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HomeMy WebLinkAbout03.12.2025@630 Regular CCWednesday, March 12, 2025 6:30 PM City of South San Francisco P.O. Box 711 South San Francisco, CA Library Parks & Recreation Building, Council Chambers 901 Civic Campus Way, South San Francisco, CA City Council EDDIE FLORES, Mayor (District 5) MARK ADDIEGO, Vice Mayor (District 1) JAMES COLEMAN, Councilmember (District 4) MARK NAGALES, Councilmember (District 2) BUENAFLOR NICOLAS, Councilmember (District 3) ROSA GOVEA ACOSTA, City Clerk FRANK RISSO, City Treasurer SHARON RANALS, City Manager SKY WOODRUFF, City Attorney Regular Meeting Agenda 1 March 12, 2025City Council Regular Meeting Agenda How to observe the Meeting (no public comment, including via Zoom): 1) Local cable channel: Astound, Channel 26, Comcast, Channel 27, or AT&T, Channel 99 2) https://www.ssf.net/Government/Video-Streaming-City-and-Council-Meetings/City-Council 3) https://www.youtube.com/@CityofSouthSanFrancisco/streams 4) Zoom meeting (streaming only): https://ssf-net.zoom.us/j/81072693726 Webinar ID: 810 7269 3726 Join by Telephone: +1 669 900 6833 How to submit written Public Comment before the City Council Meeting: Members of the public are encouraged to submit public comments in writing in advance of the meeting via the eComment tab by 4:30 p.m. on the meeting date. Use the eComment portal by clicking on the following link: https://ci-ssf-ca.granicusideas.com/meetings or by visiting the City Council meeting's agenda page. eComments are also directly sent to the iLegislate application used by City Council and staff. How to provide Public Comment during the City Council Meeting: COMMENTS ARE LIMITED TO THREE (3) MINUTES PER SPEAKER During a meeting, comments can only be made in person: Complete a Digital Speaker Card located at the entrance to the Council Chambers. Be sure to indicate the Agenda Item # you wish to address or the topic of your public comment. When your name is called, please come to the podium, state your name and address (optional) for the Minutes. American Disability Act: The City Clerk will provide materials in appropriate alternative formats to comply with the Americans with Disabilities Act. Please send a written request to Office of the City Clerk at 400 Grand Avenue, South San Francisco, CA 94080, or email at [email protected]. Include your name, address, phone number, a brief description of the requested materials, and preferred alternative format service at least 72-hours before the meeting. Accommodations: Individuals who require special assistance of a disability -related modification or accommodation to participate in the meeting, including Interpretation Services, should contact the Office of the City Clerk by email at [email protected], 72-hours before the meeting. Page 2 City of South San Francisco Printed on 3/13/2025 2 March 12, 2025City Council Regular Meeting Agenda CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE AGENDA REVIEW LEVINE ACT DISCLOSURES (SB 1181) If you have donated $500 or more to the campaign of a South San Francisco elected official in the past twelve (12) months, please read the following paragraphs carefully: • The Levine Act (Gov. Code § 84308) requires any Party, Agent, or Participant, as defined in §84308(a), of a proceeding involving any grants, denials, renewals, restrictions, or modifications to any licenses and permits, entitlements for use, contracts, or franchises (“Proceeding”), to disclose on the record any contributions they have made to any elected, appointed, or candidate for City Officer totaling more than $500 within the preceding 12 months. • The Levine Act also requires any elected, appointed, alternate, or candidate for City Officer who has received a contribution totaling $500 within the past 12 months from a Party, Agent, or Participant of a Proceeding to (1) disclose that fact on the record involving the Proceeding and (2) to recuse themselves from, and in no way attempt to use their official position to influence any decision involving, the Proceeding. • Elected, appointed, alternates, or candidates for City Officer are prohibited from accepting, soliciting, and directing, and Parties, Participants, and Agents are prohibited from making, campaign contributions of more than $500 while the Proceeding is pending and for 12 months after the date a final decision is rendered for the Proceeding. Violations of the Levine Act may result in a civil action brought by the Fair Political Practice Commission (FPPC) for an amount up to five thousand dollars ($5,000) per violation. Any person who knowingly or willfully violates any provision of the Political Reform Act is guilty of a misdemeanor and subject to a fine of up to the greater of ten thousand dollars ($10,000) or three times the amount the person unlawfully contributed upon conviction for each violation. ANNOUNCEMENTS FROM STAFF PRESENTATIONS Certificate of Recognition honoring Ray Reyes, Wrestling Coach at El Camino High School and PAL Director for being named 2024-25 CCS Honor Coach. (Eddie Flores, Mayor) 1. Proclamation recognizing March as Women’s History Month. (Eddie Flores, Mayor)2. Page 3 City of South San Francisco Printed on 3/13/2025 3 March 12, 2025City Council Regular Meeting Agenda Proclamation celebrating March as Irish Heritage Month. (Eddie Flores, Mayor)3. Proclamation recognizing March as National Nutrition Month. (Eddie Flores, Mayor)4. COUNCIL COMMENTS/REQUESTS PUBLIC COMMENTS Under the Public Comment section of the agenda, members of the public may speak on any item not listed on the Agenda and on items listed under the Consent Calendar. Individuals may not share or offer time to another speaker. Pursuant to provisions of the Brown Act, no action may be taken on a matter unless it is listed on the agenda, or unless certain emergency or special circumstances exist. The City Council may direct staff to investigate and/or schedule certain matters for consideration at a future Council meeting. Written comments on agenda items received prior to 4:30 p.m. on the day of the meeting will be included as part of the meeting record but will not be read aloud. If there appears to be a large number of speakers, the Mayor may reduce speaking time to limit the total amount of time for public comments (Gov. Code sec. 54954.3(b)(1).). Speakers that are not in compliance with the City Council's rules of decorum will be muted. CONSENT CALENDAR Matters under the Consent Calendar are considered to be routine and noncontroversial. These items will be enacted by one motion and without discussion. If, however, any Council member(s) wishes to comment on an item, they may do so before action is taken on the Consent Calendar. Following comments, if a Council member wishes to discuss an item, it will be removed from the Consent Calendar and taken up in order after adoption of the Consent Calendar. Motion to approve the Minutes of February 8, 2025, and February 26, 2025.5. Report regarding a resolution authorizing the acceptance of $127,000 in grant funding from the County of San Mateo for the Big Lift Little Steps Preschool at the Gene Mullin Community Learning Center and amending the Parks and Recreation Department’s Fiscal Year 2024-25 Operating Budget pursuant to Budget Amendment Number 25.044. (Angela Duldulao, Deputy Director of Parks and Recreation) 6. Resolution authorizing the acceptance of $127,000 in grant funding from the County of San Mateo for the Big Lift Little Steps Preschool at the Gene Mullin Community Learning Center and amending the Parks and Recreation Department’s Fiscal Year 2024-25 Operating Budget pursuant to Budget Amendment Number 25.044. 6a. Page 4 City of South San Francisco Printed on 3/13/2025 4 March 12, 2025City Council Regular Meeting Agenda ADMINISTRATIVE BUSINESS Report regarding an ordinance establishing a local preference for deed restricted affordable housing units that gives preference to applicants who live, have lived, or work within the City of South San Francisco. (Pierce Abrahamson, Management Analyst II) 7. Ordinance amending the South San Francisco Municipal Code to add Chapter 8.100 (Local Preferences and Requirements) to Title 8 to define a preference policy requirement for housing units regulated by the City of South San Francisco in order to prioritize housing applicants who live and/or work in the City. 7a. ITEMS FROM COUNCIL – COMMITTEE REPORTS AND ANNOUNCEMENTS CLOSED SESSION Closed Session: Conference with Real Property Negotiators (Pursuant to Government Code Section 54956.8) Property: 366 Grand Avenue (APN 012-312-310) Agency negotiators: Nell Selander, ECD Director, and Ernesto Lucero, ECD Manager Negotiating party: Stacey S. Dobos Trust Under negotiation: Price and Terms 8. Closed Session: Conference with Real Property Negotiators (Pursuant to Government Code Section 54956.8) Property: 201 Baden Avenue (APN 012-335-100 and APN 012-335-110) Agency negotiators: Nell Selander, ECD Director, Tony Rozzi, ECD Deputy Director, Pierce Abrahamson, Management Analyst II Negotiating party: Firehouse Live LLC and Firehouse Work, LLC Under negotiation: Price and Terms 9. Public Employee Performance Evaluation (Pursuant to Government Code Section 54957) Title: City Manager 10. Conference with Labor Negotiators (Pursuant to Government Code Section 54957.6) Agency designated representatives: Mayor Flores and Vice Mayor Addiego Unrepresented employee: City Manager 11. ADJOURNMENT Page 5 City of South San Francisco Printed on 3/13/2025 5 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-252 Agenda Date:3/12/2025 Version:1 Item #:1. Certificate of Recognition honoring Ray Reyes, Wrestling Coach at El Camino High School and PAL Director for being named 2024-25 CCS Honor Coach.(Eddie Flores, Mayor) City of South San Francisco Printed on 3/7/2025Page 1 of 1 powered by Legistar™6 CITY OF SOUTH SAN FRANCISCO Certificate of Recognition RAY REYES The City Council of South San Francisco does hereby thank and congratulate you on being named 2024-25 Central Coast Section (CCS) Honor Coach. We appreciate your dedication to the students of El Camino High School and the wrestling community. Presented on this 12th day of March 2025 by the City Council of South San Francisco. Eddie Flores, Mayor District 5 Mark Addiego, Vice Mayor District 1 James Coleman, Councilmember District 4 Mark Nagales, Councilmember District 2 Buenaflor Nicolas, Councilmember District 3 7 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-224 Agenda Date:3/12/2025 Version:1 Item #:2. Proclamation recognizing March as Women’s History Month.(Eddie Flores, Mayor) City of South San Francisco Printed on 3/7/2025Page 1 of 1 powered by Legistar™8 Dated: March 12, 2025 RECOGNIZING MARCH AS WOMEN’S HISTORY MONTH WHEREAS, American women of every race, class, and ethnic background have made historic contributions to the growth and strength of our Nation in countless recorded and unrecorded ways and have been celebrated annually in the United States since 1987; and WHEREAS, American women have played and continue to play critical economic, cultural, and social roles in every sphere of the life of the Nation by constituting a significant portion of the labor force working inside and outside of the home; and WHEREAS, Women’s History Month in 2025 has a theme of “Moving Forward Together! Women Educating & Inspiring Generations” which recognizes women who have dedicated their lives to education, leadership, and mentorship; and WHEREAS, American women were particularly important in the establishment of early charitable, philanthropic, and cultural institutions in our Nation as well as public safety and the military; and WHEREAS, American women have served as early leaders in the forefront of every major progressive social change movement as well as leading the way in volunteerism; and WHEREAS, American women have been trailblazers, not only in securing their own rights of suffrage and equal opportunity, but also in the abolitionist movement, the emancipation movement, the industrial labor movement, the civil rights movement, and other movements, especially the peace movement, which create a more fair and just society for all. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco does hereby proclaim March 2025 as Women’s History Month, and thanks Sarah Funes-Ozturk, for her service to the Planning Commission and the community. ____________________________________ Eddie Flores, Mayor, District 5 ____________________________________ Mark Addiego, Vice Mayor, District 1 ____________________________________ James Coleman, Councilmember, District 4 ____________________________________ Mark Nagales, Councilmember, District 2 ____________________________________ Buenaflor Nicolas, Councilmember, District 3 9 Dated: March 12, 2025 RECOGNIZING MARCH AS WOMEN’S HISTORY MONTH WHEREAS, American women of every race, class, and ethnic background have made historic contributions to the growth and strength of our Nation in countless recorded and unrecorded ways and have been celebrated annually in the United States since 1987; and WHEREAS, American women have played and continue to play critical economic, cultural, and social roles in every sphere of the life of the Nation by constituting a significant portion of the labor force working inside and outside of the home; and WHEREAS, Women’s History Month in 2025 has a theme of “Moving Forward Together! Women Educating & Inspiring Generations” which recognizes women who have dedicated their lives to education, leadership, and mentorship; and WHEREAS, American women were particularly important in the establishment of early charitable, philanthropic, and cultural institutions in our Nation as well as public safety and the military; and WHEREAS, American women have served as early leaders in the forefront of every major progressive social change movement as well as leading the way in volunteerism; and WHEREAS, American women have been trailblazers, not only in securing their own rights of suffrage and equal opportunity, but also in the abolitionist movement, the emancipation movement, the industrial labor movement, the civil rights movement, and other movements, especially the peace movement, which create a more fair and just society for all. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco does hereby proclaim March 2025 as Women’s History Month, and thanks Aysha Pamukcu, for her service to the Planning Commission and the community. ____________________________________ Eddie Flores, Mayor, District 5 ____________________________________ Mark Addiego, Vice Mayor, District 1 ____________________________________ James Coleman, Councilmember, District 4 ____________________________________ Mark Nagales, Councilmember, District 2 ____________________________________ Buenaflor Nicolas, Councilmember, District 3 10 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-225 Agenda Date:3/12/2025 Version:1 Item #:3. Proclamation celebrating March as Irish Heritage Month.(Eddie Flores, Mayor) City of South San Francisco Printed on 3/7/2025Page 1 of 1 powered by Legistar™11 Dated: March 12, 2025 RECOGNITION OF MARCH AS IRISH AMERICAN HERITAGE MONTH WHEREAS, in March, we celebrate Irish American Heritage Month to recognize the Irish immigrants who sought a new beginning in the United States; and WHEREAS, Irish-American Heritage Month was first celebrated by proclamation of the President in 1991. It seemed natural to choose March since Saint Patrick Day falls on March 17, for the month-long recognition of the contributions that Irish immigrants and their descendants have made to U.S. society; and WHEREAS, it’s important to reflect on the anti-immigrant sentiment that was often faced by new Irish-Americans, largely a result of their Catholicism, which clashed with the predominantly Protestant backgrounds of the majority of families whose members had been among the original colonists; and WHEREAS, this month we recognize not only the overcoming of those obstacles by Irish Americans but also the incredible breadth and depth of their contributions to American society, from the Union’s edge over the Confederacy in the Civil War to the intellectual contributions that have kept our country on the top tiers of accomplishment; and WHEREAS, their pride lives on in business owners, scientists, public safety workers, and labor leaders who hold dear the Irish belief that everyone deserves to be treated with dignity; and WHEREAS, their courage runs deep in so many first responders, public servants, and brave service members who defend our lives and liberties – the same liberties that so many Irish immigrants and Irish Americans helped preserve and protect, with that, the Ireland flag will proudly be flying from the Mayor’s Balcony at City Hall March 14-17, 2025. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco does hereby proclaim March 2025 as Irish American Heritage Month, and we thank Frank McAuley for his years of service with the City of S outh San Francisco and continuous dedication to the SSF Sister City Program, and the community. ____________________________________ Eddie Flores, Mayor, District 5 ____________________________________ Mark Addiego, Vice Mayor, District 1 ____________________________________ James Coleman, Councilmember, District 4 ____________________________________ Mark Nagales, Councilmember, District 2 ____________________________________ Buenaflor Nicolas, Councilmember, District 3 12 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-251 Agenda Date:3/12/2025 Version:1 Item #:4. Proclamation recognizing March as National Nutrition Month.