvement projects. Most projects would require volunteers to visit a specific projf;ct site once a week to perform light gardening work. Volunteers must provide hand tools and transportation. Interested persons may contact the Parks Division at 650-829-3837. • Proclamation honoring former Planning Commissioner, Mrs. Judith Honan, for her dedicated service to the City of South San Francisco. Mayor Gonzalez presented Mrs. Honan with a proclamation detailing her contributions to the City during 11 years of service on the Planning Commission. Mayor Pro Tem Matsumoto thanked Mrs. Honan and noted that her attention to detail led to many fine projects being established in South San Francisco. Mrs. Honan thanked Council and former Councilman Fernekes for the opportunity to have served on the Planning Commission. She encouraged residents to get involved in the community and noted that persons with an open mind, open heart and love for our City can make a difference. AGENDA REVIEW No changes. PUBLIC COMMENTS None. ITEMS FROM COUNCIL • Announcements/ Committee Reports Councilmembers reported on attendance at community meetings and events, announced upcoming events, programs and public improvements and thanked staff for its response to Councilmembers' requests for infornation. Specific items for further action and/or consideration were set forth as follows: Councilman Mullin noted that Senate; Bill 624 now requires enforcement of the prohibition on tobacco sales to minors at both the state and local level. He requested that Chief of Police Raffaelli provide information summarizing prior state enforcement efforts in our community, and consider whether local enforcement and retention of fine revenues or an enforcement contract with the State Department o:F Health Services would best satisfy local enforcement obligations. Councilman Garbarino requested that appropriate procedures, including review by the Cultural Arts Commission and proposal to Council, be followed with respect to the placement of a piece of artwork created by the Public WoY•ks Department staff using old panels from the library. Councilman Addiego requested a coact breakdown from the Public Works Department pertaining to the aggressive clean-up of rubbish in the Downtown District that he opined had become an unofficial free garbage pick-up day fir residents of the district. Mayor Pro Tem Matsumoto requested a completion time and cost estimate for the spines and spurs portion of the Bay Trail improvements. She further questioned whether anything could be done regarding the state-installed pylons on the El Camino Real which she opined were ineffective and inconsistent with the ten guiding principles of the Grand Boulevard Initiative. She requested Field Representative Josh Laney from State Senator Leland Yee's Office, who was present, to follow-up on this issue as well as the issue of pot holes that had not been fixed on the El Camino Real. She suggestf:d that Public Works Director White consult with Field Representative Laney and consider submitting a letter regarding the potholes. Mayor Gonzalez noted that HEART ;presented the proposed joint powers agreement to its members at a meeting that day and hie requested that the City Attorney review the agreement. He further commented that he had reviewed letters from and/or talked with several Board and Commission members regarding absences. He noted the letters were from good members who would remain in service. He asked the City Manager to request Board and Commission chairpersons to read the absence policy at the yearly Reorganization of each respective Board or Commission. Mayor Gonzalez next requested Council's direction with respect to election of the President of the Peninsula Division of the California League of Cities, for which candidates came from South County this year. Council decided to support Councilmember Furtado of Campbell. Council further determined that all Councilmembers would attend the Peninsula Division of the REGULAR CITY COUNCIL MEETING JANUARY 23, 2008 AGENDA PAGE2 League of Cities meetings. It was fiarther stated that Councilman Garbarino would be attending BAY-BIO meetings. CONSENT CALENDAR 1. Motion to approve the minutes of January 9, 2008 as revised January 23, 2008. 2. Motion to confirm expense caaims of January 23, 2008 in the amount of $2,054,704.58. 3. Resolution # 10-2008 awarding Phase I of the replacement of four (4) playground structures in the Westborough Common Greens Area of Carter and Callan Neighborhoods, utilizing a Cooperative Purchasing Agreement on the County of Monterey's Bid. 2007-2008 CIP Project No. 51-13232-0824. Item Pulled from Consent Calendar by Councilman Garbarino. 4. Resolution # 11-2008 approving an amendment to the Employment Agreement with Barry M. Nagel for the positiion of City Manager and Executive Director of the Redevelopment Agency of tl-e City of South San Francisco. Resolution # 12-2008 authorizing the acceptance of California Library Literacy Services funding in the amount of $34,315 from the California State Library to support Project Read services and amending the Library Department's 2007/2008 operating budget. 6. Resolution # 13-2008 authorizing the acceptance of $25,000 in funding from the Woodlawn Foundation to support Learning Wheels, a program of Project Read, and amending the Library Department's 2007/2008 operating budget. 7. Motion to waive reading and adopt Ordinance # 1392-2008 (pending) of the City Council of the City of South San Francisco amending Section 20.40.070 of the South San Francisco Municipal Code to adopt regulations for signs and displays in the Genentech R & D Overlay District. Proclamations Issued -Victoria Morales Healy upon retirement from the City's Department of Public Works after over thirty two years of service, January 3, 2008. Item pulled from Consent Calendar by Mayor Pro Tem Matsumoto. Motion -Councilman Addiego/Second -Councilman Garbarino: to approve Consent Calendar Item Nos. 1, 2, 4, 5,, 6 and 7. Unanimously approved by voice vote. Item No.3: Councilman Garbarino noted that bids did not match estimates. Director of Public Works White explained he was pleasantly surprised that the Department was able to obtain a lower than anticipated bid. Motion -Councilman Garbarino/ Second -Councilman Addiego: to approve Resolution # 10-2008. Unanimously approved by voice vote. Kr:CiULAK CITY COUNCIL MEETING JANUARY 23, 2008 AGENDA PAGE3 Item No. 8: Mayor Pro Tem Matsurnoto recognized Mrs. Victoria Morales Healy for over 33 years of service as a City Empaoyee. Councilmembers acknowledged her contributions and noted the presence of many members of her Department. PUBLIC HEARING 9. Consideration of a Mitigated Negative Declaration for the Miller Avenue Parking Structure. (Recommendation is to continue off calendar). Public Hearing Opened 8:19 p.m. Associate Planner Smalley explained that staff recommended continuing the public hearing off calendar so that it could address issues raised during the Mitigated Negative Declaration circulation period. Attorney Peter Daniel representing the owners of the 321 Miller Avenue apartment structure noted agreement wiith staff's recommendation. Mr. Paul Spryer, owner of property located at 348 Grand Avenue and 333 Fourth Lane, expressed support for the proposed parking garage and opined that the structure would ease the parking problem in/~and may bring more patrons to the Downtown District. Mr. Spryer suggested installation. of a sidewalk on Fourth Lane to facilitate retail and office use. He closed by questioning the location of entry and exit points to the proposed parking garage. City Attorney Mattas advised that Chief Planner Kalkin could answer Mr. Shryer's questions outside the meetin;;. Prior to completion of the above set forth public comments, Councilman Addiego requested clarification from City Attorney Mattas as to whether public comments were procedurally appropriate given Council's potential action to continue the public hearing off calendar. City Attorney Mattas confirmed that even if Council decided to accept staff's recommendation by adoptin€; a motion to continue the hearing off calendar, it could listen to public comments on. the subject of the parking garage. Public Hearing Closed 8:24 p.m. Motion -Mayor Pro Tem N[atsumoto/Second -Councilman Garbarino: to continue the public hearing off calendar with direction to re-notice the public hearing when the Mitigated Negative Declaration came before Council again. Unanimously approved by voice vote. REGULAR CITY COUNCIL MEETING JANUARY 23, 2008 AGENDA PAGE 4 ADMINISTRATIVE BUSINESS 10. Resolution # 14-2008 awardling a contract for telephone PBX hardware, softw~ire and installation services to Timothy J. Kelso Communications in an amount not to exceed $250,000. Director of Information Technology Hollis provided an overview of the current City phone system and explained that an upgrade was necessary for the system to run more uniformly and efficiently. F[e further recommended that Council award the contract for telephone PBX hardware, software and installation services to Timothy J. Kelso Communications. He advisf;d that he expected the project would be finished a~1d the new phone service would be operable by June 30, 2008. Mayor Pro Tem Matsumoto questioned whether an engineer or bid estimate was completed. Director Hollis advised that $250,000 was estimated for this project pursuant to the CIP Budget. Motion -Mayor Pro Tem Ntatsumoto/Second -Councilman Garbarino: to approve Resolution # 14-2008 awarding a contract for telephone PBX hardware, software and installation services to Timothy J. Kelso Communications in an amount not to exceed $250,000. Unanimously approved by voice vote. COUNCIL COMMUNITY FORUM Mayor Pro Tem Matsumoto encouraged the public to attend a Special Joint Meeting of the South San Francisco City Council and Planning Commission on Wednesday, January 30, 2008. She noted that Dan Ionescu of DIAP' Companies would be presenting city and regional planning concepts and that Council and the Planning Commission would engage in discussion pertaining to the Chestnut Avenue/El Camino Real area. Mayor Gonzalez reminded citizens to vote in the upcoming Primary Election on February 5, 2008. He also reminded residents that the law requires car headlights to be turned on when windshield wipers are operating. CLOSED SESSION 11. Conference with Legal Counsel -Existing Litigation (Pursuant to Government Code section 54956.9(a).) Moberg v. City of South San Francisco et al, Zimmerman et al v. City of South San Francisco et al, Pacific Bell v. South San Francisco et al, Salazar et al v. Schwarzenneger et al, Republic Indemnity v. South San Francisco, Gonzalez v. South San Francisco, Halteh v. South San Francisco et al, Palos v. State of California et al, South San Francisco v. Bakshi et al. Time entered into Closed Session: Time reconvened into Open ;>ession: 8:34 p.m. 9:45 p.m., Councilmen Addiego, Garbarino and Mullin, Mayor Pro Tem Matsumoto and Mayor Gonzalez present. x~~uLAx C:11 Y COUNCIL MEETING AGENDA JANUARY 23, 2008 PAGE 5 Report out of Closed Sessior.~ by Mayor Gonzalez: Direction was given and no reportable action was taken. ADJOURNMENT Being no further business, Mayor Gonzalez adjourned the meeting at 9:46 p.m. Su Martin i-Larson, City Cler '- f Sout an Francisco Approved: Pedro Gonzalez, Mayor City of South San Francisco REGULAR CITY COUNCIL MEETING AGENDA JANUARY 23, 2008 PAGE 6 Agenda Item #2 I certify that the demands set forth on this payment register are accurate and funds are available for payment.* DATED : Z % ~/f> ~ ~ FINA3 CE DIRECT Checks: *Note: Items below do not include payroll related payments Date Amount 01/23/08 $ 386,441.50 01/30/08 932,622.07 02/06/08 1,451,591.15 Electronic Payments: Date 01/28/08 Amount To Description 4,000.00 Neopost Citywide Postage Meter Replenishment Total Payments $ 2,774,654./1 This is to certify that the above bills were confirmed at the regular council meeting held Februar}° 13, 2008. 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F '.~ H a H Q H q H H H H O ~~.J H H `J "J ~ a' H .h- q H O ~~ W [~ U U U a W a; U n U Uj U Ul U U U U H r•C U U r-C v] FC N U W a1 O x o W m m H O Ol O O N ~ ~ m ct' d' H ~ [t' H C H H N lp O H N ~D O m O O O N r H N U1 r lO m m l0 to O to lO d' O m H m N H l0 m H ~ H M O H O O O d' N O d' lD Ol N ~D N N M H d' O (+1 M O r lfl O N O M O G lp N ul W lf1 O ~ U1 ~O M N m m (+1 lfl d' d~ N Lfl H l0 M H O H H N O ~D N O m M r m l0 O ~ M ~ ~ r~ ~~ H ,~ ~n N m M r ~ N ~ in M r U U w z o w w o z z H z a z z H H to H U H U £ H a~ x H ,F2Ca U z m F pa, Z rL F F q O H ?~ z F O a s a q a a m a a x x a w U rx U [z w a a U z co ~~ o~ o w o 0 0~ o~ o~ a z o F ~ o ~ o H `~ F a F w H a F a F a F H cn a W F z a F W U U a z W W fx H W FC W W W F z C9 W H W 2 H .7 rL H x o x a a a z rx o x o x o H o x x~ o x H a a H z x ,7 F R: ,7 FC ~C 'J O 'J F 'J F '.7 ~ a' ~' F W `J F U ^.4 W H O O v7 v] 0.l q W Iq U U W H W ~ f-0 '.7 P7 O W a' 'J E R'1 ,7 W R: O H Ul H x~ w a ~ a F x~ rx ~ x F m w~ w rx a ~~ rx w ~d z F w rx ~ w~ x W w~ rt ~ FC ~ p m a ~ FL r w~ a 2 w ~C U U F q U W O `.4 U z U F U H U ~ P F x U a .7 F x U W ~C W '~ x a c~ [~ F FC [k a a >+ a' U H O [z rj N O H a W r.C W O cn ~ m a~ F m O W O W F W o w cn U a O a~ w a U F H H a @ - ~l x ~ fx W U U] w a m w£~ a w z w a w a w a m g a F w z H rx w q~ r w u a H '-l H O .-7 U q a H i-7 H a H i-7 H U .7 H H a .~J f/] H q '.7 rl ~ H ~ R: o~~ o E x~ o w o~ o a o W ~, q~ x o~ H~ a o g w o w w U F N N N N N N N N N N N N N N N N N N N N N N N N N N ul ~ 1D O O H O O O O O O O O O O O O O O O O O O O O O O O O O O l0 ~D 1D ~ N N M M M M M M M M M M M M M M M M M f+l M M M M M M ~'1 M M M M M M M d' [T d' d' d' d' ~' d' d' C' d~ d' d' d' d' d' d' d' d' d' d' d' d' Y d~ d' d' [T cM C' d' d' O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O i~ H H ri H H H rl H H H H rV H H H H H H H H H H H H rl H H H H H H O~ G~ Ol Ol Ol Ql Ol Ol 61 Q~ Ol Ol 01 Q1 Q~ Q1 01 01 Ol Ol Q~ Q~ Ol Ol 61 T O~ Ql 0~ Ol d' d' c a~ a~ ~ a ~r c <r d~ d' ~ w a' ~ ~ c ~ ~ ~ a~ c w ~ c a' c a a a a r r H ~-~ ~ ,~ .-+ H ~ H ,~ ,-a .-+ ,~ ~ H H H .-~ ~ ~ H ~ '-+ ~ H ~ H ,~ ~ ,~ ,~ 0 0 ~ io ~o io ~o ~ ~ ~n io ~o ~o ~ io io ~o ~o io io ~ m ~ ~ io ~ ~~ ~ ~ io ~ ~ r r r r r r r r r r r r r r r r r r c~ r r r r r r ~ r r r r r r W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W U U C7 U U C7 ;~ i7 U C7 c7 U Ci U U U` L C~ U U' U` U U U C7 C7 C7 U C~ U U U a~~~ a~ a a a a a~ a~~~~~ a z a a~ a a a a a a a~ ~a x rL rx a cK rx rx cX cti a a x x W- cx ~ c, a ~ ~ ~ ~ a Q ~ ~ ~ ~ ~ ~ ~ ~ Q a C ~ ~' ~ ~ ~ ~ a t a ~ x a c~ ~ c~ cv o o c~ c~ o cv c~ co c~ c~ o c~ ~ o c~ c~ c~ o o c~ o c7 c~ o c~ c~ m can :~ r r >+ ~~ >a N~ r r r r r r r r~ r >. ~ r r v r r r >+ ~ ~. z z F F F F F F F F F F F F F F F F F F F N F F F F F F F F F F H H U U U :J U U U U CJ V U U U U U U U U U :J U U U U U U V J U U W G, W W ~~ ~ W m H ~ ~ G W U Q U ~ CL ~ ~ x U I m to to .7 H O H Q C7 O U H U z a a w ~a 0 Cu O F H U h a a w a h z W E w m a q H Q H L1' W 3 0 c N O z o H I F I a H I U w Q W U H I O z H . H z o I w z a 0 a z ra 7 a w w z N z 0 U U I R,' ~ W E ~ I ¢' U O ~. p~ I Q O W c4 M C` to 5~~~x~ SANS o H ~ J O c9LIFOR~1~ taff e ort AGENDA ITEM # 3 DATE: February 13, 2008 TO: The Honorable Mayor and City Council FROM: Terry White, Director of Public Works SUBJECT: REPLACEMENT OF Pv1ETAL GUARDRAIL ON HICKEYBOULEVAIZD AND SOUTH SPRUCE AVI?NUE, PROJECT NO.51-13231-0804 RECOMMENDATION: It is recommended that the City Council, by motion, accept the replacement of the metal beam guardrail on Hickey Boulevard and South Spruce Avenue as complete in accordance with the plans and specifications. BACKGROUND/DISCUSSION This project removed the old single beam guardrail and installed new double beam guardrail along the south side of Hickey Boulevard from approximately 200 feet west of Hilton Avenue to 320 feet east of Hilton Avenue toward Camaritas Avenue. Similarly, the project also removed old guardrail and installed new guardrail in front of Orowheat and in the vicinity of Francisco Terrace 1?ark. The new guardrail has allowed Francisco Terrace Park, which had been closed for several months to be reopened. The project has been inspected by City staff and is completed in accordance with Caltrans :plans and specifications. Acceptance of the project will provide authorization for staff to file a Notice of Completion and to release the payment performance bond. FUNDING: The construction was completed at a total cost of $58,657.00 (awarded amount of $55,760.00 plus $2,897.00 for extra guardrail primarily in the vicinity of Francisco Terrace Park). Funding for this project in the amount of $65,000.00 is included in the 2007-2008 Capital Improvement. Program (CIP/51-13 231-0804). CONCLUSION: Replacement of the existing single beam guardrail has improved the aesthetics of Hickey Ioulevard by having all the guardrail of identical style and the entire guardrail conforms to Caltrans' standards. Replacement of the guardrail on South Spruce has corrected the existing safety hazard., allowed Francisco Terrace Park to reopen, and it also conforms to Caltrans' standards. Staff Report Subject: Replacement of Metal Guardrail on Hickey Boulevard and South Spruce Ave. Project No. 51-13231-0804 Page 2 By: _. Terry White Director of lic Works . f.'~ Approved: '' Barry M. Nagel City Manager rth/tw/db: s:staffreports/twhite/guardrailhickey DATE: February 13, 2008 TO: Honorable Mayor and Cite Council FROM: Steven T. Mattas, City Attorney By: Cynthia H. Wang, As sistant City Attorney SUBJECT: A RESOLUTION AMENDING THE FOLLOWING SECTIONS OF THE CITY COUNCIL HANDBOOK: (1) PAGE 4, RELATED TO STAFF ASSISTANCE TO THE CITY COUNCIL; (2) APPENDIX 5, MODIFYING THE POLICY REGARDING COUNCILMEMBER USE OF CITY- PROVIDED TELECOMMUNICATIONS EQUIPMENT; AND (3) PAGE 13, RESTRICTING PRESENTATION TIMES AT CITY COUNCIL MEETINGS. RECOMMENDATION: It is recommended that the City Council adopt the attached resolution approving amendments to the following sections of the City Council Handbook: (1) Page 4, related to staff assistance during election season; (2) Appendix 5, modifying the Policy Regarding Councilmember Use of City-Provided Telecommunications Equipment; and (3) Page 13, restricting presentation times at City Council meetings. BACKGROUND/DISCUSSION: At the City Council Retreat on January 12, 2008, the City Council requested that staff prepare a series of amendments to the City Council Handbook. The changes requested include: A new policy which prohibits staiFf, absent City Council approval, from creating documents or compiling or distilling information at the request of any candidate for elected city office, including a sitting elected official., during the time period between the close of the candidate filing period and the related electiion. Councilmembers and other elected city officials may continue to request information ~~hich requires the creation of new documents or compilation distillation of facts or data if the request for such data is presented to the City Council and approved by the City Council. An amendment to the Policy Regarding Councilmember Use of City-Provided Telecommunications Equipment, allowing Councilmembers to purchase City-provided telecommunications surplus equipment upon leaving office. This policy would appYy to equipment which is at the end of the normal usage period for such equipment. Equipment which is not at the end of the normal usage period would be required to be returned to the City. The price for property purchased shalll be determined using standard market valuation processes for personal property, including EBa;y. To: Honorable Mayor and City Council Date: February 13, 2007 Re: Resolution Amending Page 4, Appendix 5, and Page 13 of the City Council Handbook • Anew restriction on time for presentations at City Council meetings, limiting the total time for all presentations to fifteen minutes per meeting. This section applies to presentations that normally occur at the beginning of~ the meeting and does not apply to presentations as part of noticed public hearings and other administrative or legislative items on the City Council agenda. • An amendment to the City Council Expense Reimbursement Policy allowing the option for a monthly flat-rate vehicle allowance based on actual and necessary historical use patterns of Councilmembers. If a Councilmelnber chooses to collect aflat-rate allowance for vehicle use, the allowance is taxable. The previous option of submitting reimbursement reports documenting mileage and receiving IRS-rate mileage reimbursement also remains available. With regards to the final item, pursuant to Albright v. City of South San Francisco, 146 Cal.App.3d 171 (1983), flat-rate monthly reimbursement f-ayments must be supplemented with detail necess<~ry to show that the actual expenditures were incurred and that such expenditures were reimbursable under California law. It is therefore necessary fir the City to have a record of the pattern of reimbursable vehicle expenditures. At this time, there is not enough empirical data on which to base the allowance. The Finance Department received vehicle usage expense reports from only two Councilmembers over the last 18 months. Staff recommends thalt Councilmembers submit vehicle use expense reports under the current Expense Reimbursement Policy for six months in order to establish a more accurate record of authorized vehicle use. After such time, staff recommends reconsideration of the specific amount that may be authorized for automobile reimbursement expenses. The proposed amendments to the City Council Handbook are attached as Exhibit A, with added text underlined, and deletions in strikethrough. The proposed amendment to Appendix 5 of the City Council Handbook is attached as Exhibit B. By: Steven T. Mattas, City Attorney Attachments: Resolution Exhibits A and B Barry wagel, City Manag 1054571 RESOLUTION NO. CITY COUNCIL, CITY OF SGUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AMENDING THE FOLLOWING SECTIONS OF THE CITY COUNCIL HANDBOOK: (1) PAGE 4, RELATED T'O STAFF ASSISTANCE TO THE CITY COUNCIL; (2) APPENDIX 5, MODIFYING THE POLICY REGARDING COL;fNCILMEMBER USE OF CITY- PROVIDEDTELECOMMUNICATIONS EQUIPMENT; AND (3) PAGE 13, RESTRICTING PRESENTATION TIMES AT CITY COUNCIL MEETINGS. WHEREAS, on January 12, 2008, the City Council directed staff to prepare amendments to the City Council Handbook regarding; staff assistance to the City Council during election periods, Councilmember use of City-provided telecommunications equipment, and restrictions on presentation times at City Council meetings. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco hereby authorizes amendments to Pages 4 and 13, and Appendix 5 of the City Council Handbook, attached as Exhibits A anal B to this Resolution. 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 13`h day of February, 2008 by the following votf;: AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk 1051496 EXHIBIT A Proposed Amendlments to the City Council Handbook (added text underlined; a°'°*°a *°°* ~ °*ri'~°~~,,.,,,,^''): 1. Amendments to the Staff Assistance section of page 4 read as follows: Staff Assistance In order to effectively discharge the responsibilities of elected office, councilmembers are entitled to receive assistance from city employees. It is also recognized that under the Council/Manager form of government, the City Manager has the responsibility of day-to-day affairs of the city, consistent with established council policy. councilmembers are not permitted to direct the activities of city staff. A staff member provides routine, easily retrievable information to a requesting councilmember as expeditiously as possible. Complaints dealing with administrative matters should be directed to the City Manager for appropriate follow-up. councilmembers serving on intergovernmental bodies receive the assistance of staff assigned by the City Manager. The primary responsibility of assigned staff is to review issues before the intergovernmental body as they may affect the city and advise and assist the councilmember in presenting issues. Requests for assistance for speech and correspondence preparation should be made through the City Manager. Secretarial assistance is made available for the preparation of written materials. Each member of the Council is given equal consideration. However, since it is the Mayor's responsibility to correspond with persons and organizations on behalf of the City, the correspondence work of the Mayor is given priority. Correspondence to political organizations or persons in support of pursuit of political office is not to be prepared using city resources. During the time period between the close of the candidate filing period and the related election, staff shall not, except as provided herein in re~onse to a reguest for information from a_ candidate for elective city office incluciin ag sitting elected official compile or distill information in response to request for information. During the time period between the close of the candidate filing_period and the related election, councilmembers and other elected city officials maw continue to reguest information that reguires the creation of new documents or distillation of data if the request for such data is presented to and approved by the Council. During the time ep riod between the close of the candidate filing period and the related election any public information provided to a candidate for an elected city office shall be provided to all candidates for that office. Responses to a Councilmember's request for information shall distributed to all councilmembers. 2. Anew section added to the Conduct of Meeting section, between the subsections for "Introduction of Items After 11:00 p.m." and "Councilmember Participation" on page 13 shall read as follows: Presentations The total amount of time for all presentations shall not exceed fifteen minutes per meetin . ios1626~1 EXHIBIT B Proposed Amendments to Appendix 5 of the Council Handbook (added text underlined; deleted text in st~ilc€;thretrgl~): CITY COUNCIL POLICY REGARDING COUNCILMEMBER USE OF CITY PROVIDED TELECOMMUNICATIONS EQUIPMENT (aPPElvDix 5). Subsection G. shall be added to Section 2, "Usage Policy for Telecommunications Equipment" and shall read as follows: G. Upon leavins7 office a councilmember shall have the option of_ purchasing surplus City-provided telecommunications equipment at market value. The value of the equipment. should be determined by standard market evaluation processes for personal propf;rty which include searches on online auction sites such as EBay and identification c-f South San Francisco book value. All non-surplus City_ provided equipment shall bf; returned to the City. Equipment shall be considered "surplus" when at the end o:F the normal usage period. 1051626x1 0 n ~. J O c9LIFOR~1~ Staff R ort AGENDA ITEM # S DATE: February 13, 2008 TO: Honorable Mayor anti City Council FROM: Marty Van Duyn, Assistant City Manager SUBJECT: LOAN AGREEMENT WITH HABITAT FOR HUMANITY FOR PROJECT AT 440 COMMERCIAL AVENUE RECOMMENDATION It is recommended that the City Council adopt a resolution finding that the forgivable construction loan of $33,780 to Peninsula Habitat for Humanity for the project at 440 Commercial Avenue will benefit the ]Project Area by providing affordable housing. BACKGROUND/DISCUSSION In December of 2001 the Redevelopment Agency acquired the property at 440 Commercial Avenue to develop affordable housing. In purchasing the site, the Agency's intent was to adv<~nce the production of new residential units affordable to low- and moderate-income working families and meet the Association of Bay Area Governments (ABAG) and the California State Department of Housing and Community Development (HCD) affordable housing allocation requirements. In 2005, the Agency entered into a Development and Disposition Agreement (DDA) to develop a for-sale housing project affordable to of°ry low-income working families. The project consists of four affordable single family detached homes on a 50 ft. by 140 ft. rectangular parcel. All four of the homes will be sold to families with annual incomes below 50% of median income and. will be subject to 55-year affordability restrictions (see Exhibit 1). Each home is 1,356 sq. ft., with three bedrooms, two baths, and atwo-car tandem garage. When the Redevelopment Agency Board approved the DDA, it also agreed to provide a forgivable construction loan of $33,780 (see Exhibit 2). Since the project is nearing completion, Peninsula Habitat for Humanity has requested the funds which the Agency will provide on a reimbursement basis to pay for construction work not performed by volunteers. It should be noted that Peninsula Habitat for Humanity leveraged the Agency's land subsidy and construction loan with a $250,000 loan from the San Mateo County HOME Consortium, state and federal grants totaling $68,000, private construction financing and the sweat equity of the future owners helping to construct their homes. Staff Report Subject: Loan Agreement with Peninsula Habitat for Humanity Page 2 At the start of construction phase, Peninsula Habitat for Humanity selected the four families that will purchase the homes. The families have been working for more than a year building their homes. A dedication celebration will be held on February 29, 2008, the same day the four farriilies will purchase their homes and move in. Staff will provide the City Council more information on the event as it becomes available. FUNDING The Redevelopment Agency will provide the forgivable construction loan of $33,780 to Peninsula Habitat for Humanity using Redevelopment Agency Housing Set-Aside funds. CONCLUSION Staff recommends the City Council adopt the attached Resolution finding that the forgivable construction loan of $33,780 to Peninsula Habitat for Humanity for the project at 440 Commercial Avenue will benefit the Project Area by providing affordable housing. By: , Marty Van Duyn Assistant City M Approve ` C- arry M. Na el City Manager Attachment: Resolution Loan Agreement Exhibit 1: Resale Restriction and Right of First Refusal Agreement Exhibit 2: 2005 Resolutiion No. 15-2005 BMN::MVD: AFS RESOLUTION NO CITY COUNCIL,, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION ADOPTING FINDINGS IN CONNECTION WITH THE REDEVELOPMENT AGENCY OF T]EIE CITY OF SOUTH SAN FRANCISCO'S PROPOSED LOAN TO PENINSULA HABITAT FOR HUMANITY FROM THE AGENCY'S LOW AND MODERATE INCOME HOUSING FUND 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. (the "CRL"), and pursuant to the authority granted thereunder, has the responsibility to carry out the Redevelopment Plan ("Redevelopment Plan") for the I)owntown/Central Redevelopment Project Area ("Project Area "); and WHEREAS, in 2005, the Age:ncy authorized by resolution No. 15-2005 (i) execution of a Disposition and Development Agreement with Peninsula Habitat for Humanity, a California nonprofit public benefit corporation ("Developer"), pursuant to which Agency agreed io transfer that certain real property located near the Project Area at 440 Commercial Avenue in South San Francisco (the "Property") to Developer for the development on the Property of four (4) single family homes affordable to very low-income households (the "Project"); and (ii) provision of a loan to Developer in the principal amount of $33,780 (the "Loan") to defray the costs of constructing the Project; and WHEREAS, the Agency and Developer have since negotiated a Loan Agreement and a Promissory Note; and WHEREAS, the Loan will be funded with monies from the Agency's Low and Moderate Income Housing Fund ("Housing Fund"); and WHEREAS, pursuant to Section 33334.2 of the CRL, the Agency may use Housing Fund monies outside of the Project Area I~rovided that the Agency Board and the City Council find that the use will be of benefit to the Project Area; and WHEREAS, the use of Housing Fund monies to defray the construction costs of the Project will be of benefit to the Project Area because the Project will provide affordablf; housing to very low-income households. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that it hereby finds that the Agency's Loan to Developer to defray the costs of 1047049.1 constructing the Project will benefit the Project Area because the Project will provide affordable housing to very low-income households. I hereby certify that the fore-going Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a meeting held on the 13th day of February, 2008 by the following vote;: AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk 1047049.1 LOAN AGREEMENT This Loan Agreement (this "Agreement") is entered into effective as of , 2008 ("Effective Date") by and betwe;en the Redevelopment Agency of the City of Sough San Francisco, a public body, corporate anal politic (the "Agency") and Peninsula Habitat for Humanity, a California nonprofit public benefit corporation (the "Borrower"}. Agency and Borrower are hereinafter collectively referred to as the "Parties." RECITALS A. Agency and Borrower exe<uted a Disposition and Development Agreement (t:he "DDA") dated as of Apri120, 2006 pursuant to which (i) Agency conveyed to Borrower that certain real property located near the I)owntown/Central Redevelopment Project Area (":Project Area") at 440 Commercial Avenue in South San Francisco, California (the "Property"); and (ii) Borrower agreed to construct on the Property four (4) single family homes (the "Projeef") affordable to households whose annual gross income does not exceed 50% of the area median income for San Mateo County ("Very Low-Income Household"), adjusted for household size, as published in Section 6932 of Title 25 of the California Code of Regulations or successor provision. B. Borrower has requested, ar.