(Eddie Flores, Mayor) City of South San Francisco Printed on 3/7/2025Page 1 of 1 powered by Legistar™13 CITY OF SOUTH SAN FRANCISCO Certificate of Recognition MARCH AS NATIONAL NUTRITION MONTH The City Council of South San Francisco does hereby recognize Robert Chan, Director of Nutrition Services and Distribution, and the South San Francisco Unified School District Team for their outstanding dedication and commitment to ending hunger in our community and providing our students with sound eating and physical activity habits. The theme for 2025 is “Food Connects Us.” Presented on this 12th day of March 2025 by the City Council of South San Francisco. Eddie Flores, Mayor Mark Addiego, Vice Mayor James Coleman, Councilmember Mark Nagales, Councilmember Buenaflor Nicolas, Councilmember 14 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-250 Agenda Date:3/12/2025 Version:1 Item #:5. Motion to approve the Minutes of February 8, 2025, and February 26, 2025. City of South San Francisco Printed on 3/13/2025Page 1 of 1 powered by Legistar™15 CALL TO ORDER Mayor Flores called the meeting to order at 9:04 a.m. ROLL CALL PRESENT: Councilmember Coleman Councilmember Nagales Councilmember Nicolas Vice Mayor Addiego Mayor Flores City Manager Sharon Ranals Assistant City Manager Rich Lee Deputy City Manager Christina Fernandez Communications Manager Angenette Lau Diversity, Equity, and Inclusion Officer Devin Stenhouse City Attorney Sky Woodruff Fire Chief Matt Samson Economic & Community Development Director Nell Selander Police Chief Scott Campbell Director of Parks and Recreation Greg Mediati Deputy Director of Parks and Recreation Angela Duldulao Information Technology Director Tony Barrera Human Resources Director Leah Lockhart Library Director Valerie Sommers Finance Director Karen Chang City Treasurer Frank Risso Deputy Finance Director Jason Wong Public Works Director/City Engineer Eugene Kim Principal Engineer Matt Ruble ABSENT: None AGENDA REVIEW No changes. MINUTES SPECIAL MEETING CITY COUNCIL RETREAT CITY OF SOUTH SAN FRANCISCO SATURDAY, FEBRUARY 08, 2025 8:30 a.m. In-person Library Parks and Recreation Building Social Hall 901 Civic Campus Way, South San Francisco, CA 16 SPECIAL CITY COUNCIL MEETING FEBRUARY 08, 2025 MINUTES PAGE 2 PUBLIC COMMENTS – Limited to items on the Special Meeting agenda The following individuals addressed the City Council: • Mike Swire • Fionnola Villamejor The following individuals submitted Public Comments via the eComment portal: • Jennifer Garstang • Dolores Piper CITY COUNCIL WORKSHOP RETREAT DISCUSSION 1. Conduct a facilitated City Council retreat setting the City Council 2025 Priorities. (Eddie Flores, Mayor; Nancy Hetrick, Facilitator; Raftelis) Mayor Flores thanked the community and staff for joining the retreat and introduced Nancy Hetrick, the Facilitator from Raftelis. Nancy led an ice-breaker event that set a positive tone for the Council and staff interactions. Breakout sessions began at 9:45 a.m. The Council participated in breakout sessions with department heads who shared goals and objectives for their respective departments. Breakout sessions concluded at 10:30 a.m. Meeting Break at 10:35 a.m. The meeting Resumed at 10:51 a.m. Facilitator Hetrick engaged in discussions with the Council about their goals and accomplishments, reiterating their commitment to the city's progress. Meal break at 12:07 p.m. The meeting resumed at 12:34 p.m. Facilitator Nancy Hetrick engaged in discussions with the Council on priority-setting and council feedback on the 2025 events calendar. ADJOURNMENT Being no further business, Mayor Flores adjourned the City Council meeting at 1:19 p.m. Submitted by: Approved by: Rosa Govea Acosta Eddie Flores City Clerk Mayor Attachment: City Council Retreat Report by Raftelis 17 SPECIAL CITY COUNCIL MEETING FEBRUARY 08, 2025 MINUTES PAGE 3 Approved by the City Council: / / NOTE: The Meeting Minutes represent actions taken during the meeting of the City Council. These action minutes are the City’s record of actions that took place at the meeting. Complete Council member's discussions of meeting items can be viewed in archived video/audio recordings on the City’s website at https://www.ssf.net/Government/Video-Streaming-City-and-Council- Meetings/City-Council Pursuant to Government Code section 54957.5 all written public comments submitted to the City Council become public record and will be made available to the public. Public comments submitted via the eComment portal can be viewed in the City Clerk’s repository at https://ci-ssf- ca.granicusideas.com/meetings?scope=past 18 Client Name / Report Title 1 City Council Retreat Held February 8, 2025 City of South San Francisco , CA 19 City of South San Francisco / City Council Retreat Report 2 The City of South San Francisco, CA, held a City Council Retreat on February 8, 2025. The retreat was planned and facilitated by Raftelis. Opening and Welcome After the City Clerk administered the public comment period, Mayor Eddie Flores opened the retreat by thanking the Council and staff for their time and dedication (a complete list of City attendees is included in Appendix A). He encouraged the group to lead with boldness and intentionality, to pursue a vision that transcends what the City has done before, and to embrace the work ahead with joy, leaving a lasting legacy of a vibrant South San Francisco. Council members were asked to share their expectations and hopes for the workshop and some responses, summarized at right, echoed the Mayor’s welcome. Council’s Legacy Council members were asked to think about what they hoped would be said about them after their term(s) on the City Council has concluded. In response, a strong theme emerged that Council members wanted to consider legacy in the collective, regarding what all of Council and staff can achieve together for the City and emphasizing a philosophy of “We, not I.” Additional responses are captured below: • Doing the right thing • Setting a strong foundation to build on • Compassionate, informed decisions • Working collectively for the City • Making our City the best for everyone • Functional Council and effective governance • Being a welcoming, inclusive City • Diverse City, Council, and elected representatives Updates and Sharing with Department Heads To help set the context for identifying priorities, Council members rotated through table discussions with department heads on topics of interest, including current challenges, opportunities, and key initiatives. Departments were grouped together in five tables, including: • Internal Services: Finance, Human Resources, Information Technology • Public Safety: Fire, Police • Community Programs: Economic and Community Development, Library • Public Infrastructure: Parks and Recreation, Public Works • City Leadership: City Manager, City Attorney, City Clerk Expectations and Hopes for the Council Retreat Come away with a roadmap of priorities Collaborate Look to the future Focus on the needs of the City Celebrate and build on accomplishments Productive, rich conversations Appreciation of lasting impact after each Councilmember’s term 20 City of South San Francisco / City Council Retreat Report 3 When asked about takeaways from the discussions, Council members highlighted the importance of using staff knowledge and expertise to inform their decisions. Council members also referred several times to balance: in budget development, between taking actions and understanding the community impacts, and for staff workloads. The complete responses are below: • Time management - Ensuring requests made to staff are strategic - Making decisions that are informed by City resource levels • Wondering what the ideal budget would be to take care of all City needs - Using information and tools to inform decisions - A budget aligned with priorities and informed by updated Master Plans • Balance of moving policy forward and making a present impact on the growing community • Valuing of work-life balance for employees • Gratitude for and pride in City staff and services • Recognized the alignment of values between Council and staff Interview Themes: Accomplishments Building on the discussions with department heads, the facilitator provided additional context by reviewing accomplishments that Council members had highlighted during interviews prior to the retreat. When asked for any additions to the accomplishments listed below, the Council highlighted that the City was recognized for completing its state Housing Element not only successfully but also on time. Effective City Operations Inclusive Community - Passed Measure W - Revamped website, went live - South City Shuttle upgrades - Kicking off the Property Business Improvement District process - Expanded Pride Celebration - Completed Racial and Social Equity Plan goals - Established Age-Friendly Task Force Expanding Community Spaces Essential Resources - New Parks/Recreation/Library Facility - Centennial Way Park South opened - Oyster Point Park opened - Linden Park community engagement started - Established Anti-Displacement Advisory Committee - Passed Wage Theft Ordinance - Safeway site construction underway 21 City of South San Francisco / City Council Retreat Report 4 True Today, True in 10 Years To begin the discussion about vision and future focus, the City Council was asked to respond to two questions: • What is true about South San Francisco today that you hope will still be true 10 years from now? • What do you hope WILL be true 10 years from now that is not currently true? Council members could provide up to three responses to each question, which are listed in the table below. True Today – Still true in 10 Years Not Yet True – Hope WILL be true in 10 years • Continue to celebrate our diverse communities • Inclusive, diverse, believing in the greater good of the community • Diverse, inclusive, and equitable community • South City continues to be a tight knit community • The need for housing • Fiscally responsible • A functional city government, not dysfunctional • A city that is envied by other communities in the Bay Area • A safe city • Emergency prepared • Building affordable childcare space • A successful and vibrant business community • Continue to lead in economic development and innovation • Need for public transportation • Housing will be affordable • Best quality of life for everyone • A city where we continue to have all materials in various languages • That we increase population of Black community living in SSF • Having the best schools/best place to raise a family in the county • Robust public/active transit infrastructure so people don’t need a car to get around • Updated infrastructure to support growing population • Traffic/congestion reduction • The city will be made whole regarding its elected representatives, legislators, and supervisor • The city’s financial condition will be truly enhanced by its business community • Income > expenses, bigger reserve • That the economic separation of the haves and have nots is dissolved The following themes emerged from the activity: • True Today – what to sustain - Focus on quality services - An inclusive community - Organizational effectiveness - A safe City - Vibrant economic development • Not Yet True – what to make true - High quality of life for all - Infrastructure supports transportation needs - Strengthened relationship with regional elected representatives - Enhanced fiscal stability - Economic development benefits all 22 City of South San Francisco / City Council Retreat Report 5 Council members were asked to share their reactions to seeing each other’s responses and the themes that emerged. Councilmember Buenaflor Nicolas noted the alignment of many responses, and Councilmember James Coleman also shared that he didn’t see much disagreement between the responses. Similarly, Mayor Flores mentioned that inclusivity was commonly valued or noted but that there was also diverse thinking from each Council member. Councilmember Mark Nagales highlighted the points of fiscal responsibility and continue to deliver quality services. Mayor Flores had also shared that the fiscal aspect resonated with him, and Councilmember Mark Addiego noted that there was a lot of hope reflected among all the responses. Council Goals and Priorities The group began the goal and priority-setting portion of the day with an added public comment period. The facilitator provided additional context by reviewing the “Big Rocks” approach from the 7 Habits of Highly Effective People by Stephen Covey, including the key points to 1) Put the big rocks in first, 2) Don’t fill up the jar with so many small rocks that there isn’t room for the big ones, and 3) Then keep space for the unplanned, emergencies, or new requirements. The facilitator led the group in a review of topics raised by Council members during interviews prior to the retreat. In reaction to the topics, which are listed in full below, the Mayor highlighted the importance of childcare. • Westborough Center Expansion • Park development (Linden) • Housing (affordable; “missing middle”) • Community events • Priority-based budgeting • Local hiring preference • Senior and women’s services • Maximizing City resources • Downtown business improvement district • Traffic flow • Equity plan • Vacant properties (i.e., MSB) • Removing barriers for reach codes (e.g., EV charging stations) The group next viewed a list of ongoing initiatives and prior Council priorities, which came from the prior year’s 2024 City Council Priorities as presented in a City Council meeting on January 22, 2025. In preparation for the retreat, the facilitator collated these ongoing initiatives with the topics raised in Council interviews and drafted a preliminary framework with proposed groupings of the Council-identified priorities. The draft preliminary framework was provided as a handout (with the below flow of categories) to allow for the Council’s review, discussion, and changes. Many of the items identified by Council were specific Activities and Initiatives, which compose the most detailed level of the framework. These details were grouped by proposed Major Focus Areas that reflected the common themes, and Key Strategies were suggested to summarize potential policy direction by the Council that would tie to their identified Activities and Initiatives. Major Focus Areas Key Strategies Activities and Initiatives 23 City of South San Francisco / City Council Retreat Report 6 The facilitator shared the proposed Focus Areas for the group’s discussion and asked the Council to voice their reactions and any changes they would make. The Mayor said he thought the buckets were a great framing of the City’s “why.” Council members identified childcare, resilient infrastructure, and space/capacity for unplanned emergencies as additional areas they would like to see incorporated. The group then reviewed the proposed Strategies, and the Council discussed each focus area. The Council’s discussions to revise the Strategies are captured in Table 1 below, and the updated Strategies are reflected in Table 2 in the subsequent section. Table 1: Council Discussion of Initial Focus Areas and Strategies Major Focus Areas and Key Strategies Discussion Notes Housing and Supportive Services • Advance affordable housing development • Encourage housing for the Missing Middle • Implement Anti- Displacement Policies • Add creative financing to the Housing area • Some actions have more detail to them or might even reflect non-City actions o Foxridge Parcels refers to workforce housing, which would involve partnering with the community • Desire to attract development and generate revenue • Want to encourage a balanced housing supply, including renters and owners, and the workforce • The City should be a conduit for information, tools, and resources • Right to Legal Counsel (activity) is broader than Housing alone • A strategy or activity should be “Partnership with providers to support people who are unhoused” o Partnerships with regional bodies, community organizations Quality of Life • Catalyze a thriving downtown • Support local workers and business owners • Deliver services and amenities that address community needs • Promote community safety and preparedness • Hesitance to limit focus to downtown or any one area within the City, especially when there are other struggling retail areas o Should the strategy refer to downtown, retail generally, maybe small businesses? o Want to allocate resources equally, but also like the efficiency of testing a pilot program, then applying learnings elsewhere o Downtown has many business owners, while other areas (i.e., Brentwood, Sunshine) might have a single property owner who is a landlord to multiple businesses o Group decided to leave the strategy for downtown but add a strategy for a “thriving retail environment” • Cleanliness in the City is a factor both for businesses and Quality of Life broadly • Many resident communications to Council about people who are unhoused, which ties to Housing • Cold weather can add to calls for service to fires at encampments • Ensure Quality of Life includes mental health and explore making the integrated Mental Health Clinician a permanent employee • Resident complaints to the Council about RVs o Support residents who live in RVs o Address community concerns about long-term RV parking/presence Modern and Sustainable Organization • Ensure financial sustainability • Conduct long- • Focus on creating revenue, realize opportunities, and be innovative and creative • Look at initiatives Council had been hesitant about before • Potentially check appetite for a ballot measure for new revenue, but some concern against regressive measures • Revise “Maximize City resources” to “Optimize City resources” 24 City of South San Francisco / City Council Retreat Report 7 Priority-Setting The discussion of Major Focus Areas and Key Strategies informed a revised framework for the Council to vote on. Each Council member received six star stickers with different colors from each other, and they could assign one per Strategy, identifying their top priorities for the next year. The voting activity is shown at right. Council members and the facilitator all emphasized that strategies not receiving stickers remain important for the City. Major Focus Areas and Key Strategies Discussion