~d Agency has agreed to provide, a loan (the "Loan") pursuant to the terms and conditions set forth herein for the purpose of financing a portion of the construction costs for the Project. C. The proceeds of the Loan ("Loan Proceeds") will be disbursed from the Agency's Low- and Moderate-Income Housing Set-Aside Fund (the "Fund") established pursuant to the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.), and the use of the Loan Proceeds pursuant to this Agreement will serve the purposes of the Fund by increasing the City's supply of afforda~.ble low- and moderate-income housing. D. The Agency has determined that provision of the Loan pursuant to the terms of this Agreement will be of benefit to the Project Area because the Project will provide affordable housing. NOW THEREFORE, in consideration of their mutual undertakings and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows. 1. THE LOAN AND DISBURSEMl~;NT OF LOAN PROCEEDS. 1.1. Loan. Agency agrees to loan to Borrower, and Borrower agrees to borrow from Agency, a sum in the principal amount of Thirty-Three Thousand Seven Hundred-Eighty Dollars ($33,780) (the "Loan") upon the term;> and conditions and for the purposes set forth in this Agreement. The Loan shall be evidenced by a promissory note dated as of the Effective Date and executed by Borrower substantially in the form attached hereto as Exhibit A (the "Note"). 1042275.1 Provided that Borrower has complied with all conditions set forth in Section 1.5, the Loan Proceeds shall be disbursed in accordance with Section 1.4 hereof. 1.2. Interest; Maturity Date• Forgiveness. Provided that Borrower is not in default under the terms of this Agreement, the Note or the DDA, no interest shall accrue on the Loan. The; outstanding principal balance of the Loan and any other sums due under the Promissory Note shall be payable in full on the fifteenth (15th) anniversary of the Effective Date unless the Loan is forgiven pursuant to the terms of this Agreement. Provided that Borrower is not in default under this Agreement, the Note, or the DDA, the Agency shall forgive the outstanding b~~lance of the Loan upon the sale of the four (4) single-family homes comprising the Project to Very Low- Income Households and the recordation of a Resale Restriction and Right of First Refusal Agreement ("Resale Restriction Agreement") against each such home. 1.3. Use of Loan Proceeds. The Loan Proceeds shall be used solely and exclusively t:o defray construction costs for the Project. 1.4. Disbursement of Proceeds. Upon satisfaction of the conditions set forth in Section 1.5, provided that Borrower has provided .Agency copies of third-party invoices, evidence of Borrower's payment for services rendered in connection with the Project, and such other documentation as Agency may reasonably require, the Agency shall promptly disburse Loan Proceeds to Borrower. 1.5. Conditions Precedent to Disbursement of Funds. Agency's obligation to disburse the Loan Proceeds is conditioned upon satisfaction of all of the following conditions: a. Bonower's execution and delivery to the Agency of this Agreement and the Note; b. Borrower's delivery to the Agency of each of the following: (i) certified resolution indicating that Borrower has authorized this transaction and that the persons executing this .Agreement on Borrower's behalf have been duly authorized to do so ands (ii) certified copies of Borrower's articles of incorporation, bylaws, and I.R.S. tax-exemption determination letter. c. Borrower's sale of the :four (4) single family homes comprising the Project to Very Low-Income Households a11d the recordation of a Resale Restriction Agreement against eac]'~ such home. 1.6. No Obligation to Disburse Proceeds Upon Default. Not;vithstanding any other provision of this Agreement, the Agency shall have no obligation to disburse any portion of the Loan Proceeds to Borrower following: a. The failure of any of Borrower's representations and warranties set forth in this Agreement to be true and correct in all material respects. b. Termination of this Agreement by mutual written agreement of the Parties. 1042275.1 2 c. The occurrence of an ]Event of Default under this Agreement, the Note or the DDA. 2. NON-DISCRIMINATION. 2.l .Non-Discrimination. Borrower covenants by and for itself and its successors and assigns that there shall be no discrimination against or segregation of a person or of a group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code in the; sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Project or the Property, nor shall Borrower or any person claiming; under or through Borrower establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the Project. 2.2. Mandatory Language in All Subsequent Deeds Leases and Contracts. All deeds, leases or contracts made or entered into by E~orrower, its successors or assigns, as to any portion of the Property or the Project shall contain therein the following language: (a) In Deeds: "Grantee herein covenants by and for itself, its successors and assigns that there shall be no discrimination against or segregation of a person or of a group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Govermment Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 129:15, and Section 12955.2 of the Government Code i.n the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the property herein conveyed nor shall the grantee or any person claiming under or through the grantee establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendf;es in the property herein conveyed. The foregoing covenant shall run with the land." (b) In Leases: "The lessee herein covenants b;y and for the lessee and lessee's heirs, personal representatives and assigns and. all persons claiming under the lessee or through the lessee that this lease is made subject to the condition that there shall be no discrimination against or segregation of any person or of a group of persons on account of any b~~sis listed in subdivision (a) or (d} of Section 12955 of the Government Code, as those; bases are defined in Sections 12926, 12926.1, subdivision (m) aild paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the land herein le-ased nor shall the lessee or any person claiming under or through the lessee establish o:r permit any such practice or practices of discrimination or segregation with reference to the 1042275.1 selection, location, number, u:>e or occupancy of tenants, lessees, sublessees, subtenants, or vendees in the Iand herein leased:" (c) In Contracts: "There shall be no discrimination against or segregation of any person or group of persons on account of any ba:>is listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the property nor shall the transferee or any person claiming under or through the transferee establish or permit any such practice or practices of discrimination or segregation with reference i:o the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the land." 3. ADDITIONAL COVENANTS REPRESEN'T'ATIONS AND WARRANTIES OF BORROWER. 3.1. Representations. Borrower ~°epresents and warrants to the Agency as follows: a. Organization of the Borrower. Borrower is a duly organized nonprofit public benefit corporation, validly existing and in good standing under the laws of the State of California. Borrower has all requisite power and authority to develop the Project, to carry on its business as now conducted, and to execute, deliver and perform its obligation;; under this Agreement and the Note. Borrower has received a determination from the Internal Revenue Service that it is exempt from federal tax under Section 501(c)(3) of the Internal Revenue Code oi" 1986 as amended. b. Authorization of the Loan; No Violation. The execution, delivery and performance of this A€;reement and the Note have been duly authorized by Borrower, and this Agreement and the Note, when duly executed and delivered will constitute the valid and binding obligations of Borrower enforceable in accordance with their respective terms. Borrower's execution of this Agreement and the Note and performance thereunder will not result in a breach of or constitute a default under any agreement, indenture or other instrument to which Borrower is a party or by which Borrower maybe bound. c. Litigation. There are no pending or to Borrower's knowledge, threatened actions or proceedings before any court or administrative agency which may adv.°rsely affect the financial condition or operation of Borrower or its ability to carry out the obligations of Borrower under this Agreement and the Note. Borrower is not the subject of an action. under federal or state Bankruptcy Law (as defined below). 3.2. Indemnification. Borrower shall indemnify, defend (with counsel approved by the Agency), and hold Agency and the City of South San Francisco ("City") and their respective 1042275.1 4 elected and appointed officers, officials, employees, contractors, agents and representatives (all of the foregoing, collectively the "Indemnitees") harmless from and against any and all liabilities, losses, damages, fines, deficiencies, penalties, claims, demands, suits, actions, causes of action, legal or administrative proceedings, judgments, costs and expenses (including without limitation reasonable attorneys' fees grid court costs) (all of the foregoing, collectively "Claims") arising directly or indirectlly in any manner in connection with or resulting from (a) any and all predevelopment, development or construction activities conducted in connection with the Property or the Project, including without limitation, site investigations conducted by or for Borrower, (b) any failure of any of Borrower's representations or warranties set fortl-i in this Agreement, or made by Borrower in connection with the execution and delivery of this Agreement or in any certificate furnished pursuant hereto, or in comnection with any request for disbuursement of Loan Proceeds to be correct in all material respects, (c) any claim, demand or cause of action, or any action or other proceeding, whether meritorious or not, brought or asserted against any Indemnitee which relates to or arises in connection with the Loan or any transaction contemplated thereby. Borrower's obligations under this Section shall survive the making and repayment of the Loan and the expiration or termination of this Agreement. Borrower's indemnity obligations shall not apply to Claims arising solely as a result of the willful misconduct or gross negligence of the: Indemnitees. 3.3. Books and Records. The Al;ency shall have the right, during business hours acid after reasonable notice to Borrower, to inspect and copy Borrower's boolcs and records pertaining to the Property, the Project and the Loan. Agency shall maintain the copies of Borrower's books and records in strict confidence except to the extent required to be disclosed by applicable law. 4. DEFAULT AND REMEDIES. 4.1. Events of Default. The occurrence of any one or snore of the following events shall constitute an event of default hereunder ("Event of Default"): a. Unless the Loan is forgiven pursuant to the terms of this Agreement, Borrower fails to pay when due 'the principal payable under the Note, and such failure continues for thirty (3rD) days after Agency notifies Borrower thereof in writing. b. Any of Borrower's representations or warranties contained in this Agreelment, or made by Borrower in connection with the execution and delivery of this Agreement or in any certificate furnished pursuant hereto, or in connection with any request for disbursement of Loan Proceeds shall prove to have been incorrect when made in any ma~~terial respect. c. Borrower fails to use Loan Proceeds in accordance with this Agreement or fails to use Loan Proceeds in accordance with Borrower's request for disbursement. d. Pursuant to or within the meaning of the United States Bankruptcy Code or any other federal or state law relating to insoi~°ency or relief of debtors ("Bankruptcy Law"), Borrower (i) commences a voluntary case or proceeding; (ii) consents to the entry of an order for relief against Borrower in an involuntary case; (:iii) 1042275.1 5 consents to the appointment of a trustee, receiver, assignee, liquidator or similar official for Borrower; (iv) makes an assignment for the benefit of its creditors; or (v) admits in writing its inability to pay its debts as they become due. e. A court of competent jiurisdiction enters an order or decree under any Bankruptcy Law that (i) is for retie:f against Borrower in an involuntary case, (ii) appoints a trustee, receiver, assignee, liquidator or similar official for Borrower or substantially all of such entity's assets, (iii) orders the liquidation of Borrower, or (iv) issues or levies a judgment, writ, warrant of attachment or similar process against the Property or the Project, and in each case the order or decree is, not released, vacated, dismissed or fully bonded within 60 days after its issuance. £ Borrower fails to mair.~tain insurance as required pursuant to the DDA, and Borrower fails to cure such default within 10 days. g. Borrower defaults in tl':~e performance of any ternz, provision, covenant or agreement contained in this Agreement other than an obligation enumerated in this Section 4.1, and unless a shorter cure period is specified for such def~.ult, the default continues for thirty (30) days after the date upon which Agency shall have given written notice oi.'the default to Borrower, provided that in the case of a nonmonetary default that is not susceptible of cure within thirty (30) days, an Event of Default shall not arise hereunder if Borrower commences to cure the default within thirty (30) days and thereafter prosecutes the curing of such default to completion with dua diligence and in good faith, but in no event longer than 120 days from the receipt of notice of default. 4.2. Remedies. Upon the occurrence of an Event of Default, the Agency shall have the following rights, in addition to any other rights and remedies provided bylaw: (a} The Agency may declare the entire outstanding principal balance of the Loan immediately due and payable; (b) The Agency may seek an order of specific performance; and (c) The Agency may terininatc~ this Agreement. Each of the remedies provided herein is cumulative and not exclusive of, and shall not prejudice any other remedy provided herein, or yin the Note, or under law or in equity. The Agency may exercise any rights and remedies available under applicable law, in addition to, and not in lieu of, any rights and remedies expressly gra~ited in this Agreement. 5. MISCELLANEOUS. 5.1. A si~nment. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns. Notwithstanding the foregoing, Agency's obligation to make the Loan is personal to Borrower, and shall not be assignable by operation of 1042275.1 6 law or otherwise absent the ~xpress v~mitten consent of Agency, and any such prohibited assignment by operation of law or otl~~erwise shall be void. 5.2. Notices. Except as otherwise specified herein, all notices to be sent pursuant to this Agreement shall be made in writing, a.nd 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: a. personal delivery, in vvhich case notice is effective upon delivery; b. 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; c. 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; d. 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-class or certified mail or by overnight delivery, or (b) a transmis~;ion 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 nonbusiness d.ay. AGENCY: Redevelopment Agency of the City of South San Francisco 400 Grand Avenue South San Francisco, CA 94080 Attention: Executive Director BORROWER: Peninsula Habitat for Humanity 690 Broadway Street Redwood City, CA 94063 Attention: President 5.3. Waiver, Modification and Amendment. No failure or delay on the part of the Agency in exercising any right, power, or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power, or remedy preclude any other or further exercise thereof or the exercise of any other right, power, or remedy hereunder. No modification or waiver of any provision of this Agreement, nor any consent to any departure by Borrower therefrom, shall in any event be effective unless the same shall be in writing, and then such waiver or consent shall be effective only in the specific instance and for the specific purf>ose for which given. No notice to or demand on the Borrower in any case shall entitle the Borrower to 1042275.1 .~ any other or further notice or demand in similar or other circumstances unless expressly ;provided herein or by law. No amendment to or modification of this Agreement shall be effective unless and until such amendment or modification is in writing, properly approved in accordance; with applicable procedures, and executed by the Parties. 5.4. Further Assurances. The Parties shall execute, acknowledge and deliver to the other such other documents and instruments, and take such other actions, as either shall reasonably request as may be necessary to carry out the intent of this Agreement. 5.5. Parties Not Co-Venturers. Nothing in this Agreement is intended to or shall establish the Parties as partners, co-venturers, o~r principal and agent with one another. 5.6. Action by the Agency. Excf;pt as maybe otherwise specifically provided herein, whenever any approval, notice, direction, consent or request by the Agency is required or permitted under this Agreement, such action shall be in writing, and such action maybe given, made or taken by the Executive Director or by any person who shall have been designated by the Executive Director, without further approval by the Agency's governing board unless the Executive Director determines in his or her discretion that such action requires such approval. 5.7. Non-Liability of A~enc~and Agency Officials, Employees and Agents. No member, official, employee or agent of the Agency shall be personally liable to Borrower, or any successor in interest, in the event of a,~y default or breach by the Agency, or for any amount of money which may become due to Borrower or its successor or for any obligation of Agency under this Agreement. 5.8. No Third Party Beneficiaries. There shall be no third party beneficiaries to this Agreement. 5.9. Captions; Construction. Thf: headings of the sections and paragraphs of this Agreement have been inserted for convenience only and shall not be used to construe this Agreement. The language of this Agreement shall be construed as a whole according to its fair meaning and not strictly for or against any Party. Time is of the essence in the performance of this Agreement. 5.10. Governing Law; Venue. This Agreement shall be construed and enforced in accordance with the laws of the State of California without regard to principles of conflicts of law. The Parties consent to the jurisdiction of any federal or state court in the jurisdiction in which the Property is located (the "Property Jurisdiction"). Borrower agrees that any controversy arising under or in relation to this Agreement shall be litigated exclusively in courts having jurisdiction in the Property Jurisdiction. Borrower irrevocably consents to service, jurisdiction, and venue of such courts for any such litigation and waives any other venue: to which it might be entitled by virtue of domicile, habitual residence or otherwise. 5.1 1. Attorneys' Fees. In the evem'. any legal action is commenced to interpret or to enforce the terms of this Agreement or to collect damages as a result of any breach thereof, the Party prevailing in any such action shall be entitled to recover against the other Party all reasonable attorneys' fees and costs incurred in such action. 1042275.1 g Exhibit A FORM[ OF PROMISSORY NOTE $33,780 South San Francisco, California ,2008 FOR VALUE RECEIVED, thf, undersigned Peninsula Habitat for Humanity, a California nonprofit public benefit corporation ("'Maker"), hereby promises to pay to the order of the Redevelopment Agency of the City of South San Francisco, a public body, corporate and politic ("Holder" or "Agency"), the principal sum of Thirty-Three Thousand Seven Hundred Eighty Dollars ($33,780) (the "Loan") or such lesser amount as is actually disbursed to Maker by Holder. This Promissory Note (this "Note") has been executed and delivered pursuant to and in accordance with a Loan Agreement e~:ecuted by and between Maker and Agency dated a.s of 2008 (the "Loan Agreement"), and is subject to the terms and conditions of the Loan Agreement, which is by this reference incorporated herein and made a part hereof. Capitalized terms used but not defined herein shall have the meaning ascribed to such terms in the Loan Agreement. 1. Payments 1.1 Maturity Date; :[nterest; For iveness. Unless the Loan is forgiven pursuant to the terms of the Loan Agreement and thi:> Note, the entire principal balance outstanding under this Note shall be due and payable in full on the fifteenth (15th) anniversary of the date first written above ("Maturity Date"). Provided i~at Maker is not in default under the Loan Agreement or the DDA, no payment is due on the: outstanding principal balance of the Loan and no interest shall accrue on the outstanding principal balance of the Loan. Provided that Maker is not in default under the terms of the Loan Agreement or the DDA, the Agency s]Zall forgive the outstanding balance of the Loan upon the sale of the four (4) single-family homes comprising the Project to Very Low-Income Households and the recordation of a Resale Restriction Agreement against each such home. 1.2 Manner of Payrnent. All payments under this Note shall be paid in currency of the United States of America, which at the time of payment is lawful'. for the payment of public and private debts. All payments shall be made payable to Holder and mailed or delivered to Holder's office at 400 Grand Avenue, South San Francisco, California 94080, or to such other place as Holder of this Note may from time to time designate. 1043134.1 2. Events of Default; Remedies. (a) An event of default ("Event of Default") permitting Holder to declare all sums payable hereunder immediately due anal payable, and to exercise all remedies available to Holder pursuant to this Note and the Loan Agreement, shall arise upon the occurrence of any of the following: (1) Unless the Loan is forgiven pursuant to the Loan Agreement and this Note, Maker fails to pay in full any payment required under this Note when due which continues for more than thirty (30) days after Holder's delivery of a written notice to Maker that such payment is due; (2) An event of default arises under the DDA or the Loan Agreement and remains uncured beyond any applicable cure period; (3) Pursuant to or within the meaning of the United States Bankruptcy Code or any other federal or state law :relating to insolvency or relief of debtors ("Bankruptcy Law"), Maker shall (i) commence a voluntary case or proceeding; (ii) consent to the entr;;~ of an order for relief against it in an involuntary case; (iii) consent to the appointment of a trustee, receiver, assignee, liquidator or similar official; (iv) make an assignment for the benefit of its creditors; or (v) admit in writing its inability to pay its debts as they become due. (4) A court of competent jurisdiction enters an order or decree under any Bankruptcy Law that (i) is for relief against Maker in an involuntary case, (ii) appoints a trustee, receiver, assignee, liquidator or similar official for Maker or substantially all of Maker's ~~ssets, or (iii) orders the liquidation of Maker, and in each case the order or decree is not dismis:;ed within 60 days. (b) Remedies. Upon the occurrence of an Event of Default hereunder, Agency may, at its option (i) by written notice to Maker, declare the entire unpaid principal balance of this Note immediately due and payable regardless of any prior forbearance, (ii) exercise any and all rights and remedies available to it under applicable law, and (iii) exercise any and all rights and remedies available to Agency pursuant to this Note or the Loan Agreement. Maker shal]'. pay all reasonable costs and expenses incurred by or on behalf of Agency including, without limitation, reasonable attorneys' fees, incurred in connection with Agency's enforcement of this Not~° and the exercise of any or all of its rights and remedies hereunder. 3. Miscellaneous Provisions. (a) Waivers; Amendment. The rights and remedies of Agency under this Note shall be cumulative and not alternative. No waiver by Agency of any right or remedy under tl:~is Note shall be effective unless in a writing signed by Agency. Neither the failure nor any delay in exercising any right, power or privilege under this Note will operate as a waiver of such right, power or privilege, and no single or partial exercise of any such right, power or privilege by Agency will preclude any other or furlher exercise of such right, power or privilege or the exercise of any other right, power or privilege. No notice to or demand on Maker will be; 1043134.1 2 deemed to be a waiver of any obligation of Maker or of the right of Agency to take further action without notice or demand as provided in this Note. Maker hereby waives presentment, demand, protest, notices of dishonor and of protest and all defenses and pleas on the grounds of any extension or extensions of the time of payment or of any due date under this Note, in whale or in part, whether before or after maturity and with or without notice. There shall be no amendment to or modification of this Note except by written instrument executed by Maker and Agency. (b) Notices. All notices to Holder or Maker shall be given in the manner and at the addresses set forth in Section 5.2 of the Loan Agreement, or to such addresses as Holder and Maker may hereafter designate in accordance with said Loan Agreement. (c) Attorne s' Fees. In the event of litigation arising from the enforcement of or a default under this Note, the non-prevailing party shall pay all reasonable costs and expenses, including reasonable attorneys' fees, uicun•ed by the prevailing party in such litigation. (d) Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of California without regard to principles of conflicts of laws. (e) Time is of the Essence. The times for the performance of any obligations hereunder shall be strictly construed, time being of the essence. (f) Severability. If any provision of this Note shall be held by a court of competent jurisdiction to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions hereof shall not :in any way be affected or impaired thereby. MAKER: Peninsula Habitat for Humanity, a California nonprofit public benefit corporation By: Its: 1043134.1 3 Exhibit 1 Form of Resale Restriction and Right of First Refusal Agreement Recording requested by and when recorded mail to: Redevelopment Agency of the City of South San Francisco 400 Grand Avenue South San Francisco, CA 94080 Attention: Executive Director EXEMPT FROM RECORDING FEES PER GOVERNMENT CODE §§6103, 27383 Space above this line for Recorder's use. RESALE RESTRICTION AGREEMENT AND OPTION TO PURCHASE NOTICE: THERE ARE RESTRICTIONS ON THE SALE OF THE PROPERTY YOUARE BUYING. EXCEPT 1{ OR A TRANSFER TO THE REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO OR PENINSULA HABITAT FOR HU1I~IANITY FOLLOWING EXERCISE OF THEIR RESPECTIVE OPTION TO PURCHASE, THE PROPERTY MAY ONLY BE SOLD TO AN ELIGIBLE HOUSEHOLD AT A PRICE NOT TO EXCEED THE ADJUSTED RESALE PRICE WHICH IS CAPPED AT AN AFFORDABLE HOUSING COST. ALZ, IMPROVEMENTS TO THE PROPERTY AND ALL LOANS SECURED B]? THE PROPERTY REQUIRE PRIOR WRITTEN APPROVAL FROM TH.E REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO. This Resale Restriction Agreement and Option to Purchase ("Agreement") is entered into as of this , 2008 (thee "Effective Date"), by and between the Redevelopment Agency of the City of South San Francisco ("Agency") and ("Ownex•"). Agency and Owner are collectively referred to hereinafter as the "Parties." RECITALS A. Owner intends to purchase the property located at in the City of South San Francisco and more particularly described in Exhibit A attached hereto and incorporated herein by reference (the "Property"). B. The Property was constructed pursuant to a Disposition and Development Agreement ("DOA") dated as of , 2005 by and between the Agency and Peninsula Habit<~t for Humanity, a California nonprofit pub]iic benefit corporation (the "Developer"). Pursuant to the DOA, the Developer agreed to sell the Property to Very Low- Income households (as defined below). C. Developer and Owner have entere;d, or will enter, into a Grant of Option to Repurchase and Resale Restriction Agreement ("Developer Resale Agreement") which restricts the resale price of the Property and grants the Developer an option to purchase the Property at a restricted price ("Developer Option"). 1048251.2 D. In consideration of the Developer's agreement to sell the Property to the Owner at a;price below the fair market value of the Property, the Owner has agreed to execute and comply with this Agreement. E. The purpose of this Agreement is to place occupancy and resale controls on the Property in consideration of the economic benefits to the Owner resulting from purchase of the Property at a below market price. This Agreement restricts the resale price of the Property and specifies, among other requirements, that the Property may only be transferred to Eligible Households. This Agreement also provides the Agc;ncy an option to purchase the Property at a restricted price, subject to the Developer Option. NOW THEREFORE, in consideration of the benefits received by the Owner and the Agency hereunder, Owner and Agency agree as follows: 1. Definitions. The following terms shall have the meanings set forth in this Section. Additional terms are defined in the Recitals and text of this Agreement. (a) "Adjusted Resale Price" is defined in Section 15. (b) "Affordable Housing Cost" shall have the meaning ascribed to such term in California Health and Safety Code Section 50052.5 or successor provision and the regulations promulgated pursuant thereto. (c) "Area Median Income" or "AMI" means the area median income for San Mateo County, California, adjusted for household size, published periodically by the Califonua Department of Housing and Community Development ("HCD") in Section 6932 of Title 25 of the California Code of Regulations or successor provision published pursuant to California Health and Safety Code Section 50093(c). If HCD ceases to make such determination, Area Median Income shall be the median income applicable to San Mateo County, with adjustments for household size, as determined from time to time by the U.S. Department of Housing and Urban Development ("HUD") pursuant to the United States Housing Act of 1937 as amended, or such other method of median income c;aleulation applicable to the City of South San Francisco that HUD may hereafter adopt in connection with such Act. (d) "Agency Option" is defined in Section 8. (e) "Base Resale Price" is defined in Section 15. (f) "Developer Option" is, defined in Recital C. (g) "Eligible Household" :is defined in Section 7. (h) "Gross Income" shall ]:rave the meaning ascribed to such term in Section 6914 of Title 25 of the California Code of Regulations or any successor thereto. 104825.2 2 (i) "Notice of Intent to Transfer" is defined in Section 10. (j) "Principal Residence''' means the place where a person resides on a substantially full-time basis during not less than terc (10) months per year. (k) "Term" means a period of fifty-five (55) years from the Effective Date. (1) "Transfer" as defined in Section 6. (m) "Very Low-Income" means Gross Income that does not exceed 50% of A.MI. 2. Principal Residence Requirement. The Owner covenants and agrees that Owner shall occupy the Property as the Owne=r's Principal Residence throughout the period of time that Owner owns the Property, and shall not rent or lease the Property or portion thereof during the Term of this Agreement. Upon request of the Agency made from time to time, Owner shall provide a written certification to the Agency, in form provided by the Agency, that Owner is occupying the Property as Owner's Principal Residence and that Owner is not renting or leasing the Property to another parry, and shall provide such documents and other evidence as A€;ency may reasonably request to verify compliance with this Section. During the Term of this Agreement, successor owners of the Property shall be obligated to use the Property as successor's Principal Residence for the duration of successor's ownership. 