Notes range planning • Maximize City resources • Communicate effectively with residents Welcoming and Connected Community • Increase access to childcare • Foster an Age- Friendly Community • Enact policies that support public health • Empower underserved communities • Good example of a positive event was the Lunar New Year Night Market held by the City the evening before the retreat, which was a great opportunity to highlight small businesses • City’s calendar of events reflects its diverse community • Additional events reflect the changing community and community requests • Missing aspect of City events is community partner(s) to help organize and hold the events • Peer cities sometimes have commissions that plan events, though serving on a commission is a volunteer service itself • Hope to establish Senior’s Commission to uplift and hear more from that community • Want others inspired by South San Francisco to say, “we should do that for our city” • Some community initiatives were raised by Communications staff during department sharing Infrastructure and the Environment • Champion environmental protection • Make sustainable options easier • Improve traffic flow • Attention needed for ‘invisible infrastructure’ • Add a priority for the aging infrastructure underground • Regional utilities impact this topic but also impact Housing and Quality of Life • A peer jurisdiction found a way around limits to support sustainability by regulating building efficiency for electrification 25 City of South San Francisco / City Council Retreat Report 8 Table 2: Council Votes on the Revised Strategies Major Focus Areas Key Strategies Sticker Colors Votes Count Housing and Supportive Services Advance affordable housing development Pursue creative financing strategies Gold Green Silver Orange Addiego, Coleman, Nagales, Nicolas 4 Encourage balanced housing supply (including rent & own, workforce) Gold Green Blue Addiego, Coleman, Flores 3 Be a conduit for public information and access to tools Implement Anti-Displacement policies Green Coleman 1 Quality of Life Catalyze a thriving downtown Blue Flores 1 Support a sustainable retail environment Gold Green Silver Addiego, Nagales, Coleman 3 Deliver services and amenities that address community needs Promote community safety and preparedness Silver Orange Nagales, Nicolas 2 Implement a cohesive strategy for a clean South San Francisco Blue Flores 1 Modern and Sustainable Organization Ensure financial sustainability (including revenue generation) Gold Green Blue Silver Addiego, Coleman, Flores, Nagales 4 Conduct long-range planning Optimize City resources Gold Orange Addiego, Nicolas 2 Communicate effectively with residents Orange Nicolas 1 Welcoming and Connected Community Increase access to childcare Silver Nagales 1 Foster an Age-Friendly Community Blue Flores 1 Enact policies that support public health Empower underserved communities Engage community volunteers (events, Commissions, partners) Gold Green Blue Orange Addiego, Coleman, Flores, Nicolas 4 Infrastructure and the Environment Champion environmental protections Make sustainable options easier 26 City of South San Francisco / City Council Retreat Report 9 Major Focus Areas Key Strategies Sticker Colors Votes Count Improve traffic flow Silver Nagales 1 Plan for aging infrastructure (underground) Orange Nicolas 1 Invest in Resilient and Sustainable solutions Strategies across all five Focus Areas received votes from Council members. Five strategies received a majority of Council votes, meaning three or more votes, including: • Pursue creative financing strategies for housing (4) • Encourage balanced housing supply, including rent & own, workforce (3) • Support a sustainable retail environment (3) • Ensure financial sustainability, pursue creative revenue generation (4) • Engage community volunteers for events through commissions and partners (4) Council Input on the Events Calendar During retreat preparations, the City identified a few additional items for discussion outside the priority- setting workshop program. One item, the Events Calendar, was discussed during a working lunch. The following summarizes the discussion: • The City Manager, Sharon Ranals, discussed the practice of organizing one signature event per year of the mayor’s choosing. One signature event was budgeted/planned for, but the City Manager had heard energy around more events and/or continuing past signature events. • The Council discussed a desire to continue events like the Women’s Conference, though perhaps bi- annually, and to continue the expanded Pride Event, but they acknowledged limits to staff bandwidth and budget. • It was suggested that a follow-up action might be identifying ways to partner for or hand off events. • Some of the Council and/or staff noted that they could also highlight events outside of South San Francisco, from the County or other neighboring Cities. Staying on Track with Priorities Achieving desired results on the council’s top priorities requires focus and discipline. The facilitator shared best practices for maintaining priorities and criteria for when Council might consider adding additional priorities during the year. The first steps are for staff to incorporate the identified priorities into the budget and department work plans and then to provide regular progress reports. The Council can support successful implementation by minimizing new requests that would take staff away from the identified priorities or by determining what priorities might drop off or be delayed if something new is added. 27 City of South San Francisco / City Council Retreat Report 10 If the Council encounters new projects during the year, the best practice criteria for evaluating them include: • Emergency (natural disaster, pandemic, civil unrest) • New outside funding opportunity that is time-sensitive • New multi-agency opportunity that cannot be delayed • Community safety issue that must be addressed in the near term • Changes in laws or mandates Excitement for the Year Ahead Reflecting on the priority discussion, Council members shared what excites them most about the upcoming year. Their thoughts included: • Strategic budget development - Enhance financial sustainability - Support economic development • Creative financing and revenue generation • Having a clear roadmap • Implementing the mooring ordinance • Optimistic about the opportunities ahead Working Together Council members and staff were asked to think about what they need from each other over the next year to support the pursuit of the identified priorities. Responses included: • What does staff need from the Council? - Conscious of a balance of priorities falling on Economic and Community Development or other departments - Confidence/trust in the staff-Council partnership - Conscious of staff roles and Council roles - Mutual respect - Strategic priorities and direction • What do Council members need from each other? - Clear communication - Clear direction in meetings - Incorporating shared norms, like those used for the retreat Closing The facilitator reviewed the next steps, including the preparation of this report, and noted that the Council priorities will inform areas of emphasis for the FY2025-26 budget and that major work plan elements will be developed by staff to track progress on the priorities. The City Manager thanked the Council for their direction coming from the priorities and informed them that the staff would be developing the work plans as discussed. The City Manager and Mayor both thanked the group for their attendance and participation, and the Mayor closed the retreat. 28 City of South San Francisco / City Council Retreat Report 11 APPENDIX A: City Staff Attendees 29 City of South San Francisco / City Council Retreat Report 12 Name Role Department Eddie Flores Mayor, District 5 Council Mark Addiego Vice-Mayor, District 1 Council Buenaflor (Flor) Nicolas Councilmember, District 3 Council James Coleman Councilmember, District 2 Council Mark Nagales Councilmember, District 4 Council Sharon Ranals City Manager City Manager's Office Rich Lee Assistant City Manager City Manager's Office Christina Fernandez Deputy City Manager/Chief Sustainability Officer City Manager's Office Angenette Lau Communications Manager City Manager's Office Devin Stenhouse Diversity, Equity, and Inclusion Officer City Manager's Office Marie Patea Executive Assistant to the City Manager City Manager's Office Sky Woodruff City Attorney City Attorney Nell Selander Director of Economic and Community Development Economic and Community Development Karen Chang Director of Finance Finance Jason Wong Deputy Finance Director Finance Matt Samson Fire Chief Fire Leah Lockhart Human Resources Director Human Resources Tony Barrera Information Technology Director Information Technology Valerie Sommer Library Director Library Rosa Govea Acosta City Clerk Office of the City Clerk Angela Duldulao Deputy Director of Parks and Recreation Parks and Recreation Greg Mediati Director of Parks and Recreation Parks and Recreation Scott Campbell Chief of Police Police Eunejune Kim Director of Public Works/City Engineer Public Works Matt Ruble Principal Engineer Public Works Frank Risso City Treasurer Treasury 30 CALL TO ORDER Mayor Flores called the meeting to order at 6:30 p.m. ROLL CALL Councilmember Coleman, present Councilmember Nagales, present Councilmember Nicolas, present Vice Mayor Addiego, present Mayor Flores, present PLEDGE OF ALLEGIANCE Xavier and Sebastian Camacho led the pledge. AGENDA REVIEW No changes. LEVINE ACT DISCLOSURES (SB 1181) Following an inquiry, there were no conflicts of interest stated by the members of the City Council. ANNOUNCEMENTS FROM STAFF • Police Chief Campbell presented the City’s Annual Crime Statistics. • Public Works Director Kim shared the City was awarded a $1.2 million grant from Peninsula Clean Energy to improve the Downtown lighting. • Parks and Recreation Director Mediati invited the community to attend the Linden Park Open House on Saturday, March 1, 2025, and Youth Baseball Celebration on Saturday, March 8, 2025. • Management Analyst Donner invited the community to attend the What’s Happening East of 101 Biotech Speaker Series on Tuesday, March 11, 2025. MINUTES REGULAR MEETING CITY COUNCIL CITY OF SOUTH SAN FRANCISCO WEDNESDAY, FEBRUARY 26, 2025 6:30 p.m. In-person Library Parks and Recreation Building Council Chambers 901 Civic Campus Way, South San Francisco, CA 31 REGULAR CITY COUNCIL MEETING FEBRUARY 26, 2025 MINUTES PAGE 2 PRESENTATIONS 1. Proclamation recognizing Women in Construction Week. (Eddie Flores, Mayor) Councilmember Coleman presented the proclamation to the members of the Nation Association of Women in Construction. President Julie Salinas, Treasurer Viktoria Swerbensky, and Director Lourdes Haro accepted the proclamation and thanked the Council for their recognition. 2. Proclamation recognizing Héctor Camacho for his service as a Trustee on the San Mateo County Office of Education Board. (Eddie Flores, Mayor) Mayor Flores recognized Hector Camacho for his contributions to the San Mateo County Office of Education Board and the City of South San Francisco. Hector Camacho thanked staff, the City, and the Council for their investments and impact on the community. 3. Certificate recognizing Christine Ramirez for representing the City of South San Francisco as a runner in the Senshu International City Marathon in Japan. (Eddie Flores, Mayor) Mayor Flores presented Christine Ramirez with a certificate of recognition honoring her accomplishments. Christine Ramirez thanked the Council and Sister Cities for allowing her to represent them and shared an overview of her experiences. COUNCIL COMMENTS/REQUESTS Councilmember Nicolas recognized the library staff and former Mayor Karyl Matsumoto for the success of the Kintsukuroi film screening. She requested to adjourn the meeting in memory of John DeNardi, Melanie Mendoza Lara, and Rosalina Oliva Panggat. Councilmember Coleman requested staff to explore solutions to concerns raised by downtown businesses regarding short-term parking for delivery services. Councilmember Nagales invited the community to attend his Town Hall on March 15, 2025, to discuss topics to include public safety and the new childcare in Westborough. He also said he enjoyed attending the Finding A Path Art Show and announced he was invited to moderate for the Housing Leadership Council on May 30, 2025. Mayor Flores apprised the community of the events attended to include the Kintsukuroi film screening, Property and Business Improvement District committee meetings, Basque Cultural Center anniversary event, and Joy Fest Celebration. He also requested the City Manager to explore concerns from residents surrounding the relocation of senior yoga and Zumba classes from the Teglia Center to the Westborough Center. City Manager Ranals noted that the relocation was temporary due to tax services being offered at the Teglia Center. PUBLIC COMMENTS – NON-AGENDA AND CONSENT CALENDAR ITEMS The following individuals addressed the City Council: • Sam Chetcuti • Fionnola Villamejor 32 REGULAR CITY COUNCIL MEETING FEBRUARY 26, 2025 MINUTES PAGE 3 CONSENT CALENDAR The Assistant City Clerk duly read the Consent Calendar, after which the Council voted. 4. Motion to approve the Minutes of February 11, 2025, and February 12, 2025. (Rosa Govea Acosta, City Clerk) 5. Report regarding Resolution No. 24-2025 authorizing the acceptance of donations from various community partners totaling $21,250 for Fiscal Year 2024-25, as well as in-kind donations of supplies and volunteer support for Parks and Recreation Department programs and events. (Angela Duldulao, Deputy Director, Parks and Recreation Department) 6. Report regarding Resolution No. 25-2025 authorizing the acceptance of $11,029.28 in grant funding from the Department of Justice Bullet Proof Vest Partnership for soft armor vests for the South San Francisco Police Department and approving Budget Amendment Number 25.038. (Scott Campbell, Chief of Police) 7. Report regarding Resolution No. 26-2025 approving the Second Amendment to the Cooperation Agreement of the San Mateo County HOME Consortium under the Cranston- Gonzales National Affordable Housing Act. (Alvina Condon, Management Analyst II) 8. Report regarding adoption of Resolution No. 27-2025 accepting $100,000 in SMCTA 2024 ACR/TDM Cycle 2 (Grant) Program Funding; accepting $10,000 in C/CAG Local Match Funding; accepting $30,000 in C/CAG Construction Management (CM) Funding; approving associated Budget Amendment Number 25.037; approving contract amendments with C/CAG, Kimley-Horn and Associates, Inc. and Zoon Engineering, Inc., for the South San Francisco, Smart Corridor Expansion Project. (Angel Torres, Senior Civil Engineer) Motion – Vice Mayor Addiego/Second – Councilmember Nicolas: To approve Consent Calendar items 4-8 by roll call vote: AYES: Councilmembers Coleman, Nagales, Nicolas, Vice Mayor Addiego, and Mayor Flores; NAYS: None; ABSENT: None; ABSTAIN: None. PUBLIC HEARING Public hearing opened: 7:21 p.m. 9. Report regarding holding a Public Hearing for a Community Needs Assessment for the HUD Community Development Block Grant (CDBG) Program Year 2025-2026 Annual Action Plan. (Alvina Condon, Management Analyst II) Public hearing closed: 8:02 p.m. Management Analyst Condon presented the report. Councilmember Nagales requested clarification between the number of services provided and referred. Management Analyst Condon and Economic and Community Development Director Selander provided clarification surrounding the service, potential delays, and charge for services. 33 REGULAR CITY COUNCIL MEETING FEBRUARY 26, 2025 MINUTES PAGE 4 The following individuals provided public comments in support of continued funding: • Carols Reyes, Program Manager at Renaissance Entrepreneurship Center • Harrison Young, Owner of Harrison’s Pizza • Melissa Lukin, Executive Director of Rebuilding Together Peninsula • Miguel Chavez, Program Director at LifeMoves • Alyssa Canfield, Program Manager with StarVista • Laura Fanucchi, Director of Programs at HIP Housing • Lynn Schuette, Director of Quality and Strategic Initiatives at CORA • Mylene Deano, Register Dental Assistant at Magic Tooth Bus • Juan Molina, Shelter Manager at Safe Harbor Shelter • Cecilia Chu, Executive Director of Friends for Youth The following individual provided a public comment: • Michael Harris The following individuals submitted a public comment via the eComment portal: • David Carducci ADMINISTRATIVE BUSINESS 10. Report regarding Resolution No. 28-2025 approving an agreement with Speridian Technologies LLC. for the implementation of the Clariti community development permitting software and Resolution No. 29-2025 approving an agreement with Clariti Cloud Inc. for a five-year subscription and support contract, totaling $1,808,017 (including a 15% contingency), authorizing the City Manager to execute the agreements and approving Budget Amendment Number 25-045 (Tony Barrera, Director of Information Technology) Information Technology Director Barrera presented the report. The Council engaged in questions and discussions with responses provided by Director Barrera. Motion – Councilmember Nicolas/Second – Councilmember Nagales: To approve Resolution No. 28-2025 approving an agreement with Speridian Technologies LLC. for the implementation of the Clariti community development permitting software and Resolution No. 29-2025 approving an agreement with Clariti Cloud Inc. for a five-year subscription and support contract, totaling $1,808,017 (including a 15% contingency), authorizing the City Manager to execute the agreements and approving Budget Amendment Number 25-045, by roll call vote: AYES: Councilmembers Coleman, Nagales, Nicolas, Vice Mayor Addiego, and Mayor Flores; NAYS: None; ABSENT: None; ABSTAIN: None. 11. Report regarding Resolution No. 29-2025 authorizing the submittal of an application for the San Mateo County Shuttle program funding in a total amount of $1,939,050, and committing a 25% total matching contribution of $646,350 from South San Francisco Local Measure A funds, in support of the South City Shuttle program. (Marissa Garren, Public Works Management Analyst II) Public Works Deputy Director Bockhaus presented the report. The Council engaged in questions and discussion surrounding the exploration of alternative methods for routes, time, and efficiency. 