3. Affordability Restrictions. Owner, by and for itself and any successors in interest, hereby covenants and agrees that the Property shall be sold only to Eligible Households (defined in Section 7 below) at a price not to e~:ceed the Adjusted Resale Price (as defined in Section 15 and that during the Term of this Agree=ment all of the requirements and restrictions of this Agreement shall apply. 4. Maintenance. a. The Owner shall maintain the Property, including landscaping, in good repair and in a neat, clean and orderly condition (and, as to landscaping, in a healthy condition) and in accordance with all applicable laws, rules, ordinances, orders and regulations of all federal, state, county, municipal, and other governmental agencies and bodies having or c=laiming jurisdiction and all their respective departments, bureaus, and officials. Owner shall not commit waste or permit deterioration of the Property, and shall make all repairs and replacement; necessary to keep the Property in good condition and repair. Failure by the Owner to maintain the Property shall constitute a default under this Agreement for which the Agency may exercise the remedies provided to Agency hereunder, including without limitation, the Agency Option to purchase the Property pursuant to Section 8 below. b. In the event that: the Owner breaches any of the covenants containe=d in this Section 4 and such default continuces for a period often (10) days after written notice from the Agency with respect to graffiti, debris, waste material, and general maintenance or thirty (30) days after written notice from the Agency with respect to landscaping and building improvements, then in addition to any other remedy Agency may have at law or in equity, 104825.2 Agency shall have the right to enter the Property and perform or cause to be performed aLl such acts and work necessary to cure the default. Pursuant to such right of entry, the Agency shall be permitted (but is not required) to enter the Property and perform all acts and work necessary to protect, maintain, and preserve the im~aroveinents and landscaped areas, and to attach a lien on the Property, or to assess the Property;, in the amount of the expenditures arising from such acts and work of protection, maintenance, .and preservation by the Agency and/or costs of such cure, which amount shall be promptly paid lby the Owner to the Agency, plus an administrative; charge equal to fifteen percent (15%) of the cost of such work upon demand. 5. Insurance. The Owner shall maintain a standard all risk property insurance policy equal to the replacement value of the Property (adjusted every five (5) years by appraisal, if requested by Agency) naming the Agency and its elected and appointed officers, official:;, employees, representatives and agents as additional insureds. The Owner shall provide the Agency with evidence of required insurance coverage upon Agency's request. 6. Transfer. a. Rest~•ictions on Transfer. Except as provided in Section 6(b), throughout the Term of this Agreement, the Prope-rty may only be sold or otherwise conveyed to Eligible Households at a price not to exceed the Adjusted Resale Price defined in Section 15 below. There shall be no Transfer of the Property without the Agency's certification that the transferee is an Eligible Household and that the Property is being transferred at a price not to exceed the Adjusted Resale Price. "Transfer" means any sale, assignment or transfer, voluntary or involuntary, of any interest in the Property, including, but not limited to, a fee simple interest, a joint tenancy interest, a life estate, a leasehold interest, an interest evidenced by a land contract by which possession of the Property is transferred and Owner retains title, or a deed of trust. Any Transfer without satisfaction of the provisions of this Agreement is prohibited and shall constitute a default by Owner for which the Agency may exercise any of the remedies provided herein, including without limitation, tY:ie exercise of the Agency Option pursuant to Section 8 below. b. Permitted Transfers. Provided that the transferee assumes, within 30 days following written request by the Agency, all of Owner's duties and obligations under this Agreement pursuant to a written assumption agreement in a form acceptable to Agency, or at Agency's election, execution of an agreement substantially similar to this Agreement, the: following transfers ("Permitted Transfers") of title to the Property or of any estate or interest therein, shall not be subject to the Agenncy's prior approval, shall not trigger the exercise of the Agency Option, and shall not be considered Option Events: (i) a transfer to Developer pursuant to the Developer Resale Restriction Agreement (ii) a transfer to an existing spouse or domestic partner; (iii) a transfer by an Owner to a spouse or domestic partner where the spouse or domestic partner becomes the co-owner of the Property; (iv) acourt-ordered transfer of title to a spouse as part of a divorce or dissolution proceeding; (v) a transfer to an existing spouse ~or domestic partner of Owner or to Owner's issue by devise or inheritance following the death of Owner; or (vi) a transfer by Owner into an inter vivos trust in which the Owner is a beneficiary and the Owner continues to occupy the: property as his/her Principal Residence. For purposes of this section, "domestic partner" shall rriean two unmarried people, at least eighteen (18) years of 104825.2 4 age, who have lived together continuously for at least one (1) year and who are jointly responsible for basic living expenses incurred during their domestic partnership. Domestic partners may not be persons related to each other by blood or adoption such that their marriage would be barred in the state of California. For purposes of this section, an individual shall be considered a domestic partner of Owne:r upon presentation of an affidavit or other acceptable evidence by Owner to the Agency. c. Inheritance. In the event a Transfer occurs by devise or inheritance; due to death of the Owner, the administrator of the Owner's estate or the person inheriting the Property shall provide written notice to the Agency of the Owner's death within thirty (30) days of the date of death and the following procedures shall apply: (i) If the person inheriting the Property (the "Inheriting Owner") is the child or stepchild of the deceased C)wner (an "Inheriting Child"), he or she shall proti-ide the Agency with documentation that he or she is the child or stepchild of the deceased Owner and with income information, to be verifiec! by the Agency, so that the Agency may determine: if the Inheriting Child is an Eligible Household. If the Inheriting Child fails to provide required. documentation of his or her relationship to the Owner, or financial information, he or she shall be deemed not to qualify as an Inheriting Child andlor Eligible Household, as applicable. If the Inheriting Child qualifies as an Eligible; Household, he or she shall succeed to the Owner';> interest and obligations under this Agreement and new documents shall be executed between the Inheriting Owner and the Agency and recorded against the Property. If the Inheriting Child fails to qualify as an Eligible Household, he or she shall be required to Transfer the Property to an Eligible Household at a price not exceeding the Adjusted Resale Price, pursuant to the procedures set forth in Section 10 below and the Agency may exercise the Agency Option pursuant to Section 8 below; provided, however that the Inheriting Child may own and occupy the Property for up to a maximum of twelve (12) months provided that the Inheriting Child remains in compliance with the requirements of this Agreement. The Inheriting Child shall not be required to occupy the Property during such twelve (12)-month time period, but shall riot rent the Property. (ii) If the Inl:~eriting Owner is not the child or stepchild of the deceased Owner, except as permitted pursuant to Section 6(a), the Inheriting Owner shall Transfer 1.he Property to an Eligible Household at a price not exceeding the Adjusted Resale Price, pursuant to the procedures set forth in Section 10 below and the Agency may exercise the Agency Option pursuant to Section 8 below. In this event, the Inheriting Owner shall provide the Agency with a Notice of Intent to Transfer within sixty (60) days of the date of death of the Owner. (iii) Failure of an Inheriting Owner to follow the procedures and file the notices described in this Section 6 shall constitute a default under this Agreement and the Agency may then exercise any of the remedies set forth in Section 22 below, including, ~~ithout limitation, exercise of the Agency Option. 7. Eligible Household. A prospective purchaser shall qualify as an "Eligible Household" if he or she meets the following requirements as determined by the Agency: 104825.2 5 (i) The prospective purchaser shall certify that he or she will occupy the Property as his or her Principal Residence throughout his or her ownership; and (ii) The Gross Income for all members of the prospective purcl:iaser's household shall not exceed Very Low- Income. 8. Grant of Agency Option to Purchase; Assignment of Option. Owner hereby grants to the Agency an option ("Agency Option") to purchase the Property at the Adjusted Resale Price upon the occurrence of ari Option Event subject to the terms and conditions contained herein. For so long as the Developer Resale Agreement is in effect, the Agency Option shall be subordinate to the Developer Option, and Agency may only exercise the Agency Option if Developer elects not to exercise the Developer Option. The Agency may assign the Agency Option to another government. entity, anon-profit affordable housing provider or an Eligible Household. The Agency's assignment of the Agency Option shall not extend an;y time limits contained herein with respect to the exercise period of the Agency Option or the period within which the Property must be purchased following exercise of the Agency Option. In no event shall Agency becorne in any way liable to Owner, nor become obligated in any manner, by reason of the assignment of the Agency Option, nor shall Agency be in ally way obligated or liable to Owner for any failure of Agency's assignee to consummate a purchase of the premises or to comply with the terms of any purchase and sale agreement. 9. Events Giving Rise to :E~i~ht to Exercise Option. Agency shall have the right to exercise the Agency Option upon the occurrence of any of the following events (each, an "Option Event"): a. Receipt of a Notice of Intent to Transfer (defined in Section 10 below); b. Any actual, attempted or pending Transfer of the Property or of arty estate or interest therein, except as provided in Section 6(b); c. Any actual, attempted or pending encumbrance of the Property, including without limitation by way of mortgage or deed of trust, or by judgment, mechanics, tax or other lien, except as provided in Section 19 below; d. Recordation of .a notice of default and/or notice of sale pursuant to California Civil Code section 2924 (or successor provisions) under any deed of trust or mortgage with a power of sale encum~.bering the Property; e. Commencement of a judicial foreclosure proceeding regarding the Property or execution by Owner of any deed in lieu of foreclosure transferring ownership of the Property; £ The occurrence of an Event of Default as described in Section 21; or g. Any violation 1>y Owner of any provision of this Agreement. 104825.2 10. Notice of Intent to Transfer; Exercise of Option. a. Notice of Intent. to Transfer. If Owner desires to Transfer the Property or of any estate or interest therein, Owner shall notify Agency in writing to that effect (the "'Notice of Intent to Transfer"). The Notice of Intent to Transfer shall state the street address o:Fthe Property; Owner's full name or names; the address and telephone number at which Ownf;r shall be contacted if not at the Property; anti shall be delivered personally or deposited in the United States mail, postage prepaid, certified••return receipt requested, addressed to the Redevelopment Agency of the City of South San Francisco, 400 Grand Avenue, South San Francisco, CA 94080, Attn: Executive Director. The: Notice of Intent to Transfer shall be in substantially the form attached hereto as Exhibit B. In the case of a proposed sale of the Property to a prospective purchaser, the Owner shall submit to the Agency, together with the Notice of Intent to Transfer, a copy of the prospective purchaser's income certification, a list of all assets owned by the prospective purchaser, and other financial information reasonably requested by Agency, in a foi7n approved by the Agency, along with the income certification to be provided to any lender making a loan to the prospective purchaser. The Agency may require the prospective purchaser to provide documentation evidencing and supporting the income and other financial information contained in the certifications. b. Notice of Exercise. Upon the occurrence of any Option Event, thE; Agency may exercise the Agency Option by delivering notice ("Notice of Exercise") to Owner of its intent to exercise such Agency Option pursuant to the terms of this Agreement. Tle Notice of Exercise may be in the forme attached hereto and incorporated herein as Exhibit C, or ul such other form as the Agency may from time to time adopt. The Notice of Exercise shall be delivered by deposit in the United States mail, postage prepaid, first-class, addressed to Owner at the Property, or at such other address as maybe indicated on the Notice of Intent to Transfer, and delivery shall be deemed effectivE: five (5) calendar days following the date of deposit. If the Option Event relates to the potentiial foreclosure of a mortgage under Sections 9(d) or e then the Agency shall also deliver the Notice of Exercise to the mortgagee or beneficiary under such mortgage, at such mortgagee's or beneficiary's address of record in the Office of the Recorder of San Mateo County. c. Notice of Conn°nt to Transfer. If the Agency decides not to exercise the Agency Option, the Agency may give: its consent to the occurrence of the Option Event ("Consent to Transfer"). If the Option Event involves a proposed sale of the Property to a prospective purchaser, the Agency's consent shall be conditioned upon (i) the proposed purchaser's qualification as an Eligible Household; (ii) the sale of the Property at a price not to exceed the Adjusted Resale Price; (iii:) the proposed purchaser's execution of a Disclosw~e Statement in the form attached hereto as Exhibit D or such other form or forms as may be promulgated by the Agency; and (iv) the proposed purchaser's assumption of Owner's duties and obligations under this Agreement pursuant to a written assumption agreement in a form acceptable to Agency, or execution oi' an agreement substantially similar to this Agreem~.ent, in a form acceptable to Agency, within thirty (30) days after the Consent to Transfer has been delivered to Owner. If the prospective purchaser (i) fails to qualify as an Eligible Household, (ii) fails to execute and deliver the Disclosure Statement to the Agency, or (iii) fails to execute 104825.2 7 and deliver to the Agency an assumption agreement or an agreement substantially similar to this Agreement within such thirty (30} day period, then the Consent to Transfer shall expire and the Agency may, at its option, either notify Owner of the disqualification, thereby entitling Owner to locate another purchaser who qualitFies as an Eligible Household, or exercise the Agency Option, as if no Consent to Transfer had been delivered. d. Time Period for Notice. Agency shall deliver a Consent to Transfer, if applicable, no later than sixty (60) days after the date it receives notification of an Option Event. Agency shall deliver a I`rTOtice of Exercise, if applicable, no later than ninety (90) days after the date that Agency receives notification of an Option Event. For purposes of computing commencement of the delivery periods, the Agency shall be deemed to have notification of an Option Event on the date that it actually receives written Notice of Intent to Transfer, notice of default, summons and complaint or other pleading, or other writing specifically stating that an Option Event has occurred. The Agency shall have no obligation to deliver a Notice of :Exercise or Consent to Transfer, and the applic;able time period for exercise of the Agency Option shall not commence to run, unless and until the Agency has received notification of an Option Event in the manner specified in this subsection. If there is a stay or injunction imposed by court order precluding the Agency from deI'.ivering its Consent to Transfer or Notice of Exercise within the applicable time period, then the running of such period shall cease until such time as the stay is lifted or the injunction is dissolved and the Agency has been given written notice thereof, at which time the period for delivery of a Consent to Transfer or Notice of Exercise shall again begin to run. e. No Waiver. If 'the Agency in its sole discretion determines not to exercise the Agency Option in any pa.rticulax instance, or fails to deliver a Notice of Exercise or Consent to Transfer within the time periods set forth in this Section 10, such determination or failure shall not affect Agency's right to exercise the Agency Option upon the occurrence of any future Option Event. 