34 REGULAR CITY COUNCIL MEETING FEBRUARY 26, 2025 MINUTES PAGE 5 Motion – Councilmember Nagales/Second – Councilmember Coleman: To approve Resolution No. 29-2025 authorizing the submittal of an application for the San Mateo County Shuttle program funding in a total amount of $1,939,050, and committing a 25% total matching contribution of $646,350 from South San Francisco Local Measure A funds, in support of the South City Shuttle program, by roll call vote: AYES: Councilmembers Coleman, Nicolas, and Nagales; Mayor Flores, NAYS: Vice Mayor Addiego; ABSENT: None; ABSTAIN: None. ITEMS FROM COUNCIL – COMMITTEE REPORTS AND ANNOUNCEMENTS No reports or announcements. CLOSED SESSION Entered into Closed Session: 8:23 p.m. 12. Closed Session: Conference with Real Property Negotiators (Pursuant to Government Code Section 54956.8) Property: 366 Grand Avenue (APN 012-312-310) Agency negotiators: Nell Selander, ECD Director, and Ernesto Lucero, ECD Manager Negotiating party: Stacey S. Dobos Trust Under negotiation: Price and Terms Resumed from Closed Session: 8:53 p.m. Report out of Closed Session by Mayor Flores: Direction given. No reportable actions. ADJOURNMENT Being no further business, Mayor Flores adjourned the City Council meeting at 9:54 p.m. *** Adjourned in Memory of John DeNardi, Melanie Mendoza Lara, and Rosalina Oliva Panggat *** Submitted by: Approved by: Jazmine Miranda Eddie Flores Assistant City Clerk Mayor Approved by the City Council: / / 35 REGULAR CITY COUNCIL MEETING FEBRUARY 26, 2025 MINUTES PAGE 6 NOTE: The Meeting Minutes represent actions taken during the meeting of the City Council. These action minutes are the City’s record of actions that took place at the meeting. Complete Council member's discussions of meeting items can be viewed in archived video/audio recordings on the City’s website at https://www.ssf.net/Government/Video-Streaming-City-and-Council- Meetings/City-Council Pursuant to Government Code section 54957.5 all written public comments submitted to the City Council become public record and will be made available to the public. Public comments submitted via the eComment portal can be viewed in the City Clerk’s repository at https://ci-ssf- ca.granicusideas.com/meetings?scope=past 36 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-128 Agenda Date:3/12/2025 Version:1 Item #:6. Report regarding a resolution authorizing the acceptance of $127,000 in grant funding from the County of San Mateo for the Big Lift Little Steps Preschool at the Gene Mullin Community Learning Center and amending the Parks and Recreation Department’s Fiscal Year 2024-25 Operating Budget pursuant to Budget Amendment Number 25.044. (Angela Duldulao, Deputy Director of Parks and Recreation) RECOMMENDATION It is recommended that the City Council adopt a resolution authorizing the acceptance of $127,000 in grant funding from the County of San Mateo for the Big Lift Little Steps Preschool at the Gene Mullin Community Learning Center and amending the Parks and Recreation Department’s Fiscal Year 2024-25 Operating Budget pursuant to Budget Amendment Number 25.044. BACKGROUND/DISCUSSION The Big Lift is a collective impact collaborative launched in 2012 by three agencies,the County of San Mateo,the San Mateo County Office of Education,and Silicon Valley Community Foundation.The goal of the initiative is to help San Mateo County students achieve reading proficiency by the end of third grade.The City of South San Francisco has been the recipient of Big Lift grant funds since Fiscal Year 2014-15,using these funds to open and operate the Little Steps Preschool at the Gene Mullin Community Learning Center in April 2016.Little Steps Preschool is administered by the Parks and Recreation Department (the Department)and has a licensed capacity of 20 students.Families eligible for this subsidized program must qualify as low-income households pursuant to California Department of Housing and Urban Development (HUD)income ceilings and are assessed tuition on a sliding scale,not to exceed the City’s adopted preschool fee based on family size and household income.The program operates Monday through Friday,7:30 a.m.to 6:00 p.m. While Big Lift grant funds have fluctuated over the years,the grant amount remained steady at $220,000 per year from Fiscal Years 2019-2020 through 2023-2024.This amount was sufficient to cover roughly 80%of program costs largely attributed to staffing,and the City’s General Fund subsidized the remaining program expenses.In October 2023,staff met with Big Lift grant administrators who indicated that the City’s grant could be cut by more than half in Fiscal Year 2024- 25.This significant change in funding was attributed to a reallocation of their funds to transitional kindergarten through third grade programs in addition to preschools. Anticipating a funding reduction,in January 2024,staff applied for San Mateo County’s Measure K funding under the priority area of “Children,Families,and Seniors”in order to fill this looming funding gap.With over $250 million in requests for the first year and only $35 million in available funding,the application pool for Measure K funds was very competitive and staff were unsuccessful in obtaining a grant award for Little Steps Preschool. Since then,Big Lift grant administrators confirmed the City would receive a smaller grant award of $127,000 for Fiscal Year 2024-25, essentially enough funding to subsidize half of the site’s children. As a result of reduced funding,staff created plans to maintain at least 10 of the 20 spaces at Little Steps Preschool available at no cost or on a sliding scale for income-eligible families,consistent with past Big Lift practices.The other 10 spaces would be made available at the adopted preschool fee, consistent with other City operated preschool sites. Fortunately,no children have been displaced or impacted as vacancies are created by natural attrition that occurs through the summer and fall months as children graduate into kindergarten and transitional-kindergarten.In short,no families who City of South San Francisco Printed on 3/7/2025Page 1 of 2 powered by Legistar™37 File #:25-128 Agenda Date:3/12/2025 Version:1 Item #:6. received Big Lift subsidy were or will be faced with unexpected fees. Staff also continues to work with families to connect them with resources for other subsidies with partner agencies,and referral agencies like the San Mateo County Child Care Coordinating Council. FISCAL IMPACT Operations of Little Steps Preschool have already commenced into Fiscal Year 2024-25.City Council’s authorization to receive $127,000 for Fiscal Year 2024-25 will allow for continued operation of the Little Steps Preschool through the end of the current fiscal year.This amount covers the cost of one teacher,allowing the City to offer up to 10 of the 20 preschool spaces on a sliding scale cost model,with the program being available at no cost for most income-eligible families.The other 10 spaces are available to full fee-paying families.Receipt of these funds does not commit the City to ongoing funding. To date,staff has not yet received information about the potential funding outlook for Fiscal Year 2025-26.If grant funding becomes unfeasible or is eliminated and alternative grant funding cannot be secured,staff will return to the City Council with a recommendation to consider alternatives for operating Little Steps Preschool.One such option would be to convert the Little Steps Preschool to a fee-based program,similar to Siebecker and Westborough Preschools,which is already subsidized by the City’s General Fund to remain very affordable. RELATIONSHIP TO STRATEGIC PLAN Acceptance of these grant funds will contribute to the City’s Strategic Plan under the major focus area of creating a “Welcoming and Connected Community” by increasing access to childcare and supporting underserved communities. CONCLUSION It is recommended that the City Council authorize the acceptance of $127,000 in grant funding for Fiscal Year 2024-25, which will allow the Parks and Recreation Department to continue to operate the Little Steps Preschool at the Community Learning Center.The Parks and Recreation Department will continue to work collaboratively with our Big Lift partners and will continue to seek out grant funds to enhance the quality of City and community preschools. City of South San Francisco Printed on 3/7/2025Page 2 of 2 powered by Legistar™38 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-129 Agenda Date:3/12/2025 Version:1 Item #:6a. Resolution authorizing the acceptance of $127,000 in grant funding from the County of San Mateo for the Big Lift Little Steps Preschool at the Gene Mullin Community Learning Center and amending the Parks and Recreation Department’s Fiscal Year 2024-25 Operating Budget pursuant to Budget Amendment Number 25.044. WHEREAS,the Big Lift initiative,a collaborative launched by the County of San Mateo,the San Mateo County Office of Education,and Silicon Valley Community Foundation,aims to help San Mateo County students achieve reading proficiency by the end of third grade; and WHEREAS,the Department of Parks and Recreation has been the recipient of Big Lift grant funds since Fiscal Year 2014 -2015,using these funds to open the Little Steps Preschool at the Gene Mullin Community Learning Center in April 2016; and WHEREAS,these grant funds will be utilized to fund the Little Steps Preschool and support reading readiness,parent engagement,improved attendance,and enhanced preschool teacher trainings,as allowed by the terms of the grant agreement; and WHEREAS, acceptance of these funds does not commit the City to ongoing funding after the close of the grant cycle; and WHEREAS,receipt of these grant funds enables the Parks and Recreation Department to offer 10 subsidized preschool spaces at the Little Steps Preschool to low-income households pursuant to California Department of Housing and Urban Development (HUD)income ceilings,and eligible families would be assessed tuition on a sliding scale,not to exceed the City’s adopted preschool fee of $714 per month, based on family size and household income; and WHEREAS,through the Big Lift,the City will work collaboratively with other Big Lift partners to enhance the quality of City and community preschools. NOW,THEREFORE,BE IT RESOLVED,by the City Council of the City of South San Francisco that the City Council hereby authorizes the acceptance of $127,000 in grant funding from the County of San Mateo for the Big Lift Little Steps Preschool at the Gene Mullin Community Learning Center and amends the Parks and Recreation Department’s Fiscal Year 2024-25 Operating Budget pursuant to Budget Amendment Number 25.044. BE IT FURTHER RESOLVED,that the City Council hereby authorizes the City Manager to execute the documents necessary to accept the grant funding and take any other actions necessary to carry out the intent of this resolution on behalf of the City Council, subject to approval as to form by the City Attorney. ***** City of South San Francisco Printed on 3/13/2025Page 1 of 1 powered by Legistar™39 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:24-1125 Agenda Date:3/12/2025 Version:1 Item #:7. Report regarding an ordinance establishing a local preference for deed restricted affordable housing units that gives preference to applicants who live,have lived,or work within the City of South San Francisco.(Pierce Abrahamson, Management Analyst II) RECOMMENDATION Staff recommends that the City Council consider introducing a Local Preference Ordinance that gives applicants for some deed restricted affordable housing units who live,have lived,or work within the City of South San Francisco a preference point during the applicant selection process.The intention of this policy is to prevent the displacement of existing residents and workers in the City while providing opportunities for prior displaced residents to return. BACKGROUND Local preference policies require landlords with deed restricted affordable housing units,such as those required in inclusionary housing or City-funded fully affordable developments,to prioritize local applicants during the applicant selection process.Local preference policies are just that -a preference.They do not establish a requirement to apply for affordable housing lotteries.Even with a local preference policy in place,any income- eligible person may still apply for deed restricted units.Local preferences are common in peer jurisdictions such as Redwood City and San Mateo County and are intended to reduce displacement and commute time for low- and moderate-income residents and workers within the community. As part of the City’s Procedures and Guidelines for Inclusionary Housing Units (“Guidelines”),the City already applies a local preference that requires property owners to prioritize City residents or workers in the affordable housing lottery selection process for deed restricted affordable units.The City has been able to implement this policy through regulatory agreements of deed restricted units with individual property owners at individual for- sale below market rate housing units,market rate developments with inclusionary affordable housing units,and in fully affordable housing developments. In the current Guidelines,qualifying applicants who either live or perform at least 20 hours of work weekly within the City receive a preference point during the lottery selection process.Documentation of meeting the live or work preference is established either through proof of residency or proof of workplace as a part of the housing application process.The Guidelines do not currently provide a preference point for prior residents of the City as proposed in the draft ordinance. While the City’s local preference policy is already implemented through regulatory agreements,staff is bringing forward a recommendation for a codified ordinance that would both expand the preference point provision to prior residents and better align the City’s policy with the language of State and Federal law.Staff City of South San Francisco Printed on 3/7/2025Page 1 of 7 powered by Legistar™40 File #:24-1125 Agenda Date:3/12/2025 Version:1 Item #:7. provision to prior residents and better align the City’s policy with the language of State and Federal law.Staff consider the legal language alignment the primary motivator for bringing forward this proposed ordinance. Whereas State Law (Government Code Section 7061)provides an allowance for local preference policies for tax-credit funded housing projects,it specifically mentions this allowance in the context of local adoption, either by ordinance or resolution.By adopting a local preference policy,the City’s policy would match the explicit language of State Law and likewise strengthen the City’s position to apply for State grant programs. In addition to the prior resident eligibility provision,the proposed Local Preference Ordinance also expands the work preference eligibility to include applicants who have accepted a job offer within the City.Both these additions are informed by the City’s ongoing anti-displacement roadmap,peer jurisdiction research,and fair housing law considerations. Local Preference and Fair Housing Law When imposing a preference that prioritizes a portion of the population,compliance issues with fair housing law may arise.The City retained the law firm Goldfarb Lipman,which specializes in fair housing law and has worked on local preference ordinances for neighboring jurisdictions,such as Redwood City,to assist staff in drafting an ordinance that minimizes issues of compliance with fair housing law.The Goldfarb Lipman attorneys produced a memorandum for the City that outlines the potential risks and their mitigating factors when adopting a local preference policy.The memorandum highlights that fair housing law violations typically arise if the policy creates an illegal disparate impact on protected classes (race,religion,sex,gender,etc.)or will predictably cause a discriminatory effect towards a protected class.However,there are affirmative defenses available to the City,as disparate impact claims must go through the following three legal tests to successfully challenge the policy: 1.The complainant must show that the challenged policy caused or predictably will cause a discriminatory effect. 2.The responding governmental entity must demonstrate that the policy is justifiable regardless of the discriminatory effect and there is no feasible alternative policy that is equally effective and less discriminatory. a.The practice is necessary to achieve one or more substantial,legitimate,nondiscriminatory purposes and the practice effectively carries out the purpose. b.The purpose is sufficiently compelling to override the discriminatory effect. 3.There is no feasible alternative practice that would equally or better accomplish the purpose with a less discriminatory effect. Based on the Goldfarb Lipman memorandum and consultation with the City Attorney’s Office,staff do not anticipate fair housing law violations given the policy justifiably serves a legitimate and substantial non- discriminatory purpose that overrides any discriminatory effect.Specifically,the local preference policy is founded on a legitimate need to prevent resident displacement and expand housing opportunities to commuters. The City’s Housing Element documents both the increased displacement pressures and the imbalanced jobs to household ratio.Furthermore,as described by the memo,“any effective anti-displacement policy will disproportionately benefit the target population,which may disproportionately affect a protected class;thus, City of South San Francisco Printed on 3/7/2025Page 2 of 7 powered by Legistar™41 File #:24-1125 Agenda Date:3/12/2025 Version:1 Item #:7. disproportionately benefit the target population,which may disproportionately affect a protected class;thus, there is not a feasible alternative that would be equally effective and less discriminatory.”Consequently,staff have reason to believe the City has affirmative defenses based on the second and third factors listed above reasons. To provide an affirmative defense for the first factor,the City contracted with Economic and Planning Systems (EPS)to conduct a disparate impact analysis of the proposed policy to determine if the policy will predictably cause a discriminatory effect.In their analysis,EPS utilized the fair housing law best practice advised by Goldfarb Lipman:the “four-fifths”rule.The four-fifths rule,in summary,assumes that if members of a protected class are selected at a rate of four-fifths (eighty percent)or less,evidence of disparate impact could be reasonably assumed.In applying this rule to race and ethnicity groups in the City,EPS found no race or ethnicity to be selected at a rate of eighty percent or less as a result of a local live or work preference.The results are indicated in the “weighted average selection rate” rows in figure 1 below: Figure 1: EPS Disparate Impact Analysis Table As shown in figure 1 above,no race or ethnicity would be selected at a rate below eighty percent with a hypothetical live or work preference.While some statistical variations exist between groups,none rise to the level of disparate impact under the four-fifths standard.Additionally,whereas the analysis assumes a preference policy eligible only to existing residents and workers in the City,the proposed ordinance includes preference eligibility for prior residents and applicants with an accepted job offer within the City.As noted in the EPS Memorandum included as Attachment 1,expanding preference eligibility to prior residents is likely to further equalize selection rates, based on patterns observed in peer cities. General Plan and Housing Element Policies The City adopted a comprehensive update to the General Plan (GP)in 2022 and received State certification for its 2023-2031 Housing Element.As stated in the General Plan,the City’s housing priorities include new housing production while preserving affordable housing and protecting vulnerable residents from housing City of South San Francisco Printed on 3/7/2025Page 3 of 7 powered by Legistar™42 File #:24-1125 Agenda Date:3/12/2025 Version:1 Item #:7. housing production while preserving affordable housing and protecting vulnerable residents from housing instability and displacement.The proposed Local Preference Ordinance furthers the goals outlined in the Housing Element and General Plan.Specifically,the proposed ordinance contributes to the following policy goals identified in implementing the Fair Housing Plan in the City’s certified Housing Element: ·Policy EQ-3:Support residents who are at risk of being displaced.Reduce the rate of evictions and support low-income residents who are at risk of being displaced. (GP) ·Policy EQ-8:Protect existing residents from displacement in areas of lower or moderate opportunity and concentrated poverty and preserve housing choices and affordability. (FHAP) ·Program PRSV-5.2 Assist Tenants at risk of displacement:The City shall assist tenants displaced by the conversion of at-risk units by providing information about tenants’rights,providing referrals to relevant social service providers,endeavoring to establish a funding source to assist nonprofit organizations that support tenants, and facilitating other support as appropriate. While the intention of the Local Preference Ordinance is not to prevent new low-income residents from relocating to the City,this sort of policy can be viewed as an anti-displacement effort that also assists prior displaced residents who wish to return to South San Francisco.The goal is to lessen the financial,emotional, and familial impact of displacement from one’s community or the necessity of extended commutes for existing low-income workers.In this way,the proposed policy is an anti-displacement measure,aimed at addressing the causes and impacts of residential displacement and an imbalanced job to housing ratio. Relationship to Anti-Displacement Roadmap While the City continues to pursue its Commercial and Residential Anti-Displacement Roadmap,City Council has directed staff to bring forward more urgent policies and not to wait for the conclusion of the multi-year Roadmap preparation if the policies are warranted in the immediate term.Given that a version of a local preference policy implemented through regulatory agreements pre-dates the Roadmap,the City is well positioned to push forward a codified ordinance ahead of the roadmap conclusion to ensure the City is achieving the maximum regulatory and financial incentives of such a policy.Likewise,the proposed ordinance would address community feedback regarding the hardship experienced by displaced residents by providing an immediate benefit to prior residents who wish to return to the City. According to research conducted by HR&A as a part of the Anti-Displacement Roadmap,there has been a significant decrease in Hispanic/Latino and Black households earning below $150,000 in the City between 2012 and 2022.Specifically,there has been a 36%decrease in Hispanic/Latino populations across the City and a 38%decrease in the Old Town area during this time period.The shifting demographics can be attributed to a lack of affordable housing for the existing workforce,especially for those making under $75,000 annually. Often the only affordable housing available to these households is a limited supply of older,naturally occurring affordable units in the downtown area that are prone to health and safety hazards.During the December 2, 2024,Anti-Displacement Community Advisory Committee (CAC)meeting,the most cited reasons for why people move out of the City were the high cost of housing,unhealthy conditions of naturally occurring City of South San Francisco Printed on 3/7/2025Page 4 of 7 powered by Legistar™43 File #:24-1125 Agenda Date:3/12/2025 Version:1 Item #:7. people move out of the City were the high cost of housing,unhealthy conditions of naturally occurring affordable housing, and the lack of resources to assist residents in obtaining better options. While the Anti-Displacement Roadmap is an effort to develop a web of policy interventions to address and redress the multifaceted causes of displacement,many of these interventions will take time to develop in partnership with community organizations.However,given that displacement has and is being experienced by members of the community in the past and present tense,staff recommends the City Council to consider the introduction of the proposed ordinance that would expand eligibility of the City’s local preference policy to previous residents.This will provide prior displaced residents priority consideration for safe and affordable deed restricted units in the City. Benchmarking Research While the City already has pre-existing policy guidelines and regulatory agreements that have effectively implemented a version of this policy in practice,staff conducted additional research on existing policies in the region.In developing policies to address displacement and extended commute times of low-income residents and workers in South San Francisco,staff consulted with jurisdictions and experts in the field who have implemented similar measures.These discussions were instrumental in comparing the City’s existing policies with best practices in the region. Redwood City A noteworthy example of a local preference policy is Redwood City’s,which arose as a part of their anti- displacement roadmap that reached similar findings to our own:a jobs/housing imbalance,displacement pressures for lower income households,and extended commute times that increase greenhouse gas emissions. While originally intended to only provide a preference to current residents,the City modified the policy proposal to include a work preference to reduce disparate impacts in accordance with the DOJ’s disparate impact formula.Their policy is structured similarly to the one being proposed:The live and work preferences are equally weighted,have no minimum residency requirement or expiration of residency for the live preference,and the work preference requires a 20-hour weekly average work schedule within Redwood City to qualify.The strengths of this policy are that it reduces paperwork burden for applicants and staff alike,likely increasing policy uptake and reducing the overall time it takes for an applicant to get housed.Because their policy was only adopted in 2021,meaningful data on policy performance is limited given most projects with the preference have yet to be constructed.However,their staff have expressed optimism regarding the policy’s capacity to open a resource for prior displaced residents to return to the City without requiring extensive documentation that may be burdensome for low income/resource households to supply.The documentation required for prior presidents to apply for the preference are the same as that for current residents. City of Berkeley Staff also reviewed the City of Berkeley’s Affordable Housing Preference Policy.This policy prioritizes households who are or have experienced displacement as a response to community input provided during the Adeline Corridor Specific Plan and BART Redevelopment planning processes.The City of Berkeley’s policy is unique for two reasons.Firstly,rather than using a points-based preference system that prioritizes preference eligible waiting list for all units,their policy sets aside 25%of affordable units for non-preference eligible City of South San Francisco Printed on 3/7/2025Page 5 of 7 powered by Legistar™44 File #:24-1125 Agenda Date:3/12/2025 Version:1 Item #:7. eligible waiting list for all units,their policy sets aside 25%of affordable units for non-preference eligible residents.Thus,the preference system is only in effect for 75%of affordable units.Secondly,their policy establishes seven targeted preference categories tailored to population subsets.Preference points are awarded namely to applicants that have either historically experienced or have been identified as uniquely vulnerable to displacement. The seven preference categories are: ·Displaced due to BART construction ·Displaced due to eviction ·Displaced due to foreclosure ·Applicant ties to redlined neighborhoods ·Applicant generational ties to redlined neighborhoods ·Homeless or at-risk of homelessness ·Families with children The strength of this policy is that the preferences are uniquely tied to groups identified as vulnerable during the City’s community engagement and planning processes.However,the documentation required as a part of the housing lottery application is more extensive than that of Redwood City’s.For example,if an applicant would like to apply for the BART or foreclosure displacement preferences,they are required to have a certificate verifying their eligibility for such a displacement.This certificate must be obtained from a separate application process managed by the City,of which the City currently advises applicants to obtain prior to filling out an affordable housing lottery application.While performance data of the City of Berkeley’s policy is not yet attainable due to the policy taking effect in 2024,City staff advises against this approach as a more complicated and time-consuming application process may discourage or delay application completion from the most at-risk and low resourced households. DISCUSSION At this time,staff recommends adopting the proposed Local Preference Ordinance amending the City’s Health and Welfare Ordinance,Chapter 8 of the South San Francisco Municipal Code.The proposed ordinance is intended to codify the City’s local preference policy that is currently enforced through regulatory agreements while expanding preference point eligibility to prior residents and workers with an accepted job offer with a city-based employer. In summary, the ordinance was drafted to: 1.Be compatible with existing Guidelines and regulatory agreements with property owners 2.Apply to any affordable units provided as a part of: •Inclusionary housing requirements •Density bonus •Developments acquired, constructed, or rehabilitated with City financing 3.Provide a preference point for applicants who live,recently lived,or work (or soon to work)in the City while still allowing other income eligible applicants to apply. City of South San Francisco Printed on 3/7/2025Page 6 of 7 powered by Legistar™45 File #:24-1125 Agenda Date:3/12/2025 Version:1 Item #:7. The ordinance further defines eligible applicants for preference points as follows: 1.At least one member of the applicant household performs at least 20 hours of work weekly for an employer within the City; or 2.At least one member of the applicant household currently resides or resided in the City; or 3.At least one member of the applicant household has accepted a job offer of employment within the City. The necessary documentation to establish live or work preference eligibility will be specified in the City’s Procedures and Guidelines for Inclusionary Housing Units,which serves as a public-facing resource to applicants and developers alike for deed restricted affordable housing in the City. Staff ultimately recommends codifying and expanding upon an existing preference policy into a Local Preference Ordinance that would better align the City’s policy to community needs and with the language of State and Federal law and grant programs. FISCAL IMPACT The proposed Local Preference Ordinance should have a minimal fiscal impact.The ordinance does not affect the financing of deed restricted affordable units.The ordinance simply overlays a preference policy onto a pre- established affordable housing lottery system for when eligible applicants apply for these units.Furthermore, much of the administrative groundwork such as establishing guidelines and implementing a preference point system on Doorway has already been made due to the pre-existing administrative policy. CONCLUSION Staff recommends that the City Council introduce the proposed Local Preference Ordinance for deed restricted affordable units that gives preference to applicants who live,have lived,or work within the City of South San Francisco.The intention of this policy is to prevent the displacement of existing residents and workers in the City while providing identical provisions to assist prior displaced residents who wish to return. Attachments: 1.EPS Demographic Analysis Memorandum City of South San Francisco Printed on 3/7/2025Page 7 of 7 powered by Legistar™46 DRAFT MEMORANDUM To: Piece Abrahamson, City of South San Francisco From: Darin Smith and Kaavya Chhatrapati Subject: Disparate Impact Analysis for South San Francisco Affordable Housing Local Preference Policy; EPS #241044 Date: February 18, 2025 The City of South San Francisco is considering a policy that would prioritize households that already live in the city or in which one or more workers are employed within the city for the allocation of affordable housing units in the city. This memo summarizes an analysis conducted by Economic & Planning Systems, Inc. (EPS) to evaluate the proposed preference policy, focusing on its compliance with fair housing laws. The issue is whether prioritizing South San Francisco residents and workers is likely to result in certain racial or ethnic groups getting proportionately less access to the affordable housing. If the policy is deemed likely to result in such groups having materially lower likelihood of accessing affordable units than if the policy were not in place, it may impose a “disparate impact” on those groups, and should be avoided or mitigated if possible. As of February 10, 2025, the United States Department of Justice Civil Rights Division website1 offers the following explanation of a disparate impact: “where the members of one race or other protected class are selected at four-fifths (or less) the rate of another (80% or less), the EEOC, DOJ, and the Department of Labor have adopted this formula for use in identifying evidence of disparate impact. Some courts have adopted this four-fifths cutoff as a rule of thumb when determining whether the amount of differential impact is sufficient.” Like several other analysts and consultants who have been engaged by other Bay Area cities to explore live-work preference policies, EPS uses the “4/5 Test” to assess whether such a policy in South San Francisco may have a disparate impact on identifiable racial and ethnic groups. 