11. Right to Reinstatement. If the Option Event is the recordation of a notice of default, then the Agency shall be deerned to be Owner's successor in interest under California Civil Code Section 2924c (or successor section) solely for purposes of reinstatement of any mortgage on the Property that has led. to the recordation of the notice of default. As Oumer's deemed successor in interest, the Agency shall be entitled to pay all amounts of principal, interest, taxes, assessments, homeowners' association fees, insurance premiums, advancers, costs, attorneys' fees and expenses required to cure the default. If the Agency exercises the Agency Option, then any and all amounts paid by the. Agency pursuant to this Section shall be treated as Adjustments to the Base Resale Price for the Property, as defined in Section 15, below. 12. Inspection of Property. After receiving a Notice of Intent to Transfer or delivering a Notice of Exercise, the Agency shall be entitled to inspect the Property one or more times prior to the close of escrow to determine the amount of any Adjustments to the Base Resale Price. Before inspecting the Property, the Agency shall give Owner not less than forty- eight (48) hours written notice of the date, time and expected duration of the inspection. The inspection shall be conducted between the hours of 9:00 a.m. and 5:00 p.m., Monday through Friday, excluding court holidays, unless the parties mutually agree in writing to another date 104825.2 8 and time. Owner shall make the Property available for inspection on the date and at the time specified in the Agency's request for inspection. 13. Escrow. Promptly after delivering a Notice of Exercise, the Agency shall open an escrow account for its purchase of'~the Property. Close of escrow shall take place ten (10) days after Owner has performed all acts and executed all documents required for close ofd escrow, provided, however, that close of escrow shall not occur later than sixty (60) days after a Notice of Exercise has been delivered. Prior to the close of escrow, the Agency shall deposit the Adjusted Resale Price as defined in Section 15 below and all escrow fees and closing; costs to be paid by Agency. Closing costs and title insurance shall be paid pursuant to the custom and practice in the County of San Mate;o at the time of the opening of escrow, or as inay otherwise be provided by mutual agreement. Owner agrees to perform all acts and execute all documents reasonably necessary to effectuate the close of escrow aild transfer of the Property to the Agency. 14. Proceeds of Escrow; Rc;moval of Exceptions to Title. Prior to close of escrow, Owner shall cause the removal of all exceptions to title to the Property that were recorded after the Effective Date with the exception of (i) nondelinquent taxes for the fiscal year in which the escrow closes, which taxes shall be prorated as between Owner and Agency as of the date of close of escrow, (ii) quasi-public utilil:y, public alley, public street easements, sidewalk;>, and rights of way of record, and (iii) such other liens, encumbrances, reservations and restrictions as may be approved in writing by the .Agency ("Permitted Exceptions"). All amounts required to be deposited into escrow by the Agency shall be applied first to the payment of any and all liens and encumbrances recorded against the Property in order of lien priority, and thereafter to the payment of escrow fees and closing costs. Any amounts remaining after the amounts deposited into escrow by the Agency have been so applied, if any, shall be paid to Own•°r upon the close of escrow. If the amounts deposited into escrow by the Agency are insufficient: to satisfy all liens and encumbrances recorded against the Property, the Owner shall deposit into escrow such additional sums as maybe required to remove said liens and encumbrance:;. In the event that the Agency agrees to proceed with close of escrow prior to the date that Owner has caused all exceptions to title other than the Permitted Exceptions to be removed, then Owner shall indemnify, defend and hold Agency harmless from any and all costs expenses or liabilities (including attorneys' fees) incurred or suffered by Agency that relate to such exceptions and their removal as exceptions to title to the Property. 104825.2 15. Determination of Adiusted Resale Price. If the Agency (or its assignee) exercises the Agency Option, or if the Owner sells to an Eligible Household, the maximum sales price that the Owner shall receive from the Agency or the Eligible Household shall be the Base Resale Price, as adjusted pursuant to subsection (b) below (the "Adjusted Resale Frice") Notwithstanding any other provision hereof to the contrary, in no event shall the Adjusted Resale Price be a price that will result in greater than Affordable Housing Cost for the Eligible Household. a. Base Resale Price. Prior to adjustment pursuant to subsection (b) below th,e base resale price ("Base Resale Price") of t;he Property shall be the lesser of: i. Indexed Value. The Indexed Value of the Property means the original price paid by the Owner for acquisition of the Property which the Parties agree is the sum of Dollars ($ ;~ (the "Base Price"), increased (but not decreased) by an amount, if any, equal to the Base Price multiplied by the percentage increase in the AMI between the Effective Date and the date that the; Agency receives notification of an Option Event. ii. Fair Market Value. The Fair Market Value of the Property means the value of the Property as determined by a qualified appraiser, certified by the State of California, selected and paid for by the; Owner and approved by the Agency in writing. Nothing in this Section shall preclude the Ownf;r and the Agency from establishing the Fair Marke;t Value by mutual agreement instead of by appraisal. b. Ad1ustments to Base Resale Price. Subject to the Affordable Housing Cc>st restriction, the Base Resale Price shall be increased or decreased, as applicable, by the following adjustment factors ("Adjustment"): i. Capital Improvements. An increase for capital improvements made to the Property by Owner, but only if the; purpose and amount of said improvements have .been previously approved by the Agency in writing and evidence of the cost is provided to the Agency for verification. The amount of the Adjustment shall equal the original cost of Amy such capital improvements depreciated on a straight-line basis based upon the estimated useful life of the improvement stated in the Agency's prior written acceptance of said improvement. ii. Damages. A decrease by the amount necessary to repair damages to the Property, if any, and to place the Property into saleable condition as reasonably deternined by the Agency, including, without Iimitat:ion, amounts attributed to cleaning; painting; replacing worn carpeting and draperies; making necessary structural, mechanical, electrical and plumbing repairs; and repairing or replacing buillt-in appliances and fixtures. iii. Advances by the Agency. A decrease in an amount equal to the sum of all costs advanced by the Agency for the payment of mortgages, taxes, assessments, insurance premiums, homeowner's association fetes and/or associated late fees, costs, penalties, interest, attorneys' fees, pest inspections, resale; inspections, fixing violations of applicable building, plumbing, electric, fire, or other codes, and other expenses related to the Property, which Owner has failed to pay or has permitted to bE;come delinquent. 104825.2 .~ O 16. Priority and Effectiveness of the Option. a. Recordation. This Agreement shall be recorded in the Official Records on or as soon as practicable after the Effective Date. The Agency Option shall have priority over any subsequent Transfer or encumbrance of the Property, or of any estate or interest therein, and in the event of exercise of the Agency Option by Agency, the Agency shall t,~ke the Property subject only to Permitted Exceptions. Except as otherwise provided in Section 17 a , the exercise of the Agency Option by the Agency at any time and from time to time shall not extinguish the Agency Option or cause; a merger of the Agency Option into any estate or other interest in the Property, and the Agency Option shall continue to exist acid be effective with respect to the Property against any and all subsequent owners in accordance with the terms and conditions hereof. b. Request for Notice of Default. The Agency shall file a Request for Notice of Default for recordation in the; Official Records promptly upon execution of this Agreement. c. Subordination. 'This Agreement shall be subordinate to the Developer Resale Agreement. The Agency agrees that if required in order to assist Owner to secure; purchase money financing for the acquisition of the Property, the Agency will enter into a subordination agreement with a purchase money lender to subordinate this Agreement under such terms as the Agency and the senior purchase money lender shall negotiate provided that Agency is granted reasonable notice and cure rights under the first mortgage. 17. Survival of Option Upon Transfer. a. In General. The Agency's right to exercise the Agency Option shall survive any Transfer of the Property by Owner. The Agency Option may be exercised against the Property whether owned, possessed or occupied by (i) an Eligible Household, (ii) an:y successor, transferee, assignee, heir, executor, or administrator of an Eligible Household, including adebtor-in-possession, debtor or trustee pursuant to Title 11 of the United States Code, or (iii) any person owning, possessing or occupying the Property who does not qualify as an Eligible Household pursuant to Section 7 (collectively all referred to and defined herein as "Owner"). Notwithstanding the foregoing, the Agency Option shall not survive (i) the sale and transfer of the Property to a third party purchaser pursuant to a judicial or non judicial foreclosure or a deed-in-lieu of foreclosure under a power of sale contained in a mortgage or deed of trust recorded against the Property in the Office of the Recorder of the County of San Mateo on or prior to the date of this Agreement, provided that the Agency has received timely notice of such Option Event and has filed to either reinstate said mortgage or deed of trust or exercise the Agency Option, or (ii) the; recording of an instrument conveying Owner's interest in the Property to the Agency, or its assignee, provided the conveyance is in accordance with the terms of this Agreement. ioas25.2 11 18. Voidable Transfers. Ar~y actual or attempted Transfer of the Property or of any estate or interest therein, in violation of the terms and conditions of this Agreement, shah be voidable at the election of the Agency. 19. Permitted Encumbrances and Refinances. This Agency Option shall not become exercisable as the result of Owner's encumbering the Property for the purpose of securing financing to purchase the Property, or to refinance existing indebtedness incurred to purchase the Property. The maximum amount (the "Permitted Encumbrance Amount") of any refinancing permitted by this section ;;hall not exceed an amount equal to ninety percent; (90%) of the Adjusted Resale Price calculated as provided in Section 15. The Permitted Encumbrance Amount shall be the Adjjusted Resale Price calculated as if the Agency has received notification of an Option Evf;nt on the earlier of (a) the date on which the deed of trust or mortgage securing the refinancing :indebtedness is filed for record in the Official Records, or (b) the date the Agency receives Notice of Intent to Transfer pursuant to Section 10(a) above. 20. Insurance Proceeds ands Condemnation Award. In the event the Property :is destroyed and insurance proceeds are distributed to Owner instead of being used to rebuild the Property, or, in the event of condemna~.tion, if the proceeds thereof are distributed to Owner, any surplus of proceeds remaining after payment of the senior liens and encumbrances on the Property shall be distributed as follows: that portion of the surplus up to, but not to exceed, the net amount Owner would have received pursuant to Section 14 had the Agency exercised the Agency Option on the date of the destruction of condemnation valuation date shall be distributed to Owner, and the balance of such surplus, if any, shall be distributed to the Agency. 21. Events of Default. The following shall constitute the occurrence of an event of default ("Event of Default") hereunder, and shall entitle the Agency to exercise the Agency Option or to pursue any other remedy provided herein or at law or in equity: a. Owner fails to use the Property as Owner's Principal Residence. b. Owner Transfers the Property in violation of this Agreement. c. Owner refinances the Property in violation of this Agreement; d. Commencemenlt of a judicial foreclosure proceeding regarding the Property. e. Execution by Owner of any deed in lieu of foreclosure transferring ownership of the Property. £ Commencement of a proceeding or action in bankruptcy, whether voluntary or involuntary, pursuant to 'T'itle 11 of the United States Code or other bankruptcy statute, or any other insolvency, reorganization, arrangement, assignment for the benefit of creditors, receivership or trusteeship, concerning the Owner; 104825.2 12 g. Owner otherwise fails to comply with the requirements of this Agreement and such violation is not corrected to t:he satisfaction of the Agency within thirty (34) days after the date of written notice by the Agency to the Owner of such violation. 22. Remedies. a. Specific Performance. Owner acknowledges that any breach in th.e performance of its obligations under this Agreement shall cause irreparable harm to the Agency. Owner agrees that the Agency is entitled to equitable relief in the form of specific performance, including without limitation, upon Agency's exercise of the Agency Option, and that an award of damages shall not be adequate to compensate the Agency for Owner's f~ulure to perform according to the terms of this Agreement. b. Other Remedie:;. Agency shall be entitled to pursue any other remedy provided for at law or equity, all of w]lich shall be cumulative. 23. Covenants Running with the Land. Owner hereby subjects the Property to the covenants, conditions and restrictions set forth in this Agreement. The Parties hereby declare their express intent that all such covenants, conditions and restrictions shall be deemed covenants running with the land and shall pass to and be binding upon Owner's successors in title to the Property. All covenants without regard to technical classification or designation shall be binding for the benefit of the Agency and the City, and such covenants shall rur.~ in favor of the Agency and its successor;> for the Term of this Agreement. Each and every contract, deed or other instrument hereafter exe-cuted applicable to or conveying the Property or any portion thereof shall conclusively be field to have been executed, delivered and accepted subject to such covenants, conditions and restrictions, regardless of whether such covenants, conditions and restrictions are set forth in such a~ntract, deed or other instrument. 