1 Civil Rights Division | Section VII- Proving Discrimination- Disparate Impact | United States Department of Justice 47 Draft Disparate Impact Analysis for South San Francisco Affordable Housing Local Preference Policy Page 2 The review concludes that the proposed affordable housing local preference policy for South San Francisco is not projected to result in a systemic disparate impact on a particular racial or ethnic group. However, applying the local preference policy to only a portion of affordable units would reduce the likelihood of such disparate impacts. Summary of Key Findings • At least six Bay Area cities have local preference policies for affordable housing. Across all cities reviewed, affordable housing preference policies aim to balance local prioritization for residents and workers with equity and fair housing compliance. Common strategies include prioritizing households that have undergone or are threatened by displacement, in addition to prioritizing current or recent residency and employment within the city while using tools like lottery systems and marketing plans to ensure transparency and accessibility. • South San Francisco’s residents and worker demographics are sufficiently similar to those of San Mateo County overall and the three-county Peninsula region that a local preference policy should not create a disparate impact. This analysis indicates that no racial or ethnic group’s selection for affordable housing should fall below 80 percent of what they may expect in the absence of the local preference policy. A policy prioritizing local residents only might result in advantages or disadvantages for certain groups, but the inclusion of workers in the prioritization tempers those differences. • The threat or perception of a disparate impact can be reduced by tailoring the policy to broaden the cohort of households likely to access the affordable units. To further mitigate potential concerns about equity, the City could allocate only a certain percentage of affordable units (e.g., 50 percent) under the local live/work preference, leaving the remainder open to all applicants. Alternatively or in addition, expanding eligibility to include individuals with historical ties to South San Francisco, such as those who lived or worked in the city within the last five years, could broaden access while maintaining a focus on local connections. Balancing Housing Preferences with Fairness and Compliance The City of South San Francisco is facing a decision on how to allocate affordable housing units in a way that balances fairness, equity, and compliance with fair housing laws. The core question is whether to prioritize individuals who live or work in the city, recognizing the potential benefits of supporting local residents and workers while avoiding any unintended disparate impacts on protected groups. This memo outlines EPS’s analysis, methodology, and recommendations to guide the City in crafting a legally compliant and equitable policy. 48 Economic & Planning Systems, Inc. Page 3 Insights from Neighboring Cities’ Housing Policies Affordable housing preference policies from several Bay Area cities were reviewed to analyze how local prioritization is balanced with equity requirements. The findings highlight various approaches taken by these cities to address these objectives. Redwood City Redwood City’s preference policy was adopted in 2021 and focuses on income-qualified households that have been displaced by city activities or who currently live, have lived, work, or have been offered work within the city. The policy does not require a minimum duration of residency or employment. These preferences apply to all affordable units under the city’s Affordable Housing Program, including inclusionary housing, standalone developments, rental, and for-sale units. Developers and property managers are responsible for implementing the policy through marketing plans and managing separate waitlists for preference and non-preference applicants. A disparate impact analysis, conducted by Seifel Consulting, evaluated the policy’s effect on racial demographics using the "4/5 Test" to ensure compliance with fair housing laws. San Francisco San Francisco’s policy, adopted in 2015, prioritizes income-qualified households displaced by conditions such as redevelopment, eviction, fires, or rising rents, as well as those living or working in the city. The preferences are applied to all affordable housing units, with distinct priorities for different groups. Top priority goes to those with a "Certificate of Preference," primarily for households displaced by redevelopment. Additional priorities include displaced tenants, residents of the same neighborhood as the project, and anyone living or working in the city. Veterans receive higher priority within each category. Applications are submitted via the city’s DAHLIA portal, which automatically ranks applicants through a lottery system. Compliance is overseen by the Mayor’s Office of Housing and Community Development (MOHCD), and fair housing compliance is integrated into the allocation procedures. Berkeley Adopted in 2023, Berkeley’s policy emphasizes historical injustices and displacement. Preferences include households displaced by BART construction in the 1960s and 1970s, foreclosure since 2005, no-fault or non-payment evictions within the past seven years, and those living in formerly redlined neighborhoods or their descendants. Homeless families and families with children are also prioritized. The policy applies to units created under the city’s Below Market Rate (BMR) and Housing Trust Fund (HTF) programs. Seventy-five percent of lottery units are allocated for applicants with preferences, while the remaining 25 percent are open to all. The Alameda County Housing Portal handles applications, and applicants are ranked based on preference points. A disparate impact analysis was conducted by Street Level Advisors to ensure fair housing compliance. 49 Draft Disparate Impact Analysis for South San Francisco Affordable Housing Local Preference Policy Page 4 Santa Clara Since adoption of their policy in 2021, Santa Clara prioritizes income-qualified households that live and/or work in the city. The policy is applied to all affordable housing units under the city’s programs, including inclusionary and standalone developments. Preferences are ranked as follows: residents who live and work in the city for at least six months are prioritized first, followed by those who live in the city, those who work in the city, and finally, all other applicants. Applications are managed through the Project HomeKey portal, which incorporates preference policies and ranks applicants accordingly. A demographic analysis by KMA evaluated the differences between those eligible for preferences and the general population, ensuring fair housing compliance. Oakland Oakland’s preference policy, adopted in 2016, gives top priority to households displaced by city activities or no-fault evictions within the past eight years, as well as residents living in the same council district or within a one-mile radius of a project. Broader preferences are also given to residents and workers in Oakland. These policies apply to affordable housing projects with five or more units receiving city financial assistance. Developers and property managers are tasked with implementing the policy through compliance plans and waitlist management. A maximum of 30 percent of affordable units is reserved for residents of the same district or nearby neighborhoods. A fair housing analysis using the "4/5 Test" and Standard Deviation Analysis ensures that the policy does not result in discriminatory outcomes. San Jose San Jose’s policy, adopted in 2024, prioritizes income-qualified households in high- displacement census tracts or those living near affordable housing projects. The policy applies to city-funded affordable developments, state-funded affordable units, and developments negotiated through agreements. A maximum of 35 percent of affordable units are subject to preference policies, with 15 percent reserved for lower-income applicants residing in the same council district or neighborhood and 20 percent for those in high-displacement census tracts. Applications are managed through the city’s housing portal, Doorway, which determines preference eligibility and informs property managers of compliance. A disparate impact analysis, conducted by Charles MacNulty, evaluates potential discriminatory effects using statistical methodologies. 50 Economic & Planning Systems, Inc. Page 5 Summary of Other Cities’ Policies As noted above, several Bay Area communities have adopted preference policies for their affordable housing supply, with priority frequently given to households already living in the city (or an even smaller area thereof) or people who work in the city. However, several communities’ prioritization extends beyond those basic parameters, incorporating factors such as the households’ specific housing history, veteran status, etc. Several also deliberately apply the preference policy to only a portion of the housing units, leaving the remainder of units available to the general population of income-qualified households. Analysis of South San Francisco Household and Worker Demographics The analysis evaluates the potential impacts of an affordable housing local preference policy for South San Francisco. The objective is to determine the proportion of affordable housing units that various racial and ethnic groups would likely have been able to access, based on the size and income distribution of their group within the broader population of potential affordable housing applicants in the general geographic area from which most applicants are likely to be drawn. For this study, EPS has assumed two different “general geographic areas” – the whole of San Mateo County, and the combined area of San Mateo, San Francisco, and Santa Clara Counties, under the logic that the majority of applicants for affordable housing will already be in the applicable job market and community rather than, say, in another region, state, or country. Then, EPS estimates the proportion of affordable units likely to be accessed by these same groups if all of the units are subject to the local preference policy prioritizing people who live and work in South San Francisco. To the extent that the resident population or workforce of South San Francisco is materially different from those other general geographic areas, one might expect that the local preference policy may create advantages or disadvantages for certain groups. For example, if Group A represents 50 percent of all income-eligible households in the County, but only 10 percent of the income-eligible households in the City, it may be that Group A will have access to many fewer affordable units under the local preference policy than if the policy were not in place. The opposite may also be true for some groups, if they represent a larger proportion of the local income-eligible population. EPS has applied the same general methodology to both workers and residents, examining racial, ethnic, and income-qualifying breakdowns to ensure consistency between the two groups. Then, given that the results may differ between the analysis of households and the analysis of workers, EPS has applied a weighted average approach designed to balance preferences for residents and workers. 51 Draft Disparate Impact Analysis for South San Francisco Affordable Housing Local Preference Policy Page 6 Methodology and Findings for Local Households 1. Total Households by Race and Ethnicity (A): Using the most recently available Census data, the number and percentage of total households belonging to each racial group was determined for South San Francisco (SSF), San Mateo County, and the three-county Peninsula (San Francisco, San Mateo, and Santa Clara counties combined). This establishes the baseline racial composition of households in each subject area. For example, Table 1 demonstrates that White and Asian households are by far the two largest groups in all three areas, but that South San Francisco has a higher proportion of Asian households than the other two areas, and a lower proportion of White households. EPS took a similar approach regarding ethnicity – specifically Hispanic or Latino – which is counted separately from race by the Census. For example, people may identify as both Hispanic and White or both Hispanic and Black. The data indicate that SSF has a higher proportion of Hispanic or Latino households than the larger geographies. 2. Income-Qualified Households by Race and Ethnicity (B): Census data also informs the percentage of households within each racial and ethnic group that meet the income qualifications for affordable housing. The California Department of Housing and Community Development (HCD) indicates that the income limit for a low-income household in San Mateo County is roughly $150,000 for a “standard” household of four people.2 EPS has identified the number of households in each group that earn up to this amount as an estimate of how many households of each racial and ethnic group would qualify for affordable housing in SSF, the county, or the Peninsula. Among other findings, the data indicate that a much higher proportion of White households in SSF earn less than $150,000 than in the two larger areas and thus would qualify for affordable housing, while a much higher proportion of American Indian or Native Alaskan households in SSF are likely to be above this income threshold than in the larger areas. Overall, SSF households that are Black or African American, Hispanic or Latino, or identify as “another race” are most likely to earn less than $150,000. 2 HCD Income Limits currently indicate that a four-person household in San Mateo County earning up to $156,650 would be considered “low income” for purposes of qualifying for affordable housing. While HCD published different income standards based on the sizes of households, EPS uses this four-person household income standard because Census data is provided in general household income categories by race, such as “Asian households earning $125,000 to $149,999” or “Asian households earning $150,000 to $199,999” rather than a finer level such as “Two-person Asian households earning up to $125,350.” 52 Economic & Planning Systems, Inc. Page 7 3. Income-Qualified Households by Group as a Percentage of Total (C = A * B): To identify the share of all households that are both represented in the population and eligible for affordable housing, we calculated the product of the total household percentage by race and ethnicity (A) and the income-qualification rate (B). For example, for White households in SSF, the calculation is: 34.9% of all SSF households are White X 63.9% of White SSF households earn less than $150,000 = 22.3% of all SSF households are income-qualified White households These calculations indicate that there are more White income-qualified households in SSF than any other group, and the same is true of the County and Peninsula. 4. Total Proportion of Population That Is Income-Qualified (D): The sum of the results of Item C represents the overall proportion of all households that would qualify for affordable housing based on their incomes. As shown, EPS estimates that roughly 58 percent of households in SSF would qualify for affordable housing because they earn below $150,000 annually. By comparison, roughly 50 percent of all households in the two larger areas earn below $150,000, indicating that SSF has a higher proportion of households that would be designated as income- qualified for affordable housing. 5. Proportions of Income-Qualified Households by Race and Ethnicity (E = C / D): For a given supply of affordable housing units, EPS has estimated the proportion that would likely be provided to households from each racial or ethnic group based solely on their representation among income-qualified households in each area. For instance, White households in SSF are estimated to make up 38.7 percent of all income-qualified households, while Asian households represent 32.5 percent of income-qualified households. In the county more broadly, White households represent a higher proportion of income-qualified households while Asian households represent a lower proportion. The results vary by each racial group and by whether the SSF figures are being compared to the county or the larger three-county Peninsula region. The results suggest that White, American Indian or Native Alaskan, and Native Hawaiian or Pacific Islander households would likely be selected for fewer affordable units as a result of the local preference policy. Black or African American households may be selected for a higher proportion by comparison to county rates, but lower in comparison to the overall Peninsula. Asian and Hispanic or Latino households would appear to be the greatest beneficiaries of the local preference policy, largely because they represent higher proportions of SSF households generally than they represent in the larger geographies. 6. Impact of Preference Policy on Selection Rates by Race and Ethnicity (F = E(SSF) / E(County) or E(Peninsula)): Finally, to conduct the “4/5 Test,” we divided the expected selection rate for each group’s households under a preference policy focusing on SSF residents by their expected selection rate without such a policy, based on county or Peninsula data. 53 Draft Disparate Impact Analysis for South San Francisco Affordable Housing Local Preference Policy Page 8 This step determines whether any group is likely to have access to fewer than 80 percent of the affordable units that they would likely get in the absence of the local preference policy. Again, the results vary depending on whether the SSF-based selection rate is being compared to the selection rates for the county or the Peninsula. The results suggest that the local preference policy, if applied only on the basis of who currently lives in SSF (rather than works there) may fall short of the “4/5 Test” standard (80 percent) and thus represent a disparate impact for White, American Indian or Native Alaskan, and Native Hawaiian or Pacific Islander households when compared to the county more broadly. Using the Peninsula as the comparative standard, a disparate impact could be projected for Black or African American households as well as American Indian or Native Alaskan households, but White and Native Hawaiian or Pacific Islander households would not necessarily be subject to a disparate impact based on the “4/5 Test.” The selection rate analysis for households shows that some racial groups fall below the 4/5 threshold when evaluated independently, and might be subject to a disparate impact as a result of the policy if it is applied only to households by their place of residence. However, the proposed local preference policy would apply to workers in SSF as well as households, so the following section addresses these workers. 