24. Owner's Acknowled~e:ment of Resale Restriction. Owner hereby acknowledges and agrees that: A. Owner hereby subjects thc; Property to certain restrictions, and limits the price for which Owner may sell the Property acid the persons to whom Owner may sell the Property. The resale price limitation, and other provisions contained in this Agreement restrict the full benefits of owning the Property. Owner may not enjoy the same economic or other benefits from owning the Property that Owner would enjoy if this Agreement did not exist. B. Absent the provisions of t:he DDA and the provisions of this Agreement, the Property could not be made available to Eligible Households, including Owner, at an affordable price. C. Owner has read and understands all of the provisions of this Agreement. Owner accepts and agrees to the provisions of this Agreement and understands that this Agreement (including without limitation the effectiveness of the resale restrictions and the Agency Option) 104825.2 13 will remain in full force and effect throughout the Term of this Agreement despite any Transfer of the Property. D. OWNER UNDERSTANh-S THAT THE DETERMIl~?ATION OF THE ADJUSTED RESALE PRICE OF THE PROPERTY TO AN ELIGIBLE HOUSEHOLD CAN BE M.SDE ONLY AT THE TIME OF THE PROPOSED TRANSFER, TAKING INTO CONSIDERATION INCREASES IN MEDIAN INCOME, MORTGAGE INTEREST RATES, PROPERTY TAXES AND OTHER FACTORS THAT CANNOT BE ACCURATELY PREDICTED AND THAT THE SALES PRICE PERMITTED HEREUNDER MAY NOT INCREASE OR DECREASE IN THF; SAME MANNER AS OTHER SIMILAR REAL PROPERTY WHICH IS NOT ENCUMBERED BY THIS AGREEMENT. OWNER FURTHER ACKNOWLEDGES TH~.T AT ALL TIMES IN SETTING THE SALES PF1CE OF THE PROPERTY THE PRIMARY OBJECTIVE OF THE AGENCY AND THIS AGREEMENT IS TO PROVIDE HOUSING TO ELIGIBLE HOUSEHOLDS AT AFFORDABLE HOUSING COST. T'HE ADJUSTED RESALE PRICE WILL ALMOST CERTAINLY BE LESS THAN OTHER SIMILAR PROPERTIES THAT HAVE NO RESTRICTIONS. [initialed by Owner(s)] 25. Notices. Except as othf;rwise specified in this Agreement, all notices required to be sent pursuant to this Agreement shall be made by personal delivery or by deposit in the United States mail, first-class, postagf; prepaid, and shall be deemed to have been delivered and received on the date of personal delivery or five (5) days after deposit in the mail, if sent to the following address: Agency: Redevelopment Agency of the City of South San Francisco 400 Grand Avenue South San Francisco, California 94080 Attn: E~:ecutive Director Owner: South San Francisco, California 6. Attorne sy Fees. If either party initiates Legal proceedings to interpret or enforce its rights under this Agreement, the prevailing party in such action shall be entitled to an award of reasonable attorneys' fees and costs in additions to any other recovery to which it is entitled under this Agreement. 27. 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 or 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 104825.2 14 and executed by the waiving party. This Agreement maybe amended or modified only by a written instrument executed by the Parties and duly recorded in the Official Records of San Mateo County. 28. Severability. If any provision 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. 29. Interpretation of Agreement. This Agreement shall be interpreted so as to avoid speculation on the Property and to ensure to the extent possible that its sales price and mortgage payments remain affordable to Eligible Households. 30. Action or Approval. Whenever action and/or approval by Agency is required under this Agreement, Agency's Executive Director or his or her designee may act on andlor approve such matter unless specifically provided otherwise, or unless the Executive Director determines in his or her discretion that such action or approval requires referral to Agen.cy's Board for consideration. 31. Entire Agreement. This Agreement, including Exhibits A through D attached hereto and incorporated herein by this reference, contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior written or oral agreerrients, understandings, representations or statements with respect to the subject matter hereof. 32. Governing Law; Venue;. This Agreement shall be governed and construed in accordance with the laws of the State of California without regard to principles of conflict of laws. Any action to enforce or interpret this Agreement shall be filed in the Superior Court of San Mateo County, California or in th,e Federal District Court for the Northern District of California. 33. Future Enforcement by City. The Parties hereby agree that should the Agency cease to exist as an entity at any time during the Terin of this Agreement, the City shall have the right to enforce all of the terms anal conditions herein, unless the Agency has previously specified another entity to enforce this Agreement. SIGNATURES ON FOLLOWING PAGE. 104825.2 ~ 5 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. ATTEST: By: Agency Secretary APPROVED AS TO FORM: By: Agency Counsel OWNER(S), [an individual/a married couple]: By: REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO, a public body corporate and politic By: Its: 104825.2 16 EXHIBIT A LE~sAL DESCRIPTION Real property in the Cite of South San hrancisco, County of San Nlateo, State of California, described as follows: 1048251.2 EXHIBIT B VIA CERTIFIED MAIL -RETURN RF>CEIPT REQUESTED To: Redevelopment Agency of the City of South San Francisco 400 Grand Avenue South San Francisco, CA 94080 Attn: Executive Director Date: Re: Notice of Intent to Transfer The undersigned Owner(s) ,hereby give(s) notice ofd his/her/their intent to transfer the property located at ,South San Francisco, California (the "Property"). Owner may be contacted at the Property or at thf; following address: Owner's daytime telephone number is ( } The proposed transfer of the Property is to the following person(s): Name: Address: Telephone: ( } The proposed transfer is (check one): Sale Lease Other Specify: Owner(s) signature(s): 104825.2 EXHIBIT C Date: To: Re: Notice of Exercise (Owner or Transferree) (Address) The Redevelopment Agency of the City of South San Francisco ("Agency") hereb;~ gives notice that it is exercising its option to purchase the real propert~~ located at _, South San Francisco, California. The option has been granted to the Agency pursuant to the Resale Restriction Agreement and Option to Purchase between Owner and the Agency dated and recorded on as Instrument No. (The Agency has assigned its option to purchase the real I~roperty to .) An escrow for the purchase will be opened with the Title Company. REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO, a public body, corporate and politic By: Its: 104825.2 EXHIBIT D Disclosure Statement TPIIERE ARE RESTRICTIONS ON THEE SALE OF TIIE PROPERTY YOU ARE', BUI'ING. EXCEPT FOR A TRANSFER TO THE REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRAr1CISC0 OR PENINSULA HABITAT FOR HUMANITY FOLLOWING EXERCISE OF THEIR RESPECTIVE OPTION TO PURCHASE, THIS PROPERTY MAY ONLY BE SOLD TO AN "ELIGIBLE HOUSEHOLD" AT A PRICE NOT TO EXCEED THE ADJUSTED RESALE PRICE WHICH IS CAPPED AT AN "AFFORDABLE HOUSING COST." THE PRICE FOR WHICH THIS PIOPERTY MAY BE SOLD IS RESTRICTED. THIS MEANS THAT YOU MAY T10T SELL THE PROPERTY FOR MARKET VALUE UNLESS APPROVED BY' THE REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO. ALL IIVIPROVElVIENTS TO THI1 PROPERTY AND ALL LOANS SECURED BY THE PR®PERTY REQUIRE PRIOR WRITTEN APPROVAL FROM TIIE REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO. THESE RESTRICTIONS V~~ILL BE IN EFFECT UNTIL . Al~dY SALE OF THE PROPERTY' IN VIOLATION OF THE RESTRICTIONS SHALL BE VOID. TO DETERMINE WHO AN ELIGIBLE HOUSEHOLD IS, AND WHAT THE ADJUSTED RESALE PRICE ANI) AFFORDABLE HOUSING COST ARE, YOU SHOULD CONTACT THE REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO. YOU SHOULD ALSO READ THIS RESALE RESTRICTION AND OPTION TO PURCHASE AGREEMENT RECORDED AGAINST THE PROPERTY. YOU MA'i' OBTAIN A COPY FROM THE REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO OR FROM THE ESCROW COMPANY. I HAVE READ THE FOREGOING AND I UNDERSTAl~?D WHAT IT MEANS: Owner Owner 104825.2 EXHIBIT 2 RESOLUTION NO. 15-2005 REDEVELOPMENT AGENCY, CITY OF SOUTH SAN FRANCISCO STATE OF CALIFORNIA A RESOLUTION APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT (DDA) BETWEEN THE CITY OF SULITH SAN FRANCISCO REDEVELOPMENT AGENCY AND PENINSULA HABITA'T' FUR HUMANITY TO TRANSFER 440 COMMERCIAL AVENt1lE TO HABITAT FOR HUMANITY FOR THE CONSTRUCTION OF F(:)i1R AFFORDABLE HOUSING tJNI'hS AND APPROVING A FORGIVABLE CONSTRtCTION LOAN OF $33,780 TO PENINSULA HABITAT FUR HtMANITY WHEREAS, it is recommend that the Redevelopment Agency Board approve the Disposition and Development Agreement, transfer the property to Peninsula Habitat for Humanity, and approve a forgivable construction loan in the arriount of $33,780; and WHEREAS, under the proposed development agreement, the Redevelopment Agency will transfer the project property to Peninsula Habitat for Humanity for one dollar ($1); and 1. WHEREAS, the City Council, acting pursuant to Health and Safety Code section 33433(c) (1) has authorized the Redevelopment Agency to sell the property located at 440 Commercial Avenue. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of South San Francisco that the Agency hereby approves a Disposition and Development Agreement (DDA) between the City of South Saxe Francisco Redevelopment Agency and Peninsula 13abitat for Humanity to transfer 440 Commercial Avenue to Habitat for Humanity for the construction of four affordable housing units and approvers a forgivable construction loan in the amount of ~'~33,780. BE IT FURTHER RESOLVI=;D that the Agency authorizes the Executive Director to execute the Agreement and all related docuanents on behalf of the Redevelopment Agency, subject to approval as to form by the Agency Counsel. BE IT FURTHER RESOLVED that this resolution shall be effective upon approval of this resolution and the City Council resolution authorizing the Redevelopment Agency to sell the property at 440 Commercial Avenue; to Peninsula Habitat for Humanity. I hereby certify that the foregoing Resolution was regularly introduced and adopted b~y the Redevelopment Agency of the City of South San Francisco at a regular meeting held on the 25~' day of May 2005 by the following vote: AYES: Boardmembers Richard A. Garbarino Pedro Gonzalez and Karvl Matsumoto, Vice Chair Joseph A. Ferriekes and Chair Raymond L Green NOES: None. ABSTAIN: None. ABSENT: None. ATTEST: Deputy Clerk llATE: February 13, 2008 TO: Honorable Mayor and City Council FROM: Sharon Ranals, Director of Recreation and Conununity Services SUBJECT: RESOLUTION AUTHORIZING PURCHASE OF TWO BRONZE GIRAFFE SCULPTURES FOR THE INTERSECTION OF JUNIPERO SERRA AND HICKEY BOULEVARDS 1N AN AMOUNT NOT TO EXCEED $5,000 RECOMMENDATION: it is recommended that the City Council adopt a resolution authorizing the purchase of two bronze giraffes for installation in 1:he northeastern island at Junipero Serra and Hickey Boulevards, at a total cost not to exceed $5,000. BACKGROUND/DISCUSSION: 111 December of 2004, a beautification project was completed on the northeastern island of the intersection of Junipero Serra and Hickey Boulevards. An artificial pond with recirculating water was constructed by the city's street crew; up lights were installed by the electrical crew; landscaping was installed around the edge of the pond by the parks crew. A pair of bronze crane fountains with water spouts was selected by the Cultural Arts Commission, and installed in the pond, as shown in the attached photo. The project tunled out nicely, and was well received by the community. Although they were originally concenied about ongoing maintenance of the "pond", the Parks Division did not find it unduly burdensome. Unfortunately the cranes were broken off at the legs and stolen in March of 2007. They were apparently pushed back and forth until their thin legs fatigued enough to allow the bodies to be snapped off. The vandals were not apprehended, so their motives are not known. However, because the cranes were obviously damaged in the process of being removed, and the pump portion of the fountains was left behind, it is speculated that they were not stolen for re-installation, but may have been taken for their scrap metal value. The Commission has considered. several options for the site, including: leaving the landscaped "pond" as is without any sculptures; restoring the cranes as they were; purchasing aboulder-type fountain to install in the pond; installing a conventional fountain with several tiers of water bowls; or finding alternatives to the cranes and. installing them as securely as possible to thwart potential vandals. Staff Report Subject: Recommendation for Sculpture Purchase February 13, 2008 Page 2 The last option was ultimately the one: selected. The Cultural Arts Commission voted .at their regular meeting on January 17, 2008 to recommend purchase of two giraffe sculptures for installation on the island, as seen on the attached photos. If approved, the giraffes would be purchased locally from Giannini Garden Ornaments on Shaw Road. The smaller of the giraffe pair is 61" high by 66" long; the larger is 83" high and 55" long. Each giraffe weighs approximately 200 pounds. In comparison, the smaller of the two cranes was 57" high and weighed 62 pounds; the larger crane ~~as about 70" high and weighed 69 pounds. The giraffes are not fountains and there is no water pump or circulation required. The fountain shown in the attached photo is not included in the recommendatior,~. The price for the pair is $4,500. As were the cranes, these pieces are art reproductions rather than signed bronze castings of a limited. edition, such as the Safe Haven sculpture at the Sculpture Garden. However, such reproductions are far more affordable than the latter. The Commission is cognizant of the possibility that the giraffes could also be stolen. However, they noted that other bronze pieces installed at the Sculpture Garden have not been vandalized or stolen. The giraffes are significantly larger and heavier than the cranes, and would be more difficult to remove. Their legs are sturdier and would be harder to bend or break. The Public Works Department advised that rebar could be inserted through holes in the feet, and anchored down into the ground for a very secure placement. FUNDING: The cost to purchase the pair is $4,500. Installation would be performed in-house with a minimal cost for materials. The Commission has sufficient funds in their Cultural Arts Fund for the purchase and installation of the pieces. CONCLUSION: If approved, the sculptures are immediately available for installation. Staff hopes to have them installed by summer, depending upon the work load of city crews. BY~ ~it.~'!I/Y~ Approve ~• ~) ~) Sharon Ranals a Nagel Director of Recreation and Community City Manager Services Attachments: 1. Resolution 2. Bronze Cranes, 2004 3. Bronze Giraffes 4. Bronze Giraffes RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AUTHORIZING THE PURCHASE OF TWO BRONZE GIRAFFE SCULPTURES WHEREAS, staff desire the purchase of two bronze giraffe sculptures; and WHEREAS, the sculptures are to be installed in the larger of the two islands at Junipero Serra and Hickey Boulevards, at a total cost not to exceed $5,000; and WHEREAS, the Cultural Arts Commission voted at their regular meeting on January 17, 2008 to recommend purchase of two bronze giraffe sculptures; and WHEREAS, the cost to purchase the pair is $4,500, with the estimated cost of installation at $500.00; and WHEREAS, there are sufficient funds in the Cultural Arts Fund to fund the purchase and installation. NOW, THEREFORE, BE; IT RESOLVED by the City Council of the City of South San Francisco that the City Council. authorizes the purchase of two giraffe sculptures in an amount not to exceed $5,000. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the of the City of South San Francisco at a regular meeting held on the 13"' day of February 2008 by the following vote: AYES: NAYS: ABSTAIN: ABSENT: ATTEST: Krista Martinelli-Larson 1054751.1 .: ~~~~'. .' 4 ;. .t ~~ ~.l ~'i .., t +t _ .. ~ "` '- ....~ ~, ~'"+'G. .^ a^/` ~. '7 A y4 1 - r: ~ f r ;. j ;'ya ri ~jj ,,,;•5 !' ~, s; ':'~,; ~~~' ?L ~a .8y C`:" y. r.~~~. '+;~~t x ~~ ~'` ~. I,~ ~t ~~,~.. ~_ 1 ,; r i, 4`": ~' t ` ~~ Y' _ r ~ 4 ,. +K~ ~ a;~';k , '~~ ~ ~,` y ~ k. k~ rye . 1 k ` !~ z , ~, ~ ~ ~ s ~ r ~ [ ~ ~'F y ,_ hr ~~, y;. ~_a, of :k ~. 31' E'h K.p~ _ ,~; N l~. >~ r. :` a _,.:,... .~ r ~, --- _:E i ,~' ~s k ~' t ~r x~._ 'w ~~_ t ' ~ rY'. ~ . ~~-4._i.. is ~i~ i - g ~' t .~~.~ e, ~~" pry rl-. r ~ ~ ~k C _~. ~~ ~: t, w~ - ~~. °~; -ti:~: ~' ~~ q"'~~-~ u, . _ I~ hI 'S-.k - ~r n4 ~; ~. :, v y~ ab+ ~_.. ,- - ~ : -,~,x~ ~t ~~ k.~ ~c . ~' ~;, ~ , v.t;' i,~a ~ ~ ~r:' w t j Y N ~ .~f ~. ~ 4 ~s ~ r i _- ;6 'b ~ C ~.~rt`}^ c~~~ ~~ Y ;- ~~ ~ t +;~ ,~ ~~~; _« ,,~ ~. . ~~ £~ ~~i a ~, f ri;: a ~ Staff Report AGENDA ITEM #7 DATE: February 13, 2008 TO: Honorable Mayor and City Council FROM: Philip D. White, Fire Chief SUBJECT: RESOLUTION ADOPTING THE NATIONAL INCIDENT MANAGEMENT SYSTEM RECOMMENDATION It is recommended the City Council approve a resolution adopting the National Incident Management System (I~TIMS). BACKGROUNDlDISCUS SIGN The Secretary of Homeland Security, through Homeland Security Presidential Directive - 5 (HSPD), released the National Incident Management System (NIMS). NIMS is a comprehensive emergency management system that improves local governmc;nt response operations through the use of the Incident Command System (ICS) and the application of sl;andardized procedures, preparedness measures, and protocols. NIMS promotes development of cross jurisdictional, statewide, and interstate regional mechanisms for coordinating emergency response and obtaining assistance during alarge-scale or complex incident. The Department of Homeland Security (DHS), created NIMS to provide a national approach to incident management, applicable at all jurisdictional levels and across functional disciplines. Following the issuance of HSPD-5, all states and local jurisdictions throughout the country have been working on meeting the following NIIvIS requirements. • Incorporating NIMS into existing training programs and exercises • Ensuring Federal preparedness landing (including DHS Homeland Security Grant Programs, Urban Area Security Initiative (UASI) funds) support NIMS implementation at the state and local levels (in accordance with the eligibility and allowable uses of the grants) • Incorporating NIMS into local and state Emergency Operations Plans (EOP) • Promotion of intrastate mutual aid agreements • Coordinating and providing technical assistance to local entities regarding NIMS • Institutionalizing the use of the Incident Command System (ICS) Staff Report Subject: Emergency Preparedness Goals Page 2 FUNDING There is no fiscal impact since training will occur during an employee's regular hours of work. This mandatory training for City employees is being provided by the Fire Department and instructors from the Sari Mateo County Office of Emer€;ency Services. CONCLUSION By adopting NIMS, the City of South San Francisco will be meeting the final compliance requirements of HSPD-5. In so doing, the City of South San Francisco will not only provide a more comprehensive and coordinated approach to emergency incident management, but will maintain the City of South San Francisco's eligibility for future disaster reimbursement and federal preparedness grant opportunities. By: Philip D. White Fire Chief '~\. Approved. "" " ~~ a M. Nagel City Manager Attachment: Resolution RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION ADOPTING THE NATIONAL INCIDENT MANAGEMENT SYSTEM WHEREAS, emergency response to critical incidents, whether natural or manmade, requires integrated professional management, and WHEREAS, unified command of such incidents is recognized as the management model to maximize the public safety response, and WHEREAS, the National Incident Management System ("NIMS"), has been identified by the Federal Government as being the requisite emergency management system for all political subdivisions, and WHEREAS, failure to adopt NIMS as the requisite emergency management system may preclude reimbursement to the political subdivision for costs expended during and after a declared emergency or disaster and for training and preparation for such disasters or emergencies. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council hereby: 1. Adopts the NIMS concept of emergency planning and unified command. 2. Supports the policy of providing NIMS training to public officials responsible for emergency management. * ~ 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 _ , 2008 by the following vote: AYES: NOES: ABSTAIN: ABSENT: 1049287.1 ATTEST„ City Clerk DATE: February 13, 2008 TO: Honorable Mayor aJnd City Council FROM: Doug Hollis, Director of Information Technology SUBJECT: RESOLUTION AMENDING THE 2007-2008 APPROPRIATING $22,000 VIDEO EQUIPMENT FOR HEARING AND VIEWING RECOMMENDATION BUDGE"T AND FOR THE PURCHASE OF NEW AUDIO AND THE COUNCIL CHAMBERS FOR IMPROVED Staff recommends the City Council approve the attached budget amendment resolution which appropriates $22,000 from the General Fund Undesignated Reserve to the Equipment Replacement budget to upgrade the audio and video equipment and to purchase a new podium for the City Council chambers BACKGROUND/DISCUSSION In 2007, we added the large monitors to the Council Chambers to improve the viewing experience, remove the issue of the projector screen coming down in front of Council and to remove the "wait time" of the ceiling projector to turn on. As part of that project, staff added the ability to view the "transmission of the televised broadcast" over the large monitors. The plan was to test the concept and see how it would be received by the public and Council. The "televised broadcast" was not added to the dais monitors at that time. The proposed project will improve th.e audio and video at the dais. Currently, there are speakers in the main room, the back area by the sliding doors and out in the over-flow area or common area. However, there are no speakers or a separate volume control for the dais area. The audio upgrade project will be addling four speakers (with one volume control) above the Council dais, at a cost of approximately $3,000. Staff is currently working on this and expects it to be competed the week of February 11, 2008. The video upgrade project will allow the transmission of the televised broadcast of council meetings to each Council member's video display. The video upgrade will cost approximately $15,000 for the improvement. The completion of botlh upgrades will enhance and improve the current audio and video systems. Staff Report Subject: Purchase of new video equipment for Council chambers Page 2 The new podium being proposed would incorporate the use of a laptop from the podium with all the connectivity required for approximately $7,000. FUNDING Funding in the amount of $22,000 would come from the General Fund Undesignated Reserve for this project. CONCLUSION Installation of the proposed equipment will provide improved audio, video and presentation quality for Council and an overall improvement of the presentation environment. Staff recommends the City Council approve the attached budget amendment resolution. 7 n / ,. Dougla R. Hollis Director of Information Technology Approved ` ~ ~ M. Na City Manager Attachment: Resolution DH/dc RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORI~TIA A RESOLUTION AMENDING THE 2007-08 BUDGET AND APPROPRIATING $:22,000 FOR THE PURCHASE OF NEW AUDIO AND VIDEO EQUIPMENT FOR THE COUNCIL CHAMBERS FOR IMPROVED HEARING AND VIEWING WHEREAS, the City Council of the City of South San Francisco is committed to open, public and accessible public meetings; for the community; and WHEREAS, the existing audio and video equipment in the City Council chambers has not provided complete and equal audio and video coverage, resulting in an inability for Council to hear and see presentations. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council hereby approves a budget amendment to the Capital Improvement Fund for 2007-08 to appropriate $22,000 for an upgrade to the audio and video equipment for the Council Chambers. Funding will come from the General Fund Undesignated Reserve. 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 , 2008 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk o H ~ n v o c'~LIFOI~~~~ f f ~ o rt to ~ DATE: February 13, 2008 AGENDA ITEM # 9 TO: Honorable Mayor and City Council FROM: Philip White, Fire Chief SUBJECT: ORDINANCE REPEALING CHAPTER 15.24 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE AND ADOPTING A NEW CHAP'T'ER 15.24 IN CONFORMANCE WITH THE 2007 EDITION OF THE UNIFORM FIRE CODE; MOTION TO CONTINUE OFF CALENDAR RECOMMENDATION Staff recommends continuing this item off calendar. BACKGROUND/DISCUSSION Every three years, the California Building Standards Commission, along with other state agencies, reviews the Uniform Fire Code and adopts and amends it as part of Title 24, Part 9 of the California Code of Regulations and by reference, the International Fire Code, 2007 Edition. A public hearing to consider introduction of an ordinance updating the Municipal Code to incorporate the Uniform Fire Code was originally scheduled for the February 13, 2008 Council meeting and was noticed accordingly. Staff recommends continuing this item off calendar to provide additional time for staff to review the new Uniform Fire Code and prepare appropriate local amendments. Staff will issue a n~;w public notice prior to the hearing date. FUNDING None at this time. ~~~~~~ By: Philip D. White Fire Chief Approved: ~ ~' Barry M. Nagel City Manager ~p~ZK, S~',~, o H y J O c'~LIFOR~1~ Staff Report AGENDA ITEM # 10 DATE: February 13, 2008 TO: Honorable Mayor and City Council FROM: Mark Raffaelli, Chief of Police SUBJECT: RESOLUTION AU7CHORIZING THE ACCEPTANCE OF $15,000 h1 GRANT FUNDING FROM ABAG TO PURCHASE HANDHELD TASERS FOR OFFICERS AND AMENDING THE POLICE DEPARTMENT'S 2007/2008 OPERA'T'ING BUDGET RECOMMENDATION It is recommended that the City Council adopt a resolution authorizing the acceptance of $15,000 in grant funding from ABAG, which will be supplemented with funds from the Police Department's Seizure fund, to purclhase handheld Tasers for uniformed officers of the Department and amending the Police Department's operating budget for fiscal year 2007/2008. BACKGROUND/DISCUSSION One of the fastest growing areas of technology in law enforcement is the development and deployment of more advanced, less-lethal force devices as viable alternatives to existing technology used to deal with __ certain hostile encounters with suspects. The Police Department has always taken advantage of new technology, providing our officers with all possible means to safely control violent suspects and minimize injury to the officer and the suspect. The Taser X26 electronic restraint device is a small tool resembling a pistol that officers wear on their duty belt on the opposite side from their service weapon. When deployed, the device fires two small darts connected by thin wires. Upon contact, an electric charge affects the person's neuromuscular system, rendering the suspect incapable of fleeing or resisting, thereby enabling the officer to safely subdue and handcuff the suspect without causing permanent injury. The effects of the Taser are short term and the only medical requirement is that the darts be removed by medical personnel. In contrast, the use of a baton can cause injuries to the suspect ranging from severe bruising to broken bones and the effects of Oleoresin Capsicum (OC) spray can last up to an hour. Another advantage of this device is its ability to be deployed from up to 20 fret away, eliminating the need for going "hands-on." or using deadly force on a person who maybe armed with potentially deadly implements. The safety of the officer and the suspect is greatly enhanced. The Taser has no effect on others in the area, unlike OC spray, which can impact others who are in the area including the officers. An additional method of deployment of the Taser is the "Drive Stun" that can be utilized by removing the cartridges and placing the device directly against the suspect and activating it. Staff Report Subject: $15,000 Grant from ABAG to Purchase Handheld Tasers Page 2 The Taser International, Inc. Model ~~26 is the industry standard currently in use by over 5,500 police agencies throughout the United States and all but three of the departments in San Mateo County. Those San Mateo County agencies not currently utilizing the Taser are considering its implementation. The Department has used a version of the Taser since the early 1980's. Since that time,. no incidents of a negative nature associated with its use have occurred. Currently four Tasers are deployed by the on-duty supervisors and one member of the patrol team. All sworn personnel on the Departure;nt have received the mandated training and are authorized to carry these devices. FUNDING Funding for this project will come from an ABAG grant for $15,000 and approximately $35,000 from the asset seizure funds the Police Department receives from narcotic seizures. Unit cost of a Taser and related equix-ment: 1 Taser Model X26E 2 Air Cartridges 1 Blade-Tech Tek-Lok Holste;r Unit Total $860.45 CGIe•1CLUSIGN ABAG fully supports the deployment of Tasers by all their client agencies due to studies indicating a lowered incident of officers and citizens being injured during arrest and control situations. ,~ ~o do 7~_Y = ~. Mark Raffaelli Chief of Police tea, c~~ _ c" Barry M. Nagel \~J City Manager ~ --- Attachment: Resolution RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION ACCEPTING GRANT FUNDS OF $1,5,000 FROM ABt~.('T PLAN FOR THE PURCHASE OF TASF.RS AND AMENDING THE POLICE DEPARTMF,NT'S 2'007/2008 OPERATING BUDGET WHEREAS, the proper use of triers can be an effective tool in reducing risk of injury to officers and persons being arrested; and WHEREAS, the City of South San Francisco Police Department wishes to take advantage of a grant program from ABAG PLAN for the purchase of tasers for each officer in the department; and WHEREAS, the Police Department has $35,000 in funds set aside in its asset seizure accounts that can be used to supplement this grant funding. NOW, THEREFORE, BE I,t RESOLVED by the City Council of the City of South San Francisco that the City Council hereby approves the acceptance of a $15,000 grant from ABAG, and BE IT FURTHER RESOLVED that the operating budget is hereby increased in the Police Department by $50,000, offset by the ABAG grant and by asset seizure funds. :x * * ~ ~ I hereby certify that the forel;oing Resolution was regularly introduced and adopted by the City Council of the City of South ;San Francisco at a regular meeting held on the _ da.y of 2008 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: o _ H ~ J O cALIFOR~1~ 11 O to e~ DATE: February 13, 2008 TO: Honorable Mayor and City Council FROM: Steven T. Mattas, City Attorney AGENDA ITEM # I1 SUBJECT: AN ORDINANCE AMENDING SECTION 2.04.010 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE RELATING TO CITY COUNCIL MEETING TIMES RECOMMENDATION: Waive reading and introduce an ordinance amending Title 2, Chapter 2.04, Section 2.04.010 of the South San Francisco Municipal Code to change the start time for regular City Council meetings from 7:30 p.m. to 7:00 p.m. BACKGROUND/DISCUSSION: At the City Council Retreat on January 1:?, 2008, the City Council requested that staff prepare an ordinance changing the starting time for regular City Council meetings from 7:30 p.m. to 7:00 p.m. The regular City Council meetings would continue to oa~ur on the second and fourth Wednesday of each. month. If this ordinance is adopted, the monthly Redevelopment Agency meeting would start at 6:30 p.m. rather than 7:00 p.m. The changes to the Redevelopment Agency meeting time will be accomplished through a separate action of the Redevelopment Agency. The proposed endment to Section 2.04.010 is attached hereto as Exhibit A. ---_ Steven T. Ma s, City Attorney Barry M. gel, Ci Manager Attachments: Ordinance Exhibit A 1054572 ORDINANCE NO. AN ORDINANCE AMENDING SECTION 2.04.010 OF TITLE 2 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE RELATING TO CITY COUNCIL MEETING TIMES. WHEREAS, the City Council wishes to amend its meeting times. NOW THEREFORE, the City Council of the City .of South San Francisco does ORDAIN as follows: 1. Section 1. Section 2.04.010 Tirane. The council shall hold a regular meeting on the second and fourth Wednesdays of each month at 7:00 p.m. 2. PUBLICATION AND EFFECTIVE DATE This Ordinance shall be published once, with the names of those City Council Members voting for or against it, in the San N[ateo Times, a newspaper of general circulation in the City of South San Francisco, as required b;y law, and shall become effective thirty (30) days fram and after its adoption. 3. SEVERABILITY In the event any section or portion of this Ordinance shall be determined invalid or unconstitutional, such section or portion shall be deemed severable and all other sections or portions hereof shall remain in full force and effect. Introduced and adopted at a regular meeting of the City Council of the City of South San Francisco, held the day of _ , 2008. Adopted as an Ordinance of'the City of South San Francisco at a regular meeting of the City Council held the day of , 2008 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk As Mayor of the City of South San Francisco, I do hereby approve the foregoing Ordinance this day of , 2008. Pedro Gonzales, Mayor 1054573 EXHIBIT A Proposed Amendment to Section 2.04.010 - Regular Meeting Times of the City Council (added text underlined; a°'°*°a +°~+ ~ °+~~''°+'"'^"^''): 2.04.010 Time. The council shall hold a regular meeting on the second and fourth Wednesdays of each month at seven ~ p.m. 1054874.1