54 Draft Disparate Impact Analysis for South San Francisco Affordable Housing Local Preference Policy Page 9 Table 1: Household Selection Rate Analysis Source: U.S. Census Bureau. American Community Survey (ACS) 2022; Economic & Planning Systems. White Black or African American American Indian or Alaskan Native Asian Native Hawaiian or Pacific Islander Two or more races Another Race Total Qualifying Households Not Hispanic or Latino Hispanic or Latino Total Qualifying Households (A) % of Total Households by Race or Ethnicity South San Francisco 7,696 515 183 9,128 93 1,910 2,511 22,036 16,603 5,433 22,036 San Mateo County 136,293 5,623 1,734 77,007 1,894 20,884 19,902 263,337 215,246 48,091 263,337 Peninsula 594,845 38,941 7,141 440,224 4,993 101,038 88,335 1,275,517 1,062,151 213,366 1,275,517 South San Francisco 34.9% 2.3% 0.8% 41.4% 0.4% 8.7% 11.4% 100.0% 75.3% 24.7% 100.0% San Mateo County 51.8% 2.1% 0.7% 29.2% 0.7% 7.9% 7.6% 100.0% 81.7% 18.3% 100.0% Peninsula 46.6% 3.1% 0.6% 34.5% 0.4% 7.9% 6.9% 100.0% 83.3% 16.7% 100.0% (B) % of Income Qualified HH by Race or Ethnicity South San Francisco 4,918 387 66 4,130 62 1,221 1,940 12,724 8,715 4,009 12,724 San Mateo County 65,162 3,657 1,281 33,707 1,140 11,630 14,641 131,218 98,197 33,021 131,218 Peninsula 283,279 28,702 5,342 198,312 3,242 59,004 65,987 643,868 495,993 147,875 643,868 South San Francisco 63.9% 75.1% 36.1% 45.2% 66.7% 63.9% 77.3%52.5% 73.8% San Mateo County 47.8% 65.0% 73.9% 43.8% 60.2% 55.7% 73.6%45.6% 68.7% Peninsula 47.6% 73.7% 74.8% 45.0% 64.9% 58.4% 74.7%46.7% 69.3% (C) % of Total Households that are Income Qualified by Race or Ethnicity (A × B)(D)(D) South San Francisco 22.3% 1.8% 0.3% 18.7% 0.3% 5.5% 8.8% 57.7% 39.5% 18.2% 57.7% San Mateo County 24.7% 1.4% 0.5% 12.8% 0.4% 4.4% 5.6% 49.8% 37.3% 12.5% 49.8% Peninsula 22.2% 2.3% 0.4% 15.5% 0.3% 4.6% 5.2% 50.5% 38.9% 11.6% 50.5% (E) % of Total Qualifying Households by Race or Ethnicity (C / D) South San Francisco 38.7% 3.0% 0.5% 32.5% 0.5% 9.6% 15.2% 100.0% 68.5% 31.5%100.0% San Mateo County 49.7% 2.8% 1.0% 25.7% 0.9% 8.9% 11.2% 100.0% 74.8% 25.2%100.0% Peninsula 44.0% 4.5% 0.8% 30.8% 0.5% 9.2% 10.2% 100.0% 77.0% 23.0%100.0% (F) = E(SSF)/ E(SMC or Peninsula): Selection Rate with Preference Policy vs. Without San Mateo County 77.8% 109.1% 53.1% 126.4% 56.1% 108.3% 136.6%91.5% 125.2% Peninsula 87.9% 68.2% 62.5% 105.4% 96.8% 104.7% 148.8%88.9% 137.2% ETHNICITY HOUSEHOLDS RACE 55 Economic & Planning Systems, Inc. Page 10 Methodology and Findings for Local Workers 1. Total Workers by Race or Ethnicity (A): Using the most recently available Longitudinal Employer-Household Dynamics (LEHD)3 data from the United States Census, the number and percentage of total workers in each racial and ethnic group were determined for South San Francisco (SSF), San Mateo County, and the three-county Peninsula (San Francisco, San Mateo, and Santa Clara counties combined). This establishes the baseline racial and ethnic composition of workers in each area. For example, Table 2 shows that White and Asian workers are by far the two largest groups in all three areas. However, South San Francisco has a slightly higher proportion of Asian workers than the other two areas and a slightly lower proportion of White workers. Hispanic or Latino workers represent roughly 20 percent of all workers in all three geographies. 2. Lower-Wage Workers by Race or Ethnicity (B): Unfortunately, standard Census publications do not provide extensive data regarding the incomes of individuals based on their place of work, only by their place of residence. The Census provides detailed income by race or ethnicity by place of work only down to the county level, not the city level, so comparisons among the three geographies cannot be as aligned with affordable housing income standards as they were for households. The best available data for worker income by place of work comes from LEHD, which categorizes worker earnings into broad income bands. The highest of these broad income bands is for individuals earning over $40,000 per year, so the closest available approximation to the low-income threshold is workers earning under $40,000 per year (or $3,333 per month, the metric that LEHD uses). While this does not directly align with HCD's household-based income standards, it serves as a useful proxy for identifying lower-wage workers who may qualify for affordable housing in SSF, the county, or the broader Peninsula. The data indicate that the proportion of SSF workers earning under $40,000 in several categories – White, Two or More Races, and Latino – is lower than in the broader areas. Conversely, a higher proportion of Black or African American and Native Hawaiian or Pacific Islander workers earn less than $40,000 in SSF than in the broader areas. For other groups, the results are mixed relative to the broader geographies. For each racial or ethnic group, the results are relatively similar across geographies, with no more than single-digit percentage point differences in the overall proportions of workers earning these lower wages. 3 For consistency, EPS used data for “all primary jobs” across all racial and ethnic groups and across all geographies. Unlike the standard population census used for the households analysis, LEHD does not provide data for “Another Race,” so this category is omitted from the analysis of workers. 56 Economic & Planning Systems, Inc. Page 11 3. Lower-Wage Workers by Group as a Percentage of Total (C = A * B): To identify the share of all workers who are both represented in the population and likely to be eligible for affordable housing, we calculated the product of the total worker percentage by race or ethnicity (A) and the income-qualification rate (B). For example, for Asian workers in SSF, the calculation is: 36.9% of all SSF workers are Asian × 16.9% of Asian SSF workers earn less than $40,000 = 6.2% of all SSF workers are lower-wage Asian workers These calculations indicate that there are more lower-wage White workers in SSF than any other group, and the same holds true for the County and Peninsula. 4. Total Proportion of Workers That Earn Lower Wages (D): The sum of the results for Item C indicates that approximately 18.9 percent of workers in SSF earn below $40,000 annually. By comparison, slightly higher proportions of all workers in San Mateo County and in the Peninsula earn below $40,000, indicating that SSF has a similar but slightly lower proportion of lower- wage workers who may be designated as income-qualified for affordable housing. 5. Proportions of Lower-Wage Workers by Race or Ethnicity (E = C / D): For a given supply of affordable housing units, EPS has estimated the proportion likely to be allocated to workers from each racial or ethnic group based solely on their representation among lower-wage workers in each area. For instance, White workers in SSF are estimated to make up 52.8 percent of all lower-wage workers, while Asian workers represent 33.0 percent. In the county and Peninsula more broadly, White workers account for a higher proportion of lower-wage workers, while Asian workers make up a lower proportion. The results vary by group and by the geography to which the SSF figures are compared. These findings suggest that White and Hispanic or Latino workers would likely be selected for slightly fewer affordable units as a result of the local preference policy. Asian, Black or African American, and Native Hawaiian or Pacific Islander workers would likely be selected for more affordable units as a result of the policy, primarily because they constitute a higher proportion of SSF workers than they do in the larger geographies. 6. Impact of Preference Policy on Selection Rates by Race or Ethnicity (F = E(SSF) / E(County) or E(Peninsula)): To conduct the “4/5 Test,” we calculated the ratio of each group's expected selection rate under a local preference policy favoring SSF workers to their expected selection rate without the policy, using county and Peninsula data as benchmarks. This analysis helps determine whether any group would receive access to fewer than 80 percent of the affordable units they would otherwise qualify for in the absence of the preference policy. The findings indicate that all groups pass the 4/5 test across both geographies. This suggests that a preference policy that only prioritized local workers would be unlikely to create a disparate impact on any protected group. 57 Economic & Planning Systems, Inc. Page 12 Table 2: Worker Selection Rate Analysis Source: U.S. Census Bureau OnTheMap Application and LEHD Origin-Destination Employment Statistics; Economic & Planning Systems White Black or African American American Indian or Alaskan Native Asian Native Hawaiian or Pacific Islander Two or more races Total Qualifying Workers Not Hispanic or Latino Hispanic or Latino Total Qualifying Workers (A) % Total Workers by Race or Ethnicity South San Francisco 28,897 2,789 412 20,265 585 1,952 54,900 44,107 10,793 54,900 San Mateo County 220,503 18,631 3,038 131,617 3,540 13,850 391,179 312,823 78,356 391,179 Peninsula 1,169,397 109,360 18,247 731,366 12,601 74,831 2,115,802 1,697,560 418,242 2,115,802 South San Francisco 52.6% 5.1% 0.8% 36.9% 1.1% 3.6% 100.0% 80.3% 19.7% 100.0% San Mateo County 56.4% 4.8% 0.8% 33.6% 0.9% 3.5% 100.0% 80.0% 20.0% 100.0% Peninsula 55.3% 5.2% 0.9% 34.6% 0.6% 3.5% 100.0% 80.2% 19.8% 100.0% (B) % Workers Making Under $40,000 by Race or Ethnicity South San Francisco 5,490 802 123 3,430 185 365 10,395 7,506 2,889 10,395 San Mateo County 49,429 5,122 925 21,735 941 3,177 81,329 58,043 23,286 81,329 Peninsula 251,334 30,529 5,404 124,402 2,996 17,107 431,772 308,279 123,493 431,772 South San Francisco 19.0% 28.8% 29.9% 16.9% 31.6% 18.7%17.0% 26.8% San Mateo County 22.4% 27.5% 30.4% 16.5% 26.6% 22.9%18.6% 29.7% Peninsula 21.5% 27.9% 29.6% 17.0% 23.8% 22.9%18.2% 29.5% (C) = (A X B) % of Total Workers that make under $40,000 by Race or Ethnicity (D)(D) South San Francisco 10.0% 1.5% 0.2% 6.2% 0.3% 0.7% 18.9% 13.7% 5.3% 18.9% San Mateo County 12.6% 1.3% 0.2% 5.6% 0.2% 0.8% 20.8% 14.8% 6.0% 20.8% Peninsula 11.9% 1.4% 0.3% 5.9% 0.1% 0.8% 20.4% 14.6% 5.8% 20.4% (E) % of Total Workers making below $40,000 by Race or Ethnicity (C / D) South San Francisco 52.8% 7.7% 1.2% 33.0% 1.8% 3.5% 100.0% 72.2% 27.8% 100.0% San Mateo County 60.8% 6.3% 1.1% 26.7% 1.2% 3.9% 100.0% 71.4% 28.6% 100.0% Peninsula 58.2% 7.1% 1.3% 28.8% 0.7% 4.0% 100.0% 71.4% 28.6% 100.0% (F) = E(SSF)/ E(SMC or Peninsula): Selection Rate with Preference Policy vs. Without San Mateo County 86.9% 122.5% 104.0% 123.5% 153.8% 89.9%101.2% 97.1% Peninsula 90.7% 109.1% 94.5% 114.5% 256.5% 88.6%101.1% 97.2% WORKERS ETHNICITYRACE 58 Draft Disparate Impact Analysis for South San Francisco Affordable Housing Local Preference Policy Page 13 Worker and Household Combined The local preference policy being considered by the City of South San Francisco would prioritize both local residents and local workers. South San Francisco is an employment- rich community, with LEHD data indicating that the city has more than twice as many workers commuting into the city as commuting out of the city. Moreover, only about seven percent of people who work in the city also live in the city. As a result, the local preference policy would prioritize many more individuals through the “workers” part of the policy than through the “households” component. To account for this difference, EPS has constructed a weighted average calculation for the likely selection rate for each group. This approach accounts not only for the fact that there are many more jobs than households in the city, but also that the ratios of workers to households varies significantly by race. As shown on Table 3, there are roughly 2.5 local jobs per local household overall, but there were more than five Black or African American workers for every Black or African American household in SSF, but only 2.0 local Hispanic or Latino workers for every local Hispanic or Latino household. As such, the incorporation of the “workers” component of the preference policy is likely to benefit Black or African American home seekers significantly, relative to a policy that only prioritizes local households. The weighted average selection rates all pass the “4/5 Test,” as no racial or ethnic group is likely to be selected for fewer than 80 percent of the affordable units they might have expected in the absence of the local preference policy. By integrating both household and worker selection rates, the policy ensures that no protected group falls below the threshold, mitigating disparities observed when evaluating households alone. 59 Draft Disparate Impact Analysis for South San Francisco Affordable Housing Local Preference Policy Page 14 Table 3: Weighted Average Selection Rate Analysis Source: U.S. Census Bureau. American Community Survey (ACS) 2022; U.S. Census Bureau OnTheMap Application and LEHD Origin-Destination Employment Statistics; Economic & Planning Systems . White Black or African American American Indian or Alaskan Native Asian Native Hawaiian or Pacific Islander Two or more races / Other Race Total Not Hispanic or Latino Hispanic or Latino Total SSF Workers by Group 28,897 2,789 412 20,265 585 1,952 54,900 44,107 10,793 54,900 SSF Households by Group 7,696 515 183 9,128 93 4,421 22,036 16,603 5,433 22,036 Ratio of Workers to Households by Group 3.8 5.4 2.3 2.2 6.3 0.4 2.5 2.7 2.0 2.5 SSF vs. San Mateo County Selection Rate of Workers 86.9% 122.5% 104.0% 123.5% 153.8% 89.9%101.2% 97.1% Selection Rate of Households 77.8%109.1%53.1%126.4%56.1%108.3%91.5%125.2% Weighted Average Selection Rate 85.0% 120.4% 88.4% 124.4% 140.4% 102.6%98.5% 106.5% SSF vs. Peninsula Selection Rate of Workers 90.7% 109.1% 94.5% 114.5% 256.5% 88.6%101.1% 97.2% Selection Rate of Households 87.9%68.2%62.5%105.4%96.8%104.7%88.9%137.2% Weighted Average Selection Rate 90.1% 102.7% 84.7% 111.7% 234.6% 99.8%97.8% 110.6% WEIGHTED AVERAGE OF WORKERS AND RESIDENTS ETHNICITYRACE 60 Economic & Planning Systems, Inc. Page 15 Conclusions and Recommendations Based on this analysis, EPS concludes that the City of South San Francisco is well- positioned to implement a preference policy that prioritizes local residents and workers without creating disparate impacts on specific racial or ethnic groups. The inclusion of local workers in the prioritization is particularly important to achieving this result. However, it is clear from the analysis that certain groups will likely receive more than their “fair share” of affordable units, while others may receive less, despite not appearing to violate the “4/5 Test.” To further guard against the potential for disparate impacts on certain groups, the City may consider applying the local preference policy to only a portion of the affordable units. For example, creating a prioritization system that applies local preferences to half of the affordable units while offering the other half through a general lottery that does not include special priorities for local residents and workers may result in more equitable outcomes for the broader population not currently able to live or work in the city. Alternatively or in addition, expanding eligibility to include individuals with historical ties to South San Francisco, such as those who lived or worked in the city within the last five years, could broaden access while maintaining a focus on local connections. Our research also suggests that these approaches align with practices in several neighboring cities. 61 Local Preference Ordinance City Council March 12, 2025 62 Background •Local preference policies prioritize local applicants of deed- restricted affordable units •Preference, not a requirement; other income-eligible applicants are still eligible to apply •City already has a more limited policy implemented through regulatory agreements with property owners •Current policy provides a preference point to current residents and workers who work at least 20 hours weekly within the City 63 Why an Ordinance? •State Law alignment: local preference policies for tax-credit funded projects are allowable in the context of local adoption (GOV Code 7061) •Adoption = resolution or ordinance •Full evaluation of compliance with fair housing law •Incorporate policy adjustments informed by Anti- Displacement Roadmap 64 Staff Recommendation Staff recommends the City Council to consider the introduction of the proposed Local Preference Ordinance that would, in the context of deed restricted affordable units: Give a preference point to applicants who live, have lived, or work in the City during the housing lottery process. 65 Policy Goals •Prevent displacement of residents and workers in the City •Provide opportunities for prior displaced residents to return •Codify & expand an existing policy implemented through regulatory agreements to ensure alignment with State/Federal legal and grant requirements. 66 Fair Housing Law Considerations •Fair housing law must be considered when providing a preference •Fair housing law provides a three- step legal defense process •Must fail all three subsequent defenses to be successfully challenged •Disparate Impact Analysis found no meaningful discriminatory impacts No current/future discriminatory effect towards a protected class. Serves a legitimate need that overrides discriminatory effect No feasible alterative practice with less discriminatory effect Most defensible Least defensible 1 2 3 67 Disparate Impact Analysis 1.No selection rate below 80%  policy aligns with legal best practice 2.Prior households not analyzed = proposed policy will likely equalize rates (SSF vs. Peninsula)White Black or African American American Indian or Alaskan Native Asian Native Hawaiian / Pacific Islander Two or more / Other Hispanic or Latino Worker Selection Rate 90.7%109.1%94.5%114.5%256.5%88.6%97.2% Household Selection Rate 87.9%68.2%62.5%105.4%96.8%104.7%137.2% Weighted Average Selection Rate [current policy] 90.1%102.7%84.7%111.7%234.6%99.8%110.6% 68 Displacement & Prior Displaced •2012-2022: 36% decrease in Hispanic/Latino households in SSF making under $150,000 •Decrease especially acute for households making under $75,000 •Proposed policy provides residents, workers, and displaced residents greater opportunity to qualify for safe & affordable homes Housing was too Expensive My landlord refused repairs and I didn’t know where to find help Conditions were unhealthy and I couldn’t afford anything else Community Input from Anti-Displacement Roadmap 69 Policy Structure 70 Housing Element Alignment •Policy EQ -3: Support residents who are at- risk of being displaced •Policy EQ -8: Protect existing residents from displacement in areas of lower or moderate opportunity and concentrated poverty and preserve housing choices and affordability •PRSV-5.2 Assist tenants at risk of displacement 71 Research Conducted •Originally targeted as a live preference, expanded to work to eliminate disparate impacts / fair housing concerns •Point based waitlist system; preference eligible applicants offered units first •Equally weighted preferences, includes former residents Redwood City: Local Preference Policy (2021) •Establishes 7 targeted preferences tailored to vulnerable populations such as displaced due to BART construction or at-risk of homelessness •Allocation based waitlist system; 75% units reserved for preference policy applicants •Complicated application process; some preferences require applying separately for a certificate to establish preference eligibility City of Berkeley: Affordable Housing Preference Policy (2024) 72 Applicable Properties The proposed policy applies to deed-restricted affordable properties resulting from: •City inclusionary housing requirements •State Density Bonus units •Developments acquired, constructed, or rehabilitated with City financing • Including 100% affordable projects 73 Housing Lottery: How it Works Current residents Former residents Workers: 20+ hours weekly in SSF Workers: accepted job offer 1 preference point (max) = considered first All other applicants 0 points = considered once preference list is exhausted 74 Council Action Staff recommends the City Council to consider the introduction of the proposed Local Preference Ordinance that would, in the context of deed restricted affordable units: Give a preference point to applicants who live, have lived, or work within the City during the housing lottery process. 75 Questions? 76 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:24-1126 Agenda Date:3/12/2025 Version:1 Item #:7a. Ordinance amending the South San Francisco Municipal Code to add Chapter 8.100 (Local Preferences and Requirements) to Title 8 to define a preference policy requirement for housing units regulated by the City of South San Francisco in order to prioritize housing applicants who live and/or work in the City. WHEREAS the 2023-2031 City of South San Francisco Housing Element documents the increase in displacement pressures in the City, noting "[n]early the entire city is vulnerable to displacement" and noting that one of the sources of the pressure is that "the growth in jobs in South San Francisco has vastly outpaced the growth in the housing stock over recent decades;" WHEREAS pursuant to Government Code Section 8899.50, cities and counties are tasked with the mandate of affirmatively furthering fair housing, which includes addressing significant disparities in housing needs and in access to opportunity; WHEREAS pursuant to Government Code Section 7061, California has recognized residential preferences as a legitimate anti-displacement policy; WHEREAS according to the 2019 South San Francisco General Plan Update (Transportation Element), a person commuting into the City on average spends more than two hours traveling to and from work; WHEREAS reducing the jobs-housing imbalance by creating opportunities for people to live near where they work can reduce commute times and related traffic congestion; WHEREAS the City's local preference will provide income-eligible households who live or work within the City a priority when applying to rent or purchase available affordable residential units provided pursuant to the City's inclusionary housing program or density bonus program or provided as a condition of financial or other support by the City for the new construction, substantial rehabilitation, or acquisition of the residential development; and WHEREAS the City has conducted a fair housing analysis of the local preference policy and concluded that the local preference is necessary to achieve a substantial, legitimate governmental interest to protect existing residents from displacement, offer residents who have previously been displaced an opportunity to return, and prioritize expanding residential opportunities for households who have to commute to the City for work; WHEREAS, within 90 days of adoption of this ordinance, the City will create a webpage on its website containing this ordinance and supporting materials, in compliance with Government Code Section 7061.1; Now, therefore, the City Council of the City of South San Francisco does ordain as follows: Section 1. Findings. The City of South San Francisco City Council hereby finds as follows: A.General findings. a.The foregoing recitals are true and correct and made part of this Ordinance. City of South San Francisco Printed on 3/13/2025Page 1 of 4 powered by Legistar™77 File #:24-1126 Agenda Date:3/12/2025 Version:1 Item #:7a. b.Approval of this Ordinance is not a project for purposes of the California Environmental Quality Act pursuant to Public Resources Code Section 21065 because it is not an activity which may cause either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. c.The local preference is necessary to achieve a substantial, legitimate governmental interest to protect existing residents from displacement, offer residents who have previously been displaced an opportunity to return, and prioritize expanding residential opportunities for households who have to commute to the City for work and there is not a feasible, alternative local policy that would be equally effective in preventing displacement that has less potential of having a discriminatory impact under applicable fair housing laws, including the California Fair Housing and Employment Act. Section 2. Amendment of Title 8.100 of the South San Francisco Municipal Code to Add Chapter 20.385 (Local Preferences and Requirements). The City Council hereby adds Title 8, Chapter 8.100 (“Local Preferences and Requirements”) to the South San Francisco Municipal Code to read as follows. § 8.100.001. Purpose and Intent. The purpose and intent of this chapter is as follows: A.As established by the 2023-2031 Housing Element, increasing housing costs create displacement pressures impacting existing lower and moderate-income residents. The Housing Element documents the increase in displacement pressures, or the involuntary relocation and/or exclusion of residents from the City. As provided in the Housing Element, "[n]early the entire city is vulnerable to displacement" and noting that one of the sources of the pressure is that "the growth in jobs in South San Francisco has vastly outpaced the growth in the housing stock over recent decades." B.According to the 2022 5-year data from the American Communities Survey, for South San Francisco renter households earning less than or equal to $75,000, there was a gap of 1,730 affordable rental housing units and the income required to affordably purchase a median priced home in South San Francisco was $333,000; the median renter income was $94,000. C.Increasing housing costs also create barriers to housing for lower and moderate-income people who work in the City and want to live within the City. There is a job-housing imbalance in the City that has resulted in insufficient affordable housing, displacement pressures caused by competition for available housing, long commutes, and traffic congestion. According to the 2019 South San Francisco General Plan Update (Transportation Element), a person commuting into the City on average spends more than two hours traveling to and from work. City of South San Francisco Printed on 3/13/2025Page 2 of 4 powered by Legistar™78 File #:24-1126 Agenda Date:3/12/2025 Version:1 Item #:7a. D.Pursuant to Government Code Section 7061, California has recognized residential preferences as a legitimate anti-displacement policy. The local preference will mitigate the potential displacement impact of development in the City by providing existing City residents opportunity to afford housing within the City and so reducing displacement of existing residents. The local preference will also mitigate the negative impacts of the job-housing imbalance by providing the opportunity for people working within the City to live near their workplaces, mitigating the negative environmental and traffic impacts of long commutes. § 8.100.002. Applicability of Local Preference Requirement. A.For purposes of this Chapter, "affordable residential unit" is a dwelling unit that is subject to a deed restriction, regulatory agreement, or other agreement between the City and owner to satisfy the requirements of Chapter 20.380 (Inclusionary Housing Regulations), Chapter 20.390 (Bonus Residential Density), or the terms of City financing, City land disposition agreement, or other financial support from the City. B.The preferences described in Section 8.100.003 shall apply to the following residential unit(s), unless the preferences are demonstrated to violate fair housing laws: 1.Affordable residential units provided to meet the inclusionary housing requirements of Chapter 20.380 (Inclusionary Housing Regulations); 2.Affordable residential units provided to qualify a project for a density bonus pursuant to Chapter 20.390 (Bonus Residential Density); 3.Affordable residential units that receive financing, land, or other financial support from the City for new construction, substantial rehabilitation, or acquisition of the affordable unit(s). C.The Economic and Community Development Director may from time to time adopt guidelines with regards to procedures for qualifying applicants for the local preference, monitoring, relevant administrative provisions, and means of compliance with the requirements of this Chapter. § 8.100.003. Local Preference A.When selecting tenants or homebuyers for affordable residential unit(s) subject to the requirements of this Chapter, owners of the affordable residential unit(s) shall implement a preference policy prioritizing the selection of applicants who meet any of the following requirements: 1.At least one member of the applicant household performs at least 20 hours of work within each calendar week for an employer within the City; 2.At least one member of the applicant household currently resides within the City; 3.At least one member of the applicant household has previously resided in the City; 4.At least one member of the applicant household has received and accepted a bona fide offer of employment within the City. B.The preference policy shall be included as a term in the regulatory agreement or other agreement between the City and the owner of the affordable residential unit(s). Prior to offering the affordable residential unit for sale or for rent, the owner must provide a marketing plan which describes the project’s procedures for providing preferences as required and for determining City of South San Francisco Printed on 3/13/2025Page 3 of 4 powered by Legistar™79 File #:24-1126 Agenda Date:3/12/2025 Version:1 Item #:7a. that potential renters and homebuyers are entitled to the preferences required by this Chapter. C.A household shall demonstrate eligibility for the local preference by providing documentation as required in the guidelines adopted by the Economic and Community Development Director pursuant to Section 8.100.002(C). § 8.100.004. Term of Local Preference Requirement. During the term of affordability required under Chapter 20.380 (Inclusionary Housing Regulations), Chapter 20.390 (Bonus Residential Density), or regulatory period imposed as a condition of the financing, land disposition, or other financial support from the City, as applicable, the preference shall be implemented whenever an affordable residential unit subject to this Chapter is made available for rent or sale. § 8.100.005. Enforcement. A.The provisions of this chapter shall apply to all owners and their agents,successors and assigns of affordable residential units governed by this Chapter. B.The City may institute any appropriate legal actions or proceedings necessary to ensure compliance with this Chapter.In the event the City must institute legal action to enforce the provisions of this Chapter,the City shall be entitled to recover its administrative costs, including reasonable attorneys’ fees, in addition to any other remedy provided by the court. Section 3. Severability. If any section,subsection,sentence,clause,or phrase of this Ordinance or the application thereof to any person or circumstance is held invalid or unconstitutional by a decision of any court of competent jurisdiction,such decision shall not affect the validity of the remaining portions of this Ordinance,including the application of such section,subsection,sentence,clause,or phrase to other persons or circumstances,and the remaining portions of this Ordinance shall continue in full force and effect.To this end, provisions of this Ordinance are severable.The City Council of the City of South San Francisco hereby declares that it would have passed each section,subsection,subdivision,paragraph,sentence,clause,or phrase hereof irrespective of the fact that any one or more sections,subsections,subdivisions,paragraphs,sentences,clauses,or phrases be held unconstitutional,invalid,or unenforceable. Section 4. Publication and Effective Date. Pursuant to the provisions of Government Code Section 36933,a summary of this Ordinance shall be prepared by the City Attorney. At least five (5)days prior to the Council meeting at which this Ordinance is scheduled to be adopted,the City Clerk shall (1) publish the summary,and (2)post in the City Clerk's Office a certified copy of this Ordinance.Within fifteen (15)days after the adoption of this Ordinance,the City Clerk shall (1)publish the summary,and (2)post in the City Clerk's Office a certified copy of the full text of this Ordinance along with the names of those City Council members voting for and against this Ordinance or otherwise voting. This Ordinance shall become effective thirty (30) days from and after its adoption. City of South San Francisco Printed on 3/13/2025Page 4 of 4 powered by Legistar™80 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-248 Agenda Date:3/12/2025 Version:1 Item #:8. Closed Session: Conference with Real Property Negotiators (Pursuant to Government Code Section 54956.8) Property: 366 Grand Avenue (APN 012-312-310) Agency negotiators: Nell Selander, ECD Director, and Ernesto Lucero, ECD Manager Negotiating party: Stacey S. Dobos Trust Under negotiation: Price and Terms City of South San Francisco Printed on 3/7/2025Page 1 of 1 powered by Legistar™81 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-254 Agenda Date:3/12/2025 Version:1 Item #:9. Closed Session: Conference with Real Property Negotiators (Pursuant to Government Code Section 54956.8) Property: 201 Baden Avenue (APN 012-335-100 and APN 012-335-110) Agency negotiators: Nell Selander, ECD Director, Tony Rozzi, ECD Deputy Director, Pierce Abrahamson, Management Analyst II Negotiating party: Firehouse Live LLC and Firehouse Work, LLC Under negotiation: Price and Terms City of South San Francisco Printed on 3/7/2025Page 1 of 1 powered by Legistar™82 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-253 Agenda Date:3/12/2025 Version:1 Item #:10. Public Employee Performance Evaluation (Pursuant to Government Code Section 54957) Title: City Manager City of South San Francisco Printed on 3/7/2025Page 1 of 1 powered by Legistar™83 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-230 Agenda Date:3/12/2025 Version:1 Item #:11. Conference with Labor Negotiators (Pursuant to Government Code Section 54957.6) Agency designated representatives: Mayor Flores and Vice Mayor Addiego Unrepresented employee: City Manager City of South San Francisco Printed on 3/7/2025Page 1 of 1 powered by Legistar™84 NEIGHBORHOOD TOWN HALL MEETING CITY OF SOUTH SAN FRANCISCO District 2 Councilmember Mark Nagales invites you to Alice Bulos Community Center at Westborough Park 2380 Galway Drive South San Francisco, CA 94080 See reverse side for more information. Wednesday, March 19, 2025 6:30 p.m. - 8:00 p.m. City of South San Francisco Post Office Box 711 South San Francisco, CA 94083 (see reverse side) Scan QR code or visit: https://D2TownHall2025.eventbrite.com Childcare is available if RSVP is provided. Questions? Call (650) 829-6520. RSVP Today Join Us on March 19 Indy is the City’s new tool to quickly address inquiries, provide information on a wide range of city services, and allow you to submit service requests or communicate directly with city staff. Text “Hello” to (844) 771-INDY (4639) or visit www.ssf.net. Ask Indy Public Safety Update from Police Chief Scott Campbell Traffic Update from Public Works Deputy Director Dave Bockhaus Westborough Childcare Expansion Update from Capital Projects Director Jake Gilchrist Q&A with Councilmember Mark Nagales Refreshments will be provided ID Start time Name / Nombre Provide your comment(s) during: Presentar sus comentarios durante: Enter Agenda # below, if applicable. Agregue el número de agenda, si corresponde. 1 3/12/25 16:59:48 Sam Chetcuti Public Comments & Consent Calendar (Comentarios Públicos & Calendario de Consentimiento); 2 3/12/25 18:44:28 Olga Perez Public Comments & Consent Calendar (Comentarios Públicos & Calendario de Consentimiento); 3 3/12/25 18:45:31 Patricia Althaus Public Comments & Consent Calendar (Comentarios Públicos & Calendario de Consentimiento); 4 3/12/25 0:00:00 Fionnola Villamejor Item #7